P.O.

A SBA
Preysal Secondary School
Business cognate subject:
Principles of Accounts
Principles of Business
Economics

School Based Assessment

Group 3:
Dwayne Bhall
Phillip Ramoutar
Karishma Nandlal
Shania Annan
Shania Kanhai
Natalya Esardial
Ravi Rooplal

Student No.
Date Submitted:

0
 Table of contents
Page no.
Problem……………………………………. 2
Background overview……………………... 3
Methodology………………………………. 4
Graph/Analysis of Graph…………………... 5
Analysis of factors that affects demand……. 6-7
Profit and Loss Account……………………. 8-9
Analysis of Profit and loss Account………... 10
Face to Face Interview……………………… 11-12
Analysis of Interview………………………. 13
Financial Statement…………………………. 14
Recommendation……………………………. 15
Conclusion…………………………………… 16

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 Problem

Research topic:
We would be investigating how the retrenchment of workers in the manufacturing
industry has affected the sales of Charmin’s roti shop for the past two (2) years.

Research questions:
1)How did the decrease in industry workers affected the sales of your roti shop?
2)How do you deal with competitors in the area?

2
 Background / overview
The name of the business we would be investigating is Chamin’s Roti Shop. Chamin’s
Roti shop is located at Riverlet Road Couva. Entrepreneur Chamin Kanhai formed this
business to make an honest living and raise their family standard of living, whilst also
providing employment for their community. Chamin’s Roti shop has been in existance for
six (6) years, selling roti to people on the go or just desire. Chamin’s Roti prices range from
$25 to $30, with several roti options where you can choose from.
With the 2017 & 2018 retrenchment, we would like to see how has Chamin sales changed
during and after that period. To see how much Chamin sales have changed for the past two
(2) years, we would be looking at the accounts for the past four (4) years which would
provide us with the information needed. By looking at the accounts for the past four (4) years,
we would see how much was made before the retrenchment, vs how much was made after.

Methodology

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A face to face interview was then conducted with the owner
Chamin Kanhai where was she ask ten (10) questions. With
the owner response, we did a profit and loss account to see
how much sales had changed for the retrenchment period.

Advantage of the interview

You can easily correct yourself when you answer or ask a question. A person may not understand a
question however they can ask the interviewer to explain the question. Also an interviewer and
interviewee can build a relationship through an interview. An interview also creates a mutual
understanding and co-operation between interviewer and interviewee. Explore cause behind the
problem: In business, executives need to solve different types of problems. Interviews may better help
you to explore or find out the actual reasons behind a problem or idea.

 Disadvantage of the interview

Though we may think that persons answered honestly, we could not confirm if they were really
honest.

Analysis of factors that affect their demand

Based on the information collected it can be concluded that most
customers demand breakfast and lunch from Chramin’s Rote Shop
due to factors affecting.

Factors affecting Number of responses

4
Price of good 1
Availability 0
Quality 8
Changes in income 1

Analysis of Interview
From the interview we can clearly see that Charmin’s Roti Shop has been
offering a product to the customers to the last six (6) years. The product is high
demand because of its:
1)Price
2)Taste/ quality
3)Quantity (Size)
It is to be noted that the customer was supporting the business.
The quality of the good had the majority.
However other factors include:
-time

-changes in community population

-price of the good

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 Chamin’s Roti Shop triding Profit and Loss a/c for the
year ending 2016

Sales 890,456

Less Sales Return (Inwards) 0

Total sales 890,456

Less Cost of goods

Opening Stock

ADD Purchase 69,678

ADD Carriage Inwards 0

Less Return Outwards 0

Cost of goods available for sale 0

Less closing stock ( 1500 ) (68,178 )

822,278

Less Expenses

Wages 130,000

Electricity 5,267

General Expenses 700

Insurance 4,000

Water 3,000

Total Expenses 142,967 (142,967)

Net Profit 678,311

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Chamin’s Roti Shop Trading, Profit and Loss a/c for the year
ending 2017

Sales 716,871

Less Sales Return (Inwards) 0

Total sales 716,871

Less Cost of goods

Opening Stock 0

ADD Purchase 62,182

ADD Carriage Inwards 0

Less Return Outwards 0

Cost of goods available for sale 0

Less closing stock ( 500 ) (61,682 )

655,189

Less Expenses

Wages 148,000

Electricity 4,267

General Expenses 700

Insurance 6,000

Water 2,000

Total Expenses 160,967 (160,967)

Net Profit $505,778

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 Chamin’s Roti Shop Trading, Profit and Loss a/c for the year
ending 2018
$ $
Sales 612,878

Less Sales Return (Inwards) 0

Total sales 612,878

Less Cost of goods

Opening Stock 200

ADD Purchase 52,600

ADD Carraige Inwards 0

Less Return Outwards

Cost of goods available for sale

Less closing stock 500 (52,300)

560,578

Less Expenses

Wages 178,120

Electricity 4,216

General Expenses 340

Insurance 3,612

Water 1,120

Total Expenses 187,408 187,408

Net Profit 373,170

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Charmin’s Roti Shop Trading, Profit and Loss account for the
year ending 2019

$ $
Sales 520,000
Less sales return (inwards) 0
Total sales 520,000

Less cost of goods

Opening stock 0
Add purchases 67,600
Add carriage inwards 0
6,600

Less return outwards 0

Cost of goods available for sale
Less closing stock (20)
67,580 (67,580)
$452,420

Less expenses
Wages 156,000
Electricity 5,000
General expenses 295
Insurances 5,000
Water 2,000

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Total expenses 168,295 (168,295)
Net profit $284,125

Bar Chart showing Trading, Profi t and Loss a/c for a four (4)
year period
Gross Profit Exponential (Gross Profit)
Net Profit Exponential (Net Profit)
$900,000.00 $822,278.00
$800,000.00
$700,000.00 $678,311.00 $655,189.00
Gross and net profit

$600,000.00 $560,578.00
$505,778.00
$500,000.00 $452,420.00
$400,000.00 $373,170.00
$284,125.00
$300,000.00
$200,000.00
$100,000.00
$-
2016 2017 2018 2019
years

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 RATIOS
2016:
Gross profit to sales 822,278 x 100 = 92.3%
Sales 890,456

Net profit 678,311 x 100 = 76.1%

Sales 890,456

Expenses 142,967 x 100 =16.1%

Sales 890,456

2017:

Gross profit 655,189 x 100= 91.3%

Sales 716,871

Net Profit 505,778 x 100 = 52.1%

Sales 716,871

Expenses 160,967 x 100 =22.4%

Sales 716,871

2018:

Gross Profit 560,568 x 100 =91.4%

Sales 612,870

Net Profit 373,170 x 100 =60.8%

Sales 612,870

Expenses 187,408 x 100 =30.5%

Sales 612,870

2019:

Gross Profit 452,420 x 100 =87%

Sales 520,000

Net Profit 284,125 x 100 =54.6%

Sales 520,000

Expenses 168,295 x 100 =32.3%

Sales 520,000

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 Analysis of profit and loss account
From the tradind, profit and loss account of 2016 we can see that Chamin’s Roti Shop made $678,311
where as in 2017 there was a decrease of $23,122. Year 2018 sales were also affected by the
retrenchment of 2017 because of the decrease in labour force, which resulted in a decrease in profits.
2019 had the same effect as 2018 with the retrenchment. From these accounts we could clearly see
that Chamin’s Roti shop was heavily affected by the retrenchment of industry workers.

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 Face to face interview:

1)How is sales at the end of a regular working week?

~At the end of a regular working week $10,000 is made.

2)How much money is spent on goods?

~Normally around $1500 is spent on goods.

3)Compared to a normal week how much more goods are

needed to satisfy the demand of food for an event?
~Compared to a normal week $5000 is needed to satisfy the
demand for an event.

4)Is the workplace a clean and friendly environment?

~Yes the workplace is a clean friendly environment.

5)What is number of workers needed to carry out a work day?

~Four workers are needed at the roti shop to carry out a work
day.

6)What is the number of workers needed to carry out an

event?
~Ten workers are needed to carry out the job for an event.

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7)What is the price range of the meals?
~The price range of the meals are offered from $25-$30.

8)Do you provide catering services?

~Yes we do provide catering services.

9) Do you think that the retrenchment of industry workers

affected the sale of your business?
~Yes

10) Based on your customers feedback why do they prefer

your roti shop over others?
~ Due to our reasonable price, good taste, quantity and
friendly staff customers tend to like our roti shop better.

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 Analysis of the interview

From the interview we can clearly see that Charmin’s Roti

Shop has been offering a product to the customers for the last
6 years. The product is high in demand because of its:
 Price
 Taste
 Quantity (size)

It is to be noted that the customers are supporting the

business.

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 Financial statement

From the financial statement of Charmin’s Roti Shop and Bbq

Shack. It can be noted that the café had a stable amount of
sales. However, with the start of sales at Charmin’s Roti Shop
it can be noted that their profit decreased significantly. It
reduces from 30,000 to 20,000 were by Charmin’s Roti Shop
showed a stable profit for the 4 month of 15,000.

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 Recommendation

Based on the study we recommend that Charmin’s Rot Shop

can continue business but can branch out in different locations
where people can get access to the business easily and
advertise the business to increase sales. They can also donate
funds to their community from the profits they earned.

Conclusion

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Based on the information collected that the money earned by
Charmin’s Roti Shop would be used to help offset some of the
cost like advertisement for the business.

The factors that contributed to the success of the business are:

 Price of the good
 Availability of workers
 Long working hours
 Appropriate packaging of the product

The impact of sales of the roti shop by an alternative supplier

is simply to ensure that the customers get proper value for
their money keeping the aim of the donation to achieve the
stated objection.

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