Class Activity

Business Competition
(Cost –Volume and Profit analysis )

By…Naveed Iqbal Chaudhry

 Offer From Buyer

T & Co. is the main dealer in boats. It has an offer for

all the manufactures in the market to develop boats
for T & Co. for next three years. It will sign contract
with that manufacturer who will follow its
specifications and can manufacture the boats of same
quality according to their model within short period of
time. The normal market price per boat is RS100. The
company has attached an instructions sheet with this
offer.
 Offer From Supplier

In the market N & Co. is only the main supplier of

material to the all boat manufacturers. N & Co will
provide material of one boat for RS 60. As N & Co. is
the key supplier in the market they will charge fixed
price to all manufacturers.
 Instructions
 Arrange your group of 5 members.
 Assign a Business Name to your group.
 Have a group discussion regarding role of each member.
 Practice regarding boat development process according
to sheet given by T & Co.
 Give order and receive material from N & Co.
 You have to manufacture within 10 minutes as many
boats as you can to win the order of T & Co.
 Please each group will complete its performance
evaluation sheet at the end of performance.
 Performance Evaluation Sheet
Name of Cost of Number of Sale price Total Profit or (Loss)
Business Material / Boat Sold per boat Revenue
Sheets Total Revenue- Total Cost
(No X sale
price per
boat )
ASL 600
Sparkle Blue 620
Fire works 360
Pearl 300
Sea Furry 1200
Greenland 600
Milky ways 180
Crabbions 600
Star 900
Learning Outcomes