Colegio de San Juan de Letran: Intramuros, Manila

Colegio De San Juan De Letran 1
College of Business Administration and Accountancy
Colegio de San Juan de Letran

Intramuros, Manila
A Feasibility Study
on Vegetable Delights
In Partial Fulfillment of the Requirements

for the degree of Bachelor of Science in Business Administration
major in Entrepreneurship
Presented to the faculty members of

College of Business Administration and Accountancy (CBAA)
Presented by:
Tino-Paolo T. Andaya
Ryan Jude G. Ponce
March 2009
TABLE OF CONTENTS
Title Page
ACKNOWLEDGEMENT 4
CHAPTER I – Summary of The Project 5
A. Name of the Firm 5
B. Location 5
C. Brief Description of the Project 6
D. Project Summary 7
Marketing Aspect 7
Technical Aspect 7
Management Aspect 8
Financial Aspect 8
Socio-Economic Aspect 9
CHAPTER II – Introduction/Background of the Study 10

Objectives of the Study 10
Operational Definition of Terms 11
Scope and Limitation of the Study 12
CHAPTER III – Market Study 13

Methodology 14
Demand & Supply Analysis/Gap 16
Projected Sales/Market Share 21
Marketing Strategies 25
CHAPTER IV – Technical Study 28

Uses of the Product 28
Process Flowchart 29
Description of the Process 33
Production Schedule 35
Material Balance 38
Production Capacity 42
Raw Materials 44
Equipment / Other Materials 45
Plant Layout & Location 46
Direct Labor Requirements 49
Utilities 49
Waste Disposal 49
CHAPTER V – Mangement Study 50

Form of Busines Organization 50
Capitalization 51
Organizational Structure 51
Organizational Policies 53
Job Requirements & Compensation 60
Legal Requirement 62
Gantt Chart 63
CHAPTER VI – Financial Study 64

Total Project Cost 64
Capitalization 65
Sources of Financing 65
Assumptions 66
Financial Statements 67
Financial Statement Analysis 68
CHAPTER VII – Socio-Economic Aspect 70

Contribution to Phil. Economy 70
Employment Generation 71
Desirability 72
Appendices 72
ACKNOWLEDGEMENT
We would like to thank all the people who made our feasibility study
well-crafted and improved.
The Lord God for all His blessings, guidance and the gift of knowledge
to this study.
Mr. Raem Mendoza, our RM1 and RM2 professor, for all his untiring
suggestions and feedbacks on our research.
Mrs. Liza Belmonte, our panel chairman, for the suggestions and
comments for the help of improving our work.
Mr. Henry Junio, our only one adviser, for all the suggestions,
improvements, revisions and encouragement for us to make our
feasibility study successful.
and to the EN4A blockmates for all the support and suggestions that
makes our study well-improved.
CHAPTER I
Summary of the Project
A. Name of the Firm
“Protolife” is derived from the Greek/Latin word “proto” meaning

“first” ; and “pro-to-life” meaning “first to life”. The very reason why the
company is named “Protolife” because the firm’s topmost concern is to
promote life itself through offering products mixed with vegetables, and is
represented by the brand name Vegelights (Vegetable Delights) products.
B. Location
The head office/factory is located in one of the proponent’s residence

in 42 Red St., Goodwill 2 Subdivision, Brgy. BF Homes, Sucat, Paranaque
City. Processing functions will take place in the spacious 20 square meter
sized kitchen area of the residence. The actual stall/outlet is given for free to
the proponents by a relative, in which it will be for the products to be sold and
distributed, located in Dr. A. Santos Avenue, Brgy. BF Homes, Sucat,
Paranaque City, wherein, it is accessible by all means of public and private
transportations.
C. Brief Description of the Project
The proposed business will focus on producing well-known

homemade delicacies and transform such into vegetable-mixed products
namely: dried and sweetened vegetables (kamote and gabi), vegetable
polvoron (carrots, malunggay and kamote flavors), vegetable pastillas
(papaya, malunggay and squash flavors) and vegetable pancake (kangkong
and malunggay flavors). All these variety of products on a homemade style.
Protolife gave the brand name of Vegelights for the goods that will be
produced. The firm aims to start reaching out to young people, instilling them
that vegetables can be mixed to well-known delicacies, in more chewable
form. The main target market of these products are male and female, ages 5
and above, living within the households of Barangay BF Homes and
neighboring schools and establishments in the said barangay in Paranaque
City. In this partnership form of business organization, financial investments
will focus on the basic ingredients and materials to be needed in the process
like flour, butter, sugar, eggs, milk (condensed, evaporated and powdered);
and the vegetable ingredients such as: kangkong, malunggay, kamote,
papaya, gabi, squash and carrots; salaries and wages to workers, business
registrations, supplies, equipment, machinery and expenses on utilities. The
firm will be hiring four (4) additional workers in the production system.
D. Project Summary
Marketing Aspect
The products’ target market are male and female, ages 5 and above,
living within the households and neighboring schools and establishments
within Barangay BF Homes in Paranaque City. The distribution process of
the products will be from the producer to the consumers. At the start of
operation, promotional measures will be done by making and distributing
product brochures/leaflets within the location or the households, or whoever
passes by within the location. The firm would also formulate expansion plans
by becoming a concessionaire to groceries and supermarkets, and by joining
exhibits to also promote its products.
Technical Aspect
Since the firm is just starting, its rundown for the additional number of
manpower/labor aside from the two proponents are four (4). The four
workers will be assigned on each products: pastillas, polvoron, dried &
sweetened and pancake. The main vegetable ingredients to be used in
these products are the following: kangkong, malunggay, squash, papaya,
kamote, gabi and carrots. There will be only few materials/equipments to be
used in the production like the hand-held mixer and the basic utensils such
as mixing bowls, peeler, polvoron molder and beater. Packaging for the
products are transparent cellophane wrappers for clear appearances of these
vegetable-mixed food products and clear plastic wrappers.
Management Aspect
Protolife is a partnership form of a business organization, headed by

two (2) partners. Mr. Tino-paolo Andaya as the company’s general manager,
and Mr. Ryan Jude Ponce as the assistant general manager. As a starter,
there will be four (4) additional workers, as mentioned and described in the
technical aspect. The organizational structure will be from the general
manager, to the assistant general manager, to the supervisor and down to
the workers. Each of the workers needs to possess the firm’s required
specifications, qualities and requirements in order to be hired.
Organizational costs of the firm will be derived from various business
registration fees, namely on: Securities & Exchange Commission (SEC),
Department of Trade & Industry (DTI), Bureau of Internal Revenue (BIR) and
the local municipal hall for mayor’s permit and other business licenses.
There will be some pre-operating activities to be undertaken such as
business registration for the legality of its existence, hiring and labor
orientation.
Financial Aspect
The parents of the proponents gave them an equal amount of money

and they decided to invest it in this business venture. It will also serve as
their initial capitalization and source of funds for the project. The amount
already covers registration fees for the business organization, utilities,
salaries and wages and other production cost; the amount also includes a
contingency fund for the business. On the financial study, there will be a 5-
year projected income statement, cash flow statement, balance sheet and
financial statement analysis.
Socio-Economic Aspect
The firm would be able to contribute to government through taxes

derived from its sales. The consumers would benefit health-wise from its
vegetable ingredients, than the usual diabetes-causing delicacies. The firm
aims to promote its products through livelihood programs, at the same time,
giving jobs for the unemployed.
CHAPTER II
Introduction/Background of the Study
Brief Background of the Study
Most goodies, especially delicacies being sold to the market today, are
just plain simple sugary, strong-tasting and has food additives. Protolife is
producing products named Vegelights (in short for Vegetable Delights) in
order to be unique and innovative in terms of the usual sweets. Young
people, mostly children, loves sweets such as polvoron and pastillas de
leche because of its taste of being sweet and delicious. The newly
established firm intends to promote and sell vegetable goodies, in more
chewable and tasty form. The firm’s target market will be from 5 years old
and above, male or female, living within the households and nearby schools
and establishments in the barangay. The firm will be using a lot of
vegetables, namely: kangkong, malunggay, gabi, papaya, kamote, squash
and carrots. The reason why the company chose these vegetables is
because they are easy to acquire from local wet markets or groceries near
the factory, and also because of their very strong health benefits. Mostly,
these choice vegetables possess Vitamins A, B, C, E, K and Potassium
contents.
Objectives of the Study
• To be able to describe the business proposal.

• To be able to determine if the business is viable.
• To be able to find out whether to pursue this business in the near

future or not.
Operational Definition of Terms
Contingency Fund – A reserve set aside against unforeseen expense.
Delicacy – The quality of being delicate. Something pleasing and appealing,

especially a choice food.
Direct Labor – These are wages or salaries given to the workers who
directly produces or manufactures the finished product or goods.
Direct Materials – These are the raw materials that are traceable to the
finished product.
Manufacturing – It is the process of converting raw materials into finished

products.
Organization – Group of people working to achieve common goals.
Overhead – These are non-labor, indirect manufacturing expenses such as

utilities, supervisor’s salaries, property tax, rent, gas and oil, etc.
Pre-Operating Activities – These are set of activities that has to be

undertaken before the actual operation sets in.
Target Market – The group or area of concentration for the selling of the
products; the potential buyers.
Technical - Relating to the technique or proficiency in a practical skill.
Scope and Limitation of the Study
This project study will be focusing only on producing vegetable food

products namely: vegetable pancake, dried and sweetened vegetables,
vegetable pastillas and vegetable polvoron with the use of these following
vegetables: kangkong, squash, malunggay, gabi, kamote, papaya and
carrots. This study will also limit on the five (5) major aspects of a feasibility
study: Management, Marketing, Technical, Financial and Socio-Economic
aspects.
CHAPTER III
Market Study
• To be able to develop good marketing strategies for the business

using the 4 P’s in marketing.
• To be able to determine the demand and supply situation for the

past five (5) years.
• To be able to identify the consumer public’s taste and preferences

with regard to the product that will be sold.
• To be able to determine the pricing strategy of the business.
• To be able to give projections on the product’s future demand and

supply situation, and its sales for the next five years.
Methodology
The proponents used indirect method as its main methodology in

gathering data. Indirect method is by giving out survey questionnaires within
the location to determine the preferences of the consumer public on an
existing related product. To be able to determine the number of sample
respondents, the firm used the Slovin formula. The computation is as
follows:
where: n = sample size n= N______

N = total population 1 + N (e)2
1 = constant number
e = margin of error
Under this observation, the proponents acquired a census of

Paranaque City from the National Statistics Office (NSO) since it is already
the actual number of population for the year 2007. Under the city of
Paranaque, the area of dispersion of the products is in one of its most
populous barangays, the Barangay B.F. Homes which has 80,316 total
population.
SURVEY QUESTIONNAIRE
Name (Optional)_________________ Age______ Sex_______
1. Do you eat delicacies ?

__ Yes __ No
2. What delicacy do you usually buy?

__ Pastillas __ Dried and Sweetened Fruits
__ Polvoron __ Others (pls. specify)
3. Where do you usually buy delicacies?

__ Pasalubong Stalls __ Bakeshops
__ Local Grocery/Supermarket __ Street Vendors __others
(pls.specify)
4. How much do you spend per purchase?

__ PhP 50 and below __ PhP 76 – 100
__ PhP 51 – 75 __ 101 and above
5. What flavors do you usually buy for the following delicacies?

Pastillas: Polvoron:
__ de Leche __ chocolate
__ de Ube __ milky
__ Others (pls. specify) __ others (pls. specify)
Dried & Sweetened goods Pancake:
__ Mangoes __ chocolate
__ Coconut __ ordinary-flavored
__ Others (pls. specify) __ others (pls. specify)
6. How often do you buy delicacies ?

__ Most of the time __ Sometimes __ Seldom
7. Are you aware of the vegetable-mixed delicacies such as vegetable pastillas,

vegetable polvoron, dried & sweetened vegetables and vegetable pancake?
__ Yes __ No
8. Are you willing to try our delicacies?

__ Yes __ No
9. If the product is already available in the market, will you have the intention to
purchase it?
__ Definitely will buy __ Will buy __ Definitely will not buy
Thank you very much and God bless you!
Demand & Supply Analysis/Gap
Historical Demand
Table 3.1
Year Competitor
2004 37,964
2005 38,739
2006 39,530
2007 40,337
2008* 41,160
Source: Sasmuan Delicacies, Paranaque City
(* - Estimated Value)
Computation for Historical Demand:
Year 2008 42,000 x .02 = 840

42,000 – 840 = 41,160
Year 2007 41,160 x .02 = 823.2

41,160 – 823.2 = 40,337
Year 2006 40,337 x .02 = 806.74

40,337 – 806.74 = 39,530
Year 2005 39,530 x .02 = 790.6

39,530 – 790.6 = 38,739
Year 2004 38,739 x .02 = 774.78

38,739 – 774.78 = 37,964
Projected Demand
Table 3.2
Year Demand
2009 41,959
2010 42,758
2011 43,557
2012 44,356
2013 45,155
Computation for Projected Demand:
To be able to compute for the projected demand, use the Arithmetic

method. Yn stands for final value and Yc stands for the initial value of the historical
demand. Then, the difference of the two will be divided from a constant value, n – 1
(5 – 1) which is 4. This method also applies to historical supply and projected
supply.
A = Yn - Yc
n-1
A = 41,160 – 37,964
5–1
A = 3,196 = 799
4
Year 2009 41,160 + 799 = 41,959

Year 2010 41,959 + 799 = 42,758
Year 2011 42,758 + 799 = 43,557
Year 2012 43,557 + 799 = 44,356
Year 2013 44,356 + 799 = 45,155
Historical Supply
Table 3.3
Year Competitor
2004 30,372
2005 30,992
2006 31,624
2007 32,269
2008* 32,928
Source: Sasmuan Delicacies, Paranaque City
(* - Estimated Value)
Computation for Historical Supply
Year 2008 33,600 x .02 = 672

33,600 - 672 = 32,928
Year 2007 32,928 x .02 = 658.56

32,928 – 658.56 = 32,269
Year 2006 32,269 x .02 = 645.38

32,269 – 645.38 = 31,624
Year 2005 31,624 x .02 = 632.48

31,624 – 632.48 = 30,992
Year 2004 30,992 x .02 = 619.84

30,992 – 619.84 = 30,372
Projected Supply
Table 3.4
Year Supply
2009 33,567
2010 34,206
2011 34,845
2012 35,484
2013 36,123
Computation for Projected Supply:
A = Yn - Yc
n-1
A = 32,928 – 30,372
5–1
A = 2,556 = 639
4
Year 2009 32,928 + 639 = 33,567

Year 2010 33,567 + 639 = 34,206
Year 2011 34,206 + 639 = 34,845
Year 2012 34,845 + 639 = 35,484
Year 2013 35,484 + 639 = 36,123
Demand & Supply Gap Analysis

Year Demand Supply Gap

2009 41,959 33,567 8,392
2010 42,758 34,206 8,552
2011 43,557 34,845 8,712
2012 44,356 35,484 8,872
2013 45,155 36,123 9,032
The demand and supply gap analysis is executed by subtracting the

projected demand and projected supply of each respective years of
projection.
Projected Sales
Year 2009
Product Annual Units Sold Selling Price Sales

Capacity
Malunggay 31,200 28,080 PhP 9.90 PhP 277,992
Pastillas
Squash Pastillas 31,200 28,080 9.90 277,992
Papaya Pastillas 31,200 28,080 9.75 273,080
Carrot Polvoron 24,960 22,464 12.90 289,786
Malunggay 24,960 22,464 12.60 283,046
Polvoron
Kamote Polvoron 24,960 22,464 12.60 283,046
Dried Kamote 15,600 14,040 17.10 240,084
Dried Gabi 15,600 14,040 17.10 240,084
Kangkong 9,360 8,424 32.85 276,728
Pancake
Malunggay 9,360 8,424 32.85 276,728
Pancake
Total PhP 2,718,566
Year 2010
Capacity
Pastillas
Carrot Polvoron 27,456 24,710 14.20 350,882
Malunggay 27,456 24,710 13.90 343,469
Polvoron
Kamote Polvoron 27,456 24,710 13.90 343,469
Dried Kamote 17,160 15,444 18.80 290,347
Dried Gabi 17,160 15,444 18.80 290,347
Kangkong 10,296 9,266 36.15 334,966
Pancake
Malunggay 10,296 9,266 36.15 334,966
Pancake
Total PhP 3,293,850
Year 2011
Capacity
Malunggay 37,752 33,977 PhP 12 PhP 407,724
Pastillas
Squash Pastillas 37,752 33,977 12 407,724
Carrot Polvoron 30,264 27,238 15.65 426,275
Malunggay 30,264 27,238 15.30 416,741
Polvoron
Kamote Polvoron 30,264 27,238 15.30 416,741
Dried Kamote 19,032 17,129 20.70 354,570
Dried Gabi 19,032 17,129 20.70 354,570
Kangkong 11,232 10,109 39.80 402,338
Pancake
Malunggay 11,232 10,109 39.80 402,338
Pancake
Total PhP 3,991,648
Year 2012
Capacity
Pastillas
Carrot Polvoron 33,384 30,046 17.25 518,294
Malunggay 33,384 30,046 16.85 506,275
Polvoron
Kamote Polvoron 33,384 30,046 16.85 506,275
Dried Kamote 20,904 18,814 22.80 428,959
Dried Gabi 20,904 18,814 22.80 428,959
Kangkong 12,480 11,232 43.80 491,962
Pancake
Malunggay 12,480 11,232 43.80 491,962
Pancake
Total PhP 4,845,985
Year 2013
Capacity
Pastillas
Carrot Polvoron 36,816 33,134 19 629,546
Malunggay 36,816 33,134 18.55 614,636
Polvoron
Kamote Polvoron 36,816 33,134 18.55 614,636
Dried Kamote 23,088 20,779 25.10 521,553
Dried Gabi 23,088 20,779 25.10 521,553
Kangkong 13,728 12,355 48.20 595,511
Pancake
Malunggay 13,728 12,355 48.20 595,511
Pancake
Total PhP 5,876,315
Projected Sales
Year Projected Sales
2009 PhP 2,718,566
2010 PhP 3,293,850
2011 PhP 3,991,648
2012 PhP 4,845,985
2013 PhP 5,876,315
** These are based on assumption that for each products, 90% units are sold
and 10% are left unsold.
** There will be a ten percent (10%) increase on production capacity/output

on each products every year.
** Selling price of each products will increase by ten percent (10%) every
year.
Marketing Strategies
Product
The product’s name will be Vegelights, in short for Vegetable Delights,

beause all of the delicacies are mixed with various vegetables, such as:
Dried & Sweetened Kamote, Dried & Sweetened Gabi; Carrot Polvoron,
Malunggay Polvoron, Kamote Polvoron; Pastillas de Papaya, Pastillas de
Malunggay, Squash Pastillas; Kangkong Pancake and Malunggay Pancake.
Product Category
The products that will be sold are food, and falls under delicacies, for they
are choice food.
Brand
PROTOLIFE ENTERPRISE
42 Red St., Goodwill 2 Subd., Sucat, Paranaque
healthy eating at its fullest …
42 Red St., Goodwill 2 Subd., Sucat, Paranaque
826-9023/826-9024
VEGELIGHTS DELICACIES
Packaging
The packaging for the products will be cellophane wrappers for inidivual
pieces of the products.
Price
The price of the products will depend on the production costs. Things to
consider in coming up with a certain pricing are production costs, namely:
direct materials, direct labor and other indirect expenses. The total
production costs will be divided into how many has been produced to come
up with unit cost, then add a mark-up. The firm chose 80% mark-up to cover
other expenses. The capacity of units produced per day will be discussed in
Chapter 4.
Product Direct Cost of Overhead Yield Mark-Up Selling

Materials Labor (80%) Price
Carrot PhP 4,030 PhP 7,000 PhP 3,750 2,080 80% PhP 12.90
Polvoron
Malunggay PhP 3,666 PhP 7,000 PhP 3,750 2,080 80% PhP 12.60
Polvoron
Kamote PhP 3,796 PhP 7,000 PhP 3,750 2,080 80% PhP 12.60
Polvoron
Malunggay PhP 3,198 PhP 7,000 PhP 3,750 2,600 80% PhP 9.90
Pastillas
Squash PhP 3,510 PhP 7,000 PhP 3,750 2,600 80% PhP 9.90
Pastillas
Papaya PhP 3,302 PhP 7,000 PhP 3,750 2,600 80% PhP 9.75
Pastillas
Dried PhP 1,456 PhP 7,000 PhP 3,750 1,300 80% PhP 17.10
Kamote
Dried Gabi PhP 1,456 PhP 7,000 PhP 3,750 1,300 80% PhP 17.10
Kangkong PhP 3,484 PhP 7,000 PhP 3,750 780 80% PhP 32.85
Pancake
Malunggay PhP 3,484 PhP 7,000 PhP 3,750 780 80% PhP 32.85
Pancake
Place
The location site of the factory and the store outlet is good enough in its area
because it is near to the wet market and grocery, wherein, those are the
places for acquisition of raw materials and equipments in production, and
many people goes in and out everyday, including passers by.
Channel of Distribution: ( 0 – Level )
PRODUCER  CONSUMER
Promotion
Leaflets and brochures regarding the products will be disseminated on the

actual day or before the actual day of operations. Basically, those product
leaflets and brochures contains vital information regarding the product, its
strong benefits and its difference among the sweets and delicacies in the
market today. The cost of signboard for the firm is PhP 250.
CHAPTER IV
Technical Study
• To be able to identify the direct and indirect materials needed for

production.
• To be able to identify the cost of each materials needed.
• To be able to give a production schedule/capacity per day.
• To be able to determine the production cost for each goods.
• To be able to identify the equipments needed.
Product Description
The products that will be sold are food delicacies, in which there are
vegetable pieces mixed inside it, to form a healthy and delicious choice food.
Uses of the Product

Most people make delicacies as their deserts after meals. Delicacies are
also ideal for snack time because it is a choice food, and it is pleasing to the
taste buds. Therefore, Vegetable Delights makes a very healthy snack and
delicacy.
Process Flowchart
Peeling of each of the

3 vegetables
( 5 minutes )
Boiling of the vegetables
( 5 minutes each )
Slicing each vegetables

w/ kitchen knife.
Combine the powdered

milk and condensed milk
using mixing bowl.
Temporarily store all finished
pastillas in the cold storage
for 1 day.
Combine everything in a
mix bowl
Wrap each pieces using a

cellophane wrapper.
Using a hand-held mixer,
mix everything until firm.
( 20 mins. )
After mixing, turn all the

Slice each rolled
mixtures in a round plate
mixtures into small
for rolling.
pieces.
B. Vegetable Polvoron
( will be done on working table # 2 )
Peeling of 3
vegetables involved.
( 5 minutes )
Boiling of all the

vegetables involved.
( 5 minutes each )
Slice each boiled

vegetables
Toast the flour in a pan

Wrap everything in a
for 15 minutes.
cellophane wrapper.
Stirring of flour
( 15 minutes )
Temporarily place each
molded ones in an
airtight container and
place it in the
Mash each vegetables refrigerator.
Add mixtures of flour, Using a moulder, put

powdered milk, butter all the mixtures to
and sugar in a mixing each spots.
bowl.
C. Dried and Sweetened Vegetables
Peeling of kamote
and gabi
( 5 minutes )
Slice each kamote

and gabi into
strips
Boil the sliced

vegetables
Prepare a plate
and put all the
pack of sugar
Each dried goods can now

be packed in a clear
Spread sugar all plastic wrapper.
over the sliced
vegetables.
After 1 day, get all the dried

vegetables and put it in a
For 5 minutes, plate for packaging.
let kamote and
gabi soak with
sugar.
Leave the 2 vegetables

on the clean screen
Prepare a board for one whole day
screen board for either under the sun and
drying
D. Vegetable Pancake on the night time.
( Overnight )
Boil the vegetables

involved. Kangkong and
Malunggay separately.
( 5 minutes each )
Put all the contents of a

pack of flour in a mixing
bowl.
Put the evaporated milk in a

cup.
Mix all the ingredients

together with the boiled
vegetables. Each cooked
pancakes can now
be packed on a
clear plastic
Break a dozen of eggs in a

separate bowl.
The pancakes now

are ready to serve.
Put all cooked
pancakes in one
Combine everything in the huge plate.
first used mixing bowl.
Flip the pancake if

Fry each pancakes on a pan one side is brown
for 3 minutes each. already.
Description of the Process
Dried & Sweetened Kamote and Gabi:

1. Peel all the vegetables.
2. Slice a pack of kamote and gabi into pieces kitchen knife.

. 3. By using a plate, place 3 cups of sugar to each pieces of each
kamote and gabi.
4. Make sure the sugar reaches every corner, side of kamote and
gabi.
5. Place the sugar-coated kamote and gabi under the sun to dry
for one whole day in a clean screen board.
6. After a day, these vegetables are now ready to be be packed in a
plastic wrapper and put it in a container.
Squash, Papaya and Malunggay Pastillas:

1. Peel all the necessary vegetables.
2. Boil the squash, papaya, and malunggay for 3 minutes each on
separate boiling water.
3. Combine 1 bar of butter, 1 can condensed milk and the
powdered milk in a mixing bowl.
4. After 3 minutes, beat the boiled papaya, squash and malunggay
separately until firm.
5. Combine the squash, papaya & malunggay with the 3 ingredients.
6. Using a hand-held mixer, mix all the ingredients until firm.
7. Turn the mixtures in a round plate for rolling into pieces.
8. After rolling, the rolled mixtures should now be sprinkled with a cup
of sugar.
9. Each pastillas can now be wrapped in a cellophane that is cut into
small pieces.
Carrot, Malunggay and Kamote Polvoron
2. Boil each vegetables separately for 3 minutes.
3. On a pan, toast flour in a moderate heat for about 15 minutes,
or until light brown, stir constantly to avoid burning.

4. Remove the pan and transfer the mixture on a big bowl.
5. Mash each of the boiled vegetables.
6. Add the mixtures of powdered milk, sugar and melted butter
for 5 minutes.
7. In a mixing bowl, add the mixtures and the separately
mashed vegetables.
8. Using a moulder, put all the mixtures on each moulder.
9. Place the polvoron in a airtight container, chill in the refrigerator
until firm.
10. Carefully wrap the polvoron individually in a cellophane wrapper.
Squash, Kangkong and Malunggay Pancake

2. Boil each vegetables separately for 3 minutes.
3. Put the flour in a mixing bowl.
4. Put milk in a cup.
5. After boiling the vegetables, mash each separately on a
bowl until firm.
6. Break the eggs in the bowl.
7. Combine the vegetables in a bowl together with the main
ingredients.
8. Let the pancake mix cook about 5 minutes.
9. Flip pancake until top is brown.
10. Ready to serve and put in a plastic wrapper.
Production Schedule
The residential factory will operate from 9:00AM to 4:00PM, a total of

seven (7) hours a day and twenty-six (26) working days a month.
Assignments of the four (4) workers:

Worker Assigned Product to be Produced
A Vegetable Pastillas
B Vegetable Polvoron
C Dried & Sweetened Vegetables
D Pancake
All workers Packaging/Labelling of respective goods
Worker A // Vegetable Pastillas // Working Table No. 1

9:00am – 9:30am Peeling of the vegetables
9:30am – 10:00am Boiling of the vegetables separately
10:00am – 10:30am Beating of each vegetables
10:30am – 10:45am Combining of all ingredients.
10:45am – 11:00am Mix everything (all the ingredients) until firm
11:00am – 11:30am Turning the mixtures on a plate
11:30am – 12:00nn Place everything on the island table for storage.
Worker A can produce 100 units each of papaya pastillas, malunggay
pastillas and squash pastillas a day. See Material Balance.
Worker B // Vegetable Polvoron // Working Table No. 2

9:00am – 9:30am Peeling of necessary vegetables.
9:30am – 10:00am Boiling of all the vegetables separately.
10:00am – 10:15am Toasting of the flour in a pan for 15 minutes.
10:15am – 10:30am Transferring of the flour to a mixing bowl.
10:30am – 10:40am Mashing of all the vegetables.
10:40am – 11:00am Combining and mixing all the main ingredients
together with the vegetables.
11:00am – 11:30am Using a moulder, put all the mixtures in a moulder.
11:30am – 11:40am Place everything in an airtight container on the
island table for storage.
Worker B can produce 80 units each of kamote polvoron, malunggay

polvoron and carrot polvoron a day. See Material Balance.
Worker C // Dried & Sweetened Vegetables // Working Table No. 3

9:00am – 9:30am Peeling of vegetables.
9:30am – 10:00am Slicing each vegetables into thin cuts.
10:00am – 10:15am Pour all the sugar on a round plate.
10:15am – 10:45am Soaking of all the vegetables in the sugar for 1
hour.
10:45am – 11:00am Put everything on the screen board for drying,
leaving it overnight on the drying area.
Worker C can produce 50 units each of dried & sweetened kamote
and gabi a day. See Material Balance.
Worker D // Vegetable Pancake // Working Table No. 4

9:00am – 9:30am Boiling each vegetables separately.
9:30am – 9:40am Pour all the flour in a mixing bowl.
9:40am – 10:00am Pour evaporated milk in a cup.
10:00am - 10:15am Mash each vegetables on a mixing bowl.
10:15am – 10:20am Break the dozen of eggs in a bowl.
10:20am – 10:30am Combine everything in a bowl, mix everything for
10 minutes until mixture is firm.
10:30am – 11:30am Frying of all the pancake on a pan.
11:30am – 11:40am Flipping of pancakes.
11:40am – 12:00nn Put everything on the island table for temporary
storage and packaging.
Worker D can produce 30 units each of kangkong and malunggay
pancake a day. See Material Balance.
All Workers // Packaging // Island Table no. 2

Starting at 1:00pm, all workers should now pack all their produced goods on
that day. Therefore,
Worker A packs all pastillas products.
Worker B packs all polvoron products.
Worker C cannot yet pack dried & sweetened products, but on the
next day already because of its overnight basis.
Worker D packs all pancake products.
Before 4:00PM, the factory and its materials should be cleaned, the
packed products should now be inside the cold storage refrigerator, and
garbages should now be utilizing proper waste disposal methods, recyclable
and non-recyclable bins.
Material Balance
Carrot Polvoron
Quantity Materials
400 g All-Purpose Flour
200 ml Sugar
1 pack Carrots
350 g Powdered Milk

1 whole Cellophane Wrapper
50 g Butter
This is good for 80 pieces of carrot polvoron.
Malunggay Polvoron
Quantity Materials
200 ml Sugar
1 bundle Malunggay
300 g Powdered Milk
50 g Butter
This is good for 80 pieces of malunggay polvoron.
Kamote Polvoron
Quantity Materials
200 ml Sugar
1 pack Kamote
300 g Powdered Milk
50 g Butter
This is good for 80 pieces of kamote polvoron.
Malunggay Pastillas
Quantity Materials
350 g Powdered Milk
1 bundle Malunggay
200 ml Sugar
330 ml Condensed Milk
This is good for 100 pieces of malunggay pastillas.
Squash Pastillas
Quantity Materials
350 g Powdered Milk
1 half Squash
200 ml Sugar
This is good for 100 pieces of squash pastillas.
Papaya Pastillas
Quantity Materials
350 g Powdered Milk
1 pack Papaya (shredded)
200 ml Sugar
This is good for 100 pieces of papaya pastillas.
Dried & Sweetened Kamote

Quantity Materials
2 packs Kamote
200 ml Sugar
1 pack Plastic Wrapper
This is good for 50 pieces of dried & sweetened kamote.
Dried & Sweetened Gabi

Quantity Materials
2 packs Gabi
200 ml Sugar
This is good for 50 pieces of dried & sweetened gabi.
Kangkong Pancake
Quantity Materials
1 bundle Kangkong
400 g All-purpose Flour
330 ml Evaporated Milk
1 dozen Eggs
200 ml Sugar
This is good for 30 pieces of kangkong pancake.
Malunggay Pancake
Quantity Materials
1 bundle Malunggay
400 g All-purpose Flour
330 ml Evaporated Milk
1 dozen Eggs
200 ml Sugar
This is good for 30 pieces of malunggay pancake.
Production Capacity
Vegetable Pastillas ( all variants )

Year Daily Weekly Annual
2009 100 600 31,200
2010 110 660 34,320
2011 121 726 37,752
2012 133 798 41,496
2013 146 876 45,552
Total 610 3,660
Vegetable Polvoron ( all variants )

2009 80 480 24,960
2010 88 528 27,456
2011 97 582 30,264
2012 107 642 33,384
2013 118 708 36,816
Total 490 2,940
Dried & Sweetened Vegetables ( all variants )

2009 50 300 15,600
2010 55 330 17,160
2011 61 366 19,032
2012 67 402 20,904
2013 74 444 23,088
Total 307 1,842
Vegetable Pancake ( all variants )

2009 30 180 9,360
2010 33 198 10,296
2011 36 216 11,232
2012 40 240 12,480

2013 44 264 13,728
Total 183 1,098
** There will be a ten percent (10%) increase on production capacity on

each products every year.
Raw Materials
Quantity Materials Price Supplier

1 pack of 6’s Kamote PhP 10.00 Hi-way Wet Market
1 pack of 6’s Gabi 10.00 Hi-way Wet Market
1 bundle Kangkong 5.00 Hi-way Wet Market
1 half Squash (big) 17.00 Hi-way Wet Market
1 bundle Malunggay 5.00 Hi-way Wet Market
1 pack of 3’s Carrots (long) 19.00 Hi-way Wet Market

1 pack Papaya (shredded) 9.00 Hi-way Wet Market
330 ml Evaporated Milk 25.00 Hi-way Wet Market
350 g Powdered Milk 55.00 Hi-way Wet Market
400 g All-Purpose Flour 26.00 Hi-way Wet Market
200 ml Sugar 20.00 Hi-way Wet Market
330 ml Condensed Milk 28.00 Hi-way Wet Market
1 bar (50g) Butter 20.00 Hi-way Wet Market
1 dozen Fresh Eggs 42.00 Hi-way Wet Market
1 whole Cellophane 15.00 Hi-way Wet Market
1 pack Plastic Wrapper 16.00 Hi-way Wet Market
All of these raw materials are purchased from the Sucat Hi-Way Wet Market
for the reason that it is very near to the factory and they always have fresh
products. An inclusion also would be their affordable selling prices and it is
very near to the factory, walking distance, no costly transportation expenses
to be incurred.
Machinery & Equipments
Quantity Material/Equipment Price

1 Refrigerator PhP 12,500.00
PhP 12,500

1 (pack of 100s) Polvoron Moulder PhP 70.00
4 Peeler PhP 80.00
3 Electric Mixer PhP 150.00
2 Beater PhP 50.00
1 Gas Stove PhP 450.00
3 Boiling Pan PhP 120.00
5 Mixing Bowl PhP 100.00
PhP 1,020
Factory & Production Supplies

4 Apron PhP 320.00
8 Hand Gloves PhP 120.00
4 Hair Net PhP 40.00
4 Gas Mask PhP 40.00
PhP 520 x 12 months purchase/use = PhP 6,240
Plant Layout
The factory size is 20 square meters.

W Equipment Cooking W
Table Area
Cold Area
I I
4M 5M
Storage
N N
Area
D D
O O
W Island Table # 2 W
( Packaging and Labelling area )

For 6M
Raw
materials Working
ready for Table
processing Island Table # 1 #4
4M
( for finished products only ) 5M
6M
D
O
Working Working Working
R Table Table Table
#1 #2 #3
5M 5M 5M
Garbage 1 Garbage 2 Garden

Area
( Recyclable ) ( Non –
Recyclable )
( serves as Drying
Area for other
delicacies )
Plant Location
First, the location map of Paranaque City.
The factory is located in one of the proponents’ residence which is

located in # 42 Red Street, Goodwill 2 Subd., Sucat, Barangay BF Homes,
Paranaque City.
Blue Area of commercial sari-

sari and mini-grocery
Cocoon stores
HIDALGO’s
BENGGAL GROCERY
PLANT
AREA
( Protolife Ent. ) UPSOUTH
SCHOOL
IVR Motors and

Machines
Goodwill
Hyundai Motors 2
SKILL – POWER
Subd.,
INSTITUTE
Pro-Log Philippines
( entrance )
OSM Shipping VEGELIGHTS LAPID’s
Delicacies Chicharon
Nego-Skwela
Outlet
To Sucat Hi-way Wet Market


To BF Homes, Paranaque & Medical Center P’que
Direct Labor Requirements

The firm will hire four (4) workers for the production system. Their
roles would be, Worker A for the pastillas goods, Worker B for the polvoron
goods, Worker C for the dried & sweetened goods, and Worker D for the
pancake goods. They will be given a compensation of PhP 7,000 a month.
Utilities
The residential factory will spend a total of PhP 3,750 for its utilities
per month.
Utility Cost per month

Electricity PhP 3,000
Water PhP 200
LPG Tank PhP 550
PhP 3,750 / month
Waste Disposal
There is a regular garbage collection activity every night within the

factory’s location. Before 4:00PM, the factory’s wastes must now be
disposed on the designated garbage cans. The wastes that will be collected
are mainly: skins of peeled vegetables, excess wrappers used in packaging,
clattered and spilled ingredients, and the packages of used components in
production.
CHAPTER V
Management Study
• To identify the type of organizational structure suited for the business.
• To specify the form of business organization in relation to the numbers

of partners and their respective contributions as well as their division
of profits.
• To enumerate the qualifications and requirements of personnel

needed to fill the positions in the organization.
• To indicate the management and organizational policies to be put into

practice in the whole course of business.
Form of Business Organization
The proponents have mutually agreed to have Partnership as the form

of business organization. As stated in the law, this form of business
organization is composed of two or more person binding themselves to pool
their resources and funds to engage in the pursuit of a common business
objective without necessarily organizing themselves into a corporation, upon
which the law imposes a much higher form of regulation, limitation and
standards. It is also deemed that the partners have full knowledge of the
sharing of profits, even losses, even if it is silent. The partnership will be
general partnership since both partners have come into agreement that that
they will equitably share rights as well as the responsibilities entailed in
business. Likewise, each partner assumes the full liability for the debts and
obligations.
Capitalization
As agreed by the partners, the partnership shall be a General

Partnership. Each partner will give a sum of Php 500,000.00 each for a total
of Php 1,000,000.00. This sum will serve as the total initial capital of the
business.
Partner Amount Contributed

Tino-Paolo Andaya PhP 500,000.00
Ryan Jude Ponce PhP 500,000.00
TOTAL PhP 1,000,000.00
Organizational Structure
The two topmost levels are occupied by the General Manager and Assistant
General Manager. These two positions are manned by the two general
partners. The Assistant General Manager takes charge of the supervision
and training of the four workers.
GENERAL MANAGER
ASSSISTANT GENERAL MANAGER
WORKER WORKER WORKER WORKER
MISSION
Protolife Enterprise is bound to provide high quality products
that combine performance with value pricing while building relationship with
our customers and clients
VISION
Protolife Enterprise envisions to be the primary preference of
the market for delicacies and sweets while builds and maintains
customer-oriented culture.
Organization Policies
Selection of Employees:
The selection of employees will be based on the specified qualifications and
requirements stated. As a general rule, choice will also be based on the
physical condition, experience, training, moral character and age as these
points will surely affect the course of business.
Screening procedure:
All applicants should strictly follow the procedures listed below:
- Fill-up an application form, with 2x2 ID pictures, transcript of Record
from the school attended and Good Moral Character if applicable, NBI
clearance.
- Initial interview by the Assistant General Manager
- Applicants should take written exams prepared by the assistant gener-

al manager.
- Physical Examination paper
- SSS paper
- Tax identification number/ Tax paper
Hiring procedure:
The following listed are the procedures to be followed and
implemented in hiring of employees:
Testing:
It is presumed that an applicant who reaches this step has passed and
completed the necessary requirements and examinations

aforementioned.
Final Interview:
An applicant who has undergone the testing is scheduled to have the
final interview with the General Manager. The General Manager may,
despite of the completion of requirements of the former, decide not to
hire the applicants if he finds him/her unfit for the particular job.
Training:
Applicant/s should undergo briefing and training to better familiarize
and understand themselves to the nature of their jobs. The training of
the four workers will be headed and supervised by the Assistant
General Manager.
Organizational Policies:
Developing organizational policies is critical in every business as this will

serve as the very framework of business. The business’ set of organizational
policies encompasses five sections namely: Personnel Records, 13th month
pay, Attendance, Punctuality and Tardiness, Disciplinary Action and grounds
in application of such disciplinary action.
13th month pay
At the end of November each year, employees will be given their 13th
month pay, equivalent to their monthly pay.
Personnel Records:
All transaction and information with regards to the personnel shall be

centrally kept by the General Manager. The Assistant General
Manager, being the partner in the business, has also the right to
access the records in the legal business time.
Attendance
A record of Personnel Attendance is essential as this serves as a
basis for the merits, compensations and additional monetary
remunerations of the employees. Working hours will be 8 hours from
Monday to Friday.
Punctuality/Tardiness
In business organization, 8 (eight) working hours is being observed as

per Labor Code of the Philippines. As the partnership, being an artificial
being, drafted with the legalities prescribed by the law, this number of
working hours should be strictly practiced with some exemptions which will
be discussed in the succeeding paragraphs. Punctuality and Tardiness has
the undeniable impact as this will reflect on the quality and productivity rate
of the business. Therefore, all employees are expected to observe the
corresponding working hours.
The company shall issue Identification Cards and time cards to the
employees. The ID will be the legal evidence that they are a member of the
firm. Upon reporting for work, they should punch the time cards or record
their arrival/departure in the logbook/sheet.
Disciplinary Action
a) All employees must be familiarized with the company’s rules and regu-
lations drafted from the Labor Code of the Philippines. Regardless of
the position, each and everyone within the business is expected and
required to follow the policies as it was drafted on the context of im-
partiality and justice prevailing the organizational framework of the
business. The relationship among personnel should be in conformity
with the established known norms of human conduct and behavior.
b) The employee may, due to dishonesty, oppression, misconduct, negli-

gence of duty, conviction of crime involving moral turpitude, notori-
ously disgraceful conduct, willful disobedience , violation of existing
rules and some other reasonable directives as may be promulgated
from time to time under Article 272 of the New Labor Code of the Phil-
ippines as a just cause for termination, impose on its erring members
disciplinary actions which consist of but not restricted to reprimand,
supervision and dismissal from services as it may find commensurate
with the gravity of offense or offenses committed.
Grounds for Disciplinary Action:
The following are declared by the management to be grounds for

disciplinary action. Thus, all employees are deemed to act within the
context of organizational policies.
1. Habitual absence
2. Punching of other employee’s time card
3. Falsification of irregularities in accomplishing time records
4. Inefficiency and incompetence in the performance of the assigned task.
5. Abandonment of work / leaving office during office hours without consent

or permission.
6. Loafing, loitering and sleeping during office hours.
7. Lewdness
8. Dishonesty/Discourtesy/Dishonesty/Insubordination or refusal to obey

lawful orders.
9. Refusal to perform overtime or rest day work under any of the circum-
stances in Article 89&83 of the New Labor Code of the Philippines
10. Vandalism
11. Gambling and/or intoxication while on duty
12. Dereliction of duty, grave misconduct, negligence or carelessness in the

performance of duty
13. Unauthorized possession of firearm or deadly weapon
14. Stealing of company’s and fellow employee’s properties through direct

an indirect means
15. Unauthorized solicitation of business from company’ s customers
16. Withholding of company’s funds
17. Falsification of company’s records and documents, bringing home or out-

side the company’s premise without consent.
18. Fighting or provoking a fight within the company
19. Conduct prejudicial to the best interest of the service.
POSITION Required Job JOB DESCRIPTION Compensation

Numbers Specification (IN PESOS)
*deductable
General 1 (one) -graduate of -prepares marketing 22,000/mo
any 4 year- plan annually
Manager
course -prepares company
preferably policies and regulations
Business -formulates long-range
Administration plans, marketing
-has at least strategies, objectives
two year and programs
managerial -assures organization’s
experience mission-vision is
-has at least congruent with the
one year of operation and produces
managerial -implements and
experience administer
-has strong organizational policies
and effective
communication
skills
-at least 23
and above
Assistant 1(one) -graduate of -prepares yearly budget 18,000/mo

any 4-year -makes
General
course, recommendations for
Manager
preferably policies and programs
Business made by the General
Administration Manager
-has at least -responsible for hiring
one year of and selection of
managerial employees needed to fill
experience in the positions.
-has strong -trains and supervises
leadership skill the workers.
-possesses
strong and
effective
communication
skills
-at least 23
and above
Worker 4(four) -preferably -prepares the necessary 7,000 each/mo
High School ingredients.
graduate -responsible in making
-has the end-products
willingness to
undergo
training related
to the nature of
work
-willing to shift
works.
Position Monthly Salary x 12 Total

months
General Manager PhP 22,000 x 12 PhP 264,000
Assistant General PhP 18,000 x 12 PhP 216,000
Manager
Workers (4) PhP 7,000 each (28,000) PhP 336,000
x 12
TOTAL PhP 81,000 PhP 816,000 per annum
Legal Requirements
In conformity with the mandated law, the business shall comply with the
mandated requirements to be secured and completed prior to the operation
of business. Listed below are the various requirements as prescribed with
corresponding legal costs.
DTI Permit PhP 500.00

Mayor’s Permit 8,000.00
SEC Registration 4,000.00
BIR Registration 500.00
Community Permit 1,200.00
Sanitary Permit 100.00

Garbage Inspection Fee 700.00
TOTAL PhP 15,000.00
CHAPTER VI
Financial Study
• To be able to determine whether the firm gains a profit or a loss

from it operations.
• To be able to know the flow of finances within the business.
• To determine the total project cost of the business.
• To be able to find out the firm’s source of financing and other
alternatives.
• To determine the payback period of the venture.
Total Project Cost
Machineries and Equipment PhP 13,520

Supplies 6,240
Permit and Licenses 15,000
Office Supplies / Equipment 22,000
Furniture and Fixtures 3,300
Utilities 45,000
Raw Materials 376,584
Signboards 250
Promotion Expenses 1,000
Company IDs 70
TOTAL PROJECT COST PhP 482,964
Initial Capitalization
Partners Contribution
Tino-Paolo Andaya PhP 500,00.00
Ryan Jude Ponce PhP 500,00.00
TOTAL PhP 1,000,000.00
Source of Financing
The firm’s main source of financing is their parents. Each proponents were
given PhP 500,000.00 each in order to form part of their investment and
capitalization for the business operations.
Alternative Sources of Financing
Pawnshops, selling of personal properties, credit cooperatives, collaterals,

non-government organizations and banking institutions.
Assumptions – Financial Statements
** INVENTORY
From the annual production capacity output, there will be 10% unsold units,
meaning, 90% of the units produced will be sold.
** PROJECTED SALES (are based on Chapter 3 – Market Study)
** CAPITALIZATION/CASH
PhP 1,000,000 Derived from contributions of 2 partners: PhP 500,000 each.
** PRODUCTION CAPCITY
There will be 10% production capacity increase every year.
** SELLING PRICE
Selling price of each products will increase by 10% every year.
** DEPRECIATION
Is computed by using the straight-line method.
These fixed assets has lives of 5 years.
** SALARIES AND WAGES

Increases 5% every two years.
** UTILITIES
Increases 5% yearly.
** RAW MATERIALS
The prices of raw materials increases 2% yearly.
** TAX STATUS
For withholding tax purposes, these are the tax status of all the employees in
Protolife Enterprise:
General Manager Married, no dependents
Asst. General Manager Single
Supervisor Married, no dependents
All the workers (4) Single
** SUPPLIES
There is a 5% increase every year.
** Value-Added Tax (VAT) rate is 12%.
** Income tax rate for a general partnership is 35%.

Financial Statement Analysis
CURRENT RATIO
Current Assets / Current Liabilities
2009 2,250,964 / 1,255,254 = 1.79:1
2010 3,675,035 / 2,633,873 = 1.40:1
2011 5,553,454 / 4,264,048 = 1.30:1
2012 8,100,726 / 6,205,084 = 1.31:1
2013 11,437,685 / 8,576,206 = 1.33:1
QUICK ASSET RATIO

Gross Profit / Net Sales
2009 2,107,124 / 2,718,566 = 0.78%
2010 2,434,367 / 3,293,850 = 0.74%
2011 3,111,030 / 3,991,648 = 0.78%
2012 3,922,493 / 4,845,985 = 0.82%
2013 4,985,966 / 5,876,315 = 0.85%
PAYBACK PERIOD
Net Income / Investment
2009 634,530 / 1,000,000 = 0.63
2010 845,452 / 1,000,000 = 0.85
2011 1,248,244 / 1,000,000 = 1.25
2012 1,806,236 / 1,000,000 = 1.81
2013 2,425,836 / 1,000,000 = 2.43
WORKING CAPITAL
Current Assets – Current Liabilities
2009 2,250,964 - 1,255,254 = 995,710
2010 3,675,035 - 2,633,873 = 1,041,162
2011 5,553,454 - 4,264,048 = 1,289,406
2012 8,100,726 - 6,205,084 = 1,895,642
2013 11,437,685 - 8,576,206 = 2,861,479
RATE RETURN ON SALES

Investment / Net Income
2009 1,000,000 / 634,530 = 1.58
2010 1,000,000 / 845,452 = 1.18

2011 1,000,000 / 1,248,244 = 0.80
2012 1,000,000 / 1,806,236 = 0.55
2013 1,000,000 / 2,425,836 = 0.41
GROSS MARGIN RATE
Net Income / Net Sales
2009 634,530 / 2,718,566 = 0.23
2010 845,452 / 3,293,850 = 0.26
2011 1,248,244 / 3,991,648 = 0.31
2012 1,806,236 / 4,845,985 = 0.37
2013 2,425,8367 / 5,876,315 = 0.41
DEBT RATIO
Total Current Liabilities / Total Assets
2009 1,225,254 / 2,289,784 = 0.55%
2010 2,633,873 / 3,713,855 = 0.71%
2011 4,264,048 / 5,592,274 = 0.76%
2012 6,205,084 / 8,139,546 = 0.76%
2013 8,516,206 / 11,476,505 = 0.75%
QUICK RATIO
Quick Assets / Current Liabilities
2009 1,948,822 / 1,255,254 = 1.55:1
2010 3,309,000 / 2,633,873 = 1.26:1
2011 5,109,993 / 4,264,048 = 1.20:1
2012 7,562,309 / 6,205,084 = 1.22:1
2013 10,784,713 / 8,576,206 = 1.26:1
CHAPTER VII
Socio-Economic Aspect
1. To emphasize the importance of business and its role in the society
2. To describe the relevance of business in the government.
3. To stress the social responsibility the business should live by in

consonance with its vision-mission.
4. To analyze the social desirability of the company.
Business has always recognized that it has an important role,

alongside other actors, in the economic and social development of its
communities. It is an integrated part of any society and is committed to
operating in a responsible and sustainable manner. Along with doing
business, social responsibility is taking into topmost concern. This aspect
delineates the role of the business in the society and the means on how it
will be of help to the social development. Five points will be stressed that
the business aims to address in its pursuit in becoming an effective
catalyst of development in the society.
Employment Generation
Despite of its small nature, the business being in it start-up

stage will recognize its responsibility in alleviating fast-growing
unemployment rate. Specifically, the four lowest positions don’t have a
rigid and complex requirement to be filled in. The business has
decided not to require comprehensive requirements in these various
positions to give opportunities to those who weren't fortunate enough
to attain higher education.
Economic Contribution to the Philippine Economy
The role of business in the economy is undeniably essential

specifically, the small and medium enterprises or SMES. SMES in the
Philippines comprise the very backbone of our economy as they
generate income growth, stimulate spirit of entrepreneurship and
innovation, promote expansion and diversification of markets, increase
rate and investment base, alleviate threats for survival of the poor and
promote of pluralist society. Thus, we can say that SME sector,
specifically, serves as a crucial link to the seemingly incongruous
paradigms of the growth-led development strategies. In line with this,
our company opts to do business in assonance with the demands of
the society. The business shall contribute in paying taxes on time.
Health advocacy
Compared to the existing delicacies offered today in the
market, Vegelights offers an array of innovative products which make
use of various vegetables as its main ingredient thus, giving a whole
lot of meaning in eating delicacies. We don’t want people to center
their delicacies solely on its taste, but on health benefits as well. Most
vegetables that we use for our delicacies are found and proven to
have health effective benefits.
Legal Responsibilities
As a partnership, we are bound to do business according to
what the law mandates. Along with faithfully and religiously paying
taxes, the business will strictly comply with the government’s rules and
regulations in business practice. Some of the concrete examples are
responsible waste disposal and environmental awareness. Rules set
by the authority are required to abide by the company in a strict and
disciplined manner.
Ethical Responsibilities
Congruent with practice of legal responsibilities, the company
also fosters ethical responsibilities. The company will observe ethical
standards as this marks societal beliefs of “good behavior”. This may
be such as appropriate overtime remuneration for long hours or an
"unofficial" punch-out time. Ethical responsibilities are voids in the
legal system and allow firms to act with humanitarian values in mind.
Discretionary responsibilities will also be encouraged such as

engaging into charity runs and outreach program
SALARIES & WAGES

Position 2009 2010 2011 2012 2013
General 22,000 22,000 23,100 23,100 24,255
Manager
Assistant 18,000 18,000 18,900 18,900 19,845
Gen. Mgr.
Supervisor 13,000 13,000 13,650 13,650 14,333
Worker 1 7,000 7,000 7,350 7,350 7,718
Worker 2 7,000 7,000 7,350 7,350 7,718
Worker 3 7,000 7,000 7,350 7,350 7,718
Worker 4 7,000 7,000 7,350 7,350 7,718
TOTAL 81,000 81,000 85,050 85,050 89,305
(Yearly) 972,000 972,000 1,020,600 1,020,600 1,071,660
UTILITIES
Utility 2009 2010 2011 2012 2013
Electricity 3,000 3,150 3,308 3,473 3,647
Water 200 210 221 232 244
LPG 550 578 607 637 669
TOTAL 3,750 3,938 4,136 4,342 4,560
COST OF PRODUCTION
2009 2010 2011 2012 2013
Direct 376,584 384,120 391,812 399,744 407,724
Materials
Direct Labor 336,000 336,000 352,800 352,800 370,464
Manufacturing 201,000 203,256 213,432 215,904 226,716
Overhead
TOTAL 913,584 923,376 958,044 968,448 1,004,904
SSS CONTRIBUTIONS
Position 2009 2010 2011 2012 2013
Gen. Mgr. 1,590 1,590 1,590 1,590 1,590
Asst. Mgr. 1,590 1,590 1,590 1,590 1,590
Supervisor 1,362 1,362 1,414 1,414 1,518
Worker 1 738 738 790 790 790
Worker 2 738 738 790 790 790
Worker 3 738 738 790 790 790
Worker 4 738 738 790 790 790
TOTAL 7,494 7,494 7,754 7,754 7,858
PHILHEALTH CONTRIBUTIONS
Position 2009 2010 2011 2012 2013
Gen. Mgr. 550 550 575 575 600
Asst. Mgr. 450 450 450 450 475
Supervisor 325 325 325 325 350
Worker 1 175 175 175 175 175
Worker 2 175 175 175 175 175
Worker 3 175 175 175 175 175
Worker 4 175 175 175 175 175
TOTAL 2,025 2,025 2,050 2,050 2,125
PAG-IBIG CONTRIBUTIONS
Position 2009 2010 2011 2012 2013
Gen. Mgr. 100 100 100 100 100
Asst. Mgr. 100 100 100 100 100
Supervisor 100 100 100 100 100
Worker 1 100 100 100 100 100
Worker 2 100 100 100 100 100
Worker 3 100 100 100 100 100
Worker 4 100 100 100 100 100
TOTAL 700 700 700 700 700
PURCHASES - RAW MATERIALS

For Carrot Polvoron
Material 2009 2010 2011 2012 2013
Flour 26 26.52 27.05 27.59 28.14
Sugar 20 20.40 20.81 21.23 21.65
Carrots 19 19.38 19.77 20.17 20.57
Powdered 55 56.10 57.22 58.36 59.53
Milk
Butter 20 20.40 20.81 21.23 21.65
Cellophane 15 15.30 15.61 15.92 16.24
TOTAL 155 158.10 161.27 164.50 167.78
Monthly 4,030 4,110.60 4,193.02 4,277 4,362.28
Malunggay Polvoron
Material 2009 2010 2011 2012 2013

Flour 26 26.52 27.05 27.59 28.14
Sugar 20 20.40 20.81 21.23 21.65
Malunggay 5 5.10 5.20 5.30 5.41
Powdered 55 56.10 57.22 58.36 59.53
Milk
Butter 20 20.40 20.81 21.23 21.65
Cellophane 15 15.30 15.61 15.92 16.24
TOTAL 141 143.82 146.70 149.63 152.62
Monthly 3,666 3,739.32 3,814.20 3,890.38 3,968.12
Kamote Polvoron
Material 2009 2010 2011 2012 2013
Flour 26 26.52 27.05 27.59 28.14
Sugar 20 20.40 20.81 21.23 21.65
Kamote 10 10.20 10.40 10.61 10.82
Powdered Milk 55 56.10 57.22 58.36 59.53
Butter 20 20.40 20.81 21.23 21.65
Cellophane 15 15.30 15.61 15.92 16.24
Total/Monthly 3,796 3,871.92 3,949.40 4,028.44 4,108.78
Malunggay Pastillas
Material 2009 2010 2011 2012 2013
Malunggay 5 5.10 5.20 5.30 5.41
Powdered 55 56.10 57.22 58.36 59.53
Condensed 28 28.56 29.13 29.71 30.30
Sugar 20 20.40 20.81 21.23 21.65
Cellophane 15 15.30 15.61 15.92 16.24
Total/Monthly 3,198 3,261.96 3,327.97 3,393.52 3,461.38
Papaya Pastillas
Material 2009 2010 2011 2012 2013
Papaya 9 9.18 9.36 9.55 9.74
Powdered 55 56.10 57.22 58.36 59.53
Condensed 28 28.56 29.13 29.71 30.30
Sugar 20 20.40 20.81 21.23 21.65
Cellophane 15 15.30 15.61 15.92 16.24
Total/Monthly 3,302 3,368.04 3,435.38 3,504.02 3,573.96
Squash Pastillas
Material 2009 2010 2011 2012 2013
Squash 17 14.34 17.69 18.04 18.40
Powdered 55 56.10 57.22 58.36 59.53
Condensed 28 28.56 29.13 29.71 30.30
Sugar 20 20.40 20.81 21.23 21.65
Cellophane 15 15.30 15.61 15.92 16.24
Total/Monthly 3,510 3,580.20 3,651.96 3,724.76 3,799.12
Dried & Sweetened Kamote

Material 2009 2010 2011 2012 2013
Kamote 20 10.20 10.40 10.61 10.82
Sugar 20 20.40 20.81 21.23 21.65
Plastic 16 16.32 16.65 16.98 17.32
Total/Monthly 1,456 1,485.12 1,514.76 1,545.18 1,575.86
Dried & Sweetened Gabi

Material 2009 2010 2011 2012 2013
Gabi 20 10.20 10.40 10.61 10.82
Sugar 20 20.40 20.81 21.23 21.65
Plastic 16 16.32 16.65 16.98 17.32
Total/Monthly 1,456 1,485.12 1,514.76 1,545.18 1,575.86
Kangkong Pancake
Material 2009 2010 2011 2012 2013
Flour 26 26.52 27.05 27.59 28.14
Sugar 20 20.40 20.81 21.23 21.65
Kangkong 5 5.10 5.20 5.30 5.41
Evaporated 25 25.50 26.01 26.53 27.06
Butter 20 20.40 20.81 21.23 21.65
Eggs 42 42.84 43.70 44.75 45.64
Plastic 16 16.32 16.65 16.98 17.32
Total/Monthly 3,484 3,553.68 3,624.92 3,701.88 3,775.72
Malunggay Pancake
Material 2009 2010 2011 2012 2013
Flour 26 26.52 27.05 27.59 28.14
Sugar 20 20.40 20.81 21.23 21.65
Malunggay 5 5.10 5.20 5.30 5.41
Evaporated 25 25.50 26.01 26.53 27.06
Butter 20 20.40 20.81 21.23 21.65
Eggs 42 42.84 43.70 44.75 45.64
Plastic 16 16.32 16.65 16.98 17.32
Total/Monthly 3,484 3,553.68 3,624.92 3,701.88 3,775.72
WITHHOLDING TAX
Position 2009 2010 2011 2012 2013

Gen. Mgr. 1,968.75 1,968.75 2,110.93 2,110.93 2,284.18
Asst. Mgr. 1,468.75 1,468.75 1,581.25 1,581.25 1,699.38
Supervisor 862.57 862.57 927.57 927.57 1,010.38
Worker 1 285.37 285.37 311.62 311.62 339.22
Worker 2 285.37 285.37 311.62 311.62 339.22
Worker 3 285.37 285.37 311.62 311.62 339.22
Worker 4 285.37 285.37 311.62 311.62 339.22
TOTAL 5,4412 5,442 5,866 5,866 6,351
VALUE-ADDED TAX (VAT) PAYABLE
2009 2010 2011 2012 2013

Output Tax 326,228 395,262 478,998 581,518 705,158
Less: Input
Tax
Supplies 749 786 826 867 910
Utilities 5,400 5,671 5,956 6,252 6,566
Purchases- 45,190 46,094 47,017 47,969 48,927
Raw
Materials
Total 274,889 342,711 425,199 526,430 648,755
VAT Payable 22,907 28,559 35,433 43,869 54,063
MANUFACTURING OVERHEAD
2009 2010 2011 2012 2013
Utilities 45,000 47,256 49,632 52,104 54,720
Indirect 156,000 156,000 163,800 163,800 171,996

Labor
Total 201,000 203,256 213,432 215,904 226,716
Other expenses
SUPPLIES
2009 6,240
2010 6,552
2011 6,880
2012 7,224
2013 7,585
MISCELLANEOUS EXPENSES
2009 2010 2011 2012 2013
Promotions 1,200 1,260 1,323 1,389 1,458

Delivery 2,400 2,520 2,646 2,778 2,917

Signboard 250 250 350 350 450
Company ID 70 70 80 80 90
Total 3,920 4,100 4,399 4,597 4,915
PERMIT AND LICENSES
2009 15,000
2010 15,000
2011 16,330
2012 16,330
2013 17,962

Colegio de San Juan de Letran: Intramuros, Manila

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Colegio de San Juan de Letran: Intramuros, Manila

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Colegio De San Juan De Letran 1

College of Business Administration and Accountancy

Colegio de San Juan de Letran

In Partial Fulfillment of the Requirements

Presented to the faculty members of

CHAPTER II – Introduction/Background of the Study 10

CHAPTER III – Market Study 13

CHAPTER IV – Technical Study 28

CHAPTER V – Mangement Study 50

CHAPTER VI – Financial Study 64

CHAPTER VII – Socio-Economic Aspect 70

A. Name of the Firm

“Protolife” is derived from the Greek/Latin word “proto” meaning

The head office/factory is located in one of the proponent’s residence

C. Brief Description of the Project

The proposed business will focus on producing well-known

Protolife is a partnership form of a business organization, headed by

The parents of the proponents gave them an equal amount of money

The firm would be able to contribute to government through taxes

Brief Background of the Study

Objectives of the Study

• To be able to describe the business proposal.

• To be able to find out whether to pursue this business in the near

Operational Definition of Terms

Contingency Fund – A reserve set aside against unforeseen expense.

Delicacy – The quality of being delicate. Something pleasing and appealing,

Manufacturing – It is the process of converting raw materials into finished

Organization – Group of people working to achieve common goals.

Overhead – These are non-labor, indirect manufacturing expenses such as

Pre-Operating Activities – These are set of activities that has to be

Technical - Relating to the technique or proficiency in a practical skill.

Scope and Limitation of the Study

This project study will be focusing only on producing vegetable food

Objectives of the Study

• To be able to develop good marketing strategies for the business

• To be able to determine the demand and supply situation for the

• To be able to identify the consumer public’s taste and preferences

• To be able to determine the pricing strategy of the business.

• To be able to give projections on the product’s future demand and

The proponents used indirect method as its main methodology in

where: n = sample size n= N______

Under this observation, the proponents acquired a census of

Name (Optional)_________________ Age______ Sex_______

1. Do you eat delicacies ?

2. What delicacy do you usually buy?

3. Where do you usually buy delicacies?

4. How much do you spend per purchase?

5. What flavors do you usually buy for the following delicacies?

6. How often do you buy delicacies ?

7. Are you aware of the vegetable-mixed delicacies such as vegetable pastillas,

8. Are you willing to try our delicacies?

Thank you very much and God bless you!

Demand & Supply Analysis/Gap

Computation for Historical Demand:

Year 2008 42,000 x .02 = 840

Year 2007 41,160 x .02 = 823.2

Year 2006 40,337 x .02 = 806.74

Year 2005 39,530 x .02 = 790.6

Year 2004 38,739 x .02 = 774.78

Computation for Projected Demand:

To be able to compute for the projected demand, use the Arithmetic

Year 2009 41,160 + 799 = 41,959

Year 2013 44,356 + 799 = 45,155

Name (Optional)_________ Age Sex_