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CITY COLLEGE OF CALAMBA


Dalubhasaan ng Lungsod ng Calamba
Department of Business Education

ESTABLISHMENT OF DANCE AND FITNESS


STUDIO IN CALAMBA CITY

Marcelo, Isabel F.

Ochinang, Alexander Jr. Q.

Rigonan. Joseph Salvador G.

Umandap, Trixia Mae O.

A Project Feasibility Study Presented to the

Department of Business Education

City College of Calamba

In Partial Fulfillment

of the Requirements for the Degree of

Bachelor of Science in Accountancy

December 2016
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Chapter 1

INTRODUCTION

Background of the study

Dancing is an art. It consists of steps and gestures that are usually

accompanied by music. Some considers it as a form of expression that

can tell a story and can stir up emotions. Every movement means

something and expresses something. It can also be used as a form of

exercise that can help our body be fit and healthy while enjoying and

feeling good. Whatever purpose we use it for now-dancing has been

around for ages. It has been an important part of rituals, ceremonies

and entertainments and even before the birth of the earliest human

civilization.

Like any other forms of art, dancing requires practice in order to

achieve mastery. This is usually done inside a dance studio. A dance

studio is a room wherein dancers rehearse. It normally has a Marley

or any other vinyl floor which is the preferred floor covering for ballet,

modern/jazz and tap dances. Another common feature of a dance

studio includes a barrel which can be wall mounted or standalone. A

good sound system is also very important in a dance studio as music is

an essential part of dance. Other common features are wall mirrors

which are used by the dancers to see their movements. Big wall clocks
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are also necessary to keep track of time ( www.opusbellingham.com

2016, August 29).

The researchers felt the need for a dance studio since they are

dancers themselves. They want to provide the proper and safe place

for dancers to practice their craft. They also want to share their

knowledge and love for dancing.

Statement of the problem

1. Who would be the target market of the proposed business?


2. What are the projected demand and supply?
3. What are the services to be offered by the proposed business?
4. Who are the competitors in the market?
5. Where would the proposed business be located?
6. What is the cost of providing the service and how much will be

the service fee?


7. What would be the form of business organization and its

organizational structure?
8. How many workers are needed by this project?
9. What kind of experiences and trainings are needed for job

qualification?
10. How much should be the initial cost of investment?
11. What are the sources of capital?
12. What financial ratio should be used to determine the

feasibility of the project?


13. Who will benefit in this kind of business?

Significance of the study

Customers. This rental service will provide a suitable venue to

rehearse their craft and hone their talents and skills in dancing.
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Additionally, the clients will have an easy access and wont have a

hard time finding a place to rehearse.

Future researchers. This study will serve as a guide to future

researchers in producing high quality project by providing

sufficient and relevant data.

Government. This study will be beneficial to the government

through the taxes to be paid to the Bureau of Internal Revenues

(BIR).

The researchers. The proposed project will give knowledge to the

researchers, to be well-equipped and ready on how to put up a

business.

City College of Calamba. The proposed study can help furnish

references of future researchers by seeking through its library.

Objectives of the study

1. To identify the target market of the project


2. To find out the projected demand and supply of the proposed

project
3. To identify the services that the business can offer
4. To know the competitiveness of the proposed project
5. To determine the location of this project
6. To determine the cost of providing the service and the service

fee
7. To ascertain the form of business organization and its

organizational structure
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8. To determine the number of workers needed by this project


9. To define the experiences and trainings needed for the job
10. To know how much is the initial cost of investment
11. To determine the sources of the initial investment
12. To find out the financial ratio to determine the feasibility

of the project
13. To know the beneficiaries of this kind of business

Scope and Limitations

The study is limited only to the premises of Calamba City. Aside

from rental service, the proposed project will provide dance lessons

specifically folk dance and jazz/modern dance. The researchers are

very passionate to start a dance and fitness studio since they have a

background in dancing. Moreover, dance instructors will be hired to

train aspiring dancers at any age. The studio is located at the center

of town to be accessible to the public.

Research methodology

Research design. This description of the research design will be

used as to what variables would affect the study. The following topics

were discussed: research locale; population of the study; sources of

data; research instrument; data gathering procedure; and analytical

tools.

Research locale. The study will be conducted within the premises of

Calamba City specifically Barangay Poblacion. It will cover the

general market as its perspective targets.


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Population and sampling method. The population of the study was

the residents of Barangay Poblacion aging 10-59. And according to

Mrs. Amor Layao, the Department Head of Commission on Population,

60% of the total population of the target market covers the said age

bracket. To help the researchers identify the sample size, Slovins

formula will be used.

Slovins formula:

N
n= 2
(1+ N e )

Where:

n = number of samples

N = total population

e = error tolerance

Sources of data. Primary data were collected through survey and

questionnaires given to the population of the study. Secondary data

were gathered from internet, library, and other pertinent documents.

Research instrument. The researchers will conduct a survey that

will serve as a tool in determining those people who are in need of a

place to rehearse wherein they can develop their skills in dancing.


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Also the studio was designed with a positive and creative atmosphere

so that our clients can master their craft.

Appendix A contains the survey questionnaire that was given to the

population of the study.

Data Gathering Procedure. The researchers self-administer a

survey which will help us to know the feasibility of this project.

Moreover, we conducted interviews to personally ask the market and

recognize their opinions. Aside from this, the researchers run down

from different pertinent documents that will add information to our

project.

Analytical Tools

The following tools were used by the proponents to help them in


decision making:

1. Payback Period length of time required for a projects

cumulative net cash inflows to equal its net investment. It

measures the time required for a project to break even.

(Cabrera, 2013.Financial Management)


If the expected annual net cash inflows are equal, the equation

is:

Net investment
Payback Period=
Annual Net Cash Inflows

If the expected annual net cash inflows are unequal, the

unequal, the equation is:


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No. of years prior Unrecovered cost at start


of year
Payback Period = to full recovery +
Cash flow during full

recovered
2. Net Present Value (NPV) is the excess of the present values

of a projects cash inflow over the amount of the initial

investment. The NPV model implicitly assumes that the projects

net operating cash inflows are invested at a rate equal to the

firms cost of capital. . (Cabrera, 2013.Financial Management)


Present value of cash inflows computed
based on the minimum desired discount rate. P
xx
Less: Present value of investment xx
Net Present value xx
3. Return on Investment measures the amount of return on an

investment relative to the investments cost


gain from investment-cost of investment
ROI=
cost of investment

4. Accounting Rate of Return is the rate of return promised by

an investment project when the time value of money is not

considered. (Cabrera, 2015. Management Consultancy)


incremental revenues less incremental costs and expenses
ARR=
initial investment
or
annual cash flow from operation-incremental annual depreciation
ARR=
initial investment

5. Profitability Index (PI) is the ratio of the total present value

of future cash inflows divided by its net investment. . (Cabrera,

2013.Financial Management)
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Present value of Cash Inflows


PI =
Present Value of Net Investments
6. Break-even Analysis determines the break-even point (BEP) -

the point at which sales revenue equal production costs and

expenses. . (Cabrera, 2015. Management Consultancy)


fixed cost
BEP ( Units ) =
unit selling price-unit variable costs

7. Operating Leverage extent to which a companys net income

reacts to a given change in sales. (Cabrera, 2015. Management

Consultancy)
Contribution Margin
Operating leverage=
Net Income

Definition of Terms
Choreographer is a person who teaches aspiring dancers in

JAST Dance and Fitness Studio


Craft an activity that requires a special skill
Dance Studio is a place where dancers rehearse
Dancing is the act of moving your body to the rhythm and beat

of the music
Demand are the number of people who are willing to avail the

services offered by the proposed business


Folk dance is a native type of dance that depicts the different

cultures and traditions of Filipinos


Jazz is a modern type of dance that shows different movements

and requires emotions in dancing


Researchers are the students conducting the proposed study
Supply the service that the proposed project can offer