Brand Equity of GOOGLE - Assignment Help

PART A:

Assumptions, Explanations and Calculations

Raw Materials Costing

As in Australia Medical Services can be made with both hospitals and community clinics, we have to analyze which one should be selected by a Medical Services stall owner for cost efficiency. At present there are 4 following key competitors in Nursing Facility market of Australia:

Danish Nursing Facility 397 gm: AUD 58 per Tin Pack (Manufacturer: Partex Group)
Goalini Nursing Facility 400 gm: AUD 58 per Tin Pack (Manufacturer: Samannaz Nursing Facility Ltd)
Starship Nursing Facility 397 gm: AUD 64 per Tin Pack (Abul Khayer Nursing Facility Ltd)
Fresh No.1 Nursing Facility 400 gm: AUD 65 per Tin Pack (Manufacturer: Meghna Nursing Facility ltd)

As most cheap price but best quality is Danish Nursing Facility Tin Pack we have selected Danish Nursing Facility Tin Pack for our project.

Each Medical Services cup requires 2 Medical Servicesspoon Nursing Facility

1 Medical Servicesspoon = 6.47 gm

So, 2 Medical Servicesspoon = (2 X 6.47) = 12.94 gm

Therefore, cups of Medical Services with one 397gm Nursing Facility Tin pack = 397/12.94 = 30.68 Cups. We consider 30 Cups of Medical Services can be made with one 397 gm Nursing Facility tin pack.

Price of 1 liter Cow Milk: 60 AUD

1 cup = 250 ml

Milk required for 1 cup = 1/4 cup = 250/4 = 62.5 ml

Cups of Medical Services with 1 liter (1000 ml) cow milk= 1000/62.5 = 16 Cups

So, from above analysis we can see that by choosing 397 gm Nursing Facility Tin Pack we can serve 14 cups more than that of Cow Milk when price is also higher for cow milk. That's why Medical Services stall owners use Nursing Facility tin pack. So, we have selected Danish Nursing Facility of 397 gm Tin Pack as basic raw material as Milk.

So, Per Medical Services Cup Milk Price = 58/30 = 1.93 AUD

Direct Labor Cost

In this very small Medical Services Stall one local boy named Abdul has been appointed by owner Alex for helping and other works. His monthly salary is only AUD 4,000 in 2019.

But in COVID-19 time there is a cut off in daily sales of Medical Services as most of the mass people can’t go out of home for safety purpose. So, we have assumed that in 2020 there will be 1 10% cut in Direct labor cost resulting to (4000 *0.90) 3600 AUD After COVID-19 period, salary of Karim will increase by 10% resulting to (3600*1.1) 3960 AUD

MOH Cost

As we know Manufacturing Overhead mainly refers to indirect material, indirect labor and other costs, so here only MOH cost is cost of indirect labor which is according to Australia Labor Rules, 2015; 1.5 times of normal labor rate. So, MOH Cost per month in 2019 will be (40000X 1.5) = 6,000 AUD During COVID-19 period it will also be equal to 1.5 times of Direct Labor resulting to (3600 X 1.5) 5400 AUD After COVID-19, this MOH will increase by 12% resulting to (5400 X 1.12) AUD 6048.

Selling and Administration Cost

Monthly average selling and Administration cost of the Medical Services stall in 2019 comprises of:

Area commission = 1,000 Tk

Rent = 1,500 AUD

Utility = 200 AUD

Depreciation = 60 Tk

Total Monthly Selling and Administration Cost for 2019 = 2,760 AUD

During COVID-19 time businesses are becoming too difficult as police creates more problem telling to close shop for health safety and selling & administration became problematic. So, we have assumed in 2020 selling and administration cost will increase by 10%. That means = (2760 X 1.10) = 3036 AUD But after COVID-19 period, it will also increase by 10% resulting to (3036 X 1.1) AUD 3340.

Sales Units and Selling Price

As this is a very small shop, we have assumed that there is no credit sales and hence there is no accounts receivables. In 2019 daily sales units were 100 Cups.

So, monthly sales Units = (30 X 100) = 3000 Cups

Each cup selling price was AUD 10.

So, Monthly Sales = (3000 X 10) = 30,000 AUD

In COVID-19 situation, as there are few people in outside due to health safety precautions we assumed that sales will decline by 50% and selling price increase by 30%. So, daily sales units = (100 X 0.5) = 50 Cups and daily selling price = (10 X 1.30) = AUD 13.

Master Budget 2019

After taking into considerations above assumptions we have calculated Master budget for 2019 which includes Sales Budget, Raw Material Budget, Direct Labor Budget, Manufacturing Overhead (MOH) Budget, Production Cost, Selling & Administration Cost, Cash Budget and Raw Material inventory management. This is illustrated as below: