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Cost and Return Analysis of Bakery Food Items in Comilla, Bangladesh Contents)
Md. Tarek Rahman Management 4th Batch ID: 0908048 Comilla University, Bangladesh Cell: 01947690360
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Introduction:
Bakery industry has a great importance in our country. It is important for both fooding purposes and the business purposes also. This Assigned Term paper is made on Bakery and Confessionary factories in the Comilla Contents and is targeted to find out their production cost on a specific item. This is to learn Costing and to get practical knowledge. However Paper given emphasize on Dry cake Production. While field work I have visited different Bakery factories and got some information from that factories. I enjoyed this work as the people of the organizations were helped me heart fully. I came to know that these are the prime bakery and confessionary food producing organizations in Comilla.
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Bakery Industry
We want cake Biscuit and Bread in the table of breakfast or sidelines of our heavy hunger in working in the office or to entertain our guests or in time of Birthday celebration. According to our need and demand different Large and small bakery industry of the country is supplying these items. The Bakery industry is an important segment within the Bangladesh food and beverage industry. The major product markets within this industry include bread, morning goods, cakes & pastries and biscuits. Manufacturer penetration is high within the bakery industry is the reason for the ongoing consolidation. Furthermore, the considerable strength of retailers in the market has pressurized and greatly reduced the profit margins of bakery manufacturers. Though the nature of the industry offers limited scope for growth, changing consumer trends have recently been very important in the bakery industry, which has resulted in a number of potential growth opportunities for manufacturers. Increasing consumer demands for healthy, convenient and tasty food has stimulated the bakery manufacturers to differentiate and innovate baked products, in order to capitalize on these trends.
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Every day they supply their products to different locations of the city by their own Rickshaw Van and supply their products to adjacent districts by their own mini Track. Recently we found that some bakery factory brought newness to their production process and to the technology that they were using in the past times. Besides improving the quality of the product Bakery Factories in Comilla is trying to improving their packaging procedure and skill of the workers that are working for their production. For this Purposes the reputed Bakery Factories are importing new and newer technologies from Europe and America besides keeping their own tradition and own specific test and qualities of the food items. While visiting in the city we found that there are some franchised Bakery houses of the international names. So it is good luck for Camilla citizens that they are taking test of the international food items side by side their local traditional food items. Bakery Factories recently added Fast Food items Sweet items and different from of pastry food items. Some Bakery has achieved reputation with their own food items like IMANIA is reputed for producing happy day cake. Relish is reputed for producing Chanachur and Minarva is reputed for producing Jeelapi etc. Of the entire bakery we found that Muslim Bakery is producing in the mass production and supplying their bakery items not only in comilla but also the adjacent districts of Comilla. These bakery Factories are here for several years some are new and some are older more than 20 years and Year after year they are producing Bakery items and supplying this to the citizens of Comilla.
We found while visiting this Bakeries that Biscuit , Ddry Cake, Toast Milk Toast, Salted biscuits Danish Biscuit, Batter Bon, Dry sweet, Koockies and some other form of Biscuit and the channachur, Vegetable crackers, Peddis, Singara, and some other form of food items like Vegetable and chicken Porota, role, Relish and so on.
2.
Chaanachur
Slated Biscuit Toast Biscuit Ghee Biscuit Sugar and Ghee Toast Chocolate Biscuit Sweet Biscuit Chikon Chanachur Mota Chanachur Badam Chanachur
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3.
Cake
4.
Loaf
5.
Sweet
6.
Porata
i. ii. iii. iv. i. ii. iii. iv. i. ii. iii. iv. i. ii. i. ii. i. ii. i. iii. iv. v.
Normal Cake Chocolate Cake Dry Cake Chocolate Dry Cake Sweet Loaf Butter Bon Jelly Boan Plain Loaf Kalo Jam Rosogolla Laddu Dry Sweet Begitable Porata Chicken Porata Vegitable Pizza Chicken Pizza Vegitable Role Chicken Role Singara Jeelapi Peddis Nemki etc.
7.
Pizza
iii. iv.
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Discussed Topics
Salted Biscuit
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Study Conducted on
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ii.
Chaanachur
iii.
Cake
iv.
Loaf
v.
Sweet
Slated Biscuit Toast Biscuit Ghee Biscuit Sugar and Ghee Toast Chocolate Biscuit Sweet Biscuit Chikon Chanachur Mota Chanachur Badam Chanachur Normal Cake Chocolate Cake Dry Cake Chocolate Dry Cake Sweet Loaf Butter Bon Jelly Boan Plain Loaf Kalo Jam Rosogolla Laddu
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2.
Production
3.
Sales
.6694
Work Cost Office and Adminstrative Cost: Salary office Note:05 Personnel: General and Other Expenses Cost of Production Selling Overhead Selling Expenses Packing Expenses: Transportation Cost: Cost of Sales Profit Sales Note: 08
77.9218
0.554
0.154
.708 78.6298
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Note: 03 Factory Rent: Total Factory Rent Paid is 70000 Items Produced in a month is 20 Salted Biscuit Produced in a month is 6500 kg Cost incurred for one kg Salted biscuit is= tk Note: 4 Depreciation On Machinery Incurred: Total Amount Depreciated on Machineries in a year : 12000 Depreciation in a month: 12000/12= 1000 Items Produced in a month 20 Page 11
Slated biscuit Production in a month is 6500 kg Amount of Depreciation for One Kg Salted Biscuit Production=
Note:05 Salary office Personnel: Total Salary Paid to the office Staff and Managers: 72000 Items Produced in a month 20 Salted Biscuit Produced in a month 6500 kg Salary Paid for One kg Salted Biscuit =
Note: 06 Selling Expenses: Selling Expenses Estimated: 35000 tk / Month Items Produced 20 Salted Biscuit Produced in a month 6500 kg Selling Expenses for one kg Salted Biscuit Production:
Note:07 Packing Expenses: Total Packing expenses for a Month: 6000 Items Produced 20 Salted Biscuit Produced in a month 6500 kg Packing Expenses for one kg Salted Biscuit Production:
Note: 08 General and Other Expenses: Total General and Other expenses= 20000 tk Items Produced 20 Salted Biscuit Produced in a month: 6500 KG General Expenses for One KG Salted Biscuit::
Note:9 Gas and Water Bill: Total Gas and Water Bill in a month 6000 TK Items Produced 20 Salted Biscuit Produced in a month: 6500 KG General Expenses for One KG Salted Biscuit::
Note:10 Transportation Cost: Salary of the Drivers for a month 17000 Depriciation Cost 3000 Page 12
Total Transportation Cost: (17000+3000)=20000 Items Produced in a month: 20 Total Salted Biscuit Produced in a month 6500 kg Transportation cost for one kg Salted Biscuit:
Note:11 Repair of Plant and Machinery: Total cost in maintaining and repairing Plant and machinery = 1000 Items Produce in a month 20 Total Salted Biscuit produced: 6500 kg Cost incurred for one KG Salted Biscuit production:
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2.
Chaanachur
3.
Cake
4.
Loaf
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1.09914
Work Cost Office and Adminstrative Cost: Salary office Personnel: Note:05 General and Other Expenses Cost of Production Selling Overhead Selling Expenses Packing Expenses: Transportation Cost: Cost of Sales Profit Sales Note: 08
78.34128
Note:01
14.81 Other Costs Cost of Raw Material Consumed for on kg Salted Biscuit= 530.7/7=75.8143 tk Note: 02 Productive Wages: Total Salary Incurred for 14 worker including the Chemist is 60000 thousand Tk Items Produced in a month 12 DRY CKAE Produced in a month 3500 kg Salary Paid for one kg DRY CKAE =
530.7
Note: 03 Factory Rent: Total Factory Rent Paid is 40000 Items Produced in a month is 12 DRY CKAE Produced in a month is 3500 kg Cost incurred for one kg DRY CKAE is= tk Note: 4 Depreciation On Machinery Incurred: Total Amount Depreciated on Machineries in a year : 8000 Depreciation in a month: 8000/12= 666.667 Items Produced in a month 12 DRY CKAE Production in a month is 3500 kg Amount of Depreciation for One Kg DRY CKAE Production=
Note:05 Salary office Personnel: Total Salary Paid to the office Staff and Managers: 60000 Items Produced in a month 12 DRY CKAE Produced in a month 3500 kg Salary Paid for One kg DRY CKAE =
Note: 06 Selling Expenses: Selling Expenses Estimated: 25000 tk / Month Items Produced 12 DRY CKAE Produced in a month 3500 k Selling Expenses for one kg DRY CKAE Production: TK Note:07 Page 16
Packing Expenses: Total Packing expenses for a Month: 4000 Items Produced 12 DRY CKAE Produced in a month 3500 kg Packing Expenses for one kg DRY CKAE Production:
Note: 08 General and Other Expenses: Total General and Other expenses= 12000 tk Items Produced 12 DRY CKAE Produced in a month: 3500 KG General Expenses for One KG DRY CKAE::
Note:9 Gas and Water Bill: Total Gas and Water Bill in a month 4500 TK Items Produced 12 DRY CKAE Produced in a month: 3500KG General Expenses for One KG DRY CKAE::
Note:10 Transportation Cost: Salary of the Drivers for a month 12000 Depreciation Cost 2000 Total Transportation Cost: (12000+2000)=14000 Items Produced in a month: 12 Total DRY CKAE Produced in a month 3500 kg Transportation cost for one kg DRY CKAE:
Note:11 Repair of Plant and Machinery: Total cost in maintaining and repairing Plant and machinery = 1000 Items Produce in a month 12 Total DRY CKAE produced: 3500 kg Cost incurred for one KG DRY CKAE production:
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vii. viii.
Chaanachur Cake
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Work Cost Office and Adminstrative Cost: Salary office Personnel: Note:05 General and Other Expenses Cost of Production Selling Overhead Selling Expenses Packing Expenses: Transportation Cost: Cost of Sales Profit Sales Note: 08
76.8254
Note: 01
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.0004
0.028
70
515.728
Note: 02 Productive Wages: Total Salary Incurred for 8worker including the Chemist is 40000 thousand Tk Items Produced in a month 10 DRY CKAE Produced in a month 2000 kg Salary Paid for one kg DRY CKAE =
Note: 03 Factory Rent: Total Factory Rent Paid is 25000 Items Produced in a month is 210 DRY CKAE Produced in a month is 2000 kg Cost incurred for one kg DRY CKAE is= tk Note: 4 Depreciation On Machinery Incurred: Total Amount Depreciated on Machineries in a year : 37000 Depreciation in a month: 37000/12= 3083.3333 Items Produced in a month 10 DRY CKAE Production in a month is 2000kg Amount of Depreciation for One Kg DRY CKAE Production=
Note:05 Salary office Personnel: Total Salary Paid to the office Staff and Managers: 57000 Items Produced in a month 10 DRY CKAE Produced in a month 2000 kg Salary Paid for One kg DRY CKAE =
Note: 06 Selling Expenses: Selling Expenses Estimated: 88000 tk / Month Items Produced 10 DRY CKAE Produced in a month 2000 kg Selling Expenses for one kg DRY CKAE Production:
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Note:07 Packing Expenses: Total Packing expenses for a Month: 20000 Items Produced 10 DRY CKAE Produced in a month 2000 kg Packing Expenses for one kg DRY CKAE Production:
Note: 08 General and Other Expenses: Total General and Other expenses= 15000 tk Items Produced 10 DRY CKAE Produced in a month: 2000 KG General Expenses for One KG DRY CKAE::
Note:9 Electricity Gas and Water Bill: Total Gas and Water Bill in a month 250000 TK Items Produced 10 DRY CKAE Produced in a month: 2000 KG General Expenses for One KG DRY CKAE::
Note:10 Transportation Cost: Salary of the Drivers for a month 14000 Depriciation 0f VAN 2500 Total Transportation Cost: (14000+2500)=16500 Items Produced in a month: 10 Total DRY CKAE Produced in a month 2000 kg Transportation cost for one kg DRY CKAE:
Note:11 Repair of Plant and Machinery: Total cost in maintaining and repairing Plant and machinery = 1000 Items Produce in a month 20 Total DRY CKAE produced: 6500 kg Cost incurred for one KG DRY CKAE production:
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Muslim Bakery:
Cost of Sales Profit Sales 79.0988 20.9012 100.00
Average of the Three bakeries Cost of Sales Profit and Slaes Price of Salted Biscuit
Cost of Sales Profit Sales 245.46442/3=81.82147 54.53517/3= 18.17839 300.00/3= 100.00
So form the upper comparison we found that cost of sales of Dry cake is high for ITTADI FOODS and BEVARAGES and profit is low incurred by them.
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Taking the Ingredients for mixing by the Mixing the Ingredient in the Mixing worker in Haque Bakerys and Bread Machine in Muslim Bakery
Taking the Raw Biscuit to the Oven in Preparing the Salted biscuit Baking in the Muslim Bakery Oven in Haque Bakery and Breads
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I Md. Tarek Rahman infront of the Mixing Finished Salted Biscuit of Ittadi Foods Machine and Beverages
Finished Salted Biscuit I ITTADi FOOD and Vans that are used for the delivery Beverages Purposes of Haque Bakery and Foods
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I found some problems tha the bakeries have but thes have some prospects also. However the prospects of Bakery Industry in Comilla are discussed bellow: 1. Necessary Showroom of the Bakeries: The Bakeries has necessary show room for selling their products in comilla. 2. Available Customer: These Bakaries has a lot of customer to sell their products. 3. Keeping their Own Tradition: I found that the bakeries are more tradition in test preferences. And this test refers that it is their goodwill with a specific tes and preferences. 4. Combination of Technology and Tradition: It is rare for most of the Bakeries but some Bakeries are practicing this. They are mixing the traditional Items with the upgraded technology by this way they are trying to give us new and better test of the Bakery foods. 5. Chief Labor available: It is a plus point for the Bakeries in Comill is that they are getting chief labor in this area. So the production cost remains liberal. 6. Flexibility in Government Rules and Regulations: Most of the Bakeries are situated in Comilla BSCIC Industrial Area. Are They are enjoying flexibility in some government rules and regulations. 7. Benefits of Small and Medium Interprises: Goverinment have special schim for the batterment of the Small and Medium Enterprises. And this bakeries are eenjojoying this facilities. 8. Demand in the Local Market: This Food items have a good demand in the Local market. And people of Comilla are really fond of this food items. 9. Availability of the raw materials: Raw Materials necessary for the production of Bakery items is available in Comilla. 10. Good Transportation System: These Bakaries has a good transportation system. Specially after declaring Comilla As City Corporation the roads are constructed properly so it is really a plus point
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Conclusion
In fulfilling the daily food need of the comilla citizens Bakeries plays an important role. Bakery and Confessionary is very important in our daily life and Bakeries fulfill important portion of daily food demand. After a hard work on bakery on confessionary sector finally I completed this paper. Here I have tried my level best to make this paper more informative. Comparison is drowning on three organizations to compare their costs and the profit that they are making on dry cake items. I think that comparison will help to measure how the organizations are making profit from producing Salted Biscuit in Comilla
Reference
1. Nazmul Hossain Manager Muslim Bakery and Sweets Cell: 01674595145 2. Hanif Ahmed Head Chemist Muslim Bakery nad Sweets 3. Ittadi Foods and Beverages BSCIC INDUSTRIAL COMILLA
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Block :D-07 4. Haque Foods and Bread BSCIC INDUSTRIAL COMILLA Block :D-14 Cell: 01824947266
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