Background and Theoretical Framework of the Study

The rise in health awareness among consumers has driven

the demand for natural and fruit-based beverages. Filipinos

are particularly fond of sweets, refreshing and appetizing

snacks. With the growing trends in the food and beverage

industry leaning towards fresh, healthy, and convenient

options of a drink. With that the researchers have chosen a

drink that is both healthy and is still in the line of

sweet, refreshing and a appetizing drink which is mango

slush.

Mango slush is a mix of milo energy drink and a

tropical fruit mango on its ripe form. Milo is fortified

with vitamins such as B1, B2, B3, and D, making it

beneficial for energy, growth, and overall health,

especially for children and athletes (Dr. Jones, 2012).

Mangoes are high in vitamin C content, which supports the

immune system, as well as their rich antioxidant properties

that can help reduce oxidative stress and improve digestive

health. (Greger,2015).

This study aims to assess whether the innovated

refreshing drink by the researchers, mango slush, will serve

as a profitable product within students. With the popularity

of chocolate drinks within students and the influence of

mango in Philippines industry combining these will make a

fusion of tropical and rich flavour.

Profitability is the ability to generate earnings

beyond expenses, positioning it as the ultimate indicator of

financial performance (Kaplan and Norton 2010).Profitability

is crucial for businesses to sustain competitive advantages

and drive long-term growth( Porter,2019).

Direct retail profitability is one of the most

important performance measures as discussed by the authors,

which is calculated by reducing the adjusted (increased)

gross profit (gross margin) of the analyzed items, according

to purchase discounts and allowances, by the direct retail

costs (storage and store operations, brokerage, inventory

and direct labour costs, apart from general costs)(Lukic,

2011).

This study was anchored on the Innovation Theory of

Profits by Schumpeter (2021) who believed that an

entrepreneur can earn economic profits by introducing

successful innovations. According to this theory, profit

is the reward for innovations. Innovation refers to all

those changes, in the production process with an objective

of reducing the cost of commodity so as to create gap

between the existing price of the commodity and its new

cost.

Schumpeter makes a distinction between invention and

innovation. Innovation is brought about mainly for

reducing the cost of production and it is cost reducing

agent. Profit is the reward for this strategic role,

Innovations are not possible by all entrepreneurs. Only

exceptional entrepreneurs can innovate. They are capable

of tapping new resources, technical knowledge and reduce

the cost of production. Thus the main motive for

introducing innovation is the desire to earn profit.

Profit is therefore the cause of innovation.

Profits are of temporary nature. The pioneer who

innovates earns abnormal profit for a short period. Soon

other entrepreneurs, “swarm in clusters”, compete for

profit in the same manner. The pioneer will make another

innovation. In a dynamic world innovation in one field may

induce other innovations in related fields.

The emergence of motor car industry may in turn

stimulate new investments in the construction of highways,

rubber, and petroleum products. Profits are thus causes

and effects of innovation. The interest of profit leads

entrepreneur to innovate and innovation leads to profit.

Thus profit has a tendency to appear, disappear and

reappear.

Profits are caused by innovation and disappear by

imitation. Innovational profit is thus, never permanent,

in the opinion of Schumpeter. Therefore it is different

from other incomes, such as rent, wages and interest.

These are regular and permanent incomes arising under all

circumstances. Profit on the other hand is a temporary

surplus resulting from innovation.

Prof. Schumpeter also explained his views on the

functions of the entrepreneur. The entrepreneur organizes

the business and combines the various factors of

production. But this is not his real function and this

will not yield him profit. The real function of the

entrepreneur is to introduce innovations in business. It

is innovations which yield him profit.

The independent variable of the study is mango slush,

and the dependent variable is profitability.

Independent Variable Dependent Variable

Mango Slush Profitability

Figure 1. A Conceptual Framework showing the Profitability

Level of Mango Slush among consumers of Cuartero National
High School.
 Statement of the Problem and the Hypotheses

This study aims to measure the profitability of Mango

Slush among consumers of Cuartero National High School, SY

2024-2025.

Specifically, this study seeks to address the following

questions:

1. What is the level of profitability of Mango Slush

among student?

2. Is mango slush profitable or not?

Based on the preceding problems, the researchers

formulate a hypothesis to guide the study:

1.Mango slush is profitable.

Significance of the Study

The findings of the research will be beneficial to the

following stakeholders:

Consumers. This study will be beneficiary for consumers

who seeks to discover an alternative drinks that will not be

harmful to their health. Consumers will be aware that there

is a product that could not only satisfy their cravings but

also give them vitamins. It can push them away from buying

snacks and products that could take a toll of their health.

Entrepreneurs. The findings of this study will increase

entrepreneurs understanding on consumers buying behaviours.

It can also enhance vendors capacity in putting strategies

in the way of selling their products. They can be aware and

expose to similar healthy products they can innovate and can

add more acceptable products on their selling items.

Future Researchers. This study can contribute to

existing literature and provide information for further

scholarly research. The finding of this study may serve as a

reference for future similar studies.

Definition of Terms

For clearer understanding of this study, some terms

were define conceptually and operationally;

Mango Slush-refers to a creamy delight dessert made by

blending mango pulp & served in a glass garnished with

sugar. Mango Slush is an easy and quick to make iced treat

which can made as a drink or a dessert (Sharmilee,2024).

 In this study, "Mango Slush" referred to the innovative

product which was a mixed of Milo energy drink and a

tropical fruit mango.

Profitability-refers to the ability to generate

earnings beyond expenses, positioning it as the ultimate

indicator of financial performance (Kaplan and Norton 2010).

In this study, "Profitability" referred to the

instances that the product Mango slush will generate enough

profit after deducting the expenses used in the process of

making and selling the product.

Delimitation of the Study

This study aims to measure the profitability Mango

Slush among the students of Cuartero National High School SY

2024-2025.

The study utilized the quantitative research approach.

Specifically, an evaluative design is employed to measure

the profitability of mango slush within the students.

The participants of this study will be selected

randomly depending if they will purchase the product mango

slush.
 The independent variable in this study is mango slush

and the dependent variable is profitability.

The statistical tools utilize in this study will be

frequently count, percentage, sales and revenue. The level

of significance was set to 0.05.

This study was conducted at Cuartero National High

School, Poblacion Takas, Cuartero Capiz, School Year 2024-

2025.
 Chapter 2

Review of Related Literature

This chapter is divided into three parts, namely: (1)

Small Businesses Model, (2) Short-term Profitability, and

(3) Synthesis.

Part One, Small Businesses, discussed model relating

small businesses performance to firm’s market position and

the characteristics of their owner-managers.

Part Two, Short-term Profitability discussed on

factors, strategies, financial adjustments and impacts that

influence profitability within a half-year period.

Part Three, Synthesis, provided the summary of the

studies cited and reviewed in the investigation.

From the citation paper about Modelling Small Business

Growth and Profitability, Cambridge Small Business Research

Centre published (November 1999); This paper develops a

simple structural model relating small business performance

to firms' market position and the characteristics of their

owner-managers. Attention focuses on two questions: What

determines firms' choice of business strategy? And, how does

strategy choice change subsequent business performance?

Taking into account both relationships, the paper examines

the links between the performance of a large group of Irish

small businesses over the 1993--94 period and their market

and owner-managers' characteristics in 1991.

The analysis suggests three main empirical results.

First, firms' turnover growth and return on assets are only

weakly related in the short-term; above average growth rates

are therefore no guarantor of high profitability. Moreover,

a number of characteristics of firms' market position and

their owner-managers are found to have the opposite effects

on profitability and growth rates. Secondly, our data

provides no evidence of the persistence of turnover growth

rates above or below the average. Above average profit rates

were also found to persist only in the very short term.

Thirdly, small firm performance is shown to depend strongly

on strategy choice, with turnover growth being particularly

strategy dependent. This highlights the importance for small

firms of making the correct strategy choices, a point

emphasized by the negative profitability and growth effects

of some strategy choices. One strategy choice that had

positive effects on both profitability and growth was the

development of new export markets.

Addressing short-term business profitability within a

6-month horizon focuses on factors, strategies, and impacts

that influence profitability within a half-year period.

Studies in this area often explore quick-turn initiatives,

financial adjustments, and tactical decisions aimed at

achieving profitability within limited time frames.

Short-term profitability, especially within 6 months,

is often driven by targeted promotional activities. A study

by Shankar and Bolton (2012) found that timed discounting

strategies can lead to significant, albeit temporary,

increases in sales volume and revenue. However, excessive

discounting may reduce customer perceptions of value,

impacting future profitability. For many industries,

particularly retail and hospitality, short-term

profitability is tied closely to seasonal peaks and off-peak

periods. Research by Stokey and Zeckhauser, (2010)

highlights that adjusting prices during peak seasons or

holidays can significantly enhance short-term profits within

a 6-month timeframe.

This study describes a comprehensive profitability

analysis that introduces several novel ratios and

decompositions. Key innovations relate to the separation and

analysis of activities other than operating and financing,

and, most importantly, to the decomposition of operating

profitability. Three drivers of operating profitability are

analyzed: profit margin, asset turnover, and a funding ratio

that measures the proportion of operating assets funded by

capital. The empirical analysis demonstrates the

informativeness of the various decompositions as well as the

effectiveness of the methodology used for estimating

transitory income and other components of the reformulated

financial statements.

Studies by Lean and Smyth (2011) indicate that cost

control initiatives, such as inventory reduction and process

optimization, can quickly improve profitability. By lowering

operational expenses through lean management practices,

firms are often able to achieve substantial cost savings

within a short period, increasing net profits. Companies

seeking to boost 6-month profitability often implement

strict expense monitoring, limiting non-essential spending

to maximize cost-effectiveness. Research by Chen and Hsieh

(2008) found that budget restrictions on areas like

marketing and administration can free up funds to bolster

core operations, enhancing short-term profitability.

Offering performance-based bonuses and incentives tied to

sales targets can improve productivity and increase revenue.

Studies by Frye (2007) suggest that incentive programs

within a short-term period can drive higher employee

engagement and profitability, although these may need to be

strategically aligned to avoid burnout or turnover. To meet

immediate financial obligations and seize short-term

opportunities, firms sometimes utilize short-term debt. A

study by Jensen and Meckling (1976) on debt utilization

argues that while short-term debt can enhance liquidity and

profitability within months, it also brings the risk of

high-interest expenses, which could offset profit gains.

With rising interest rates, short-term debt financing can

become costlier. According to Cornett and Marcus (2009),

companies relying on short-term loans or lines of credit

must carefully manage interest rate exposure to avoid

eroding short-term profitability.

Within a 6-month period, loyalty programs have been

shown to increase repeat purchases and boost sales. Studies

by Liu and Yang (2010) found that loyalty programs that

offer rewards or incentives for frequent purchases can

improve short-term revenue, especially in competitive

markets. Expanding digital sales channels has been shown to

improve short-term profitability by broadening market reach

quickly.

A study by Brynjolfsson and McAfee (2020) found that

online sales allow companies to adapt more flexibly to

demand changes, often generating rapid revenue growth in a

6-month timeframe. Manufacturing firms achieve short-term

profitability by optimizing supply chains and reducing

inventory. Research by Hopp and Spearman (2011) found that

manufacturers benefit from lean production techniques that

improve process efficiency and lower costs, leading to

higher profitability within months. Retailers often achieve

short-term profitability through inventory adjustments,

seasonal promotions, and price markdowns. According to a

study by Szymanski and Henard (2009), retailers who actively

manage product assortment and pricing during high-demand

periods report improved profits within 6 months.