Brgy.

Paldit Pangasinan

CHAPTER I
PROJECT BACKGROUND AND HISTORY
Project Proponents
The proponents of the business are Melody Ocampo Silvertino and ______. They
thought of a product that is well known in the market which is Longganisa. The business
is named Mels Special Longganica because Longganisa is a main dish for Filipinos, and
thus, Longganisa is similar to a chorizo and also closely associated with the Portuguese
linguia. Its defining characteristics are interpreted differently from region to region.
Longganisa refers to sausages flavoured with indigenous spices, with each region
having its own specialty. Among others, Lucban is known for its garlic-laden longanizas.
Guagua for its salty, almost sour, variety. Longganisang hamonado (from the Spanish:
longaniza jamonada), by contrast, is known for its distinctively sweet taste.
Unlike Spanish chorizo, Filipino longganisa can also be made of chicken, beef, or
even tuna. Commercial varieties are made into links, but homemade sausages may be
simple patties
Propose name of the Business
The proposed name of the business is Mels Special Longganisa which comes
from the proponents name. Mels Special Longganisa had been chosen in order to
procure the best business with our specialization in servicing the people and giving them
the best food product available in the country.

Type of Business Organization

Partnerships
The proposed business will be organized as a general partnership. This partnership
will be formed according to the articles of the Civil Code of the Philippines that defines
partnership as an organization where two or more persons bind themselves to contribute
money, property or industry to a common fund with the intention of dividing the profits
among themselves.
The partnership will operate based on its partnership agreement in its Article of
Partnership specifies the functions and responsibilities of each members.
This type of business ownership is considered because of the following advantages:

it could easily be formed

there are more persons to conduct the business and to handle its problems

and the combined ability and resources of partners are source of strength.

The proposed business will adopt the line type of internal organization. Under this type of
organization, there is a direct flow of authority from one top position to immediately
subordinate levels. This authority flows to subordinate positions directly below and as it
goes down it is subdivided. The line type of organization has clear and distinct channels
of authority and responsibility

Location of the Business

The business is located in Barangay Paldit Pangasinan where one of the proprietor
was residing. The business would be located in Barangay Paldit Pangasinan where many
people are passerby and
Brief History of the Business
The Vigan longaganisa is a small and plump native sausage, good for about two or
three bites.
It is garlicky and has a yellowish color. Although it is eaten anytime, even as a
bread filling, it is
traditional favored as breakfast fare together with fried eggs and steamed or fried
rice. It is best dipped in Ilocos vinegar with plenty of chili, garlic and onions.
Filipinos cook them in a pan with water. The longganisa cooks in its own fat after
the water evaporates and is then cooked further until it slightly caramelizes. A tip to avoid
crumbling is to place it in the freezer for a while before frying it.
Vigan longganisa is said to be an influence of the Mexican salami. The tradition
of making this native has existed since the period of the Spanish galleon trade. It is
distinct from other Philippine sausages because of its use of the local sugar cane vinegar
and Vigan-grown garlic, which are major products of the city as well.
The Biguenos are so fiercely proud of their longganisa that they have made it as
the product they would like to be most known for. They had it recognized as the citys
One Town, One Project (OTOP) selection under this national government program.

Theyve endeavored throughout the years to be the top longganisa producer in the
Philippines.
Longganisa (sometimes spelled longanisa, longaniza, langgonisa, langgoniza) are
Filipino chorizos or sausages. These cured sausages are known in many Philippine
regions. The famous types of longganisa originate from the towns of Vigan , Lucban, and
Guagua. Pork is the most preferred meat used in making this sausage. Other alternatives
are chicken, beef, and tuna.

CHAPTER II
TECHNICAL STUDY
PRODUCTION DESCRIPTION
Mels Special Longganisa is determined to become a daily necessity for local
Longganisa in an Eggshell dessert addicts, a place to dream of as you try to escape the
daily stresses of life and just a comfortable place to meet your friends or to read a book,
all in one. With the growing demand for high-quality gourmet Longganisa in an Eggshell
dessert and great service, Mels Special Longganisa will capitalize on its proximity to the
Barangay Paldit Pangasinan to build a core group of repeat customers. Mels Special
Longganisa will offer its customers the best prepared Longganisa in an egg shell in the
area that will be complimented with other pastries, as well as free books that its patrons
can read to enjoy their visit.
PRODUCTION SCHEDULE
In starting the operation of the business, the owners should complete the
necessary documents and requirements needed for the legalization; this stage of business
is organized in a formal manner, which requires registration in various regulating
government agencies.
Before a partnership can operate legally, it must first to comply with certain level
registration that are summarized as follows:
Place of Registration
1. Security and Exchange Commission (SEC)
2. Department of Trade and Industry (DTI)
3. City of Municipal Hall Permit (Mayors Permit)
4. Bureau of Internal Revenue
5. Social Security System
6. Other Agencies as may be required

In building business there are certain requirements to make specific business

legal. If the following cannot be obtained the operation will not function well.
BIR 1902
DTI application
Business Permit For employees: SSS,PhilHealth,Pag- ibig
Barangay Clearance
Declaration of real property tax
Fire Inspection CertificateSEC
Sanitary plumbing Permit Building Permit
Manufacturing process
The production is very simple. Its main concern is to ensure
the quality and taste of its product.
Figure 1.4 Shows Manufacturing Process of Longganisa in an Egg Shell
Combine all ingredients,

Crack egg shell in two not even and

pour leche plan in the biggest part.

Top with the egg shell remaining

Freeze for 30 minutes and

serve

Recipe of Longganisa in an egg shell

6 large eggs

3 cups whole milk

1/2 vanilla bean, seeds scraped

1/2 cup sugar

1 envelope unflavored gelatin (about 2 1/4 teaspoons)

1/2 teaspoon salt

Directions
Using a paring knife, score eggshells two-thirds of the way up, and carefully
crack. Separate egg whites and yolks. Transfer 5 egg yolks to a bowl; reserve egg whites
and remaining yolk for another use. Bring a small pan of water to a boil. Add eggshells,
and boil 3 minutes. Using a slotted spoon, remove shells, and drain. Scrape out
membrane, and discard. Set eggshells aside in an egg carton.
Put milk, vanilla bean and seeds, and sugar into a medium saucepan; sprinkle with
gelatin. Let stand until softened, about 3 minutes. Cook over low heat, stirring until sugar
and gelatin are dissolved, about 2 minutes.
Whisk salt with egg yolks. Slowly whisk in hot milk mixture until combined, and
then pour back into saucepan. Cook over low heat, stirring occasionally, until custard is

thick enough to coat the back of a spoon, about 3 minutes. Remove vanilla bean. Pour
custard through a sieve into a pitcher; discard solids.
Pour 2 tablespoons custard into each eggshell, and divide remaining custard
among six 6-ounce ramekins (alternatively, divide all custard among eight 6-ounce
ramekins). Refrigerate until set, about 4 hours.
BUILDING & FACILITIES
EQUIPMENT

QTY.

Computer w/printer

25,000

25,000

Telephone

1,500

3,000

Wall clock

200

400

Fax Machine

5,000

5,000

Television

5,000

20,000

CD player

5,000

5,000

CD rack

400

400

Medicine Cabinet

550

550

Component

19,550

19,550

Emergency light

1,450

5,800

Generator

12,675

12,675

1000

2,000

Office Chairs

UNIT COST

TOTAL COST

Air Conditioner

17,000

68,000

Exhaust fan

1,800

3,600

Fire extinguisher

3,600

14,400

Oven chamber

100,100

100,00

Walking chiller

98,700

98,700

Griller

50,000

50,000

CAKE CABINET

60,000.00

WATER SOFTENER

8,000.00

Gas range (heavy Duty)

15,770

120,000.00
8,000.00
15,770

Water dispenser

1,000

1,000

Stainless knives

1set

200

200

Spoodle

20

80

Ladle

20

80

Measuring cups

1set

30

90

Mortar and pestle

40

80

Dessert plates

250

200

50,000

Glasses

250

50

12,500

plates

250

60

15,000

tray

75

200

15,000

Tissue holder

40

30

1,200

Pitcher

250

750

Longganisa in an Eggshell dessert Mugs

100

90

9,000

Kettle

300

600

Juice dispenser

500

3,500

cups

250

25

6,250

Knife sharpener

250.00

500.00

Wooden rice spoon

30.00

60.00

Set of measuring spoon

34.75

34.75

Measuring cup

40.00

40.00

Bottle opener

85.00

85.00

Food tongs

70.00

210.00

WASTE DISPOSAL
In Barangay Paldit Pangasinan especially in the place where the shop is located,
the proponents will pay the disposal team which comes everyday to pick up the garbage.
Every other day of throwing the garbage will make the environment of the Mels Special

Longganisa. It will provide customer satisfaction on seeing the environment of the Mels
Special Longganisa business in neat.
SWOT
Strengths:
1.

Demand: The demand for Product and quality products at competitive prices is
enormous in Barangay Paldit Pangasinan.

2.

Customer base: The customer base which is the main element whilst determining
the target market in Barangay Paldit Pangasinan.

3.

Location: The location factor as argued by Laurence Mathew (2005) is a critical

element for strategic positioning of an organization in the target market. The fact that
the Barangay Paldit Pangasinan importance and a shop located there can attract
customers from both the national and international market makes the location factor
as a key strength for setting-up a Mels Special Longganisa Longganisa in the
Barangay Paldit Pangasinan.

Weaknesses:
1.

Volatile customer base: The major weakness is the volatile nature of the
customer base in the Barangay Paldit Pangasinan. The fact that even though the
customer potential in the Barangay Paldit Pangasinan is vast, but ever changing due
to the nature of the business in the Barangay Paldit Pangasinan makes the customer
potential as a critical weakness as much as it is argued as a strength. Since this is an

apparent factor for any shop in Barangay Paldit Pangasinan, the weakness is
oblivious in nature.
2.

Seasonal business: Another important factor that needs to be considered is that

Barangay Paldit Pangasinan caters high level of customers during the periods of
holiday making whilst supports only the business travellers at other times. This
makes it clear that the business for the Mels Special Longganisa Longganisa is
seasonal in nature.

Opportunities:
1.

Differentiation by Pricing: the demand for quality products at competitive

pricing is an increasing demand at the Barangay Paldit Pangasinan especially from
the customers visiting from the far east of the world as argued by Laurence Mathew
(2005). This demand can1 be harnessed by the Mels Special Longganisa Longganisa
through providing value-added services and quality products at competitive prices.
The financial analysis in the next section will provide a deeper insight on the pricing
of the products.

2.

Diverse Target market: The diversity in the market which is merely due to the
diversity in the passengers to the Barangay Paldit Pangasinan provides an effective
method of attracting a niche market or more than one segment of the market with
customised products whilst providing a base line of product range to meet the overall
demand of the customers.

3.

Promotion through embracing culture: The fact that the Barangay Paldit
Pangasinan caters visitors from difference culture makes it clear that the Mels
Special Longganisa Longganisa can attract customers through embracing its

promotions reflecting upon specific culture. This even though might appear niche
marketing, is actually a successful method of reaching the wider market where the
visitors would appreciate the innovation in the promotion as argued by Laurence
Mathew (2005).
Threats:
1.

Terrorism: The major threat is the element of disaster that can be caused by
terrorist attacks. The fact that Barangay Paldit Pangasinan is a pivotal location for
terrorist attack is the major threat faced by any shop in Barangay Paldit Pangasinan.

2.

New entrants and costs: The threat of new entrants in the market is a critical
element. This is also an increasingly concerning factor with the rapid deployment of
the construction project for Barangay Paldit Pangasinan which not only increases the
opportunities from development but also the threat of new entrants and stiff
competition in the target market.
From the analysis above it is clear that even though there are potential threats and

certain weaknesses in starting a Mels Special Longganisa Longganisa at the Pangasinan,

the strengths and opportunities are out performing the weaknesses and threats thus
justifying the investment for a new Mels Special Longganisa Longganisa in Pangasinan.

DEMAND AND SUPPLY

DEMAND

Based on the data gathered, the past demand shows an increase from 68,850 in 2010
to 76,260.00 and has annual average increase of 2.58%.
Year

X2

EXY

2010

68,880.00

-2

-137,760.00

2011

69,700.00

-1

-69,700.00

2012

71,340.00

2013

73,800.00

73,800.00

2014

76,260.00

152,520.00

EY=

359,980.00

SOLUTION:
Yc = a+ bx
Where:
A

= y/n
= 359,980/5 = 71,996

= xy/x2

10

EXY= 18,860.00

= 18,860 / 10 = 1,886
Yc

= 71,996 + 1,886x

Project demand
Year

EXY

2010

77,654

2011

79,540

2012

81,426

2013

83,312

2014

85,198

The proponents use statistical straight line method to project the demand for five
years. The projection shows that the demand of Mels Special Longganisa in an Eggshell
has annual increase of 2.35% and it increases from 77,654 in year 2005 to 85,198 in year
2009.

C. Supply

The table is presented to determine the supply of Mels Special Longganisa

Product in Barangay Paldit Pangasinan. The supply shows that the past supply of Mels
Special Longganisa increased from 52,137 in 2001 to 61,664 in 2005, with an average
annual increase of 4.31%.
Past supply of Mels Special Longganisa
Year

Supply

Supply

2010

37,741

52,137

2011

39,654

55,516

2012

40,054

56,076

2013

42,111

58,955

2014

44,046

61,664

Projected supply of Mels Special Longganisa

Year

X2

EXY

2010

52,137

-2

-104,274

2011

55,516

-2

-55,516

2012

56,076

-2

2013

58,955

-2

58,955

2014

61,664

-2

125,528

EY=284,348

10

Solution :
Yc = a + bx
Where:
A

= y/n
= 284,348 / 5 = 56.870

= xy / x2
=

Yc

22,493 / 10 = 2,249

= 56,870 + 2,249x

Year

Yc

2010

63,617

2011

65,866

2012

68,115

2013

70,364

2014

72,613

EXY=22,493

The proponents used statistical straight line method in projecting the supply for
the next five years. The period supply for Mels Special Longganisa in Barangay Paldit
Pangasinan.
This shows an increase from 63,637 in 2005 to 72,613 in 2009 and having an
average annual increase of 3.36%,
Demand and supply analysis, demand/supply gap
As a result f an average annual increase of 2.58% in past demand and an average
of 4.31% increase in supply for sweets shop, still it is very insufficient to satisfy the
demand of Mels Special Longganisa in Barangay Paldit Pangasinan.
. The demand and supply gap analysis shows that the supply cannot meet the
increasing demand of Mels Special Longganisa in Barangay Paldit Pangasinan, the
percentage of unsatisfied was presented in the table below.
Year

demand

supply

demand

unsatisfied

and supply gap

2010

68,880

52,137

16,734 24.31%

2011

69,700

55,516

14,184 20.35%

2012

71,340

56,076

15,264 21.40%

2013

73,800

58,955

14,845 20.12%

2014

76,260

61,664

14,596 19.14%

demand

Demand and supply analysis

The demand and supply gap analysis from the past gap analysis shows the
unsatisfied consumer of Mels Special Longganisa in Barangay Paldit Pangasinan, since
2010 having 54.31% to 19.14%. but by entering into the business to contribute the
proponents share the unsatisfied consumer and will tend to drop form 18.08% in 2010 to
14.77% in 2012.

Projected

Projected demand

unsatisfied

Year

demand

supply and supply gap

demand

2010

77,654 63,617

14,038

18.08%

2011

79,540 65,866

13,674

17.19%

2012

81,426 68,115

13,311

16.36%

2013

83,812 70,364

12,448

14.85%

2014

85,198 72,613

12,585

14.77%

CHAPTER III
THE MARKET STUDY
Demand of product
Based on the research, Longganisa has evolved into one of the
w o r l d s m o s t p o p u l a r d e s s e r t s , t h a t s w h y t h e d e m a n d f o r t h i s i s v e r y
promising.

Price of the product

Longganisa has chosen for the study because It has proven its
worth in terms of taste. The product will surely be liked by the
consumers.
The price is considered to be cheaper that other products such
as tocino, hotdogs, and ham. It would only cost a customer P35.00
for a Longganisa with 6 division.
Since Pangasinan o is as one of the known place in, the
location is considered as advantage. The area is one of the most
desirable locations.

The marketing program for the product

Longganisa is situated in the area not high traffic count
because it is located at Barangay Paldit Pangasinan, which has a
great advantage in achieving the kind of atmosphere the business
would like to have.
Based on the market analysis, the product has an edge over its
competitors. Because it capitalize on its unique concept and its
flavors gives reference to the children imagination by which art,
together with other children parts, is created.
Organizational Chart

PROPONENTS

Staf

OVERALL OBJECTIVES

To l e n d i t s c o n t i n u i t y a n d v i t a l i t y i n p r o d u c i n g d e l i c i o u s
and nutritious Longganisa compare to any shops existing
t o d a y.

SPECIFIC OBJECTIVES

To

Provide

customers

with

unique

taste

of

Longganisa

To g r o w a t a p r o f i t a b l e r a t e t o c r e a t e e m p l o y m e n t

To m a i n t a i n h e a l t h y i n g r e d i e n t s f o r p e r s o n a l w e l l being

To e s t a b l i s h n e w s t a l l e v e r y 2 y e a r s

CHAPTER IV
MANAGEMENT OF THE STUDY
Logo and Description

This is the chosen logo because it shows the product itself, the
Longganisa.

It is considered to be a mouthwatering photo that

consumers would surely like to taste and will be very affordable for
e v e r yo n e .
Longganisa Recipe
Yield 12 to 15 pieces Prep Time 15 to 20 minutes
Cooking Time 15 to 20 minutes, including boiling and frying
3 tablespoons brown sugar
1/2 tablespoon rock salt

1 tablespoon minced garlic

1 teaspoon liquid seasoning
1 teaspoon freshly ground black pepper
3 tablespoons local white vinegar
1/2 kilo double ground pork
fresh pork casing (washed very well in water and vinegar; or use synthetic casing,
available in stores where ingredients for meat processing are sold)
3/4 to 1 cup water
1 In a bowl, mix brown sugar, rock salt, minced garlic, liquid seasoning, cracked
black pepper, and vinegar until well incorporated.
2 Add mixture to the ground pork and blend well so the seasoning is well
distributed. Set aside.
3 Knot one end of the casing. Using a funnel, slowly stuff the pork mixture into
the casing until the mixture reaches the knotted end; tie the other end to enclose.
4 Using kitchen twine, tie the filled casing at intervals to make 2-inch sausages.
Refrigerate until ready to cook.
5 To cook: In a pan, boil sausages in 3/4 to 1 cup of water until water evaporates.
Fry in its own oil or add cooking oil until golden brown.

Job titles

Proprietress Responsible in the over all operation of

the

business

from

Marketing

to

Book

keeping

to

operation.
Server Responsible for sales remittance.
D o a s s i g n e d t a s k s a n d a s s i g n m e n t g i v e n b y t h e m a n a g e r.
Do the end line jobs in the operations.
Plant Lay-out
30sqm

Management

I.1.

OTHER MARKET INFLUENCES

Desserts like Longganisa are extra little something at the end

o f a m e a l t h a t j u s t s c r e a m s l u x u r y a n d d e c a d e n c e . I t s a l i t t l e b i t o f
s e l f i n d u l g e n c e t h a t m a k e u s f e e l g o o d . U n f o r t u n a t e l y, m o s t f o o d
also rely heavily on sugar or other ingredients that we know arent
good for us. That good feeling quickly that it turns into guilt
Longganisa is a sweet concoction made with meat and
f l a v o r i n g s . t i m e i f w e c o u l d m a k e Wel l , t h e t h o u g h t o f m a k i n g e a c h
tiny Longganisa just seemed too much work. Longganisa would be
e a s i e r. S a m e t a s t e , s a m e t e x t u r e b u t w i t h a m u c h c h e a p e r p r i c e .
The essence of e- commerce in our research is rapidly
g r o w i n g b u s i n e s s t h a t m o s t p e o p l e a r e n o w e a g e r t o r u n w i t h . As t h e
Internet has covered almost all the world including every nook and
c o r n e r, p e o p l e n o w c a n c o n n e c t w i t h t h e o p p o s i t e p o l e w i t h i n a f e w
second at minimum price. So, the marketing through internet has
become easy and any product of any place is available everywhere.
It means your business can spread worldwide in short span.
More and more businesses owners are going for online
business as it can bring more potential clients to them. For any kind
o f p r o d u c t , w h e t h e r i t i s m e d i c i n a l , h o m e a p p l i a n c e o r c l o t h i n g , yo u
can view your required the items from home with the help of

I n t e r n e t m a r k e t i n g w e b s i t e s a n d p l a c e o r d e r f o r t h e i t e m s yo u w a n t .
A n d o n t i m e , y o u w i l l g e t t h e p r o d u c t s a t yo u r t h r e s h o l d .
M A R K E T I N G S T R ATE G Y
As the customers today are smarter than before, they like to
have different kind of things from different part of the world.
Internet marketing has made it easy and sitting at home, customers
can search for the products they want to buy and can order it. Before
g o f o r b u yi n g i t , c u s t o m e r s c a n v i e w t h e p r o d u c t . I n c l u d i n g a l l t h e
facilities and convenience that both the customers and the business
owners may get from the e-commerce marketing, there is much
importance of online marketing.
Q U A L I T Y AS S U R A N C E
These

quality

standards

will

be

based

on

customer

expectations with regard to:

Performance

Product life

Appearance

The

Quality

As s u r a n c e

Program

will

integrate

all

functions of the company is a coordinated, responsive,

a n d e f f i c i e n t e f f o r t t o a c h i e v e t h i s q u a l i t y g o a l b y:

Maintaining high standards in purchasing raw materials

and components.

Continuing

to

improve

our

manufacturing

facilities

equipment and methods.

M a i n t a i n i n g a q u a l i t y a s s u r a n c e o r g a n i z a t i o n a n d s ys t e m
which will assure quality products at optimum costs.

T h e Q u a l i t y As s u r a n c e o r g a n i z a t i o n s h a l l h a v e t h e p r i m a r y
responsibility

for

measuring

quality

and

providing

quality

m o t i v a t i o n ; h o w e v e r, q u a l i t y c o n s c i o u s n e s s i s t o b e a n i n t e g r a l p a r t
of

the

activities

Consequently

all

of

each

members

department
of

within

management

are

the
to

c o m p a n y.
continually

stimulate and encourage commitment on the part of all employees to

f u l f i l l t h e c o m p a n y' s p o l i c y. T h i s c o m m i t m e n t w i l l b e d i r e c t e d
toward the following priorities:

Quality products and services

On-time delivery

Cost

Projected financial statement

Table 1.6 Shows the Projected Balance Sheet of Mels Special Longganisa
2012

2013

2014

2015

Assets

Current Assets
Cash
Prepaid rent

654,160.00

1,422,640.00

2,259,616.00

3,172,472.00

30,000.00

30,000.00

30,000.00

30,000.00

Merchandise
inventory

8,410.00

9,251.00

10,176.10

11,193.71

1,461,891.00

2,299,792.10

3,213,665.71

11,520.00

11,520.00

11,520.00

11,520.00

2,200.00

2,200.00

2,200.00

2,200.00

9,320.00

9,320.00

9,320.00

9,320.00

Php715,610.00

Php1,484,931.00

Php2,322,832.10

Php3,236,705.71

715,610.00

1,484,931.00

2,322,832.10

3,236,705.71

Total Current
Assets

692,570.00

Fixed Assets
Machineries and
equipment
Less: Accu.
Depreciation
Total Fixed
Asset

Total Assets

Liabilities and

owner equity

Projected Balance Sheet

Table 1.6 Shows the Projected Balance Sheet of Mels Special Longganisa
2012

2013

2014

2015

Assets

Current Assets
Cash
Prepaid rent
Merchandise
inventory

654,160.00

1,422,640.00

2,259,616.00

3,172,472.00

30,000.00

30,000.00

30,000.00

30,000.00

9,251.00

10,176.10

11,193.71

1,461,891.00

2,299,792.10

3,213,665.71

11,520.00

11,520.00

11,520.00

11,520.00

Less: Accu.
Depreciation

2,200.00

2,200.00

2,200.00

2,200.00

Total Fixed
Asset

9,320.00

9,320.00

9,320.00

9,320.00

Total Assets

Php715,610.00

Php1,484,931.00

Php2,322,832.10

Php3,236,705.71

715,610.00

1,484,931.00

2,322,832.10

3,236,705.71

Total Current
Assets

8,410.00

692,570.00

Fixed Assets
Machineries and
equipment

Liabilities and
owner equity

E . ) F i n a n c i a l An a l y s i s

Profitability
Net Profit Margin = Net income after tax
Sales

Tab l e 1 . 7 S h o w s t h e N e t P r o f i t M a r g i n o f Mels Special Longganisa

Yea r 1

Yea r 2

Yea r 3

Yea r 4

Yea r 5

P287, 040

P331, 520

P373, 024

P418, 144

P478, 542

672,000

739,200

813,120

894,432

983,875

.43

.45

.46

.47

Operating Profit Margin = Profit before taxes

Sales

.49

Tab l e 1 . 8 S h o w s t h e O p e r a t i n g P r o f i t M a r g i n o f Mels Special Longganisa

Year 1
P358, 800
672,000
.53

Year 2

Year 3

Year 4

Year 5

P414, 400

P466, 280

P522, 680

P598, 178

813,120

894,432

983,875

.57

.58

739,200
.56

.60

Gross Profit Margin = Gross Profit

Sales

Tab l e 1 . 9 S h o w s t h e G r o s s P r o f i t M a r g i n o f Mels Special Longganisa

Yea r 1

Yea r 2

Yea r 3

Yea r 4

Yea r 5

P268,320

P295,152

P324,667.2

P357,133.92

P392,847

672,000

739,200

813,120

894,432

983,875

.40

.40

.40

.40

23

.40

Sources of financing the project

From Savings accounts
From parents

P30, 000.00
35, 000.00
P65, 000.00

Projected Cash Flow

Table 1.5 Shows the Cash Flow of Mels Special Longganisa

Cash Receipts

2012

2013

2014

2015

2016

P672,000

P739,200

P813,120

P894,432

P983,875

420, 000

462, 000

508, 200

559, 020

614, 922

67, 200

67, 200

73, 920

84, 000

84, 000

120, 000

120, 000

120, 000

120, 000

120, 000

5,000

5, 000

6, 000

7, 000

7, 000

12, 000

14, 400

15, 600

16, 800

18, 000

5, 000

5, 000

6, 000

6, 500

7, 000

71, 760

82, 880

93, 256

104, 536

119,636

712, 960

768,480

836, 976

912, 856

985, 558

from operation
Cash
Disbursements
Purchases
Salaries
Rent
Bonus
Misc.
Taxes and
licenses
Income tax
Net Cash

Cash Bal. beg.

58, 800

654, 160

1, 422, 640

2, 259, 616

3, 172, 472

Cash Bal. end.

654, 160

1, 422, 640

2, 259, 616

3, 172, 472

4, 158, 030

Current operating expenses

PERMITS AND BUSINESS REGISTRATION
Barangay clearance

P 70.0

Business permit (barangay)

250.00

Business tax (local tax)

300.0

Permit fees-Mayors permit

300.00

PENRO

500.00

Fire safety

156.00

Sticker/Plate

150.00

Health fee

550.00

Sanitary inspection fee

500.00

BIR

600.00

DTI

500.00

Total

P3, 976.0

SOCIO ECONOMIC STUDY

A) Employment
M e l s S p e c i a l L o n g g a n i s a C o n t r i b u t i o n t o s o c i a l a n d
economic development is primarily for the employment of the
people specifically to the resident of Barangay Paldit
Pangasinan.
B.) Income
Its ability to generate consistent profits will ultimately
determine its worth in the market place.
C . ) Tax e s
Wit h t h e t a x e s , M e l s S p e c i a l L o n g g a n i s a w i l l p a y t o t h e
Municipal Hall and BIR, it will be a part on building a
progressive nation.
D.)Supply of Commodities
There is a large market for longganisa. Supply is likely
promising.
E.) Demands of Materials
Demands for materials are considered adequate