Econ Poa Pob Sba Benjamin (2)
Econ Poa Pob Sba Benjamin (2)
CHARLIEVILLE.
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Contents
Topic/Issue/Problem.........................................................................................4
Objectives for the SBA.....................................................................................5
Background and Overview...............................................................................6
Methodology....................................................................................................7
Presentation and Analysis of Data...................................................................8
Topic/Issue/Problem
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changes on sales and profitability as well as assess the customer responses
to the new packaging and its impact on purchasing decisions.
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POB Objective – To assess the customer responses to the new packaging and
its impact on their purchasing decisions.
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has led to a steady decline in sales. This decline in sales negatively affected
the business and as of recently, there have been changes made to solve this
issue.
Initially, packaging was not a major focus of The Royal Roti Palace and as the
business grew in size, it became noticeable, and it couldn’t be ignored for
much longer.
Methodology
The goal of Royal Roti Palace is to provide high-quality, fresh and flavorful
rotis along with an array of traditional Indian rotis to a diverse customer
base. The methodology outlines how we achieved our objectives in product
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development, service quality and operation efficiency. To collect the data,
both Primary and Secondary data sources were utilized.
Limitations Faced.
While conducting this study, there were problems and errors which occurred
during this period. One of them being the time taken to distribute the
questionnaire to the people that had access to internet connectivity. Another
problem was that we weren’t able to conduct a yprivate interview with the
customers to gain additional feedback and their thoughts on our decision to
change the packaging.
Economics Objective
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Demand and Supply Curve at Royal Roti Palace. (Old Packaging)
Price ($)
$35
Quantity Demanded
140 Units
Price ($)
D1 D
2
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E1
E2
$35
From these demand curves, we derive that there was an increased demand
when the new packaging was introduced. 140 units were demanded daily at
$35 when the old packaging was in effect, however, with the new packaging,
200 units are being sold daily at the same price of $35. The demand curve
shifted to the right, showing an increase in demand at Royal Roti Palace.
There was an increase of 60 units daily with the new packaging in effect.
POA Objective
Trading and Profit and Loss Account for the year ended 31st December 2023
$ $ $
Sales $100,000
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Less: Sales Returns ($0.00)
Net Sales $100,000
Opening Stock $10,000
Add: Purchases $60,000
Add: Carriage Inwards $2000
Gross Purchases $62,000
Less: Purchase Returns ($0.00)
Net Purchases $62,000
Cost of Goods available for $72,000
sale
Less: Closing Stock ($15,000)
Cost of goods sold ($57,000)
Gross Profit $43,000
Less: Expenses
Carriage Outwards $1,000
Wages $6,000
Insurance $3,000
Packaging $3,000
Total Expenses ($13,000)
Net Profit $30,000
80,000
62,000
60,000
43000
40,000 30000
13000
20,000
0
Net Sales Net Purchases Gross Profit Total Expenses Net Profit
Net Sales Net Purchases Gross Profit Total Expenses Net Profit
According to the Bar Graph above, we can see that Royal Roti Palace made
$100,000 in net sales, followed by $62,000 worth of purchases. The gross
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profit amounted to $43,000 before expenses. After handling the expenses,
the net profit of Royal Roti Palace was $30,000.
Trading and Profit and Loss Account for the year ended 31st December 2024
$ $ $
Sales $500,000
Less: Return Inwards ($0.00)
Net Sales $500,000
Opening Stock $50,000
Add: Purchases $300,000
Add: Carriage Inwards $5,000
Gross Purchases $305,000
Less: Return Outwards ($0.00)
Net Purchases $305,000
Cost of Goods available for $355,000
sale
Less: Closing Stock ($25,000)
Cost of goods sold ($330,000)
Gross Profit $170,000
Less: Expenses
Carriage Outwards $0.00
Wages $30,000
Insurance $5,000
Packaging $5,000
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Total Expenses ($40,000)
Net Profit $130,000
500000
500,000
400,000
305,000
300,000
200,000 170000
130000
100,000
40000
0
Net Sales Net Purchases Gross Profit Total Expenses Net Profit
Net Sales Net Purchases Gross Profit Total Expenses Net Profit
As we can see from the Bar Graph above, Royal Roti Palace’s net sales
significantly increased to $500,000, showing an increase of $400,000 as
compared to last year. The net purchases are worth $305,000, another
increase from last year as well as a higher gross profit of $170,000. After
dealing with $40,000 worth of expenses, Royal Roti Palace’s net profit came
out to be $130,000, which is $100,000 more than 2023.
After comparing the Income Statements shown above for the years 2023 and
2024, we can see that the new packaging strategy led to an increase in
profits from $30,000 to $130,000. This shows that Royal Roti Palace made
$100,000 more in profits in the year 2024 with newer packaging than what
was sold in the year 2023. ($130,000 - $30,000)
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Median Sales - $100,000 Median Sales -
$500,000
POB Objective
Number of Students
Upper 6 0
Lower 6 0
Form 5 13
Form Levels
Form 4 1
Form 3 1
Form 2 0
Form 1 0
0 2 4 6 8 10 12 14
Number of Students
Number of Students
The table and bar graph above shows that majority of our responses came
from the Form 5 Students with 13 responses, followed by Form 4 and 3 with
one response each. All the other forms had zero responses.
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Question 4, showing the impact of purchasing decisions with regards to new
packaging.
Number of Customers
No 1
Response Type
Yes 14
0 2 4 6 8 10 12 14 16
Number of Customers
Number of Customers
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Data from above shows that even if Royal Roti Palace changes their
packaging, it would affect 14 of our customers’ purchasing decisions. Only
one person would change their mind about buying when the change in
packaging occurs.
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Yes No
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We can see that if Royal Roti Palace were to increase their prices after
changing their packaging, 10 customers said that they wouldn’t mind those
decisions, however, 5 customers stated “no” in paying more for the product
with new packaging.
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