business report (acc 1511)

~ 1 ~

MANAGEMENT ACCOUNTING FUNDAMENTAL

(ACC 1511)

TOPIC: BUSINESS REPORT

GROUP NAME: WE CHEF PARTNERSHIP

NAME MATRIC NO.

SITI FARHANA NABILAH BT JUMALI 1321592

AFIFAH NABILAH BT MOHAMAD SAFEI 1321976

SHARINA AZLEEN BT ERMAN EFENDI 1323568

AISHAHTUL AFIEQAH BT AZMAN SHAH 1324070

NUUR NAJIHAH BT RIDZUAN 1320444

RUZANA BT SUHAIMI 1322836

Lecturer’s Name:Dr.NurBarizah Abu Bakar

Section : 2

Session : Semester 1(14/15)

~ 2 ~

TABLE OF CONTENTS

DETAILS PAGES

TABLE OF CONTENTS 2

1.0 SUMMARY OF CHANGES IN BUSINESS PLAN ITEMS

1.1 CLASSIFICATION OF PRODUCT COST

1.2 PRICING ANALYSIS

1.3 MASTER BUDGET

1.4 COST-VOLUME-PROFIT ANALYSIS

3 - 6

6 - 7

7 - 32

2.0 COMPARATIVE STATEMENT OF COMPREHENSIVE

INCOME AND STATEMENT OF FINANCIAL

POSITION

2.1 STATEMENT OF COMPREHENSIVE INCOME

2.2 STATEMENT OF FINANCIAL POSITION

32 - 33

34

3.0 MANAGEMENT REPORT 35 - 36

4.0 APPENDIX 37 -40

~ 3 ~

1.0 SUMMARY OF CHANGES IN THE BUSINESS PLAN ITEMS

1.1 CLASSIFICATION OF PRODUCT COST

There are some changes made in the business plan items. After a long discussion with the

group members, We Chef Partnership decided to reduce the amount of sandwiches sold per

week. The changes are made due to our time constraint to conduct the business as students.

The changes in the quantity of sandwiches sold are as below:

Budgeted Sales

Week 1 Week 2 Week 3 Week 4 Total

Mackerel Sandwiches 20 68 68 68 224

Chicken and Cheese

Sandwiches

24 66 66 66 222

Egg Mayo Sandwiches 20 66 66 66 218

Actual Sales

Week 1 Week 2 Week 3 Week 4 Total

Mackerel Sandwiches 20 33 33 33 119

Chicken and Cheese

Sandwiches

24 34 34 34 126

Egg Mayo Sandwiches 20 33 33 33 119

As we are selling sandwiches, we need to buy the food supplies at most every week to

avoid the foods from spoil especially for bread, cheese, chicken ham and eggs. The changes

and differences in the price occurred because we chose the cheapest price of the items needed

~ 4 ~

which are available at that time. Besides, the changes in the quantity bought are due to the

changes in the quantity of actual sales from the budgeted sales. The table below shows the

changes made in price and quantity of direct materials needed:

COST PRICE PER UNIT

(RM)

QUANTITY TOTAL

COST (RM)

TYPE OF

COST

Bread 3.35

2.80

2.65

2.40

3

12

5

1

10.05

33.60

13.25

2.40

Variable

59.30

Mackerel 11.39 2 22.78 Variable

Cheese Slices 5.99 7 41.93 Variable

Chicken Ham 3.79 9 34.11 Variable

Mayonnaise 8.29

0.99

2.99

1

2

1

8.29

1.98

2.99

Variable

13.26

Eggs 5.39

4.29

1

1

5.39

4.29

Variable

9.68

Margarine 4.69

4.99

1

1

4.69

4.99

Variable

9.68

Plastics 7.49 1 7.49 Variable

~ 5 ~

Direct Labor 0.5 Per Hour 11.00 Variable

Rent 17.10 Per Month 17.10 Fixed

Transportation 10 Per Week 40.00 Fixed

Advertisement 2.00 Per Month 2.00 Fixed

The changes in the price and quantity of direct materials caused changed in the variable and

fixed cost per unit which are shown below:

Variable Cost Per Unit

Item Types of Sandwiches

Mackerel (RM) Chicken and Cheese (RM) Egg Mayo (RM)

Bread 0.16 0.16 0.16

Mackerel 0.19 - -

Cheese Slices - 0.33 -

Chicken Ham - 0.27 -

Eggs - - 0.08

Mayonnaise 0.06 - 0.06

Margarine 0.04 - 0.04

Plastics 0.02 0.02 0.02

Direct Labor 0.03 0.03 0.03

Total Variable Cost

Per Unit

0.50 0.81 0.39

~ 6 ~

Fixed Cost Per Unit

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

Rent 17.10 Per Month 17.10

RM59.10

364= RM0.16

Transportation 10 Per Week 40.00

Advertisement 2.00 Per Month 2.00

59.10

1.2 PRICING ANALYSIS

Some changes also made in term of the pricing analysis which are shown below:

Price = Total Cost + (Markup Percentage × Total Cost)

a) Mackerel Sandwiches

Total Cost Per Unit of Production (RM) 0.50 + 0.16 = 0.66

Markup Percentage (%) 81.82

Targeted Profit Per Unit (RM) 0.54

Selling Price Per Unit (RM) 1.20

b) Chicken and Cheese Sandwiches


Percentage of Targeted Profit (%) 54.64



~ 7 ~

c) Egg Mayo Sandwiches


Percentage of Targeted Profit (%) 118.18



1.3 MASTER BUDGET

There are several changes made in the master budget which are in sales budget, production

budget, direct material budget, production overhead budget, selling and administrative

budget, cash receipt budget, cash disbursement budget and cash budget. Meanwhile, direct

labor budget remains the same. The schedules below show the comparison between the

budgeted master budgets and the actual master budgets:

~ 8 ~

1.3.1 SALES BUDGET

We Chef Partnership

Sales Budget for the Month Ending 30th November 2014 (Budgeted)

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

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

20

×RM1.20

66

×RM1.20

66

×RM1.20

66

×RM1.20

218

×RM 1.20

~ 9 ~

Revenue RM24.00 RM79.20 RM79.20 RM79.20

RM261.60

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

We Chef Partnership

Sales Revenue for the Month Ending 30th November 2014 (Actual)

Weeks Month

1 2 3 4

Mackerel

Sandwiches Revenue


Selling Price

Mackerel Sandwiches

Sales Revenue

20

× RM1.20

RM24.00

33

×RM1.20

RM39.60

33

×RM1.20

RM39.60

33

×RM1.20

RM39.60

119

×RM1.20

RM142.80

Chicken and Cheese

Sandwiches Revenue


Selling Price

Chicken Cheese

Sandwiches Sales

Revenue

24

×RM1.50

RM36.00

34

×RM1.50

RM51.00

34

×RM1.50

RM51.00

34

×RM1.50

RM51.00

126

× RM1.50

RM189.00

~ 10 ~

Egg Mayo

Sandwiches


Selling Price

Egg Mayo Sales

Revenue

20

×RM1.20

RM24.00

33

×RM1.20

RM39.60

33

×RM1.20

RM39.60

33

×RM1.20

RM39.60

119

×RM 1.20

RM142.80

Total Sales Revenue RM84.00 RM130.20 RM130.20 RM130.20 RM474.60

Based on the actual schedule, the total sales revenue for Week 1 is RM84.

Meanwhile, the total sales revenue for Week 2 until Week 4 is RM130.20 respectively. Thus,

the actual total sales revenue for month ending 30th November 2014 is RM474.60. The

differences in the sales revenue between the budgeted sales budget and actual sales budget is

due to the changes in the quantities of sandwiches produced which are actually 364 units for

the whole month and not 664 units as budgeted.

1.3.2 PRODUCTION BUDGET

We Chef Partnership

Production Budget for the Month Ending 30th November 2014 (Budgeted)

Weeks Month

1 2 3 4

Mackerel

Sandwiches Revenue

Sales (units)

Add: Desired Ending

Inventory

20

0

68

0

68

0

68

0

224

0

~ 11 ~

Total Needed

Less: Beginning

Inventory

Units to be Produced

20

0

20

68

0

68

68

0

68

68

0

68

224

0

224

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

~ 12 ~

Total Units to be

Produced

64

200

200

200

664

We Chef Partnership

Production Budget for the Month Ending 30th November 2014 (Actual)

Weeks Month

1 2 3 4

Mackerel

Sandwiches Revenue

Sales (units)

Add: Desired Ending

Inventory

Total Needed

Less: Beginning

Inventory


20

0

20

0

20

33

0

33

0

33

33

0

33

0

33

33

0

33

0

33

119

0

119

0

119

~ 13 ~

Chicken and Cheese

Sandwiches Revenue

Sales (units)

Add: Desired Ending

Inventory

Total Needed

Less: Beginning

Inventory


24

0

24

0

24

34

0

34

0

34

34

0

34

0

34

34

0

34

0

34

126

0

126

0

126

Egg Mayo

Sandwiches

Sales (units)

Add: Desired Ending

Inventory

Total Needed

Less: Beginning

Inventory


20

0

20

0

20

33

0

33

0

33

33

0

33

0

33

33

0

33

0

33

119

0

119

0

119

Total Units to be

Produced

64

100

100

100

364

There are several changes made in the amount of sandwiches produced from the

budgeted production in the actual production. For Week 1, we produced 20 units of Mackerel

~ 14 ~

Sandwiches and Egg Mayo Sandwiches respectively and 24 units of Chicken Cheese

Sandwiches. This made a total of 64 units of sandwiches produced for Week 1 as planned.

But, for Week 2 until Week 4, we reduce the quantities from 200 units as budgeted before to

only 100 units per week. The amount of sandwiches produced per week consists of 33 units

of Mackerel Sandwiches and Egg Mayo Sandwiches respectively and 34 units of Chicken

and Cheese Sandwiches. There is no beginning or ending inventory as the sandwiches will

spoil. In conclusion, the total units produced for the month ending 30 th November 2014 are

364 units of sandwiches.

1.3.3 DIRECT MATERIAL BUDGET

We Chef Partnership

Direct-MaterialBudget (in units) for the Month Ending 30th November 2014 (budgeted)

Raw Materials

Bread

(Pack)

Mackerel

(Can)

Margarine

(Pack)

Cheese

Slices

(Pack)

Chicke

n Ham

(Pack)

Eggs

(Pack)

Mayonnaise

(Pack)

Plastics

(Pack)

Week 1

(64 units to be

produced)

Week 2

(200 units to be

produced)

Week 3

3

9

2

4

1

-

1

3

2

6

1

2

1

-

1

2

~ 15 ~

(200 units to be

produced)

Week 4

(200 units to be

produced)

9

9

4

4

-

-

3

3

6

6

2

1

-

-

2

2

Production

Requirements

Add : Desired

Ending

Inventory

30

0

14

0

1

0

10

0

20

0

6

0

1

0

7

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

~ 16 ~

We Chef Partnership

Direct-Material Budget (in units) for the Month Ending 30th November 2014 (Actual)

Raw Materials

Bread

(Pack)

Mackerel

(Pack)

Margarine

(Pack)

Cheese

Slices

(Pack)

Chicke

n Ham

(Pack)

Eggs

(Pack)

Mayonnaise

(Pack)

Plastics

(Pack)

Week 1

(64 units to be

produced)

Week 2

(100 units to be

produced)

Week 3

(100 units to be

produced)

Week 4

(100 units to be

produced)

3

6

6

6

1

-

1

-

1

-

-

1

1

2

2

2

2

2

2

3

1

-

1

-

1

-

-

3

1

-

-

-

Production

Requirements

Add : Desired

Ending

21

2

2

7

9

6

4

1

~ 17 ~

Inventory 0 0 0 0 0 0 0 0

Total

Requirements

Deduct :

Expected

Beginning

Inventory

21

0

2

0

2

0

7

0

9

0

6

0

4

0

1

0

Production

Requirements

(units)

21

2

2

7

9

6

4

1

As shown in the schedule, the actual total production requirements for the month are

21 packs of bread, 2 packs of mackerel which consists of two cans of mackerel each, two

packs of 1kg of margarine, 7 packs of cheese slices, 9 packs of chicken ham. Besides, we also

need 2 packs of eggs which consist of 10 eggs per pack, one pack of 1 litre of mayonnaise, 2

packs of 50ml mayonnaises and 1 pack of 250ml of mayonnaise. Plus, we also bought 1 pack

of plastics which contain 400 pieces of plastics.

We Chef Partnership

Direct-Material Budget for the Month Ending 30th November 2014 (budgeted)

Anticipated

Price (RM)

Weeks Month

(RM) 1 2 3 4

~ 18 ~

Bread 3.40 3×RM3.40

=RM10.20

9×RM3.40

=RM30.60

9×RM3.40

=RM30.60

9×RM3.40

=RM30.60

102.00

Mackerel 5.70 2×RM5.70

=RM11.40

4×RM5.70

=RM22.80

4×RM5.70

=RM22.80

4×RM5.70

=RM22.80

79.80

Margarine 4.70 1×RM4.70

=RM4.70

- - -

4.70

Cheese

Slices

6.00 1×RM6.00

=RM6.00

3×RM6.00

=RM18.00

3×RM6.00

=RM18.00

3×RM6.00

=RM18.00

60.00

Chicken

Ham

3.80 2×RM3.80

=RM7.60

6×RM3.80

=RM22.80

6×RM3.80

=RM22.80

6×RM3.80

=RM22.80

76.00

Egg 5.40 1×RM5.40

=RM5.40

2×RM5.40

=RM10.80

2×RM5.40

=RM10.80

1×RM5.40

=RM5.40

32.40

Mayonnaise 8.30 1×RM8.30

=RM8.30

- - -

8.30

Plastics 7.50 1×RM7.50

=RM7.50

2×RM7.50

=RM15

2×RM7.50

=RM15

2×RM7.50

=RM15

52.50

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

~ 19 ~

We Chef Partnership

Direct-Material Budget for the Month Ending 30th November 2014 (Actual)

Weeks Month

(RM) 1 2 3 4

Bread 3×RM3.35

=RM10.05

6×RM2.80

=RM16.80

5×RM2.65

=RM13.25

1×RM2.40

=RM2.40

6×RM2.80

=RM16.80

59.30

Mackerel RM11.39 0 RM11.39 0 22.78

Margarine RM4.69 0 0 RM4.99 9.68

Cheese Slices RM5.99

RM5.99

3×RM5.99

=RM17.97

2×RM5.99

=RM11.98

41.93

Chicken Ham 2×RM3.79

=RM7.58

2×RM3.79

=RM7.58

3×RM3.79

=RM11.37

2×RM3.79

=RM7.58

34.11

Egg RM5.39

0 RM4.29 0 9.68

Mayonnaise RM8.29 0 0 2×RM0.99

=RM1.98

1×RM2.99

=RM2.99

13.26

Plastics RM7.49 0 0 0 7.49

Total RM60.87 RM30.37 RM60.67 RM46.32 198.23

~ 20 ~

1.3.4 PRODUCTION OVERHEAD BUDGET

We Chef Partnership

Production Overhead Budget for Month Ended 30th November 2014 (Budgeted)

Week 1 Week 2 Week 3 Week 4 Month

Indirect Labor

Rent

RM20

1

RM20

1

RM20

1

RM20

1

RM80

4

RM21 RM21 RM21 RM21 RM84

We Chef Partnership

Production Overhead Budget for Month Ended 30th November 2014 (Actual)


Rent - - - RM17.10 RM17.10

0 0 0 RM17.10 RM17.10

At We Chef, the actual production overhead cost includes only rent as compared to

the budgeted production overhead cost which includes indirect labor. This is because, after

discussing with the group members, we decided to cut the indirect labor cost due to budget

constraint. Meanwhile, the cost for rent refers to the rent paid for the fridge used to keep the

cheese slices, chicken ham and eggs in the refrigerator at the ‘Business Room’ and also the

cost of microwave used. The cost of the rent per month is RM17.10 which is paid at Week 4.

~ 21 ~

1.3.5 SELLING AND ADMINISTRATIVE BUDGET

We Chef Partnership

Selling and Administrative Budget for the Month Ending 30th November 2014 (Budgeted)


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

We Chef Partnership

Selling and Administrative Budget For the Month Ending 30th November 2014 (Actual)


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

~ 22 ~

Total expense RM12 RM10 RM10 RM10 RM42

Cash disbursements RM12 RM10 RM10 RM10 RM42

At We Chef, only fixed selling and administrative expenses incurred which are the

transportation and advertising costs. The advertising expense which is amounting to RM2

incurs only on Week 1 while the transportation expenses incurs every week from Week 1

until Week 4 which is RM10 for each week. Thus, for Week 1, the total selling and

administrative expenses is RM12 while for Week 2 until Week 4, the total selling and

administrative expense is RM10 per week. The total selling and administrative expenses for

the month ending 30th November 2014 is RM42. The only difference between the budgeted

and actual selling and administrative budget is in term of the sales in units which are actually

364 units in total as compared to the budgeted sales units which is 664 units.

1.3.6 CASH RECEIPT BUDGET

We Chef Partnership

Cash Receipt Budget for the Month Ending 30th November 2014 (Budgeted)

Weeks Month

1 2 3 4

Week 1 Sales Revenue:

Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches


RM24.00

36.00

24.00

RM24.00

36.00

24.00

~ 23 ~

Mackerel Sandwiches

Chicken and

CheeseSandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches

RM81.60

99.00

79.20

RM 81.60

99.00

79.20

RM81.60

99.00

79.20

81.60

99.00

79.20

81.60

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

We Chef Partnership

Cash Receipt Budget for the Month Ending 30th November 2014 (Actual)

Weeks Month

1 2 3 4


Mackerel Sandwiches

Chicken and Cheese

RM24.00

RM24.00

~ 24 ~

Sandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and

CheeseSandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches


Mackerel Sandwiches

Chicken and Cheese

Sandwiches

Egg Mayo Sandwiches

36.00

24.00

RM39.60

51.00

39.60

RM 39.60

51.00

39.60

RM39.60

51.00

39.60

36.00

24.00

39.60

51.00

39.60

39.60

51.00

39.60

81.60

51.00

39.60

Total Cash Receipts (RM) RM84.00 RM130.20 RM130.20 RM130.20 RM 474.60

At We Chef, all sales are on cash. 100% of sales are collected in the week and month

of sales. All customers paid during the week and month of sales.

Based on the schedule, the total cash receipt for Week 1 is the same as the budgeted cash

receipts which is RM84. Meanwhile, the total cash receipts for Week 2 until Week 4 is

RM130.20 for each week which differs from the budgeted cash receipts which is RM259.80.

~ 25 ~

Thus, the actual total cash receipts for the month ending 30th November 2014 is RM474.60

which is also different by RM388.80 from the budgeted cash receipts that is RM863.40.

1.3.7 CASH DISBURSEMENT BUDGET

We Chef Partnership

Cash Disbursement Budget for the Month Ending 30th November 2014 (Budgeted)

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

Total Cash Disbursement

for Direct Material

Purchases

RM61.10

RM120

RM120

RM114.60

RM415.70

Other Cash Disbursement

Direct Labor

Production Overhead

RM 2.00

21.00

RM 3.00

21.00

RM 3.00

21.00

RM3.00

21.00

RM 11.00

84.00

~ 26 ~

Selling and

Administrative

12.00

10.00

10.00

10.00

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

We Chef Partnership

Cash Disbursement Budget for the Month Ending 30th November 2014 (Actual)

Weeks Month

1 2 3 4

Payment for Direct Material

Purchases:

Bread

Mackerel

Margarine

Cheese Slices

Chicken Ham

Eggs

Mayonnaise

Plastics

RM10.05

11.39

4.69

5.99

7.58

5.39

8.29

7.49

RM16.80

0

0

5.99

7.58

0

0

0

RM15.65

11.39

-

17.97

11.37

4.29

0

0

RM16.80

0

4.99

11.98

7.58

0

4.97

0

RM59.30

22.78

9.68

41.93

34.11

9.68

13.26

7.49

Total Cash Disbursement

for Direct Material

Purchases

RM60.87

RM30.37

RM60.67

RM46.32

RM198.23

~ 27 ~

Other Cash Disbursement

Direct Labor

Production Overhead

Selling and

Administrative

RM 2.00

0

12.00

RM 3.00

0

10.00

RM 3.00

0

10.00

RM3.00

17.10

10.00

RM 11.00

17.10

42.00

Total Other Cash

Disbursement

RM14.00

RM13.00

RM13.00

RM30.10

RM70.10

Total Cash Disbursements RM74.87 RM43.37 RM73.67 RM76.42 RM268.33

The budgeted cash disbursement budget for We Chef includes the cost for direct

materials, direct labors, production overhead and selling and administrative expenses. The

cash disbursement for Week 1 is RM96.10. Meanwhile, for Week 2 and Week 3, the cash

disbursement is RM154 respectively. For Week 4, the cash disbursement will amount to

RM148.60. Thus, the total cash disbursement for month ending 30th November 2014 is

expected to be RM552.70.

Meanwhile, the actual cash disbursement budget shows different outcomes. The total

cash disbursement for Week 1 is RM74.87 while for Week 2 it decreases to RM43.37. During

Week 3, it increases to RM73.47 and finally in Week 4 it increases slightly to RM76.42.

Thus, the actual total cash disbursement for month ending 30th November 2014 is RM268.33.

~ 28 ~

1.3.8 CASH BUDGET

We Chef Partnership

Cash Budget for the Month Ending 30th November 2014 (Budgeted)


Beginning cash

balance

RM 100

84

RM87.90

259.80

RM193.70

259.80

RM299.50

259.80

RM100

863.40

Add: Cash

Collection

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

We Chef Partnership

Cash Budget for the Month Ending 30th November 2014 (Actual)


Beginning cash

balance

RM 120

84

RM129.13

130.20

RM215.96

130.20

RM272.49

130.20

RM120

474.60

Add: Cash

Collection

~ 29 ~

Total Cash

Available

Less: Cash

Disbursements

RM204.00

(74.87)

RM259.33

(43.37)

RM346.16

(73.67)

RM402.69

(76.42)

RM594.60

(268.33)

Cash Available over

Disbursements

RM129.13

RM215.96

RM272.49

RM326.27

RM326.27

Based on the budgeted cash schedule, the cash available over disbursement for Week

1 is expected to be RM87.90 while for Week 2 it is expected to be RM193.70. For Week 3,

the cash available will increase to RM299.50 and continue increasing to RM410.70 in Week

4. Thus, for the month ending 30th November 2014, the total cash available over

disbursements would amount to RM410.70.

However, changes occur in the actual cash budget. Our capital is increased to RM120

due to an addition of a member in the business. The cash available over disbursement for

Week 1 is RM129.13 and the cash available over disbursement for Week 2 is RM215.96.

Meanwhile, for Week 3, the cash available over disbursement is RM272.49 and finally for

Week 4, the cash available over disbursement is RM326.27.Thus, for the month ending 30th

November 2014, the total cash available over disbursements would amount to RM326.27.

1.3 CVP ANALYSIS

1.3.1 CVP ANALYSIS WITH MULTIPLE PRODUCTS

Description Selling

Price

(RM)

Unit Variable

Cost

(RM)

Unit

Contribution

Margin (RM)

Units

Produced

~ 30 ~

Mackerel Sandwiches 1.20 0.50 0.70 119

Chicken and Cheese Sandwiches 1.50 0.81

0.69 126

Egg Mayo Sandwiches 1.20 0.39 0.81 119

364

Description Units Produced Percentage of Total (%)

Mackerel Sandwiches 119 32.69

Chicken and Cheese

Sandwiches

126 34.62

Egg Mayo Sandwiches 119 32.69

Total 364 100

1.3.2 WEIGHTED-AVERAGE UNIT CONTRIBUTION MARGIN

Description Contribution Margin

(RM)

Percentage of Total

(%)

Weighted

Contribution (RM)

Mackerel

Sandwiches

0.70 32.69 0.23

Chicken and Cheese

Sandwiches

0.69 34.62 0.24

Egg Mayo

Sandwiches

0.81 32.69 0.26

Weighted-average contribution margin 0.73

~ 31 ~

1.3.3 BREAK-EVEN ANALYSIS

Break-even point

= Fixed Expenses

Weighted−average Contribution Margin

= RM 59.10

RM0.73

= 80.96

≈ 81 combined units of sales

Description Breakeven Sales

(units)

Percentage of

Total (%)

Individual

Sales

(units)

Individual

Sales (RM)

Mackerel Sandwiches 81 32.69 26.48

≈ 27

32.40

Chicken and Cheese

Sandwiches

81 34.62 28.04

≈ 28

42.00

Egg Mayo Sandwiches 81 32.69 26.48

≈ 26

31.20

Total 81 units RM105.60

~ 32 ~

Based on the CVP analysis, in order to break-even, We Chef Enterprise must sell 81

units of sandwiches in one month. The individual sales are 27 units of Mackerel Sandwiches,

28 units of Chicken and Cheese Sandwiches and 26 units of Egg Mayo Sandwiches.

Meanwhile, the break-even sales in price will be a total of RM105.60 which is RM32.40 for

Mackerel Sandwiches, RM42.00 for Egg Mayo Sandwiches and RM31.20 for Chicken and

Cheese Sandwiches respectively.

2.0 COMPARATIVE STATEMENT OF COMPREHENSIVE INCOME AND

STATEMENT OF FINANCIAL POSITION

2.1 STATEMENT OF COMPREHENSIVE INCOME

We Chef Partnership

Statement of Comprehensive Income for the Month Ending 30th November 2014 (Budgeted)

Sales revenue

RM863.40

Cost of goods sold:

~ 33 ~

Cost of purchases

Direct labor costs

Production overhead costs

Total cost of goods sold

RM415.70

11.00

84.00

(510.70)

Gross margin

RM352.70

42.00

Other income and expenses:

Selling and administrative

Expenses

Net Income RM310.70

We Chef Partnership

Statement of Comprehensive Income for the Month Ending 30th November 2014 (Actual)

Sales revenue

RM198.23

11.00

17.10

RM474.60

(226.33)

Cost of goods sold:

Cost of purchases

Direct labor costs

Production overhead costs

Total cost of goods sold

Gross margin

RM248.27

42.00

Other income and expenses:

Selling and administrative

Expenses

Net Income RM206.27

~ 34 ~

2.2 STATEMENT OF FINANCIAL POSITION

We Chef Partnership

Statement of Financial Position as at 30th November 2014 (Budgeted)

ASSET

Cash

RM

410.70

RM

410.70

OWNER’S EQUITY

Capital

Net Income

100.00

310.70

410.70

We Chef Partnership

Statement of Financial Position as at 30th November 2014 (Actual)

ASSET

Cash

RM

326.27

RM

326.27

OWNER’S EQUITY

Capital

Net Income

120.00

206.27

326.27

~ 35 ~

3.0 MANAGEMENT REPORT

WE CHEF Partnership has been operationed successfully throughout the whole month of

November. The business which were begun with RM 100 as a modal and got back of RM

474.60 at the end of the month. This is considered as a big success to us since we are newbies

in the business area. The feedback that we got from the customers also positive. Most of the

customers said that our sandwiches are tasty and some are repeating their orders. Since we

also collected and delivered the orders while selling the sandwiches on door-to-door basis,

the responds given by the students are pepped and we got a lot of orders from them.

A lot of things happened throughout the four weeks including having some difficulties in

conducting our business on door-to-door basis since we are lack of labor force to cover all of

the rooms in the mahallah. And apart from those dificulties and problems, we also gained and

learned a lot of things as stated below:

1. Each of team members gain the experience of starting and managing a business.

2. Every team members gave their commitments and cooperation in operating the

business starting from buying the raw materials, making the sandwiches, taking

orders and selling the products. Everybody depends on each other to operate the

business smoothly.

3. When there was a problem, the most important thing to do is keep calm. Do not

get panic so that we can identify the problems and sit together with the team

members to find the suitable solution.

There are some recommendations that can be done in the future to ensure the profit

maximization for the successfullness of the:

~ 36 ~

1. Produce more sandwiches so that the business can cover all of the orders made by

the customers.

2. Sell the sandwiches by taking and delivering orders instead of selling them on

door-to-door basis.

3. Sell the sandwiches during weekdays instead of during weekends since most of

the students go back to their home on weekends.

4. Divide the team members to two divisions which are the production division and

marketing and selling divisions. The production divisions take care of making the

sandwiches while the marketing and selling division promote and take orders from

the students.

In conclusion, WE CHEF Partnership is a big success for newbies level in business. We

gained and learned so many things in the process of managing the business. We hope this

business can grow further in the future and be the leading food business that is specialize in

making sandwiches in International Islamic University Malaysia.

~ 37 ~

4.0 APPENDIX

~ 38 ~

~ 39 ~

~ 40 ~