Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Chapter I
Executive Summary A. Types of Business 1. Nature of Business Nerriena’s Food Company is a manufacturing type of business. It will manufacture a highly specialized product govern by three individuals under the partnership agreement. Since partners are college friends and already built a trust to each other, they decided to combine their properties and money as a source of their profit for the best interest of their business operation.

The proponents wished to enter the food industry specialized in creative alternative yet nutritious snack/merienda for the reason that Filipino are known for being a merienda lover. Just how much do, we, Filipinos love to eat, besides the usual three meals a day, we have morning and afternoon snack so that cassava-custard cake is one of the best option of Filipino in taking merienda. It can also be a dessert because it is like a leche plan but more delicious than the leche plan.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration 2. Name

The owners decided the name of the company as “NERRIENA’s Food Co.” It was derived from the name of the owners, namely; Kristine wherein Ne was taken. rrie for Jerrilyn and na for Ronalyn. Using Nerriena as proponent’s company name was tribute for friendship and as a compliance to their promise before, that they will going to establish a business under that firm name.

3. Product Cassava Custard Cake is definitely a nutritious and delicious snack. Cassava will partly added with choco-mocha which is a unique flavor cassava cake and to make it different in taste into the other cassava products. It is an excellent source of nutrition and energy. Other healthy ingredients are sugar, milk, coconut milk, cheese etc. B. Management, Marketing and Financial Highlights Management Aspect Once marketing issues have been addressed, it is the time to take a look at key organizational issues. A study of this aspect will help the management to select the appropriate form of business, design the internal structure and staff organization, with who is the appropriate and qualified individual to manage the business or might as

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration well call on the certified attorney or other advisor if necessary. All of these should be geared towards the efficient operation of the project.

Marketing Aspect The aim of the marketing study is to ascertain the future total demand for the product; determined the competitive situation of the product in the industry, establish the annual quantity which it may sell, estimate the future selling prices and design of the marketing program for the product. The market analysis should be conducted because it is critical in the success of the business. It results to information about the market potential which provides the basis of accurate sale forecasts and marketing strategy. The purpose of market analysis is to thoroughly acquaint yourself with all the aspects of market so that you can formulate a plan to capture a share of it.

Financing Aspects The cash requirements and financing leverage of the firm on one hand, and the investment policies of institution on the other should be thoroughly weighed. The purpose of this is to obtain adequate financing on the most reasonable terms.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

C. Socio- Economic Contributions Establishing a business is very risky especially now that our economy Is facing economic crisis condition. Taking the risks is one way of proving that there is always a way to balance every situation in any circumstances. Being one of those manufacturers in the food industry, we assure that we will contribute betterment not only for us but for everybody. First we want to promote healthy food with regards to our product. Through cassava custard cake in its simple way we can supply the excessive loss of nutrients to maintain healthy body function for Filipinos. Second, we fully understand that, to find a job today is really hard, so, Nerriena’s Food Co. is said to be a “Job Creator” We are looking forward to generate income for economic benefits.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Chapter II
Marketing Plan

The marketing aspect is the most important part in making project feasibility study because it serves as an instrument on the effectiveness of the strategies used as evidenced by the sales turnover. The primary concern of the small business enterprise in making an analysis on the trend of services and in manufacturing, the company will determine its profitability but also the changing trends of market, for the producers/business owner to come out with the new kinds of the product and manufacturing according to the needs of the customer. A. Product/Service

Food is in demand, the demand as evident, is taking a great share of the market, just as Filipinos are starting to have the feel of enjoying quick merienda and dessert. Nerriena’s Food Company provides Cassava –Custard Cake that will suit each customer’s taste preferences especially Filipinos because we Filipinos love to eat “kakanin” even foreigners like it. Services will be open from 8:00 am to 8:00 pm everyday.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration B. Target Market 1. Area Coverage Location is considered essential to the marketing mix, no matter good your product /services if it is not accessible to the target market, the effort of the management business found out to be useless. Poblacion as a melting pot of Muntinlupa is the accessible target place by the proponent. Nerriena’s Food Company is located at the Poblacion Muntinlupa City beside Julies Bakeshop near OLACS ( Our lady of Abandoned Church School) were the customer could easily drop by to have merienda and refreshments. 2. Consumer Cassava-Choco Delight is any age not less than 1 or 2 years old. Our product is not just good for life but also helping consumers in maintaining their healthy life.

C. Demand and Supply Analysis 1. Total Potential Demand

Over the years, the Philippines witnessed a substantial growth in the Manufacturing and Food Industry food is intricately linked with its culture and traditions. Outside the home, eating has become lucrative for the retail business. The demand for the food like Cassava Custard Cake is now gaining for a lots of franchise business offered it.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Our company will be introducing a different style of making cassava cake and by the product name Cassava-Custard Cake that will attract Pinoy taste preference. We have computed the total population from the current population in Barangay Poblacion, Muntinlupa City which is 80,801 and the growth rate is .014. See Table 1.

Table 1 Nerriena’s Food Company Demand Schedule Potential Customers in Poblacion Muntinlupa City
Estimated Total YEAR Population .014 Projected Demand 70% Demand for CCC 5% of Population Projected # of Cassava Cake Projected Demand in a Week Projected Demand in a Month Total demand (Projected demand)*12 months

2010 2011 2012 2013 2014 Note: • •

80,801 81,932 83,079 84,242 85,421

56,561 57,352 58,155 58,969 59,795

2,828 2,868 2,908 2,948 2,988

3 3 3 3 3

8484 8604 8724 8844 8964

33,936 34,416 34,896 35,376 35,856

407,232 412,992 418,752 424,512 430,272

.014% Growth of Barangay Poblacion, Muntinlupa City from the Muntinlupa Municipality Projected Population of Barangay Poblacion. 70% projected demand for Cassava Custard Cake for ages 5- above y/o (3 pieces of cassava cake per order)

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Table 2 Nerriena’s Food Comapany Projected Sales Supply Gap *.014% (per order) 57,012 57,819 58,625 59,432 60,238 Price ** 5% 30 31.50 33.08 34.73 36.47 Annual Projected Sales 1,710,360 1,821,299 1,939,315 2,064,073 2,076,404 Monthly Projected Sales 142,530 151,775 161,610 172,006 173,034

Year 2010 2011 2012 2013 2014 Note: • • •

.014% Growth Rate of Alabang basis for increase in supply gap 5% Inflation Rate basis for increase in price 3 slices of Cassava cake per order

2. Present Competitors The 70% of the population of Barangay Poblacion is composed of 5 years old and above. On the 70%, based on the survey that the proponents conducted 5% of the total population will purchase Cassava-Custard Cake. From the total demand of Cassava Food Industry we will have 14 % customers.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Competitors are as follows: - Nena’s Cassava store - Julies Bakeshop - Alvarez Bakeshop 33% 28% 25%

Table 3 Projected Number of Competitor Total Demand Year (Projected demand *12 2010 2011 2012 2013 2014 mons/order) 407, 232 412, 992 418, 752 424, 512 430, 272 Nena’s Cassava Store 33% 134, 387 136, 287 138, 188 140, 089 141, 990 Julies Bakeshop 28% 114, 025 115, 637 117, 250 118, 863 120, 496 Alvarez Bakeshop 25% 101, 808 103, 248 104, 688 106, 128 107, 568 CassavaCustard Cake 14 % *supply gap 57, 102 57, 819 58, 625 59, 432 60, 238

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration D. Marketing Program and Strategies

To make the people aware of this newly launched product, certain strategies must be done even before operations. Printing of flyers will be one way of introducing the product. The use of banners and streamers will also be effective. Marketing Program Product There will be the same kind of compound to other in its nature but in its content and mixture will differ for is more nutritious and delicious. Pricing As a start, we want to accept by society from the time we have opened the business. We determine our prices by getting the large number of tallies to survey which the people we have surveyed want the majority of the reasonable price the price set is P30.00 E. Marketing / Selling Expenses In this section of the marketing plan, the proponent has decided to give flyers (leaflets), banners and streamers Table 4 Types of advertisement Flyers (leaflets) Banners Steamers Total Cost Php. 1,500 Php. 1,000 Php 500 Php. 3,000

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Chapter III

Production/ Operation Plan A. Technical Production Description The technical aspect of this study involves the proposed projects’ producing process of the product, building and a structure, the capacity and design of the machinery, plant size and plant layout.. This is also deals with the requirements with the raw materials, and other supplies and the labor requirements. The section on technical study to the Cassava-Custard Cake aims to provide a description of the proposed process for producing Cassava Cake wherein items will be presented only to the extent necessary to understand the business and come up with realistic estimates costs. The financial study will therefore reflect costs based on whatever technical and production data the proponents and other industry sources provided. The result of this study can calibrate and adjusted if there are charges in product design.

B. Production/ Operation Process 1. Step by step procedure in making Cassava-Custard Cake(Cassava Cake) Step 1: Step 2: Grind the raw cassava Squeeze the grinded cassava Pamantasan ng Lungsod ng Muntinlupa College of Business Administration Step 3: Step 4: Mixed all the ingredients To make topping, combine condensed milk, egg yolk, coconut milk and sugar

Step 5:

Spoon 1 tablespoon of caramelized sugar (for topping) into the (cooking pan) llanera for topping purposes.

Step 6: Step7: Step 8:

Put 1 cup of mixed cassava into the (cooking pan) llanera. Meanwhile, boil water When the water gets to a rolling boil, arrange the llanera with cassava in the steamer and between stand for maximum of 1 hour.

C. Manufacturing Process

Grinding- Squeezing- Mixing- Boiling – Steaming 2. Labor and Machinery requirements per step
To complete the flow of the operation the following are needed: Table 5 LABOR Food service supervisor Manager REQUIREMENTS Supervise and monitor the flow of production Secure the quality if the product being purchase Production Chief (cook) Do the tabulating and daily recording of sales In charge in all product preparation Checks all products as it leaves the production area and tabulates each individual order or proportion of the product.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Cashier/ Service Crew

-

Receiving payment made by the customer Itemize and total all customer order (per day)

The following are the machines needed for the company operation: Table 6 MACHINES / EQUIPMENTS Steamer Grinder Llanera (cooking pan Electric Stove Freezer USES - Use to cook / steam the cassava cake. - Grind the cassava into a very small pieces - Use to have different size and designs of Cassava cake - Use to cook the product - A storage cabinet, compartment. Or room where food or other perishable goods can be frozen and preserved at a very low temperature. D. Machinery/ Equipment Requirement Table 7 ITEM 1. Freezer 2. Electric Stove 3. Grinder 4. Llanera (cooking pan) 5. Steamer Total QUANTITY 1 pc. 2 pcs. 2.pcs. 300 pcs. 2 pcs. COST 10,000.00 5,000 1,500 3,000 3,000 22,500

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration E. Raw Materials Requirement Production Cost 100 pcs of Cassava (produce) Table 8 Direct Materials Cassava Chocolate (powder) Margarine Cheese Unit(s) 20 kilos 320 ml 15 grams 2 boxes Cost 10.00 76.00 25.00 32.00 Unit Per kilo Per piece Per piece Per box Total 200 76 76 72

Coconut Milk Milk (condense) Egg Sugar Total Indirect Materials Plastic box Plastic bag

10 kilos 5 pieces 50 pieces 5 kilos Unit(s) 500 pieces 1,000 pieces

11.50 62.00 4.00 29.80 Cost

Per kilo Per piece Per piece Per Kilo Unit

116 310 256 149 Php.1,255 Total Php 250.00 Php 200.00 Php. 450.00 1,705 3 / slices 5,115 87 / days 445,005

Php.50/100pcs. Per pieces Php.10/ 100pcs. Per pieces

Total Direct and Indirect Materials Multiply by Cost Per Order (DM) Multiply by

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Divide by Units to be Produce Cost of Direct Materials (order) Divided by Cost of Direct Materials (units)

61,763 / units 7.21 / order 3 2.40 / unit

Direct Labor No. of Crew Production Laborer 1 Divided by units to be produce Divided by Direct Labor Cost Factory Overhead 13th Month Pay Payroll Taxes Insurance

Rate/ day 300

monthly 9,000

Annual 108,000 61,763 3 0.58 / unit

45,000 30,600 754

Light and Water Repair and Maintenance Rent Depreciation Total Divided by Units to be produce Cost per Unit Multiply by Cost per Order Mark up (102%) Price

29,880 1,885 2,500 7,682 118,301 61,763 1.92 / unit 4.90 / unit 3 14.70 14.99 (29.69) P30.00

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

F. Plant / Factory Location. Location is a vital part in the success of the business to be established. It’s determines the feasibility and accessibility to the propose customer. Cassava-Custard Cake is proposed in National Road Poblacion, Muntinlupa City besides (OLACS) Our Lady of Abandoned Church School.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration G. Plant Layout This includes the factor plan of the establishment. This will gives us an idea of how it will look like when it is finished. Also, the proposal layout is to be able to allocate divide or at least can properly minimized the space.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

H. Waste Disposal System Garbage shall be disposed through the garbage collector. Garbage truck collectors usually garbage daily and the trash should be disposed properly. The company’s waste disposal is located at the backside near delivery lock of the store.

Garbage will compose of biodegradable and non- biodegradable with separate trash cans. Water waste shall be disposed through drainage pipers installed in the premises. The drainage pipers course the ways to the main sewerage system in the area.

I. Quality Control Nerriena’s Food Company aims to having satisfaction to each customers that consumes their product. Certain standard measures should be settled to ensure qualities of the product as well as to service. Below are someway to provide quality control system. • • • • Standard recipe Standard sized and quality Proper sanitation Proper hygiene and cleanliness on the production (includes the proper attire of the crews)

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Chapter IV
Organizational Structure

The organization Plan includes the study of the organization and forms of the business with its keys personnel and officers. In this aspect we can determine the real effectiveness of the organizational structure. The organizational plan is also important because it presents the information and planning up the initial operation of the business. The effectiveness of this plan will bring to realization the feasibility of this project.

A. Legal Form of the Business The proposed business venture named “Nerriena’s Food Company” will be organized as a partnership; an association of two or more persons who contribute money, property, talent or industry with the intention dividing the profit and losses among themselves according to their agreed ratio. Each partner is personally liable for any debt incurred by the partnership.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

B. Organizational Structure

Manager(s)

Chief Cook(s)

Packaging Purchaser

Cashier(s)/ Crew

C. Qualification of Officers The propose business will be the General Manager, Finance Manager, Supervisor and Customer Relation Staff or Service Crew. The employees will be required to work 8 hours including one hour break a days. The business will start operating from 8am to 8 pm equivalent to 12 hours. So if it is necessary in shifting schedule, it is allowable depending on the availability of each employees/staff. Each employee will do their duties and tasks assigned to them. It can be expected that different special services will perform by each staff, according to the needs of the customer.

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration Table 9 JOB SPECIFICATION General Manager JOB DESCRIPTION

• • • • • • •

Single 25-35 years old At least 3 years of working experience Must have excellent skills in managing a business Analytical, hardworking and result oriented Leadership Skills Graduate in BS Management

• • • •

Will handle overall movement of business Will undertake the decision making aspect of the business Will allocate resources among various assets Responsible in preparing financial statement every end of the month; Income statement, Balance sheet and Cash Flow

Responsible in disbursements of fund and as well depositing sales in the bank.

Table 10

Production Chief or Cook • JOB DESCRIPTION The chief cook direct and participates in the preparation and serving of meals • Determines things and sequence of operation required to meet serving times • Inspects galley and equipment for cleanliness and proper storage. Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

JOB SPECIFICATIO • 18- 25 years old • • • At least 2 years in College (HRM Course) Must have good Cooking Has a pleasing personality

Table 11

Cahier or Service Crew • • JOB SPECIFICATION 18-25 years old At least 2 years in College (have background in Accountancy) • • Must have good public relation Has a pleasing personality • • • • JOB DESCRIPTION Will handle all inquiries and phone calls Do record keeping and tabulating of sales (per day) Itemize and total all customer order (per order) Prepares sales summary

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration D. Gantt Chart
June
1. Gathering of useful data and information

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

2. Preparation procurement of location site 3. Processing the permits and license to be needed 4. Determining and purchasing of materials 5. Site development 6. Acquisition of equipment, furniture and supplies 7. Advertising and promotion 8. Recruitment and selecting of employees 9. Training employees 10. Opening of the store

E. Administrative Expense Table 12 Position Food Production Chief Cook Cashier/Service Crew Packaging Crew Total Note: • Minimum rate of employees P 300.00 per day. Pamantasan ng Lungsod ng Muntinlupa College of Business Administration No. of Employees 2 persons 2 persons 1 person 5 employees Rate per Month 9,000.00 9,000.00 9,000.00 27, 000.00 Monthly Cost 18,000.00 18,000.00 18,000.00 54,000.00

Chapter V
F. List of Schedule Schedule 1 Projected Sale

Year 2010 2011 2012 2013 2014

Supply Gap 57, 012 57, 819 58, 625 59, 432 60, 238

Price 30 31.50 33.08 34.73 36.47

Sales 1,710,630 1,821,299 1,939,315 2,064,073 2,196,880

Schedule 2-a Cost of Sale Items Raw Material Used Direct Labor Factory Overhead Total Manufacturing Cost Add: Finished Goods, Buy Total Available for Sales Less: Finished goods, Ending Cost of Sales 2010 148,321 35,823 118,585 302,729 302,729 26,368 276,361 2011 169,818 40,433 132,754 343,005 26,368 369,373 28,089 341,284 2012 181,069 42,364 138,706 362,139 28,089 390,228 29,896 360,332 2013 192,571 44,333 144,774 381,678 29,896 411,574 31,848 379,726 2014 205,016 46,339 150,954 402,309 31,848 434,157 33,885 400,272

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration Schedule 5 Insurance Items Factory Machinery & Equipment Office Equipment & Furniture Other Equipment Total Schedule 6 Depreciation Base 22,500 11,485 3,725 Rate 2% 2% 2% Insurance Operating Factory 450 229.7 74.5 754.2 70% 450 160.79 610.79 30% 68.91 74.50 143.41

Items Leasehold Improvement Office Equipment Factory machinery & Equipment Other Equipment Total Schedule 7 Rent Expense

Total Cost 2,500 11,485 22,500 3,725

Estimate d Life 5 5 5 5

Value 500 500 500 500

Annual Depreciation 400 2,237 4,400 645 7,682

Operating Factory 70% 280 2,237 4,400 451.5 2,968.5 193.5 4,713.5 30% 120

2010 Rent Expense 30,000

2011 31,500

2012 33,075

2013 34,729

2014 36,465

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Schedule 10 Starting Expense Pre- Operating Expense: Securities and Exchange Commission Bureau of Internal Revenue Annual registration of Business Permit (mayor’s Permit) Annual Barangay Clearance Permit Annual Sanitary Clearance Annual Community tax Certificate Annual Garbage Fee Payment 2,000.00 2,500.00 250.00 500.00 500.00 100.00 150.00

Annual Signboard Fee Payment Annual Health Certificate fee Payment Annual General Insurance Policy Department of Health Zoning Clearance DTI Permit Total Add: Advertising Total Pre-Operating Expense

100.00 135.00 450.00 1,500.00 160.00 365.00 8,710.00 3,000.00 11,710.00

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Schedule 17 Nerriena’s Food Company Property Plant and Equipment

Property, Plant and Equipment Leasehold Improvement Office Equipment Wall Clock Electric fan Ceiling fan Lights (day light 40 watts) Calculator Office Furniture Office table Office Chairs

Unit 2 1 2 1 2 1 1 set

Price 300 1,500 2,400 340 1,000 2,000 1,000

Total 2,500

5,590

Cabinet Factory Equipment Flat Tray Scooper Knife Basin Chopping Board Trash Can Laddle Weighing Scale Measuring Cup Chairs Sink Toilet Bowl Freezer Steamer Grinder Stove LPG Total

1 3 2 1 2 1 2 4 1 1 2 1 1 1 3 1 1 1

4,195 255 151 800 120 249.99 299.50 399.95 269.75 99.99 300 2,345 500 10,000 5,500 8,500 1,500 580

7,195

31,870.18 47,155.18

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Schedule 18 Nerriena’s Food Company Partner’ Equity Capital Needed: Capital Contribution: Owner 1 Owner 2 Owner 3 (Zamora) (Sales) (Kosca) 45,000 45,000 45,000 135,000

Total:

135,000

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Schedule 19 Accrued Expense 2010 Accrued Payable, end Light and Water Utility Payroll Taxes Total Breakdown Accrued light and water Ending Negative Beginning Light and water operating Payroll Taxes FOH 29,880 2,250 32,130 2011 31,374 2,363 33,737 2012 32,943 2,481 35,424 2013 34,590 2,605 37,195 2014 36,319 2,735 39,054

(2,990) 20,916 8,984

(3,289) 2,990 21,962 9,412

(3,618) 3,289 23,060 9,883

(3,980) 3,618 24,213 10,317

(4,378) 3,980 25,424 10,856

Payment Accrued Payroll Taxes Ending Negative Beginning Payroll Taxes operating Payroll Taxes FOH Payment

29,890 2,250 23,400 8,964 30,114

31,075 2,363 2,250 24,570 9,412 333,869

32,614 2,481 2,363 25,799 9,883 35,564

34,148 2,605 2,481 27,089 10,317 37,282

35,882 2,735 2,605 28,443 10,856 39,169

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Schedule 20 Office Supplies Quantity Monthly Used: Bond Paper Record Book Order Slip Total Annual Used: Time Card Storage Box 1 1 Ream Pc 26.00 275.00 Ream Pc 26 275 312 3,300 2 1 1 Reams Book Ream 220.00 65.00 60.00 Ream Book Ream 440 65 60 3,280 780 720 6,780 Units Cost Unit Total Annual

Ball Pen Pencil Pentel Pen Folder Total Total

5 5 2 10

Pcs Pcs Pc Pc

5.00 5.00 25.00 5.00

Pcs Pcs Pc Pc

25 25 50 50

300 300 600 600 5,412 12,192

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Nerriena’s Food Company Project Cost Capital Outlay Leasehold Improvement Office Equipment Office Furniture Factory Equipment Total Capital Expense Working Capital Operating Pre-Operating Salaries and wages Payroll Taxes Office Supplies

2,500 5,590 7,195 31,870.18 47,155.18 11,710 51,000 3,090 12,192

Water and Electricity Repair and Maintenance Allowance for Contingency Total Working Capital Capital Needed Capital Contribution J. Kosca R. Sales K. Zamora 45,000 45,000 45,000

2,490 565.50 4,713.50 84,921 132,076.18 135,000

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Profitability Ratio Net Income Total Assets Return in Income 2010 781,394 500,077 156% 2011 845,512 758,418 112% 2012 906,369 1,020,763 89% 2013 971,171 1,299,427 75% 2014 1,039,753 1,586,229 66%

Payback Period

Year

Cost of Investment to be Recovered 135,000 (646,394) (1,491,906) (2,398,028) (3,438,028)

Net Operating inflows 781,394 845,512 906,369 971,171 1,039,753

Balance

Payback Yrs.

2010 2011 2012 2013 2014

(646,394) (1,491,906) (2,398,028) (3,438,028) (4,477,781)

0.17 (0.77) (1.65) (2.47) (3.31)

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Return on Sales Year Net Income Net Sales Return on Sales 2010 781,394 1,710,360 46% 2011 845,512 1,821,299 46% 2012 906,369 1,939,315 47% 2013 971,171 2,064,073 47% 2014 1,039,753 2,196,880 47%

Break Even Analysis

Variable Cost Direct Materials Direct Labor Indirect Materials Factory Supplies Office Supplies Utilities Expense Repair and Maintenance Vat Expense Total Production Variable cost/unit Selling Price Variable cost/unit Contribution Margin Contribution Margin Ratio

2010 66,910 72,263 122,291 148,231 1,382 29,880 1,320 16,298 458,575 316,417 1.45 3.00 1.45 1.55 51.67%

2011 71,506 80,866 135,450 169,818 1,325 31,374 1,386 16,988 508,713 384,413 1.32 3.15 1.32 1.83 58.10%

2012 75,528 84,043 138,706 181,069 1,392 32,943 1,455 17,210 532,346 402,011 1.32 3.31 1.32 1.99 60.12%

2013 80,036 87,280 142,696 192,571 1,460 34,590 1,528 17,429 557,590 420,595 1.36 3.47 1.36 2.11 60.81%

2014 84,636 90,572 146,741 205,016 1,535 36,320 1,604 17,648 584,072 440,292 1.33 3.65 1.33 2.32 63.52%

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Fixed Cost Payroll Taxes Repair and Maintenance Light and water Contingency Advertising Expense Total Production Fixed cost/unit

2010 30,600 1,885 29,880 7,682 3,000 73,047 316,417 0.24

2011 32,130 1,979 31,374 8,066 3,150 76,699 384,413 0.21

2012 33,736 2,078 32,943 8,469 3,308 80,535 402,011 0.21

2013 35,423 2,182 34,590 8,892 3,473 84,560 420,595 0.21

2014 37,195 2,291 36,320 9,337 3,647 88,790 440,292 0.21

Fixed cost Over CM/unit BEP in units

76,647 1.45 52,860

80,479 1.32 60,969

84,504 1.32 64,018

88,728 1.36 65,241

93,166 1.33 70,050

Fixed cost Over CM ratio BEP Sales

76,647 51.67% 148,839

80,479 58.10% 138,518

84,504 60.12% 140,559

88,728 60.18% 145,910

93,166 63.52% 146,672

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

I Demographic Profile 1. Gender Male Female Total 2. Age 7-18 19-25 26-30 31-35 36-40 41-50 50 above 3. Civil Status 52 22 60 97 25 15% 54 13% 6% 16% 25% 22% 4% 14% Frequency 153 233 386 Percentage 40% 60% 100%

Single Married Others 4. Monthly Income 5,000-7,500 7,501-10,000 10,001-12,500 12,501-15,.000 15,001 above

107 258 21 103 97 55 60 71

28% 67% 5% 27% 25% 14% 16% 18%

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

D. Office Equipment and Factory Supplies Table 9 Factory Supplies Flat Tray Scooper Knife Basin Chopping Board Trash can Calculator Weighing Scale Measuring Cups Chairs Total Office Quantity 3 2 1 2 1 2 2 1 2 2 Unit(s) Pcs Pcs Set Pcs Pc Pcs Pcs Pc Set pcs Cost 85 75 800 60 249.99 199.75 500 269.75 99.99 150 Unit Pc Pc Set Pc Pc Pc Pc Pc Set pc Total 255 151 800 120 249.99 299.50 1,000 269.75 99.99 300 3,545.23

Equipment and Furniture Office table Office Chair Electric Fan Ceiling Fan Light Cabinet Total

Quantity 1 1 1 2 2 1

Unit(s) Pcs Set Pc Pcs Pcs pc

Cost 2,000 1,000 1,500 1,225 170 4,195

Unit Pc Set Pc Pc Pc Pc

Total 2,000 1,000 1,500 2,450 340 4,195 11,485

Pamantasan ng Lungsod ng Muntinlupa College of Business Administration

Office Supplies Bond Paper Ballpen Pencil Folder Pentel Pen Envelope Trash can Record Book Order Slip Time Record Storage Box Total Others Supplies

Quantity 2 5 5 10 2 10 2 1 1 1 1

Unit(s) Ream Pcs Pcs Pcs Pcs pcs Pcs Box Ream Ream Pc

Cost 220 10 10 3 25 5 80 65 60 26 275

Unit Pc Pc Pc Pc Pc Pc Pc Box Ream Ream Pc

Total 440 50 50 30 50 50 160 65 60 26 275 Php 1,354

Sink Wall Click Toilet Bowl Total Total

1 2 1

Pc Pcs pc

2,345 150 500

Pc Pc Pc

2,345 300 500 3,145 Php22,733.23

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