Eagles Nest

Statement of Purpose

The purpose of this report is to analyze whether the store is making profit, and which items are
benefiting the store the most.

Summary of Results

Using the chart, it was discovered that the total cost of the items was $211.84 and the total sales was
$409.00. This means that we receive total profit of $197.16. The margin percentage of all the items
was 48%. This information was taken from the chart on sheet 1.

Profit Made From Each Item

Mars Bar Apple

Banana Snickers Bar
Doritos Pencil
USB Stick Chapstick
Eraser Paper

Detailed Results

Produ Margin
Item ct Total Total Total Percenta
Type Sales Cost Profit ge
Mars $ $ $
Food
Bar 83.75 33.50 50.25 60%
$ $ $
Apple Food
12.50 6.25 6.25 50%
$ $ $
Banana Food
11.00 6.60 4.40 40%
Snicker $ $ $
Food
s Bar 31.25 12.50 18.75 60%
$ $ $
Doritos Food
24.00 7.20 16.80 70%
School
Pencil Supplie $ $ $
s 1.50 0.30 1.20 80%
USB School
Stick Supplie $ $ $
(4GB) s 60.00 46.62 13.38 22%
School
Chapsti
Supplie $ $ $
ck
s 40.00 29.92 10.08 25%
School
Eraser Supplie $ $ $
s 27.00 4.05 22.95 85%
School
Paper Supplie $ $ $
s 118.00 64.90 53.10 45%

Conclusion

To start off, yes, the store is profitable because the gross margin of all items in the store averaged is
48%. In the pie chart on the right, you can see that the profit made from food compared to school
supplies is almost exactly 50/50. This means that both product types are selling equally well. Although
the product types were even, this was not the case with different products. It can be seen in the graph
that just 2 products, mars bars and paper, are making more than half the profit in the store, although
their margin percentages were not that high. On the other hand, the pencil with the second highest
margin percentage, only made $1.20 of profit, less than 2% percent of the total profit made. This
means that having a high margin percentage doesnt exactly translate to higher profit. A couple of
recommendations to the principle are to start selling more junk food items instead of health items,
because the junk food items create 500% more profit then the healthy foods do. We should also either
decrease the price of pencils to get them selling or completely remove them, because they are a waste
of money and resources. Also, we can try increasing the selling price of paper because everyone
seems to need it and we could make a little more money out of it if we increased the price.