Business Proposal

A Performance Task for the 4th Quarter

Submitted in Partial Fulfillment

of the Requirements in
Basic Calculus 11

Prepared By:

Jornales, John Ivan

Sagun, Junias Cairos R.
Alday, Nikki Fellyne
De Torres, Daniella
Villanueva, Hyacinth Anne

Prepared for:
Marlon L. Atienza
Subject Teacher

2023

Prepared by: AbacaBlooms Corporation

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Company Introduction:

AbacaBlooms is the premier destination for sustainable and nature-inspired creations. We

are committed to creating exquisite products with the finest abaca fibers sourced locally to

support communities and promote eco-conscious living. At AbacaBlooms, we believe that

elegance and sustainability can coexist, and our dedication to quality and environmental

responsibility sets us apart.

Our primary goal is to showcase and highlight the beauty and craftsmanship of furniture,

basketry, and accessories made from indigenous fibers, with a focus on the sustainable and

versatile material abaca. We strive to connect buyers with products that align with their desire to

make environmentally friendly decisions, providing a variety of aesthetically pleasing and eco-

conscious options.

Let us embrace the beauty of indigenous fibers, support sustainable practices, and make

environmentally conscious decisions with AbacaBlooms Corp.

Mission

Our mission is to provide sustainable and premium quality eco-friendly organizers made

out of abaca, a versatile natural fiber. We aim to serve our customers together with our

commitment and determination. Aside from providing space organization, our high-quality

products ought to promote local economies and the environment.

Vision

Our vision is to be the leading brand company with the most trusted products in the

industry. To enhance the product industry by consistently delivering creative, excellent goods

that go above and beyond customer expectations.

PRODUCT OVERVIEW

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 Introducing our newest product, the Abaca Organizers, which are designed to add

functionality as well as natural beauty to your home or office space. These organizers are

handcrafted with precision and care from sustainable abaca fibers, making them an eco-friendly

choice for environmentally conscious customers.Abaca, also known as Manila hemp, is a durable

and renewable plant fiber derived from the Musa textilis plant. Our skilled artisans harvest and

weave the abaca fibers with care to create sturdy and long-lasting organizers that can withstand

daily use while remaining elegant.

The Abaca Organizers are available in a variety of sizes and designs to meet your

particular needs. Each piece, from desk organizers to storage baskets, is carefully handmade to

provide efficient storage solutions while also adding a touch of natural charm to your

surroundings. The intricate weaves and patterns on the organizers demonstrate the versatility of

abaca as a material as well as the artistry of our skilled craftsmen. Aside from their aesthetic

value, these organizers are practical and functional. Abaca's natural fibers provide a breathable

and lightweight structure that allows air circulation and prevents moisture buildup. Because of

this, they are ideal for storing a variety of items, such as office supplies, cosmetics, accessories,

and household essentials.

Furthermore, the Abaca Organizers are portable and easily collapsible, allowing for

convenient storage when not in use. Their adaptability allows you to arrange and customize your

storage space to your liking, assisting you in maintaining a clutter-free environment. We

prioritize sustainability in all aspects of our manufacturing process. We reduce our

environmental impact and contribute to the preservation of our planet by using abaca fibers,

which are a renewable resource. We also work hard to help the communities where the abaca is

sourced, ensuring fair trade practices and providing artisans with fair wages and safe working

conditions.

Abaca Organizers

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PRODUCT PROFITABILITY

This has a fixed cost of ₱10 000, a variable cost of ₱80 per unit, and a price represented

by the demand function 500 – 2x, where x is the number of units in demand.

0. Cost Function

- Cost: total cost of producing output

- Fixed cost refers to the cost of a business expense that doesn’t change even with an

increase or decrease in the number of goods and services produced or sold.

- Variable cost is a corporate expense that changes in proportion to how much a

company produces or sells.

C(x) = F + Vx F = Fixed cost: Php 10 000

= 10 000 + 80x V = Variable cost per unit: Php 80

x = No of units produced and sold

I. Revenue Function

- Revenue, also called income, is the total amount of money brought into the company

R(x) = px p = Price per item: 500-2x

R(x) = (500 - 2x) x x = No. of units produced and sold

R(x) = 500x - 2x2

II. Profit Function

- Profit is a financial gain, especially the difference between the amount earned and the

amount spent in buying, operating, or producing something.

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 P(x) = R(x) - C(x) R(x) = Revenue Function: 500x - 2x2

P(x) = 500x - 2x2 - (10 000 + 80x) C(x) = Cost Function: 10 000 + 80x

P(x) = -2x2 + 500x - 80x - 10 000

P(x) = -2x2 + 420x - 10 000

Through the functions above, we can obtain the following values:

Units Revenue Cost Profit

0 ₱0 ₱10 000 – ₱10 000

50 ₱20 000 ₱14 000 ₱6 000
100 ₱30 000 ₱18 000 ₱12 000

150 ₱30 000 ₱22 000 ₱8 000

200 ₱20 000 ₱26 000 – ₱6 000

250 ₱0 ₱30 000 – ₱30 000

The graph for these functions is presented below wherein The green graph represents the

cost function, the red graph represents the revenue function, and the blue graph represents the

profit function.

PRODUCT MARGINAL ANALYSIS

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 Using the functions from the Product Profitability, we can conduct the Product Marginal

Analysis.

C(x) = 80x+ 10,000 R(x) = 500x − 2x2 P(x) = −2x2 + 420x − 10,000

I. Marginal Cost Function (MC)

- Marginal Cost refers to the increase in production costs generated by the production of

additional product units.

MC = C'(x)

C(x) = 80x+ 10,000

C'(x) = d/dx (80x+ 10,000)

C'(x) = d/dx (80x) + d/dx (10,000)

C'(x) =80

Therefore, MC = 80

II. Marginal Revenue Function (MR)

MR = R'(x)

R(x) = 500x − 2x2

R'(x) = d/dx (500x − 2x2)

R'(x) = d/dx (500x) - d/dx (2x2)

R'(x) = 500 - 4x

Therefore, MR = 500 - 4x

III. Marginal Profit Function (MP)

MP = P'(x)

P(x) = −2x2 + 420x − 10,000

P'(x) = d/dx (−2x2 + 420x − 10,000)

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 P'(x) = d/dx (-2x2) + d/dx (420x) - d/dx (10,000)

P'(x) = -4x + 420

Therefore, MP = -4x + 420

The graph for these functions is presented below wherein the blue graph is the marginal

cost function, the red graph is the marginal revenue function, and the green graph is the

marginal profit function.

CONCLUSION

To find the number of units x which produces the maximum profit, we need to find the

extreme points of the profit function. Using the marginal profit function as the first derivative of

the profit function and finding its critical points.

d/dx (−2x2 + 420x − 10,000)

= -4x + 420

-4x + 420 = 0

-4x = -420

-4x ÷ -4 = -420 ÷ -4

x = 105

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 −2x2 + 420x − 10,000

−2(105)2 + 420(105) − 10,000

= 12, 050

In conclusion, 105 units of abaca organizers will produce the maximum profit of ₱12

050.

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 REALIZATIONS

AND

PEER EVALUATION

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REALIZATIONS / REFLECTIONS

Alday, Nikki Felynne Q.

"Derivatives often call for complicated mathematical models and pricing procedures.

Derivatives study can help you appreciate the mathematical principles and procedures utilized in

pricing, valuation, and risk assessment. Understanding the mathematical complexities of

derivatives helps improve one's analytical and problem-solving abilities. Derivatives play an

important role in risk management for companies. Derivatives can be used by businesses to

protect themselves against changes in prices in commodities, currencies, interest rates, and other

underlying assets. This allows businesses to better manage their costs, secure their margins of

profitability, and plan future business operations. Considering and making different points of

view, knowledge, and abilities within the group results in a broad project with effective solving

issues. Also, knowing the value of specific roles and tasks contributes in ensuring accountability

and a smooth process. Effective time management, handling conflicts tactics, attention to detail,

and recognizing objectives and overcomes all contribute to the successful completion of this

task."

De Torres, Daniella Nicole S.

"In the realm of business, it has become increasingly evident to me that a deep

understanding of product profitability and the application of marginal analysis are vital

components when proposing a new venture. These aspects not only provide invaluable insights

into the financial viability of a product but also aid in making informed decisions that can steer

the business towards success. Moreover, I have come to recognize the critical role played by

differentiation or derivatives in achieving sustained profitability and long-term growth.

First and foremost, comprehending product profitability is essential in assessing the

financial health of a business proposition. By analyzing the costs associated with producing and

selling a product, one gains insights into its revenue potential and overall profitability. This

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understanding helps in evaluating the feasibility of the business idea and facilitates the

identification of potential obstacles or areas for improvement. Without a clear grasp of product

profitability, it becomes challenging to devise effective strategies, allocate resources wisely, or

make accurate financial projections. As the adage goes, "You can't manage what you can't

measure," and profitability is an essential metric for effective management.

Additionally, derivatives play a vital role in maximizing profitability and leveraging

existing resources. A well-executed derivative strategy can mitigate the risk associated with

relying solely on a single product, diversifying revenue streams, and ensuring business

resilience.

In conclusion, the realization of the importance of product profitability and marginal

analysis in proposing a business is crucial for making informed decisions, assessing financial

viability, and ensuring sustainable growth. These tools enable entrepreneurs and business leaders

to evaluate profitability, optimize resource allocation, and determine the most effective pricing

strategies."

Jornales, John Ivan R.

"With the help of derivatives, firms can spread out their risk and possibly increase earnings.

Additionally, they increase capital effectiveness, allowing for leverage and freeing up cash for

other uses. But it's essential to comprehend and control the complexities and hazards related to

derivatives. Derivatives enable firms manage risks, find pricing, access money, and increase

capital efficiency, all of which contribute to their success and financial stability. Building a

strong team, managing finances wisely, acting morally, and taking measured risks and

maintaining persistence and resilience are all critical factors in achieving success in the dynamic

business world."

Sagun, Junias Cairos

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 "I realized that derivatives have an important role in the development of a business proposal

by providing critical insights and analysis that can determine the proposal's success or

profitability. By using derivatives, businesses can manage and mitigate financial risks associated

with price fluctuations, interest rates, or currency exchange rates, among other factors. It can

provide valuable information on potential risks and returns in a context of a business proposal.

Derivatives, for example, can be used to avoid against market price volatility, ensuring that the

business can lock in favorable prices for its inputs or outputs. This enables the proposal to

account for potential risks and uncertainties, resulting in a more robust and reliable proposal.

Furthermore, derivatives allow businesses to evaluate and manage risks, improve financial

planning, and provide a comprehensive assessment of a business proposal's potential success or

profitability. Businesses can make more informed decisions and present a compelling case for

the viability and financial prospects of their proposals by applying derivatives to analyze market

dynamics and incorporate risk management strategies."

Villanueva, Hyacinth Anne

"As I cooperate in making this assigned performance task, I realized that utilizing derivatives

to maximize their effectiveness in risk management companies can take charge of uncertainties

and protect the profitability of the business. It demonstrates a careful approach to risk prevention

and positions the company for long-term success and growth by including derivatives in a

business proposal.By including derivatives in a business proposal, a business may prepare its

own strategic advantage and adaptability in a rapidly changing competitive marketplace.In

addition to offering risk management solutions, the use of derivatives creates new opportunities

for strategic choice-making and business improvement."

PEER EVALUATION

Alday De Torres Jornales Sagun Villanueva

Alday * 30 30 30 30
De Torres 30 * 30 30 30
Jornales 30 30 * 30 30
Sagun 30 30 30 * 30
Villanueva 30 30 30 30 *

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