ACCOUNTING FOR
MANAGERS
CASE STUDY 2 -
ICE COFFEE MILK
1221402977 - ANDRIO
1231400056 - ASMA SHAHABI
1221400667 - MILAD AKBARI
1211404369 - PHILIPS
1221401070 - PRAVEEN
Lecturer - Dr.Mariati Binti Norhashim
PRODUCT PLANNING
Coffee is a popular beverage enjoyed by
millions of people worldwide. Coffee
comes from the seeds of berries
produced by the Coffea plant. The two
most commercially important species
are Coffea arabica and Coffea
canephora. Coffee is grown in various
regions around the world, often in
tropical climates. Major coffee producing
countries include Brazil, Vietnam,
Colombia, Ethiopia, and Honduras.
PRODUCT PLANNING
Coffee is one of the most popular beverages
globally, and there is a consistent demand
for it. Many people rely on coffee to kick
start their day.
It is a consumable product, meaning
customers often return for more. If
customers enjoy the coffee and the overall
experience, they are likely to become repeat
customers.
While the cost of coffee beans and other
ingredients may vary, the profit margins in
the coffee business can be substantial.
Upselling specialty drinks, snacks, or
merchandise can also contribute to overall
revenue.
Direct Raw Materials Cost
Raw Materials Qty Price (RM) Qty /mg Price /mg
Espresso 50;50
1L 1ltr 30 1000 0.03
UHT Milk 1ltr 6 1000 0.0055
Creamer 500ml 8 500 0.0162
Ice Cube 2kg 8 2000 0.00375
Palm Sugar 1kg 9 1000 0.009
Total 90 5500 0.06445
Selling Price and Margin
Cost Total cost
Product Raw Material Miligram (RM) (RM) Selling (RM) Margin (RM)
Ais Coffee milk with palm
sugar Ice Cube 100 0.00375 0.375
Palm Sugar 20 0.009 0.18
Creamer 22 0.0162 0.3564
UHT Milk 80 0.0055 0.44
Espresso
50:50 30 0.03 0.9
Total 252 2.2514 10 7.7486
Capital expenditure
Particular Qty Cost (RM) Total (RM)
Bar Equipment:
Manual Brew Cup 2 2.5 5
Coffee Cup 660 1.5 990
Spoon & Scoop 4 0.5 2
Fridge 1 750 750
Total 1747
Direct Labour Cost
Particular Qty Cost (RM) Total (RM)
Barista 2 500 1000
Electricity 1 100 100
Cleaner 1 25 25
Garbage 1 25 25
Wifi 1 90 90
Total 1240
Product Costing
Product Costing Per item
Appox qty 660
Direct Materials 1485
Variable Overhead 0
Fixed Overhead 1240
Total Cost 2725
Cost per unit 4.12
Selling and administrative
Cost
Particular Qty Cost (RM) Total (RM)
20% of 1
E-Hailing Food 1 item 2
CVP Analysis
CVP Analysis
Total Fixed Cost 1242
Price 10
Variable cost per piece 4.12
Contribution Margin 5.88
Break even point 211
Target net income 6600
Quantity to sell 660
OPERATIONAL BUDGET
Sales Budget
For the quarter ended Dec 31, 2023
Q1 Q2 Q3 Q4 Year
Expected unit sales 660 660 660 660 2640
Unit selling price 10 10 10 10 10
Total Sales 6600 6600 6600 6600 26400
Direct Materials budget
For the quarter ended Dec 31, 2023
Q1 Q2 Q3 Q4 Total
Unit Produced 660 660 660 660
Direct Material /unit 5 5 5 5
Cost Production 660 660 660 660
Material Required 660 660 660 660
Direct Material Purchased 660 660 660 660
Cost Price 2.25 2.25 2.25 2.25
Total Cost 1485 1485 1485 1485 5940
Overhead Budget
For the quarter ended Dec 31, 2023
Category Q1 Q2 Q3 Q4 Year
Fixed
Barista 1000 1000 1000 1000 4000
Electricity 100 100 100 100 400
Cleaner 25 25 25 25 100
Garbage 25 25 25 25 100
Wifi 90 90 90 90 360
Total 1240 1240 1240 1240 4960
Selling and administrative budget
For the quarter ended Dec 31, 2023
Q1 Q2 Q4 Q4 Total
Budget sales in units 660 660 660 660 2640
Variable cost per year
Delivery through grab (2rm/piece) 330 330 330 330 1320
Fixed Cost per year
Barista 1000 1000 1000 1000
Electricity 100 100 100 100
Cleaner 25 25 25 25
Garbage 25 25 25 25
Wifi 90 90 90 90
Total Fixed Cost 1240 1240 1240 1240 4960
Total Selling and administrative budget 1570 1570 1570 1570 6280
Statement of profit or loss
For the quarter ended Dec 31, 2023
Q1 Q2 Q3 Q4 Total
Sales revenue 6600 6600 6600 6600 26400
Cost of goods sold 2725 2725 2725 2725
Gross profit 3875 3875 3875 3875 15500
Selling and administrative cost 330 330 330 330
Earings before interest and taxes 3545 3545 3545 3545 14180
Income taxes 6% 212 212 212 212
Net profit 3333 3333 3333 3333 13332
FINANCIAL BUDGET
Cash budget for the quarter ended Dec 31, 2023
Q1 Q2 Q3 Q4 Year
Sales Revenue 6600 6600 6600 6600 26400
Total Cash Receipt 6600 6600 6600 6600 26400
Payment to Supplier 1485 1485 1485 1485 5940
Overhead Expenses 1240 1240 1240 1240
Selling & Administrative Cost 330 330 330 330
Capital Expenditure 1747 0 0 0 1747
Total Expenses 212 212 212 212
Total Cash Payment 5014 3267 3267 3267 14815
Net Cash Flow 1586 3333 3333 3333 1586
Opening Balance 10000 8414 11747 15080 10000
Closing Balalance 8414 11747 15080 18413 18413
Capital expenditure budget
For the quarter ended Dec 31, 2023
Q1 Q2 Q3 Q4 Year
Manual Brew Cup 5 5
Coffee Cup 990 990 990 990 3960
Spoon & Scoop 2 2
Fridge 750 750
Total 4717
THANK YOU
