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Third Form Project

Sam and Philicia want to start a distribution business selling peanut butter, cornflakes, and ketchup. They have $350,000 to invest with 2:5:3 ratio for each item. The consultant must analyze which sizes of each item to purchase to maximize profits and determine selling prices to make $5,000 profit per item. An analysis of expenses and profit percentages is also required to assess the viability of the business.

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Macheala Hanson
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67 views3 pages

Third Form Project

Sam and Philicia want to start a distribution business selling peanut butter, cornflakes, and ketchup. They have $350,000 to invest with 2:5:3 ratio for each item. The consultant must analyze which sizes of each item to purchase to maximize profits and determine selling prices to make $5,000 profit per item. An analysis of expenses and profit percentages is also required to assess the viability of the business.

Uploaded by

Macheala Hanson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FORM THREE SUMMER PROJECT

Sam and Philicia are planning to start a business. They have decided to invest
in a distribution company that will sell the following grocery items: peanut
butter, cornflakes and ketchup. The amount of their investment is $350,000.00

64oz - $1350 40 oz - $950

32 oz - $714 20 oz - $549

510 g - $1100 411g - $860

They have tasked you as a consultant to help them determine if this will be a
viable business by looking at the items that they should buy as well as the
projected profit of the business and how to maximise their profit.
Task 1:
They need to determine which size of each item to buy and why this would be
the best option to choose. Justify your selection of the best option.

Task 2:
Determine the amount each item must be sold for if they want to make a
$5000 profit on each item, if they are to spend their investment in the ratio
2:5:3 on the three items above respectively.
Task 3:
On the last batch of cornflakes ordered, they sustained a loss of 12 ½% on the
goods bought. Calculate the amount of the loss sustained.

Task 4: Write an expression to show the loss percentage based on the


information in task 3.

Task 5
Sam and Philicia have realized that there are certain expenses that they will
need to pay monthly to operate the business. These include
Salaries: $28,000
Transportation $12,000
Utilities $10, 500
What will be the actual (net) profit percentage made by the business if they
sell all their stock within 2 months? Include a definition for actual profit/loss at
the beginning of this section. Your definition should be your own words.

Instructions:
Each task MUST be clearly labelled.
Students are allowed to present tasks in a creative way Eg: using a powerpoint
All workings must be clearly shown for each task
Students are required to discuss the result of all tasks and to give
recommendations as consultants.
Rubric
Task 1:
Calculations :
 2 marks for each item
 1 mark for statement of choice and why for each item (9 marks)
Task 2
Calculations
 Use of ratio to share 2 marks
 Calculation of price for each item 6 marks
 Use of profit 1 mark (9 marks)
Task 3
Calculations
 Use of percentage 2 marks
 Total Loss 2 marks (4 marks)

Task 4
Calculations
 Valid expression 2 marks
(2 marks)

Task 5
Calculations
 Total expenses 1 mark
 Application to calculate profit 2 marks
 Calculation of profit percentage 2 marks
(5 marks)
Analysis and recommendations
 Recommendations 2 marks
 Validity of recommendations 2 marks (4 marks)

Creativity 3 marks
Presentation 4 marks (7 marks)
Total 40 marks

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