Individual Quantitative Literacy Case Study: Financial Calculation of Car Wash, Kebab Van and Coffee Shop

This case study focuses on calculating the financial aspects of the given case study. It includes the calculation of the maximum gross revenue of car wash, kebab van and coffee shop. The study also includes the potential sales revenue of the kebab van and coffee shop.

INDIVIDUAL QUANTITATIVE LITERACY CASE STUDY

Table of Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................2
Task 2...............................................................................................................................................3
Task 3...............................................................................................................................................5
Conclusion.......................................................................................................................................6
Reference list...................................................................................................................................7
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Introduction
The present study is focusing on calculating the financial aspects of the given case study. In the
task one section, the calculation of the maximum gross revenue will be calculated with the
assistance of its financial data. In addition, the task 2 section will calculate the maximum
calculation of kebab van which is related to the car wash. Based on the financial data, the
potential sales revenue of the kebab van will be calculated and understood by the owner.
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Task 1
It is in the case study that the car wash provides 8 hours of services 6 days per week. The total
number of employees is 12 and it takes 20 minutes of wash and 10 minutes of vacuum. In case,
three employees are required for each car wash then a total of four cars will be washed per 30
minutes. In 8 hours, a total of 12 cars can be washed by 12 employees. It can be assumed that
each car wash $10 and vacuum is $4. Therefore, the calculation of maximum profit is described
below:
Particulars Amount
A car wash (64*10) $640
Car vacuum (64*4) $256
Total profit per day $896
Maximum profit for 48 hours
period $5,376
Table 1: Calculation of maximum profit excluding the breaks of employees
(Source: Created by author)
In relation to the above calculation, it has been understood that the car wash service can collect
$896 per day based on 8 hours of working hours. In case each employee works 8 hours
constantly, then 64 cars can be washed per day. Based on the sales amount of $10 per car wash
and $4 per vacuum, the company can earn $896 per day. Therefore, the business can earn in a 48
hours period of $5,376. The calculation including the breaks of each employee is provided in the
below table:
Particulars Amount
A car wash (56*10) $560
Car vacuum (56*4) $224
Total profit per day $784
Maximum profit for 48 hours
period $4,704
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Table 2: Calculation of maximum profit including the breaks of employees
(Source: Created by author)
In relation to the above analysis, it can be seen that the car wash service can collect a high
amount of $728 per day. The management of the car wash is providing 1 hour of a break for all
12 employees. In this regard, the actual working period of the company is 7 hours. In case three
employees can wash one car per 30 minutes then 8 cars can be washed per hour. Therefore, in 7
working hours, the employees can wash 56 cars per day. In case the car wash takes $10 and
vacuum takes $4, then per car wash will help to earn $14 * 56 = $784 per day. In this regard, in a
48 hours period, the business can collect approximately $4,704.
Task 2
It has been seen based on the second case study that a kebab van has been located near the car
wash. The kebab van was active from 12 noon to 2 am 7 days per week. In the van, four
employees are constantly on duty and they are allowed with 1 hour of break. The production
time for each kebab is five minutes. In this regard, the sellers are capable of producing 12 kebabs
per day. It can be assumed that each kebab is 5 dollars. The calculation of maximum gross
revenue is described below:
Particulars Amount
Sales of kebab (5*12) $60
Per day sales (60*14) $840
Gross maximum profit in a 98 hours
period $82,320
Table 3: Calculation of maximum profit excluding the breaks of employees of a kebab van
(Source: Created by author)
In relation to the above calculation, it has been understood that the kebab van can produce 12
kebabs per hour. As the production time is of each kebab is five minutes, so it is impossible to
produce more than 12 kebabs per hour. In addition, it has been understood that the kebab van can
be capable of providing $840 per day. In this regard, in a 98 hours period, the kebab van can be
capable of collecting $82,320 profit. The calculation including the breaks of each employee is
provided in the below table:
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Particulars Amount
Sales of kebab (5*12) $60
Per day sales (60*13) $780
Gross maximum profit in a 98 hours
period $76,440
Table 4: Calculation of maximum profit including the breaks of employees of a kebab van
(Source: Created by author)
The above calculation has clearly described that the business can collect $780 per day. In this
regard, the business can be able to collect $76,440 in a 98 hours period. In this regard, the kebab
van can be capable of maintaining appropriate financial performance per year.
Particulars Amount
Sales of kebab (5*12) $60
Per day sales (60*13) $780
Gross maximum profit in a 98 hours
period $76,440
Gross maximum profit in a 98 hours
periodmaintaining 75 percent efficiency $1,019
Total $77,459
Table 5: Calculation of maximum profit including the breaks of employees of kebab van
maintaining 75% efficiency
(Source: Created by author)
In case the employees in the Kebab van are capable of maintaining 75% efficiency, then per 98
hours, kebab van can earn an extra $1,019 additional benefit. The additional benefit can assist the
kebab van in reducing the cost of employees. Moreover, the kebab van may develop their
business in the upcoming years.
Task 3
In relation to the case study in task three, it has been understood that a coffee shop is also located
near the kebab van and the car wash. The owner of the car wash has recognised that the coffee
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shop is capable of collecting a high amount of profit per year based on their sales. The coffee is
$3.99 dollars and an additional bakery product is $2.54. In an hour, approximately 64 people go
to the shop. Based on that the calculation of the gross profit revenue of this coffee shop given
below:
Particulars Amount
Coffee (64*3.99) $255
Additional bakery product
(64*2.54) $163
Total profit per day $418
Maximum profit for 48 hours
period $2,508
Table 6: Calculation of the maximum profit of the coffee shop
(Source: Created by author)
The coffee shop is capable of collecting 255 dollars per day based on coffee products and 163
dollars based on additional bakery products. In this regard, the business can be capable of collect
$2,508 per 48 hours period. In relation to the above calculation, it has been understood that the
coffee shop may gain a high amount of profit in the upcoming years (Namada, 2018).
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Conclusion
Based on the above discussion, it can be conducted that the car wash is able to collect a high
amount of profit. The task 1 section clearly mentioned that the total number of employees is 12
and it takes 20 minutes of wash and 10 minutes of vacuum. It has been understood that the car
wash service can collect $896 per day based on 8 hours of working hours if each employee
works 8 hours constantly. On the other hand, if Kebab van is capable of maintaining 75%
efficiency, then per 98 hours, kebab van can earn an extra $1,019 additional benefit.
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Reference list
Namada, J.M., 2018. Organizational learning and competitive advantage. In Handbook of
Research on Knowledge Management for Contemporary Business Environments (pp. 86-104).
IGI Global.
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