Guava Jelly Enterprise for a School Fair
A Class 12 group plans to make guava jelly for a school enterprise fair. They buy 20 kg guava at ₹25/kg and 15 kg sugar at ₹42/kg. They expect a yield of 25 kg jelly and will fill 100 jars of 250 g. Each jar costs ₹10, each label ₹1.50, and fuel and pectin/citric acid cost ₹300 and ₹150 respectively. They plan to sell at ₹70 per jar. Labour is their own, but the school charges ₹500 for stall space. They also expect 5% breakage/spoilage and need FSSAI registration. Their first trial jelly was slightly cloudy and had a weak set. A nearby shop sells similar jelly at ₹55 per 250 g.
1. Calculate the total cost, the cost per saleable jar, and the profit if all saleable jars are sold at ₹70. Show the effect of the 5% loss.
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Costs:
- Guava: 20 × ₹25 = ₹500
- Sugar: 15 × ₹42 = ₹630
- Jars: 100 × ₹10 = ₹1,000
- Labels: 100 × ₹1.50 = ₹150
- Fuel: ₹300
- Pectin/citric acid: ₹150
- Stall: ₹500
- Pan hire: ₹400
- Total = ₹3,630
Loss: 5% of 100 jars = 5 jars; saleable jars = 95. Cost per saleable jar: ₹3,630 ÷ 95 = ₹38.21 (without loss it would be ₹36.30; the loss adds about ₹1.91 per jar). Revenue: 95 × ₹70 = ₹6,650. Profit: ₹6,650 − ₹3,630 = ₹3,020 (margin about 45%).
FSSAI registration fees and any transport are not included, so the true cost is slightly higher.
2. Should they price at ₹70? Give a reasoned recommendation using the cost and competitor information.
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At ₹70 the contribution per jar is ₹31.79 after the calculated cost, and the fixed stall/pan costs are covered after about 21 saleable jars. The price is therefore viable if they can sell near 95 jars.
However, the nearby shop sells at ₹55. At ₹55, revenue would be ₹5,225 and profit ₹1,595 - still positive but with a much thinner margin. A ₹70 price needs a clear reason: school-brand story, clean-label ingredients, taste samples, attractive labelling or a pre-order campaign. If those are weak, ₹60–65 is safer and still profitable. The decision should be based on expected volume, not only on cost.
3. Explain two technical causes of cloudy jelly and weak set, and state one control for each. Also list two mandatory label/registration steps.
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Cloudy jelly:
- Cause: suspended pulp or fine particles from overripe fruit or inadequate straining.
- Control: use firm, just-ripe guava; strain the extract through muslin and allow settling before boiling.
Weak set:
- Cause: insufficient pectin or acidity, or boiling to the wrong sugar concentration.
- Control: add pectin if the fruit extract is low-pectin, adjust pH to about 3.2–3.4 with citric acid, and cook to the setting point (about 65–68°Brix).
Compliance steps:
- Obtain FSSAI registration/licence as applicable to the scale of sale.
- Use a compliant label: product name, ingredients, net quantity, batch/date, storage instructions, veg logo and FSSAI licence number.