70.2K

Verified Solution

Link Copied!

Act 202 Group Project Outline Fall 21

You have a burger stall in operation at Bashundhara R/A since 2015. Information of your business in 2018 are as follows: Selling price was BDT 250 per burger Average Sales volume was 50 burgers per day Annual sales growth was 5% Price increases by 15% every year Monthly average selling and administration cost of the stall was: Grease payment = BDT 1,000/month Rent = BDT 8,000/month Utility = BDT 4,000/month Depreciation = BDT 500/month During a normal situation, the following growth has been observed: Raw material cost increases by 5% every year Labor cost increases by 3% every year MOH cost increases by 7% every year Selling and administration cost increases by 2% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre-CORONA virus year) and another Master Budget for the year 2020 (CORONA virus year). 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 your assumptions between 2019 and 2020 Master Budget i.e., pre COVID 19 situation and during COVID 19 situation. 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).

Introduction & Conclusion 250 word

Answer & Explanation Solved by verified expert

See Answer