Report Title: Identifying Costs for Making Nutro Vita,

Performing CVP Analysis, and Preparing Master Budget.

Course & Section: ACT202.3 (Introduction to Managerial

Accounting)

Submitted To:
Bushra Ferdous Khan (BFK)
Instructor: ACT202.3
Department of Accounting & Finance,NSU.

Submitted By:

Name ID Email ID
Zahid Hassan 1712156030 zahidrifat1971@gmail.com
S.M. Mehedi Hasan 1712383630 mehedisrkr@gmail.com
Mir Nahian 1712619630 mir.nahian@northsouth.edu
Nayeemur Rahman 1721689030 nayeemur.rahman14@gmail.com
Rashik Hasan 1811666030 rashikhasan8@gmail.com
Contents
Executive Summary.........................................................................................................................1
1. Introduction..................................................................................................................................2
2. Production Process.......................................................................................................................3
3. Cost Identification for the Business.............................................................................................5
4. Calculating Manufacturing Cost per Unit....................................................................................6
5. Determining the Unit Selling Price..............................................................................................7
6. Cost-Volume-Profit (CVP) Analysis...........................................................................................7
7. Master Budget..............................................................................................................................9
7.1 Sales Budget:.........................................................................................................................9
7.2 Production Budget:................................................................................................................9
7.3 Direct Materials Budget.......................................................................................................10
7.4 Direct Labor Budget............................................................................................................13
7.5 Manufacturing Overhead Budget........................................................................................14
7.6 Selling and Administrative Expense Budget.......................................................................15
7.7 Cash Budget.........................................................................................................................16
7.8 Forecasted Income Statement..............................................................................................17
7.9 Forecasted Balance Sheet....................................................................................................17
8. Conclusion.................................................................................................................................18
References......................................................................................................................................18
 Executive Summary

This report is based on the Nutro Vita Company. In this report, we try to find out the costs of
making Nutro Vita, performing CVP analysis and preparing the main budget and other details.
NutroVita manufactures, produces, markets, and distributes malt drink to a huge target. Our
products are all-natural and healthy alternative none/caffeine drinks, as opposed to those with
high sugars and additives. The company make money by selling and promoting their products like
Complan, Horlicks and Boost. We plan to be a success by encouraging an affordable, respectable
brand to earn your trust and will strive to make your experiences with our product pleasant. We
specialize in providing healthy and revitalizing drinks with an increase live of vitamins and
minerals. We decide to achieve this by delivering quality, embracing and driving change, being
daring, creative, and liberal, pursuing growth and learning with a wholesome spirit, being
passionate and determined and remaining humble.
We wish to present NutroVita new marketing strategic plan that consist of SWOT,
PLESTECH and new strategic analysis. This is to create a new positioning market for
NutroVita and to enhance the new marketing strategic for the product. Our main focus
containing the 4P’s. This is to have more understanding on our products future position. Due
to strong competition market from other big names, the purpose of this report is to aim to
reinforce the product life cycle and to maintain the profit of the product. Not only that, we
intend to widen Nutrovita market segmentation and to produce a quality of strategies .
In order to boost Nutrovita sales, we will be focusing on the publicity and promotion s to
create brand awareness among consumers. Not only that, we will be introducing our product
warranty to consumer. With such marketing planning, consumer can look forward
for better product and services from us.

We will have our headquarters located in the CBD of the city, Mothijheel from where we will
look out or base of operations and foresee our operational future. Our factories will be on the
outskirts of the city but mainly out of the capital from where we will transport the goods to
department stores. Our company’s manager will have the right set of skills to make proper
judgment and decision when our sales will falter and cause bump in our profits. We that in mind,
we hope our manager’s expertise will take us far and our product will outshine our competitors
With our company’s briefing being said, Nutrovita expects a sale of 40000 units sold by the year,
and in our 1st quarter a sale of 8000 units, 2nd quarter 11000, 2rd quarter 12000 units and finally
in our 4th quarter a projected sale of 9000 units. Our breakeven point in sale in a month is tk
50535/ tk 345.916 which results in 146.09 units and our breakeven point sales is 146.09*350
which 51332 taka.
Finally we hope to get our funding from our secured partners and investments so that we can
manage our operations smoothly. Their investments can be rewarded with our profits which we
hope to achieve. We initially need a capital of 700000 taka.

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 1. Introduction

We will present a new malt drink called Nutro Vita. It is a relatively new company that offers
high quality malt beverages in the local Bangladeshi market. Our business strategy will revolve
around the need to provide a quality malt beverage to our various target customers, in the process
fully meets their needs. This will be achieved through the implementation of high standards of
quality control and technological innovations, as well as the hiring of a professional production
and sales team and the production of good quality marketing materials designed to serve various
types of customers. This marketing material will be professionally produced to reflect our image
and reputation. We will position ourselves as a quality manufacturer who strives to provide
satisfaction, fun, reliability and a good image. We intend to establish a good relationship with all
interested parties.
Our target markets will mainly be children, mothers and the working class who appreciate good
quality smoothies. The working class will go to the miners, who are an important part of the
market, to the administrative staff who appreciate good quality malt drinks. Our products will be
widely distributed in remote but extremely vital areas, where the market appreciates availability,
good quality malt beverages.

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 2. Production Process
As we produce Nutro Vita a malted drink so we need some ingredients which are oats, peanuts,
milk powder, coco powder, sugar and almond. We produce 38500 units in a year. To produce our
product first we have to roast peanuts, almond and oats. We send this ingredients to the roasting
machine to roast properly. To roast this ingredients we have to bear some cost which are:
Helper wages 5300tk*3 helper= 15900 tk per month
Machine operator wages 8200tk*2= 16400 tk per month

After roasting all the ingredients we blend those roasted materials to make powder. 2 helper help
to reach those roasted ingredients from roasting machine to blending machine. 1 machine
operator operate the blending machine and 1 computer operator all time keep eyes on the
machine by computer. Our blending cost are given below:
Helper wages 5300*2 helper= 10600 tk per month
Machine operator wages 8200*1 operator= 8200 tk per month
Computer operator wages 9800*1 operator= 9800 tk per month

End of the blending process we mix all of our ingredients. Mixing is very important for our
product. To make Nutro Vita tasty and healthy our mixer machine operator carefully mix all the
ingredients in right amount. Cost of mixing process are:
Helper wages 5300*2 helper= 10600 tk per month
Machine operator wages 8200*1 operator= 8200 tk per month
Computer operator wages 9800*1 operator= 9800 tk per month

At the end of the production process of Nutro Vita, we pack 500 gram of powder in a plastic jar.
We buy these plastic jar from market and fill up this jar with Nutro Vita powder in our factory.
Cost of packaging are:
Helper wages 5300*2 helper= 10600 tk per month
Machine operator wages 8200*1 operator= 8200 tk per month
Computer operator wages 9800*1 operator= 9800 tk per month

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Assumptions for direct materials:
We are using six kind of ingredient to make out malt drink. We purchased our products in a bulk.
Because of that we got some discount on per kg. The jar contains of 500g powder which is
allocated by Oats 90g, peanuts 120g, milk powder 90g, coco powder 50g, sugar 70g, almond
80g.
Calculation of per gram price: Oats: 525tk/1000g=.53/-
Peanuts: 290tk/1000g=.29/-
Milk powder: 550tk/1000g=.55/-
Coco powder: 1000tk/1000g=1/-
suger:60tk/1000g=.06/-
Almond:800tk/1000g=.8/-

Ingredient name Market price (1kg) Using gram per unit Per gram price

Oats 525/- 90g .53/-

Pea nuts 290/- 120g .29/-

Milk powder 550/- 90g .55/-

Coco powder 1000/- 50g 1/-

sugar 60/- 70g .06/-

almond 800/- 80g .8/-

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 3. Cost Identification for the Business
Product Cost
Direct Direct Labor Manufacturing Variable
Cost Item Period Cost Fixed Cost
Material (if any) Overhead Cost
47.7 tk per 47.7 tk per
unit unit
Oats
(90g*.53tk (90g*.53tk
per gram) per gram)

64 tk per unit 64 tk per unit

Almonds (80g*.8tk per (80g*.8tk per
gram) gram)

34.8 tk per unit 34.8 tk per unit

Peanuts (120g*.29tk per (120g*.29tk per
gram) gram)

49.5 tk per unit 49.5 tk per unit

Milk powder (90g*.55tk per (90g*.55tk per
gram) gram)

50 tk per unit 50 tk per unit

Coco powder (50g*1tk per (50g*1tk per
gram) gram)

4.2 tk per unit 4.2 tk per unit

Sugar (70g*.06tk per (70g*.06tk per
gram) gram)

Workers’ 57.69 tk per

wages dlh

20000tk per 20000tk per

Rent
month month

Supervisor’s 13400tk per 13400tk per

salary month month

4284tk per 2100tk per 2184tk per

Electricity
month month month

700tk per
Water bill 700tk per month
month

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 Depreciation 5000tk 5000tk

8000tk per 8000tk per

Security guard
month month

2000tk per 2000tk per

Maintenance
month month

commission 10500tk

Office 25000tk per

building rent month
Selling &
17667tk per
Administrativ
month
e
57.69tk per
Total 250.2tk per unit 42667tk 50535tk 12934.2 tk
dlh

4. Calculating Manufacturing Cost per Unit

We use Absorption costing process to calculate our per unit product cost because it includes all
costs related to manufacturing of a specific product. Absorption costing shows more revenue in
income statement. As we are going to release our company share in share market it helps us to
make a positive review to the investor.

V.MOH per unit = 12934.2 TK / 3333 unit = 3.88 TK per piece

Total F.MOH = 50535 TK
Number of Units Produced = 3333 units in one month
Absorption costing unit product cost = D.M +DL+ V.MOH + Total F.MOH/No. of unit
produced
= 250.2 TK + 57.69 TK+ 3.88 TK + 50535 TK/3333 pieces
= 250.2TK + 57.69 TK + 3.88 TK +15.16 TK
= 327 (approximate) tk per unit
Our per unit product cost is 327 tk

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 5. Determining the Unit Selling Price

Setting the price of each unit NutroVita, we have to look on some factors. Our selling price must
need to cover all the cost and generate profit.
It is always better to lower the price of the product, in order to lower the price we need to cut off
the production. In such case we must pay attention to the quality of the product we are making,
We are selling our product in a very cheap rate because we want to provide nutrition to all type
consumers, basically our products price rate is lower than the other competitor, It will also help
us to survive on the market, because most of the competitor are well established in the market.
SO, our main competitors is Horlicks which is sold for 395/- per 450g jar and our Nutro vita
product price is 350/- per 500g jar. For this reasons we are selling our products to the consumers
in a cheap rate so that they can get the nutrition properly.

6. Cost-Volume-Profit (CVP) Analysis

At manufacturing cost we calculated everything for a month but in cvp analysis we are
going to do it for total of a year. As we know we are selling 38000 for a year so average
unit for a month is 3166.667 units.
1. Contribution Margin per unit:
Contribution Margin known as CM per unit difference between the price per unit and the
variable cost incurred for that unit.
CM per unit= Selling price per unit – variable costs per unit
=tk350 – tk 4.084
=tk 345.916 per unit
[Our total variable cost is 12934.2tk so per unit variable cost is tk12934.2/3166.667units=tk
4.084(approximately)]
Every unit that Nutro Vita sells therefore contributes tk 345.916 towards profit.

2. Break-even point in units:

The breakeven number of units can be understood in a slightly different way by looking at and
determining the breakeven point. The terms are essentially the same thing.
Break-even point in units: Total fixed cost/CM per unit

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 =tk 50535/ tk 345.916
=146.09 units (approximately)

The Break-even point in units for Nutro Vita is 146.09 units

3. Break even Revenue:
 Break-even revenue refers to the sales taka/dollar amount it must generate to cover its costs. It
shows the company makes profit or loss.
Break even revenue: BEP in units * Selling price per unit
=146.09 units * tk350 per unit
=tk 51132 (approximately)

The break-even revenue of The Nutro Vita is tk 51132.

4. Degree of operating leverage:

The Degree of operating leverage is known as DOL, it is a financial ratio that measures the
sensitivity of a company’s net operating income to its sales. This financial metric shows how a
change in the company’s sales will affect its operating income.
DOL= CM/NOI
= tk 1095399.13/tk 1044864.13
= 1.046
[cm=sales-variable expense
= (3166.67units*350)-12934.2
=1095399.13]
[NOI=CM-Fixed
Break Even Analysis expense
12000000 =tk1095399.13-tk
10000000 50535

8000000
=tk 1044864.13]
Taka

6000000

4000000

2000000

0
0 5000 10000 15000 20000 25000 30000 35000
Units
sales fixed cost total cost BEU approx.=654

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 7. Master Budget
7.1 Sales Budget:
Unit Price BDT350
Revenue collected in the month of sale 70%
Revenue collected in the month following sale 25%
Uncollectible revenue 5%
Beginning finished goods inventory for the next year 500units
2020 budgeted sales in units 38000units

Quarter Quarter Quarter Quarter

1 2 3 4 Year
No of units sold 7000 10000 12000 9000 38000
Selling price per
unit 350 350 350 350 350
245000
Total Revenue 0 3500000 4200000 3150000 13300000
171500
Revenue collection 0 2327500 3202500 4252500 11497500

7.2 Production Budget:

Assumption: for first quarter we wanted to keep ending inventory 3000units after that 2000units
and for 3rd quarter 1000unit. End of the year 500 units
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
No. of units
7000units 10000units 12000units 9000units 38000units
sold
Add: Desired
ending 3000 units 2000 units 1000 units 500 units 500 units
inventory
Total units
10000 units 12000 units 13000 units 9500 units 44500 units
needed
Less:
Beginning 0 3000 units 2000 units 1000units 0
inventory
No. of units
10000 units 9000 units 11000 units 8500 units 38500 units
produced

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 7.3 Direct Materials Budget
Assumptions: Per month we are using 95g for one unit of products.
Cash disbursement 50%.
Per month unit produced for quarter1: 333.33units or 334units
Quarter 2: 500units
Quarter 3; 433.33 or 434 units
Quarter 4: 466.66 or 467 units
Oats:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10000 9000 11000 8500 38500
Oats per unit Product 47.7tk 47.7tk 47.7tk 47.7tk 47.7tk
Total Quantity of Oats needed for
production 159000g 143100g 174900g 135150g 612150g
Desired ending Inventory of Oats 5000g 3000g 7000g 3500g 3500g
Total quantity of Oats needed 164000g 146100g 181900g 138650g 630650g
Less: Beginning inventory of Oats 0 2000g 1000g 1500g 0
Quantity of Oats needed to be
purchased 164000g 144100g 180900g 137150g 626150g
0.53tk/uni 0.53tk/uni 0.53tk/uni
Price per unit needed for Oats t t t 0.53tk/unit 0.53tk/unit
Total cost of Oats 86920tk 76373tk 95877tk 72689.5tk 331859.5tk
Cash disbursement for Oats 43460tk 81646.5tk 129585tk 165929.8tk 420621.3tk

Almonds:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10000 9000 11000 8500 38500
Almonds per unit Product 64tk 64tk 64tk 64tk 64tk
Total Quantity of Almonds needed for
production 213333.3g 192000g 234666.7g 181333.3g 821333.3g
Desired ending Inventory of Almonds 5000g 3000g 7000g 3500g 3500g

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Total quantity of Almonds needed 218333.3g 195000g 241666.7g 184833.3g 839833.3g
Less: Beginning inventory of Almonds 0 2000g 1000g 1500g 0
Quantity of Almonds needed to be
purchased 218333.3g 193000g 240666.7g 183333.3g 835333.3g
Price per unit needed for Almonds 0.8tk/unit 0.8tk/unit 0.8tk/unit 0.8tk/unit 0.8tk/unit
174666.7t 192533.3t 146666.7t
Total cost of Almonds k 154400tk k k 668266.7tk
87333.33t 164533.3t 334133.3t
Cash disbursement for Almonds k k 260800tk k 846800tk

Peanuts:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10000 9000 11000 8500 38500
Peanuts per unit Product 34.8tk 34.8tk 34.8tk 34.8tk 34.8tk
Total Quantity of Peanuts needed for
production 116000g 104400g 127600g 98600g 446600g
Desired ending Inventory of Peanuts 5000g 3000g 7000g 3500g 3500g
Total quantity of Peanuts needed 121000g 107400g 134600g 102100g 465100g
Less: Beginning inventory of Peanuts 0 2000g 1000g 1500g 0
Quantity of Peanuts needed to be
purchased 121000g 105400g 133600g 100600g 460600g
0.29tk/uni 0.29tk/uni 0.29tk/uni
Price per unit needed for Peanuts t t 0.29tk/unit t 0.29tk/unit
Total cost of Peanuts 35090tk 30566tk 38744tk 29174tk 133574tk
Cash disbursement for Peanuts 17545tk 32828tk 52200tk 66787tk 169360tk

Powder Milk:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10000 9000 11000 8500 38500
Powder milk per unit Product 49.5tk 49.5tk 49.5tk 49.5tk 49.5tk
Total Quantity of Powder milk needed
for production 165000g 148500g 181500g 140250g 635250g

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Desired ending Inventory of Powder
milk 5000g 3000g 7000g 3500g 3500g
Total quantity of Powder milk needed 170000g 151500g 188500g 143750g 653750g
Less: Beginning inventory of Powder
milk 0 2000g 1000g 1500g 0
Quantity of Powder milk needed to be
purchased 170000g 149500g 187500g 142250g 649250g
0.55tk/uni 0.55tk/uni
Price per unit needed for Powder milk t t 0.55tk/unit 0.55tk/unit 0.55tk/unit
Total cost of Powder milk 93500tk 82225tk 103125tk 78237.5tk 357087.5tk
178543.8t
Cash disbursement for Powder milk 46750tk 87862.5tk 139425tk k 452581.3tk

Coco Powder:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10000 9000 11000 8500 38500
Coco Powder per unit Product 50tk 50tk 50tk 50tk 50tk
Total Quantity of Coco Powder needed
for production 166666.7g 150000g 183333.3g 141666.7g 641666.7g
Desired ending Inventory of Coco
Powder 5000g 3000g 7000g 3500g 3500g
Total quantity of Coco Powder needed 171666.7g 153000g 190333.3g 145166.7g 660166.7g
Less: Beginning inventory of Coco
Powder 0 2000g 1000g 1500g 0
Quantity of Coco Powder needed to be
purchased 171666.7g 151000g 189333.3g 143666.7g 655666.7g
Price per unit needed for Coco Powder 1tk/unit 1tk/unit 1tk/unit 1tk/unit 1tk/unit
Total cost of Coco Powder 171666.7tk 151000tk 189333.3tk 143666.7tk 655666.7tk
Cash disbursement for Coco Powder 85833.33tk 161333.3tk 256000tk 327833.3tk 831000tk

Sugar:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10000 9000 11000 8500 38500
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Sugar per unit Product 4.2tk 4.2tk 4.2tk 4.2tk 4.2tk
Total Quantity of Sugar needed for
production 14000g 12600g 15400g 11900g 53900g
Desired ending Inventory of Sugar 5000g 3000g 7000g 3500g 3500g
Total quantity of Sugar needed 19000g 15600g 22400g 15400g 72400g
Less: Beginning inventory of Sugar 0 2000g 1000g 1500g 0
Quantity of Sugar needed to be
purchased 19000g 13600g 21400g 13900g 67900g
Price per unit needed for Sugar 0.6tk/unit 0.6tk/unit 0.6tk/unit 0.6tk/unit 0.6tk/unit
Total cost of Sugar 11400tk 8160tk 12840tk 8340tk 40740tk
Cash disbursement for Sugar 5700tk 9780tk 16200tk 20370tk 52050tk

7.4 Direct Labor Budget

Assumption: To make a product we need .05hour or 3min. According to Bangladesh labor
wage we took average wage. So our wages per hour calculation: wages for month12000/-
Total working hour for a month (8*26) =208

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units produced 10,000 9000 11,000 8500 38000

Direct labor hour

.05DLH .05DLH .05DLH .05DLH .05DLH
needed per unit of
product
Total direct
500hour 450hour 550hour 425hour 1925hour
Labor hour needed
for production
Wages per direct labor 57.69/- 57.69/- 57.69/- 57.69/- 57.69/-
hour

Total wages for direct 28,846/- 25,960/- 31,729/- 24,518/- 1,11,053/-

labor hour

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Wages per hour: 12000/208=57.69/-

7.5 Manufacturing Overhead Budget

Assumption:
We are allocating hourly per month our allocation hour base is 166.66 hours. Our factory rent per
month is 20,000/-.security guard salary according to our Bangladesh wages rate 8000/- per
month. For maintain our machines we used per month for 1 machine 500/- so for 4 machines
(4*500) =2000/-. We are assuming that our monthly electricity bill would be 4284tk for
production purpose. Water bill per month is 700/-.for being a new business, we cannot maintain
the standard salary scale. Our supervisor salary is amount of 13400/-.we keep our depreciation
same in every quarter 5000/-.

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

Allocation Base 500 450 550 425 1925

VMOH rate 3.88 3.88 3.88 3.88 3.88

Total VMOH Cost 1940 1746 2134 1649 7469

FMOH Cost

Factory Rent 600000 600000 600000 600000 2400000

Security Guard 24000 24000 24000 24000 96000

Machine Maintenance cost 6000 6000 6000 6000 24000

Electricity Bill 6300 6300 6300 6300 25200

Water Bill 2100 2100 2100 2100 8400

Supervisor Salary 40200 40200 40200 40200 160800

Total FMOH Cost 678600 678600 678600 678600 2714400

Total MOH Cost 680540 680346 680734 680249 2721869

Less: non cash MOH expense 5000 5000 5000 5000 20000

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Cash disbursement 675540 675346 675734 675249 2701869

7.6 Selling and Administrative Expense Budget

1. Based on prior year’s actual expenses, let’s assume that the variable S&A expenses
average out to 10BDT per unit sold.
2. Let’s assume that executive salaries, advertising, rent, utilities and depreciation are our
fixed expenses.
3. All of the expenses are equally distributed over the four quarters of the year except
advertisement as we estimates costs for quarters 1 through 4 as 7000, 8000, 9000, and
10000, respectively.

Item Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

No. of units sold 7000 10000 12000 9000 38000
VS&A per unit
10 10 10 10 10
sold
Total VS&A costs 70000 100000 120000 90000 380000
FS&A costs
Executive
12000 12000 12000 12000 48000
salaries
Rent 10000 10000 10000 10000 40000
Utilities 5000 5000 5000 5000 20000
Advertisement 7000 8000 9000 10000 34000
Depreciation 8000 8000 8000 8000 32000
Total FS&A costs 42000 43000 44000 45000 174000
Total S&A costs 112000 143000 164000 135000 554000
Less:
8000 8000 8000 8000 32000
Depreciation
Cash
disbursement for 104000 135000 156000 127000 522000
S&A

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7.7 Cash Budget
Assumption: We have started our business with liquid cash amount of 700000/-.for making and
processing our work, we bought couple of machineries which are Roasting machine
150,000/-,blending machine 100,000/-,Mixing machine 120,000/-, packaging machine
130,000/-.We wanted to give our owner 66,050/- dividend besides this we have 5 shareholders
who are going to take the dividend. Our purchasing process was on cash so that’s why we do not
have any accounts payable. End of every quarter, we wanted to maintain minimum cash balance
amount of 500,000/-.

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Beginning Cash Budget 700000 765895.2 1248192.5 2321307.74
Add: Cash Collection 1715000 2327500 3202500 4252500
Total cash available 2415000 3093395 4450692.5 6573807.74
Less: Cash disbursement
Material 143310.8 339602.6 623396.8 973903.6
MOH 675540 675346 675734 675249
Equipment Purchases 500000 500000 500000 500000
Dividend 330,254 330,254 330,254 330,254
Total disbursement 1649105 1845203 2129384.8 2479406.6
Excess (deficiency) 765895.2 1248193 2321307.7 4094401.14
Financing :
Borrowing
Repayment
Interest
Total financing 4094401.14
Ending Cash Balance 4094401.14

7.8 Forecasted Income Statement

Nutro Vita Company
Income Statement

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 For The Year ended december 31,2019
Sales 5700000
Cost of goods sold 1787000

Gross profit 3913000

Total S&A costs 554000

Total operating expenses 3359000

NOI(net operating income) 3359000

7.9 Forecasted Balance Sheet

Balance sheet
For the year ended 31 December 2019

Detail TK TK
Current asset:
Cash 4094401
Raw material ending inventory 13195
Ending inventory of Finished goods 175000
Total Current asset 11685695
Fixed asset
equipment 500000
(-) accumulated depreciation (20,000) 480000
Total asset 4762596
Equity and liabilities:
Capital of Nutro vita on dec 31st 2019 1403596
3359000
Profit

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Total liabilities 4762596

8. Conclusion
The local malt beverage market has grown steadily in recent years due to the increase in the
disposable income of people and the opening up of the economy. With this in mind, we mean
that our marketing programs expand accordingly. The introduction of quality catalogs and sales
literature will allow Nutro Vita to commercialize potential customers. We project that sales
increase accordingly, albeit a little slower as we create a reputation for ourselves. Over time,
Internet presence and participation in regional fairs will be key points to expand sales and
marketing potential through the use of new channels and the identification of potential
customers.
Throughout the year, we intend to conduct periodic evaluations of our marketing programs to
ensure that we are in line with our planned goals. In summary, we intend to do the following:
Tracking-up and follow-up: we intend to have the discipline, as an organization, to keep track
of the results of the business plan and make sure we implement it.
Focus on the market segment: we intend to have the discipline to maintain the focus of the
market segment.
Say no: even if it is initially difficult, we mean to say no to the special offers that take us away
from the objective objective and are not profitable.

References

1. CHAL-DAL and DARAZ.com

2. Garrison, N. (2019). Managerial Accounting. Usa : McGraw-Hill.
3. You Tube. (2019, February 7). Retrieved 2019, from https://www.youtube.com/watch?
v=SS65GkCuDNE.

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