Assignment for student who took Management Accounting Fundamental subject (ACC1511) in Semester 1 2014/2015 at IIUM.

1. MANAGEMENT ACCOUNTING FUNDAMENTAL
(ACC 1511)
TOPIC: BUSINESS PROPOSAL
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
NUUR NAJIHAH BT RIDZUAN 1320444
RUZANA BT SUHAIMI 1322836
Lecturer’s Name:Dr.NurBarizah Abu Bakar
Section : 2
Session : Semester 1(14/15)

2. - 2 -
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

3. - 3 -
5.1 CLASSIFICATION OF PRODUCT COST
5.1.2 VARIABLE COST PER UNIT
5.1.3 FIX COST PER MONTH
5.2 PRICING ANALYSIS
5.3 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

4. - 4 -
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 chef’s
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

5. - 5 -
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

6. - 6 -
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 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

7. - 7 -
 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.

8. - 8 -
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

9. - 9 -
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 Mahallah’s 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

10. - 10 -
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 Asiah
Mahallah Aminah
Mahallah Safiyyah
Others

11. - 11 -
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.
 Hostel’s 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.

12. - 12 -
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.

13. - 13 -
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:

14. - 14 -
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.

15. - 15 -
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

16. - 16 -
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

17. - 17 -
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

18. - 18 -
Rent 1.00 Per Week 4.00
RM126
664
= RM0.19
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

19. - 19 -
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 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

20. - 20 -
Chicken and Cheese
Sandwiches Revenue
Budgeted Sales(units)
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
Budgeted Sales(units)
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

21. - 21 -
5.3.2 PRODUCTION BUDGET
We Chef Partnership
Production Budget
For the Month Ending 30th November 2014
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

22. - 22 -
Chicken and Cheese
Sandwiches Revenue
Sales (units)
Add: Desired Ending
Inventory
Total Needed
Less: Beginning
Inventory
Units to be Produced
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
Units to be Produced
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

23. - 23 -
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
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

24. - 24 -
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

25. - 25 -
We Chef Partnership
Direct-Material Budget
For the Month Ending 30th November 2014
Anticipated
Price (RM)
Weeks Month
(RM)1 2 3 4
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

26. - 26 -
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
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

27. - 27 -
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
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 30th November 2014
Week 1 Week 2 Week 3 Week 4 Month
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

28. - 28 -
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 Month
1 2 3 4
Week 1 Sales Revenue:
Mackerel Sandwiches
Chicken and Cheese
Sandwiches
Egg Mayo Sandwiches
Week 2 Sales Revenue:
Mackerel Sandwiches
Chicken and
CheeseSandwiches
Egg Mayo Sandwiches
Week 3 Sales Revenue:
Mackerel Sandwiches
Chicken and Cheese
Sandwiches
Egg Mayo Sandwiches
Week 4 Sales Revenue:
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

29. - 29 -
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
For the Month Ending 30th November 2014
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

30. - 30 -
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
For the Month Ending 30th November 2014
Week 1 Week 2 Week 3 Week 4 Month
Beginning cash
balance RM 100
84
RM87.90
259.80
RM193.70
259.80
RM299.50
259.80
RM100
863.40
Add: Cash
Collection

31. - 31 -
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
For the Month Ending 30th November 2014
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

32. - 32 -
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

33. - 33 -
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
=
Fixed Expenses
Weighted−average Contribution Margin
=
RM 126.00
RM0.65
= 193.85
≈ 194 combined units of sales

34. - 34 -
Description Breakeven Sales
(units)
Percentage of
Total (%)
Individual
Sales
(units)
Individual
Sales (RM)
Mackerel Sandwiches 194 33.74 65.46
≈ 65
78.00
Chicken and Cheese
Sandwiches
194 33.43 64.85
≈ 65
97.50
Egg Mayo Sandwiches 194 32.83 63.69
≈ 64
76.80
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.

35. - 35 -
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.

36. - 36 -
APPENDIX