Yalla Momos Case Study of Management Accounting

Index

Sr No. Yalla Momos Case Particulars Page No.

1 Introduction 2

2 Main Issues with Yalla Momos 3

3 Evaluation of Current Financial Performance of Yalla Momos 4

4 Benefits of CVP Analysis to Yalla Momos 6

5 Operating Profit with the help of Contribution Margin Income Statement 7

6 Breakeven and Margin of Safety- Impact of Expansion 8

7 Decision making of opening of the new restaurant and it’s reason’s 9

8 Future course of action 9

9 Sensitivity Analysis 9

10 Impact of profitability if Mr. Goel go for expansion

10

11 Consequences faced if expected sales are not as per the projections.

11

12 Is Profit level of AED 150,000 achievable and realistic?

12

Introduction

Yalla momos was started by Mr. Prashant Goel in 2012. Momo is a type of steamed bun with some form of filling. Momo has become a traditional delicacy in Nepal, Tibet and among Nepalese/Tibetan communities in Bhutan, as well as Sikkim state and Darjeeling district of India. In 2012 only a few joints were offering momos in Dubai and they were only offering them as side dishes. Mr. Goel identified this and started Yalla momos at strategically selected location Al Karama in Dubai and within four years taken it to great heights.

Problems to be discussed

• Main issues with Yalla Momos.

• Evaluating current financial performance of Yalla Momos.

• Benefits of CVP analysis to Yalla Momos.

• Breakeven point of the company in 2015 and 2016. The impact of expansion on breakeven point and margin of safety. To find operating profit of the company.

• Decision making of opening of the new restaurant and it’s reason’s, future course of action and impact of profitability if they go for expansion,

• Consequences faced if expected sales are not as per the projections.

• Is profit level of AED 150,000 achievable and realistic?

Main Issues with Yalla Momos