PRINCIPLES OF

ACCOUNTS
SBA

Names/Registration Number
Orane Cassanova 1000200490
Shaniky Davis
Subject: Principles of Accounts
School: Clarendon College
Teacher: Mrs. A. Smith-Clayton
Examination Year: 2021

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 TABLE OF CONTENTS

Title Pages

Research Topic 3

Objectives 4

Background/Overview 5-6

Methodology/Data Collection 7

Limitations 8

Presentation and Analysis of Data 9-14

Recommendations 15

Conclusion 16

Bibliography 17

Appendix 18-21

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 RESEARCH TOPIC

An investigation on the impacts of high prices on the sales and profitability of the school

cafeteria during the Christmas term.

3
 OBJECTIVES

The following objectives for this research were undertaken:

1. What is the impact of high prices on the sales at the school’s cafeteria?

2. How the impact of high prices affects the profitability of the school’s cafeteria?

4
 BACKGROUND/OVERVIEW

This research was tackled, so as, to figure out if the high prices drastically modified by the

school’s cafeteria is affecting its profitability as well as the effect the inconsiderate prices have

on students. The research was conducted from October 1st to October 30th in 2020. The

researchers found this topic to be extremely relevant because of the constantly growing prices at

the school’s cafeteria, consequently the researchers wanted to figure out if the students were

accepting of the prices or preferred the option of other places of purchase. Additionally, the

curiosity of the researchers was enhanced because the cafeteria prices escalate at the beginning

of every school term with no clarification given as to why this is the case.

The cafeteria has been in operation at this location since 2010 to 2020 for a period of 10 years. It

was started by four past students of the institution by the names Ean Kelly, Carlton Samuel, Lud

Lowe and Hugh Gordon. Some of the items in which they offer include Patties, Chicken and

Chips, Coca Cola, Cinnamon Roll and Bun and Cheese. It currently has sixteen (16) employees

and is a private limited company. According to the authors David Austen, Doreen Ellis, Estellita

Louisy, Seema Deosaran-Pulchan and Jacqueline Halls-Bryan (2015) a limited company is an

organization owned by its shareholders, whose liability is limited to their share capital.

According to the website www.businessessnewsdaily.com the advantages of a limited company

include personal liability protection, business security and continuity, and easier access to capital

while the disadvantages include it being time-consuming, subject to double taxation, and having

rigid formalities and protocols to follow. According to the author Edward Bahaw (2011), as the

price of a good or service is lowered, consumers would demand a larger quantity while as the

price of a good or service is increased, consumers would demand a smaller quantity. Therefore,

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students would bring home-made lunches or purchase food at other places in this instance,

causing losses to the cafeteria.

Students being implored to pay higher prices is of utmost inconvenience as students were

already finding it difficult to pay before prices increased. However, this further supplicates the

burden to students of whom parents are unemployed, resulting in loss of profit and reduced sales

to the cafeteria. The topic is also of extreme interest to the researchers as it is desired that

budgeting practices are implemented by the students so, as to ensure that they get the best value

for their money. The researchers hope that the findings of their investigation will be considered

by the school’s cafeteria as they aim to make better prices in the future. Also, it is of great

importance to the researchers that they get a more knowledgeable understanding on the impact of

high prices on consumer demand, in which they need to apply proper money management skills

when they make their daily transactions.

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 METHODOLOGY/DATA COLLECTION

The researchers utilized both primary and secondary sources to collect information for the SBA:

Primary Sources- the primary sources that were utilized include questionnaires and interview.

These sources were chosen as they proved to be more effective as information could be collected

directly from a person involved in the business operation at the cafeteria and from students who

attended the institution.

There was a total of ten questionnaires distributed to students on October 10th, each containing

ten questions. The participants were randomly selected. The interview took place on October 15th

specifically with the manager of the cafeteria. The manager of the cafeteria was chosen because

that person was considered the most suitable person to provide the required information. Data

collected from both primary sources will be represented by using graphs and charts.

Secondary Sources- the secondary sources that were utilized include textbooks and internet.

These were chosen as they contained more accurate information in certain aspects of the SBA.

These were also convenient and easy to access.

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 LIMITATIONS

In carrying out this research there was a number of limitations that were faced:

1.) Some students had difficulty accessing the questionnaires online due to the lack of

internet.

2.) Due to the corona virus pandemic, there was limited interaction which prevented the

questionnaires to be issued face-to-face and provided difficulty in contacting the persons

who operated the cafeteria.

3.) The responses from the interview lacked detail which prevented the researchers from

carrying out a comprehensive research.

4.) The questionnaires were not returned in a timely manner.

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 PRESENTATION AND ANALYSIS OF DATA

Questionnaires

The graph below shows the percentage of students who are advocates of the school’s cafeteria.

According to the results, 20% of the students chose always, 40% chose sometimes, 10% chose

often, 20% chose rarely and 10% chose never.

Pie Chart Showing Results for the Advocates of the

10%
20%

20%

10%
40%

Always Sometimes Often Rarely Never

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The graph below demonstrates the percentage of students who thinks that food served at the

cafeteria are adequately prepared. According to the results, 20% of the students selected agree,

20% selected strongly agree, 20% selected disagree, 20% selected strongly disagree and 20%

selected neutral.

Bar Graph Showing Results on the Quality of the

20% 20% 20% 20% 20%

15%

10%

5%

0%
Agree Strongly Agree Disagree Strongly Neutral
Disagree

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The graph below depicts the percentage of students who thinks they get value for their money

when they shop at the cafeteria. According to the results, 20% of the students responded never,

30% responded rarely, 20% responded often, 20% responded sometimes and 10% responded

always.

Bar Chart Showing Results on the Value of Money's

Never 20%

Rarely 30%

Often 20%

Sometimes 20%

Always 10%

0% 5% 10% 15% 20% 25% 30% 35%

Bar Chart Showing

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The chart below illustrates the percentage of students who responded to the question if the

increase in the cost of cooked food at the cafeteria affects whether they buy or not. According to

the results 30% responded that they agreed, 40% strongly agreed, 10% disagreed, 10% strongly

disagreed and 10% neutral.

Pie Chart Showing if Cost Affects Purchase at the Cafete-

Agree Strongly Agree Disagree Strongly Disagree Neutral

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Interview

The chart below indicates the different lunch box sizes provided at the school’s cafeteria.

Pie Chart Showing the Different Lunch Box Sizes

20% 20%

60%

Small Medium Large

1. What are the different lunch box sizes provided at the school’s cafeteria?

The school’s cafeteria provides three variations of lunch box sizes: small, medium, and

large. Sixty percent of the school’s cafeteria purchases the medium lunch box size,

twenty percent for the small lunch box size and twenty percent for the large lunch box

size. More students purchase the medium lunch box size as it offers a less expensive

alternative to the large lunch box size and a decent quantity compared to the small lunch

box size.

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The chart below indicates the profit level of the school’s cafeteria on different lunch box sizes

over a two week’s period.

Chart Showing The Profit Level of Each Lunch Box Sizes Over a
Two Week's Period
$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
Week 1 Week 2

Small Lunches Medium Lunches Large Lunches

2. What is the profit level of the cafeteria over a two week’s period?

Profit made on the small sized lunches in week one was $33,000 which decreased to

$28,600 in week two. Medium sized lunches made a profit of $65,000 in week one while

in week two a profit $58,000. Large sized lunches had a profit of $45,000 in week one

but decreased to $32,000 in week two.

Profits decreased during week two because:

1. Only 5th and 6th formers came to school for two days in the week.

2. The flavor of the food was unappetizing.

3. The prices were increased during the week.

4. Competition from other food places.

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 RECOMMENDATIONS

Based on research done the researchers would like to make the following recommendations:

1. Lower the prices to more affordable prices to students.

2. Improve the flavor of cooked food served at the cafeteria.

3. Provide better customer service to the students.

4. Find alternative food choices to the students of the institution preferences.

5. Create effective time periods for the collection of lunches between different forms to

prevent congestion and long lines.

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 CONCLUSION

The impacts of high prices on the sales and profitability of the school cafeteria were investigated

during the Christmas term. It can be further concluded that the high prices have negative impacts

on the sales and profitability of the school’s cafeteria. This is based on a two week’s evaluation

on the profit level of each lunch box sizes by the manager of the cafeteria. It was discovered that:

 The profit on the small lunches decreased from $33,000 to $28,600.

 The profit on the medium lunches decreased from $65,000 to $58,000.

 The profit on the large lunches decreased from $45,000 to $32,000.

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 BIBLIOGRAPHY

David Austen, Doreen Ellis, Estellita Louisy, Seema Deosaran-Pulchan and Jacqueline Halls-

Bryan. “Principle of Accounts for CSEC”. Principle of Accounts for CSEC. Oxford: Oxford

University Press, 2015.

Schooley, Skye. Advantages and Disadvantages of a Corporation – businessnewsdaily.com.

September 10, 2020. <www.businessnewsdaily.com>.

Bahaw, Edward. “CAPE Economics: Comprehensive Economics for Caribbean Students Unit 1,

2nd edition”. CAPE Economics: Comprehensive Economics for Caribbean Students Unit 1, 2nd

edition. Gulf View: Caribbean Educational Publishers, 2011.

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 APPENDIX

QUESTIONNAIRE

Instruction- Please tick the most appropriate response to the question asked.

Gender [ ] M [ ] F

Age 12-14 [ ] 15-17 [ ] 18-20 [ ]

Grade 1st [ ] 2nd [ ] 3rd [ ] 4th [ ] 5th [ ]

1.) I am an advocate of the school’s cafeteria.

Always [ ] Sometimes [ ] Often [ ] Rarely [ ] Never [ ]

2.) I order cooked meals from the school’s cafeteria.

Always [ ] Sometimes [ ] Often [ ] Rarely [ ] Never [ ]

3.) Cooked meals from the school’s cafeteria are adequately prepared.

Agree [ ] Strongly Agree [ ] Disagree [ ] Strongly Disagree [ ] Neutral [ ]

4.) What motivates your continuous support of cooked meals distributed at the cafeteria?

Taste [ ] Price [ ] Quantity [ ] Customer service [ ]

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 5.) Do you think that the school’s cafeteria has restricted food alternatives as it relates to

food choices?

Always [ ] Sometimes [ ] Often [ ] Rarely [ ] Never [ ]

6.) When you order food at the school’s cafeteria do you think you get the value of your

money’s worth?

Always [ ] Sometimes [ ] Often [ ] Rarely [ ] Never [ ]

7.) Have you ever been a victim of substandard consumer service as it relates to buying

cooked meals at the school’s cafeteria?

Yes [ ] No [ ]

8.) Has being a victim of substandard consumer service at the school’s canteen influenced

your support as a victim?

Yes [ ] No [ ]

9.) Long lines are an issue as it relates to us getting our cooked meals in the allotted lunch

time.

Agree [ ] Strongly Agree [ ] Disagree [ ] Strongly Disagree [ ] Neutral [ ]

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 10.) Increase in the costs of cooked food affects whether I buy or not.

Agree [ ] Strongly Agree [ ] Disagree [ ] Strongly Disagree [ ] Neutral [ ]

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 INTERVIEW

1. What are the different lunch box sizes provided at the school’s cafeteria?

2. What are the price ranges for the different box lunches offered?

3. How many lunches are sold on an average daily basis?

4. Do you believe that the school’s cafeteria fulfils the demands of students daily?

5. What is the profit level of the cafeteria over a two week’s period?

6. Do you think that the continuous price increases are affecting the cafeteria’s profitability?

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