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Cost and Return Analysis

Cost and Return Analysis for Go Veggie Ice Cream

Cost
Category Item Qty Price Total
Equipment Ice Cream Maker 1 P 35,000.00 P 35,000.00
Machine
Freezers 2 20,500.00 41,000.00
Stainless 5 1,000.00 5,000.00
Containers
Kitchen Knife 2 80.00 160.00
Electric fan 2 900.00 1,800.00
Casserole 2 390.00 780.00
Table 2 340.00 680.00
Chairs 5 150.00 750.00
Raw Materials Yuro 12 kilos 35.00 420.00
Skim Milk 36 kilos 20.00 720.00
Canned 24 35.00 840.00
Evaporated Milk

Canned 84 42.00 3,528.00


Condensed Milk

Sugar 24 kilos 44.00 1,056.00


Coconut Milk 12 60.00 720.00
Vanilla 1 120.00 120.00
Food Color 2 24.00 48.00
(Orange and
Green)
Squash 3 100.00 300.00
Malunggay 6 30.00 180.00
Nips 1 kilo 200.00 200.00
Marshmallows 2 kilos 140.00 280.00
Sprinkles 1 kilo 180.00 180.00
Cups 3,000 1.00 3,000.00
Spoon 3,000 0.14 420.00
Training Basic Operation 3 10,000.00 30,000.00
skills (operating
mixing
machines, etc.)

Customer service 3 5,500.00 16,500.00


system
Other Man days lost 20 3 6,000.00
Sales lost during 10,000.00 10,000.00
initial phase

Total Cost: P 113 182

Benefits/Return (estimated per annum)


Advertising P 60,000.00
Customer Retention 35,000.00
Improvements in Management Efficiency 80,000.00
Total Benefit/Return: P 175 000
Project Sustainability

Sustainability Objectives Sustainability Actions

Evaluate project effectiveness  Design and implement a


comprehensive evaluation plan to
assess the impacts of various strategies
implemented

Maintain project flexibility to adjust to  Get regular feedback from customers


challenges in doing the business about progress
 Develop a list of alternative strategies
and plan to implement them if chosen
strategies did not work

Provide staff and employees training to support  Conduct regular staff training and
strategic planning and operation skills, preparation on key sustainability
knowledge of needs assessment and leadership factors
skills

Aim to have multiple sources of funding  Work closely with community partners
and coalition member organization to
assist them in writing grants to fund
companion efforts

Develop and conduct a comprehensive project  Design and implement a


evaluation comprehensive evaluation plan to
assess the effectiveness of the project

Develop community support and ownership for  Seek for the cooperation of community
the project in the targeted communities bodies (e.g. schools, etc.) and engage
them in the promotion of the product
Problems and Insights

Problem: Sales lost during initial phase


Insight: Low number of customers may be caused by the tendency of the consumers to
have a certain difficulty in accepting or trying a new product.

Problem: Tight competition


Insight: May due to the presence of other ice cream products which is already well-
known in the market.

Problem: Cleanliness and safety in the working environment


Insight: Accidents may occur (fire, gas or tank leakages, short circuit, etc.) due to
human error or unexpected machine malfunction which is inevitable.
Summary

This study is conducted to determine the marketability of malunggay and squash ice

cream in San Pablo City, Laguna. The proponents of the study aim to provide consumers not just

a delicious food but also a healthy one, knowing that both malunggay and squash provides a

stack of vitamins and minerals necessary for ensuring the health and nutrition of the body as well

as earning a favorable return on the initial investment laid for the business.

Sold for only P15.00 per cup, Go Veggie Ice Cream will be targeted to the city dwellers

of San Pablo, Laguna having a 248, 890 of population. Based on the conducted survey, about

60% of the respondents answered that they will buy the product. Marketing strategies were also

employed to ensure high return of sales like signage, promotion of product through social media

or social networking sites, direct mailings, distribution of coupons/fliers and “FREE TASTE”

offers for passers-by.

Conclusions

The study conducted has yielded some conclusions based on the findings presented form

the previous chapter.

1. The idea of using vegetable as the primary ingredient in an ice cream product had a great

impact to attract potential customers as people nowadays are more health-conscious and

on diet.

2. Employing various kinds of marketing strategies (social media, coupons, fliers, etc.) will

be a great advantage for the business to be well-known among its customers and the

market.
3. The price (P15.00) set for the Go Veggie Ice Cream will help to achieve marketability of

the product as many customers will find it very affordable.

Recommendations

This study requires the commitment and cooperation of the concerned personnel to

maintain its effectiveness and reliability, thus, the following recommendations were made:

1. To the Go Veggie Ice Cream Management. Incorporating new flavors for ice cream

products should be made to ensure the continuity of its market demand; to regularly

conduct product and customer service evaluation as well as considering the needs and

concerns of its staff and employees.

2. To the go Veggie Ice Cream Advertising Team. Must ensure to always come up with

new and interesting advertising strategies for the Go Veggie Ice Cream products.

3. To the Go Veggie Ice Cream Plantation Operators/Personnel. Must always adhere to

the safety and sanitation guidelines implemented by the management to ensure

cleanliness and presentable image of each product made and handed to the customers.
FINANCIAL ASPECTS

FINANCIAL ASSUMPTION

The total initial capital agreed upon by the partners is ₱102, 988, where each partner will

contribute ₱51, 494. Any profits or losses are divided equally.

The following are the names of the partners and their capital contribution.
A. Sales and cost of goods sold will increase to 10% annually.

B. Salaries of the employees will increase 10% yearly.

C. Straight line method will be used for depreciation. The estimated useful life of 3years.

D. Corporate tax of 30% per year will be used.

Estimated Cost

MACHINERY/EQUIPMENT COST

1 Ice Cream Maker Machine 35,000.00

2 Freezers 41,000.00

5 pieces Stainless Containers 5,000.00

2 pieces Kitchen knife 160.00

2 Electric Fan 1,800.00

2 pieces Casserole 780.00

Table 680.00

5 Chairs 750.00