I.

Introduction

The Mung bean (Vigna radiata (L.) Wilczek) is one of the most important legume
crops cultivated for its edible seeds and sprouts in South and Southeast Asia. It is in the
Legume family of plants. The mature seeds provide an invaluable source of digestible
protein for humans in places where meat is lacking or where people are mostly
vegetarian (AVRDC, 2012). Mung beans are cooked fresh or dry. They can be eaten
whole or made into flour, soups, porridge, snacks, bread, noodles and ice-cream. Mung
beans can be processed to make starch noodles or soap.

As a food source mung beans have some valuable properties. Products which
need high consistency under high temperature benefit from the heat stable viscosity of
mung bean starch. Mung bean is rich in easily digestible protein (24%). It adds much-
needed diversity to the cereals-based diets of poor. The protein is easily digested and is
of a high quality, making it based food preparations especially good for children, elderly
people and invalids. It also contains vitamin A (94 mg), iron (7.3 mg), calcium (124
mg), zinc (3 mg) and folate (549 mg) per 100 grams dry seeds. Mung beans are also
high in vitamins B1, B2 and C and niacin.

A. Name of the Enterprise

KIKO’S MUNGO BUTTERSCOTCH

B. Location

The Mungo Butterscotch production is located at Santiago Market for easier

distribution of products among buyers and consumers. It will be distributed to different
school canteens of Santiago, to pasalubong center and coffee shops, and at the public
market.

C. Brief Description of the Project

The project to be establish is owned and managed by Ms. Lea G. Villanueva. The
production site will be located at public market for easy distribution and transportation

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of the products. For the product promotion and advertising, the owner will be used
flyers and tarpaulin to introduce the new business.

II. MARKET STUDY

A. Product Description
a. Name of the Product
- Kiko’s Mungo Butterscotch
b. Properties of the Product

Mung bean is the cheapest source of vegetable protein with protein content of
24 percent, rich in vitamins, calcium and sodium, which are usually deficient in
most bean diets. Apart from their nutritional value, mung beans also help in preventing
and controlling certain health issues like diabetes, osteoporosis, heart diseases, anemia
and cancer. Either cooked or sprouted, mung beans are suitable for people of every age
as they are easily digestible. As a result of their high nutritional value and several
health benefits, mung beans are being increasingly incorporated by health-conscious
consumers into their diets.

c. Uses of the Product

- Kiko’s Mungo Butterscotch will serve as food to all consumers at any age.
d. Major Consumers of the Product

- Mungo Butterscotch is designed for the benefit of everyone

especially to the dieticians and health conscious people.
e. Geographical areas of Dispersion
Marketing Segmentation

Key Customers
 Coffee Shop’s
 School canteen’s around Santiago City
 Public Market

B. Demand Analysis

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 Santiago City would yield a high demand for the product Mungo Butterscotch. This
will be known as good food for snacks or merenda and everyone would love it because
of its nutritious taste and content. Especially, it is good for children, elderly people and
invalids.

C. Supply Analysis

The supply of Mungbean for the production will come from San Mateo, Isabela.
Specifically, to the farm owned by Mr. Garcia. The raw materials needed is available in
the market at affordable price.

D. Demand – Supply Analysis

Since the Mungo Butterscotch is a new product that will be introduced in the
market, this will be possible to be produced and have a profitable standing.

E. Marketing Mix
a. Product

Mungo Butterscotch offers a new and innovative product. The goal is to give the
best product to meet the satisfaction of the consumers.

b. Price

Mungo Butterscotch will be sold for ₱5 per pc. and ₱65 per pack (12 pcs.)

c. Place

The main building will be located at Santiago City Public market for the product to
be popular and for easy distribution. The product (Mungo Butterscotch) will be sold at
Santiago City Public Market, School canteen’s and Coffee Shops.

d. Promotion

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 In promoting Mungo Butterscotch, would be through placements of tarpaulins,
food samples and fliers that contains information about the product.

e. People

Since the Kiko’s Mongo Butterscotch is new to the market. I will only hire 4 employees
to do the work as processer, driver and distributor and bookkeeper.

f. Physical

Cost/ monthly Cost/ year

Building Rent P5,000.00 P60,000

Total P60,000

g. Process
Ingredients:
 2 Cups Mung bean Flour
 1 Cup All-purpose Flour
 1.5 Cup Brown Sugar

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  1 Cup Glucose
 1 Cup Butter
 1 Cup Peanut
 2 pcs. Eggs
 1 tsp. Baking Powder
 1 tsp. Vanilla

Procedures
 Prepare all the ingredients and materials.
 Mix all the ingredients except brown sugar.
 Put the butter in a separate mixing bowl and cream it using a
wooden ladle. Add the brown sugar gradually. Add the eggs and
the vanilla and the cream well.
 Add the dry ingredients gradually with continues stirring until soft.
 Put the butterscotch mixture in baking pan. Preheat the oven to
300 degrees Celsius and bake the butterscotch for 15 minutes.
 Removed from the oven and serve.

III. Technical Study

A. Technical Process

Procedure

Canvass of raw Packaging and

materials Slicing Labeling

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Mixing
Preparation
the dry
of Mixing
Mixingthe
all liquid
the
Purchase of
ingredients
materials raw Ingredients
ingredients Distribution of the
materials Baking product
B. Plant Size and Production Schedule

Production Schedule
Mon Tue Wed Thu Fri Sat Sun
Canvassing

Purchasing

Preparation

Processing

Packaging

Selling
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Delivery
 C. Machinery and Equipment
Machinery and
Equipment Unit quantity Price/unit Total Cost Useful life Depreciation cost
Oven 2 set 30,000.00 60,000.00 5 years 12,000.00

Baking pan 10 set 100 1,000.00 5 years 200

Measuring cups 2 set 100 200 5 years 40

Measuring spoons 2 set 100 100 5 years 20

Mixing bowls 2 set 350 700 5 years 140

Spoons 5 doz. 60 300 5 years 60

Plates 50 pcs. 35 1,750.00 5 years 350

Cups 50 pcs. 15 750 5 years 150

Trays 1 set 350 350 5 years 70

LPG (tank) 2 pcs. 1,500.00 3,000.00 10 years 300

Dough mixer 1 20,000.00 20,00.00 10 years 2000

TOTAL 68,150.00 15,330.00

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 Packaging Materials Unit quantity Price/unit Total Cost
Sealer 1 set 2500 2,500.00
Plastic packaging 25 packs 50 1,250.00
Paper bags 25 packs 50 1,250.00
Masking Tape 2 pcs. 35 70
Labels 800 pcs. 2.50/ pc. 2,000.00
TOTAL 7,070.00

D. Plant Location

The production area will be located along the high way with the size of 13 X
10m. The design of building is according to the desire and need of the personnel’s that
are fit for the production, it’s composed of one comfort room, processing area, storage
and packaging area, mini store, an office and washing area.

E. Plant Layout

13m

Storage area
Store

Packaging

10m
CR

Office
Processing area 13m
 F. Building and Facilities

The main building will be located at market for the product to be popular and for
easy distribution among the buyers and consumers.

Unit quantity Price/unit Total Cost

Land Building rent 5000/month 5,000.00

TOTAL: 5,000.00

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Furniture
and
Fixture Unit quantity Price/unit Total Cost Useful life Depreciation cost
Tables 1 set (6 pcs.) 3,000.00 3,000.00 5 years 600
Display
glass 2 pcs. 700 1,400.00 5 years 280
cabinet
Chairs 25 pcs. 250 6,250.00 5 years 1250

TOTAL 10,650.00 2130

G. Raw Materials and Supplies

Price
Raw Unit / Total
materials quantity unit cost Year 1 Year 2 Year 3 Year 4 Year 5

Mungo Flour 100 kg 35 3,500. 42,000. 44,520. 47,191. 50,022. 53,024.

00 00 00 20 67 03
All Purpose 2,600. 31,200. 33,072. 35,056. 37,159. 39,389.
50 kg 52
Flour 00 00 00 32 70 28
3,600. 43,200. 45,792. 48,539. 51,451. 54,539.
Sugar 75 kg 48
00 00 00 52 89 00

50 kg 1,500.00 18000 19,080. 20,224. 21,438. 22,724.

Glucose 30 00 80 29 59

18000 19,080. 20,224. 21,438. 22,724.

Butter 50 kg 30 1,500.00 00 80 29 59
600. 7,200. 7,632. 8,089. 8,575. 9,089.
Egg 100 pcs. 6
00 00 00 92 32 83
Baking 100. 1,200. 1,272. 1,348. 1,429. 1,514.
25 Tbsp. 4
Powder 00 00 00 32 22 97
100. 1,200. 1,272. 1,348. 1,429. 1,514.
Vanilla 25 Tbsp. 4
00 00 00 32 22 97
13,500. 162,000. 171,720. 182,023. 192,944. 204,521.
Total
00 00 00 20 59 27 10
 As years goes by the cost of every inputs is increasing because of inflation.

Office Unit Price/uni Useful Depreciation

Equipment quantity t Total Cost life cost
Laptop 1 pc. 12,500.00 12,500.00 3 years 4166.66667

Printer 1 pc. 5,000.00 5,000.00 3 years 1666.66

Electric fans 2 set 1,000.00 2,000.00 5 years 400

Water
2 set 1,500.00 3,000.00 5 years 600
dispenser
22,500.0
TOTAL 0 6833.327

Office Supplies Unit quantity Price/unit Total Cost

Ball pens 4 pcs. 8 32
Tissue papers 20 packs 15 300
Record books 4 pcs. 60 240
Coupon bond 2 pack 150 300
Folders 2 pack 50 100
Clips 1 pack 35 35
Puncher 1 pc. 150 150
Stapler 2 pcs. 50 100
Staple wire 2 pack 35 75
Storage box 1 pc. 1,500.00 1,500.00
Ink 1 set 75 450
TOTAL 3282

Other Supplies
Unit quantity Price/unit Total Cost
Aprons 15 pcs 50 750

Face mask 24 pcs 20 480

Hairnets 19 pcs 35 665

Gloves 2 boxes 35 70

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 Florescent lamps 5 pcs. 100 500

TOTAL 2465

H. Utilities

Utilities Price/unit Total Cost

Water 700/month 700
Light 1,200/month 1,200
TOTAL 1,900.00

I. Waste Disposal

Garbage disposal are available and are placed in processing area. Residues and waste are
proper segregated. During Tuesday and Saturday, the scheduled waste collection within the
market.

J. Production Cost

Raw materials Unit quantity Price/unit Total cost Year 1

Mungo Flour 100 kg 35 3,500.00 42,000.00
All Purpose Flour 50 kg 52 2,600.00 31,200.00
Sugar 75 kg 48 3,600.00 43,200.00
Glucose 50 kg 30 1,500.00 18000
Butter 50 kg 30 1,500.00 18000
Egg 100 pcs. 6 600.00 7,200.00
Baking Powder 25 Tbsp. 4 100.00 1,200.00
Vanilla 25 Tbsp. 4 100.00 1,200.00
Total 13,500.00 162,000.00

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 Projected Production
Yea Price/uni Total Total Total
r Quantity t sales sales/month sales/year

1 300 packs/week 65 19500 78000 936000

2 300 packs/week 65 19500 78000 936000

3 300 packs/week 65 19500 78000 936000

400 packs/
4 week 70 28000 112000 1344000
400 packs/
5 week 70 28000 112000 1344000

K. Labor Requirement

The Mungo Butterscotch production needs manager who is responsible for

managing, controlling and in making decision for the planning and implementation of
the business. Laborers are required in manufacturing and processing the products. They
are responsible for packaging and deliberation of the product.

Labor Expenses

No. of employee salary Salary expenses/month Year Expenses

4 280 13440 161280

IV. Financial Feasibility

A. Total Project Cost

FINANCIAL ASPECTS
FIXED ASSET Amount Total
Raw materials 13,500.00 13,500.00
Building rent 5,000.00 5,000.00

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 Equipment 68,150.00 68,150.00
Packaging materials 7,070.00 7,070.00
Furniture and fixture 10,650.00 10,650.00
Office equipment 22,500.00 22,500.00
Office supply 3282 3282
Other supplies 2465 2465
Promotion 1,350.00 1,350.00
Utilities 1,900.00 1,900.00
Total Project Cost 135,867.00

B. Source of Financing the Project

The owner will use his/her own money and savings in starting and running the
business.

C. Projected Financial Statements

a. Income Statement

INCOME STATEMANT

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 624000 936000 936000 1344000 1344000

Gross profit 624000 936000 936000 1344000 1344000

Less; operating expenses

Building rent 60000 60000 60000 60000 60000

Labor expenses 161280 170956.8 181214.208 192087.0605 203612.2841

Raw materials (6%) 169,200.00 179,352.00 190,113.12 201,519.91 213,611.10

Packaging materials 7,070.00 7494.2 7943.852 8420.48312 8925.712107

Office supplies 3,282.00 3478.92 3687.6552 3908.914512 4143.449383

Other supplies 2,465.00 2612.9 2769.674 2935.85444 3112.005706

Transportation expenses 2,000.00 2120 2247.2 2382.032 2524.95392

Promotion ₱1,350.00 1431 1516.86 1607.8716 1704.343896

Utilities expenses 22,800.00 24168 25618.08 27155.1648 28784.47469

Depreciation expenses

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 Furniture and fixtures 2130 2257.8 2393.268 2536.86408 2689.075925

Machinery and equipment 15,330.00 16249.8 17224.788 18258.27528 19353.7718

Office equipments 6833.326667 7243.326267 7677.925843 8138.601393 8626.917477

Total Depreciation Expenses 24293.32667 25750.92627 27295.98184 28933.74075 30669.7652

TOTAL Expenses ₱453,740.33 ₱477,364.75 ₱502,406.63 ₱528,951.03 ₱557,088.09

Net income before tax ₱170,259.67 ₱458,635.25 ₱433,593.37 ₱815,048.97 ₱786,911.91

Less tax (3%) ₱5,107.79 ₱13,759.06 ₱13,007.80 ₱24,451.47 ₱23,607.36

Net income after tax ₱165,151.88 ₱444,876.20 ₱420,585.57 ₱790,597.50 ₱763,304.55

₱3.66 ₱2.04 ₱2.16 ₱1.65 ₱1.71

₱3.78 ₱2.10 ₱2.23 ₱1.70 ₱1.76

b. Cash Flow Analysis

CASH FLOW
Cash Inflow Year 1 Year 2 Year 3 Year 4 Year 5
Sales 624000 936000 936000 1344000 1344000
Investment 135,867.00
Add dep expenses 24293.32667 25750.92627 27295.98184 28933.74075 30669.7652
Total Cash inflow 784160.327 961750.926 963295.982 1372933.741 1374669.765
Cash Outflow
Labor Expenses 161280 170956.8 181214.208 192087.0605 203612.2841
Raw Materials 169,200.00 179,352.00 190,113.12 201,519.91 213,611.10
Utilities Expense 22,800.00 23,940.00 25,137.00 26,393.85 27,713.54
Promotion Expense ₱1,350.00 1,431.00 1,516.86 1,607.87 1,704.34
Office Supply 3,282.00 3,478.92 3,687.66 3,908.91 4,143.45
Depression Expenses
Machinery and Equipment 15,330.00 15,330.00 15,330.00 15,330.00 15,330.00
Furniture and Fixture 2,130.00 2,130.00 2,130.00 2,130.00 2,130.00
Office Equipment 6,833.33 6,833.33 6,833.33 6,833.33 6,833.33
Total Cash outflows 382,205.33 403,452.05 425,962.17 449,810.93 475,078.05

Net Cash Flow 401,955.00 558,298.88 537,333.81 923,122.81 899,591.71

c. Balance Sheet

BALANCE SHEET

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 ASSET
Amount Year 1 Year 2 Year 3 Year 4 Year 5

Beginning cash balance 401,955.00 401,955.00 558,298.88 537,333.81 923,122.81 899,591.71

less: Accumulate Depreciation

Furniture and fixtures 10,650.00 10,650.00 11,289.00 11,966.34 12,684.32 13,445.38

Office equipment 22,500.00 22,500.00 23850 25281 26797.86 28405.7316

Depreciation expenses

Furniture and fixtures 2130 2130 2257.8 2393.268 2536.86408 2689.075925

Machinery and equipment 15,330.00 15,330.00 16249.8 17224.788 18258.27528 19353.7718

Office equipments 6833.326667 6833.32667 7243.326267 7677.925843 8138.601393 8626.917477

Total Depreciation
Expenses 24293.32667 24293.3267 25750.92627 27295.98184 28933.74075 30669.7652

Total assets

Owners equity 135,867.00 135,867.00

Net income ₱170,259.67

D. Financial Analysis

a. Test of Profitability

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Profit Margin 1 1 1 1 1

Operating Profit Margin ₱0.27 ₱0.49 ₱0.46 ₱0.61 ₱0.59

₱27.29 ₱49.00 ₱46.32 ₱60.64 ₱58.55

Net Profit Margin 0.26 ₱0.48 ₱0.45 ₱0.59 ₱0.57

₱26.47 ₱47.53 ₱44.93 ₱58.82 ₱56.79

Asset Turn Over 4.59 6.89 6.89 9.89 9.89

Return on Asset 1.2531349 3.3756192 3.19130745 5.99887369 5.791781

b. Tests of Capital Investment

Payback Period in Years

Payback Period in years 1.2531349 3.3756192 3.19130745 5.99887369 5.791781

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V. SOCIO-ECONOMIC STUDY

A. Employment and Income

The business to be established will offer employment to the society especially to

those job seeker and unemployed people. It will somehow help to increase family
income of an individuals and lessen the number of unemployment within a society.

B. Tax Contribution

The tax contributed by the business will be submitted to the Government Unit
and it will be used for the community development of the municipality or within the
provincial.

C. Supply of Commodities

The main ingredients which is the Mung bean is one of the major products of
Isabela. The raw materials will be utilized properly through innovative production.

D. Demand for Raw Materials

The Raw materials needed in the production is marketed and available in the
market. Since Isabela is one major source of mungo, the demand of the product or the
main ingredients is high.

VI. ORGANIZATION AND MANAGEMENT STUDY

A. Form of Ownership

This business is Sole Proprietorship form of organization owned and

managed by Ms. Lea G. Villanueva.

B. Organization Chart

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MANAGER

LABORER
C. Officers and Key Personnel
Job Job
Specification Qualification
- A graduate of any
management courses
- Male/Female, from 21-28
Manager years old
- At least 2 years work
experience
- Must have good moral
character
- Male/Female, graduate
and under graduate
Laborer
- must be skilled and had a
work experience
D. Project Schedule
DISTRIBUTOR
Job Salary
Description
-Responsible for
planning, organizing,
directing and controlling
8,000/monthly
all the employees of the
organizations as well as
its relationship to each
other
-Responsible in checking
sales and ensures
product quality
-Responsible for buying,
4,500/monthly
preparation and
processing the products
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Project Schedule
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Planning

Canvassing

Investing

hiring of
employees

Inauguration

VII. Conclusion and Recommendation

Conclusion

In starting a business, you will not know whether your business will become
successful. To avoid negative result that could happen to your business, you should
make a feasibility study that could help you to identify the Strength, Weakness,
Opportunities and Threats of your business that you are going to put up and also for
you to know if this project will be feasible. But the most important thing in making
Financial feasibility is to calculate the total project cost, income statement, cash flow,
balance sheet, the profitability and the payback period. With those analysis it can give
you an advance result on how much money would you invest, on what would be your
expenses, the materials and equipment that depreciate its value and to know when
your invested money will return. Otherwise, the result is not exactly accurate, but it
gives you information that is possibly the result of your business.

Recommendation

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 The use Feasibility Study is highly recommended since the project is new. By
preparing financial feasibility I saw that the mungo butterscotch is feasible, and it has
an opportunity to sell to the market.

VIII. Appendices

1 3

7 4

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6 5

MUNGO BUTTERSCOTCH

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IX. Reference

http://bpi.da.gov.ph/bpi/images/Production_guide/Word/MUNGBEAN.docx

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