Six students have an idea to start a business called Pack-ITS that would provide healthy lunches to elementary schools. They plan to invest $25,000 and work 10 hours per week each. Key issues are whether the business is viable given their limited time investment and whether $25,000 will be enough capital. For the business to be profitable, they need to sell over 41,666 lunches to break even.

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Case synopsis:
6 students are fidgeting over their idea of new
venture “Pack-ITS” . Its an idea about serving
healthy lunch to the elementary schools in Ontario,
London . They can only invest 10 hours a week
each partner with the Investment of 25,000$
Key issues :
 1.Whether they should start the business or not
 2. Would 25000$ would be enough to venture it , with a loss.
 Minimum administration required is 80 hours where they can
only spend 60 hours a week.
 Lack of experience
OBJECTIVE :
Work only for 10hours a week per
partner & encash profit $6000 for 10
months operations
Company Background:
6 management students are fidgeting over their idea of new venture “Pack-ITS”
. Its an idea about serving healthy lunch to the elementary schools within
Thames Valley District School Board in Ontario, London .
TARGET GROUP
Working parents &
Health conscious families –
with children in
schools
Total Market :
154 elementary schools
Average no. of students -400
Total no. of students- 61600

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RECOMMENDATION:
 Hiring an administrative
assistant would help
them to encourage the
venture .
 Pricing the product b/w
3$- 3.2$ for large
volume sales.
 Taking loan for better
investment .
 Target Councils for
parents & local
parenting magazines for
advertising.
BREAK EVEN ANALYSIS:
Fixed cost : 87500$
Variable cost : 2.9 $
Selling price /unit : 5.00$
BREAKEVEN POINT (UNITS):
87500
(5.00-2.9)
= 41666(APPROX)
Expenditure Cost ($)
Salary 36,000
Rent 18,000
Marketing 3,500
Operating 30,000