Please help me answer the 3 questions, asked below. SYNTHESIS Refreshing beverages such as fruit sha

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Please help me answer the 3 questions, asked below.

SYNTHESIS

Refreshing beverages such as fruit shake and smoothies have become the quickest way to beat the heat, especially during dry season. Over the last two years, Pearly Shake has become known as a quench thirst for people living near Galas Market. With its affordable beverages ranging from ₱25.00 for the regular size shake and ₱30.00 pesos for large size shake with a topping of your choice. According to Ms. Analyn Lim, owner of Pearly Shake, her business makes ₱ 15,000 to ₱17,000 average sales per day. Pearly Shake offers variety of flavors (in powdered form) such as bubblegum,double-dutch, strawberry, vanilla, chocolate and ube.

As what the owner have said “a micro-scale business do not require much investment, an entrepreneur can start his own business with a small capital. Nowadays, customers have high tend to consumption product of milk and sugar but they have few choices to choose from so I set-up Pearly Shake try to create the demand for my customers”.

In addition, Analyn Cheng employs three personnel for her business. She pays them ₱ 250.00 per day inclusive of free breakfast, lunch, and dinner. Ms. Cheng usually travels from Galas Quezon City to Divisoria, once a month to buy powdered shake flavors, straws, plastic cups, sugar, cream, whole milk.

POINT OF VIEW

This final paper will take the point of view of Pearly Shake’s owner, Analyn Cheng.

STATEMENT OF THE PROBLEM

This paper’s approach emphasizes the importance of CVP analysis and how it ties directly into planning and control processes management must take in order to manage a successful business.

Question 1: In order to manage Pearly Shake successfully: How can Ms. Cheng fully improve the its pricing system?

QUESTION 2: Using the below information, determine the number of shakes you will need to sell to break even.

DIRECT MATERIAL INGREDIENTS

Small (8 oz. size)

Large (12.oz size)

Condensed Milk (₱ 41. 50 for 300 mL)

20mL or 0.676 fluid ounce

30 mL or 1.017 fluid oz

Sugar (₱500.00 for 15 lb bag = 30 cups)

1/2 cup of sugar

3/4 cup of sugar

Flavorings

.25 per shake

.40 per shake

Specialty Straws

.75 straw

.75 straw

Cups (100 8 oz. cups at a cost of ₱150.00)

Cups (100 12oz. cups at a cost of ₱185.00)

Fixed cost:

Rental Fee: ₱5,000 a month

Cleaning and other miscellaneous supplies

₱2,000 a month

Equipment: Industrial Milk Shake Maker:

₱2,500 per machine X 3 machine = ₱ 7,500

Equipment: Refrigerator : ₱4,500

Licenses and permits: ₱1,050 a year

Owner's salary: ₱180,000 a year

Employees

Three full-time employees: each receiving a daily salary of ₱250.00

Question 3: Should Ana fully focused her time on this business?

OBJECTIVES

•         To create a strong product awareness.

•         To achieve an increasing number of loyal consumers.

•         To maintain a positive, strong growth of the micro-enterprise each year.

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