FORMATIVE ASSESSMENT $2[100$ MARKS$]$

Read the insert below and answer the questions that follow

Procter & Gamble $($P&G$)$ is a multinational consumer goods corporation and one of the world's largest and most recognized

companies in its industry. Founded in $1837$ by William Procter and James Gamble, the company has grown to become a

global leader in the production and marketing of a wide range of household and personal care products. P&G is known for

its extensive and diverse portfolio of consumer goods, including beauty and grooming products, health and wellness items,

household care, and baby care products. Some of its well$-$known brands include Pampers, Tide, Gillette, Pantene, Olay,

and Crest. Procter & Gamble is a global consumer goods giant with a rich history, a diverse product range, and a

commitment to innovation and sustainability. Its household brands are fixtures in many homes worldwide, reflecting its

influence and impact on the consumer goods industry.

Jon R Moeller, the CEO of Procter and Gamble $($P&G$)$ has requested your services in responding to some of the strategic

issues facing the operations management function of the organisation. He has provided you with a number of scenarios that

the organisation has been exposed to and thus requests that you draft a report providing the best response in dealing with

each scenario.

P&G operates a dozen retail shops in Johannesburg, South Africa. Their signature item is

a hamper including baby diapers and baby oil. Sales $($x$,$ in millions of rands$)$ are related to

Profits $($y$-$hat, in hundreds of thousands of rands$)$ by the regression equation y$-$hat $=7\mathrm{.}21$

$+1\mathrm{.}76$ x$.$

Considering this determine the forecasted profit for a store with sales of R$10$ million and

R$30$ million respectively.