Business Plan We Chef

8/10/2019 Business Plan We Chef

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MANAGEMENT ACCOUNTING

FUNDAMENTAL

(ACC 1511)

TOPIC BUSINESS PROPOSAL

GROUP NAME WE CHEF PARTNERSHIP

NAME MATRIC NO.

SITI FARHANA NABILAH BT JUMALI 1321592AFIFAH NABILAH BT MOHAMAD SAFEI 1321976

SHARINA AZLEEN BT ERMAN EFENDI 1323568

NUUR NAJIHAH BT RIDZUAN 1320444

RUZANA BT SUHAIMI 1322836

Lecturers Name:Dr.NurBarizah Abu Bakar

Section : 2

Session : Semester 1(14/15)


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TABLE OF CONTENTS

DETAILS PAGES

TABLE OF CONTENTS 2 - 3

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

1.2 COMPANY SUMMARY

1.2.1 COMPANY OWNERSHIP

1.2.2 CAPITAL INVESTMENT

4

4

4

4

5

5

5

6

6

6 - 7

8

8

8

2.0 MARKET ANALYSIS

2.1 TARGET MARKET

2.2 MARKET TREND

2.3 COMPETITION

9

9 - 10

10 - 11

11

3.0 STRATEGY AND IMPLEMENTATION

3.1 SWOT ANALYSIS

3.2 MARKETING STRATEGY

3.2.1 MARKETING MIX

3.3 SALES STRATEGY

12

12

12

12 - 13

13 - 14

4.0 OPERATIONAL PLAN

4.1 PRODUCTION PROCESS

4.2 OPERATING HOURS

4.3 WORKING SCHEDULE

4.4 RAW MATERIALS

14

14 - 15

15

15

16

5.0 FINANCIAL PLAN 16-17


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5.1 CLASSIFICATION OF PRODUCT COST

5.1.2 VARIABLE COST PER UNIT

5.1.3 FIX COST PER MONTH

5.2 PRICING ANALYSIS5.3 MASTER BUDGET

5.3.1 SALES BUDGET

5.3.2 PRODUCTION BUDGET

5.3.3 DIRECT MATERIAL BUDGET

5.3.4 DIRECT LABOR BUDGET

5.3.5 OVERHEAD BUDGET

5.3.6 SELLING AND ADMINISTRATIVE

EXPENSE BUDGET

5.3.7 CASH RECEIPT BUDGET

5.3.8 CASH DISBURSEMENT BUDGET

5.3.9 CASH BUDGET

5.3.10 BUDGETED INCOME STATEMENT

5.4 COST-VOLUME-PROFIT (CVP) ANALYSIS

5.4.1 CVP ANALYSIS WITH MULTIPLE

PRODUCTS

5.4.2 WEIGHTED-AVERAGE UNIT

CONTRIBUTION MARGIN

5.4.3 BREAK-EVEN ANALYSIS

17-18

17

17 -18

18 - 19

19

19 - 20

21 - 22

23 - 25

26

27

27

28 - 29

29 - 30

30-31

31

32

32

32

33-34

CONCLUSION 35

APPENDIX 36


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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

1.1.2 MOTTO

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

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

This chef hat

represents our

company identity

This heart shape means

that our customer will

love our sandwiches after

they had tastes it


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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 Chicken and Cheese

Sandwiches


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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

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.

Siti FarhanaNabilah Binti

Jumali

Directing Manager

Ruzana BintiSuhaimi

FinancialManager

Afifah Nabilah BintiMohamad Safei

MarketingManager

Nuur NajihahBinti Ridzuan

OperationManager

Sharina Azleen BintiErman Efendi

AdministrativeManager


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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.


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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


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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


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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:

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

Market Analysis

Mahallah AsiahMahallah Aminah

Mahallah Safiyyah

Others


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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.


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3.0 STRATEGY AND IMPLEMENTATION

3.1 SWOT ANALYSIS

STRENGTHS WEAKNESSES

Foods sold are suitable for midnight

snacks.

The students lifestyle where they are

always in their rooms at night.

Have the basic and experience in

accounting.

All managers are full-time students

which have another priority to be

fulfilled within a limited amount of

time.

OPPORTUNITIES THREATS

Generate side income to cover daily

expenses.

Get to know other students.

Changes in the customers

preferences.

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.


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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:


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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.


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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

WORKERS

MAHALLAH QUANTITY OF

SANDWICHES SELL

2 Aminah 40

2 Asiah 40

1 Safiyyah 20


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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

SANDWICHES

Chicken & Cheese

Sandwich

Mackerel

Sandwich

Egg Mayo

Sandwich

INGREDIENTS

(RAW MATERIALS)

Bread, Ham, Cheese Bread, Mackerel and

Margarine

Bread, Boiled egg,

Mayonnaise

5.0 FINANCIAL PLAN

5.1 CLASSIFICATION OF PRODUCT COST

COST PRICE PER UNIT

(RM)

QUANTITY TYPE OF COST

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 1 Variable

Eggs 5.40 6 Variable

Margarine 4.70 1 Variable

Plastics 7.50 7 Variable

Direct Labor 0.50 Per Hour Variable

Indirect Labor 20.00 Per Week Fixed


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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

Per Unit

0.63 0.86 0.44

5.1.2 FIXED COST

Price (RM) Quantity Total Cost (RM) Total Fixed Cost Per Unit (RM)

Indirect Labor 20.00 Per Week 80.00


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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


Percentage of Targeted Profit (%) 42.86



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c) Egg Mayo Sandwiches


Percentage of Targeted Profit (%) 138.10



5.3 MASTER BUDGET

5.3.1 SALES BUDGET

We Chef Partnership

Sales Budget

For the Month Ending 30thNovember 2014

Weeks Month

1 2 3 4

Mackerel

Sandwiches Revenue

Budgeted Sales(units)

Selling Price

Mackerel Sandwiches

Sales Revenue

20

RM1.20

RM24.00

68

RM1.20

RM81.60

68

RM1.20

RM81.60

68

RM1.20

RM81.60

224

RM1.20

RM268.80


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Chicken and Cheese

Sandwiches Revenue


Selling Price

Chicken Cheese

Sandwiches Sales

Revenue

24

RM1.50

RM36.00

66

RM1.50

RM99.00

66

RM1.50

RM99.00

66

RM1.50

RM99.00

222

RM1.50

RM333.00

Egg Mayo

Sandwiches


Selling Price

Egg Mayo Sales

Revenue

20

RM1.20

RM24.00

66

RM1.20

RM79.20

66

RM1.20

RM79.20

66

RM1.20

RM79.20

218

RM 1.20

RM261.60

Total Sales Revenue RM84.00 RM259.80 RM259.80 RM259.80 RM863.40


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5.3.2 PRODUCTION BUDGET

We Chef Partnership

Production Budget


Weeks Month

1 2 3 4

Mackerel

Sandwiches Revenue

Sales (units)

Add: Desired Ending

Inventory

Total Needed

Less: Beginning

Inventory

Units to be Produced

20

0

20

0

20

68

0

68

0

68

68

0

68

0

68

68

0

68

0

68

224

0

224

0

224


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Chicken and Cheese

Sandwiches Revenue

Sales (units)

Add: Desired Ending

Inventory

Total Needed

Less: Beginning

Inventory


24

0

24

0

24

66

0

66

0

66

66

0

66

0

66

66

0

66

0

66

222

0

222

0

222

Egg Mayo

Sandwiches

Sales (units)

Add: Desired Ending

Inventory

Total Needed

Less: Beginning

Inventory


20

0

20

0

20

66

0

66

0

66

66

0

66

0

66

66

0

66

0

66

218

0

218

0

218

Total Units to be

Produced 64 200 200 200 664


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5.3.3 DIRECT MATERIAL BUDGET

We Chef Partnership

Direct-Material Budget (in units)


Raw Materials

Bread Mackerel Margarine Cheese

Slices

Chicken

Ham

Eggs Mayonnaise Plastics

Week 1

(64 units to be

produced)

Week 2

(200 units to be

produced)

Week 3

(200 units to be

produced)

Week 4

(200 units to be

produced)

3

9

9

9

2

4

4

4

1

-

-

-

1

3

3

3

2

6

6

6

1

2

2

1

1

-

-

-

1

2

2

2

Production

Requirements

30 14 1 10 20 6 1 7


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Add : Desired

Ending

Inventory 0 0 0 0 0 0 0 0

Total

Requirements

Deduct :

Expected

Beginning

Inventory

30

0

14

0

1

0

10

0

20

0

6

0

1

0

7

0

Production

Requirements

(units) 30 14 1 10 20 6 1 7


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We Chef Partnership

Direct-Material Budget


Anticipated

Price (RM)

Weeks Month

(RM)1 2 3 4

Bread 3.40 3RM3.40

=RM10.20

9RM3.40

=RM30.60

9RM3.40

=RM30.60

9RM3.40

=RM30.60 102.00

Mackerel 5.70 2RM5.70

=RM11.40

4RM5.70

=RM22.80

4RM5.70

=RM22.80

4RM5.70

=RM22.80 79.80

Margarine 4.70 1RM4.70

=RM4.70

- - -

4.70

Cheese

Slices

6.00 1RM6.00

=RM6.00

3RM6.00

=RM18.00

3RM6.00

=RM18.00

3RM6.00

=RM18.00 60.00

Chicken

Ham

3.80 2RM3.80

=RM7.60

6RM3.80

=RM22.80

6RM3.80

=RM22.80

6RM3.80

=RM22.80 76.00

Egg 5.40 1RM5.40

=RM5.40

2RM5.40

=RM10.80

2RM5.40

=RM10.80

1RM5.40

=RM5.40 32.40

Mayonnaise 8.30 1RM8.30

=RM8.30

- - -

8.30

Plastics 7.50 1RM7.50

=RM7.50

2RM7.50

=RM15

2RM7.50

=RM15

2RM7.50

=RM15 52.50

Total Direct Material RM61.10 RM120 RM120 RM114.60 RM415.70


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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 30thNovember 2014

Week 1 Week 2 Week 3 Week 4 Month

Production in

units

Direct labor

hours

64

0.03

200

0.03

200

0.03

200

0.03

664

0.03

Labor hours

required 1.92 6 6 6 19.92

Guaranteed

labor hours 4 4 4 4

Labor hours

paid 4 6 6 6 22

Wage rate RM0.50 RM0.50 RM0.50 RM0.50 RM0.50

Total direct

labor cost RM2.00 RM3.00 RM3.00 RM3.00 RM11.00


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5.3.5 PRODUCTION OVERHEAD BUDGET

We Chef Partnership

Production Overhead Budget

For Month Ended 30thNovember 2014


Indirect Labor

Rent

RM20

1

RM20

1

RM20

1

RM20

1

RM80

4

RM21 RM21 RM21 RM21 RM84

5.3.6 SELLING AND ADMINISTRATIVE EXPENSE BUDGET

We Chef Partnership

Selling and Administrative Budget For the Month Ending 30thNovember 2014


Sales in units

Variable S&A rate

64

RM 0

200

RM 0

200

RM 0

200

RM 0

664

RM 0

Variable expense RM 0 RM 0 RM 0 RM 0 RM 0

Fixed S&A expense

Transportation

Advertising

RM10

2

RM10 RM10 RM10 RM40

2

Total expense RM12 RM10 RM10 RM10 RM42

Cash disbursements RM12 RM10 RM10 RM10 RM42


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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


Weeks Month

1 2 3 4

Week 1 Sales Revenue:

Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and

CheeseSandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches


RM24.00

36.00

24.00

RM81.60

99.00

79.20

RM 81.60

99.00

79.20

RM24.00

36.00

24.00

81.60

99.00

79.20

81.60

99.00

79.20


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Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches

RM81.60

99.00

79.20

81.60

99.00

79.20

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


Weeks Month

1 2 3 4

Payment for Direct Material

Purchases:

Bread

Mackerel

Margarine

Cheese Slices

Chicken Ham

Eggs

Mayonnaise

Plastics

RM10.20

11.40

4.70

6.00

7.60

5.40

8.30

7.50

RM30.60

22.80

-

18.00

22.80

10.80

-

15.00

RM30.60

22.80

-

18.00

22.80

10.80

-

15.00

RM30.60

22.80

-

18.00

22.80

5.40

-

15.00

RM102.00

79.80

4.70

60.00

76.00

32.40

8.30

52.50


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Total Cash Disbursement

for Direct Material

Purchases RM61.10 RM120 RM120 RM114.60 RM415.70

Other Cash Disbursement

Direct Labor

Production Overhead

Selling and

Administrative

RM 2.00

21.00

12.00

RM 3.00

21.00

10.00

RM 3.00

21.00

10.00

RM3.00

21.00

10.00

RM 11.00

84.00

42.00

Total Other Cash

Disbursement RM35.00 RM34.00 RM34.00 RM34.00 RM137.00

Total Cash Disbursements RM96.10 RM154.00 RM154.00 RM148.60 RM552.70

5.3.9 CASH BUDGET

We Chef Partnership

Cash Budget



Beginning cash

balance RM 100

84

RM87.90

259.80

RM193.70

259.80

RM299.50

259.80

RM100

863.40

Add: Cash

Collection


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Total Cash

Available

Less: Cash

Disbursements

RM184.00

(96.10)

RM347.70

(154.00)

RM453.50

(154.00)

RM559.30

(148.60)

RM963.40

(552.70)

Cash Available over

Disbursements RM87.90 RM193.70 RM299.50 RM410.70 RM410.70

5.3.10 BUDGETED INCOME STATEMENTS

We Chef Partnership

Budgeted Income Statement


Sales revenue

RM415.70

11.00

84.00

RM863.40

(510.70)

Cost of goods sold:

Cost of purchases

Direct labor costs

Production overhead costs

Total cost of goods sold

Gross margin RM352.70

42.00

Other income and expenses:

Selling and administrative

expenses

Net Income RM310.70


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5.4 COST-VOLUME-PROFIT (CVP) ANALYSIS

5.4.1 CVP ANALYSIS WITH MULTIPLE PRODUCTS

Description Selling

Price

Unit Variable

Cost

Unit

Contribution

Margin

Units

Produced

Mackerel Sandwiches RM1.20 RM0.63 RM0.57 224

Chicken and Cheese Sandwiches 1.50 0.86 RM0.64 222

Egg Mayo Sandwiches 1.20 0.44 RM0.76 218

664

Description Units Produced Percentage of Total (%)

Mackerel Sandwiches 224 33.735

33.74

Chicken and Cheese

Sandwiches

222 33.434

33.43

Egg Mayo Sandwiches 218 32.831

32.83

Total Sold 664 100


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5.4.2 WEIGHTED-AVERAGE UNIT CONTRIBUTION MARGIN

Description Contribution Margin Percentage of Total

(%)

Weighted

Contribution (RM)

Mackerel

Sandwiches

RM0.57 33.74 0.19

Chicken and Cheese

Sandwiches

RM0.64 33.43 0.21

Egg Mayo

Sandwiches

RM0.76 32.83 0.25

Weighted-average contribution margin 0.65

5.4.3 BREAK-EVEN ANALYSIS

Break-even point

=

=

= 193.85

194 combined units of sales


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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.


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APPENDIX

Documents

Business Plan We Chef