Considering that you are franchise owner of a famous MILK TEA Company. As part of your business plan you have to forecast your projected costs using the ff. assumptions. PARTICULARS MILK TEA COMPANY BUSINESS (in Philippine Peso) 2022 2021 Cost of Goods Sold Beginning Inventory Purchases Total Goods Available for sale P0.00 1. P 70, 000.00 70, 000.00 2. 3. Ending Inventory Total Cost of Goods Sold 20, 000.00 P 50, 000.00 4. 5. Operating Cost Salaries and Wages P 25, 000.00 P 5, 000.00 P 10, 000.00 P 15, 000.00 P 50, 000.00 6. Transportation 7. Rent 8. Utilities (light and water) 9. Total Fixed Cost 10. Total Variable Cost Total Cost P 105, 000.00 11. The following assumptions are: 1. Salaries and wages will increase 3% annually. 2. Transportation and utilities expenses will increase 7% per year. 3. There is an increase of 15.5% for year 2022. However, purchases will decrease 25% from th previous year because of OMICRON virus. 4. Rent will increase by P 1, 000.00 every after 2 years.

Considering that you are franchise owner of a famous MILK TEA Company. As part of your business plan you have to forecast your projected costs using the ff. assumptions. PARTICULARS MILK TEA COMPANY BUSINESS (in Philippine Peso) 2022 2021 Cost of Goods Sold Beginning Inventory Purchases Total Goods Available for sale P0.00 1. P 70, 000.00 70, 000.00 2. 3. Ending Inventory Total Cost of Goods Sold 20, 000.00 P 50, 000.00 4. 5. Operating Cost Salaries and Wages P 25, 000.00 P 5, 000.00 P 10, 000.00 P 15, 000.00 P 50, 000.00 6. Transportation 7. Rent 8. Utilities (light and water) 9. Total Fixed Cost 10. Total Variable Cost Total Cost P 105, 000.00 11. The following assumptions are: 1. Salaries and wages will increase 3% annually. 2. Transportation and utilities expenses will increase 7% per year. 3. There is an increase of 15.5% for year 2022. However, purchases will decrease 25% from th previous year because of OMICRON virus. 4. Rent will increase by P 1, 000.00 every after 2 years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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