A Feasibility Study

Libing Labi Da Loca: Death Care Services

In partial fulfilment of the requirementsfor the degree of

Bachelor in Science in Accounting Technology

Aguila, Von Ianelle T.

Azurin, Victoria Veronica L.

Cuaterno, Karen Joy G.

Dela Cerna, Catherine L.

Nartatez, Chloe S.

Oligo, Fritz M.

Sumugat, Gianelli Jude S.

Researchers

University of St. La Salle

Bacolod City, Negros Occidental

VANESSA JOY G. MATTI, CPA

FIN2B Adviser

March 1, 2016
 Chapter 1

INTRODUCTION

Background of the Study

Death is inevitable. It is the most certain thing in the world. Where there is life, there is

death; and the most grieving ones are those of a family member. It is only human nature to

mourn and look after the death of a loved one. As a Christian country, it has been a tradition for

most, if not all, Filipinos to provide testimonies about the life of the deceased and acknowledge

the loss of a loved one. Families of the departed would want to make sure that they are provided

with the best funeral service available. “The funeral ritual is a public, traditional, and symbolic

means of expressing our beliefs, thoughts and feelings about the death of someone loved.”

(Wolfelt, Alan, 2007, Center for Life and Life Transition, par. 2).

“Yes, we are of good courage, and we would rather be away from the body and at home

with the Lord” (2 Conrinthians 5:6). The Bible speaks not about greiving for the death of a

loved one, but celebrating it for he will be reunited with God in His kingdom. In response to this

belief, the proponents have decided to put up a death care and event planning business in

Bacolod City, Negros Occidental. Aside from the traditional customs, families will have the

opportunity to choose a theme during the wake and burial of their loved ones. The services will

also include interment type of burial and crematorial services. The funeral service is inclusive of

embalming, preparing the wake or visitation (i.e. providing for the coffin, setting up the chapel,

accomodation of the guests, etc), online vigil, taking care of the paperworks (i.e. permits,

arrangements with the cemetery, providing obituaries to the news media) and delivering the
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departed to his or her final resting place. The clients can arrange the burial of their loved ones

according to their chosen theme and the business may provide ceremonial services such as

releasing of doves or balloons.

This study was conducted to determine if this type of venture will be feasible or not,

given the forecasting period of 5 years. Different risks will be considered in this study to know if

the business will meet the goals intended by the proponents.The business shall be consequently

named as “Libing Labi da Loca.”

Statement of the Problem

Generally, this study aims to determine if Libing Labi da Loca is a feasible proposal as a

themed and complete memorial services.

Specifically, this study targets to answer the following questions:

1. What form of business organization is most suitable for the business?

2. What management practices will be adapted by the business in terms of:

a. Human Resource Practices

b. Operational Practices; and

c. Administrative Practices?

3. What marketing strategies shall be adapted to generate revenue?

4. How much is the projected income in 5-year operation?

5. How long will it take to recover the capital investment?

6. What will be the contribution of the business to the community, government and

protection of the environment?

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Furthermore, this study seeks to achieve the following objectives:

1. To obtain extensive knowledge about the death care industry in order to have a

substantial foundation for the proposal of the business;

2. To determine a practicable starting capital including viable sources of investments

and net assets;

3. To establish management policies including personnel and general procedures for

the operations of the business;

4. To establish the general flow of the operations of the business per client/per day;

5. To come up with a marketing mix that will improve the marketing structure of the

company.

6. To precisely calculate the expected revenue and expenses of the operations and

project the earnings for the next five years into the business;

7. To precisely target at what year the initial investment be fully recovered; and

8. To determine the effects of the establishment and operations of the business to the

society, economy, and the environment.

Scope and Limitations

The survey conducted during the month of December in the year 2015 included only a

sample from the population of young professionals and Baby Boomers in Bacolod City.

The proponents made sure that the sample wouldsoundly reflect the interests of the business’

target market. With that, the proponents chose those who are most likely to be financially and

emotionally stable with regards to dealing with the fact of death.

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Furthermore, the services are limited only to embalming, cremation, themed wake

preparation (i.e. in chapels or residence of the family), including online viewing, and delivering

the departed to his/her final resting place.

Aside from the services offered, this study will also focus on its desired target market

which are the young professionals and the baby boomer age bracket (45-65 years old). Young

professionals were chosen as the target population because this generation are the ones most

likely to avail of the plans and services in time. People from the baby boomer age bracket were

also selected since they are the ones who are capable of spending money on funeral service

policies and they are interested enough to plan their own funeral. The survey was conducted

among 101 professionals ages 18 to 65 in December 2015.Basing on the market share of 256 and

annual number of deaths of 2,559in the City of Bacolod, the 101 respondents represent almost 50

percent of the business’ market share.

As to the scope of the services offered, upon the purchase of the desired death care plan,

there will be an agreement contract between the customers and the entity regarding their desired

themes for their funeral services which will be approved by the entity with regards to the

standards set.The business will carefully take into consideration religious matters in accepting

the choices of the clients. Moreover, keen judgement will be observed to properly equate the

standards of the client and the society.

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The fact that this proposed business will be the first of its kind that will be built in

Bacolod City, the challenge comes in finding relevant information that could help in establishing

a strong foundation that will prove the study feasible.

In addition, the business estimates its capital of Php 22,699,200, generated from a

combination of contributed cash by the partners with the total of Php 18,000,000 and a loan from

the Bank of the Philippine Islands worth Php 4,699,200.

Significance of the Study

This study is significant to the following users:

Community. The families and residents of Bacolod City will be provided with an

alternative in purchasing for life plans which incorporates themed funeral services that will suit

their needs and interest. The potential clientele of this business will be presented with flexible

plans and options for the funeral services they wish to acquire, thus providing them with a more

personalized plan because of customization.

Investors. Investors shall have the benefits of foreseeing the potential investment

opportunities in the themed funeral industry. The conclusions derived in this study will provide

investors with information regarding the profitability of the business in the near future should the

study prove to be feasible to be put up in Bacolod City.

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Other Businessmen. Findings in this study will also give valuable information to other

businesses related to the industry such as the suppliers of funeral needs (i.e. flowers, balloons,

casket, etc) with regards to potential expansion of their markets and future business partnerships

with the proposed business.

Proponents. This study provides information to the proponents of the business venture

whether the themed funeral services business is feasible to be established in Bacolod City or not.

The conclusions derived in this study may be used by the proponents of the business in decision-

making regarding the creation of the business in Bacolod City. This study provides an avenue for

proponents to apply their learnings in school.

Future researchers. This feasibility paper on themed funeral services could be a

learning paradigm for future interested proponents of a business simillar to this kind on the same

industry. Also, other researchers may find helpful information in the outcome of this study that

might be used as reference in other fields of knowledge.

Location

Libing Labi Da Loca will be located along Alijis Road, Barangay Alijis, Bacolod City. Its

vicinity map is shown in Figure 1.

It will be advantageous for the clients since it is proximal to St. Jude Thaddeus Parish

Church, Santuario de Bacolod, and Bacolod Memorial Park. Moreover, Alijis Road is not prone

to traffic jam.
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Figure 1: Vicinity Map

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Chapter 2

MANAGEMENT ASPECT

This chapter discusses the management structure of the proposed business. This chapter

includes the goals and objectives of the business, how the business shall be directed, the persons

in charge, and the responsibilities of each personnel.

Mission

To provide the community excellent and exceptional death care with a themed and

quality funeral services tailored to suit the clients’ ultimate interests.

Vision

Libing Labi da Loca envisions families and homes celebrating life and the blissful eternal

journey.

Goals and Objectives

To achieve the mission and the vision of the company:

 Improve the profitability and growth of the business;

 Develop rapport and healthy working environment among the employees;

 Innovate and introduce a new paradigm in funeral services;

 Comply with the environmental regulations concerning proper funeral activities;

 Provide proper social responsibility through strong collaboration with the community;

and
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 Ensure that the business operations comply with health standards.

Form of Organization

Libing Labi da Loca, as its form of business organization, is a general partnership. By the

contract of partnership 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 (De

Leon, 2013).The business is composed of seven partners who are liable to the extent of their

personal properties.

Their designations are as follows - two of the partners are purely industrialist partners

performing the roles of the General Manager and the Operations Manager; one partner is an

industrial capitalist partner performing the role of the Finance Manager with a contribution of

P2, 800, 000; and the remaining four partners are capitalist partners with a contribution of

P3, 800, 000 each. The partnership will obtain a loan from BDO for Php4, 699,200 which will

sum up to a total capital of Php 22, 699, 200. The partners shall be entitled to receive incentives

in the net income or net loss allocation in the form of monthly salaries, with the balances divided

equally among the seven partners.

The General Manager, Finance Manager and Operations Manager shall receive a salary

of Php20,000, Php18,000 and Php18,000 respectively and the remaining net income shall be

divided equally among the partners as stated in the articles of partnership.

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Organizational Structure

The business will adapt the organizational structure presented in Figure 1.

General
Manager

Operations Manager Finance Manager

Funeral Sales
Director Officer Administrative
Cashier Clerk

Embalmer/ Funeral Multimedia

Driver Sales Agents Relations
Beautician Attendant Security
(2) (5) Specialist
(2) (10) Guard

Figure 2. Organizational Chart

Job Descriptions, Functions and Qualifications

General Manager

Supervises: Operations Manager and Financial Manager and Security Guard

The General Manager supervises the overall performance of the organization. He/She is

in charge of establishing the objectives of the company, and the strategies or methods that would

enable the company to accomplish these objectives, efficiently and effectively. It is also his/her

job to direct and supervise the company’s operations and administrative functions, impose rules
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and policies within the organization, enforce ethical business practices,maintain good customer

relationships and assure that the business is running along with its vision and mission. He/She

implements changes to service offerings in order to meet community needs or increase revenues,

and plans sales promotions or other marketing strategies and activities for funeral service

operations.Furthermore, it is his/her responsibility to interview, hire, and contract employees as

well as to evaluate their performances along with the company’s suppliers, or other service

providers to ensure quality and cost-efficiency. Finally, the general manager acts as an industrial

partner, who reports to the other partners about business matters and progress.

Job Specifications

 Bachelor’s Degree in Business Administration or any related business course.

 At least two years of work experience as a manager in the service industry

 Has complete knowledge of business management, rules, and policies

 Excellent communication skills, especially of the English language, both oral and written

 Effective skills in leadership, planning, and decision-making

 Confident and has the ability to influence people

 Ability to adapt with varying working conditions

 Trustworthy
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Operations Manager

Reports to: General Manager

Supervises: Funeral Director and Sales Officer

The Operations Manager is in charge of the whole operations of the business. She/he

oversees the flow of the business processes including the funeral services and the sales of the

operations. The Operations Manager is the one responsible for the coordination of the line

employees for effective and efficient operations. He/She assesses the individual and overall

performance of the employees at the bottom of the organizational ladder. He/She is also in

charge of training the employees directly related to the operations of the business. The

Operations Manager plans the designs of the processes, the layout and location strategy. Included

also in his/her areas of responsibility are managing the quality of the services offered by the

business, supply chain management, inventory planning, intermediate and short-term scheduling

of the business operations, and maintenance.

Job Specifications:

 Bachelor’s Degree in Business Administration or any managerial course, preferably

Major in Operations Management

 At least two years of work experience as a manager in the service industry

 Has complete knowledge of operations management, rules, and policies

 Excellent communication skills, especially of the English language, both oral and written

 Effective skills in leadership, planning, and decision-making

 Confident and has the ability to influence people

 Ability to adapt with varying working conditions and trustworthy

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Sales officer

Reports to: Operations Manager

Supervises: Multimedia Relations Officer

The sales officer is in-charge of the Libing Labi Da Loca sales objectives by forecasting

and developing annual sales quotas for regions and territories; projecting expected sales volume

and profit for existing and new products and services. He supervises the multimedia relations

officer in advertising and delivering information to the public through the web. Ultimately, it is

his job to maintain sales volume, product mix, and selling price by keeping current with supply

and demand, changing trends, economic indicators, and competitors. It is his task to establish and

adjust selling prices of the company’s funeral packages by monitoring costs, competition, and

supply and demand.

Job Specifications:

 Bachelor’s degree in Marketing or Economics

 At least two years of work experience in sales promotion and advertising

 Excellent communication skills, especially in English, both oral or written

 Competent and diligent at work

 Market knowledge and familiarity with economic factors

 Optimistic and goal-driven

 Persuasive and has the ability to relate and influence other people
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Funeral Director

Reports to: Operations Manager

Supervises: Embalmer, Driver, Funeral Attendant

The Funeral Director is primarily responsible for the smooth, effective and efficient

execution and operation of burial and cremation processes. His/her duties include helping

prepare the funeral home before the service, operating the cremation or burial equipments during

the service and making sure they are in good condition and operating safely. She/he also makes

sure that legislation and management regulations are followed. S/he ensures that remains are

properly identified, stored and disposed of appropriately. She/he is required to attend seminars,

programs and training in order to enhance and further develop his/her skill and facility in

performing funeral services towards industry qualifications. The Funeral Director mostly does

the practical and technical tasks and procedures involved in cremation and above-ground burial.

Job Specifications:

 Has good communication skills

 Has good administration and record keeping skills

 Has the ability to work unsupervised

 Thorough and has attention to detail

 Has the ability to work within set regulations

 At least a high school graduate

 Must have at least two years of work experience in funeral services

 Ability to accurately use measuring devices

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 Ability to operate cremation/burial tools and equipment

 Ability to work in various adverse weather conditions

 Understands safety and security issues and implications

 Tactful, sympathetic and respectful

Embalmer

Reports to: Funeral Director

Supervises: None

The embalmer/s reports directly to the funeral director. It is his/her responsibility to

attend to the sanitation, presentation and preservation of the deceased persons,cremation, and the

maintenance of funeral service plant and facilities. The task and duties of the

embalmer/sinclude/s arranging for the removal of bodies from the place of death, including

private homes or hospitals; performing preservation procedures to delay the decomposition of the

deceased; operation of the crematorium, collection, recording and short/long term care of the

ashes; and ensure the presentation and beautification of the deceased is natural and peaceful to

the satisfaction of the family.

Job Specifications

 Undergone embalming course

 Funeral industry knowledge and at least 2 years of meaningful experience in related field

 Competent and trustworthy

 Ability to operate cremation/burial tools and equipment

 Ability to communicate effectively with fellow Funeral director and client families
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 Ability to stand and/or sit for extended periods of time

 Ability to work in various adverse weather conditions

 Understands safety and security issues and implications

 Reliable and independent

Driver

Reports to: Operations Manager

Supervises: None

The driver or hearse driver transportsthe departed on behalf of the business. He doesn’t

only act as a chauffeur, but also a funeral assistant, and must address to the funeral activities. It is

also his duty to check on vehicle maintenance.

Job Specifications

 At least a high school graduate

 Has fulfilled the licensure requirements for driving a commercial vehicle

 At least 3 years of work experience

 Able to work with a flexible schedule

 Familiar with the region

 Must be Patient and dependable

 Courteous

 Has good communications skills

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Funeral Attendant

Reports to: Funeral Director

Supervises: None

The Funeral attendant primarily assists the Funeral Director with cremation and burial

processes. He helps in the smooth operation of funeral services. He is on-call in case the Funeral

Director will be needing help due to increased customer demand. It is his job to ensure that

proper procedures are followed in the funeral services. The Funeral attendant makes sure that the

funeral home can provide quality service to all customers by taking initiative and offering

reliable service.

Job Specifications:

 Must be at least a high school graduate

 Above 18 years old

 Physically fit

 Willing to be assigned to different areas

 Willing to render overtime

 Willing to work on-call

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Finance Manager

Reports to: General Manager

Supervises: Cashier and Administrative Clerk

The Finance Manager is in charge of the financial aspect of the business. He/She

basically acts as the treasurer of the business. He/She is responsible for managing the finances of

the business including the authorization of cash disbursements and receipts. The financial

manager is also in charge of the cash and capital budgeting of the business and in making

decisions on how to invest the money. Included in his/her responsibilities are planning and

contacting contractual suppliers for the funeral needs. The finance manager is in charge of

reconciling the cash receipts and disbursements for the day. He/She is the one to authorize the

cash collections, with the cashier, before the Administrative Clerk deposits it to the bank by the

end of the day.

Job Specifications:

 Bachelor’s Degree in Financial Management or any accounting-related course, preferably

Certified Public Accountant or Certified Management Accountant

 At least three years of work experience as a finance manager in the service industry

 Has complete knowledge of finance management, bookkeeping, accounting

 Outstanding knowledge in electronic spreadsheets

 Excellent communication skills, especially of the English language, both oral and written

 Effective skills in leadership, planning, and decision-making

 Trustworthy
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Cashier

Reports to: Finance Manager

Supervises: None

The cashier position is accountable for error-free cash register operations, payment

processing, and interactions with customers. His/her duties include accurate and efficient

operation of cash registers, ensure that there is sufficient cash in the cash drawer, maintain

correct cash balances at cash registers, sort, count and wrap coins and currency, process

payments made with cash, checks, credit cards, and debit cards, process returns and exchanges,

be aware of all promotions and advertisements that affect service prices, maintain a clean

checkout area and communicate company policies and procedures to customers.

Job Specifications:

 Associates degree in commerce, preferably in accounting or business administration

 Possesses general clerical experience for at least a year

 Willing to render overtime

 Good communication skills

 Detail-oriented

 Honest and trustworthy

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Administrative Officer

Reports to: Finance Manager

Supervises: None

The Administrative Clerk position performs two functions namely as a bookkeeper and as

a front desk receptionist. As a bookkeeper s/he creates financial transactions, keeps financial

records up to date and creates financial reports from that information. The creation of financial

transactions includes posting information to accounting journals from source documents such as

sales invoice, cash receipts and payment. The bookkeeper also reconciles accounts to ensure

their accuracy. S/he processes payroll in a timely manner and provide clerical and administrative

support to management. On the other hand, as front desk personnel s/he is the person who greets

the business’ visitors and clients as they enter the building premises. S/he is the one who gives

out application forms and other necessary documents. S/he is also responsible for answering the

inquiries of customers as much information as possible regarding the services being offered by

the business. S/he also makes and answers phone calls and emails from outside parties and

resolves customer complaints. S/he offers alternative solutions to better suit the desires of the

family member and advise the client of additional services available to them. /he also provides

relevant information to interested parties who wish to know the activities conducted at the

establishment. Included in his/her responsibility is the scheduling of appointments and

maintaining and updating appointment calendars of the clients.

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Job Specifications:

 Has an Associate’s degree in Accounting or Business Administration

 Has at least two years of meaningful experience in accounting or related clerical works

 Has confidence in working with numbers

 Knowledge of bookkeeping and generally accepted accounting principles.

 Proficient knowledge in analyzing information

 Outstanding knowledge of electronic spreadsheets.

 Attention to detail and thoroughness

 Has self-initiative and personal motivation

 Effective communication, listening and critical thinking skills

 Has a service orientation

 Good time management

 Acts in serious and dignified manner

 Persuasive and persistent

 Excellent social orientation

 Ability to deal sensitively with distressing situations

 Trustworthy, reliable and competent

Multimedia Relations Officer (Outsourced)

Reports to: Sales officer

Supervises: None

Under direct supervision, the multimedia relations officer performs a wide range of

multimedia support functions, such as video production and editing and/or coordination of
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instructional/in-house broadcasts. Ultimately, it is his job to create and design the company’s

web page, and continually updates them. He assists in development and/or prepares presentation

materials. He also performs a range of administrative support and clerical functions, as

appropriate to the needs of the work unit.

Job Specifications:

 Must have a bachelor’s degree in information technology

 Have at least a year of work experience in web design and organization

 Ability to gather data, compile information, and prepare reports

 Ability to set up and operate professional audio and/or video recording equipment

 Skill in the use of personal computers and related software applications

 Ability to maintain calendars and schedule appointments

 Graphic design skills

 Creative and artistic

 Excellent writing skills

 Efficient in work

Security Guard (Outsourced)

Reports to: Operations Manager

The Security guard shall provide security and safety related duties at all times. He shall

provide information and security related services as the initial contact for all visitors to the

establishment including meeting and greeting visitors. He is outsourced and therefore his salary
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is not included in the payroll. He performs a variety of routine manual maintenance work of

grounds and facilities everyday around the establishment. He ensures that all persons entering the

building are unarmed of any dangerous objects. He observes rules and regulations and strictly

implements them for the well-being of all employees and clients of the business.

Job Specifications:

 High school diploma

 At least two years of experience performing security services or other related services

 Ability to take and follow directions

 Ability to perform strenuous and routine work.

 Ability to maintain good planning and organizational skills.

 Ability to maintain harmonious and effective working relationships with other employees

and respond to general public complaints.

 Ability to maintain good health and physical condition sufficient to permit the full

performance of the duties of the position.

Personnel Management Policies

1. General Rules and Regulations

a. Only authorized persons can enter the restricted areas (e.g. Cremation Area, Embalming

Area, etc.)

b. All Libing Labi Da Loca non-employees are required to log in personal details (e.g. Name,

Address, Contact Number) upon entering the Libing Labi Da Loca premises.

c. Car Park Area is exclusively for the use of Libing Labi Da Loca clients and employees.
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d. Moving of furniture owned by Libing Labi Da Loca is highly prohibited.

e. Excessive noise and menacing activities are not allowed within the establishment.

2. Death Care Services

a. The management shall not accept cadaverswithout confirmation from an authorized medical

entity.

b. Cremation requires consent from the immediate family. However, cremation is compulsory if

the cause of death is proven to be contagious.

c. Services done to the plan-holders will only be up to the extent of their availed plan.

d. Embalming and Cremation will be available daily from Monday to Sunday, 8:00am to

4:00pm.

e. Plan holders will be prioritized over non plan holders.

3. Waste Management

a. All wastes accumulated from the embalming and cremationprocess shall be buried

immediately below the ground.

b. The management will provide enough garbage bins properly labelled with “Biodegradable”

and “Non-Biodegradable” to encourage employees and clients to practice proper waste

segregation.

c. Garbage collected shall be disposed properly everyday through the government dump truck.

4. Health and Safety

a. The use of masks provided by the management shall be practiced by the employees assigned

with embalming and cremation processes.

b. Bringing of hazardous materials or any deadly weapons is strictly prohibited.

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c. The management must implement regular health and safety check-ups and risk assessment for

the benefit of the employees.

d. Regular building inspection shall be conducted by the management to ensure that the

establishment is properly maintained.

e. Closed Circuit Televisions (CCTV) are installed within the premises of Libing Labi Da Loca.

f. Fire extinguishers and Fire exits will only be used during emergencies.

5. Cash Management Policy

a. Cash payments amounting to 10,000 and above shall be paid directly to the Libing Labi Da

Loca main office.

b. Only authorized agents shall receive monthly payments from clients.

c. At the end of the daily business operations, the General and Finance Manager reconciles the

cash collected with the revenue for the day to determine if there is a discrepancy with the

amounts and the cash will be kept in a safety vault.

d. The Cashier will deposit the money to BPI every week.

6. Employee Benefits

Employees of Libing Labi Da Loca shall be provided with benefit packages that they deem

appropriate in accordance with labor requirements. These benefits shall be given to all eligible

full-time employees and shall include the following stated below:

a. To avail a Libing Labi Da Loca Life Plan at 25% less than original price. However, in

case an employee will be terminated voluntarily or involuntarily, monthly payment will

go back to original price from the month of termination.

b. Employee seminars and trainingsto update existing knowledge and skills

c. Christmas Bonuses and reasonable overtime work incentives

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d. Provisions of the Social Security System, Pag-IBIG and PhilHealth which are established

by the Labor Code of the Philippines. As to the cases of Security Officers and

Multimedia Relations Specialists, the agency will shoulder the said provisions.

e. In cases of emergency during working hours, Libing Labi Da Loca will be held

responsible for any costs.

7. Proper Work Attire and Uniform

All employees of Libing Labi Da Loca Funeral Services must promote proper decorum

through compliance with the rules regarding proper attire to be worn during business hours. This

is to show formality when dealing with clients.

a. All employees except Security Officers and Company Drivers are expected to wear

casual attire provided that they incorporate the prescribed Necktie for men and Scarf for

ladies to their daily attire.

Restrictions will be the following:

1. No sleeveless tops or any vulgar clothing will be allowed within the Libing Labi

Da Loca premises at all times.

2. No wearing of Neon clothes.

3. No Cross-dressing.

b. Company drivers are required to wear the prescribed uniform while Security Officers are

required to wear the uniforms advised by their agency.

c. Any violation of the rules regarding proper work attire shall not be tolerated and

violators shall be reprimanded accordingly.

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Figure 3: Company Necktie

Figure 4: Company Scarf

Figure 5: Company Drivers’ and Attendants’ Uniform

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d. Company logo – the official logo of Libing Labi Da Loca Funeral Services which will

appear in all business documents and advertisements. Any unauthorized use of this said

logo will be reported to the authorities.

Figure 6: Company Logo

8. Hours of Work and Public Holidays

a. Working days will be from Monday to Sunday, 24 hours a day.

b. Minimum working hours required per employee is 40 hours a week, or eight hours a day.

c. Working hours for all employees except Security Officers and Attendants will start at 8:00am

to 4:00pm daily from Monday to Friday.

d. The Security Officers and Attendants will have three shifting schedules to be followed; these

are as follows:

Table 1: Shifting Schedule of Drivers

Shift Shifting Schedule

1 8:00am – 4:00pm; 12:00pm – 1:00pm Break

2 4:00pm –12:00am; 9:00pm – 10:00pm Break

3 12:00am – 8:00am; 5:00am – 6:00am Break

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e. Given the nature of the business, public and official holidays under the holiday laws of the

Republic of the Philippines will not be observed.

9. Daily Attendance and Punctuality

a. Frequent absences and tardiness by employees will be subject to disciplinary actions by the

management. As to Security Officers and Multimedia Relations Specialists, they will be

reported to the agency for proper sanctions.

b. In cases wherein an employee was unable to properly comply with the shifting schedule due

to unavoidable circumstances, they are required to inform the Operations Manager.

c. Any personal activities of employees that require leaving the business premises should have

appropriate authorization from the Operations Manager.

10. Salary and Wages Policy

a. Libing Labi Da Loca has 7-working days having 8 hours. Employees shall practice shifting

for the whole week.

Table 2: Shifting Schedule of Funeral Attendants

TIME MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

8:00 AM-4:00 PM ABC AB ABC BC ABC AC ABC

4:00 PM-12:00
DEF DE DEF EF DEF DF DEF
AM

12:00 AM-8:00
GHI GH GHI HI GHI GI GHI
AM

b. The General Manager, Finance Manager and Operations Manager shall receive their salary in

line with the profit and loss ratio stipulated in the articles of partnership.

c. The remaining employees except those outsourced by the entity and the embalmer will

receive minimum wage applied in Region VI (which is now Region XVIII) of ₱298.50/day.
 30

d. Sales Officers are entitled to receive a sales commission of 0.01% from the Life Plan sales.

e. Salaries are subject to deductions due to absences and tardiness.

f. Holiday pays are based on 11 legal holidays and 12 special holidays.

g. Night-time differential is 10% of the gross pay.

h. Employees shall receive a 13th month pay, which is 1/12 of the total basic salary earned for

the year.

i. Overtime (OT) Remuneration - Overtime premium is allotted for work exceeding the

maximum prescribed period. Every employee who is entitled to premium pay is likewise

entitled to the benefit of overtime pay.

1. Overtime on Ordinary Days

2. Number of hours in excess of 8 hours (125% x hourly rate)

3. Overtime on a Rest Day, Special Day or Regular Holiday

4. Number of hours in excess of 8 hours (130% x hourly rate)

Table 3: Monthly Payroll Summary of Employees

Employees Number of Employees Hired Monthly Payment

Administrative Clerk 1 ₱ 9,726.80
Sales Officer 5 7,965.35
Funeral Director 1 8,841.70
Embalmer/Beautician 2 27,300.00
Funeral Attendant 10 7,965.35
Cashier 1 7,965.35
Driver 2 7,965.35

j. Computing pay for work done on:

1. A Special Day (130% x basic pay)

2. A Special Day, which is also a scheduled Rest Day (150% x basic pay)

3. A Regular Holiday (200% x basic pay)

4. A Regular Holiday, which is also a scheduled Rest Day (260% x basic pay)
 31

k. Computing Night Shift Premium where Night Shift is a Regular Work:

1. On Ordinary Day (110% x basic hourly rate)

2. On a Rest Day, Special Day, Regular Holiday (110% of regular hourly rate for Rest

Day, Special Day, Regular Holiday)

l. Computing Overtime on Night Shift:

1. On Ordinary Day (125% x overtime hourly rate)

2. On Rest Day, Special Day or Regular Holiday (125% x overtime hourly rate for Rest

Days, Special Days, Regular Holidays)

m. Computing 13th Month Pay

1. Total basic salary earned for the year exclusive of overtime, holiday, and night shift

differential pay divided by 12.

n. Night-Shift Differential Pay

1. Night-shift employees must be paid a differential of not less than 10% of the regular

wage for each hour of work performed between 10:00p.m. and 6:00a.m.

11. Payment of Wages

Employees will be paid through cash every 15thand last day of the month at Libing Labi

Da Loca Main Office.

12. Leave Policies

a. Sick Leave - employees are entitled to paid medical/sick leave of up to twelve (12) working

days annually with pay starting on second year of service. Such leave will be granted

provided the employee presents a medical certificate from a registered medical practitioner,

covering the period of ailment. Maximum total sick leave is 15 days. Any unutilized sick
 32

leave will not be carried over to the next year and shall not be en-cashed, even upon

termination.

b. Paternity Leave - All legally married male employees are eligible for 7 working days up to

four (4) child birth or miscarriage of legitimate spouse to be availed within sixty (60) days

from deliver / miscarriage. Paternity leave not taken during this period will be forfeited.

c. Maternity Leave – Any female employee who has rendered an aggregate service of at least

six (6) months for the last twelve (12) months is entitled to have a maternity leave as defined

in the Labor Code of the Philippines. The female employee must submit a medical certificate

from a qualified medical practitioner stating the expected date of delivery.The maternity

leave shall be extended without pay on account of illness medically certified to arise out of

the pregnancy, delivery, abortion or miscarriage, which renders the woman unfit for work,

unless she has earned unused leave credits from which such extended leave may be charged.

d. Bereavement - Three (3) days in the event of death of an immediate family member which

includes the employee’s children, parents, grandparents, brother, sister, spouse, and parents-

in-law. Notice must be given to the Operations Manager and time over five (5) days shall be

considered leave without pay.

e. Solo Parent Leave: Seven (7) working days parental leave for solo parents certified by the

DSWD Calamity Leave: Two (2) days leave for employees who were affected by flood, fire

and typhoon (must be supported by a Government proclamation).

f. Magna Carta for Women: 60 calendar days leave. It is given to all female employees who

underwent surgery caused by gynecological disorders and who have rendered at least three

(3) years continuous aggregate employment service prior to surgery.

g. Vacation Leave - Four vacation days, with additional one day vacation every year starting on

2nd year of service and convertible to cash at the end of each year. Maximum total vacation

leave is 10 days annually and is non-cumulative.

 33

13. Retirement Plan

a. The plan, which is 100% funded by the company calculated at one month’s base salary per

year of service based on the employee’s latest basic rate upon normal retirement at age 65,

death or total and permanent disability. Early retirement benefit can be available to 10 years

of service equal to 50% of normal retirement benefit.

14. Voluntary Termination

a. An employee who voluntarily terminates the employment relationship is expected to provide

the General Manager with at least 30 days written notice, regardless of job classification.

b. An employee who voluntarily terminates the employment relationship is expected to work the

entire notice period unless approved by the General Manager.

c. An employee must work the last day of their notice period which cannot be a Holiday or

other approved leave.

15. Grounds for Involuntary Termination

Gross misconduct of any employee shall not be tolerated. Thus, it will warrant a

disciplinary action which could lead to termination by the management. Misconduct shall include

but not limited to:

a. Violation of any law, policy, regulation, or practice, including those related to the Code of

Conduct

b. Unlawful or improper conduct while on work time

c. Conviction of a crime which may call into question the management’s ability to properly

carry out the responsibilities of his/her position

d. Violence or the threat of violence in the workplace

e. Theft or fraud

f. Lying or intentionally withholding information that should be disclosed

 34

g. Insubordination or refusal to perform work

h. Serious negligence, recklessness or intentional wrongdoing

i. Acts of discrimination or retaliation; and/or demonstrated lack of respect for others.

Management Control System

Management Control System is defined as a system which gathers and uses information

to evaluate the performance of different organizational resources and the organization as a whole

in light of the organizational strategies pursued.

Libing Labi Da Loca has chosen Total Quality Management as the Management Control

System technique to be used. Discussed here is on how Libing Labi Da Loca can apply some

Principles of Total Quality Management. The selected three (3) principles are:

i. Customer Satisfaction

The customer and his satisfaction must be the basic focus of Libing Labi Da Loca. The

management must meet the quality of funeral service that the customer expects. Libing Labi Da

Loca must also take note of some other customer perceptions of quality that correlates with

customer’s satisfaction like satisfying quality, delightful quality, indifferent quality and worst

quality.The management must aim at preventing customer dissatisfaction and meet customer’s

expectations.
 35

ii. Employee Involvement

Libing Labi Da Loca must give attention to employee involvement for it is very

important in achieving and sustaining high levels of quality. Every Libing Labi Da Loca

employee must be encouraged and be involved in participating in quality-management by using

control tools and techniques and identifying the areas that need improvement. Training and

motivation of employees must be practiced for these are essential for improving employees’

performance to achieve and sustain high levels of quality.

(iii) Continuous Improvements in Quality

Continuous improvement in service quality is a never ending process. Libing Labi Da

Loca must specify quality attributes of the service very carefully and try its best to achieve these

specifications. The management should focus on identifying and eliminating causes of poor

quality. Best quality is a responsibility of every employee of Libing Labi da Loca. The company

will provide trainings and development to maintain and improve employee competency.
 36

Chapter 3

Technical Aspect

This chapter provides a comprehensive discussion of the technical aspect of the business

encompassing the definition of the services to be offered, the flow of service operations,

equipment and facilities essential in the business, and the layout of the establishment.

Location

Libing Labi Da Loca Funeral Services is located along Alijis Road Barangay Alijis,

Bacolod City. The said location is convenient because it is spacious and advantageous. The

business establishment is situated close to corner of the vast lot near the highway.

The piece of land was purchased from the owner, Jadd Angelo Gonzalez, at a quoted

price of Php 4,000,000 covering an area of 1250 square meters. There are three buildings which

measure 917 square meters collectively. The design was conceptualized and made by Christian

DelaOeste, an engineering student from Technological University of the Philippines (TUP). The

sketch of the floor plan, layout, and interior of such building will be shown in the succeeding

exhibits. It is estimated that the building construction will cost around 8 million.

The main building is a double-storey structure. As shown in the overhead view of the

ground floor (Figure 7), it is composed of the lobby, front desk, offices, chapel, cafeteria,

comfort rooms and visitation rooms. Upon entering, the staircase can be seen from the left and

the cafeteria from the right. The offices behind the reception area are for the general, operations

and finance managers and funeral director. Situated at the right side is stockroom for the coffins.
 37

There are all in all seven visitation rooms - three rooms are located on the first floor and the rest

are on the second floor, each measuring 93.83 square meters by default, as seen in Figure 8. The

walls serve as dividers between the rooms and can be adjusted in case a family is opting for a

bigger space for their wake. Four doors are provided for entrance and exit which are the main

entrance, backdoor going to the morgue, fire exit in between of the offices, and a door

connecting to the ramp installed for the hauling of caskets into the premises of Libing Labi Da

Loca. Comfort rooms separate for each gender are also provided at the ground and second level

of the building. Figure 9 shows two other smaller buildings which are the crematorium and

morgue 99 square meters wide and the personal quarters for the funeral staff covering 46 square

meters.

Figure 7: Top View Interior Perspective of Ground Floor

 38

Figure 8: Top View Interior Perspective of 2nd floor

Figure 9: Exterior Back Perspective

 39

Figure 10: Exterior Front Perspective

Figure 11: Exterior Left Side Perspective

Figure 12: Exterior Right Side Perspective

 40

Service Description

Libing Labi da Loca is a themed funeral business which caters to the funeral needs of a

client covering the embalment up to the interment/cremation of the body. The services offered

are specially tailored for the client wherein they can choose and customize a funeral package that

suits their needs and interests. There are three main products/services offered by Libing Labi da

Loca: (1) Casket/Urn and Funeral Packages, (2) Life Plans, and (3) Additional Services.

Caskets and Urns are ordered from suppliers in Bacolod City. These come in different

colors, designs and materials tailored to the interests of the client. The funeral packages are

inclusive of the embalment of the body, funeral wake, and the actual interment/cremation,

undertaking the necessary paper works and documents for the whole funeral process.

The life plan is basically a premade funeral plan/package that the client has the option to

pay in installments for a period of time.This plan is a pre-need plan which requires the client to

pay a certain amount on an installment basis, and enable them to claim such memorial needs

regardless of cost when the time comes. Life insurances on the other hand, delivers a fixed

amount at the time of client’s death and are under international rules and standards, and

authoritzation of the SEC (Securities and Exchange Commission) in which prices and policies

are regulated and controlled.

The client is given the option to acquire additional services that will be included in the

funeral package. The client may choose any combination for the funeral package among the

following services:
 41

Balloons/Doves. The client has the option to avail of this service. The business shall

contract suppliers of balloons/doves and other needs that the client shall wish to avail.

Cemetery. The client has the option in choosing the cemetery. Libing Labi da Loca shall

transact with the cemetery and process the documents needed regarding the burial.

Coffin. The client has the option of choosing the type of coffin to be used, the style, the

design, and the color. The types of coffins varies on the color and material of the casket, the style

of the lid, the glass, and the design of the engravings on the casket. The business shall contract

suppliers that can provide for quality and exclusive coffins for Libing Labi da Loca.

Documentation. The client has the option to avail of this service. An official

photographer shall be contracted by the business to document the funeral (wake and

burial/cremation ceremony). A video shall be produced and photographs shall be provided for

the family of the deceased after the funeral as a family remembrance.

Embalment and Make up. A mutual assumed contract between Libing Labi da Loca

and the client commences from the moment the client calls the establishment for pick up of the

body. When the client calls, a presumed agreement between the client and the business is created

that the client shall avail at least of the embalment services offered by the business. Further

agreements and contracts on the availment of additional services by the clients shall be

discussed. (The office hotline is available 24 hours for body pick ups.)
 42

Flowers and arrangements.The client has the option to avail of this service. The

business contracts suppliers of flowers specially arranged for funerals.

Food catering. The client has the option to avail of this service. The business contracts

for a catering service that shall provide for the food of the guests for the duration of the wake, or

for a period as agreed with the client.

Gravestones. The client has the option to avail of this service. The business shall

contract suppliers of gravestones/tombstones. The client also has the option regarding the

information and design to be engraved on the tombstone.

Hearse. The client has the option of choosing the color/type of the hearse from the

available units offered that shall be used in the funeral procession.

Mass. The client has the option to avail of this service. A ceremonial mass before the

burial/cremation is to be arranged by the business ensuring that the necessary processes and

documents are taken cared of.

Obituary.The client has the option to avail of this service. The business shall process for

the publishing of the obituary in the local/national newspaper.

 43

Online Wake Vigil.The client has the option to avail of this service. An online real-time

viewing of the vigil is streamed on the business’ website for relatives of the deceased who wish

to view the funeral wake.

Venue of the Wake. The client has the option whether the wake shall be held in the

establishment’s chapel or the residence of the family of the deceased. Preparations and set ups

shall be taken cared of by the Libing Labi da Loca staff.

The aforementioned services are available for both Spot In Cash or Prepaid Life Plans.
 44

Service Operations (24-hour Operations)

Figure 13: Daily Normal Business Operations Flowchart

Pre-opening Phase

The Pre-opening Phase refers to the business hours in excess of the normal business

operating hours of 8 hours. It encompasses the shifts from 4:00pm - 8:00am of the next day

before the actual opening and office hours.

Because of the nature of the business, the establishment is technically open for visitors 24

hours everyday for the vigil of the remains of their loved one. The security guard and the
 45

attendants of the third shift are in charge of opening and keeping of the establishment prior to the

normal operating hours of the business. The security guard is in charge of the General Visitors

Log Book during the night and graveyard shifts.

Any concerns regarding the funeral activities and operations, errands, or services ordered

by the client/s during the night vigil shall be addressed by the attendants on that shift. However,

the attendants or the security guard is not allowed to accept any payments due from the client.

Only the cashier is in charge and allowed for the cash receipts and disbursements. In cases that

there shall be orders of services during the night and graveyard shifts when their is no cashier on

duty, the attendants shall take note of the order/s (recorded in a Customers Log Book) of the

client/s and offer the services ordered if possible, with the payment accrued for the next day. For

services ordered that cannot be immediately addressed to by the attendants during the shift and

that will need due process through the administrative office, the attendants shall likewise take

note of the order in the Customers Log Book and report to the Funeral Director about the said

order the next day before the next shift. The Funeral Director is reponsible for confirming the

order to the client and seeing to it that it is taken cared of. These orders shall be accommodated

by the attendants of the next shift. The attendants on the shift prior to the opening of the

administrative office shall ensure the keeping and maintenance of the premises.

Opening phase

The opening phase pertains to the start of the normal operating hours of the business

which is from 8:00 AM to 5:00 PM. As visitors enter Libing Labi Da Loca, the security guard in

duty shall similarly get the name of the clients in the General Visitors Log Book. Customers who

would like to inquire about the company’s services are being addressed to by the administrative
 46

clerk. The clerk is the one who grants deals with the client, and makes sure that they are filled

with all the information that they need (records are kept in the Customer’s Log Book). The

cashier is the only personnel in-charge of accepting payments. Payments shall therefore be only

accepted during administrative hours. The cashier keeps track of the requests ordered by the

clients not made during the operating period. Finally, the business operations are not on a routine

basis. The just-in-time operationsare considered which includesthe embalming, cremation, wake

vigils, masses, burial and other funeral services which may be part of the opening phase at any

period of time.

Pre-closing phase

Libing Labi Da Loca starts its pre-closing activities by 4:00 PM every weekday, an hour

before officially concluding the business activities for the day. However, this policy doesn’t

apply to every business operations because of wake vigils that need a 24-hour facility, masses,

and of course, the scheduled funeral or burial service.

For administrative activities, revenue is counted by the cashier. It is also the cashier’s

task to have an inventory count and report daily sales to the financial manager. The

administrative clerk counter checks the counted revenue and checks if this is aligned with the

amount shown in computer transactions. Cash is then placed in the cash box. Petty cash of P5000

shall be maintained by the business, and the excess is deposited to the bank at the end of the

week.

The company attendants, aside from assisting,will take charge of the general cleaning and

maintenance activities in the building. The embalmer conducts a thorough sterilization and

cleaning of company equipment and tools used for the day. Wastes are properly segregated and
 47

being picked up the city garbage truck. Wastes from embalming however are disposed properly

by the embalmer according to the policies in NFDA Funeral Home medical waste protocol.The

significant laws that the business purports to follow are Solid Waste Management Act (RA 9003)

and Chapter XXI – “Disposal of Dead Persons” of the Code on Sanitation of the Philippines

(P.D. 856).

The security guards roam around the company building in order to check areas that are

supposed to be vacated by guests or employees.

The managers for finance and operations prepare a summary report at the end of the day

of all transactions and services provided to clients. The general manager then consolidates the

information into a single report and oversees the overall performance of the business for the day.

Closing Phase

At closing, the cashier makes sure that petty cash is safely loaded into a vault for security.

All tools and equipment are being stacked in an organized manner. It is the job of the operations

manager to check that there are no existing problems with the company’s facility. The finance

manager on the other hand makes sure that all accounting information is accurate for the day,

and all transactions are being recorded properly and without error. Offices and the facilities for

embalming and cremation are being locked up at closing time. This phase doesn’t define the end

of operations for the day. Funeral attendants are tasked to stay with the family during wake vigils

for assistance.

Death Care Services

Figure 14 presents the flow of the operations from the commencement of the service

intiated by the call from the client for body pick-up, up to the procurement of a funeral package.
 48

Figure 14: Service Contract Procurement and Preparatory Operations Flowchart

The hotline of Libing Labi Da Loca is open 24 hours and the security guard is the one in-

charge of taking the calls from customers from the time the administrative clerk’s shift ends. If a

customer or a hospital in vehalf of the client/s, contacts the Libing Labi Da Loca for the pick-up

of the body, the clerk, or security will ask for details. A sales agent is also assigned to standby in
 49

specific hospitals especially in periods where demand is low, in order to acquire customers.

Libing Labi Da Loca will pick-up the body of the deceased either in hospital or in their residence

provided that the family can present at least a temporary death certificate or any document that

proves that the death was properly proclaimed by a medical professional. The security guard

takes note of the exact location of the customer’s residence or hospital where the deceased is

located and forwards the information to the administrative clerk the following day. The funeral

staff is in-charge of bringing the dead body from its location to Libing Labi Da Loca morgue.

Upon delivery of the remains to the morgue, the body is provided with atag which contains the

person’s name and address for identification purposes. In a case to case basis, the client is given

an option to have the company not perform an embalming process before funeral service, burial

or cremation because of varying beliefs or customs on treating deceased persons. If embalmment

is confirmed, the Funeral director ensures the embalming process for the remains. The embalmer

prepares the tools, equipment and chemicals to be used in the embalming process. The

administrative clerk will discuss with the client the services offered by the business, give advice

as to what service to choose and the cost of such service or package.

The staff shall also confirm the information regarding the cause of death of the person

before the confirmation of the job order. If the death of the person is caused by a contagious

disease, the administrative clerk will inform the client that the only appropriate service is

cremation. On the other hand, if the death of the person is caused by other reasons other than

contagious disease, the client may choose to avail the casket burial.
 50

Funeral Wake

Figure 15 presents the flow of operations of the business during a funeral wake.

Figure 15: Funeral Wake Operations Flowchart

 51

After the contract has been signed and the payment has been settled for the funeral

service, the funeral staff then receives the previously ordered funeral needs and prepares the

remains for the wake. The funeral staff sets up the chapel/residence (depending on the

agreement) for the vigil. Additional funeral needs by the family of the deceased may also be

ordered with the corresponding settlement of payment. The administrative clerk processes the

documents regarding the funeral, and the necessary permits and licenses for the mass,

procession, and burial/cremation.

At times where demand is high (unpredicted seasons where death rate is high) and

company facilities for wake, embalming and cremation are fully booked, Libing Labi Da Loca

shall outsource venues for cremation, external embalmers as well as equipment and materials for

cremation in order to cater the needs of its clients in whatever strategies necessary to satisfy

them. However, if the company sees that it cannot anymore meet the demands due to the

increasing number of clients, it will have to refer them to another funeral service company or on

specific contract agreements.

Coffin Burial and Cremation

Figure 16 presents the flow of business operations regarding the burial/cremation

processes. The staff shall also confirm the information regarding the cause of death of the person

before the confirmation of the job order. If the death of the person is caused by a contagious

disease, the administrative staff will inform the client that the only appropriate service is

cremation. On the other hand, if the death of the person is caused by other reasons other than

contagious disease, the client may choose to avail the casket burial.
 52

Figure 16: Coffin Burial/Cremation Operations Flowchart

 53

Coffin Burial

Libing Labi Da Loca’s administrative clerk orders the coffin from Metropolitan Casket

Store and other funeral needs stipulated in the package availed by the client from with the details

needed. The embalmer starts with the embalming process not later than 12 hours after delivery of

the body to the morgue by injecting formalin and water properly. After embalming, the body is

placed in the coffin which is tightly sealed and prepared to be delivered to the place where the

wake is set up. After the wake, the remains are transported to the church and cemetery for the

funeral ceremony.

Table 4: Casket Packages

Bradford (Solid White) Php 96, 600 Belmont Php 108, 740

LaSalle Php 124, 200 Bradford (Champagne) Php 136, 500

 54

Richmond Php 144, 240 Devotion Php 171, 840

Sterling Php 208, 400 Magistrate Php 290, 000

Cremation

Libing Labi Da Loca’s administrative clerk orders funeral needs stipulated in the package

availed by the client with the details needed. The clerk orders the coffins from Metropolitan

Casket Store, in case the client desires to have a wake before cremation, and urns are ordered

from Lazo Marble Works Bacolod, personalized according to what the client wants. The

embalmer starts with the embalming process not later than 12 hours after delivery of the body to

the morgue by injecting formalin and water properly. After embalming, the body is placed in the

coffin which is tightly sealed and prepared to be delivered to the place where the wake (if

availed) is set up. After the wake, the remains are transported to the church/chapel and

crematorium for the funeral ceremony and cremation. Otherwise, after embalming, the remains
 55

are placed in an urn. The embalmer is the one to operate the incinerator that cremates the body

(which takes about 1-3 hours). The coffin used for the wake and the urn shall be taken cared of

with respect to the agreement of the family and Libing Labi Da Loca.

Table 5: Urn Packages

Urna Uno Php 3, 600 Urna Dos Php 5, 600

Funeral Package

Every package is carefully structured basing on the priorities of the clients. These

packages are sold outright in a lump-sum payment. Clients will have to choose from either a

casket package or urn package to go with their chosen funeral package.

Table 6: Funeral Packages

PACKAGES REGULAR RATE (PHP)

Cielo Package Php 30,591.00
Viajar Package Php 36,591.00
Felicidad Package Php 77,991.00
Saber Package Php 86,341.00
Infinito Package Php 110,591.00
Sincero Package Php 117,841.00
Bendicion Package Php 122,241.00
Eternidad Package Php 130,541.00
 56

Life Plan

Figure 17 presents the flow of business operations in the procurement of the funeral

service contract and preparatory phase of the funeral. It is initiated by the customer’s inquiry

about the plan and expectantly the purchase of the plan.

Figure 17: Procurement of Life Plan Flowchart

 57

Libing Labi Da Loca offers memorial packages to those people who want to arrange their

interment plans. The life plans are defined as memorial pre-need plans, not a life insurance plan

which has a fix amount of return. The company promises to provide death care services to its life

plan holders regardless of the risk rising costs. Cremation, coffin burial, themes and other

services comprises the life plan. Before obtaining the life plan, the applicants are required to

obtain a medical certificate from a medical doctor certifying that they are not currently ill or in a

nursing home. The package offered is completely transferable, assignable, and available at easy

installment basis. In order to be eligible to obtain the plan, the client must submit the following

documents: (1) Application form, (2) Income proof, (3) Address proof, (4) Bank statements, (5)

Employment letter from the employer, and (6) copies of recent pay slips (at least 3 months

before the date of application). After compiling all the documents needed, the client can already

sign the contract which stipulates the terms and conditions agreed upon by both parties.

The plan shall consist of the memorial package, the installment price of the package, the

terms and modes of payment, the duration of the payment, and the services and benefits

complementary to the availed life plan.

Table 7: Life Plan: Casket Packages

PACKAGES REGULAR RATE (PhP)

Amor Package Php 78,049.23
Alegria Package Php 87,857.90
Paz Package Php 100,349.00
Paciencia Package Php 110,286.95
Benignidad package Php 116,540.58
Bondad package Php 138,840.36
Fidelidad Package Php 168,379.49
Mandesumbre package Php 234,309.27
 58

Table 8: Life Plan: Urns Packages

PACKAGES REGULAR RATE (Php)

Querubines Package Php 2,908.67
Seraphines Package Php 4,524.59

Table 9: Service Equipment

EQUIPMENT DESCRIPTION

This cremation equipment is designed for burning

corpse into ashes. It has a primary chamber opening of 52”
wide x 39” high, this model has a single-load capacity of
1,200 pounds. Its average cycle of 65-75 minutes results in
up to 10 cycles in 12 hours. This model can fully operate over
a 24-hour period.

HUMAN CREMATOR (INCINERATOR)

This processor is an advanced pulverization system

that powders the remains in less than 30 seconds. The
pulverization is accomplished by a rapidly turning 1/4 – inch
thick stainless steel blade driven by a 1.5 HP motor. A dust
tight seal is provided on the drum lid to prevent any leakage.
This will be used to make the cremated remains fit in urns for
neat safe-keeping.

CREMATED REMAINS PROCESSOR

 59

This equipment is designed to store either two

oversized bodies (350 pounds or more), four regular sized
bodies, or a combination of both. A subfreezing temperature
is maintained to preserve the human corpse while waiting for
the burial process to commence.

CREMATORY COOLER

This equipment is designed to hold the human body

during the embalming process. It is made from 18 – gauge
stainless steel and is 78 inches in length by 24 inches in width
by 33 inches in depth.

BODY TRAY

This machine is designed for sanitization and

preservation of the body during the embalming process.

EMBALMING MACHINE

This air conditioning unit will be used to alter humidity

and temperature. It aims to improve thermal comfort and
indoor air quality. It has a cooling capacity of 9,500 kJ/hr with
WALL – MOUNTED AIR CONDITIONER an Energy Efficiency Ratio (EER): 9.79 Btu/hW.
 60

This computer will be used in all business transactions

and for saving necessary client information and business
records.

DESKTOP COMPUTER

This will be used to transport the client/plan holder

from the place of death to the funeral parlor. This will also be
used to bring the client to his\her final resting place.

FUNERAL CAR

This printer will be used to produce hard copies of

letters, documents and business contracts for documentation
purposes.

PRINTER WITH COPIER AND SCANNER

This is designed to track employee’s attendance and

their number of hours rendered in a day for payroll
computation purposes.

BIOMETRIC FINGERPRINT SCANNER

This CCTV camera will be used for monitoring all the

movements in the establishment. This will also serve as the
basis for investigating any malicious activities in the
establishment.

SECURITY CAMERA
 61

This equipment is designed for transporting the casket.

This will also function as a stabilizer of casket during the
wake and funeral mass.

CASKET LIFT SUPPORT/CHURCH TRUCK

This is designed to give appropriate funeral lighting

during wakes and mass.

TORCHIERE LAMP

This is designed to be placed inside the chapel where

necrological services are conducted. It will also provide a
solemn ambiance for those family members as they pray for
their loved ones.

CHAPEL/DEVOTIONAL SET

This camera together with the CCTVs will aid the

multimedia relations for uploading live stream videos in the
internet for those plan holders who have relatives abroad.

DIGITAL SINGLE-LENS REFLEX CAMERA

This will be used in storing important files and business

documents for safekeeping purposes.

FILING CABINET
 62

Gantt Chart

The Gantt Chart presents the schedule planned for the establishment of the business from the preparation of the business plan

up to the grand opening of Libing Labi da Loca as a themed funeral service business in Bacolod City.

Figure 18: Project Schedule

 63

Chapter 4

MARKETING ASPECT

This chapter takes into consideration the viability of the business in its marketing feature.

It consists of the business description, demand and supply analyses, competitor’s profile,

demand supply interaction, 7P’s, marketing analysis including SWOT, and target market

positioning.

Business Description

Death Care Industry is one of the successful businesses existing here in Bacolod. Death

Care companies are those firms that provide services related to death: funerals, cremation or

burial, and memorials. Moreover, businesses like funeral homes, crematorium, cemeteries, and

businesses that offers life plan are also included in this kind of industry. Funerals are among the

most expensive purchases made by consumers.

Businesses offering certain services mentioned above are available to all people which

brought the idea of setting up Libing Labi da Loca: Death Care Services here in Bacolod City

that offers funeral services. Marketing is used to promote a certain company to consumer

audiences. Libing Labi da Loca, being one of the initiators of death care industry, lays its success

to an effective way of marketing. It is a must that the firm will perform various ways to promote

its advocacy regarding the rights of the people and of course, to increase the value of the firm.
 64

Demand Analysis

The 101 respondents were taken from a group of young professionals and those who are

from the so-called “Baby Boomers”. The survey was given both personally and online. As for

the sample, the researchers based it on the current market share of the competitors and assumed

that it also represents the population. Libing Labi da Loca’s annual average clients of 247 for the

life plan is composed of 93% or 238 regular clients and the rest of the 7% or 18 clients are the

senior citizens. On the other hand, the 256 clients for the packages and others is also comprised

of the same percentage with 102 clients who are regular and 8 clients who are senior citizens.

Libing Labi da Loca believes that death care services should be given value. So, in order

for the business to properly serve its clients, it should know how willing potential clients are to

engage in this business. Moreover, the business conducted a survey to know how this type of

venture is positioned in terms of clients’ income and interest.

In Figure 19, 21% or 21 of the respondents are currently enrolled in a life plan while 79%

or 81 of the respondents are not. The business views this result positively since it shows that of

all the respondents, 79% are potential clients.

 65

0% Yes
21%

No
79%

Figure 19: No. of respondents currently availing a life plan

The things and activities that respondents wanted to include in the life plan – if they

choose to avail are presented below through Figure 20. Ninety-eight or almost all of the

respondents, wanted to include a coffin in their life plan. Next is the Paper Works where 84 of

them wanted to avail of this offer. Libing Labi da Loca offers to take over the processing of any

documents needed upon the death of plan holders.

 66

120

100

80

60

40

20

Figure 20: Benefits respondents want to include in the plan

Figure 21 presents ranges of values that respondents are willing to spend for a life plan.

Majority of the sample emphasized that they choose cheaper costs of investment particularly

below Php60000. The result indicates that potential customers prefer lesser values and are more

conservative when it comes to investing in a life plan.

 67

60

50

40

30

20

10

0
Below Php 60 Php 60 000 - Php 80 000 - Php 90 000 - Above Php
000 Php 70 000 Php 90 000 Php 100 000 100 000 but
less than 200
000

Figure 21: Total amount respondents are willing to spend for the Life Plan

In Figure 22 below, it shows the monthly payments respondents are willing to pay.

According to the data we acquired, 60 of them are willing to pay only below Php 2000 as

monthly due. 20 of them are willing to pay Php 2000 to Php 3000, 7 of them are willing to pay

Php 3000 to Php 4000 monthly, and 5 of them are willing to pay any amount higher than Php

7000.
 68

70

60

50

40

30

20

10

0
Below Php Php 2000 - Php 3000 - Php 4000 - Php 5000 - Php 6000 - Above
2000 Php 3000 Php 4000 5000 6000 7000 7000

Figure 22: Monthly payments respondents are willing to pay for the Life Plan

Libing Labi da Loca values the right of plan-holders to choose their desired way of

interment. So, survey results show that 81% of the respondents prefer burial over cremation –

having only 19% of the total cremation.

Cremation
0% 19%

Burial
81%

Figure 23: Preferred mode of Interment by Respondents

 69

The following figure reflects the percentage of respondents on responses whether they

desire to engage or not engage in the themed funeral business. A huge number of respondents

answered yes (86%), which means that this type of business venture would capture an essential

quantity of customers interested in the new concept.

No
11% 0%

Yes
89%
Figure 24: Respondents’ willingness to engage in business

Since Libing Labi da Loca is eyeing on implementing unique ways of caring for the dead,

we asked our respondents what themes they would like to avail of. According to the data shown

on Figure 25, 50% or half of the respondents wanted to have a styled theme while 49% wanted a

color theme. 1% or 2 of the respondents wanted a King’s burial and a Happy Motiff to be on the

list.
 70

Others
1%
0%
0%

Color
Style 49%
50%

Figure 25: Types of Themes respondents are willing to avail

Supply Analysis

In addition to the gathered information about the market and its demand, which is

partially based on the number of professionals willing to avail the services as seen in survey

results, Libing Labi da Loca wants to know how it will supply the services offered is based on

the business’ capacity to provide the demand of the market.

Discussed in this supply analysis is on how Libing Labi da Loca will supply the top three

(3) services demanded by the professionals based on the survey.

Ninety-eight percent or 99 out of 101 respondents have chosen embalming as one of the

services they prefer to be included in the life plan. 97% or 98 out of 101 participants demanded

for coffin. The venue of wake ranked third (3) for being selected by 85 out of 101 respondents.
 71

83% or 84 respondents selected paper works. Ranked 5th is the preparation of cemetery selected

by 79 out of 101 participants.

99 98
85 84 79

Embalming Cofin Venue of Wake Paper Works Cemetery

Figure 26: Top Five (5) Services Demanded

The data showed that 98% or 99 out of 101 respondents selected embalming as preferred

service to be included in the life plan. Embalming is an important process for it is automatically

included in Libing Labi da Loca plan packages. Libing Labi da Loca have two (2) qualified

embalmer assigned to perform the whole process of embalming. The entity also invested ₱96,

500 to acquire embalming machine which is designed for sanitization and preservation of the

body during the embalming process.

It takes three (3) hours to complete an entire process of embalming. And since Libing

Labi da Loca operates twenty four (24) hours a day with two (2) embalmers, the expected
 72

number of clients for embalming is four (4) per day. Four (4) is the maximum number of clients

per day to whom Libing Labi da Loca can supply the said service.

No
1%

Yes
99%

Figure 27: Percentage of Respondents who chose Embalming

Ninety-seven percent or 98 out of 101 participants demanded for coffin. The data showed

how important supplying a coffin is for the business. Most of the life plan categories of Libing

Labi da Loca includes coffin in it. This means that the supply of coffin plays a very vital role in

the business. For this, Libing Labi da Loca ensures that the clients will have coffins of best

quality.

The supply of coffins will be provided by Kenlou Trading. It was chosen because Libing

Labi da Loca believes that Kenlou Trading can offer and deliver well-made and best quality

coffins. Kenlou Trading is located at KaliboAklan. The location of it permits an easy access for

Libing Labi Da Loca.

 73

The needed supply of coffin per day is estimated as proportional to the estimated supply

of embalming per day. So it is expected that Libing Labi da Loca will have to supply 4 coffins a

day.

No
3%0%

Yes
97%

Figure 28: Percentage of Respondents who chose Coffin

Venue of wake ranked third (3) for being selected by85% or 85 out of 101

respondents. Venue of wake is included in most life plan categories of Libing Labi Da Loca. The

entity invested a 1250 square meters wide building located along Alijis Road, Barangay Alijis,

Bacolod City.

More than 50% of Libing Labi da Loca building is utilized to supply the demand for

the venue of wake. Seven (7) rooms in total, three (3) rooms located in the ground floor and

another four (4) rooms located in the second floor. Libing Labi da Loca can accommodate one
 74

(1) client per room. This indicates that Libing Labi da Loca can supply the need for venue of

wake of seven (7) clients for an average of three (3) days.

0% 0%
No
15%

Yes
85%

Figure 29: Percentage of Respondents that Have Chosen Venue of Wake

Competitor’s Profile

 St. Peter Chapels (Life Plans)

St. Peter Chapels also known as St. Peter Life Plans is one of leading companies in the

field of death care services here in the Philippines. It has been providing professional and

traditional memorial services to the Filipino public for over 30 years. With over 200 branches

nationwide and large market share in funeral industry, the company ranks 177th among top
 75

companies here in the Philippines. When it comes to their services, St. Peter offers embalming,

cremation and other value added services that falls on the chosen Life Plans of their clients.

 Acropolis Gardens

Acropolis Gardens is a newly evolved concept when it comes to memorialization and

death care services. The business presents an exceptional integrated approach to memorialization

set within landscaped gardens wherein clustered chapels display Greek-inspired

designs. Adjoining the Acropolis Gardens is the expansive landscape of Rose Lawns memorial

Park, also owned by Teresa Development Corporation. The business has several service

packages including preservation procedure, cremation and processing of necessary permits and

documents required.

 Rolling Hills Memorial Chapels

Rolling Hills is a business that offers funeral services to Bacolodnons since year 1987.

Located at 27th Lacson St. Mandalagan, Bacolod City, the company is owned by the Monico

Puentevella and his family. The story started out of Monico and Patching Alunan Puentevella’s

propensity to serve the community with the acquisition of the Rolling Hills Memorial Park

(located at Brgy. Estefania, Bacolod City, Neg. Occ. Philippines). In the year 1994, it expanded
 76

its business to Cebu where it developed as the largest, the newest, and the most modern of its

class.

 Alisbo Memorial Chapels

Alisbo Memorial Chapels is located at corner 22nd lacson street, Bacolod 6100 and

provides Funeral and Chapels services to the public. The business exists for years and it is

famous for catering funeral arrangements in affordable prices favored to its customers. It

possesses facilities for embalmment, and venues for wake.

Demand Supply Interaction

Bacolod City’s population grows every year and along with this, death is really inevitable

which makes it necessary for people to avail a life plan in preparation for it. This only shows that

the death care industry, like that of Libing Labi da Loca, can actually thrive through its

prospective clients, most especially the professionals which are the target market of Libing Labi

Da Loca.
 77

The demand analysis studied how well the respondents reacted to the funeral services

business, and their degree of willingness in availing of it. The supply analysis looked into the

current ability of the death care industry to provide the service to the market.

Based on the results of the survey with the assumption that the sample represents the

population, it is determined that only 21% of the respondents currently avail of a life plan; a

much smaller percentage compared to that of those who doesn’t have a life plan which is 79%.

Also, more than half of the 101 respondents are willing to pay a monthly payment of below PhP

2000 which means that most of them desire to have a much lower rate of plan which Libing Labi

da Loca can offer.

With Libing Labi Da Loca’s building having seven (7) visitation rooms, the business can

accommodate 7 clients in an average of 3 days. So, operating for 24 hours a day and 7 days a

week, it is estimated that it can cover a maximum of 70 clients per month.

With marketing, maintenance of quality and a much convenient service of a life plan

acquisition the researchers anticipate an increase in the number of persons availing a life plan per

year.

7P’s in Marketing

Product/Service

The funeral service industry may not be generally viewed as a pleasant light but the

products and service that the business provides are necessary. Survey shows that 89% is

interested in engaging in a themed funeral venture which dictates that the services being offered
 78

are suitable and relevant for the market today. The company aims to provide quality service to

always meet customer needs and give value to them by enabling them to express their concern

for life.

The services offered by Libing Labi da Loca cater to the funeral needs of clients,

specially customed to their interest, covering the embalment up to the interment/cremation of the

body. There are three main death care services offered: (1) Burial, (2) Cremation and (3) Life

Plans.

Coffin burial service is offered in eight packages. The caskets are classified according to

materials, designs and colors. Packages include embalment and funeral cosmetics, delivery to

cemetery, interment and vary in other additional services.

Crematorials operate through the company embalmer/s, who is in charge of the process.

The body shall be placed inside the crematorium. Operations are done only by the embalmer and

an assitant/s from the funeral staff. Clients are given the freedom to choose a design for the

customized urn of their loved one’s ashes. Cremation services are divided into two packages: (1)

Viewing before Cremation and (2) Cremation before viewing, which may be paid by the client in

full or in periods.

Other services and products offered by Libing Labi da Loca include make up, venue of

wake, mass, online wake vigil, food catering, flowers and arrangement, documention, balloons,

doves, gravestones, cemetery and obituary.

 79

Lastly, Libing Labi da Loca offers life plans. The different types of life plan offered by

the entity Life Plan: Casket, Life Plan: Urn, Life Plan: Funeral and Life Plan: Other Services.

The plan includes the memorial package and other additional services and benefits

complementary to the availed life plan.

Price

Since Libing Labi da Loca is involved in one of the most competitive industries in the

business world, the company aims to keep it’s prices customer-valued and reasonable. The

business compares its service prices with other funeral homes, specifically in Bacolod City.

According to the results of the survey, 51.49% or majority of the repondents choose to spend

below P60000 on funeral packages, which shows that most customers would want to achieve the

cheapest price possible. Libing Labi da Loca aims to provide quality and creatively efficient

death care services to its customers and their families in order to earn their trust and value them

for being our partners. This is achieved through seeting the company’s prices suitable, customer-

oriented and deserving of the levelof services it offers.

Casket burial prices differ in terms of the type or design of casket and additional

memorial services. Cremation options on the other hand differ with clients’ choice of viewing

“before” or “after” the process. These prices may be paid by the clients in different periodic

payments or in full contract price. Finally, Life Plans are rated by the different aspects of the

packages the client wishes to acquire.

 80

With the stated prices, the company will ensure that all customer needs are being

provided and all concerns being addressed to as to pricing. Customers are assured to be given

quality services that the costs meet up to.

Place

Libing Labi Da LocaDeath Care Services is situated along Alijis Road, Barangay Alijis,

Bacolod City. The location provides an advantage with regards to space and convenience for the

office building and facilities. The place is accessible to the public and the establishment is

situated along the highway which makes it easier for customers to drop by. The distance from

public vicinities provides a peaceful environment for people. Customers are assured that no

danger or hazard shall be inflicted to them in all aspects. Libing Labi da Loca will be kept well

ventilated, clean and orderly and secured by the management at all times.

Promotion

The company sales officer shall be in charge of all marketing strategies and promotions.

The business shall begin with the most basic promotional tool, word-of-mouth marketing. This is

to launch projected good customer relationships and raise connections within the locality. Libing

Labi da Loca will use direct selling since this kind of business belongs to the industry that needs

this kind of marketing strategy.Other promotional methods shall also be established, but

achieved with minimal costs in as much as possible. A company website laid out by the
 81

multimedia relations officer will capture the market in the internet. This will allow the company

to save from incurring huge cost on advertising.

To have a cutting-edge against competitors, a marketing strategy is assigned where in

there will be sales agents resent in the hospitals waiting for possiblewalk in clients and the first

three (3) clients for each day will be availing a five (5) percent discount for embalming.

People

As a business in the service industry, manpower is deemed as one of the major asset that

the company holds. Human resource is a key factor in achieving the business goals. They are the

ones that directly relate to the customers and they could make or break the business.

Libing Labi da Loca will ensure that the employees and staff of the funeral are competent

having apt knowledge, skills and attitude for the work. Trainings and development shall be

conducted to guarantee the customers that the employees and staff of Libing Labi da Loca are

adept in their fields for the customers’ satisfaction.

Process

Libing Labi da Loca as a funeral business offers two main service processes: burial and

crematorial. The services are composed of essentially the same processes except for the mode of

interment. As the processes involved in the service are mainly customer-related, it is of utmost
 82

importance to inculcate good customer relations and deliver the best quality services in the

industry.

Upon entering the premises, customers shall be warmly received by the Administrsative

Clerk in the reception area and be assisted through his/her queries. The Administrative Clerk

shall secure the contract agreement between the customer and the business. The customer shall

be guided thoroughly and advised by the Administrative Clerk through the formulation of the

contract. The Administrative function then coordinates with the Funeral Staff with regards to the

needs of the customer. The Funeral staff sees to it that all the needs of the customers inclusive of

the package are addressed to, from the embalming of the remains up to the burial/cremation

ensuring the satisfaction of the customer to the services delivered.

Physical Evidence

As a service company, it is of utmost concern to provide quality service to the customers

in order for the business to gain popularity and loyalty from the market. Libing Labi da Loca

shall ensure that the operations are customer-centered and employees maintain good customer

relations in every transaction of every customer. By maintaining good quality service and

customer relations, by word of mouth, the business will establish a good name and be evident in

the funeral industry.

One of the important parts of a business is the company logo. The company logo of

Libing Labi da Loca defines its goals and aspirations. The sunrise represents new life and new
 83

beginning. They rays will make the clients realize that death comes with many oppurtunities and

the dove represents an ultimate promise of freedom.

Market Analysis

Libing Labi da Loca: Death Care Services is the first of its kind to offer unique amenities

through themed burials, cremation and other funeral products and services in Bacolod. In order

to deliver this quality service, the company needs to determine its target market of potential

customers, understand their interests, and measure their level of acceptability of the new concept.

The business must recognize its strengths, weaknesses, opportunities and threats in order to

create value through maintaining good customer relationships and identifying appropriate actions

to be taken by management.

In line with this goal, a survey questionnaire has been established by the proponents and a

survey was conducted both manually and a few online. A total of 101 respondents were

conveniently chosen as part of the sample due to time constraint, therefore representing the

company’s target market population. The respondents were 18 years old and above (those

capable of acquiring a job and spending their money on investments), mostly young

professionals in their respective fields of work.

Based on the survey, majority of the respondents were at the age of 18 to 25 years old,

having 53% of the total number of respondents as shown on the figure below. The remaining

percentages came from ages 26 to 30 (27%), 31 to 35 (13%) and above 36 years old (7%).
 84

36 & above
7%

31-35
13%

18-25
53%
26-30
27%

Figure 30: Composition of Respondents Based on Age (in years) Group

Among these respondents, regardless of their ages, 49 are male (33%) and 101 are female

(67%).

M
44%

F
56%

Figure 31: Composition of Respondents Based on Sex

 85

Figure 31 shows the different occupations of the respondents. Call center agents represent

a large percentage; which is 40%, of the total number of respondents. Next are the teachers

representing 19%, followed by government employees and clerks both representing 9%. 7% are

PNP officers and 7% are Nurses. 5% are Engineers, and Librarians representing the smallest

percentage of 4%. The business is eyeing on potential clients that have stable income since

availing of our services require monthly cash outs.

Government
Employee Teacher
Nurse 9% 19%
7%

PNP
7%

Librarian
4%

Clerk
9%

Engineer
5% Call Center
Agent
40%
Figure 32: Occupation of Respondents

Figure 32 presents the civil status of the respondents. It shows that 79% or 80 of them are

single. 20% or 20 of them are already married and the remaining 1% represents the only widow

respondent.
 86

Widow
Married 1%
0%
0%
20%

Single
79%

Figure 33: Civil Status of Respondents

Figure 33 shows the monthly income of each respondent. Out of the 101 respondents; 64

or 63% of them get a salary below Php 20 000, 26 or 26% of them get Php 20 000 to 30 000, 7 or

7% of them get Php 30 000 to 40 000, 2 or 2% of them get Php 40 000 to 50 000, and lastly, 2 or

2% of them get Php 50 000 and above.

70

60

50

40

30

20

10

0
Below Php 20 Php 20 000 - Php 30 000 - Php 40 000 - 50 Php 50 000 and
000 Php 30 000 Php 40 000 000 above
Figure 34: Monthly Income of Respondents
 87

The business takes into consideration other monthly payments clients are also availing (see

Figure 34 below). So, according to the chart presented below,

45
40
35
30
25
20
15
10
5
0

Figure 35: Other plans respondents are currently availing aside from a life plan

SWOT Analysis

STRENGTHS

Creativity - We plan to draw more customers by being the first death care services

business to offer the themed burial and the whole design of the facility.

High Profit Margin - By engaging in this kind of business, the monthly remittance of

our plan holders will be invested in financial instruments that will yield high returns in the form

of capital gains and dividends.

 88

Additional Services – By offering other services other than the burial, cremation, and

life plan, it is an advantage of the firm over its competitors because these additional services will

attract more customers and will serve as other source of income.

Expensive Costs – It is a guarantee to the customers that the firm will provide a quality

service equitable to its cost.

WEAKNESSES

Cost Structure - The firm will incur high costs during its operation due to the nature of

the business

High Price - Businesses like Libing Labi da Loca are among of those very expensive

possible purchases of consumers.

OPPORTUNITIES

Expansion - If the performance of the business is excellent, it will leave a great

opportunity for the business to expand

Higher Profitability - The products and services of type of venture are necessary for

people. Demand will always be present. There is great profit with increasing demand and proper

costing.

New and unique services - Once the business’ name and services became recognized

and have already a numerous number of customers, it has the chance that the business will offer

a new unique and creative kind of service.

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THREATS

Sensitive Subject - Knowing that the Filipino public is used in conducting funerals in a

traditional way, our creative funeral approach might be misunderstood by some people.

Competitive Market - Since there are businesses that offer traditional death care

services, it would be challenging for integrating a modern way of conducting memorial services.

Government Regulations -There might be changes in the rules and regulations when it

comes to death care services especially when it relates in health, sanitation, and environmental

concerns.

Target Market Positioning

LibingLabi Da Loca: Death Care Services aims to offer unique and quality services to the

public through its creative themed funeral features. The business positions itself as a reliable

partner to their clients, providing them with services personalized to their liking and satisfaction.

The target market of Libing Labi Da Loca funeral services are the following:

Millennials – These are young people belonging to the early twenties to thirties bracket

who are either fresh graduates or newly accomplished in their chosen fields of work. They are

the company’s foreseeable target market in the long run because they’ll likely avail for a life

plan. This group starts to plan for their future while they’re still young and capable of investing.

When they reach their late 40’s (Baby Boomer age group), this market will start to incur the

products and services they have invested in.

 90

Certified Adults/Baby Boomers – This age group are the ones who are responsibly

starting to think about planning their own funeral or the funeral of a loved one such as a parent.

Baby boomers are those that belong to the 45-65 age brackets, potentially capable of spending

money on funeral service policies. Furthermore, they are the first generation to use the word

“retirement” to mean being able to enjoy life after the children have left home. Instead of sitting

in a rocking chair, they go skydiving, exercise and take up hobbies, which increases their

longevity. The group develops huge target market potentials because of their openness to unique

concepts such as themed funerals.

Hospitals and clinics - These establishments are part of the target market because they

give services for medical or surgical treatment of people. Once a person dies while undergoing a

surgery or a medical treatment within the clinic or hospital, the establishment gives the family an

option whether to let them contact a funeral home to fetch the body. In this case, the

establishments become our partners in marketing and customer related activities. The company

aims to be dependable and deserving of establishments’ trust.

 91

Chapter 5

FINANCIAL ASPECT

This chapter comprises the financial aspect of this feasibility study, encompassing the

project costs, assumptions, sources of financing and other capital requirements that are

significant in the construction of the initial and pro-forma financial statements, notes and

schedules, and finally, conveying financial analyses.

Project Cost

Note

Cash and Cash Equivalents 7 Php 5,877,550.04

Inventories 8 663,260.00

Office Supplies 30,130.75

Funeral Supplies 207,650.21

Organizational Cost 9 91,650.00

Prepaid Insurance 1,500.00

Land 4,000,000.00

Property, Plant and Equipment 10 11,680,530.00

Furniture and Fixtures 11 116, 929.00

Trademark 13 30,000.00

Total Project Cost Php 22,699,200.00

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Sources of Financing

Libing Labi da Loca’s Php 22,699,200 project cost is partly financed with P18,000,000

cash invested by the partners as stipulated in the Articles of Partnership. The remaining

Php 4,699,200 is financed through a loan payable from Banco de Oro, at a 9.5% interest in one

year. The Php 1,000,000 will be paid one year after the start of operations and the remaining

balance of loan is payable in five annual installments of Php 870, 050 starting January 2017.

Assumptions

All amounts were estimates. Percentages were based on surveys and interviews.

Otherwise, amounts were assumed factual.

Cash

a.Cash on hand shall range from Php 30,000 to Php 50,000.

b. The Petty cash fund shall have a maintaining balance of Php 20,000 and subject for

replenishment.

c. Cash in bank shall have a minimum balance of Php 200,000.

Inventory

a. There shall be two supplies inventory accounts to be kept: office supplies, and funeral

supplies.

b. The First-In First-Out method of accounting for inventory shall be used.

 93

Prepayments

a. Prepaid Insurance is renewed annually.

Supplies

a. Supplies are divided into two accounts: office and supplies. All supplies are assumed to

be used up in one year. Supplies are then restocked at year-end.

Property, Plant and Equipment

a. Depreciation of PPE are computed on a straight line basis with no salvage value at the

end of their useful life. Useful lives of the non-current assets are presented below.

Depreciable Asset Useful Life

Building 20

Equipment

Human Incinerator 20

Cremated Remains Processor 20

Crematory Cooler 15

Embalming Machine 18

Air Conditioner 5

Desktop Computer 8

Funeral Car 15

Printer 10
 94

Biometric Scanner 8

Security Camera 6

Digital Camera 10

Furniture and Fixtures

Casket Lift Support 15

Torchiere Lamp 5

Chapel/Devotional Set 15

Body Tray 10

Filing Cabinet 20

Payroll

a. Labor rates used are in accordance with the minimum wage rate as per Labor Code of

the Philippines. The minimum wage rate for Region 17 –NIR is Php 298.50 as of May 2, 2015 for

businesses employing more than 10 people.

b. The employees, except outsourced employees, shall receive the minimum wage as

stated in the Labor Code of the Philippines.

c. Salaries are subject to deductions from tardiness and absences. No absences and

tardiness are assumed to occur.

d. It is assumed that no employee availed of any leave of absences during the first five

years.

e. Withholding taxes of 5% are included in the computation of net pay. Salaries are paid

monthly to employees.
 95

f. Holiday pays are based on 12 legal holidays. The business will operate on all legal

holidays. Salaries are assumed to be inclusive of all legal holiday pays.

g. A 13th month pay shall be given to employees as an average of their basic monthly

salaries for 12 months.

h. It is assumed that no absences were incurred by any employees during the first five

years of operations.

Financing Activities

a. Interest expense is 9.5% for all outstanding loan balance.

Income

a. Revenue is generated from the sale of packages for Casket burial and Cremation and

Life Plans. Other income is from the rent received from tenants of the canteen.

b. Price mark ups are applied on all products and services at the following rates:

Products/Services Price Mark-up

Caskets/Urns 200%

Funeral Packages 200%

Other Services 150%

Life Plan: Casket Burial 150%

Life Plan: Funeral Packages 150%

Life Plan: Other Services 130%

 96

c. A discount of 20% is given to Senior Citizens availing the Funeral packages and Life

Plans for both Casket Burial and Cremation.

d. Market share for the life plans of the company is 3% of the total customers and life

plan holders in Bacolod City. Market share for spot cash services is 10% of the total death cases

in Bacolod City annually.

e. Sales from life plans are accounted as installment sales. Installment method is used in

recognizing profit from installment sales. Installment Receivables are assumed to be fully

collected within 5 years. Collection of Installment Receivables are assumed to be made in the

following scheme:

Year Percentage of Collection

1 40%

2 30%

3 20%

4 5%

5 5%

f. It is assumed that no client shall avail of the plan prematurely within the first five years

of operations.

Expenses

a. All expenses attributable to both selling and administrative operations are divided in

the ratio of 3:1 – 75% to selling and 25% to administrative. Sales commision is 0.01% of total

annual installment sales from the pre-selling of life plans.

b. SSS, Pag-IBIG, Philhealth, and withholding tax payable are paid at year-end.
 97

c. Miscellaneous expenses total Php 20, 000 monthly.

Owners’ Equity

a. The partners are allowed a maximum withdrawal of Php 30, 000 per year (excluding

their fixed monthly salaries) for the first two years, increasing by Php 10, 000 for the next years

until the fifth year. Withdrawals are expected to remain constant thereafter. It is assumed that the

only withdrawals made are salaries.

Investment Analysis

a. WACC is computed using the cost of equity of 6.17% and after-tax cost of debt of

6.65%.

Rates

a. The inflation rate of 1.5% was taken from the average inflation rate reported by NEDA

projected for the next five years. This rate is assumed to be the growth rate of Sales and Cost of

Sales and Services, and operational expenses.

b. Tax rate used is 30% based on the Philippines Corporate Tax Rate as of September 15,

2015.

c. Treasury bonds invested earn 3.9% annually.

 98

FINANCIAL
STATEMENTS
5 YEARS PROJECTION
 99

LIBING LABI DA LOCA

INCOME STATEMENT
` Note 2017 2018 2019 2020 2021
Regular Sales 1 38,560,886.39 39,139,299.69 39,726,389.19 40,322,285.02 40,927,119.30
Revenue from Other Services 2 7,100,343.59 7,206,848.74 7,314,951.47 7,424,675.74 7,536,045.88
Total Revenue 45,661,229.98 46,346,148.43 47,041,340.66 47,746,960.77 48,463,165.18
Cost of Regular Sales 3 19,447,919.83 19,739,638.63 20,035,733.21 20,336,269.21 20,641,313.24
Cost of Other Services 4 4,733,562.39 4,804,565.83 4,876,634.31 4,949,783.83 5,024,030.59
Total Cost 24,181,482.22 24,544,204.45 24,912,367.52 25,286,053.03 25,665,343.83
Regular Gross Profit 21,479,747.76 21,801,943.98 22,128,973.14 22,460,907.73 22,797,821.35
Realized Gross Profit
3,687,062.46 6,507,665.24 8,448,811.45 9,036,426.43 9,632,855.63
(see schedule 5)
TOTAL GROSS PROFIT 25,166,810.22 28,309,609.22 30,577,784.59 31,497,334.16 32,430,676.98
Other Income 5 120,000.00 568,500.00 517,800.00 720,600.00 783,000.00
Operating Expenses 6 4,535,662.95 4,358,523.04 4,366,805.53 4,375,212.25 4,383,745.08
EBITDA 20,751,147.27 24,519,586.18 26,728,779.06 27,842,721.91 28,829,931.90
Depreciation Expenses 12 607,005.07 607,005.07 607,005.07 607,005.07 607,005.07
Amortization Expenses 14 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
EBIT 20,141,142.20 23,909,581.11 26,118,773.99 27,232,716.84 28,219,926.83
Finance Cost 425,619.00 330,619.00 247,964.25 165,309.50 82,654.75
EBT 19,715,523.20 23,578,962.11 25,870,809.74 27,067,407.34 28,137,272.08
Tax Expense 5,914,656.96 7,073,688.63 7,761,242.92 8,120,222.20 8,441,181.62
NET INCOME 13,800,866.24 16,505,273.47 18,109,566.82 18,947,185.14 19,696,090.46
 100

LIBING LABI DA LOCA

STATEMENT OF FINANCIAL POSITION

Pre-
Note 2017 2018 2019 2020 2021
Operating
ASSETS
Current Assets
Cash and Cash Equivalents 7 5,877,550.04 389,805.72 351,095.20 390,943.60 364,533.78 389,078.36
Trading Securities - 11,500,000.00 21,700,000.00 37,100,000.00 54,100,000.00 72,800,000.00
Installment Accounts
- 18,263,516.28 27,669,227.16 31,128,184.95 33,117,067.41 33,613,823.42
Receivable(see schedule 4)
Inventories 8 663,260.00 663,260.00 673,208.90 683,307.03 693,556.64 703,959.99
Office Supplies 30,130.75 30,130.75 30,582.71 31,041.45 31,507.07 31,979.68
Funeral Supplies 207,650.21 207,650.21 210,764.96 213,926.44 217,135.33 220,392.36
Organizational Cost 9 91,650.00 - - - - -
Prepaid Insurance 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Total Current Assets 6,871,741.00 31,055,862.96 50,636,378.93 69,548,903.47 88,525,300.23 107,760,733.81

Non-Current Assets
Land 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00
Property, Plant &Equipment 10 11,680,530.00 11,084,555.56 10,488,581.11 9,892,606.67 9,296,632.22 8,700,657.78
Furniture and Fixtures 11 116,929.00 105,898.37 94,867.74 83,837.11 72,806.48 61,775.85
Trademark 13 30,000.00 27,000.00 24,000.00 21,000.00 18,000.00 15,000.00
Total Non-Current Assets 15,827,459.00 15,217,453.93 14,607,448.85 13,997,443.78 13,387,438.70 12,777,433.63
TOTAL ASSETS 22,699,200.00 46,273,316.89 65,243,827.79 83,546,347.25 101,912,738.94 120,538,167.44
 101

Note Pre-Operating 2017 2018 2019 2020 2021

LIABILITIES AND OWNERS' EQUITY
Current Liabilities
Trade and Other Payables 219,000.00 219,000.00 219,000.00 219,000.00 219,000.00 219,000.00
Loans Payable 1,000,000.00 870,050.00 870,050.00 870,050.00 870,050.00 -
Total Current Liabilities 1,219,000.00 1,089,050.00 1,089,050.00 1,089,050.00 1,089,050.00 219,000.00
Non-Current Liabilities
Loans Payable 3,480,200.00 2,610,150.00 1,740,100.00 870,050.00 -
Tax Payable (s - 5,914,656.96 7,073,688.63 7,761,242.92 8,120,222.20 8,441,181.62
Deferred Gross Profit 2017 ee - 5,530,593.69 2,765,296.85 921,765.62 460,882.81 -
Deferred Gross Profit 2018 sc - - 5,613,552.60 2,806,776.30 935,592.10 467,796.05
Deferred Gross Profit 2019 he - - - 5,697,755.88 2,848,877.94 949,625.98
Deferred Gross Profit 2020 du - - - - 5,783,222.22 2,891,611.11
Deferred Gross Profit 2021 le - - - - - 5,869,970.56
Total Non-Current Liabilities 5) 3,480,200.00 14,055,400.65 17,192,638.07 18,057,590.72 18,148,797.27 18,620,185.32
TOTAL LIABILITIES 4,699,200.00 15,144,450.65 18,281,688.07 19,146,640.72 19,237,847.27 18,839,185.32

Owner’s Equity
Aguila, Capital 2,800,000.00 4,675,552.32 6,937,448.53 9,428,529.50 12,039,270.24 14,756,997.45
Azurin, Capital 3,800,000.00 5,675,552.32 7,937,448.53 10,428,529.50 13,039,270.24 15,756,997.45
Cuaterno, Capital - 1,875,552.32 4,137,448.53 6,628,529.50 9,239,270.24 11,956,997.45
Dela Cerna, Capital - 1,875,552.32 4,137,448.53 6,628,529.50 9,239,270.24 11,956,997.45
Nartatez, Capital 3,800,000.00 5,675,552.32 7,937,448.53 10,428,529.50 13,039,270.24 15,756,997.45
Oligo, Capital 3,800,000.00 5,675,552.32 7,937,448.53 10,428,529.50 13,039,270.24 15,756,997.45
Sumugat, Capital 3,800,000.00 5,675,552.32 7,937,448.53 10,428,529.50 13,039,270.24 15,756,997.45
TOTAL EQUITY 18,000,000.00 31,128,866.24 46,962,139.71 64,399,706.53 82,674,891.66 101,698,982.12

TOTAL LIABILITIES AND EQUITY 22,699,200.00 46,273,316.89 65,243,827.79 83,546,347.25 101,912,738.94 120,538,167.44
 102

LIBING LABI DA LOCA

STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 2017

Partner Beginning Balance Share in Net Income(Loss) Withdrawals Ending Balance

Aguila, Capital 2,800,000.00 2,091,552.32 216,000.00 4,675,552.32
Azurin, Capital 3,800,000.00 1,875,552.32 - 5,675,552.32
Cuaterno, Capital - 2,091,552.32 216,000.00 1,875,552.32
Dela Cerna, Capital - 2,115,552.32 240,000.00 1,875,552.32
Nartatez, Capital 3,800,000.00 1,875,552.32 - 5,675,552.32
Oligo, Capital 3,800,000.00 1,875,552.32 - 5,675,552.32
Sumugat, Capital 3,800,000.00 1,875,552.32 - 5,675,552.32
TOTAL 18,000,000.00 13,800,866.24 672,000.00 31,128,866.24

For the Year Ended December 31, 2018

Partner Beginning Balance Share in Net Income(Loss) Withdrawals Ending Balance

Aguila, Capital 4,675,552.32 2,477,896.21 216,000.00 6,937,448.53
Azurin, Capital 5,675,552.32 2,261,896.21 - 7,937,448.53
Cuaterno, Capital 1,875,552.32 2,477,896.21 216,000.00 4,137,448.53
Dela Cerna, Capital 1,875,552.32 2,501,896.21 240,000.00 4,137,448.53
Nartatez, Capital 5,675,552.32 2,261,896.21 - 7,937,448.53
Oligo, Capital 5,675,552.32 2,261,896.21 - 7,937,448.53
Sumugat, Capital 5,675,552.32 2,261,896.21 - 7,937,448.53
TOTAL 31,128,866.24 16,505,273.47 672,000.00 46,962,139.71
 103

For the Year Ended December 31, 2019

Partner Beginning Balance Share in Net Income(Loss) Withdrawals Ending Balance
Aguila, Capital 6,937,448.53 2,707,080.97 216,000.00 9,428,529.50
Azurin, Capital 7,937,448.53 2,491,080.97 - 10,428,529.50
Cuaterno, Capital 4,137,448.53 2,707,080.97 216,000.00 6,628,529.50
Dela Cerna, Capital 4,137,448.53 2,731,080.97 240,000.00 6,628,529.50
Nartatez, Capital 7,937,448.53 2,491,080.97 - 10,428,529.50
Oligo, Capital 7,937,448.53 2,491,080.97 - 10,428,529.50
Sumugat, Capital 7,937,448.53 2,491,080.97 - 10,428,529.50
TOTAL 46,962,139.71 18,109,566.82 672,000.00 64,399,706.53
For the Year Ended December 31, 2020
Partner Beginning Balance Share in Net Income(Loss) Withdrawals Ending Balance
Aguila, Capital 9,428,529.50 2,826,740.73 216,000.00 12,039,270.24
Azurin, Capital 10,428,529.50 2,610,740.73 - 13,039,270.24
Cuaterno, Capital 6,628,529.50 2,826,740.73 216,000.00 9,239,270.24
Dela Cerna, Capital 6,628,529.50 2,850,740.73 240,000.00 9,239,270.24
Nartatez, Capital 10,428,529.50 2,610,740.73 - 13,039,270.24
Oligo, Capital 10,428,529.50 2,610,740.73 - 13,039,270.24
Sumugat, Capital 10,428,529.50 2,610,740.73 - 13,039,270.24
TOTAL 64,399,706.53 18,947,185.14 672,000.00 82,674,891.66

For the Year Ended December 31, 2021

Partner Beginning Balance Share in Net Income(Loss) Withdrawals Ending Balance
Aguila, Capital 12,039,270.24 2,933,727.21 216,000.00 14,756,997.45
Azurin, Capital 13,039,270.24 2,717,727.21 - 15,756,997.45
Cuaterno, Capital 9,239,270.24 2,933,727.21 216,000.00 11,956,997.45
Dela Cerna, Capital 9,239,270.24 2,957,727.21 240,000.00 11,956,997.45
Nartatez, Capital 13,039,270.24 2,717,727.21 - 15,756,997.45
Oligo, Capital 13,039,270.24 2,717,727.21 - 15,756,997.45
Sumugat, Capital 13,039,270.24 2,717,727.21 - 15,756,997.45
TOTAL 82,674,891.66 19,696,090.46 672,000.00 101,698,982.12
 104

LIBING LABI DA LOCA

STATEMENT OF CASH FLOWS

Pre-operating 2017 2018 2019 2020 2021

Cash Flows from Operating Activities
Net Income - 13,800,866.24 16,505,273.47 18,109,566.82 18,947,185.14 19,696,090.46
Decrease (Increase) in Depreciation - PPE - 595,974.44 595,974.44 595,974.44 595,974.44 595,974.44
Decrease (Increase) in Depreciation -
- 11,030.63 11,030.63 11,030.63 11,030.63 11,030.63
Furnitures and Fixtures
Decrease (Increase) in Amortization -
- 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Trademark
Increase (Decrease) in Deferred Gross
5,530,593.69 2,848,255.75 1,047,448.36 602,277.27 150,428.63
Profit
Decrease (Increase) in Inventory (663,260.00) - (9,948.90) (10,098.13) (10,249.61) (10,403.35)
Decrease (Increase) in Office Supplies (30,130.75) - (451.96) (458.74) (465.62) (472.61)
Decrease (Increase) in Funeral Supplies (207,650.21) - (3,114.75) (3,161.47) (3,208.90) (3,257.03)
Decrease (Increase) in Organizational Cost (91,650.00) 91,650.00 - - - -
Decrease (Increase) in Prepayments (1,500.00) - - - - -
Decrease (Increase) in Instalment
- (18,263,516.28) (9,405,710.88) (3,458,957.79) (1,988,882.46) (496,756.01)
Receivable
Increase (Decrease) in Trade and Other
219,000.00 - - - - -
Payable
Unpaid Taxes - 5,914,656.96 1,159,031.67 687,554.29 358,979.28 320,959.42
Net Cash Provided by Operating Activities (775,190.96) 7,684,255.68 11,703,339.48 16,981,898.40 18,515,640.18 20,266,594.58
 105

Cash Flows from Investing Activities

Investment in Bonds - (11,500,000.00) (10,200,000.00) (15,400,000.00) (17,000,000.00) (18,700,000.00)
Land (4,000,000.00) - - - - -
Property, Plant and Equipment (11,680,530.00) - - - - -
Furnitures and Fixtures (116,929.00) - - - - -
Trademark (30,000.00) - - - - -
Net Cash used in Investing Activities (15,827,459.00) (11,500,000.00) (10,200,000.00) (15,400,000.00) (17,000,000.00) (18,700,000.00)

Cash Flows from Financing Activities

Owner's Withdrawals (672,000.00) (672,000.00) (672,000.00) (672,000.00) (672,000.00) (672,000.00)
Increase (decrease) in Notes Payable 4,480,200.00 (1,000,000.00) (870,050.00) (870,050.00) (870,050.00) (870,050.00)
Net Cash Provided by Financing Activities 3,808,200.00 (1,672,000.00) (1,542,050.00) (1,542,050.00) (1,542,050.00) (1,542,050.00)

Summary:
Net Change in Cash (12,794,449.96) (5,487,744.32) (38,710.52) 39,848.40 (26,409.82) 24,544.58
Beginning 22,699,200.00 5,877,550.04 389,805.72 351,095.20 390,943.60 364,533.78
End 5,877,550.04 389,805.72 351,095.20 390,943.60 364,533.78 389,078.36
- (0.00) (0.00) (0.00) 0.00 (0.00)
 106

NOTES TO FINANCIAL
STATEMENTS
 107

Note 1 - Regular Sales 2017 2018 2019 2020 2021

Caskets 23,385,135.86 23,735,912.90 24,091,951.59 24,453,330.87 24,820,130.83
Cremation 205,144.21 208,221.38 211,344.70 214,514.87 217,732.59
Funeral 14,970,606.32 15,195,165.41 15,423,092.90 15,654,439.29 15,889,255.88
TOTAL 38,560,886.39 39,139,299.69 39,726,389.19 40,322,285.02 40,927,119.30

Note 2 - Revenue from Other Services 2017 2018 2019 2020 2021
Venue of Wake 2,169,650.62 2,202,195.38 2,235,228.31 2,268,756.74 2,302,788.09
Mass 80,907.37 82,120.98 83,352.79 84,603.08 85,872.13
Online Wake Vigil 47,339.04 48,049.12 48,769.86 49,501.41 50,243.93
Food for the Guest 197,692.78 200,658.17 203,668.04 206,723.06 209,823.91
Flower Arrangements 269,899.96 273,948.46 278,057.68 282,228.55 286,461.98
Documentation 362,947.58 368,391.80 373,917.68 379,526.44 385,219.34
Balloons 5,776.16 5,862.81 5,950.75 6,040.01 6,130.61
Doves 1,857.51 1,885.37 1,913.65 1,942.36 1,971.49
Tombstone 85,875.26 87,163.39 88,470.84 89,797.90 91,144.87
Cemetery 3,811,257.71 3,868,426.57 3,926,452.97 3,985,349.77 4,045,130.01
Obituary 67,139.60 68,146.70 69,168.90 70,206.43 71,259.53
TOTAL 7,100,343.59 7,206,848.74 7,314,951.47 7,424,675.74 7,536,045.88

Note 3 - Cost of Regular Sales 2017 2018 2019 2020 2021

Caskets 11,858,588.16 12,036,466.99 12,217,013.99 12,400,269.20 12,586,273.24
Urns 104,028.51 105,588.93 107,172.77 108,780.36 110,412.06
Funeral 7,485,303.16 7,597,582.71 7,711,546.45 7,827,219.64 7,944,627.94
TOTAL 19,447,919.83 19,739,638.63 20,035,733.21 20,336,269.21 20,641,313.24
 108

Note 4 - Cost of Other Services 2017 2018 2019 2020 2021

Venue of Wake 1,446,433.75 1,468,130.26 1,490,152.21 1,512,504.49 1,535,192.06
Mass 53,938.24 54,747.32 55,568.53 56,402.06 57,248.09
Online Wake Vigil 31,559.36 32,032.75 32,513.24 33,000.94 33,495.95
Food for the Guest 131,795.18 133,772.11 135,778.69 137,815.37 139,882.60
Flower Arrangements 179,933.30 182,632.30 185,371.79 188,152.36 190,974.65
Documentation 241,965.06 245,594.53 249,278.45 253,017.63 256,812.89
Balloons 3,850.78 3,908.54 3,967.17 4,026.67 4,087.07
Doves 1,238.34 1,256.92 1,275.77 1,294.91 1,314.33
Tombstone 57,250.17 58,108.93 58,980.56 59,865.27 60,763.25
Cemetery 2,540,838.47 2,578,951.05 2,617,635.31 2,656,899.84 2,696,753.34
Obituary 44,759.74 45,431.13 46,112.60 46,804.29 47,506.35
TOTAL 4,733,562.39 4,804,565.83 4,876,634.31 4,949,783.83 5,024,030.59

Note 5 - Other Income 2017 2018 2019 2020 2021

Income from Rent 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Interest Income - 448,500.00 397,800.00 600,600.00 663,000.00
TOTAL 120,000.00 568,500.00 517,800.00 720,600.00 783,000.00

Note 6 - Operating Expenses 2017 2018 2019 2020 2021

Selling Expenses
Salaries Expense 2,744,271.60 2,744,271.60 2,744,271.60 2,744,271.60 2,744,271.60
Sales Commission 310,632.39 315,291.88 320,021.26 324,821.58 329,693.90
Funeral Supplies Expense 32,148.07 32,630.29 33,119.75 33,616.54 34,120.79
Telephone and Internet 11,988.00 12,167.82 12,350.34 12,535.59 12,723.63
Water 36,000.00 36,540.00 37,088.10 37,644.42 38,209.09
Electricity 20,000.00 20,300.00 20,604.50 20,913.57 21,227.27
Insurance Expense 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Repairs and Maintenance Expense 36,000.00 36,540.00 37,088.10 37,644.42 38,209.09
Total Selling Expenses 3,192,540.06 3,199,241.59 3,206,043.64 3,212,947.72 3,219,955.36
 109

Administrative Expenses
Office Supplies Expenses 30,582.71 31,041.45 31,507.07 31,979.68 32,459.37
Legal and Filing Fees 2,000.00 - - - -
Organizational Cost 91,650.00 - - - -
Salaries Expense 654,560.00 654,560.00 654,560.00 654,560.00 654,560.00
Employee Benefits 24,525.51 24,525.51 24,525.51 24,525.51 24,525.51
Outsourcing Cost 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00
Telephone and Internet 11,988.00 12,167.82 12,350.34 12,535.59 12,723.63
Water 12,000.00 12,180.00 12,362.70 12,548.14 12,736.36
Electricity 6,666.67 6,766.67 6,868.17 6,971.19 7,075.76
Insurance Expense 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Repairs and Maintenance Expense 36,000.00 36,540.00 37,088.10 37,644.42 38,209.09
Miscellaneous Expense 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Total Administrative Expenses 1,251,472.89 1,159,281.45 1,160,761.89 1,162,264.53 1,163,789.72
Total Operating Expenses 4,444,012.95 4,358,523.04 4,366,805.53 4,375,212.25 4,383,745.08

Note 7 - Cash and Cash Equivalents 2017 2018 2019 2020 2021
Cash on Hand 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Petty Cash Fund 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Cash in Bank 319,805.72 319,805.72 319,805.72 319,805.72 319,805.72
TOTAL 389,805.72 389,805.72 389,805.72 389,805.72 389,805.72

Note 8- Inventory Pre-Operating 2017 2018 2019 2020 2021

Caskets 640,260.00 649,863.90 659,611.86 669,506.04 679,548.63 689,741.86
Urns 23,000.00 23,345.00 23,695.18 24,050.60 24,411.36 24,777.53
TOTAL 663,260.00 673,208.90 683,307.03 693,556.64 703,959.99 714,519.39
 110

Note 9 - Organizational Costs Cost 2017 2018 2019 2020 2021

Permits and Licenses
Business Tax 25,000.00 - - - - -
Crematory Services 550.00 - - - - -
Business Plate 600.00 - - - - -
Sanitary Inspection Fee 500.00 - - - - -
Business Application Form 15.00 - - - - -
Occupational Tax 675.00 - - - - -
Garbage Fee 2,750.00 - - - - -
Zoning 50.00 - - - - -
Sticker for Business 60.00 - - - - -
Health Certificate Fee 450.00 - - - - -
Advertising - - - - -
Newspaper 15,000.00 - - - - -
Flyers 9,000.00 - - - - -
Tarpaulins 10,000.00 - - - - -
Posters 5,000.00 - - - - -
Training - - - - -
Training Costs 5,000.00 - - - - -
Transportation Costs 6,000.00 - - - - -
Accommodation Costs 8,000.00 - - - - -
Contingency 3,000.00 - - - - -
TOTAL 91,650.00 - - - - -

Note 10 - Property, Plant and Equipment 2017 2018 2019 2020 2021
Building 8,000,000.00 8,000,000.00 8,000,000.00 8,000,000.00 8,000,000.00
Less: Accumulated Depreciation-Building 400,000.00 800,000.00 1,200,000.00 1,600,000.00 2,000,000.00
Equipment 3,680,530.00 3,680,530.00 3,680,530.00 3,680,530.00 3,680,530.00
Less: Accumulated Depreciation-Equipment 195,974.44 391,948.89 587,923.33 783,897.78 979,872.22
TOTAL 11,084,555.56 10,488,581.11 9,892,606.67 9,296,632.22 8,700,657.78

Note 11 - Furniture and Fixtures 2017 2018 2019 2020 2021

Furniture and Fixtures 116,929.00 105,898.37 94,867.74 83,837.11 72,806.48
Less: Accumulated Depreciation 11,030.63 22,061.26 33,091.89 44,122.52 55,153.15
TOTAL 105,898.37 94,867.74 83,837.11 72,806.48 61,775.85
 111

Note 12 - Depreciation Expense Useful Life Pre-operating 2017 2018 2019 2020 2021
Building 20 8,000,000.00 400,000.00 400,000.00 400,000.00 400,000.00 400,000.00
Equipment
Human Incinerator 20 3,000,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Cremated Remains Processor 20 157,000.00 7,850.00 7,850.00 7,850.00 7,850.00 7,850.00
Crematory Cooler 15 219,000.00 14,600.00 14,600.00 14,600.00 14,600.00 14,600.00
Embalming Machine 18 96,500.00 5,361.11 5,361.11 5,361.11 5,361.11 5,361.11
Air Conditioner 5 18,800.00 3,760.00 3,760.00 3,760.00 3,760.00 3,760.00
Desktop Computer 8 14,850.00 1,856.25 1,856.25 1,856.25 1,856.25 1,856.25
Funeral Car 15 150,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Printer 10 4,000.00 400.00 400.00 400.00 400.00 400.00
Biometric Scanner 8 1,830.00 228.75 228.75 228.75 228.75 228.75
Security Camera 6 950.00 158.33 158.33 158.33 158.33 158.33
Digital Camera 10 17,600.00 1,760.00 1,760.00 1,760.00 1,760.00 1,760.00
Furnitures and Fixtures
Monoblock Chairs 10 21,000.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00
Computer Chairs 10 3,500.00 350.00 350.00 350.00 350.00 350.00
Office Tables 20 5,000.00 250.00 250.00 250.00 250.00 250.00
Sofa Set 15 5,000.00 333.33 333.33 333.33 333.33 333.33
Clock 15 2,800.00 186.67 186.67 186.67 186.67 186.67
Altar 25 6,799.00 271.96 271.96 271.96 271.96 271.96
Casket Lift Support 15 7,680.00 512.00 512.00 512.00 512.00 512.00
Torchiere Lamp 5 17,250.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Chapel/Devotional Set 15 25,000.00 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67
Body Tray 10 15,300.00 1,530.00 1,530.00 1,530.00 1,530.00 1,530.00
Filing Cabinet 20 7,600.00 380.00 380.00 380.00 380.00 380.00
TOTAL 11,797,459.00 607,005.07 607,005.07 607,005.07 607,005.07 607,005.07

Note 13- Trademark 2017 2018 2019 2020 2021

Trademark 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Less: Amortization-Trademark 3,000.00 6,000.00 9,000.00 12,000.00 15,000.00
TOTAL 27,000.00 24,000.00 21,000.00 18,000.00 15,000.00
 112

SCHEDULES
 113

Schedule 1 - Demand

Population of Bacolod 511,820.00

Death Rate 0.50%
TOTAL DEATH CASES, ANNUAL 2,559.10

AVERAGE ANNUAL CUSTOMERS MARKET SHARE TOTAL MARKET

St. Peter Life Plan and Memorial Services 8000 97.00% 8247
Libing Labi da Loca, Life Plans 247 3.00% 8247
Acropolis Gardens 767.7 30.00%
Rolling Hills Memorial Chapels 767.7 30.00%
Alisbo Memorial Chapels 767.7 30.00%
TOTAL 2303.19 90.00% 2559
Libing Labi da Loca, Packages and Others 256 10.00% 2559
Regular 93.00% 230
Senior Citizens 7.00% 17
TOTAL 100% 247

Population, Packages and Others Percentage Market

Regular 93.00% 238
Senior Citizens 7.00% 18
TOTAL 100% 256

Life Plan Percentage Market Life Plan Percentage Market

Willing 89.11% 205 Willing 89.11% 15
Not Willing 10.89% 25 Not Willing 10.89% 2
TOTAL 100% 230 TOTAL 100% 17

Packages and Others Percentage Market Packages and Others Percentage Market
Willing 89.11% 212 Willing 89.11% 16
Not Willing 10.89% 26 Not Willing 10.89% 2
TOTAL 100% 238 TOTAL 100% 18
 114

Schedule 2 - Cost of Sales (inflation rate 5 years)

Casket Packages COST Market TOTAL COST Casket Packages COST Market TOTAL COST
Bradford 48,300.00 57.12 2,758,937.63 Bradford 48,300.00 4.30 207,661.97
Belmont 54,370.00 33.24 1,807,228.05 Belmont 54,370.00 2.50 136,027.92
LaSalle 62,100.00 21.31 1,323,185.18 LaSalle 62,100.00 1.60 99,594.58
Bradford (Champagne) 68,250.00 12.78 872,535.15 Bradford (Champagne) 68,250.00 0.96 65,674.69
Richmond 72,120.00 20.46 1,475,364.77 Richmond 72,120.00 1.54 111,048.96
Devotion 85,920.00 17.05 1,464,727.09 Devotion 85,920.00 1.28 110,248.28
Sterling 104,200.00 3.84 399,640.28 Sterling 104,200.00 0.29 30,080.45
Magistrate 145,000.00 6.39 926,868.84 Magistrate 145,000.00 0.48 69,764.32
TOTAL 640,260.00 172.18 11,028,486.99 TOTAL 640,260.00 12.96 830,101.17
Urn Packages COST Market TOTAL COST Urn Packages COST Market TOTAL COST
Urna Uno 1,800.00 14.96 26,929.44 Urna Uno 1,800.00 1.13 2,026.95
Urna Dos 2,800.00 24.93 69,817.07 Urna Dos 2,800.00 1.88 5,255.05
TOTAL 4,600.00 39.90 96,746.51 TOTAL 4,600.00 3.00 7,282.00
Funeral Packages COST Market TOTAL COST Funeral Packages COST Market
Cielo 15,295.50 70.35 1,076,109.56 Cielo 15,295.50 5.30 80,997.49
Viajar 18,295.50 40.94 749,024.41 Viajar 18,295.50 3.08 56,378.18
Felicidad 38,995.50 26.24 1,023,390.97 Felicidad 38,995.50 1.98 77,029.43
Saber 43,170.50 15.75 679,775.36 Saber 43,170.50 1.19 51,165.89
Infinito 55,295.50 25.20 1,393,257.99 Infinito 55,295.50 1.90 104,868.88
Sincero 58,920.50 21.00 1,237,163.02 Sincero 58,920.50 1.58 93,119.80
Bendicion 61,120.50 4.72 288,726.40 Bendicion 61,120.50 0.36 21,732.09
Eternidad 65,270.50 7.87 513,884.22 Eternidad 65,270.50 0.59 38,679.46
TOTAL 356,364.00 212.08 6,961,331.94 TOTAL 356,364.00 15.96 523,971.22
Life Plan: Casket Packages COST Market inflation Life Plan: Casket Packages COST Market TOTAL COST
Amor 52,032.82 49.21 2,560,622.04 Amor 52,032.82 3.70 192,734.99
Alegria 58,571.93 28.64 1,677,322.44 Alegria 58,571.93 2.16 126,250.08
Paz 66,899.34 18.36 1,228,073.12 Paz 66,899.34 1.38 92,435.61
Pacencia 73,524.63 11.01 809,816.33 Pacencia 73,524.63 0.83 60,953.92
Benignidad 77,693.72 17.62 1,369,313.87 Benignidad 77,693.72 1.33 103,066.64
Bondad 92,560.24 14.69 1,359,440.84 Bondad 92,560.24 1.11 102,323.50
Fidelidad 112,252.99 3.30 370,913.68 Fidelidad 112,252.99 0.25 27,918.23
Mandesumbre 156,206.18 5.51 860,244.45 Mandesumbre 156,206.18 0.41 64,749.58
TOTAL 689,741.86 148.34 10,235,746.77 TOTAL 689,741.86 11.17 770,432.55
Life Plan: Urns COST Market inflation Life Plan: Cremation COST Market inflation
Querubines 1,939.11 12.89 24,993.72 Querubines 1,939.11 0.97 1,881.25
 115

Seraphines 3,016.40 21.48 64,798.54 Seraphines 3,016.40 1.62 4,877.31

TOTAL 4,955.51 34.37 89,792.26 TOTAL 4,955.51 2.59 6,758.56
Other Services COST Market TOTAL COST Other Services COST Market inflation
Venue of Wake 20,000.00 67.26 1,345,183.39 Venue of Wake 20,000.00 5.06 101,250.36
Mass 1,000.00 50.16 50,162.57 Mass 1,000.00 3.78 3,775.68
Online Wake Vigil 500.00 58.70 29,350.20 Online Wake Vigil 500.00 4.42 2,209.16
Food for the Guest 1,625.00 75.43 122,569.52 Food for the Guest 1,625.00 5.68 9,225.66
Flower Arrangements 1,500.00 111.56 167,337.97 Flower Arrangements 1,500.00 8.40 12,595.33
Documentation 2,500.00 90.01 225,027.50 Documentation 2,500.00 6.78 16,937.55
Balloons 150.00 23.87 3,581.22 Balloons 150.00 1.80 269.55
Doves 100.00 11.52 1,151.66 Doves 100.00 0.87 86.68
Tombstone 2,000.00 26.62 53,242.66 Tombstone 2,000.00 2.00 4,007.51
Cemetery 20,000.00 118.15 2,362,979.78 Cemetery 20,000.00 8.89 177,858.69
Obituary 600.00 69.38 41,626.55 Obituary 600.00 5.22 3,133.18
TOTAL 4,402,213.02 331,349.37
Life Plan: Funeral Packages Cost Market inflation Life Plan: Funeral Packages Cost Market inflation
Amorado 15,524.93 49.21 763,991.27 Amorado 15,524.93 3.70 57,504.72
Luz 18,569.93 28.64 531,774.95 Luz 18,569.93 2.16 40,026.07
Vida 39,580.43 18.36 726,563.35 Vida 39,580.43 1.38 54,687.56
Belleza 43,818.06 11.01 482,611.12 Belleza 43,818.06 0.83 36,325.57
Eterno 56,124.93 17.62 989,152.95 Eterno 56,124.93 1.33 74,452.37
Sueno 59,804.31 14.69 878,332.27 Sueno 59,804.31 1.11 66,111.03
Memoria 62,037.31 3.30 204,983.26 Memoria 62,037.31 0.25 15,428.85
Recuerdo 66,249.56 5.51 364,835.58 Recuerdo 66,249.56 0.41 27,460.74
TOTAL 361,709.46 148.34 4,942,244.76 TOTAL 361,709.46 11.17 371,996.92
Life Plan: Other Services COST Market inflation Life Plan: Other Services COST Market inflation
Venue of Wake 20,300.00 67.26 1,365,361.14 Venue of Wake 20,300.00 5.06 102,769.12
Mass 1,015.00 50.16 50,915.01 Mass 1,015.00 3.78 3,832.31
Online Wake Vigil 507.50 58.70 29,790.46 Online Wake Vigil 507.50 4.42 2,242.29
Food for the Guest 1,649.38 75.43 124,408.06 Food for the Guest 1,649.38 5.68 9,364.05
Flower Arrangements 1,522.50 111.56 169,848.04 Flower Arrangements 1,522.50 8.40 12,784.26
Documentation 2,537.50 90.01 228,402.91 Documentation 2,537.50 6.78 17,191.62
Balloons 152.25 23.87 3,634.94 Balloons 152.25 1.80 273.60
Doves 101.50 11.52 1,168.93 Doves 101.50 0.87 87.98
Tombstone 2,030.00 26.62 54,041.30 Tombstone 2,030.00 2.00 4,067.62
Cemetery 20,300.00 118.15 2,398,424.47 Cemetery 20,300.00 8.89 180,526.57
Obituary 609.00 69.38 42,250.95 Obituary 609.00 5.22 3,180.18
TOTAL 4,468,246.22 336,319.61
 116

Schedule 3 - Sales
Casket Packages SALES PRICE Market Casket Packages SALES PRICE Market
Bradford 96,600.00 57.12 5,517,875.25 Bradford 77,280.00 4.30 332,259.15
Belmont 108,740.00 33.24 3,614,456.10 Belmont 86,992.00 2.50 217,644.67
LaSalle 124,200.00 21.31 2,646,370.36 LaSalle 99,360.00 1.60 159,351.33
Bradford (Champagne) 136,500.00 12.78 1,745,070.31 Bradford (Champagne) 109,200.00 0.96 105,079.50
Richmond 144,240.00 20.46 2,950,729.55 Richmond 115,392.00 1.54 177,678.34
Devotion 171,840.00 17.05 2,929,454.18 Devotion 137,472.00 1.28 176,397.24
Sterling 208,400.00 3.84 799,280.55 Sterling 166,720.00 0.29 48,128.72
Magistrate 290,000.00 6.39 1,853,737.69 Magistrate 232,000.00 0.48 111,622.91
TOTAL 1,280,520.00 172.18 22,056,973.99 TOTAL 1,024,416.00 12.96 1,328,161.87
Urn Packages SALES PRICE Market Urn Packages SALES PRICE Market
Urna Uno 3,600.00 14.96 53,858.88 Urna Uno 2,880.00 1.13 3,243.12
Urna Dos 5,600.00 24.93 139,634.14 Urna Dos 4,480.00 1.88 8,408.08
TOTAL 9,200.00 39.90 193,493.02 TOTAL 4,600.00 3.00 11,651.19
Funeral Packages SALES PRICE Market Funeral Packages SALES PRICE Market
Cielo 30,591.00 70.35 2,152,219.13 Cielo 30,591.00 5.30 161,994.99
Viajar 36,591.00 40.94 1,498,048.82 Viajar 36,591.00 3.08 112,756.36
Felicidad 77,991.00 26.24 2,046,781.95 Felicidad 77,991.00 1.98 154,058.86
Saber 86,341.00 15.75 1,359,550.72 Saber 86,341.00 1.19 102,331.77
Infinito 110,591.00 25.20 2,786,515.98 Infinito 110,591.00 1.90 209,737.76
Sincero 117,841.00 21.00 2,474,326.05 Sincero 117,841.00 1.58 186,239.59
Bendicion 122,241.00 4.72 577,452.80 Bendicion 122,241.00 0.36 43,464.19
Eternidad 130,541.00 7.87 1,027,768.44 Eternidad 130,541.00 0.59 77,358.92
TOTAL 712,728.00 212.08 13,922,663.88 TOTAL 356,364.00 15.96 1,047,942.44
Life Plan: Casket Packages SALES PRICE Market Life Plan: Casket Packages SALES PRICE Market
Amor 78,049.23 49.21 3,840,933.06 Amor 62,439.38 3.70 231,281.99
Alegria 87,857.90 28.64 2,515,983.65 Alegria 70,286.32 2.16 151,500.09
Paz 100,349.00 18.36 1,842,109.68 Paz 80,279.20 1.38 110,922.73
Pacencia 110,286.95 11.01 1,214,724.50 Pacencia 88,229.56 0.83 73,144.70
Benignidad 116,540.58 17.62 2,053,970.81 Benignidad 93,232.47 1.33 123,679.96
Bondad 138,840.36 14.69 2,039,161.26 Bondad 111,072.29 1.11 122,788.20
Fidelidad 168,379.49 3.30 556,370.52 Fidelidad 134,703.59 0.25 33,501.88
Mandesumbre 234,309.27 5.51 1,290,366.68 Mandesumbre 187,447.42 0.41 77,699.50
TOTAL 1,034,612.78 148.34 15,353,620.15 TOTAL 827,690.23 11.17 924,519.06
Life Plan: Urns SALES PRICE Market Life Plan: Cremation SALES PRICE Market
Querubines 2,908.67 12.89 37,490.58 Querubines 2,326.93 0.97 2,257.50
 117

Seraphines 4,524.59 21.48 97,197.81 Seraphines 3,619.67 1.62 5,852.77

TOTAL 7,433.26 34.37 134,688.39 TOTAL 5,946.61 2.59 8,110.27
Other Services SALES PRICE Market Other Services SALES PRICE Market
Venue of Wake 30,000.00 67.26 2,017,775.08 Venue of Wake 30,000.00 5.06 151,875.54
Mass 1,500.00 50.16 75,243.85 Mass 1,500.00 3.78 5,663.52
Online Wake Vigil 750.00 58.70 44,025.31 Online Wake Vigil 750.00 4.42 3,313.73
Food for the Guest 2,437.50 75.43 183,854.28 Food for the Guest 2,437.50 5.68 13,838.49
Flower Arrangements 2,250.00 111.56 251,006.96 Flower Arrangements 2,250.00 8.40 18,893.00
Documentation 3,750.00 90.01 337,541.25 Documentation 3,750.00 6.78 25,406.33
Balloons 225.00 23.87 5,371.83 Balloons 225.00 1.80 404.33
Doves 150.00 11.52 1,727.48 Doves 150.00 0.87 130.03
Tombstone 3,000.00 26.62 79,863.99 Tombstone 3,000.00 2.00 6,011.27
Cemetery 30,000.00 118.15 3,544,469.67 Cemetery 30,000.00 8.89 266,788.04
Obituary 900.00 69.38 62,439.83 Obituary 900.00 5.22 4,699.77
TOTAL 6,603,319.54 TOTAL 497,024.05
Life Plan: Funeral Packages SALES PRICE Market Life Plan: Funeral Packages SALES PRICE Market
Amorado 23,287.40 49.21 1,145,986.91 Amorado 18,629.92 3.70 69,005.66
Luz 27,854.90 28.64 797,662.43 Luz 22,283.92 2.16 48,031.29
Vida 59,370.65 18.36 1,089,845.03 Vida 47,496.52 1.38 65,625.08
Belleza 65,727.09 11.01 723,916.68 Belleza 52,581.67 0.83 43,590.68
Eterno 84,187.40 17.62 1,483,729.42 Eterno 67,349.92 1.33 89,342.85
Sueno 89,706.46 14.69 1,317,498.40 Sueno 71,765.17 1.11 79,333.24
Memoria 93,055.96 3.30 307,474.89 Memoria 74,444.77 0.25 18,514.62
Recuerdo 99,374.34 5.51 547,253.38 Recuerdo 79,499.47 0.41 32,952.89
TOTAL 542,564.19 148.34 7,413,367.15 TOTAL 434,051.35 11.17 446,396.30
Life Plan: Other Services SALES PRICE Market Life Plan: Other Services SALES PRICE Market
Venue of Wake 26,390.00 67.26 1,774,969.48 Venue of Wake 21,112.00 5.06 106,879.88
Mass 1,319.50 50.16 66,189.51 Mass 1,055.60 3.78 3,985.60
Online Wake Vigil 659.75 58.70 38,727.59 Online Wake Vigil 527.80 4.42 2,331.98
Food for the Guest 2,144.19 75.43 161,730.48 Food for the Guest 1,715.35 5.68 9,738.61
Flower Arrangements 1,979.25 111.56 220,802.45 Flower Arrangements 1,583.40 8.40 13,295.63
Documentation 3,298.75 90.01 296,923.79 Documentation 2,639.00 6.78 17,879.28
Balloons 197.93 23.87 4,725.42 Balloons 158.34 1.80 284.54
Doves 131.95 11.52 1,519.61 Doves 105.56 0.87 91.50
Tombstone 2,639.00 26.62 70,253.69 Tombstone 2,111.20 2.00 4,230.33
Cemetery 26,390.00 118.15 3,117,951.82 Cemetery 21,112.00 8.89 187,747.64
Obituary 791.70 69.38 54,926.24 Obituary 633.36 5.22 3,307.39
TOTAL 5,808,720.08 349,772.39
 118

Schedule 4 – Installment Accounts Receivable

2017 2018 2019 2020 2021 TOTAL
Installment Receivables, beg 18,263,516.28 27,669,227.16 31,128,184.95 33,117,067.41
Installment Sales 30,439,193.80 30,895,781.70 31,359,218.43 31,829,606.71 32,307,050.81 156,830,851.44
Collections
2017 12,175,677.52 9,131,758.14 6,087,838.76 1,521,959.69 1,521,959.69 30,439,193.80
2018 12,358,312.68 9,268,734.51 6,179,156.34 1,544,789.09 29,350,992.62
2019 12,543,687.37 9,407,765.53 6,271,843.69 28,223,296.59
2020 12,731,842.68 9,548,882.01 22,280,724.69
2021 12,922,820.32 12,922,820.32
TOTAL COLLECTIONS 12,175,677.52 21,490,070.82 27,900,260.64 29,840,724.24 31,810,294.79 123,217,028.02
Installment Receivables, end 18,263,516.28 27,669,227.16 31,128,184.95 33,117,067.41 33,613,823.42

Schedule 5 – Deferred and Realized Gross Profit

2017 2018 2019 2020 2021 TOTAL
Deferred Gross Profit, beg
2017 9,217,656.15 5,530,593.69 2,765,296.85 921,765.62 460,882.81
2018 9,355,920.99 5,613,552.60 2,806,776.30 935,592.10
2019 9,496,259.81 5,697,755.88 2,848,877.94
2020 9,638,703.71 5,783,222.22
2021 9,783,284.26
TOTAL DEFERRED GROSS PROFIT, END 9,217,656.15 14,886,514.68 17,875,109.25 19,065,001.50 19,811,859.33
Realized Gross Profit
2017 3,687,062.46 2,765,296.85 1,843,531.23 460,882.81 460,882.81 9,217,656.15
2018 3,742,368.40 2,806,776.30 1,871,184.20 467,796.05 8,888,124.94
2019 3,798,503.92 2,848,877.94 1,899,251.96 8,546,633.83
2020 3,855,481.48 2,891,611.11 6,747,092.59
2021 3,913,313.70 3,913,313.70
TOTAL REALIZED GROSS PROFIT 3,687,062.46 6,507,665.24 8,448,811.45 9,036,426.43 9,632,855.63
Deferred Gross Profit, end
2017 5,530,593.69 2,765,296.85 921,765.62 460,882.81 -
2018 5,613,552.60 2,806,776.30 935,592.10 467,796.05
2019 5,697,755.88 2,848,877.94 949,625.98
2020 5,783,222.22 2,891,611.11
2021 5,869,970.56
TOTAL DEFERRED GROSS PROFIT, END 5,530,593.69 8,378,849.44 9,426,297.80 10,028,575.07 10,179,003.70
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Schedule 6 - Office Supplies

2017 2018 2019 2020 2021
Pre-operating 42,522.00 42,887.00 43,252.00 43,617.00 43,983.00
Bond Paper Long (Long) 1,505.00 1,527.58 1,550.49 1,573.75 1,597.35 1,621.31
Bond Paper (Short) 1,295.00 1,314.43 1,334.14 1,354.15 1,374.47 1,395.08
Ballpen 330.00 334.95 339.97 345.07 350.25 355.50
Pencil 76.75 77.90 79.07 80.26 81.46 82.68
Eraser 38.75 39.33 39.92 40.52 41.13 41.74
Sharpener 10.00 10.15 10.30 10.46 10.61 10.77
Folder (Long) 350.00 355.25 360.58 365.99 371.48 377.05
Folder (Short) 200.00 203.00 206.05 209.14 212.27 215.46
Stapler with Staple Wire 120.00 121.80 123.63 125.48 127.36 129.27
Ruler 33.00 33.50 34.00 34.51 35.02 35.55
Cutter 60.00 60.90 61.81 62.74 63.68 64.64
Scissors 92.50 93.89 95.30 96.73 98.18 99.65
Plastic Envelope (Long) 350.00 355.25 360.58 365.99 371.48 377.05
Plastic Envelope (Short) 300.00 304.50 309.07 313.70 318.41 323.19
Glue 103.50 105.05 106.63 108.23 109.85 111.50
Cash voucher 272.50 276.59 280.74 284.95 289.22 293.56
Petty cash voucher 35.00 35.53 36.06 36.60 37.15 37.70
Columnar book 552.00 560.28 568.68 577.21 585.87 594.66
Journal book 3,720.00 3,775.80 3,832.44 3,889.92 3,948.27 4,007.50
Ledger 528.00 535.92 543.96 552.12 560.40 568.81
Payroll sheet 231.00 234.47 237.98 241.55 245.17 248.85
Record book 2,148.00 2,180.22 2,212.92 2,246.12 2,279.81 2,314.01
Time card 1,980.00 2,009.70 2,039.85 2,070.44 2,101.50 2,133.02
Wall clock with battery 261.00 264.92 268.89 272.92 277.02 281.17
Umbrella 390.00 395.85 401.79 407.81 413.93 420.14
Padlock 1,650.00 1,674.75 1,699.87 1,725.37 1,751.25 1,777.52
Broom 575.75 584.39 593.15 602.05 611.08 620.25
Trash can 1,575.00 1,598.63 1,622.60 1,646.94 1,671.65 1,696.72
Trash bag 350.00 355.25 360.58 365.99 371.48 377.05
Toilet paper 436.00 442.54 449.18 455.92 462.75 469.70
Dusters 150.00 152.25 154.53 156.85 159.20 161.59
Mop with Squeezer 1,242.50 1,261.14 1,280.05 1,299.26 1,318.74 1,338.53
 120

Dust pan 190.50 193.36 196.26 199.20 202.19 205.22

Pail 500.00 507.50 515.11 522.84 530.68 538.64
Rags 1,035.00 1,050.53 1,066.28 1,082.28 1,098.51 1,114.99
Fire extinguisher 4,199.00 4,261.99 4,325.91 4,390.80 4,456.67 4,523.52
Restroom sign 820.00 832.30 844.78 857.46 870.32 883.37
Entrance/Exit sign 390.00 395.85 401.79 407.81 413.93 420.14
Open/Close sign 150.00 152.25 154.53 156.85 159.20 161.59
Tool box 200.00 203.00 206.05 209.14 212.27 215.46
Tool kit 1,685.00 1,710.28 1,735.93 1,761.97 1,788.40 1,815.22
Total Office Supplies 30,130.75 30,582.71 31,041.45 31,507.07 31,979.68 32,459.38

Schedule 7 - Funeral Supplies

2017 2018 2019 2020 2021
Pre-operating 42,537.00 42,538.00 42,539.00 42,540.00 42,541.00
Surgical Masks 1,000.00 1,015.00 1,030.23 1,045.68 1,061.36 1,077.28
Surgical Gloves 7,000.00 7,105.00 7,211.58 7,319.75 7,429.54 7,540.99
Surgical Scissors 6,000.00 6,090.00 6,181.35 6,274.07 6,368.18 6,463.70
Lab Gown 600.00 609.00 618.14 627.41 636.82 646.37
Needles 3,500.00 3,552.50 3,605.79 3,659.87 3,714.77 3,770.49
Thread 3,346.21 3,396.40 3,447.35 3,499.06 3,551.55 3,604.82
Helmet 4,200.00 4,263.00 4,326.95 4,391.85 4,457.73 4,524.59
Plastic Bags 1,325.00 1,344.88 1,365.05 1,385.52 1,406.31 1,427.40
Make Up 2,486.00 2,523.29 2,561.14 2,599.56 2,638.55 2,678.13
Cotton 1,160.00 1,177.40 1,195.06 1,212.99 1,231.18 1,249.65
Embalming Fluid 177,033.00 179,688.50 182,383.82 185,119.58 187,896.37 190,714.82
Total 207,650.21 210,764.96 213,926.44 217,135.33 220,392.36 223,698.25

Schedule 8 - Property, Plant, & Equipment Depreciation

2017 2018 2019 2020 2021
Useful Annual
Cost
Life Depreciation
Building 20 8,000,000.00 7,600,000.00 7,200,000.00 6,800,000.00 6,400,000.00 6,000,000.00 400,000.00
Equipment
Human Incinerator 20 3,000,000.00 2,850,000.00 2,700,000.00 2,550,000.00 2,400,000.00 2,250,000.00 150,000.00
 121

Cremated Remains Processor 20 157,000.00 149,150.00 141,300.00 133,450.00 125,600.00 117,750.00 7,850.00
Crematory Cooler 15 219,000.00 204,400.00 189,800.00 175,200.00 160,600.00 146,000.00 14,600.00
Embalming Machine 18 96,500.00 91,138.89 85,777.78 80,416.67 75,055.56 69,694.44 5,361.11
Air Conditioner 5 18,800.00 15,040.00 11,280.00 7,520.00 3,760.00 - 3,760.00
Desktop Computer 8 14,850.00 12,993.75 11,137.50 9,281.25 7,425.00 5,568.75 1,856.25
Funeral Car 15 150,000.00 140,000.00 130,000.00 120,000.00 110,000.00 100,000.00 10,000.00
Printer 10 4,000.00 3,600.00 3,200.00 2,800.00 2,400.00 2,000.00 400.00
Biometric Scanner 8 1,830.00 1,601.25 1,372.50 1,143.75 915.00 686.25 228.75
Security Camera 6 950.00 791.67 633.33 475.00 316.67 158.33 158.33
Digital Camera 10 17,600.00 15,840.00 14,080.00 12,320.00 10,560.00 8,800.00 1,760.00
Total 11,680,530.00 11,084,555.56 10,488,581.11 9,892,606.67 9,296,632.22 8,700,657.78 595,974.44

Schedule 9 - Furnitures and Fixtures

Useful Life Pre-Operating 2017 2018 2019 2020 2021
Monoblock Chairs 10 21,000.00 18,900.00 16,800.00 14,700.00 12,600.00 10,500.00
Computer Chairs 10 3,500.00 3,150.00 2,800.00 2,450.00 2,100.00 1,750.00
Office Tables 20 5,000.00 4,750.00 4,500.00 4,250.00 4,000.00 3,750.00
Sofa Set 15 5,000.00 4,666.67 4,333.33 4,000.00 3,666.67 3,333.33
Clock 15 2,800.00 2,613.33 2,426.67 2,240.00 2,053.33 1,866.67
Altar 25 6,799.00 6,527.04 6,255.08 5,983.12 5,711.16 5,439.20
Casket Lift Support 15 7,680.00 7,168.00 6,656.00 6,144.00 5,632.00 5,120.00
Torchiere Lamp 5 17,250.00 13,800.00 10,350.00 6,900.00 3,450.00 -
Chapel/Devotional Set 15 25,000.00 23,333.33 21,666.66 19,999.99 18,333.32 16,666.65
Body Tray 10 15,300.00 13,770.00 12,240.00 10,710.00 9,180.00 7,650.00
Filing Cabinet 20 7,600.00 7,220.00 6,840.00 6,460.00 6,080.00 5,700.00
Total 116,929.00 105,898.37 94,867.74 83,837.11 72,806.48 61,775.85
 122

Schedule 10 -Trademark Amortization

Year Amortization Balance Useful Life
30,000.00 10
2017 3,000.00 27,000.00
2018 3,000.00 24,000.00
2019 3,000.00 21,000.00
2020 3,000.00 18,000.00
2021 3,000.00 15,000.00
2022 3,000.00 12,000.00
2023 3,000.00 9,000.00
2024 3,000.00 6,000.00
2025 3,000.00 3,000.00
2026 3,000.00 -
Annual Amortization 3,000.00

Schedule 12 – Loans Payable

Pre-operating 2017 2018 2019 2020 2021
Balance, beg 4,480,200.00 4,480,200.00 3,480,200.00 2,610,150.00 1,740,100.00 870,050.00
Current 1,000,000.00 870,050.00 870,050.00 870,050.00 870,050.00
Non-Current 3,480,200.00 3,610,150.00 2,610,150.00 1,740,100.00 870,050.00 870,050.00
Paid 1,000,000.00 870,050.00 870,050.00 870,050.00 870,050.00
Balance, end 4,480,200.00 3,480,200.00 2,610,150.00 1,740,100.00 870,050.00 -
Interest Expense - 425,619.00 330,619.00 247,964.25 165,309.50 82,654.75
 123

Schedule 13 – Payroll
Payroll 2017
Deductions

Salary Total 13th

Gross Pay SSS Philhealth PAG-IBIG Withholding Net Pay
Increase Deductions month pay
Tax
ER EE ER EE ER EE

General Manager
240,000.00 12,720.00 6,000.00 3,000.00 3,000.00 4,800.00 4,800.00 12,000.00 25,800.00 20,000.00 234,200.00
Finance Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
Operations Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
TOTAL 672,000.00 38,160.00 18,000.00 8,400.00 8,400.00 13,440.00 13,440.00 33,600.00 73,440.00 56,000.00 654,560.00

Payroll 2017
Deductions
Sales Total 13th
Gross Pay SSS PAG-IBIG Net Pay
Commission Philhealth Withholding Deductions month pay
ER EE ER EE ER EE tax

Administrative Officer
132,000.00 9,327.60 4,400.40 1,650.00 1,650.00 2,640.00 2,640.00 6,600.00 8,690.40 22,000.00 123,309.60
Funeral Director
120,000.00 8,480.40 3,999.60 1,500.00 1,500.00 2,400.00 2,400.00 6,000.00 7,899.60 20,000.00 112,100.40
Sales Officer 1
107,940.00 30,439.19 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 2
107,940.00 30,439.19 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 3
107,940.00 30,439.19 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 4
107,940.00 30,439.19 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 5
107,940.00 30,439.19 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
 124

Embalmer/Beautician1 360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
Embalmer/Beautician
2 360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
Funeral Attendant 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 3
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 4
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 5
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 6
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 7
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 8
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 9
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 10
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Cashier
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
TOTAL 2,914,920.00 181,056.00 85,200.00 27,150.00 27,150.00 58,298.40 58,298.40 145,746.00 170,648.40 485,820.00 2,744,271.60
 125

Payroll 2018
Deductions
Salary Witholding Total 13th
Gross Pay SSS Philhealth PAG-IBIG Net Pay
Increase Tax Deductions month pay
ER EE ER EE ER EE

General Manager
240,000.00 12,720.00 6,000.00 3,000.00 3,000.00 4,800.00 4,800.00 12,000.00 25,800.00 20,000.00 234,200.00
Finance Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
Operations Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
TOTAL 672,000.00 38,160.00 18,000.00 8,400.00 8,400.00 13,440.00 13,440.00 33,600.00 73,440.00 56,000.00 654,560.00

Payroll 2018
Deductions
Sales Total 13th
Gross Pay SSS PAG-IBIG Net Pay
Commission Philhealth Withholding Deductions month pay
ER EE ER EE ER EE tax
Administrative
Officer 132,000.00 9,327.60 4,400.40 1,650.00 1,650.00 2,640.00 2,640.00 6,600.00 8,690.40 22,000.00 123,309.60
Funeral Director
120,000.00 8,480.40 3,999.60 1,500.00 1,500.00 2,400.00 2,400.00 6,000.00 7,899.60 20,000.00 112,100.40
Sales Officer 1
107,940.00 30,895.78 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 2
107,940.00 30,895.78 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 3
107,940.00 30,895.78 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 4
107,940.00 30,895.78 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 5
107,940.00 30,895.78 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
1
 126

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
2
Funeral Attendant 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 3
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 4
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 5
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 6
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 7
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 8
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 9
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant
10 107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Cashier
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
TOTAL 2,914,920.00 181,056.00 85,200.00 27,150.00 27,150.00 58,298.40 58,298.40 145,746.00 170,648.40 485,820.00 2,744,271.60
 127

Payroll 2019
Deductions
Salary Witholding Total 13th
Gross Pay SSS Philhealth PAG-IBIG Net Pay
Increase Tax Deductions month pay
ER EE ER EE ER EE

General Manager
240,000.00 12,720.00 6,000.00 3,000.00 3,000.00 4,800.00 4,800.00 12,000.00 25,800.00 20,000.00 234,200.00
Finance Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
Operations Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
TOTAL 672,000.00 38,160.00 18,000.00 8,400.00 8,400.00 13,440.00 13,440.00 33,600.00 73,440.00 56,000.00 654,560.00

Payroll 2019
Deductions
Sales Total 13th
Gross Pay SSS PAG-IBIG Net Pay
Commission Philhealth Withholding Deductions month pay
ER EE ER EE ER EE tax
Administrative
Officer 132,000.00 9,327.60 4,400.40 1,650.00 1,650.00 2,640.00 2,640.00 6,600.00 8,690.40 22,000.00 123,309.60
Funeral Director
120,000.00 8,480.40 3,999.60 1,500.00 1,500.00 2,400.00 2,400.00 6,000.00 7,899.60 20,000.00 112,100.40
Sales Officer 1
107,940.00 31,359.22 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 2
107,940.00 31,359.22 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 3
107,940.00 31,359.22 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 4
107,940.00 31,359.22 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 5
107,940.00 31,359.22 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
1
 128

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
2
Funeral Attendant 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 3
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 4
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 5
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 6
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 7
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 8
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 9
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant
10 107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Cashier
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
TOTAL 2,914,920.00 181,056.00 85,200.00 27,150.00 27,150.00 58,298.40 58,298.40 145,746.00 170,648.40 485,820.00 2,744,271.60
 129

Payroll 2020
Deductions
Salary Witholding Total 13th
Gross Pay SSS Philhealth PAG-IBIG Net Pay
Increase Tax Deductions month pay
ER EE ER EE ER EE

General Manager
240,000.00 12,720.00 6,000.00 3,000.00 3,000.00 4,800.00 4,800.00 12,000.00 25,800.00 20,000.00 234,200.00
Finance Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
Operations Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
TOTAL 672,000.00 38,160.00 18,000.00 8,400.00 8,400.00 13,440.00 13,440.00 33,600.00 73,440.00 56,000.00 654,560.00

Payroll 2020
Deductions
Sales Total 13th
Gross Pay SSS PAG-IBIG Net Pay
Commission Philhealth Withholding Deductions month pay
ER EE ER EE ER EE tax
Administrative
Officer 132,000.00 9,327.60 4,400.40 1,650.00 1,650.00 2,640.00 2,640.00 6,600.00 8,690.40 22,000.00 123,309.60
Funeral Director
120,000.00 8,480.40 3,999.60 1,500.00 1,500.00 2,400.00 2,400.00 6,000.00 7,899.60 20,000.00 112,100.40
Sales Officer 1
107,940.00 31,829.61 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 2
107,940.00 31,829.61 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 3
107,940.00 31,829.61 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 4
107,940.00 31,829.61 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 5
107,940.00 31,829.61 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
1
 130

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
2
Funeral Attendant 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 3
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 4
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 5
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 6
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 7
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 8
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 9
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant
10 107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Cashier
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
TOTAL 2,914,920.00 181,056.00 85,200.00 27,150.00 27,150.00 58,298.40 58,298.40 145,746.00 170,648.40 485,820.00 2,744,271.60
 131

Payroll 2021
Deductions
Salary Witholding Total 13th
Gross Pay SSS Philhealth PAG-IBIG Net Pay
Increase Tax Deductions month pay
ER EE ER EE ER EE

General Manager
240,000.00 12,720.00 6,000.00 3,000.00 3,000.00 4,800.00 4,800.00 12,000.00 25,800.00 20,000.00 234,200.00
Finance Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
Operations Manager
216,000.00 12,720.00 6,000.00 2,700.00 2,700.00 4,320.00 4,320.00 10,800.00 23,820.00 18,000.00 210,180.00
TOTAL 672,000.00 38,160.00 18,000.00 8,400.00 8,400.00 13,440.00 13,440.00 33,600.00 73,440.00 56,000.00 654,560.00

Payroll 2021
Deductions
Sales Total 13th
Gross Pay SSS PAG-IBIG Net Pay
Commission Philhealth Withholding Deductions month pay
ER EE ER EE ER EE tax
Administrative
Officer 132,000.00 9,327.60 4,400.40 1,650.00 1,650.00 2,640.00 2,640.00 6,600.00 8,690.40 22,000.00 123,309.60
Funeral Director
120,000.00 8,480.40 3,999.60 1,500.00 1,500.00 2,400.00 2,400.00 6,000.00 7,899.60 20,000.00 112,100.40
Sales Officer 1
107,940.00 32,307.05 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 2
107,940.00 32,307.05 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 3
107,940.00 32,307.05 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 4
107,940.00 32,307.05 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Sales Officer 5
107,940.00 32,307.05 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
1
 132

Embalmer/Beautician
360,000.00 12,720.00 6,000.00 1,200.00 1,200.00 7,200.00 7,200.00 18,000.00 14,400.00 60,000.00 345,600.00
2
Funeral Attendant 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 3
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 4
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 5
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 6
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 7
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 8
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant 9
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Funeral Attendant
10 107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Cashier
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 1
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
Driver 2
107,940.00 7,656.00 3,600.00 1,200.00 1,200.00 2,158.80 2,158.80 5,397.00 6,958.80 17,990.00 100,981.20
TOTAL 2,914,920.00 181,056.00 85,200.00 27,150.00 27,150.00 58,298.40 58,298.40 145,746.00 170,648.40 485,820.00 2,744,271.60
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Schedule 14 – Other Income

2017 2018 2019 2020 2021
TRADING SECURITIES, 3.9% Php11,500,000.00 Php 10,200,000.00 Php 15,400,000.00 Php17,000,000.00 Php18,700,000.00

RENT INCOME 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00

INTEREST INCOME 448,500.00 397,800.00 600,600.00 663,000.00
OTHER INCOME Php 120,000.00 Php 568,500.00 Php 517,800.00 Php 720,600.00 783,000.00
 134

INVESTMENT ANALYSIS
 135

LIQUIDITY RATIOS
2017 2018 2019 2020 2021
Current Ratio 28.52 46.50 63.86 81.29 492.06
Quick Ratio 27.91 45.88 63.23 80.65 488.84

Liquidity ratios show the relationship of a firm’s cash and other current assets to its

current liabilities. These ratios help determine whether the firm can pay off its debts as they

come due within a year. The ratios generated show that Libing Labi Da Loca can cover the

liabilities with the assets expected to be converted in the near future. The Loans payable were

already settled during the 4th year which resulted to a drastic increase in both liquidity ratios in

the 5th year. In addition, the quick ratio also shows that the firm could pay its currently maturing

liabilities without relying heavily on its inventories.

ASSET MANAGEMENT RATIOS

2017 2018 2019 2020 2021
Fixed Assets Turnover
Ratio 5.01 5.30 5.61 5.95 6.33

Total Assets Turnover

Ratio 1.64 1.18 0.94 0.78 0.67

Inventory Turnover
Ratio 114.74 114.74 114.74 114.74 114.74

Asset management ratios measure how effectively and efficiently the company manages

its assets. Libing Labi Da Loca has an increasing trend of fixed assets turnover because as the

plant and equipment are used it depreciates simultaneous to the sales that increase each year. The

total assets turnover, which measures the turnover of all the firm’s assets, is somewhat

decreasing for Libing Labi Da Loca which indicates that it is not generating enough sales as

compared to its total assets. The inventory turnover ratio indicates a very high turnover of the

firm’s inventory which is justified by its relatively high sales.

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DEBT MANAGEMENT RATIOS

2016 2017 2018 2019 2020
Total Debt to total
Assets 32.73 % 28.02% 22.92% 18.88% 15.63%

Times-Interest-
Earned-Ratio 32.43 49.92 73.03 114.62 238.29

Debt management ratios indicate how effectively the firm manages its debt and its ability

to repay its long-term debt. As shown in the table above, the debt to assets ratio is decreasing

because the firm continues to pay the principal amount of the loans payable every year until the

4th year. Furthermore, the firm relies more on equity financing rather than borrowing from its

creditors.

PROFITABILITY RATIOS
2017 2018 2019 2020 2021
Operating Margin 26.47% 30.95% 33.31% 34.22% 34.94%

Net Profit Margin 18.14% 21.37% 23.10% 23.81% 24.39%

Return on Total
Assets 29.82% 25.30% 21.68% 18.59% 16.34%

Basic Earning Power 43.53% 36.65% 31.26% 26.72% 23.41%

Return on Fixed
Assets 90.85% 113.18% 129.57% 141.72% 154.33%

Return on Equity 44.33% 35.15% 28.12% 22.92% 19.37%

The operating margin ratios are of average values because Libing Labi Da Loca’s life

plan rates are quite lower as compared to that of the competitors’. The net profit margin shows

that even though LLDL is financed with only 29.63% debt along with the interest charge, it is

still able to generate a substantial profit that grows every year. Return on Total Assets or ROA

indicates how the firm uses its assets in order to generate profit. It is averagely lower because the
 137

firm uses equipment that is relatively expensive. Basic Earnings Power or BEP shows the

company’s ability to generate operating income. It uses the EBIT which is the earnings before

the inclusion of interest and tax. With its decreasing trend, it is said to be quite unfavorable.

Return on Fixed Assets yielded a markedly high percentage which proves the company’s

efficiency in using its fixed assets while producing a much higher amount of profit.
 138

Net Present Value

0 1 2 3 4 5

Outflow (22,699,200.00)

Inflow 14,410,871.31 17,115,278.55 18,719,571.89 19,557,190.21 20,306,095.53

Net Cash Flow (22,699,200.00) 14,410,871.31 17,115,278.55 18,719,571.89 19,557,190.21 20,306,095.53

NPV 49,114,505.74

Payback Period

0 1 2 3 4 5

Cash Inflow (Outflow) (22,699,200.00) 14,410,871.31 17,115,278.55 18,719,571.89 19,557,190.21 20,306,095.53

Balance (22,699,200.00) (8,288,328.69) 8,826,949.86

Payback Period 1 year and 7 months

Internal Rate of Return

0 1 2 3 4 5

Cash Inflow (Outflow) (22,699,200.00) 14,410,871.31 17,115,278.55 18,719,571.89 19,557,190.21 20,306,095.53

IRR 67.54%
 139

Libing Labi Da Loca resulted to a positive NPV of PHP 49,114,505.74 proving that the

business is feasible. This means that taking into account the time value of money, and using the

cost of capital, the business can actually earn a return that is greater than the initial outlay within

a period of five years.

The Payback Period measures the length of time it will take for a certain project to

recover the initial investment. As shown in the previous table, the firm will recover the amount

of the initial investment in the duration of 1 year and 7 months which is favorable.

The Internal Rate of Return is the discount rate that equates the NPV of an investment

opportunity with $0 as the present value of cash inflows equals the initial investment. Libing

Labi Da Loca’s IRR of 67.54% is an indicator that the return on the investment exceeds the cost

of engaging in it. Therefore, the business is indeed feasible.

 140

Breakeven Point Analysis

This breakeven point analysis refers only to the regular revenues both from sales and death care

service revenues.

2017 2018 2019 2020 2021

Customers 256 256 256 256 256
Sales 38,560,886.39 39,139,299.69 39,726,389.19 40,322,285.02 40,927,119.30
Service Revenues 7,100,343.59 7,206,848.74 7,314,951.47 7,424,675.74 7,536,045.88

TOTAL 45,661,229.98 46,346,148.43 47,041,340.66 47,746,960.77 48,463,165.18

Variable Costs:

Funeral Supplies 32,148.07 32,630.29 33,119.75 33,616.54 34,120.79

Water 48,000.00 48,720.00 49,450.80 50,192.56 50,945.45

Electricity 26,666.67 27,066.67 27,472.67 27,884.76 28,303.03

Sales Commission 310,632.39 315,291.88 320,021.26 324,821.58 329,693.90

Office Supplies 30,582.71 31,041.45 31,507.07 31,979.68 32,459.37

TOTAL VARIABLE
COSTS 448,029.84 454,750.29 461,571.54 468,495.12 475,522.54

Fixed Costs

Salaries Expense 3,398,831.60 3,398,831.60 3,398,831.60 3,398,831.60 3,398,831.60

Employee Benefits 24,525.51 24,525.51 24,525.51 24,525.51 24,525.51

Outsourcing Cost 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

Insurance Expense 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00

Telephone and Internet 23,976.00 24,335.64 24,700.67 25,071.18 25,447.25

Organization Cost 91,650.00 - - - -

Repairs and Maintenance 72,000.00 73,080.00 74,176.20 75,288.84 76,418.18

Miscellaneous Expense 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00

Amortization and
Depreciation 610,005.07 610,005.70 610,005.70 610,005.70 610,005.70

Legal and Filing Fees 2,000.00 - - - -

TOTAL FIXED COSTS 4,604,488.18 4,512,278.45 4,513,739.68 4,515,222.83 4,516,728.23

 141

Sales per customer 178364.18 181039.64 183755.24 186511.57 189309.24

Variable per customer 1750.12 1776.37 1803.01 1830.06 1857.51
Breakeven Point
(customers) 26 25 25 24 24
Breakeven Point in
Pesos 4,650,115.30 4,556,991.84 4,558,467.55 4,559,965.40 4,561,485.72

Breakeven: 2017 2018 2019 2020 2021

Sales 4,650,115.30 4,556,991.84 4,558,467.55 4,559,965.40 4,561,485.72
VC 45,627.12 44,713.39 44,727.87 44,742.57 44,757.48
FC 4,604,488.18 4,512,278.45 4,513,739.68 4,515,222.83 4,516,728.23
Net Income 0.00 0.00 0.00 0.00 0.00
 142

Chapter 6

SOCIO – ECONOMIC AND ENVIRONMENTAL ASPECT

This chapter covers the aggregate significance and relevance of Libing Labi da Loca to

its internal and external environment. Moreover, the vision and aspirations of the business with

regards to its contributions to the society will be further expounded in this chapter.

Libing Labi da Loca as a business promotes two-way, give and take relationship with the

society and the economy. As much as possible, the business stands to prioritize its employees, its

customers, and the environment equally. The business aims that aside from generating profits, it

would give suitable benefits to the environment through specific programs and activities

organized by the business. Moreover, the management is always open for feedback and

suggestions from important contributors of the business like the employees and customers.

In all forms of business, customers are greatly valued since without them, a business will

no longer operate. Libing Labi da Loca’ goal is to give customers exactly what they paid for.

Customers availing life plans will have appropriate rebates for their investments. Moreover,

senior citizen clients will be given 20% discounts in basic funeral packages. The business, more

importantly, intends to at least bring out the positivity out of the loss in a respectful manner.

For Libing Labi da Loca’s employees, the business will conduct seminars for interested

individuals who desire to work for the business. The business aspires to let future employees

grow in knowledge through the help of the business.

 143

With regards to Libing Labi da Loca’s contribution to the society, there will be programs

that the business will implement as part of its Corporate Social Responsibility (CSR). The

business is eyeing on taking part in the lives of others particularly to those that are less fortunate.

With that, the business will give out hygiene kits at regular intervals. They may not be connected

with the business as customers nor employees, but they will be reasonably benefited of such

program.

Through the existence of Libing Labi da Loca in the society, it encourages proper

hygiene in managing the dead. The business is fully aware of the risks that go with neglecting

proper care of the dead. Proper disposal of wastes are observed which keeps the health status of

the workers as well as those residing near the location good. Aside from that, the business made

sure that the location is far from residential areas since complicated processes involved may

bring out negative effects to them.

Since Libing Labi da Loca takes into consideration the laws under the Philippine

Constitution, the business hereby assures the public that all operations conducted by the business

is in accordance with the underlying laws. The significant laws that the business purports to

follow are Solid Waste Management Act (RA 9003) and Chapter XXI – “Disposal of Dead

Persons” of the Code on Sanitation of the Philippines (P.D. 856).

Wastes from embalming however are disposed properly by the embalmer according to

the policies in NFDA Funeral Home medical waste protocol

 144

The Lasallian values are fully incorporated in the operations of Libing Labi da Loca. The

business’ vision and mission are based on these values which the management believes

beneficial to both sides. Furthermore, the business is committed to live out these values as long

as the business is operating.

 145

Chapter 7

CONCLUSIONS AND RECOMMENDATIONS

This chapter entails the collective summary of the study. It concludes the entire feasibility

study in all its aspects, if objectives set up in the first chapter have been met. Furthermore, it

answers to whether or not the study is feasible and recounts recommendations reached by the

proponents in conducting the study.

The main objective of this study is to determine if Libing Labi da Loca is a feasible

proposal as a business that will offer themed funeral services in Bacolod City. To accomplish the

goal, the proponents have determined the business target market, conducted a survey relative to

questions in the statement of objective, and made assumptions based on the gathered data for

analyses.

Taking into consideration the different aspects of the business that includes management,

technical, marketing, financial and socioeconomic, this study aims to ascertain how suitable this

business proposal can be.

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Management Aspect

Libing Labi Da Loca is a partnership that aims to provide themed funeral and death care

services to its target market, giving them quality products and services beyond their satisfaction,

showing Libing Labi Da Loca’s utmost value and respect to life.

The proponents have agreed to being established as a partnership for it is relatively easy

for start-up. This will enable the company to be cost-effective, with greater potential in acquiring

capital, lower organizational costs, and wider pool of knowledge, skills and contacts.

In terms of management standards, rules and regulations have been established by the

company in order to deliver the business mission fittingly. Protocols have been set up to ensure

security with regards to restricted areas, unauthorized personnel, equipment handling and use of

company property. Policies have been customary on service limitations, waste management in

accordance with the law, and health and safety maintenance within the facility. More

importantly, standards in hiring and terminating employees have also been founded firmly

because the proponents believe that employees build the core of the business therefore the need

to find a high-caliber workforce to meet company goals.

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Technical Aspect

Libing Labi da Loca offers funeral services that involve wake vigils which mandatorily

opens the business facility for 24 hours based on its nature. Management has imposed different

phases to distinguish activities from normal operating hours (8:00 to 5:00 pm). On the start of the

hour before the end of operations, policies have been assigned on how employees (attendants and

security guards) on duty should accommodate customers and guests and cater to their needs from

4:00 to 8:00 am of the next day (before the start of daily normal operations), payment of which

services is accrued for the next day since monetary and accounting transactions are handled

during administrative hours only. The attendants adhere to these company regulations and ensure

that the company premises are kept conserved with regards to cleanliness, sanitation, and

functionality of equipment to be used for business operations.

The flow of normal service operations begin with the security guard, who logs in clients’

names upon entering the company premises, the administrative clerk then handles these clients’

inquiries, and pass them on to the cashier, who receives payment from customers when required.

Just-in-time operations such as embalming, wakes, funeral ceremonies, cremation and burials are

part of this phase of business operations whenever there is a client availing these services, each

of which reflect their own flow of operations.

Disregarding just-in-time operations, there are policies to be followed upon closing phase

such as the counting of revenue, review of existing inventory, and reporting of transactions to the

managers who also prepare summary reports. Petty cash is safely loaded into the vault,
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transactions recorded correctly, equipment checked, embalming and cremation facilities cleaned

and locked up while guards on shift safeguard the premises, and attendants stay with the families

during wake vigils to continuously attend to their needs.

It is recommended by the proponents that management should conduct periodic

overviews and evaluation of the company’s employees to make sure that their different functions

are met accordingly in order to maximize business potentials.

Marketing Aspect

A survey was conducted in Bacolod City, attending a total of 101 respondents with ages

ranging from 18 to 50 years old, targeting young professionals and adults as potential target

markets. The proponents used an actual survey questionnaire plotted to gather relevant facts and

opinions in order to determine if there is a viable market for Libing Labi da Loca. Basic

information such as gender, age, occupation, civil status and monthly income were gathered to

help the company decide on the services to offer, and prices to set.

Based on the survey, only 21% are currently availing a life plan. However, majority

(98%) of the respondents are willing to avail specific services of a life plan such as embalming,

coffin burial, wake, and funeral ceremonies but most (60-70 respondents) are simply willing to

pay an amount below Php 60,000 or if on monthly installment, an amount below Php 2000,

thereby suggesting that there is a potential market for life plan investments with cost-convenient

prices. Additionally, the respondents were asked of their preferred mode of interment and 81%
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still prefer the traditional burial versus cremation. Nevertheless, this data renders prospective

clients for both modes of interment or death care services in general. More importantly 89% of

the respondents are interested in availing themed funeral services, almost equally both style

(50%) and color (49%), therefore giving the company a viable market for its kind of services.

The proponents found it advantageous to set up Libing Labi Da Loca in Bacolod since it

offers quality services unique to its kind. The business plans to open new ideas to Bacolodnons,

not to change the traditional culture, but to broaden its nature and seeing the splendor of the

cycle of life that is given to us.

Because of existing competitors and the prospect of new service offers, the business shall

engage in aggressive promotions through the use of social media, ad printing and word-of-

mouth. Mark-up or cost-plus pricing shall be used, in reasonable amounts, to determine the

selling or mark-up price of company services.

Since the funeral service industry embraces a subject of melancholy to people, the

business intends to soften this sensitivity by offering distinctive services to the families and other

clients, for them not to remember the death and loss of a loved one, but to be reminded of the

beauty and greatness of his/her life and character.

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Financial Aspect

The business feasibility is primly measured in the financial aspect which includes the

project’s cost, sources of financing, financial statements, notes and schedules, and overall

investment analysis. A net income of Php 19,696,090.46 was revealed in the income statement

using a five-year projection. A positive net present value (NPV) was resolved in the investment

analysis and favoring cash and discounted payback period that is below the five-year projection.

Therefore, the proponents conclude that Libing Labi da Loca: Death Care Services is a feasible

business prospect.

Based on the five-year projection of finances, Libing Labi da Loca recommends that the

business needs to invest and expand its operations because it yielded a very high capital balance

during year 5.

Socio-economic and Environmental Aspect

Wealth maximization is not only the ultimate purpose of Libing Labi da Loca, but it is

also concerned on how to create a considerable impact and benefit to its stakeholders who are

mainly the customers, employees, environment and the community.

The business aspires to give the best quality of service it can offer to its customers; share

its success to its people who are the employees; act as a model in taking care of the environment;

and to be able to give back to the community. Libing Labi Da Loca’s goal is to build a well-
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established relationship with the public through the CSR programs and activities the business

aims to sponsor. In addition, Libing Labi Da Loca will also embody its mission and vision

through abiding with the policies on which it is governed under the law. Not only that, the

business is also open to feedback and accepts well the opinions and suggestions from the public.

The main foundation of Libing Labi Da Loca is rooted with the Lasallian values

exemplified by its commitment of bringing excellence in the death care industry. Thus, it is the

business’ utmost priority to strive hard and do its best in all aspects of its operations.
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APPENDIX A
Articles of Partnership
of
Libing Labi da Loca Death Care Services

KNOW ALL MEN BY THESE PRESENTS:

That, we the undersigned, all of legal age and residents of the Republic of the Philippines
have agreed to amend a general partnership under the terms and conditions herin after set forth
and subject to the provisions of existing laws of the Republic of the Philippines.

AND WE HEREBY CERTIFY:

ARTICLE I. That the name of the partnership shall be:

Libing Labi da Loca Death Care Services

ARTICLE II. That the principal office of the Partnership shall be located along Alijis
Road, Brgy Alijis, Bacolod City

ARTICLE III. That the names, citizenship and residence of the partners of the said
partnership are as follows.

Name Citizenship Residence

Von Ianelle Aguila Filipino Cadiz City

Victoria Veronica L. Azurin Filipino Bacolod City

Karen Joy G. Cuaterno Filipino Bacolod City

Catherine L. Dela Cerna Filipino Bacolod City

Chloe S. Nartatez Filipino Victorias City

Fritz M. Oligo Filipino Bacolod City

Gianelli Jude S. Sumugat Filipino Victorias City

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ARTICLE IV. That the term for which said partnership is to exist is fifty (50) years from
the original recording of the said partnership by the Securities and Exchange Commission.

ARTICLE V. That the purposes for which said partnership is formed are as follows:
1. To sell death care services packages ready for outright purchase;
2. To offer Life Plans in terms of installment sales; and
3. To conduct any other business related to death care services including its promotion
and advertising.

ARTICLE VI. That the capital of this partnership shall be Fourteen Million Pesos,
Philippines Currency contributed in cash by the partners as follows:

Name Amount Contributed

Von Ianelle T. Aguila P 2,800,000.00

Victoria Veronica L. Azurin P 3,800,000.00

Karen Joy G. Cuaterno P 0.00

Catherine L. Dela Cerna P 0.00

Chloe S. Nartatez P 3,800,000.00

Fritz M. Oligo P 3,800,000.00

Gianelli Jude S. Sumugat P 3,800,000.00

TOTAL P 18,000,000.00

That no transfer which will reduce the ownership of Filipino Citizens to less than the
required percentage of capital shall be recorded in the proper books of the partnership.

ARTICLE VII. That the profits and losses shall be divided pro-rata among the partners.
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ARTICLE VIII. That the firm shall be under the management of Catherine L. Dela
Cerna, as General Manager and as such she shall have charge of the management of the affairs of
the partnership.

ARTICLE IX. That the partners undertake to change the name of the partnership
immediately upon receipt of notice or directive from the Securities and Exchange Commission
that another partnership, corporation or person has acquired a prior right to the use of that name
or that the name has been declared misleading, deceptive, confusingly similar to a registered
name, or contrary to public morals, good customs, or public policy.

IN WITNESS WHEREOF, we have hereunto set our hands this 14th day of February
2016 at Bacolod City, Philippines.

VON IANELLE T. AGUILA VICTORIA VERONICA L. AZURIN

TIN:349-283-384-000 TIN:289-478-479-000

KAREN JOY G. CUATERNO CATHERINE DELA L. CERNA

TIN:849-453-894-000 TIN:437-432-985-000

CHLOE S. NARTATEZ FRITZ M. OLIGO

TIN:758-983-934-000 TIN:891-493-484-000

GIANELLI JUDE S. SUMUGAT

TIN:128-948-423-000
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ACKNOWLEDGEMENT
Republic of the Philippines }
City of Bacolod } S.S.

BEFORE ME, a Notary Public for and in Bacolod City, Philippines, this 14th day of
February 2016, personally came and appeared the following persons with their Community Tax
Certificates as follows:

Name CTC # Date Place Issued

Von Ianelle Aguila 53674847 January 14, 2014 Bacolod City

Victoria Veronica L. Azurin 22758355 March 16, 2014 Bacolod City

Karen Joy G. Cuaterno 22758330 March 16, 2014 Bacolod City

Catherine L. Dela Cerna 24853683 February 27, 2014 Bacolod City

Chloe S. Nartatez 35741326 August 20, 2014 Bacolod City

Fritz M. Oligo 03458504 December 3, 2014 Bacolod City

Gianelli Jude S. Sumugat 18427925 May 30, 2014 Bacolod City

Known to me and to me known to be the same persons who executed the FOREGOING
ARTICLES OF PARTNERSHIP, and they acknowledged to me that the same is their
voluntary act and deed.

WITNESS MY HAND AND SEAL on the date first above written.

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Appendix B

SURVEY QUESTIONNAIRE

Dear Respondent,

Greetings!

We are Accounting Technology students of University of St. La Salle - Bacolod

conducting a feasibility study on FUNERAL PLANNING AND MEMORIAL SERVICES for
this semester. We hope you can lend us a few minutes of your time to answer this short survey in
order to shed light on our topic. Please be assured that all personal information in this survey
form will remain confidential and will be for research purposes only.

Thank you for your cooperation!

Name (Optional): _________________________________________ Gender: ______________

Age: ________ Occupation: ________________ Civil Status: _________________

Directions: Please check the box/es corresponding to your answer/s.

1. How much is your monthly income?

□ Below Php 20 000

□ Php 20 000 – Php 30 000

□ Php 30 000 – Php 40 000

□ Php 40 000 – Php 50 000

□ Php 50 000 and above

2. Are you currently availing a plan with monthly payments? Check all that applies:
□Phone bill □ Cable TV

□Internet □ Gadgets

□ Insurance □Loan
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□Car □ Others (please specify): ___________

3. Are you currently availing a life plan?

□ Yes □ No

4. Which of the following benefits would you want to be included in a funeral services/life
plan? Check all that applies:
□Embalming □ Coffin □ Make up

□Funeral Car □Venue of Wake □Mass

□Online Wake Vigil □ Food for the guests □Flower arrangement

□ Documentation □ Balloons, Doves □Tombstone

□Cemetery □ Obituary □ Paper works (Death Certificate, etc)

□Others (please specify): _______________

5. How much are you willing to spend for memorial/funeral services?

□ Below Php 60 000

□ Php 60 000 – Php 70 000

□ Php 80 000 – Php 90 000

□ Php 90 000 – Php 100 000

□ Above Php 100 000 but less than Php 200 000

6. How much are you willing to pay monthly for a life plan?

□Below Php 2000

□Php 2000 – Php 3000

□Php 3000 – Php 4000

□Php 4000 – Php 5000

□Php 5000 – Php 6000

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□Php 6000 – Php 7000

□Above Php 7000

7. What is your preferred mode of interment?

□ Burial □ Cremation

8. If a Themed Funeral will open in Bacolod City, will you be interested in engaging in
this kind of venture? If YES, please proceed to #10. If NO, please proceed to the next
question.
□ Yes □ No

9. What is/are the reason/s why you will NOT engage in this kind of business?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

10. What type/s of theme are you willing to avail? Check all that applies.
□ Color motif

□ Style motif

□ Others (please specify): __________________

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Appendix C

November 18, 2015

DELMA DECOLONGON
Marketing & Operations Manager
Rolling Hills Memorial Chapels
27th Lacson St. Mandalagan, 6100 Bacolod City, Philippines

Dear Madame:

Greetings!

The University of St. La Salle gives utmost priority to providing quality education to its
students. Anchored on the works and teachings of St. John Baptist De La Salle, it is the
institution’s mission to produce holistic individuals and strive for excellence.

We, as Accounting Technology students from University of St La Salle, are required in

our course to conduct a feasibility study. In line with this, we have chosen Rolling Hills
Memorial Chapels, being one of the most successful business in funeral services, as our model
company.

We are asking your good office if we may be able to conduct an interview about your
company’s operations as reference for the feasibility research.

Your response is highly appreciated through this number: 09071903944.

Thank you for your consideration and God bless!

Respectfully yours,

GIANELLI JUDE S. SUMUGAT

Project Leader

Approved by:

VANESSA JOY MATTI, CPA

Research Adviser
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November 18, 2015

St. Peter’s Memorial Chapel

Dear Madame:

Greetings!

The University of St. La Salle gives utmost priority to providing quality education to its
students. Anchored on the works and teachings of St. John Baptist De La Salle, it is the
institution’s mission to produce holistic individuals and strive for excellence.

We, as Accounting Technology students from University of St La Salle, are required in

our course to conduct a feasibility study. In line with this, we have chosen Rolling Hills
Memorial Chapels, being one of the most successful business in funeral services, as our model
company.

We are asking your good office if we may be able to conduct an interview about your
company’s operations as reference for the feasibility research.

Your response is highly appreciated through this number: 09071903944.

Thank you for your consideration and God bless!

Respectfully yours,

GIANELLI JUDE S. SUMUGAT

Project Leader

Approved by:

VANESSA JOY MATTI, CPA

Research Adviser