Quezon Center for Research and Studies

Institute of Management

Feasibility Study
J-Print

Prepared by:
Jessica M. Quirante

Adviser:
Mr. Russel D. Palmaria

Introduction
Human always find ways to express themselves. They engage in different activities to
convey what they feel, show what they are, and give emphasis on what they want especially
when they cannot utter the words for their views.
Nowadays, one of the most popular techniques for self-expression comes in the form of
printed shirts (http://wikipedia.org/wiki/T-shirt). Walking outside, people happen to see couples
and groups of youth wearing similar shirts, students representing an organization, supporters
of candidates for election, and the like. Most business used printed shirts to promote their
products and services. T-shirts also serves as an instrument for the advocacy of religious
groups and public welfare concerned organization. It creates an opportunity for future
entrepreneurs and can be a source of income.
Market analysis
Marketing plays a vital role in the life of a business. Because sales depend largely on
how business will carry out their marketing strategies. Business owners should always bear in
mind the sayingCustomers are the blood of the business. Products must be introduced in a
very effective way.
In establishing a business, it is very important to take into consideration the kind of
market the business will enter. One most considers the needs and demand of the people within
the range of the market. Through its analysis, the preferences, way of living in the area, and
the willingness of the people in buying products can be determined.

There are different businesses in the market that exist according to customer needs.
Mostly players in the market offer primary products sc as foods and clotting in various kinds.
However, there are existing business which competes in offering similar products and prices.
In this study, there are only two competitors existing in the market which provide almost
the same products and services. However, the businesses as the chance to enter into the
market because some areas in pagbilao are not get into by their services.
Products description
The proposed business will offer printing services on t-shirts, fans, towels, and umbrella.
However, it will only accept printing on t-shirt with the materials provided by them.
Although digital printing is a poplar printing technique used by the modern t-shirt printing
business, the business will employ the traditional way of printing, the silk screen printing. Silk
screen printing is a process which involves the construction of a screen and the se of stencil to
apply the ink on the surface while digital printing is a process which makes use of a computer
and printing machine to layout and print the design.
T-shirt printing products are describe as seasonal and customized. Te orders commonly
occur when there are events and celebrations in the market and products are created as
specified by the customers requirements.
Product design
The business will provide a compilation of designs from the internet, from the previously
used designs, and from its artists designs. Customers will pick and choose the design to be

printed on the fabric materials. However, they can settle their own designs which can be
enhanced by the artists.
Product Features
Brand name: J-Print
For the potential customers to easily understand the nature of the business and
recognize the products it offers, the proposed business will use the name J-Print. The J initial
represents the name of the business proponent, J means Jessica and connotes that the
proposed business is a printing service business which provide products just when they order.

Packaging
An eco-friendly paper bag printed with the business name will be used for the packaging of the
printed t-shirts, fans and towels.

Product Benefits
J-Print products are beneficial to the customers because of its functionality and
durability; its products can be brought to different places and can be used for several times.
They last longer through multiple wash cycles because of the se of the silk screen printing
technique.
Pricing Strategy
Generally, t-shirt printing business offers various prices for different kind of products.
Pricing is based on the volume of orders, details of the designs, the turnover period, and the
materials used.
To determine the pricing of the products, this study will use the job order costing. Job
order costing is a system used by business which produced specific orders or batches of
items. The nits costs of products are determine through dividing the total expenditures for the
products over the number of units produced. Since J-Print products are customized, this
costing system is very much appropriate. It will make use of the job order cost sheet a record
to monitor all the production costs charged to specific orders. It presents details such as the
customers information, product description, and the quantity ordered, the start and completion
of the production, and the materials, labor, and overhead applied during the production.
The materials section includes to all items that become part of the product, the labor
section pertain to the wage of the personnel who work directly on the product, and the
overhead section are the costs incurred which do not fall under the material and labor.

In this study, materials include the t-shirts and different kind of paint used in printing,
labor are the wages of the artist/production workers, and printing overhead includes other
printing materials, utilities and depreciation of printing equipment, furniture and tools. The
printing overhead used in the computation of pricing is not the actual cost. A predetermined
overhead rate based on the estimated annals costs is use to apply the cost of overhead
printing job.
To determine the overhead application rate, the proponents assumed that there will be
an estimated annual overhead cost of P13, 000 and an estimated annual direct labor cost of
P20,000. Overhead rate is computed as follows:
Estimated printing overhead costs
Estimated Labor Costs

php 13,000

= 65%

php 20,000

As a result, 65% of labor cost will be charged t each job to find out the applied printing
overhead illustration of job order in each order.

Promotional Strategy
A strong set of promotional strategies are essential to attract customers. The
proponents will use the following promotional strategies:

Advertisement

Advertisement (such a short film or a written notice) is something that is shown or

presented to the public to help sell a product or make an announcement. The business will
distribute printed advertisement to the public s as tarpaulins, pamphlets and flyers.
Social Media
At present, social media are widely used, as part of its promotion; the business will
create accounts on social networking sites where product offerings and available designs will
be posted. The proponents believe that this strategy can reach more number of potential
customers and will help establish a business-customer relationship without directly
communication with them.
Discounts
It is a reduction to the basic price of goods or services. Tue business will give discounts
to its loyal and regular customers and to those who makes bulk orders.
Demand and supply Analysis
One important factor to consider in the business feasibility study is the determination of
the demand and supply for the proposed products or services in the market. Demand and
supply is the idea of how many people want to by the goods and the services and the price of it
depends in how mc of something is being sold. In this study, the proponent considered the
demand and supply to ascertain the number of products to be produced and sold at given time.
Products to be offered by the proposed business are not considered as the primary
products or those belonging to the basic needs. In addition T-shirt printing products are
regarded as seasonal products which are ordered occasionally. Because of these, proponent

led to an assumption that its demand is lesser than the primary products and it will vary from
time to time.
Demographic environment
The study will be conducted in pagbilao, Quezon wherein number of schools and
institutions are located. Pagbilao is also considered as a spot for tourism because of its
beautiful sceneries and beaches. For this reason, the business had the opportunity to attract
greater number of potential customers.
Technical analysis
This analysis deals with the description of the product, the printing process, business
location, raw materials, equipment needed, utilities needed and waste disposal method. The
proponent will apply the most important and best ways on how to improve the printing process
and other business practices.
The Product
J-Print will offer printing services on fabric materials sing the silk-screen printing
method. It will provide a compilation of designs where the customers can pick and choose to.
An eco-friendly paper bag with its business printed will be used for the packaging of its
product.
Printing Process
The proposed business will use silk screen printing method in printing its products.
Details of the process are as follows:

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Step 1 design the print.
Step 2 use a craft knife to cut out all the colored parts of the design.
Keep the surrounding blank paper intact. Make sure the stencil fits appropriately ion the shirt.
Step 3- Put the stencil on top of the material ( t-shirt, fans, towels, umbrellas) and the
screen on top of the stencil.
Place the stencil so the mesh is directly on top ( the two should be touching) and the handles
are facing p. If there is space between the edges of the stencil and the edges of the screen, pt
maskings tape on the underside. If the taping method was used, make sure not to tape the
stencil to the mesh. Otherwise the stencil might move around when squeegee-ing it.
Step 4 spoon out some paint
Make a line at the top of the screen (the part furthest away from you). Try to spoon out as
much paint as it world cover the stencil.
Step 5 use the squeegee to spread the paint over the mesh.

Try to do it with least number of strokes possible. This makes it look as smooth and
professional as can be. Once the bottom is reached, keep going and scoop the excess paint
up the handle to be reused.
Step 6 Carefully lift everything up off the material.
Step 7- Leave the material to dry.
If the printing is done onto clothing, once it is dry, a sheet of greasing tracing paper should be
put over the design before ironing.
Production schedule
There will be no constant schedule of printing for the proposed business. Printings of
products are initiated from orders. The period of production does not easily determine due to
the variation of volume and design. In view of this production, the business will apply the job
order cost system.
Job order system is a manufacturing system used by business that make special
orders, customized products, or standard products produced in batches. This system is merely
appropriate to apply in the production and pricing of t-shirt printing business.
Business Location
One important factor in putting up a business is its location. In choosing the location, the owner
should look for a strategic place where large number of people can reach the business.
The proponent decided to locate the business at sitio tabangan brgy, mapagong
pagbilao, Quezon. The chosen location lies in the rural areas of pagbilao. However it is still

accessible for the potential customers because its nearby barangays are surrounded with
schools and business establishments.
T-Shirt printing materials
Bookstore location in the city proper of Lucena and stalls in divisoria will be the source of
printing materials and t-shirts. To minimize the expenses, the business will create an
improvised silk-screen by assembling organza and frame made from scrap woods.
The business will settle a supplier network tie p system where the supplier will be called
for reservation and delivery jest when the materials are needed. Thus, the business will turn to
just-in-time inventory system to save money and reduce waste while meeting the customer
requirements.
Printing material needed is:

Paint a colored substance that is spread over a surface and dries to leave a thin

decorative or protective coating

Green Film: A thin sheet, as of paper, metal, or impermeable film, with holes ct through

in the shape of letters or designs se for creating the pattern for the design.
Adhesol Solution a chemical used to attach the green film to the screen.
Masking tape used to cover the part of the design which is not included in applying the

colors.
Cotton use with the adhesol solution to attach the green film to the screen.
Brown Paper Bag use for packaging

Equipment, Furniture, tools, and Supplies

T-shirt printing business can start its operation in small capital requirements. For this
reason, the business will only acquire equipment, furniture, and tools which are necessary to
complete the printing activity. For printing proposes, it will purchase drafting table, blower, and
some printing tools. For administration proposes, it will purchase office table and supplies. For
the employees to work comfortably, electric fan and cleaning supplies will also be purchase.
The mentioned equipment and supplies will be acquired in an appliance, furniture,
bookstore and department stores in Lucena City. The owner will canvas for stores which offer
durable products at a reasonable price.
Tools and supplies needed are:

Squeegee an implement, usually a rubber roller used to spread the paint and to

remove excess water or ink.

Organza a sheer, stiff fabric of silk or synthetic material use as a screen for the frame.
Cutter a knife used for paper crafts etc. That has sharp, replaceable blade se to ct the

design in the green film.

Tucker - a hand held machine used to punch the organza on the wooden frame.

Description
Equipment, Furniture and tools
Drafting table
Office table
Round plastic chair
Electric fan
Blower
Tucker
Cutter
Paint brush
Squeegee
hanger
Monoblock Chair

Qty

unit price

Amount

total

1 pc.
1 pc.
5 pcs.
1 pc.
2 pcs.
1 pc.
4 pcs.
1 pack
3 pcs.
2 dozen
5 pcs.

3,500
3,000
90
1,200
450
875
28
65
98
48
170

3,500
3,000
450
1,200
900
875
112
65
294
96
850

11,342

Production and Office Supplies

Pencil
Spray
Organza & Wood
Calculator
Tape Dispenser
Stapler
Carbon paper
Correction Tape
Staple wire
Scissors
Sharpener
Eraser
Log Book
Clear book (long)
Glue
Fluorescent lamp
Bulb

1 pc.
2 pcs.
5 pcs.
1 pc.
1 pc
1 pc
1 pack
2 pcs.
1 box
2 pcs.
2 pcs.
2 pcs.
1 pc.
1 pc
1 pc.
2 pcs.
1 pc.

45
50
95
250
95
105
35
24
8
50
10
12
44
65
25
200
100

45
100
475
250
95
105
35
48
8
100
20
24
44
65
25
400
100

1,939

Cleaning Supplies
Broom
Trash Can
Dust pan
Mop
Rugs
Extension wire

2 pc.
3 pcs.
2 pcs.
1 pc.
5 pcs.
1 pc.

40
60
24
120
35
110

80
180
48
120
175
110

Total

713
13,994

Distribution

The general manager will contact the customer to pick p the orders however, customers with
bulk orders will be given free delivery. The production worker will directly deliver the orders to
the customer by hiring a tricycle.
Utilities
The location of the business is an area where there is sufficient supply of electricity and water
provided by MERALCO & NAWASA, respectively. These public utilities offer services in the
area of Pagbilao.
Waste Disposal Method
Waste management has been a big problem for the environment of certain localities.
Most business do not have proper wastes disposal which become a problem for the local
citizens.
The management will practice and observe the cleanliness of the business area. Waste
products from the operation will be disposed in the biodegradable & non-biodegradable
container.
Recyclable materials collected from the operation and office waste will be sold for extra
income. There is a garbage truck roaming in the town and is scheduled in Brgy. Mapagong
every Thursday.

Technological Environment

At present, majority of business use technology in producing products and rendering

service which gives good impressions to the customers. Since the proposed business will not
be automated, it is not easy compete with others who are already established. As a
consequence, the proponent will take the risk of entering into the market.
Financial Aspect
One of the most sensitive and complicated part of a business feasibility study is the
financial aspect. This part gives hint to the business proponent of whether the project will be
feasible and will earn profit in the long run
This chapter will provide the business capitalization, financial assumption, the
preparations, of financial statement ( income statement, balance sheet, cash flow, and cost
printing, t-shirt and materials) projected for five years, schedules and the break even analysis.
Capitalization
Based on the estimated project cost, the proposed business requires an initial capital of
P40, 000. It will be used for the acquisition of equipment, furniture, tools, and supplies. The
business registration and the start-up operating expenses of the business.

Estimated Project Cost

Licenses and fees

Mayors Permit
Barangay Business Permit
DTI Registration
Community Tax certificate
BIR
Miscellaneous fees
Acquisition of Equipment,
Supplies
Equipment, Furniture & Tools
Production and Office Supplies
Cleaning Supplies
Start-up operating expenses
Total Estimated Project Cost

Php 3,000
100
500
100
500
250
Tools

Php 4,450

and
Php 11,342
1,939
713

13,994
21,556
Php 40,000

Assumptions
The following are the assumptions made by the proponents to establish the projected
financial statements of the business for its five year operation.
1. The business will operate as a sole proprietorship and capital provided by its owner.
2. Based on the estimated project cost, initial investment will be P40,000.
3. The business will turn to Just-in-time Inventory system for the inventory of the printing
4.
5.
6.
7.

material.
Straight line method will be used in the depreciation of printing equipment and tools.
The business will apply the job order costing system in its pricing and production.
All sales are cash sales.
Purchase of equipment, furniture, tools, printing materials and supplies are made on
cash.
J-Print
Projected Balance Sheet
As of January 31
(In Php)

Assets
Cash
Printing tools, Furniture and
Equipment
Less: Accumulated Depreciation
TOTAL ASSETS

2015
198,494

2016
368,592

11,342

11,342

1,528
9,814
208,308

3,057
8,285
376,878

2017
564,61
6
11,342

2018
789,60
4
11,342

2019
1,045,98
0
11,342

4,585
6,757
571,37
3

5,228
5,228
794,83
3

7,624
3,700
1,049,68
0

TOTAL LIABILITIES AND CAPITAL

Liabilities
Income Tax Payable
Capital
Owners Capital
Add: Net Income
Total Capital
TOTAL LIABILITIES AND CAPITAL

29,577

37,037

45,383

55,653

68,150

40,000
138,731
178,731
208,308

178,731
161,110
339,841
376,878

339,841
186,149
525,990
571,373

525,990
213,190
739,180
794,833

739,180
242,350
981,530
1,049,680

J-Print
Projects Income Statement
For the period ended January 31

(In Php)

Revenue (Sch1)
Less: Cost of T-shirts,
Printing and materials
Gross profit
Less: Operating Expense
Salary (Sch9)
Advertising
Licensing and Fees
Miscellaneous (Sch7)
Total operating Expenses
Operating Income
Less: Income Tax (Sch8)
Net Income

2015

2016

2017

2018

2019

405,000
100,590
216,410

445,500
197,824
247,677

490,050
207,515
282,535

539,055
217,687
321,368

592,961
228,363
364,597

36,000
5,000
4,500
2,652
48,102

37,080
5,250
4,495
2,705
49,530

5,513
4,539
2,759
2,759
51,003

5,788
4,585
2,814
2,814
52,525

6,078
4,631
2,871
2,871
54,097

168,308
29,577
138,731

198,147
37,037
161,110

231,532
45,383
186,149

268,843
55,653
213,190

310,500
68,150
242,350

J-Print
Projected Cash Flow
For the period ended January 31

(In Php)

Cash Balance, Feb. 1

Add: Receipts
Revenues
Initial investment
Total Cash Receipts
Less: Disbursements
Equipment, Furniture,
And Tools acquisition
Costs of t-shirts, Printing
and Materials
Operating expenses
Total Disbursement
Cash Balance, Jan. 31

2015

2016

2017

2018

2019

198,494
445,500

368,592
490,050

564,616
539,055

789,604
592,961

643,994

858,642

1,103,671

1,382,565

11,342

187,062

196,295

205,986

216,158

226,835

48,102
246,506
198,494

79,106
275,402
368,592

88,040
294,026
564,616

97,908
314,067
789,604

109,750
336,585
1,045,980

405,000
40,000
445,000

J-Print
Projected Costs of T-Shirt, Printing and Material
For the period ended January 31

(In Php)

Cost of t-shirts and materials (Sch2)

Wages (Sch3)
Printing Overhead
Other printing materials and
Supplies (Sch4)
Utilities (Sch6)
Depreciation (Sch5)
Total
Cost of T-Shirts Printing and
Materials

2015
155,925

2016
163,721

2017
171,907

2018
180,503

2019
189,528

20,000

21,000

22,050

23,153

24,310

5,137

5,349

5,664

5,947

6,244

6,000
1,528
12,665

6,180
1,528
13,102

6,365
1,528
13,557

6,556
1,528
14,031

6,753
1,528
14,526

188,590

197,824

207,515

217,687

228,363

Schedule 1 Sales

Product
Printing only
Printing on fans, towels,
Umbrellas
Print with t-shirt
Sales

Price
Volume
Sales
Php 45.00
2,000
Php 90,000
45
500
22,500
195

1,500

292,500
Php 405,000

In this study, prices on printing on t-shirt, fans, towels, umbrellas, are assumed to be the
same because they apply similar printing materials and labor costs. Price on the print with tshirts has an additional P150 for the cost of t-shirt and the mark-up.
Pricing of products is based on the computation pointed up on Pricing Strategy.
Although the business will apply the job order costing system on the actual practices, fixed
pricing is established for the consistency of the study.

On the demand analysis, the business arrived to an estimated combined nit sales of
4,000: 2,000 are allocated to prints on t-shirts. Sales are assumed to have an annual increase
of 10 %.
Schedule 2 Cost of T-shirt and Materials

Product

Printing Only
Printing on Fans,
Towels, umbrellas
Print with t-shirts
Total

Volume

Paint
Total
Cost

2,000
500

Cost
per
unit
3,160
1.58
395
0.79

1,500
4,000

2,370
5,925

1.58
3.95

T-Shirt
Total
Cost
Cost
per
unit

150,00
150,00

Cost of TTotal
Shirt and
Cost per
materials
unit
3,160
1.58
395
0.79

100
100

152,370
155,925

101.58
103.95

Schedule 3 Labor (2 workers)

Product
Printing only
Printing on fans, towels, Umbrellas
Print with t-shirts
Total

Volume

Cost of Labor

2,000
500
1,500

Php 10,000
2,500
7,500

4,000

10,000

Cost per unit

Php 5.00
5.00
5.00

The labor cost includes the wages of the 2 on-call artist/worker during the printing
processes. Each will be paid P5 for every piece of products they finished.

Schedule 4 Other Printing Materials and Supplies

Product

Paper
Pack

Printing only
Printing on fans,
Towels, Umbrellas
Print with t-shirts
Total

Masking
tape

Adhesol

Green
film

Organza Total

Cost
per unit

2,000
500

18
18

21
21

180
180

160
160

2,379
879

1.19
1.76

1,500

18

21

180

160

1,879

1.25

4,000

54

63

540

480

5,137

4.20

Other printing materials and supplies include hose which do not become part of the
products but are actually needed for the completion of the printing process. The costs of other
printing materials shown above are actual cost incurred during the production. Some of the
printing supplies have the same cost in each product because these are only used once in the
printing process.
Schedule 5 Depreciation of printing equipment, furniture and tools
Cost
Php 3,500
3,000
450
850
1,200
900
875
112
65
294
96
11,342

Drafting Table
Office table
Round chair
Mono block chair
Electric fan
Blower
Tucker
Cutter
Paint brush
Squeegee
Hanger
Total

Life (in years)

10
10
5
5
5
8
5
5
5
5
5

Schedule 6- utilities
Monthly

Annually

Annual Depreciation
Php 350
300
90
170
150
180
175
22
13
59
19
Php 1,528

Power
Water
Total

Php 300
200
Php 500

Php 3,600
2,400
6,000

Schedule 7 Miscellaneous
Production and Office Supplies
Cleaning Supplies
Total

Php 1,939
713
Php 2,652

Schedule 8 Income Tax

Amount of Net Taxable Income
Over

P 10,000
P 30,000
P 70,000
P 140,000
P 250,000
P 500,000

But not
over
P 10,000
P 30,000
P 70,000
P 140,000
P 250,000
P 500,000

Rate

P500 + 10% of the excess over P10, 001

P2, 500+15% of the excess over P30, 001
P8, 500+20% of the excess over P70,000
P22, 500+25% of the excess over P140,000
P50, 000+30% of the excess over P250,000
P125, 000+32% of the excess over P500,000
In 2000 and onward

Computation of income tax is based on the individual income tax table

Provided by the Bureau of Internal Revenue (BIR).
Schedule 9
Salary

Includes the P3, 000 monthly salary of the General Manager. It will have a 3% annual
increase.
Advertising
As stated in the marketing analysis of the study, the proposed business will used printed
advertisement to promote its products. The business allotted P 5,000 for the estimated cost of
advertisement for the first year of operation and its assumed to increase 5% every year.

Licenses and Fees

It compromises all the expenses which the business may incur for registration.
Details are provided in the estimated project cost of the business.
Equipment, Furniture and Tools Acquisition
Breakdown of these assets are indicated in the Technical Aspects of the study. The
business will acquire the equipment, furniture, and tools for its first year of operation, and it is
assumed to have no additional purchases for the following years.

Break-even Analysis
Fixed Costs

Utilities

Php 6,000

Salary (General Manager)

36,000

Depreciation

1,528

Licenses and Fees

4,450

Total

Product

Printing only
Printing on
fans, Towels,
Umbrellas
Print with tshirts

Php 47,978

T-Shirts
and
Materials
3,160
395

Labor

Other
printing
materials
10,000
2,379
2,500
879

152,370

7,500

Misc.(Total

Advertising (total

cost/total
production*no of
production)

cost/total production*no
of production)

1,879

1,326
879

2,500
332

Total
Variable
Cost
19,365
4,731

1,879

995

164,619

Variable Cost per unit

Product

Volume
Produced

Printing only
Printing on
fans, Towels,
Umbrellas
Print with tshirts

2,000
500

1,500

T-Shirts
Labor
and
Materials
1.58
5.00
0.79
5.00

101.58

Product

Selling Price

Printing only
Printing on fans,

Php 45.00
45.00

Other
printing
materials
1.19
1.76

Misc.

Advertising

0.66
0.66

1.25
1.25

Total
Variable
Cost per unit
9.68
9.46

1.25

0.66

1.25

109.75

5.00

unit variable
Cost
Php 9.68
Php 9.64

unit contribution
margin
Php 35.32
35.54

number of
products
2,000
500

Towels, Umbrellas
Print with t-shirts

195.00

Php 109.75

82.25

Product

number of products

% of total

Printing only
Printing on fans, Towels,
Umbrellas
Print with t-shirts
Total

2,000
500.00

50.00%
12.50%

1500.00

37.50%

4,000

100.00%

Product

Contribution
margin
Php 35.32
35.54

Printing only
Printing on fans, Towels,
Umbrellas
Print with t-shirts
85.25
Weighted Average Contribution Margin

BEP (units)

Total Fixed Cost

% of
Total
50.00%
12.50%

Weighted contribution
margin
Php 17.66
4.44

37.50%

31.97
Php 54.07

Php 47,978

Weighted Average Php 54.07

Contribution Margin

Product
Printing only
Printing on fans,

Break-even
Sales
887
887

1500

% of totals
50%
12.50%

887
Combined units sale

unit
sales
444
111

Sales
Php 19,965
4,991

Towels, Umbrellas
Print with t-shirts
Total
Proof:

887

37.50%
100%

Printing
Only

Sales
Printing Only (444 x
P45)
Printing on Fans,
Towels,
Umbrellas (111 x P45)
Print with T-shirts
(333 x P 195)

Less: Variable Cost

Printing Only
(444 x P9.68)
Printing on Fans,
Towels,
Umbrellas (111 x P9.46)
Print with T-shirts
(333 x P 109.75)
Contribution Margin
Less: Fixed Costs
Operating Income

333
887

Printing on Fans,
Towels,
Umbrellas

64,885
Php 89,841

Printing
with
T-Shirts

Total

Php 19,965
Php 4,991

Php 64,885

Php 89,841

36,517

41,862

Php 28,368

Php 47,978
47,978

4,296
1,049

Php 15,669

Php 3,942

Php

The Business offers multiple product lines which have different selling prices, cost
structures, and contribution margins. This, study used the break-even analysis for sales mix or
the relative combination in which products are sold.
Break-even point simply represents the number of nits the firm must sell to generate
exactly zero net income to earn neither profit nor loss. It is the point where total revenues
equal total costs.

The break-even point computation showed that in order to earn profit the business
needs to sell at least 887 combined nits of its products. To evaluate the results from the
demand quantum. It shows that the projected volume by the product line exceeded the breakeven point nits per sales mix. Therefore, the proponents can conclude that the business is
feasible.
Socio-Economic Aspect
Every business is established to achieve certain goals. Some business focuses on
competitiveness and pecuniary gain. They target to earn that, there are existing business
whose aim is to provide the welfare of the people and improve their quality of living.
Social Implication
People in the community play a big role in sustaining the life of business. They serve as
the potential customers who demand for the products of business which lead them on earning
profit. Also, some of them become part of the business as employees. Without them there will
be no sources of demand and no assistance to make the operation world. This, life of the
business may end.
The proposed business will work towards the social benefit through practicing
environmental concern and social improvement. It will se an eco-friendly paper bag for the
packaging and will observe waste management system. Through this, both the environment
and the health of the people the community will be protected.
In addition, the business aims to lessen employment problem in the community by
giving jobs to those applicant who may not have finished their studies but have the willingness,

experience, and the guts of an artist. Educational attainment will not be a hindrance to show
their talents because everyone will be given the opportunity to be employed and be equally
treated as an individual.
Economic Implication
Economy and society are interconnected for economy comprises people who work for
major production, consumption, and distribution of products and services. Benefits acquired by
people in the community through various activities of business also benefit the economy.
As the business promotes employment, it helps lessen the unemployment rate of the
community and of the country. By paying proper amount of taxes, the business will help the
government in providing budget for subsidies, infrastructures, public works, health, education,
and the like. Customers will be assured of the quality of its products and services, and the
fairness of its price offerings because it will comply with the legal requirements of different
government bodies. Because it will establish a supplier network tie p system, the proposed
business can help its supplier survive in the business world and provide assurance in earning
profit.