HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

ACCOUNTING FOR TOURISM AND HOSPITALITY

Assignment Report

“ BÁNH MÌ DÂN TỔ”

Lecturer : Pham Thu Huong

Tut :2
Group : 16
Members : 4
Lê Thị Ngọc Minh - 2006090072
Hà Thu Thảo - 2006090106
Đỗ Thị Thúy - 2006090113
Vũ Thị Trang - 2006090123
Word count : 1139 words
Table Of Contents

1. Company and
Product..................................................................................................

2. Selling price per

unit....................................................................................................

3. Annual break-even points...........................................................................................

4. New Break-even
points................................................................................................

5. First-year income statement..........................................................................................

 1. Company and Product

Compared to other specialties of the S-shaped land, the bread can be found in any city,

any street from the ordinary quarter to the busy commercial centers, from the

sidewalks to luxury hotels. Today’s bread becomes the well-known fast food of all

people because of its diversity, convenience, and affordable price. Students and busy

civil servants do not need a seat, just wait around 5 or 10 minutes to buy some

delicious bread to take away. That's why we choose bread as the main product with a

rustic style, serving who work at night or office workers as well as students who want

a quick and easy product.

In order to operate the food stall and serve customers the best beef tacos we can make,

some variable cost and fixed cost are required as follow:

Cost behavior Cost Unit value

Fixed cost Salaries for 2 employees 12,000,000
(1 assistant chef, 1 marketing staff) VND/month
Electricity 2,000,000
VND/month
Water 100,000
VND/ month
Internet 300,000 VND/month
Marketing 3,000,000
VND/month
Accumulated depreciation of equipment 1,000,000
VND/month
Online food stall initialization and 250,000 VND/month
maintenance fee (for 2 e-commercial
platforms Shopee food, Baemin)
 Ingredients (*) 9,870 VND

Variable cost Utensil & packaging 1,000 VND/serving

Commission for ecommerce platforms 10% selling
(Shopee Food, Baemin) price/serving

2. Selling price per unit

Belongs to the Food and Beverage industry, “ Bánh mỳ dân tổ” ’s selling price should
be determined following F&B pricing method. Based on the formula Price = Cost of
meal ingredients x “Cost plus” multiple and market-based pricing strategy, the selling
price per “Bánh mỳ dân tổ" could be calculated and considered as follow:

Name Quantity PU Cost per PU (VND) Cost (VND)

Bread 1 50 loafs 90,000 1,800 VND

Pate 20g Can (500g) 60,000 2,400 VND

Cucumber 20g 1000g 20,000 400 VND

Sausage 25g Packet (500g) 38,000 1,900 VND

Egg 1 egg (10 eggs) 30,000 3,000 VND

Cilantro 10g 500g 8,000 160 VND

Cooking oil 5ml Can(1000ml) 42,000 210 VND

Cost per serving 9,870 VND

Our target customer are located in Hanoi. Thus, we conducted a survey with some
well-known Bread restaurant in Hanoi offering the same product to have an overview
of:

Company name Price

Tuli Bread 20.000 - 50.000 VND
Bánh mì bà Dần 20.000 - 30.000 VND
HTX thịt xiên nướng 10.000 - 30.000 VND
Bánh mì Minh Nhật 32.000 VND
Bánh mì thịt nướng Đức Long 10.000 - 40.000 VND
Bánh mì bơ mật ong & thịt xiên nướng 3.000 - 50.000 VND
Bánh mì Vui 12.000 - 35.000 VND
Bánh mì phố cổ 15.000 - 35.000 VND
Bami Bread 19.000 - 35.000 VND
Bánh mì Phố 25.000 - 50.000 VND
Bánh mì Lãn Ông 15.000 - 35.000 VND

First, based on the F&B pricing formula, a newly online small restaurant like ours
should have the “cost plus” multiple equal to 3 to 5. Thus, the selling price should be
9,870 x 3/4/5 = approximately 30,000/40,000/50,000 VND. Second, based on the
market price, the price should be 35,000 VND to ensure the competitiveness of this
popular product. From 1st and 2nd analyses, the determined price is 35,000
VND/serving.

3. Annual break-even point:

Fixed cost
= (Electricity + Water + Accumulated Depreciation of Equipment + Staff salaries +
Internet + Marketing + Online food stall initialization and maintenance fee) x12
months
= (2,000,000 + 100,000 + 1,000,000 + 12,000,000 + 300,000 + 3,000,000 +
250,000)x12
= 18,650,000 x 12 = 223,800,000 VND/per year

Contribution margin per unit = Selling Price per unit - Variable Cost per unit
= 35,000 - (9,870+1,000+ 35,000 x 10%) = 20,630 (VND)

Contribution Margin per Unit

Contribution Margin Percentage ¿ x 100
Selling Price per Unit
20,630
= 35,000 x 100 = 58,94%

¿ costs
Annual Break-even Units = Contribution Margin per Unit
223,800,000
= 20,630
= 10,848 (servings)

¿ costs
Annual Break-even Revenue = Contribution Margin percentage
 223,800,000
= 58 , 94 % = 379,708,177 (VND)

According to the calculation above, the annual break-even point of L’heritage hotel
bread is 10,848 servings in units and 379,708,177 VND in revenue. These numbers
also mean that if we want to achieve the annual break- even point, we need to sell at
least 10,848/365 = 30 bread serving/day.

4. New Break-even points

If there is a requirement of 30,000,000 vnd of profit for this year, new break-even
points should be as follow:
¿Costs+Target Profit
New Annual Break-even Units =
Contribution Margin per Unit
223,800,000+30,000,000
= = 12,302 (servings)
20,630

¿ costs+Target Profit
New Annual Break-even Revenue =
Contribution Margin percentage
223,800,000+30,000,000
= 58 , 94 %
= 430,607,397 (VND)

So if this year we can sell 12,302 servings of breads, we are able to achieve a profit
of around 30,00,000 VND. In other words, we can gain the Annual Break-even
Revenue of around 430,607,397 VND.

5. First year income statement

BÁNH MỲ DÂN TỔ
INCOME STATEMENT
31 DECEMBER 2022
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
Sale
Revenu 3325 3423 3878 4235 3850 3738 4357 3545 3573 4504 4438 3850 46718
e 0000 0000 0000 0000 0000 0000 5000 5000 5000 5000 0000 0000 0000
Less
variabl 1365 1405 1592 1738 1580 1534 1789 1455 1467 1849 1822 1580 19181
e costs 1500 3860 1960 7700 7000 7160 0650 6810 1770 4190 1160 7000 0760
Contrib
ution 1959 2017 2285 2496 2269 2203 2568 2089 2106 2655 2615 2269 27536
margin 8500 6140 8040 2300 3000 2840 4350 8190 3230 0810 8840 3000 9240
Less
fixed 1865 1865 1865 1865 1865 1865 1865 1865 1865 1865 1865 1865 22380
costs 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000
Operati 9485 1526 4208 6312 4043 3382 7034 2248 2413 7900 7508 4043 51569
ng
income 00 140 040 300 000 840 350 190 230 810 840 000 240

Notes

JUL OC
JAN FEB MAR APR MAY JUNE Y AUG SEP T NOV DEC TOTAL
Quantity 128
Sold 950 978 1108 1210 1100 1068 1245 1013 1021 7 1268 1100 13348

* Sale Revenue = Selling Price x Units Sold

* Price per Unit = 35,000 (VND)
* Variable Cost per unit = Ingredients + Utensil & packaging + Commission for
e-commerce platforms = 9,870 + 1,000 + 35,000 x 10% = 14,370 (VND)
* Fixed Cost per month = 223,800,000/12 = 18,650,000 (VND)
* Operating Income = Sales Revenue - Variable Cost - Fixed Cost
According to the Income Statement for the year 2021, our business did gain a profit of
51,569,240 VND without loss in any month. The sales increase in cool and winter
weather because of the typical feature of the bread and gradually decrease in the
summer. The Contribution Margin of each month has already been higher than the
Fixed Cost. This is considered a favorable situation with developing potential.