You are on page 1of 36

MANAGEMENT ACCOUNTING

FUNDAMENTAL
(ACC 1511)

TOPIC: BUSINESS PROPOSAL


GROUP NAME: WE CHEF PARTNERSHIP

NAME
SITI FARHANA NABILAH BT JUMALI
AFIFAH NABILAH BT MOHAMAD SAFEI
SHARINA AZLEEN BT ERMAN EFENDI
NUUR NAJIHAH BT RIDZUAN
RUZANA BT SUHAIMI

Lecturers Name:Dr.NurBarizah Abu Bakar


Section

:2

Session

: Semester 1(14/15)

MATRIC NO.
1321592
1321976
1323568
1320444
1322836

TABLE OF CONTENTS

DETAILS

PAGES
2-3

TABLE OF CONTENTS

1.0 COMPANY OVERVIEW

1.1 EXECUTIVE SUMMARY


1.1.1 LOGO

1.1.2 MOTTO

1.1.3 MISSION

1.1.4 VISION

1.1.5 PRODUCTS

1.1.6 MANAGEMENT

ORGANIZATIONAL CHART

JOB SCOPE

6
6-7
8

1.2 COMPANY SUMMARY


1.2.1 COMPANY OWNERSHIP

1.2.2 CAPITAL INVESTMENT

8
9

2.0 MARKET ANALYSIS


2.1 TARGET MARKET

9 - 10

2.2 MARKET TREND

10 - 11
11

2.3 COMPETITION
3.0 STRATEGY AND IMPLEMENTATION

12

3.1 SWOT ANALYSIS

12

3.2 MARKETING STRATEGY

12
12 - 13

3.2.1 MARKETING MIX

13 - 14

3.3 SALES STRATEGY

14

4.0 OPERATIONAL PLAN

14 - 15

4.1 PRODUCTION PROCESS


4.2 OPERATING HOURS

15

4.3 WORKING SCHEDULE

15

4.4 RAW MATERIALS

16
16-17

5.0 FINANCIAL PLAN

-2-

17-18

5.1 CLASSIFICATION OF PRODUCT COST

17

5.1.2 VARIABLE COST PER UNIT

17 -18

5.1.3 FIX COST PER MONTH

18 - 19

5.2 PRICING ANALYSIS

19

5.3 MASTER BUDGET


5.3.1 SALES BUDGET

19 - 20

5.3.2 PRODUCTION BUDGET

21 - 22

5.3.3 DIRECT MATERIAL BUDGET

23 - 25

5.3.4 DIRECT LABOR BUDGET

26

5.3.5 OVERHEAD BUDGET

27

5.3.6

SELLING

AND

ADMINISTRATIVE
27

EXPENSE BUDGET
5.3.7 CASH RECEIPT BUDGET

28 - 29

5.3.8 CASH DISBURSEMENT BUDGET

29 - 30

5.3.9 CASH BUDGET

30-31

5.3.10 BUDGETED INCOME STATEMENT

32

5.4 COST-VOLUME-PROFIT (CVP) ANALYSIS


5.4.1

CVP ANALYSIS

WITH

MULTIPLE
32

PRODUCTS
5.4.2

31

WEIGHTED-AVERAGE

UNIT

CONTRIBUTION MARGIN

32

5.4.3 BREAK-EVEN ANALYSIS

33-34

CONCLUSION

35

APPENDIX

36

-3-

1.0 COMPANY OVERVIEW


1.1 EXECUTIVE SUMMARY
WE CHEF is a new business operated at International Islamic University Malaysia
(IIUM) that serves fresh and healthy sandwiches to the students. Unlike other businesses, WE
CHEF is operated through a very unique way which focus on door-to-door basis of
selling.WE CHEF provides the students with the combination of delicious, healthy, halal and
nutritious sandwiches at value pricing which are cheaper and affordable. This business aims
to get a high profit as well as providing healthy foods for the students.

1.1.1 LOGO

This chef hat


represents our
company identity

This heart shape means


that our customer will
love our sandwiches after
they had tastes it

WE CHEF represents our


company name and its mean
that we are making sandwiches
that tastes same like a chefs

This logo represents our


product which is
sandwiches

1.1.2 MOTTO
Our company motto is A great taste that will make you happy

-4-

1.1.3 MISSION
We ensure that each of our customers receives professional, friendly and courteous
service.
We make sure that our company provide food at a fair price, nutritional, well prepared
meals by using only quality ingredients.
We insist to sell all of our products within four weeks.

1.1.4 VISION
We hope to widen our business and serve the students with the best service.
We hope to be a profitable and competitive business in the future.

1.1.5 PRODUCTS
WE CHEF will offer the studentswith manufacturing type of products.Students will
have the choice ofthree types of sandwiches which are mackerel sandwiches, egg mayo
sandwiches, and chicken and cheese sandwiches. We use halal and tasty readymade bread for
all types of the sandwiches. The specific ingredients such as ham, mackerel, mayonaise,
cheese and egg are also bought from the halal manufacturers.

Mackerel Sandwiches

Egg Mayo Sandwiches

-5-

Chicken and Cheese


Sandwiches

1.1.6 MANAGEMENT
WE CHEF will be lead by Siti Farhana Nabilah bt Jumali as the managing director
and followed by Sharina Azleen bt Erman Efendi as the administration manager, Nuur
Najihah bt Ridzuan as the operating manager, Afifah Nabilah bt Mohamad Safei as marketing
manager and Ruzana bt Suhaimi as the financial manager. Each of them posses their own
skills and talents which make them qualify to fill in that certain position.

ORGANIZATIONAL STRUCTURE

Siti Farhana
Nabilah Binti
Jumali
Directing Manager

Ruzana Binti
Suhaimi
Financial
Manager

Afifah Nabilah Binti


Mohamad Safei
Marketing
Manager

Nuur Najihah
Binti Ridzuan
Operation
Manager

Sharina Azleen Binti


Erman Efendi
Administrative
Manager

JOB DESCRIPTION

Directing Manager :Siti Farhana Nabilah Binti Jumali


Directing Manager in charge in total management of organization. Siti
Farhana Nabilah has responsibilities as a director, decision maker, leader, manager
and executor. As a manager, she supervise over the organization's day-to-day
operations.

-6-

Financial Manager :Ruzana Binti Suhaimi


Financial Manager is obviously concerned with her business finance. Ruzana
study the debts and receivables, cash flow, future capitalization needs, financial
statements and other accounting information. It is also importance for the financial
managers to know the information about the present state of the company and
predictions of business conditions in the future. Besides, she also needs to react
immediately to frequent changes in project, process or administrative needs.

Marketing Manager :Afifah Nabilah Binti Mohamad Safei


Marketing Manager need to have detailed information about her business
product and service and the product and service offered by nearest competitors. Such
information includes pricing strategies, new promotional campaigns and products that
competitors are test marketing and also information concerning the business
customers.

Operation Manager:Nuur Najihah Binti Ridzuan


Operation Manager is concerned with present and future sales levels of work
in process and finished goods and the availability and cost of the resources required to
produced products and services.

Administrative Manager:Sharina Azleen Binti Erman Efendi


Administrative Manager are responsible for the overall management of the
organization. Thus they are concerned with the coordination of material, human and
financial resources.

-7-

1.2 COMPANY SUMMARY


1.2.1 COMPANY OWNERSHIP
WE CHEF is apartnership business which is formed through a partnership of five
shareholders; SitiFarhanaNabilah, NuurNajihah, AfifahNabilah, Ruzana and SharinaAzleen.
The business will be based in International Islamic University Malaysia (IIUM) and will
serve the students at the respective hostels.

1.2.2CAPITAL INVESTMENT
CASH
Since WE CHEF is a partnership business between five shareholders, every
shareholders will be contribute some cash amounted to RM 20.00 for capital investment. So,
the total fixed capital contributed by all shareholders is RM100.00.

EQUIPMENTS

As a start-up business, WE CHEF will require some equipments and capitals to begin
operations. Some of the equipments are:

Assorted knives

Cutting board

Food containers

Dishesware

-8-

2.0 MARKET ANALYSIS SUMMARY


WE CHEFaims to be the most leading business that servefoods to the students in the
International Islamic University Malaysia (IIUM). Since all of the students have the
commons interests and reasons when it comes to the food selection, we do not have any
marke segmentation. However, because the university is so big and has so many students; in
which we cannot afford to cover all of them, we decided to divide the target market into the
selected female hostels in the university.

2.1 TARGET MARKET

ENVIRONMENTAL FACTORS
1. Physical: Cafes at the female hostel normally close their business at 10 p.meveryday.
This early closing time is being a problem for some students who come back to their
room late at night due to some reasons such as attending programs and events, having
mock trials or interviews, andpreparing for their assignments. Under this
circumstances, they normally have not take their dinner yet. If they can find any food
vendors at this time, it will be great for them.
2. Legal: Based on university rules and regulation, there is no any legal laws specifies
that any businesses conducted by the students at the hostel must have permission from
the Mahallahs Principal. This is a great opportunity for WE CHEF to run the
business smoothly at mahallah.
3. Social: According to a study in the journal Psychosomatic Medicine , it is said that
intellectual work results a big increase in caloric intake; which means, people will feel
more hungry when they do intellectual work such as studying. Students are usually

-9-

studying at night for their quizzes and examinations and this will make them feel
hungry. Normally, most of the students will be in their room at night after being out
for the whole day. Providing foods for them on door-to-door basis during that time
will be the best option to help them satisfy their needs.
With these factors, WE CHEF has decided to concentrate the market only at the selected
female hostels which are MahallahAsiah, MahallahAminah and MahallahSafiyyah before
expanding it to other hostels in IIUM. We will create sales from these three female hostels by
providing door-to-door selling services since we target to have a high turnover from the sales.
Therefore, our market analysis chart below represents this market strategy:

Market Analysis

Mahallah Asiah
Mahallah Aminah
Mahallah Safiyyah
Others

2.2 MARKET TREND


Based on the previous semester, students normally will start to stay up at night after
their mid term break is over. This happens because they are preparing for their mid term
examination and they have to submit their assignments either before or right after their mid
term examination. During this period, students really love if there is a vendor who sells foods

- 10 -

on door-to-door basis. There were some businesses who sold foods on door-to-door basis
during this period in the previous semester. And this kind of food businesses is growing up
every semester due to the high demand from the students.

2.3 COMPETITION
Since the business in food industry is always referred as a low risk business which gives a
high turnover, there are other vendors who actively involve in the same kind of business as
WE CHEF.
Fast Food Restaurants: Some fast food restaurants such as Dominos Pizza, KFC,
McDonald, Papa John and Pizza Hut provide delivery services. Some students really
love to eat fast food at night and they will prefer to order foods from the fast food
restaurants.
Hostels Cafe: Eventhough cafes at female hostels normally close early, some
students will buy foods from the cafes (before they close) and keep the foods for
supper. Besides, some of the students will ask their male friends to buy food for them
when they feel hungry in the midnight since the cafes at male hostels are usually
operating until 2 a.m.
Other Door-To-Door Vendors: There are some food vendors who also operate their
businesses on door-to-door basis. Plus, even some of them sell the same type of food
as what WE CHEF sell.

- 11 -

3.0 STRATEGY AND IMPLEMENTATION


3.1 SWOT ANALYSIS
STRENGTHS

WEAKNESSES

Foods sold are suitable for midnight

All managers are full-time students

snacks.

which have another priority to be

The students lifestyle where they are

fulfilled within a limited amount of

always in their rooms at night.

time.

Have the basic and experience in


accounting.

OPPORTUNITIES

THREATS

Generate side income to cover daily


expenses.

Changes in the customers


preferences.

Get to know other students.

3.2 MARKETING STRATEGY


3.2.1 MARKETING MIX
PRODUCT

WE CHEF offers a light foods which is suitable to be eaten at night. We provide a handmade
sandwiches which we make by ourselves using the halal and tasty ingredients. There are three
types of sandwiches which are mackerel sandwiches, chicken and cheese sandwiches, and
egg mayo sandwiches. Students can choose from those three types of sandwiches according
to their preferences.

- 12 -

PRICE

The prices of the sandwiches that we offer are cheaper and affordable. Students usually prefer
for a cheaper food to save their daily budget. The price of the sandwiches are different
according to the their types as follows:

Mackerel Sandwiches: RM 1.20

Chicken and Cheese Sandwiches: RM 1.50

Egg Mayo: RM 1.20

PLACE
As for business places, we choose to operate at MahallahAsiah, MahallahAminah and
MahallahSafiyyah. This is because our production process will take place at MahallahAsiah.
So, it will be easy for us to do the selling process at the nearby mahallah.Besides, students
usually stay in their roomat night. This kind of situation is an advantages to us since we are
doing the the selling process on door-to-door basis.

PROMOTION

To boost up our sales, we advertise our products on the social medias such as
Whatsapp and Facebook. We also distributes posters and flyers to promote and inform the
mahallah residents about our business.

3.3 SALES STRATEGY

We use two type of sales strategies:

- 13 -

1. Door-to-door:We use door-to-door basis selling process to sell our products. Since
the students normally stay in their rooms at night, this type of selling process is more
effective to be used.
2. Room Services: Sometimes, we also take order from customers and deliver the
products to their rooms. This is one of the effective way that can be used to sell
products since students do not need to leave their rooms to get foods that they want.

4.0 OPERATIONAL PLAN

4.1 PRODUCTION PROCESS

These are the following process that required for the production of Mackerel
Sandwich, Egg Mayo Sandwich and Chicken & Cheese Sandwich:

STEP 1: The Operation department of WE CHEF will deal with the suppliers and place the
order of ingredients/raw materials need to be use for making each type of the sandwiches.

STEP 2: Then department will choose and select the best quality of raw materials to produce
sandwiches.

STEP 3: The department will purchase all the raw materials that have been chosen for
making the sandwiches.

STEP 4: After purchasing the raw materials, we will divide all the ingredients based on the
type of sandwiches .

STEP 5: Next, we mixed the ingredients together based on the types of the sandwiches.

STEP 6: Packaging process take place to ensure the sandwiches are well stored and to ensure
that the sandwiches supply to the customers is the best quality of sandwiches.

- 14 -

STEP 7: Put the label on the packaging to differentiate between each types of sandwiches.

STEP 8: Sandwiches are ready to sell to the customers at Mahallah Aminah, Mahallah Asiah
and Mahallah Safiyyah. We do delivery service to distribute and sell the sandwiches to the
customers (Timesthat required to mixed the ingredients and do packaging is about 3 hours).

4.2 OPERATING HOURS


Table below shows the WE CHEF company operation of working hours:
DAY

TIME

SUNDAY

10P.M

THURSDAY

TO
12A.M

*Off during weekdays (Monday to Wednesday) and; on Friday and Saturday

4.3 WORKING SCHEDULE


The table below shows the working schedule for our selling activities. We assign the
tasks among us to sell the sandwiches at the mahallah that we choose to sell. Then, we
distribute 20 sandwiches per person for all of us to sell it to the customers.
NUMBER OF

MAHALLAH

WORKERS

QUANTITY OF
SANDWICHES SELL

Aminah

40

Asiah

40

Safiyyah

20

- 15 -

4.4 RAW MATERIALS


WE CHEF company produces 3 types of sandwiches which are Chicken& Cheese
Sandwich, Mackerel Sandwich and Egg Mayo Sandwich. The following are details for raw
material (ingredient) use to make sandwiches.
TYPES OF

Chicken & Cheese

Mackerel

Egg Mayo

SANDWICHES

Sandwich

Sandwich

Sandwich

INGREDIENTS

Bread, Ham, Cheese

Bread, Mackerel and

Bread, Boiled egg,

Margarine

Mayonnaise

(RAW MATERIALS)

5.0 FINANCIAL PLAN


5.1 CLASSIFICATION OF PRODUCT COST
COST

PRICE PER UNIT

QUANTITY

TYPE OF COST

(RM)
Bread

3.40

30

Variable

Mackerel

5.70

14

Variable

Cheese Slices

6.00

10

Variable

Chicken Ham

3.80

20

Variable

Mayonnaise

8.30

Variable

Eggs

5.40

Variable

Margarine

4.70

Variable

Plastics

7.50

Variable

Direct Labor

0.50

Per Hour

Variable

Indirect Labor

20.00

Per Week

Fixed

- 16 -

Rent

1.00

Per Week

Fixed

Transportation

10

Per Week

Fixed

Advertisement

2.00

Per Month

Fixed

5.1.1 VARIABLE COST PER UNIT


We rounded off the cost per unit to two decimal places.
Item

Types of Sandwiches
Mackerel (RM)

Chicken and Cheese (RM)

Egg Mayo (RM)

Bread

0.15

0.15

0.15

Mackerel

0.36

Cheese Slices

0.27

Chicken Ham

0.34

Eggs

0.15

Mayonnaise

0.04

Margarine

0.02

Plastics

0.08

0.08

0.08

Direct Labor

0.02

0.02

0.02

Total Variable Cost

0.63

0.86

0.44

Per Unit

5.1.2 FIXED COST

Indirect Labor

Price (RM)

Quantity

Total Cost (RM)

20.00

Per Week

80.00

- 17 -

Total Fixed Cost Per Unit (RM)

Rent

1.00

Per Week

4.00

Transportation

10

Per Week

40.00

Advertisement

2.00

Per Month

2.00
126.00

5.2 PRICING ANALYSIS


Pricing Analysis
WE CHEF PARTNERSHIP is using cost-plus pricing as pricing strategy. Cost-plus pricing
means that the price is equal to cost plus a markup. The cost-plus formula that this business
used is based on all cost: both variable and fixed cost of manufacturing, selling and
administrative cost. For each product, we set different markup percentage. Basically, we set
our products price as follows:
Price = Total Cost + (Markup Percentage Total Cost)
a) Mackerel Sandwiches
Expected Total Cost Per Unit of Production (RM)

0.63 + 0.19 = 0.82

Markup Percentage (%)

46.34

Targeted Profit Per Unit (RM)

0.38

Selling Price Per Unit (RM)

1.20

b) Chicken and Cheese Sandwiches


Expected Total Cost Per Unit of Production (RM)

0.86 + 0.19 = 1.05

Percentage of Targeted Profit (%)

42.86

Targeted Profit Per Unit (RM)

0.45

- 18 -

Selling Price Per Unit (RM)

1.50

c) Egg Mayo Sandwiches


Expected Total Cost Per Unit of Production (RM)

0.44 + 0.19 = 0.63

Percentage of Targeted Profit (%)

138.10

Targeted Profit Per Unit (RM)

0.57

Selling Price Per Unit (RM)

1.20

5.3 MASTER BUDGET


5.3.1 SALES BUDGET
We Chef Partnership
Sales Budget
For the Month Ending 30th November 2014
Weeks
1

Month

Mackerel
Sandwiches Revenue
Budgeted Sales(units)
Selling Price

20

68

68

68

224

RM1.20

RM1.20

RM1.20

RM1.20

RM1.20

RM24.00

RM81.60

RM81.60

RM81.60

RM268.80

Mackerel Sandwiches
Sales Revenue

- 19 -

Chicken and Cheese


Sandwiches Revenue
Budgeted Sales(units)
Selling Price

24

66

66

66

222

RM1.50

RM1.50

RM1.50

RM1.50

RM1.50

RM36.00

RM99.00

RM99.00

RM99.00

RM333.00

Chicken Cheese
Sandwiches Sales
Revenue
Egg Mayo
Sandwiches
Budgeted Sales(units)
Selling Price

20

66

66

66

218

RM1.20

RM1.20

RM1.20

RM1.20

RM 1.20

RM24.00

RM79.20

RM79.20

RM79.20

RM261.60

RM259.80

RM259.80

RM259.80

RM863.40

Egg Mayo Sales


Revenue

Total Sales Revenue

RM84.00

- 20 -

5.3.2 PRODUCTION BUDGET


We Chef Partnership
Production Budget
For the Month Ending 30th November 2014
Weeks

Month

20

68

68

68

224

20

68

68

68

224

Inventory

Units to be Produced

20

68

68

68

224

Mackerel
Sandwiches Revenue
Sales (units)
Add: Desired Ending
Inventory
Total Needed

Less: Beginning

- 21 -

Chicken and Cheese


Sandwiches Revenue
Sales (units)

24

66

66

66

222

Inventory

Total Needed

24

66

66

66

222

Inventory

Units to be Produced

24

66

66

66

222

20

66

66

66

218

Inventory

Total Needed

20

66

66

66

218

Inventory

Units to be Produced

20

66

66

66

218

64

200

200

200

664

Add: Desired Ending

Less: Beginning

Egg Mayo
Sandwiches
Sales (units)
Add: Desired Ending

Less: Beginning

Total Units to be
Produced

- 22 -

5.3.3 DIRECT MATERIAL BUDGET


We Chef Partnership
Direct-Material Budget (in units)
For the Month Ending 30th November 2014
Raw Materials
Bread

Mackerel Margarine

Cheese

Chicken

Slices

Ham

Eggs Mayonnaise

Plastics

Week 1
(64 units to be
produced)

produced)

Production

30

14

10

20

Week 2
(200 units to be
produced)
Week 3
(200 units to be
produced)
Week 4
(200 units to be

Requirements

- 23 -

Add : Desired
Ending
Inventory

Total

30

14

10

20

30

14

10

20

Requirements
Deduct :
Expected
Beginning
Inventory

Production
Requirements
(units)

- 24 -

We Chef Partnership
Direct-Material Budget
For the Month Ending 30th November 2014
Anticipated

Bread

Mackerel

Margarine

Weeks

Month

Price (RM)

3.40

3RM3.40

9RM3.40

9RM3.40

9RM3.40

=RM10.20

=RM30.60

=RM30.60

=RM30.60

2RM5.70

4RM5.70

4RM5.70

4RM5.70

=RM11.40

=RM22.80

=RM22.80

=RM22.80

1RM4.70

5.70

4.70

=RM4.70
Cheese

6.00

Slices
Chicken

3.80

Ham
Egg

Mayonnaise

5.40

8.30

7.50

Total Direct Material

102.00

79.80

4.70

1RM6.00

3RM6.00

3RM6.00

3RM6.00

=RM6.00

=RM18.00

=RM18.00

=RM18.00

2RM3.80

6RM3.80

6RM3.80

6RM3.80

=RM7.60

=RM22.80

=RM22.80

=RM22.80

1RM5.40

2RM5.40

2RM5.40

1RM5.40

=RM5.40

=RM10.80

=RM10.80

=RM5.40

1RM8.30

=RM8.30
Plastics

(RM)

60.00

76.00

32.40

8.30

1RM7.50

2RM7.50

2RM7.50

2RM7.50

=RM7.50

=RM15

=RM15

=RM15

52.50

RM61.10

RM120

RM120

RM114.60

RM415.70

- 25 -

5.3.4 DIRECT-LABOR BUDGET


At We Chef, each unit of product requires two minutes of direct labor. The labors are paid
RM1 for each hour of working. The direct labors will be paid for a minimum of four hours
per week. The rate of the wage of the labor is RM0.50 per hour.
We Chef Partnership
Direct Labor Budget
For Month Ended 30th November 2014

Production in

Week 1

Week 2

Week 3

Week 4

Month

64

200

200

200

664

0.03

0.03

0.03

0.03

0.03

1.92

19.92

22

RM0.50

RM0.50

RM0.50

RM0.50

RM0.50

RM2.00

RM3.00

RM3.00

RM3.00

RM11.00

units
Direct labor
hours
Labor hours
required

Guaranteed
labor hours
Labor hours
paid
Wage rate
Total direct
labor cost

- 26 -

5.3.5 PRODUCTION OVERHEAD BUDGET


We Chef Partnership
Production Overhead Budget
For Month Ended 30th November 2014
Week 1

Week 2

Week 3

Week 4

Month

RM20

RM20

RM20

RM20

RM80

RM21

RM21

RM21

RM21

Indirect Labor
Rent

4
RM84

5.3.6 SELLING AND ADMINISTRATIVE EXPENSE BUDGET


We Chef Partnership
Selling and Administrative Budget For the Month Ending 30th November 2014
Week 1

Week 2

Week 3

Week 4

Month

64

200

200

200

664

Variable S&A rate

RM 0

RM 0

RM 0

RM 0

RM 0

Variable expense

RM 0

RM 0

RM 0

RM 0

RM 0

RM10

RM10

RM10

RM10

RM40

Sales in units

Fixed S&A expense


Transportation
Advertising

Total expense

RM12

RM10

RM10

RM10

RM42

Cash disbursements

RM12

RM10

RM10

RM10

RM42

- 27 -

5.3.7 CASH RECEIPT BUDGET


At We Chef, all sales are on cash. 100% of sales are collected in the week and month of sales.
We Chef Partnership
Cash Receipt Budget
For the Month Ending 30th November 2014
Weeks
1

Month
2

Week 1 Sales Revenue:


Mackerel Sandwiches

RM24.00

RM24.00

Sandwiches

36.00

36.00

Egg Mayo Sandwiches

24.00

24.00

Chicken and Cheese

Week 2 Sales Revenue:


Mackerel Sandwiches

RM81.60

81.60

CheeseSandwiches

99.00

99.00

Egg Mayo Sandwiches

79.20

79.20

Chicken and

Week 3 Sales Revenue:


Mackerel Sandwiches

RM 81.60

81.60

Sandwiches

99.00

99.00

Egg Mayo Sandwiches

79.20

79.20

Chicken and Cheese

Week 4 Sales Revenue:

- 28 -

Mackerel Sandwiches

RM81.60

81.60

Sandwiches

99.00

99.00

Egg Mayo Sandwiches

79.20

79.20

Chicken and Cheese

Total Cash Receipts (RM)

RM84.00 RM259.80

RM259.80

RM259.80 RM 863.40

5.3.8 CASH DISBURSEMENT BUDGET


We Chef Partnership
Cash Disbursement Budget
For the Month Ending 30th November 2014
Weeks
1

Month

RM30.60

RM30.60

22.80

22.80

Payment for Direct Material


Purchases:
Bread

RM10.20 RM30.60
22.80

RM102.00

Mackerel

11.40

Margarine

4.70

Cheese Slices

6.00

18.00

18.00

18.00

60.00

Chicken Ham

7.60

22.80

22.80

22.80

76.00

Eggs

5.40

10.80

10.80

5.40

32.40

Mayonnaise

8.30

Plastics

7.50

15.00

15.00

- 29 -

15.00

79.80
4.70

8.30
52.50

Total Cash Disbursement


for Direct Material
Purchases

RM61.10 RM120

RM120

RM114.60 RM415.70

Other Cash Disbursement


Direct Labor

RM 2.00

RM 3.00

RM 3.00

RM3.00

RM 11.00

21.00

21.00

21.00

21.00

84.00

12.00

10.00

10.00

10.00

42.00

Disbursement

RM35.00

RM34.00

RM34.00

RM34.00

RM137.00

Total Cash Disbursements

RM96.10 RM154.00

RM154.00

RM148.60

RM552.70

Production Overhead
Selling and
Administrative
Total Other Cash

5.3.9 CASH BUDGET


We Chef Partnership
Cash Budget
For the Month Ending 30th November 2014
Week 1

Week 2

Week 3

Week 4

RM193.70

RM299.50

259.80

259.80

Month

Beginning cash
balance

RM 100

RM87.90

RM100

Add: Cash
Collection

84

259.80

- 30 -

863.40

Total Cash
Available

RM184.00

RM347.70

RM453.50

RM559.30

RM963.40

Less: Cash
Disbursements

(96.10)

(154.00)

RM87.90

RM193.70

(154.00)

(148.60)

(552.70)

RM410.70

RM410.70

Cash Available over


Disbursements

RM299.50

5.3.10 BUDGETED INCOME STATEMENTS


We Chef Partnership
Budgeted Income Statement
For the Month Ending 30th November 2014
Sales revenue

RM863.40

Cost of goods sold:


Cost of purchases

RM415.70

Direct labor costs

11.00

Production overhead costs

84.00
(510.70)

Total cost of goods sold


Gross margin

RM352.70

Other income and expenses:


Selling and administrative
42.00

expenses
Net Income

RM310.70

- 31 -

5.4 COST-VOLUME-PROFIT (CVP) ANALYSIS


5.4.1 CVP ANALYSIS WITH MULTIPLE PRODUCTS
Description

Selling

Unit Variable

Unit

Units

Price

Cost

Contribution

Produced

Margin
Mackerel Sandwiches
Chicken and Cheese Sandwiches

Egg Mayo Sandwiches

RM1.20

RM0.63

RM0.57

224

1.50

0.86

RM0.64

222

0.44

RM0.76

218

1.20

664

Description

Units Produced

Percentage of Total (%)

Mackerel Sandwiches

224

33.735
33.74

Chicken and Cheese

222

33.434
33.43

Sandwiches
Egg Mayo Sandwiches

218

32.831
32.83

Total Sold

664

100

- 32 -

5.4.2 WEIGHTED-AVERAGE UNIT CONTRIBUTION MARGIN


Description

Mackerel

Contribution Margin

Percentage of Total

Weighted

(%)

Contribution (RM)

RM0.57

33.74

0.19

RM0.64

33.43

0.21

RM0.76

32.83

0.25

Sandwiches
Chicken and Cheese
Sandwiches
Egg Mayo
Sandwiches
Weighted-average contribution margin

0.65

5.4.3 BREAK-EVEN ANALYSIS


Break-even point

= 193.85
194 combined units of sales

- 33 -

Description

Breakeven Sales

Percentage of

Individual

Individual

(units)

Total (%)

Sales

Sales (RM)

(units)
Mackerel Sandwiches

194

33.74

65.46

78.00

65
Chicken and Cheese

194

33.43

97.50

65

Sandwiches
Egg Mayo Sandwiches

64.85

194

32.83

63.69

76.80

64
Total

194 units

RM252.30

Based on the CVP analysis, in order to break-even, We Chef Enterprise must sell 194
units of sandwiches in one month. The individual sales are 65 units, 65 units and 64 units for
of each type of sandwiches which are Mackerel Sandwiches, Chicken and Cheese
Sandwiches and Egg Mayo Sandwiches respectively. Meanwhile, the break-even sales in
price will be a total of RM252.30 which are RM78.00, RM97.50 and RM76.80 for Mackerel
Sandwiches, Egg Mayo Sandwiches and Chicken and Cheese Sandwiches respectively.

- 34 -

CONCLUSION
This business project proved to be helpful to all of us. We were able to plan and
execute a business in detail even our business is small and did not get a lot of profit. From the
report, we have learnt a lot about the process of starting up a business. We gained a lot of
experience how to handle the business as well as the operation and what a business has to
undergo to become successful by conducting this report. In addition, we have also learnt
about the risk we have to face and how to overcome the risks. Through perseverance and hard
work, we were successful to achieve our budget. This project also helps to enhance our
entrepreneurship skills. In the near future, we are looking forward to continue our business
venture, Insha Allah.

- 35 -

APPENDIX

- 36 -