SUBMITTED BY-

BHAWNA SINGH M24MBAG0020

ANJALI AGGARWAL M24MBAG0004
TANU SINGH M24MBAG 0008
ASHIRWAD PRINT DEBASISH MOHAPATRO M24MBAG0106

PACK- CASE STUDY

MICRO ECONOMICS CASE STUDY
 Maximum Profit on the Ashirwad Print Pack
Store in Himachal Pradesh
Abstract: This research is based on Microeconomic Theory manufacturing techniques to ensure durability, tear resistance,
about the quantity of production that provides maximum and environmental sustainability.
profit. The purpose of this research is to find out and analyze
how much quantity of product (Q) for sale, which gives the Located in the industrial hub of Baddi, Himachal Pradesh,
maximum profit, in the Ashirwad print pack shop in the solan, Ashirwad Print Pack operates from a state-of-the-art facility
Himachal Pradesh. Data is quantitative, sourced directly from that is divided into specialized divisions for production, quality
the object of research (primary data). Data collection method testing, procurement, sales, marketing, and warehousing. This
using interview and documentation instruments in 1 August infrastructure allows the company to maintain streamlined
2024 – 31 August 2024 and the data presented is sales data per operations and consistently deliver high-quality products to its
month and the product we examined are boxes of 10 printed customers.
cartons. The analytical tool used is the Maximum Profit
Analysis with the Total Approach which compares total
revenue with total cost (TR – TC), and the Marginal Approach
method, which is a condition where marginal revenue is equal Given the growing demand for carton boxes, Ashirwad Print
to marginal cost (MR= MC). The results of this research are Pack has a strong potential for profit maximization. However,
seen from the data that is already available, pointed MR> MC. several questions arise in this context:
That means the printing store has not reached the point of
maximum profit. 1. Has Ashirwad Print Pack achieved its maximum profit
potential?
Keywords: maximize, profit, production quantity, total
revenue, total cost. 2. What quantity of production would yield the highest profit
for the company?

I. INTRODUCTION 3. What strategies should be adopted by Ashirwad Print Pack

Company Name: Ashirwad Print Pack to ensure sustained profit growth in the competitive carton box
manufacturing industry?
CEO: Vikas Gupta
Year of Establishment: 2010
These questions are critical for understanding the financial
Legal Status of Firm: Partnership Firm health of the company and guiding future business strategies
aimed at maximizing profitability.
Annual Turnover: Rs. 5 - 10 Crore
Total Number of Employees: 26 to 50 People
Location: Plot No. 143, Epip Phase 1, Jharmajri
Near L'Oreal Factory
Baddi, Solan, Himachal Pradesh, India
Pin Code: 173205

The demand for high-quality packaging solutions has grown

significantly with the rise of industries like retail, FMCG, and
e-commerce. This has led to the rapid development of the
carton box manufacturing sector. The business of
manufacturing and supplying carton boxes has proven to be
both promising and lucrative, with a variety of eco-friendly,
durable, and moisture-resistant products in high demand.

Founded in 2010, Ashirwad Print Pack has seized this

opportunity by positioning itself as a leader in the carton box
manufacturing industry. The company prides itself on offering
a wide range of premium quality boxes that meet the stringent
requirements of its diverse clientele. These products are
meticulously crafted using top-grade materials and the latest
 II. RESEARCH OBJECTIVES matters. Then the researcher determines based on
his consideration that some of the members of the
The specific objectives to be achieved in this study
object become cases to be investigated, so that the
are to find out and analyze:
purposive case selection technique is based on the
1) The large quantity of products for sale researchers' personalconsiderations.
that provide maximum profits in the shop Ashirwad Data analysis uses the analysis of the maximum
print pack shop of Himachal Pradesh profit of a perfectly competitive market company,
2) Opportunities and threats of business of by:
Ashirwad print pack shop of Himachal Pradesh 1) Maximum profit; where the difference in
3) Strategies for achieving the maximum value betweentotal sales (Total Revenue = TR)
profit of the Ashirwad print pack shop of Himachal and total costs (Total Cost
Pradesh = TC) is maximum (π), where: π = TR ― TC
2) Maximum profit; where marginal cost (MC)
III. LITERATURE REVIEW
equals marginal sales (Marginal Revenue = MR)
According to B Djatmiko, A Yulistyorini, R M or MR = MC, or the first derivative value of π is
Sugandi and E Setyawan (2019) Profit is the zero (𝜋 ′ = 0)
primary goal of entrepreneurs in general and 3) If the company is in the condition of MR>
construction contractors in particular. This is MC, then what is done is to increase production to
because profits are used for company survival, increase profits. Conversely, if MC> MR,
development, trust and working capital to get the additional production will actuallyreduce profits,
next project Profit Maximization assumes ‘Perfect so the company must reduce production. The
Competition’ like market conditions. The operating hypothesis raised in this research is printing Store
logic and backbone of this approach is ‘efficiency’. in Himachal Pradesh has not reached the
Put in simple terms, ‘efficiency’ refers to maximum profit.
minimizing inputs and maximizing outputs (Zubair
Ahmad Khan, 2017). Profit optimization becomes V. ANALYSIS AND DISCUSION
the main goal of each production process. For the 4) The data were collection by interview
achievement itself, required precise calculations and documentation method in shop Ashirwad
and analysis in order to support theachievement of print pack shop of Himachal Pradesh
maximum profit. The maximum profit can be
achieved with proper production planning .The data obtained is:
(Mabafasa Al Khuluqi , Wayan Firdaus Mahmudy , 1. Sales data of Ashirwad print pack shop
Asyrofa Rahmi, 2016). period of 1 July 2024 – 31 August 2024
Total Cost (TC) is generated by the sum of Fixed 2. Product purchase data of Ashirwad print
Cost (FC) and Variable Cost (VC) (Suprapto pack shop period of 1 July 2024 – 31 August 2024
Soemardan, Widodo Wahyu Purwanto, and 3. From the data obtained a mathematical
Arsegianto, 2013). Sales revenues arean item of the model is arranged using table that contains the
income statement, which is the total income that Total Cost, Total Revenue, Marginal Cost, and
the entity receives as cash flows or an increase in Marginal Revenue.
other assets from the main activities resulting from 4. The analytical tool used is the Maximum
the exercise ofits principal activity, Profit Analysis with the Total Approach which
whether from the sale of its commodity products compares total revenue with total cost (TR – TC),
or services. This item can be divided into other and the Marginal Appoarch method, which is a
detailed items for each product or service. The net condition where marginal revenue is equal to
revenue is the main figure in the financial marginal cost (MR = MC).
statements and is the basis for many calculations 5. The formula looks: for MC = ∆TC / ∆Q,
and analyzes, and an important indicator of the and MR =
performance and marketing ability to sell the ∆TR / ∆Q for profit = MR−MC
product (Mohammad Ali AL Hayek 2108).

IV. RESEARCH METHOD

The research method used in this study is a
quantitative descriptive research method that is
research that processes quantitative data and then
 Table-I: Maximization of profit on Effective management is crucial; without it, even a
BOX sales (InRS) profitable business can struggle. Here’s a closer look
at the current situation and some suggestions for
improvement:

Current Challenges:

Financial Management Issues: Poor financial

management often leads to an imbalance
between income and expenditure. As indicated
in Table 1, where MR > MC, the business has
reached its maximum profit potential but has
lot of fluctuation. Inefficient financial
management, including inadequate tracking of
income and expenditures, contributes to this
issue. Proper financial statements that detail
incoming and outgoing budgets are essential
for identifying and addressing these
In the given context, the profit is determined by the discrepancies.
difference between Marginal Revenue (MR) and
Marginal Cost (MC), expressed as Profit = MR - Suggestions for Increasing Profitability and
MC. From the information provided: Sales Volume:

- As output sold increases, profit also increases. This Improve Financial Management: To maximize
trend is evident in the table, where the change in
profitability, it’s vital to establish robust financial
profit (MR - MC) reflects the effect of increased
management practices. This includes maintaining
output sales.
detailed financial records, balancing income with
- When MR > MC, profit is rising, so to maximize
expenses, and clearly documenting the purposes of
profit, producers should increase the quantity of
all expenditures. By refining financial oversight, the
output.
business can better align costs with revenues and
- Conversely, when MR < MC, profit is decreasing,
work towards achieving the maximum profit point.
meaning producers should reduce the quantity of
output to maximize profit.
- The optimal level of profit is achieved when MR 1. Expand Sales Channels: Diversify your sales
equals MC, as this is where the profit-maximizing channels to boost revenue. Consider establishing
condition is met. an online presence to reach a broader audience.
This could involve setting up an e-commerce
The results of this study indicate that the website or leveraging online marketplaces and
Ashirwad prink pack has achieved maximum profits social media platforms. Expanding into online
around Q = 82. At this point, Marginal Revenue markets can attract new customers and increase
(MR) is approximately equal to Marginal Cost sales volume.
(MC), and the difference between Total Revenue 2. Enhance Marketing Efforts: Invest in targeted
(TR) and Total Cost (TC) is maximized. Beyond marketing campaigns to raise awareness and
this point, any increase in production quantity attract more customers. Utilize digital marketing
strategies such as search engine optimization
starts reducing profitability, as indicated by the
(SEO), pay-per-click (PPC) advertising, and social
negative "CHANGE IN P" values.
media promotions to drive traffic and increase
sales.
VI. CONCLUSION AND 3. Improve Customer Experience: Focus on
SUGGESTION
providing exceptional customer service and
building strong relationships with clients. Positive
The printing business is inherently profitable and customer experiences can lead to repeat business,
relatively easy to manage. However, achieving referrals, and a stronger reputation in the market.
sustained success requires genuine interest and a 4. Optimize Pricing Strategies: Review and adjust
dedicated approach to ensure that profits are your pricing strategies to ensure they align with
maximized and the business continues to grow. market demand and customer expectations.
 Competitive pricing, promotions, and discounts indicates that increasing the quantity further
can help attract more customers and drive higher decreases profit.
sales volumes. - The "CHANGE IN P" becomes negative at Q =
83, indicating that maximum profit likely
Q1. How can you ensure that the product has occurs around Q = 82, just before profits
achieved maximum profits. Analyze start to decline.
through example and graphs.
To determine whether the product has achieved Conclusion:
maximum profits, we need to analyze the
relationship between Marginal Revenue The data and graphs suggest that the product
(MR), Marginal Cost (MC), Total Revenue achieves maximum profits around Q = 82.
(TR), and Total Cost (TC) across different At this point, Marginal Revenue (MR) is
quantities (Q). In general, maximum profit is approximately equal to Marginal Cost (MC),
achieved where Marginal Revenue (MR) and the difference between Total Revenue
equals Marginal Cost (MC), i.e., MR = MC. (TR) and Total Cost (TC) is maximized.
Beyond this point, any increase in
production quantity starts reducing
Analyzing the Data and Graphs: profitability, as indicated by the negative
"CHANGE IN P" values.
1. Marginal Revenue (MR) and Marginal Cost Q2. Discuss the opportunities and threats which
(MC): the company faces in the case.
- Maximum profit occurs where MR equals MC. ANS. Opportunities
- From the table and the graph (bottom right), 1. E-Commerce Growth: Increased demand for
MR starts higher than MC, but as quantity customized packaging from online retailers.
increases, MR decreases while MC first Action: Offer tailored solutions for e-
increases and then decreases. commerce businesses.
- Observe that around quantities 80 to 83, MR and 2. Sustainability Trends: Rising need for eco-
MC come closer, especially around Q = 82, friendly packaging. Action: Develop and
MR and MC are nearly equal. This suggests promote recyclable and sustainable options.
that this point may be close to the point of 3. Expansion of Product Lines: Potential to attract
maximum profit. new customers with diverse packaging
solutions. Action: Invest in equipment for
custom shapes and finishes.
2. Total Revenue (TR) and Total Cost (TC):
4. Local and Small Business Support: Small
- Profit is also the difference between Total businesses favor local suppliers for
Revenue (TR) and Total Cost (TC). personalized service. Action: Build
- Looking at the TR and TC graph (top right), TR relationships with local clients.
rises sharply initially but starts to flatten 5. Technological Advancements: New printing
out while TC remains relatively steady. technologies can enhance efficiency and
After Q = 80, TR begins to decrease while quality. Action: Invest in the latest
TC doesn't increase as much. equipment.
- This indicates that the maximum difference (TR 6. Creative and Unique Designs: Growing demand
- TC) is reached before TR starts to decline for innovative packaging. Action: Offer
and TC remains relatively flat, suggesting design services for distinctive packaging
that Q = 80 to 82 might be where profits are solutions.
maximized.

Threats
3. Change in Profits (Change in P):
1. Intense Competition: Numerous players in the
- The last column, "CHANGE IN P," shows how market. Action: Differentiate through quality
profits change with each additional unit of and service.
quantity.
2. Raw Material Costs: Fluctuations can affect
- When this value is positive, profits are profitability. Action: Secure reliable suppliers
increasing. When it becomes negative, it and explore bulk purchasing.
3. Economic Downturns: Reduced spending can discounts can attract more customers and increase
impact demand. Action: Diversify client base your sales.
and product offerings.
4. Technological Disruptions: New methods may
render equipment obsolete. Action: Stay
updated and invest in modern technology.
5. Regulatory Changes: New regulations could
increase costs. Action: Monitor regulatory
developments and ensure compliance.
6. Supply Chain Disruptions: Delays and logistical
issues can impact operations. Action: Develop
contingency plans and maintain inventory.

By addressing these factors, a box printing shop can

leverage opportunities and manage risks
effectively.
Q3. What strategies should be adopted to
achieve the maximum profits in the
printing store.

1. Strengthen Financial Management: To really

boost profits, it’s essential to have solid financial
practices in place. This means keeping detailed
records, making sure your income covers your
expenses, and being clear about why every penny is
spent. By fine-tuning your financial oversight, you
can align your costs more closely with your revenue
and aim for maximum profitability.

2. Expand Your Sales Channels: Think about

diversifying where and how you sell your products.
Consider building an online presence to reach more
people. This could mean setting up an e-commerce
site or using online marketplaces and social media.
Going online opens up new opportunities to connect
with customers and increase your sales.

3. Enhance Your Marketing Efforts: Invest in

targeted marketing to get your brand out there and
bring in more customers. Use digital tools like SEO,
PPC advertising, and social media promotions to
attract visitors to your website and boost sales.

4. Improve the Customer Experience: Make

customer service a top priority. Building strong
relationships with your clients and providing
exceptional service can lead to repeat business,
word-of-mouth referrals, and a stronger reputation
in the market.

5. Optimize Your Pricing Strategies: Regularly

review and adjust your pricing to make sure it meets
market demands and customer expectations.
Offering competitive prices, promotions, and