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You have a tea stall in operation at Dhanmondi lake since 2018. Information of your business in 2019 are as follows: Selling price was BDT 10 per cup Average Sales volume was 35 cup per day Annual sales growth was 12% Price increases by 20% every year Monthly average selling and administration cost of the stall was: Police Commission = BDT 500/month Rent = BDT 1,000/month Utility = BDT 200/month Depreciation = BDT 60/month During a normal situation, the following growth has been observed: Raw material cost increases by 10% every year Labor cost increases by 8% every year MOH cost increases by 12% every year Selling and administration cost increases by 4% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2020 (PCORONA virus year ) and another Master Budget for the year 2021 (year of new normal). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation. Give reasons of any changes of you assumptions between 2020 and 2021 Master Budget i.e., during COVID 19 situation and during neo normal. Also keep in mind that due to COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above). %3|

You have a tea stall in operation at Dhanmondi lake since 2018. Information of your business in 2019 are as follows: Selling price was BDT 10 per cup Average Sales volume was 35 cup per day Annual sales growth was 12% Price increases by 20% every year Monthly average selling and administration cost of the stall was: Police Commission = BDT 500/month Rent = BDT 1,000/month Utility = BDT 200/month Depreciation = BDT 60/month During a normal situation, the following growth has been observed: Raw material cost increases by 10% every year Labor cost increases by 8% every year MOH cost increases by 12% every year Selling and administration cost increases by 4% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2020 (PCORONA virus year ) and another Master Budget for the year 2021 (year of new normal). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation. Give reasons of any changes of you assumptions between 2020 and 2021 Master Budget i.e., during COVID 19 situation and during neo normal. Also keep in mind that due to COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above). %3|

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...
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You have a tea stall in operation at Dhanmondi lake since 2018. Information of your business in 2019 are as follows: Selling price was BDT 10 per cup Average Sales volume was 35 cup per day Annual sales growth was 12% Price increases by 20% every year Monthly average selling and administration cost of the stall was: Police Commission = BDT 500/month Rent = BDT 1,000/month Utility = BDT 200/month Depreciation = BDT 60/month During a normal situation, the following growth has been observed: Raw material cost increases by 10% every year Labor cost increases by 8% every year MOH cost increases by 12% every year Selling and administration cost increases by 4% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2020 (PCORONA virus year ) and another Master Budget for the year 2021 (year of new normal). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation. Give reasons of any changes of you assumptions between 2020 and 2021 Master Budget i.e., during COVID 19 situation and during neo normal. Also keep in mind that due to COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above). %3D
Transcribed Image Text:You have a tea stall in operation at Dhanmondi lake since 2018. Information of your business in 2019 are as follows: Selling price was BDT 10 per cup Average Sales volume was 35 cup per day Annual sales growth was 12% Price increases by 20% every year Monthly average selling and administration cost of the stall was: Police Commission = BDT 500/month Rent = BDT 1,000/month Utility = BDT 200/month Depreciation = BDT 60/month During a normal situation, the following growth has been observed: Raw material cost increases by 10% every year Labor cost increases by 8% every year MOH cost increases by 12% every year Selling and administration cost increases by 4% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2020 (PCORONA virus year ) and another Master Budget for the year 2021 (year of new normal). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation. Give reasons of any changes of you assumptions between 2020 and 2021 Master Budget i.e., during COVID 19 situation and during neo normal. Also keep in mind that due to COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above). %3D
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