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 Mel’s 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

linguiça. 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 Mel’s Special Longganisa which comes

from the proponents name. Mel’s 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 city’s

One Town, One Project (OTOP) selection under this national government program.
They’ve 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

Mel’s 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, Mel’s Special Longganisa will capitalize on its proximity to the

Barangay Paldit Pangasinan to build a core group of repeat customers. Mel’s 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 (Mayor’s 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. UNIT COST TOTAL COST

Computer w/printer 2 25,000 25,000
Telephone 2 1,500 3,000
Wall clock 2 200 400
Fax Machine 1 5,000 5,000
Television 4 5,000 20,000
CD player 1 5,000 5,000
CD rack 1 400 400
Medicine Cabinet 1 550 550
Component 1 19,550 19,550
Emergency light 4 1,450 5,800
Generator 1 12,675 12,675
Office Chairs 2 1000 2,000
Air Conditioner 4 17,000 68,000
Exhaust fan 2 1,800 3,600
Fire extinguisher 4 3,600 14,400
Oven chamber 1 100,100 100,00
Walking chiller 1 98,700 98,700
Griller 1 50,000 50,000
CAKE CABINET 2 60,000.00 120,000.00
WATER SOFTENER 1 8,000.00 8,000.00
Gas range (heavy Duty) 1 15,770 15,770
Water dispenser 1 1,000 1,000
Stainless knives 1set 200 200
Spoodle 4 20 80
Ladle 4 20 80
Measuring cups 1set 30 90
Mortar and pestle 2 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 3 250 750
Longganisa in an Eggshell dessert Mugs 100 90 9,000
Kettle 2 300 600
Juice dispenser 7 500 3,500
cups 250 25 6,250
Knife sharpener 2 250.00 500.00
Wooden rice spoon 2 30.00 60.00
Set of measuring spoon 1 34.75 34.75
Measuring cup 1 40.00 40.00
Bottle opener 1 85.00 85.00
Food tongs 3 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 Mel’s Special
Longganisa. It will provide customer satisfaction on seeing the environment of the Mel’s

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 Mel’s 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 Mel’s 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 Mel’s 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 Mel’s

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 Mel’s Special Longganisa Longganisa at the Pangasinan,

the strengths and opportunities are out performing the weaknesses and threats thus

justifying the investment for a new Mel’s 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 Y X X2 EXY

2010 68,880.00 -2 4 -137,760.00

2011 69,700.00 -1 1 -69,700.00

2012 71,340.00 0 0 0

2013 73,800.00 1 1 73,800.00

2014 76,260.00 2 4 152,520.00

EY= 359,980.00 10 EXY= 18,860.00

SOLUTION:

Yc = a+ bx

Where:

A = y/n

= 359,980/5 = 71,996

B = xy/x2
 = 18,860 / 10 = 1,886

Yc = 71,996 + 1,886x

Project demand

Year X EXY

2010 3 77,654

2011 4 79,540

2012 5 81,426

2013 6 83,312

2014 7 85,198

The proponents use statistical straight line method to project the demand for five

years. The projection shows that the demand of Mel’s 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 Mel’s Special Longganisa

Product in Barangay Paldit Pangasinan. The supply shows that the past supply of Mel’s

Special Longganisa increased from 52,137 in 2001 to 61,664 in 2005, with an average

annual increase of 4.31%.

Past supply of Mel’s 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 Mel’s Special Longganisa

Year Y X X2 EXY

2010 52,137 -2 4 -104,274

2011 55,516 -2 4 -55,516

2012 56,076 -2 4 0
 2013 58,955 -2 4 58,955

2014 61,664 -2 4 125,528

EY=284,348 10 EXY=22,493

Solution :

Yc = a + bx

Where:

A = y/n

= 284,348 / 5 = 56.870

B = xy / x2

= 22,493 / 10 = 2,249

Yc = 56,870 + 2,249x

Year X Yc

2010 3 63,617

2011 4 65,866

2012 5 68,115

2013 6 70,364

2014 7 72,613
 The proponents used statistical straight line method in projecting the supply for

the next five years. The period supply for Mel’s 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 Mel’s Special Longganisa in Barangay Paldit Pangasinan.

. The demand and supply gap analysis shows that the supply cannot meet the

increasing demand of Mel’s Special Longganisa in Barangay Paldit Pangasinan, the

percentage of unsatisfied was presented in the table below.

Year demand supply demand unsatisfied

and supply gap demand

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 and supply analysis

The demand and supply gap analysis from the past gap analysis shows the

unsatisfied consumer of Mel’s 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

L o n g g a n i s a i s s i t u a t e d i n t h e a r e a n o t h i g h t r a ff i c c o u n t

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 a 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

c o n s u m e r s w o u l d s u r e l y l i k e t o t a s t e a n d w i l l b e v e r y a ff o r d a b l e f o r

everyone.

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

P ro p r i e t r e s s – R e s p o n s i b l e i n t h e o v e r – a l l o p e r a t i o n o f

the business from Marketing to Book keeping to Management

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
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 aren’t

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 We l 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

growing business that most people are now eager to run with. As the

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

of product, whether it is medicinal, home appliance or clothing, you

can view your required the items from home with the help of
Internet marketing websites and place order for the items you want.

And on time, you will get the products at your threshold.

M A R K E T I N G S T R AT E G Y

As the customers today are smarter than before, they like to

h a v e d i ff e r e n t k i n d o f t h i n g s f r o m d i ff e r e n t p a r t o f t h e w o r l d .

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

go for buying it, customers can view the product. Including all the

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.

QUALITY ASSURANCE

These quality standards will be based on customer

expectations with regard to:

 Performance

 Product life

 Appearance

 The Quality Assurance Program will integrate all

functions of the company is a coordinated, responsive,

a n d e ff i c i e n t e ff 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 rg a n i z a t i o n a n d s y s t e m

which will assure quality products at optimum costs.

T h e Q u a l i t y A s s u r a n c e o rg 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 of each department within the c o m p a n y.

Consequently all members of management are to 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 Mel’s Special Longganisa

2012 2013 2014 2015

Assets

Current Assets

Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00

Prepaid rent 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

Total Current

Assets
692,570.00 1,461,891.00 2,299,792.10 3,213,665.71

Fixed Assets

Machineries and

equipment 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

Liabilities and 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71

owner equity
 Projected Balance Sheet

Table 1.6 Shows the Projected Balance Sheet of Mel’s Special Longganisa

2012 2013 2014 2015

Assets

Current Assets

Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00

Prepaid rent 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

Total Current
Assets
692,570.00 1,461,891.00 2,299,792.10 3,213,665.71

Fixed Assets

Machineries and
equipment 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

Liabilities and
owner equity 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71

E.) Financial Analysis

Profitability

N e t P r o f i t M a rg i n = N e t i n c o m e a f t e r t a x

Sales

Ta b l e 1 . 7 S h o w s t h e N e t P r o f i t M a rg i n o f Mel’s Special Longganisa

Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a 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 .49

O p e r a t i n g P r o f i t M a rg i n = P r o f i t b e f o r e t a x e s

Sales
Ta b l e 1 . 8 S h o w s the Operating Profit M a rg i n of M e l ’s Special
Longganisa

Year 1 Year 2 Year 3 Year 4 Year 5

P358, 800 P414, 400 P466, 280 P522, 680 P598, 178

672,000 739,200 813,120 894,432 983,875

.53 .56 .57 .58 .60

G r o s s P r o f i t M a rg i n = G r o s s P r o f i t

Sales

Ta b 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 rg i n o f Mel’s Special Longganisa

Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a 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 .40

23
 Sources of financing the project

From Savings accounts P30, 000.00

From parents 35, 000.00

P65, 000.00

P ro j e c t e d C a s h F l o w

Ta b l e 1 . 5 S h o w s t h e C a s h F l o w o f M e l ’s S p e c i a l L o n g g a n i s a

2012 2013 2014 2015 2016

Cash Receipts P672,000 P739,200 P813,120 P894,432 P983,875

from operation

Cash

Disbursements

Purchases 420, 000 462, 000 508, 200 559, 020 614, 922

Salaries 67, 200 67, 200 73, 920 84, 000 84, 000

Rent 120, 000 120, 000 120, 000 120, 000 120, 000

Bonus 5,000 5, 000 6, 000 7, 000 7, 000

Misc. 12, 000 14, 400 15, 600 16, 800 18, 000

Taxes and 5, 000 5, 000 6, 000 6, 500 7, 000

licenses

Income tax 71, 760 82, 880 93, 256 104, 536 119,636

Net Cash 712, 960 768,480 836, 976 912, 856 985, 558
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-Mayor’s 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 . ) Ta x e s

Wi t 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

T h e r e i s a l a rg e m a r k e t f o r l o n g g a n i s a . S u p p l y i s l i k e l y

promising.

E.) Demands of Materials

Demands for materials are considered adequate