You have a tea stall in operation at Ramna park since 2015. Information of your business in 2018 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
You have a tea stall in operation at Ramna park since 2015. Information of your business in 2018 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
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
Give reasons of any changes of you 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).
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