St.

Paul University Surigao

(St. Paul University System)
Cor. San Nicolas and Rizal Streets
Surigao City, Philippines

STATISTICAL ANALYSIS WITH SOFTWARE APPLICATION

GROUP 5
MONTILLA, BAMBIE Y.

ECAT, IVY T. MONTILLA, BAMBOO

MINGLANA, MITCH T.

MIDTERM EXAMS:
Select a thesis project from the library which uses various statistical tools, validate the
statistical tools used, and discuss your own analysis of the appropriate conclusions from
the data using minitab. You are required to submit your report in written pdf form (not
less than 500 words excluding graphs and tables) as well as video presentation.

Thesis Title:
Pricing Cost Analysis as Basis for City Ordinance

of Skipjack Tuna Fish

at Public Market, Surigao City

by:

Ms. Angiely L. Larano & Charmis S. Morales

About the Research/Thesis:

This research is about the price cost analysis where the researcher is intended to study how
the vendor of skipjack tuna fish in Surigao City set their prices on the product. Hence, to do this,
they gather necessary data which includes the direct materials, direct labor and manufacturing
overhead of selected vendor of skipjack tuna fish and then the researcher’s analysis the data to
determine which vendor overpriced or which vendor has a low price on tuna fish.

Moreover, the purpose of the study is to conduct a price cost analysis so that the City
ordinance will be inform and can decide the proper amount to allocate on the product. In the
absence of this, many vendors will eventually set price based on what they want- which is a greater
factor that can greatly affect the customer and other business establishments who buy skipjack tuna
fish. So to address the problem, this research may contribute solution.
 The researcher selected 10 participants (the name of the vendor is not indicated so they just
name using the alphabets)

PARTICIPANTS:

A B C D E F G H I J

35

30

25

20
%
f (n = 10)
15

10

Figure 1: Shows the number of years in business of participants and their respective
percentages

 As to number of years most of 3 or 30% participants belong to 12 years in business.

Majority of the participants belong to twelve years in the business, while the other

participants belong to businesses that are between 5 and 10 years.

Capitalization f(n=10) %
7,000 1 10.00
10,000 5 50.00
11,000 1 10.00
12,000 1 10.00
15,000 1 10.00
20,000 1 10.00
Source of fish Fish landing 100.00
Table 1: Capitalization of the particpants

 As to capitalization most of 5 or 50% participants belong to P 10,000 capital of the

business. As to source of fish majority of participants 10 or 100% is belong to fish

landing. So, the 50% of participants belong to P 10,000 of the business while those who

are in P7,000, P11,000, P 15,000, and P 20,000 capitalization each have 10% of the

participants. Majority of participants belong to P 10,000 capitalization of participants.

 As to source of fish 100% is belong to fish landing.

Cost Analysis in Each Production Cycle of Participant

 Table 2 below showed the results of the total cost of participants A, B, C, D, E, F, G, H, I

and J in each production cycle as to direct materials, direct labor, overhead and mark-up it

would be the basis for their cost as to buy the skipjack tuna fish and the overall total cost.

PARTICIPANTS

A B C D E
Direct Materials:
Skipjack Tuna (Per Box) P 4,800 P 3,300 P 1,200 P 2,400 P 2,000
Ice 2,000 200 150 110 60
Total Direct Material Cost P 6,800 P 3,500 P 1,350 P 2,510 P 2,060

Direct Labor:
Direct Labor Employees P 700 P 60 P 150 P 210 P 150
Total Direct Labor Cost P 700 P 60 P 150 P 210 P 150

Overhead:
Indirect Materials (Packaging Cost):
Cellophane Wrapper P 200 P 60 P 40 P 60 P 75
Others:
Electricity 1,800 1,000 1,800 1,153 1,000
Water Bill 0 0 0 0 0
Rent 600 0 600 600 600
Utilities 3,000 400 200 250 350
Transportation 500 60 250 180 230
Taxes (quarterly) 4,000 600 4,000 1,050.75 1,500
Total Overhead P 10,100 P 2,120 P 6,890 P 3,293.75 P 3,755

TOTAL COST P 17,600P 5,680P 8,390P 6,013.75P 5,965

PARTICIPANTS

F G H I J
Direct Materials:
Skipjack Tuna (Per Box) P 3,000 P 3,000 P 3,000 P 3,000 P 3,000
Ice 110 110 120 150 150
Total Direct Material Cost P 3,110 P3,110 P 3,120 P 3,150 P 3,150

Direct Labor:
Direct Labor Employees P 200 P 200 P 200 P 100 P 200
Total Direct Labor Cost P 200 P 200 P 200 P 100 P 200

Overhead:
Indirect Materials (Packaging Cost):
Cellophane Wrapper P 80 P 60 P 40 P 80 P 80
Others:
Electricity 1,200 1,500 1,800 1,200 1,000
Water Bill 0 0 0 0 0
Rent 0 600 0 0 600
Utilities 500 800 950 500 800
Transportation 250 100 200 150 150
Taxes (quarterly) 4,000 4,000 4,000 1,000 1,000
Total Overhead P 6,030 P 7,060 P 6,990 P 2,930 P 3,630

TOTAL COST P 9,340P 10,370P 10,310P 6,180P 6,980

A B C D E F G H I J
 Mark-up 80 50 15 60 40 20 20 20 20 20

Table 2. Cost Analysis in each production cycle of participant A, B, C, D, E, F, G, H, I and J.

 Based on the data shown in table 2, participant A has the high direct material, direct

labor, overhead, mark-up and the total cost amount of P 17,600. According to stall owner

the price of per box is P 2,400 which this day is full moon that is why the fish landing

also get a high price but also the participant said they based of their total cost to come-

up the market price.

 While the low amount belong to participant as to direct material, overhead, mark-up and

the total cost in total of 3,300. According to stall owner the price of per box is P 600

which this day is not full moon that is why the fish landing also get a low price but also

the participant said they based of their total cost to come-up the market price.

Price of Skipjack Tuna Fish Based on City Ordinance and Market Price

 As to City Ordinance whereas, at times the prices of marine products within the City of

Surigao are unreasonably high due to artificial machinations to the determent of the

buying public (City Ordinance No. 339, series 2012). According to the Supervisor the

price of skipjack tuna fish is P 120 based on the City Ordinance, because this fish this

fish is a second class. But some of the stall owners are not following the said price of

City Ordinance, because there is no consistent pricing of fish. They are considering the

total cost amount of every stall owner to come up with price.

 As to market price of skipjack tuna fish is P 115 to P 180 per kilo. According to every

stall owner the pricing of fish should come from them to get their return of the cost.

Which they know what is exact price from day to day of their daily operation of the

business.

Variables SS Effect MS Effect F- P- Decision

Value Value
Direct Labor
NOY 270110.0 54022.00 18.5 0.007 Do not accept Ho
CAP. 274810.0 54962.00 31.4 0.003 Do not accept Ho

Mark-up
CAP. 4042.500 808.5000 8.5 0.030 Do not accept Ho

Table 3. Analysis of variance (ANOVA) is there a significant difference on the total cost where
they grouped according to the profile.

(Note: Insert also here the minitab)

Table 3 shows the Analysis of variance (ANOVA) where the P- value there is no

significant difference (accept Ho) greater than 0.5 or P-value there is a significant difference (do
 not accept Ho) less than 0.5 of the percentage. It presents there a significant difference on the

total cost where they grouped according to the profile. Based on the result direct labor, the P-

value of (0.007) on the number of years, while P value of (0.003) for capitalization; it suggested

the Ho should not be accepted. So it means that direct labor cost depend as to the number of

years in business and in the capital of the business. Based on the result mark-up, the P-value of

(0.030) on the capitalization, it suggested the Ho should not be accepted. So it means that

mark-up depend as to capital of business.

Ranking of Price using Cost plus Pricing and Percentage of mark-up.

Participants Total Cost Price using Cost Plus Percentage of mark-up based Rank
Pricing on cost

A P 17,600 227 54% 4

B 5,680 97.3 105% 2

C 3,300 85 21% 9

D 6,014 110.1 120% 1

E 5,965 89.7 80% 3

F 9,340 97.8 36% 6

G 10,370 106.4 23% 8

H 10,310 106 23% 8

I 6,180 72 49% 5

J 6,980 78.2 34% 7

Table 4. Ranking of Price using Cost plus Pricing and Percentage of mark-up.

 Table 4 shows the ranking of price using the cost plus pricing and percentage of mark up and

based on the result we can notice that there are participants who overpriced the product and

as a result, cost plus pricing method is not acceptable for deriving the price of a product that is

to be sold in a competitive market, primarily because it does not factor in the prices charged by

competitors. Thus, this method is likely to result in a seriously overpriced product.

Price using Cost plus Pricing and Percentage of unit gross margin.
 Participants Total Cost Price using Cost Percentage Rank
Plus Pricing Unit gross margin
A P 17,600 227 35.2% 4

B 5,680 97.3 51% 2

C 3,300 85 18% 9

D 6,014 110.1 54% 1

E 5,965 89.7 46% 3

F 9,340 97.8 20% 7

G 10,370 106.4 19% 8

H 10,310 106 19% 8

I 6,180 72 26% 5

J 6,980 78.2 25% 6

Table 5. Price using Cost plus Pricing and Percentage of unit gross margin.

 The gross margin percentage is higher or lower than that of similar firms, it may indicate a need

to reevaluate your pricing structure. If price increases change COGS, looking at related changes

in gross margin will help you assess the impact of the changes.

Conclusion

Based on the result, the following conclusion is drawn:

The most appropriate to give price is the City ordinance that this is the right amount to

be implemented in every stall owner of skipjack tuna fish price either full moon or not full moon.

Stall owner still gain or earn back the expense of their business operation every day.