Executive Summary

A. The Dessert Project Company

The Dessert Project gives an introduction of a new way of presenting an ordinary
pizza into a more interesting sweet dessert in the society. This dessert will give us a taste
that will surely be different and interesting among other dessert products. The dessert is
loaded with sweet toppings such as caramel, marshmallows, nuts, chocolates chips, Oreo,
cookie butter, cream cheese, and fruits such as blueberries, strawberries, mangoes, cherry
and banana. Our product will be catering customers who are from middle class to high
class, since our primary locations are near the schools and offices we will be also be
catering the product to students and employees and lastly we also want to serve our
unique product to food bloggers and dessert enthusiast. A new type of a dessert which is
healthier than other desserts sold at a market. Studies show that eating chocolate, may
contribute to improved cardiovascular health also, dough is rich with some important
antioxidants and some can even be amplified during the baking process. During bread
making, different ingredients are used to ensure the development of a continuous protein
network that is essential for bread quality. The customers will buy the products because it
may seem interesting for the customers since it’s new in their eyes and taste buds. The
Dessert Project will be a unique product that will satisfy customer’s sweet cravings.

B. Market Opportunity
One opportunity that we can take advantage of is the 90% of the people who gave
a good feedback and said that they will purchase and try our product. This is really
important for us because this people who gave positive feedbacks will be a great
opportunity for us to operate our business successfully. And according to them, they are
interested in trying new dessert products.

C. Vision Statement
To develop new recipes/products and introduce it to the market. For the
market to enjoy the new concept of desserts and to be known nationwide.
Our vision is to create new recipes of desserts product and also to become the top brand
to introduce it to the market. Also for them to enjoy it by how me enjoy dessert products.

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D. Mission Statement

To ensure that each guest receives prompt, professional, friendly and courteous
service.

To maintain a clean and comfortable premises for our guests and staff.

To provide at a fair price – nutritional desserts - using quality ingredients.

To thank each guest for the opportunity to serve them.

E. Management
ManageMENT TEAM Duties and Responsibilities
(General Manager)  Knowledgeable in many aspect
 Has a parents who’s knowledgeable in
accounting and legal issues that can
help in our business
 Has a financial manager brother that
can help us in making financial
decisions
Sumaguit, Honey Jane (Finance Manager)  Knowledgeable in Accounting
 Knows how to handle money
Pascual, Alyanna Lydia Therese U.  Has a construction company that can
(Marketing Manager) help us to lower the cost of
constructing our store.
 Has a pastry chef sister that can help in
developing and improving our
product.
Gayomali, Marie Gabrielle  Have many connections that can help
(Production and Operations Manager) marketing our product.
 Knowledgeable in producing the
product.

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F. Competitors

Location: UST carpark

Company Strengths Weaknesses

Cerealicious -inventories are many -the price of their product is a
-the store has a good ambiance little bit expensive (P80+)
-a lot of branches -sales of production every
-you have the freedom to weekends is low because there
add/choice your own toppings is no school
-they have a lot of promos for
the customers
-many customers dining in
-many choices of products
-offers imported cereals
-product list with an calorie
equivalent
Coffee Avenue -doesn’t serve coffee and
desserts only but also
lunch/dinner meals

they have a cheap price -some of the flavors are not

(P35+) available because of lack of
-it's freshly prepared! You can ingredients
see your own waffle -sales of production every
sandwiches prepared. weekends is low because there
-offers variety is no school
-good food/taste
-they have a nice/pleasing
kiosk
-has lots of equipment (4
waffle maker, blender,
refrigerator)
-many branches
-advertise/promotions through
sponsorships like (ASAP)
-fast service

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 Farroncino Café

G. Company’s Competitive Advantages

The Dessert Project is not the typical kind of dessert sold in the market today. The Dessert
Project will be focused on sweet toppings combined with another dessert product.

The Dessert Project will not just offer dessert but also the experience, which makes customers
feel at home.

The Dessert Project will be the only store in UST that offers thin crust dough topped by
combined desserts.

The Dessert Project will also introduce a loyalty card that provides a host of benefits. This
entices customers returning to make purchases, building loyalty.

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Organizational Plan
A. Summary description of the business

Broad overview

The company was formed last June 2013, and it was formed as a requirement in
creating a business plan intended for our future business. First our product is Rice roll,
but due to several reasons we decided to shift our product to Desserts. It is not just a
typical dessert, because unlike the other dessert in the market. Our dessert is coated on
top by a very flavorful chocolate ganache, cookie butter, cream cheese and hazelnut
spread topped by mango, blueberry, strawberry, banana, cherry, nuts, kisses,
marshmallows, chocolate candies, rice crispiest, oreo, shredded chocolate and many more
that our customers will surely love. Our product is a dessert and a snack type of food.
Well because it is sweet and also a snack because this can also satisfy your hunger.

Business Model

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BUSINESS MODEL – THE DESSERT PROJECT

Input Process Output

 Potential Customers  Potential Customers  Store Type
- Students from - Contract (Minimum
 The Dessert Project
University of Sto. number of order
Thomas requirement) - Black Forest
 Clients - Receives deliverables
 Investors  Clients - Cookie Butter
- Business Owners - Receives long term - Rocky Road
 Machineries benefits from the
company - Chocolate
- Refrigerator
- Baking Oven  Investors - Oreo Cheesecake
- Cash Register - Contract (Initial
- Strawberry
- Coffee Maker investment)
 Equipment - Return of Investment, Cheesecake
- Hairnet Dividends,
- Cherry Cheesecake
- Gloves Management
- Apron  Machineries - Blueberry Cheesecake
- Tray - Installation and
- Tongs Maintenance
- Spatula  Equipment
- Stool  Raw Materials
- Measuring Cup  Inventory
- Pizza Cutter - Itemizing current
- Box assets
- Weighing Scale  Location
- Attractive Location,
Accessibility
 Raw Materials - Contract regarding
- Chocolate Bar the rent
- All-purpose cream  Suppliers
- Glucose - Contract (Supplies)
- Cherry  Lenders
- Chocolate Candies - Helps to start a
Business Capital
- Hazelnut paste
 Entrepreneur and
- Peanuts Management Teams
- Marshmallow - Handles the entire
- Rice Crisp Business processes
- Chocolate chips  Employees
- Oreo - Improves both
product quality and
- Cream cheese bar
processes
- Powdered sugar
- Blueberry
- Strawberry
- Cookie butter
- Banana
- Pizza Dough
- Packaging
 Location 6
- Carpark, UST
 Suppliers
- Chocolate Lovers
SWOT analysis

S – trengths

• Our product would be new to the eyes of the consumers since there is still no
dessert like this sold in a market near our target location.

• Our business will be located to the place where there are a lot of students which
are the large portion our target market.

• We are the only café that specialize this kind of product

W – eakness

• Since we are just starting out with our business. We will have a hard time to
promote and advertise our product.

• Customers may not avail my product because they haven’t tried eating dessert like
this yet and according to our survey, some of our potential customers find it
weird.

• As of now, our flavors are limited. This may lead to customer dissatisfaction.

O – pportunities

 We find our opportunities in the result of our survey and our research about our
product.
 We are the only one who sells that product in that area.
 Differentiation from other dessert products.
T – hreats

 Competitors have stronger brand names.

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  Competitors have strong relationships with the retailers.
 Established competitors have already their market.

B. Products and Services

The Dessert Project gives an introduction of a new way of presenting an ordinary

dessert into a more interesting sweet dessert in the society. This dessert will give us a
taste that will surely be different and interesting among other dessert products. The
Dessert Project is loaded with sweet toppings such as caramel, marshmallows, nuts,
chocolates chips, oreo, cookie butter, cream cheese, and fruits such as blueberries,
strawberries, mangoes, cherry and banana. The ingredients that we will be using for the
pizza came from different suppliers such as quiapo for the toppings, Paco for our dough
and sta. mesa for the packaging; we also have a scheduled date for ordering the supplies
of our ingredients which is every Wednesdays and Saturdays. The manufacturing of our
product does not cost a lot of time, in fact in just 12 minutes we can produce 8. We start
off by heating the dough, second, put the chocolate spread and the toppings and lastly
heat it with the toppings on it. It is a made to order product that will surely give the
customers a good quality and good presentation of the product.

C. Administrative Plan

1.) Intellectual property rights, do you require patents, copy rights or trademark?

Yes, the Company requires and applies patent as a form of our intellectual
property rights. because if this business will be a successful one, we need protection so
that no other business or people can imitate us because we are the first who made this
product and we exerted so much effort for us to have this kind of business. No one shall
unjustly benefit or enriched himself at our expense. And we also need the set of exclusive
right as the inventor of our product. We need a disclosure from the public.

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 According to www.uspto.gov/inventors/patents.jsp our invention can be patented.
According to www.mixph.com the cost of filing a patent is Php 1,380 for small entity. We
are classified as small entity because the worth of our assets is less than 20 Million pesos.

2.) Location

Our location is at UST carpark. it is located inside the UST wherein the students
can go anytime they want. Our rental fee from this location is Php 30,000/ month. The
projected cost of electricity is pesos. The projected cost of water is The projected cost of
internet and phone bill is 999. And the accumulated projected cost for utility bills is pesos
plus the rent of pesos is equals to pesos as the monthly projected cost associated with the
location.

3.) Legal Structure

a. Our business structure will be partnership since it involves two or more people
who agree to share in the profits or losses of a business. A primary advantage
of partnership in our company is that the partnership does not bear the tax

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 burden of profits or the benefit of losses-profits or losses are passed through to
partners to report on their individual income tax returns. Other advantages of
partnership is that it is easy to establish since our group is equally contributing
for the finances of the business, there are also a lot of connections from each
of the group members and most importantly, a partnership may benefit from
the combination of complementary skills of each members; there is a wider
pool of knowledge, skills and connections coming from the group.
b.
Members Strengths

Samir Sergs L. Espina  Dynamism and

leadership skills
 Flexibility
 Independent
 Positive response to
challenges
 Ability to make
decisions quickly
 Responsible
 Ability to trust co
workers
Marie Gabrielle M. Gayomali  Connections
 Leadership skills
 Creative skills
 Organizing skills
 Perseverance
 Ability to take
calculated risk
 Initiative
 responsible

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 Honey Jane C. Sumagit  Knowledge in
accounting
 Consistent problem
solver
 Energetic and diligent
 Initiative
 responsible
Alyanna Lydia Therese U.  Confident
Pascual  Resourceful
 Creative
 Initiative
 Responsible
 Perceptiveness
 versatile

Resume of each members:

Name: Pascual, Alyanna Lydia Therese Unite
A. Educational Attainment:

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 Primary Education:
 St. Paul College of Bocaue, BocaueBulacan (1999 - 2005)
Secondary Education:
 St. Paul College of Bocaue, BocaueBulacan (2005 - 2009)
College:
 University of the East Ramon Magsaysay Memorial Medical Center (2009 - 2011)
(Bachelor of Science in Physical Therapy)
 San Beda College (2011 – Present) (Bachelor of Science in Entrepreneurship)
Recognition/s:
 San Beda College – Top 14 2nd Semester BS Entrepreneurship (SY 2011 – 2012)
Reason of transferring/shifting to BS Entrepreneurship:
 I find BS Entrepreneurship interesting because I will be doing things that I want. I
shifted because I wanted to have my own business in the future. Handling my own
business will make me happy because I can help people to have work and would earn
income because of that business.
B. Affiliations to professional, religious and / or civic organizations:
 Mansoc member
C. Interest and Hobbies:
 Watching movies
 Listening to music
 Trying new kinds of food
 Cooking
 Reading articles about business in the internet
D. Personal Information:
 Age : 20
 Birthday : July 9, 1993
 Gender : Female
 Birth Place : St. Luke’s Medical Center Quezon City
 Home Address : DS Pascual Compound, V. Mauricio St. TuroBocaueBulacan

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 E-mail Address : yaniyanpascual@yahoo.com
 Cellphone Number : (0917) 978-03-04
 Parents Information:
 Name:
 Father : Roberto Santiago Pascual
 Mother : Ma. Luisa Unite Pascual
 Work:
 Contractor, Rice Dealer, Businessman
 Caterer, Businesswoman

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Name: Gayomali, Marie Gabrielle Martinez

 Educational Attainment:
Primary Education:
 Santa Isabel College (2000 - 2006)
Secondary Education:
 Malayan High School of Science (2006 - 2009)
College:
 San Beda College (2011 – Present) (Bachelor of Science in Entrepreneurship)
Reason of transferring/shifting to BS Entrepreneurship:
 For me, BS Entrepreneurship is a very interesting course because I always dreamed of
having my own business.
 Affiliations to professional, religious and / or civic organizations:
 Mansoc Officer: Performing Arts Committee – 2011-2012
Events Staff – 2011-2012
IT Staff – 2012-2013
Assistant Secretary General – 2013-2014
 Attended seminars:
o StockXchange

 Interest and Hobbies:

 Watching movies
 Reading business articles
 Listening to music
 Dancing
 Cooking

 Personal Information:
 Age : 19

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 Birthday : September 27, 1994
 Gender : Female
 Birth Place : San Juan, Metro Manila
 Home Address : 959 Don Ysidoro Street, Singalong Malate Manila
 E-mail Address : gayomali.marie@gmail.com
 Cellphone Number : (0917) 521 8123
 Parents Information:
 Name:
 Father : Agustin Rey C. Gayomali
 Mother : Mary Elizabeth M. Gayomali
 Work:
 Mechanical Engineer in USA
 Housewife

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Name: Sumagit, Honey Jane Cudal

 Educational Attainment:
Primary Education:
 Aguinaldo Elementary School (2001 - 2007)
Secondary Education:
 Holy Angels Montessori School (2007 - 2011)
College:
 San Beda College (2011 – Present) (Bachelor of Science in Entrepreneurship)
Honors and Awards:
 1st year High School: Rank 4
 2nd year High School: Rank 3
Best in Values Education
Best in Filipino
 3rd year High School: Rank 1
Best in Filipino
Best in Values Education
Best in AralingPanlipunan
Best in TLE
Awarded as Math Wizard
 4th year High School: Valedictorian
Best in Filipino
Best in Values Education
Best in Mathematics
Mercury Drug Corporation Certificate of Achievement for
Excellence in Mathematics

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 Affiliations to professional, religious and / or civic organizations:
 JPIA Member
 Bedan Scholars Guild Member
 Mansoc Member
 Theological Circle Member
 Attended seminars
 StockXchange
 Interest and Hobbies:
 Watching movies
 Listening to music
 Shopping with my family
 Cooking
 Surfing the internet
 Personal Information:
 Age : 19
 Birthday : May 17, 1994
 Gender : Female
 Birth Place : Marikina City
 Home Address : 76-C 18TH Avenue Murphy Cubao, Quezon City
 E-mail Address : honeysumaguit@yahoo.com
 Cellphone Number : (0906) 473-21-78
 Parents Information:
 Name:
 Father : Henry CrisostomoSumagit
 Mother : Shirley CudalSumagit
 Work:
 Seaman
 Private Employee, Businesswoman

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Name: Espina, Samir Sergs L.
A. Educational attainment

Primary education

Sta. Mesa Parochial School (2000 – 2007)

Secondary education

Polytechnic University of the Philippines Laboratory High School (2007 - 2011)

College

San Beda College (2011 - present) (BS Business Management and Entrepreneurship)

B. Affiliations to professional, religious and / or civic organizations:

Mansoc Member

C. Work experience

OJT as Accounting clerk at Toyota, Shaw (November 2010 – February 2011)

D. Personal Information

Age: 19

Birthday: February 24, 1995

Gender: Male

Birthplace: Manily City

Email Address: samir_espina24@yahoo.com

Contact number: 09359392204

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 Parents’ information

Father: Valentin P. Espina

Chief security at Polytechnic University of the Philippines and Professor

Mother: Thelma L. Espina

Accountant at Bangko Sentral ng Pilipinas

4.) Management

Managers:

Espina, Samir Sergs L. (General Manager / Human Resource Manager)

Job description of general manager

 A General Manager has broad, overall responsibility for a business or

organization. Whereas a manager may be responsible for one functional area.
 He manages through subordinate manager. However, a General Manager may
have individuals reporting to him/her who are not managers.
 A General Manager is responsible for higher level planning than a manager.
 A General Manager is often responsible for the overall strategic planning and
direction of the company or organization and leaves the day-to-day management
of the various functions to the managers.
Tasks, Duties, Responsibilities

 He is in-charge of managing the organization as a whole.

 He ensures that the business will have an effective and efficient customer-service
experience.

 He enforces respect to employees and co-workers as regard to their tasks, duties

and responsibilities.

Key skills, Attributes and others

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 • Must be a college graduate of business management course.

• Must run the business with confidence, patience, and integrity according to its
visualized goal and mission.

• Must enforce righteous, equality, justifiable command to other managers to earn

the needed respect and to meet the goals of the business.

Job description of Human resource manager

 A human resource manager is responsible for attraction, selection, training, and

assessment and rewarding of employees.
 Planning, and sometimes delivering, training, including inductions for new staff.
 Administering payroll and maintaining employee records.
 Advising on pay and other remuneration issues, including promotion and benefits.
 Developing and implementing policies on issues such as working conditions,
performance management, equal opportunities, disciplinary procedures and
absence management.
 Recruiting staff - this includes developing job descriptions and person
specifications, preparing job adverts, checking application forms, short listing,
interviewing and selecting candidates
Tasks, duties and responsibilities

 He is responsible for hiring employees needed for the business and attraction of
other potential employee.

 Assess monthly performance appraisal in order to motivate, criticize and monitor

the employees within the organization.

 Ensures the correct and proper execution of jobs and tasks also the
implementation of policies of an issue of working conditions and performance

 Supervises the employees of the business.

Key skills, Attributes and Others

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  Must have good assessment skills for work done by the employees.

 Must know how to make performance appraisal for the employee.

 Must conduct daily reporting for employees and monitoring of tasks

and must conduct fair evaluation of each employee.

 Must know how to associate with other employees.

Sumaguit, Honey Jane (Financial Manager)

Job description of Financial Manager

 Prepare financial statements, business activity reports, and forecasts.

 Monitor financial details to ensure that legal requirements are met.
 Supervise employees who do financial reporting and budgeting.
 Review company financial reports and seek ways to reduce costs.
 Analyze market trends to find opportunities for expansion or for acquiring other
companies.
Tasks, duties and responsibilities

 Knows how to prepare cash flow statement and projected income, activity reports
and forecasts.
 Accountable and transparent for money budgeting and allocation of fund.
 Analyze right decision making to find possible opportunities and right time for
expansion.
Key skills, Attributes and Others

 Must fully understand accounting.

 Must have knowledge in financial, cost and managerial accounting.

 Must be good in decision making in terms of distributing the budget

effectively.

Pascual, Alyanna Lydia Therese (Marketing Manager)

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Job description of marketing manager

 She / He is assigned the crucial job of creating a demand for the product / service
in the market which will generate a rise in the company’s sales and in turn,
provide the necessary revenue (and profit) needed to keep the organization
running.
 She / He, one is involved with creating a market for the specific product / service
that the company provides through collaboration with other departments of the
institution such as engineering and manufacturing.
 She / He manager is developing innovative strategies using their creative faculties
in order to attract potential customers to their business.
 Marketing managers are therefore hired to generate a growth in company’s sales
by targeting the right customer base with convincing methods and techniques.

Gayomali, Marie Gabrielle (Production and Operations Manager)

Job description of Production and Operations manager

 Production/Operations Manager is concerned with overseeing, designing, and

controlling the process of production and redesigning business operations in the
production of goods and services.
 It is a component of organization which is concerned with the creation of utility in
raw materials through conversion process.
Tasks, duties and responsibilities

 In charge in the production process of the product namely the Input Process
Output.

 Responsible for the selection of materials needed for the product.

 Must able to settle quality standard, productivity and estimate cost for the product.

 Ensures that the production is well done and meet the quota of the production.

 Overseeing the production schedule to meet the objectives of the activity.

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  Supervise the performance of the production.

Key skills, Attributes and Others

 Must know how to handle and guide the production well especially the team
assigned for the production.

 Must have knowledge of the whole process and practices for production
employees.

 Must have strong logical, inquisitive and rational skills.

 Must be able to make complicated decisions and ability to be flexible for possible
unexpected problems.

 Must have absolute knowledge on quality methods, design and application.

5.) Accounting and legal

Accounting

The Dessert Project will have formal ledgers and bookkeeping to monitor cash inflows
and outflows. The business will have their own petty cash fund for their little expenses
like transportations and gasoline. The Dessert Project will also have Point of Sale system
wherein it is a Inventory software programs now on the market that let you track usage,
monitor changes in unit dollar costs, calculate when you need to reorder, and analyze
inventory levels on an item-by-item basis. You can even control inventory right at the
cash register with point-of-sale (POS) software systems. POS software records each sale
when it happens, so your inventory records are always up-to-date. Better still, you get
much more information about the sale than you could gather with a manual system. By
running reports based on this information, you can make better decisions about ordering
and merchandising.

6.) Insurance

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We will insure our facility by property insurance. To protect us from some events that
might happen in our business.

According to www.forbes.com. Property Insurance: If you own your building or have

business personal property, including office equipment, computers, inventory or tools you
should consider purchasing a policy that will protect you if you have a fire, vandalism,
theft, smoke damage etc. You may also want to consider business interruption/loss of
earning insurance as part of the policy to protect your earnings if the business is unable to
operate.

7.) Security

Our facility is secured by CCTV camera installed inside the UST. The facility is also
secured by a guard inside the place.

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 Marketing Plan
A. Market Philosophy with target awareness and assumed sales conversion

Market Philosophy

We are on the product driven side of philosophy because we are focused on innovating our
products as well as on our customer's satisfaction.

Target Awareness and Assumed Sales Conversion

Advertising Strategies:

Target awareness: 96,308

Strategies Contribution Budget

Social Networking 8,058 followers/friends DSL Internet
P999 a month
Facebook: Total friends = 8,058 P11,988 per year
Marielle – 1, 350 8,058/4 managers = 2,014
Samir – 997 manager
Yan – 1,186 2,014/ 24 days = 84 persons to
Honey Jane – 2,112 talk per day
FB page - 305
Twitter: 1,120 followers Computation: 8,058 x .10 = 805
Instagram: 805 x 175 = 141,015
988 followers
Tarpaulins 36,720 (80%) P450.00 for 1 year
3 banners. 1 tarp in the entrance,
2 tarps in the parking area. Computation: 3,672 x .10
Cost: P150 each 3,672 x 175 = 642,600
Flyers 20,000 P5,000.00
(20,000 pages with 4 copies each 1 peso per page

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 page) Computation: 2,000 x .10 =
2,000
2,000 x 175 = 350,000

Sales and Promotions Strategies

Strategies Contribution Budget

Free taste 5,000 P6,486.00 for 2 months

Computation: 5,000 x .10

= 500 x 175 = 87,500
Raffle tickets 15,000 P420.00 - Rob Magnolia’s ticket
price
Computation: 15,000 x .10 700 pages = P750.00 printed
= 1,500 x 175 = 262,500 colored coupons

P5,040.00 for 24 movie tickets a

year
Database Marketing 10,000 P5,000.00

Computation: 10,000 x .10

= 1,000 x 175 = 175,000

Promotional items 1,000 P4.00 each for customized pin

(Giveaway of 1 pin with our
logo) Computation: 1,000 x .10 P4,000.00 for 1,000 pins for 1
= 100 x 175 = 17,500 year

Event Sponsorship 530 P8.670.8

(Incoming 3rd year HRM and
tourism students, class of 2016) Computation: 530 x .10
= 53 x 175 = 9,275

Programs that will be made:

Advertising:

Facebook page: For the facebook page, we will post pictures and videos of our product. We will
also going to talk to our facebook friends so that they will know that The Dessert Project is

26
existing. Each manager will talk to 84 persons each day to tell them about The Dessert Project
and like the page.

Flyers: Flyers will be given to the people who are walking outside the store. Flyers will also tell
the market if we have promotions.

Tarpaulins: Tarpaulins will be places in front of the store and in the parking area.

Sales Promotions:

Raffle tickets: Raffle tickets will be given to the customers who will have a minimum single
receipt of P300.00 and will have a chance to win 2 free movie tickets at Robinson’s Magnolia.

Free taste: Free taste will be given for the first 2 months of the business. Free taste will have all
the flavors so that people may know the taste of our product.

Promotional items: We will give 1 button pin for every person who will buy any product from us.
Button pin design will have our logo and will have a quote that says, “Will run for dessert”.

Sponsorship: We will sponsor an event of the College of HRM and Tourism. We will give them 1
5” inch dessert and will be placed in a box with our logo.

Database Marketing: We will ask them to write their information so that we may call or mail
them if we have promotions or if we can sponsor in one of their events, ask them if we may be
their contact for desserts.

Supporting details:

Millions of users flock to social networking websites like Instagram, Twitter and Facebook on a
daily basis. They use these websites to communicate with the friends and also to look up
business, services, and products in which they are interested. A business with a popular presence
on social networking sites will receive a steady flow of interested users, many of who will end up
being loyal customers.

Advertising in print media enhances and reinforces the newer media opportunities, this makes it
more effective and more integrated with the marketing mix, and thus adds to the overall depth of
penetration while increasing brand awareness. Print advertising helps drive customers into action
in a tried and true format that everyone is familiar with. Though a little dated, according to a
2004 United States Post Office report, print produces results: 8 out of 10 consumers look at
posters, flyers, banners.

27
B. Market Research and Analysis

1. Product Description (type of consumer goods and stage in product lifecycle) (product-
person synchronicity)

The Dessert Project gives a new way of presenting a dessert into a more interesting dessert in the
society. This dessert will give us a taste that will surely be different and interesting among other
dessert products. The dessert is loaded with sweet toppings such as caramel, marshmallows, nuts,
chocolate chips, Oreo, cookie butter, cream cheese, and fruits such as blueberries, strawberries,
mangoes, cherry and banana. Every Filipinos are born with a sweet tooth and most of us are
getting addicted to sweets. Based on our research, Filipinos are known to have a heart y
appetite and just loves to eat. In fact, a typical Filipino eats three meals a day and 2 snacks in
between. This is the reason why desserts have always been a large part of Philippine cuisine.
Most Filipinos feel something is lacking after eating a meal. A meal simply isn’t complete
without finishing it with a sweet dessert.

Type of consumer goods

The type of food that Dessert Project offers is specialty consumer good because this product is
unique and unusual. The goods also don’t come under the category of necessity rather they are
purchased on the basis personal preference or desire of the people. The product will be sold in a
‘made to order’ way. Because it is a specialty consumer good this product will be produced or
prepared specifically when someone requests the product, so that the product can be customized
as desired by the customer who requested it.

Product life cycle

The stage of our product life cycle is in the introduction stage. When competitors enter the
market there may be price competition or increased in advertising costs in order to convince the
consumers that my product is better than that of the competition. During the introduction stage,
our goal is for the visibility of our product/business so that consumers will able to know us

28
because of our innovative concept. Dessert Project presents an innovative product that is new in
food business to beat the competitions.

Product Person Synchronicity

We came up on an innovative idea of combining these two products and make it a new dessert
product. We believe that introducing and promoting this product to everyone would be a lot
easier for us because we are very interested and dedicated to our product.

STRENGTHS WEAKNESSES
Our product would be new to the eyes of the Since we are just starting out with my business
consumers since there is still no dessert like we will have a hard time to promote and
this sold in a market near my target location. advertise our product. And it will cost me a lot
in advertising our product.
We already have someone to help us in making Customers may not avail my product because
our product. And also improving it. they haven’t tried eating dessert like this yet and
they might find it weird eating this new
innovation.
The consumers will be given a chance to Since we are just starting up, we do not know if
choose the toppings that they want to add for people will really try our product because some
their dessert. consumers will think it is weird.
Our business will be located to the place where
there are a lot of students which are our target
market.

Product Components and Additional Research

In the Philippines we have eating disorders; most Filipinos can’t control their eating habit that’s
why some of the Filipinos are obese and sometimes have ailments because of excessive eating.
My future business has come up with a new type of a dessert which is healthier than other
desserts sold at a market. We nearly have 86 million people that have eating disorders.
In a culture that places excessive value on dieting and thinness, yet struggles increasingly with
weight gain and obesity, it’s easy to view dessert as a tantalizing enemy. But according to many

29
health experts, recovered dieters and studies, negative attitudes and avoidance of desserts and
other food can be more detrimental to our wellness than indulging.

Benefits of Incorporating Desserts into a Healthy, Balanced Diet

Improved Weight Control
According to a recent study published in the journal Steroids, 195 obese adults followed calorie-
controlled diets for 16 weeks. Both plans contained the same amount of calories and namely
healthy foods, with one difference—one group consumed dessert daily. The dessert eaters lost
slightly more weight than the non-dessert eaters and were significantly more successful at
keeping lost pounds off.

According to Daniela Jakubowicz of Tel Aviv University and lead author of the study told
the New York Times, most people simply regain weight, no matter what diet they are on, but if
you eat what you like, you decrease cravings.

Reduced Unhealthy Food Cravings

Dessert benefits are particularly acute for non-dieters because routine indulgences and some
amount of flexibility in your diet prevent feelings of deprivation, which can stimulate the weight
gain that prompts dieting. And viewing desserts as savory treats rather than “bad” or “junk”
foods can help diminish sugar cravings while making sugary fare less tantalizing.

Improved Nutrient Intake

According to the University of Rochester Medical Center, we crave dense foods when our bodies
are lacking nutrients or calories. And eating too little is one of the top contributors to food
cravings,
In some cases, a rich dessert is just the fuel your body and brain needs—particularly if you
consume too few carbohydrates. Desserts are not usually the healthiest source of carbohydrates
but consuming enough carbohydrates from any source is healthier than severely restricting or
skipping them altogether.

30
Health benefits of Chocolate
Studies show that eating chocolate, may contribute to improved cardiovascular health. Packed
with natural antioxidants, chocolate and cocoa sit in the same good-for-you category as green tea
and blueberries. That's because chocolate comes from cacao beans (or cocoa beans), which grow
on the cacao tree and are full of natural plant nutrients. Most of the studies to date highlight dark
chocolate's health values because it has the highest percentage of cocoa solids, therefore more
flavanol antioxidants.

Health benefits of Dough

Dough is also rich with some important antioxidants and, miraculously, some can even be
amplified during the baking process. During bread making, different ingredients are used to
ensure the development of a continuous protein network that is essential for bread quality.
Interests in incorporating bioactive ingredients such as dietary fiber (DF) and phenolic
antioxidants into popular foods such as bread have grown rapidly, due to the increased consumer
health awareness. The added bioactive ingredients may or may not promote the protein cross-
links. Appropriate cross-links among wheat proteins, fiber polysaccharides, and phenolic
antioxidants could be the most critical factor for bread dough enhanced with DF and phenolic
antioxidants. Such cross-links may influence the structure and properties of a bread system
during baking.

2. Target Market (identifies with demographics, psychographics, and niche market

specifics)
Demographics:
 Our target market will be mainly the UST students from all levels (high school-college).
 Other target markets will be the faculty members of UST from different departments, and
administrative staff of UST.
 Since there is a hospital, we can also target the hospital staff which includes the doctors,
administrative staff and other employees of the hospital.
 We can also target the family members/visitors of the confined patients.
Psychographics:
 People who is adventurous/loves to try new kind of food.
Niche Market:
 Ages 17-30
 Female and Male

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  Dessert lovers
According to http://www.filipinodesserts.net, almost all Filipinos are born with a sweet tooth and
most of us might never outgrow it. Filipinos are known to have a hearty appetite and just love to
eat. In fact, a typical Filipino eats three meals a day and two snacks in between. This is the
reason why Philippine desserts have always been a large part of Philippine cuisine. Most
Filipinos feel something is lacking after eating a hearty meal. A meal simply isn’t complete
without finishing it with a sweet dessert.

3. Competition (describe major competitors assessing their strengths and weaknesses.)

 Competitors Check/Assessment:
Here are some locations and companies that The Dessert Project may have a competition
with.
Location: UST carpark

Company Strengths Weaknesses

Cerealicious -inventories are many -the price of their product is a
-the store has a good ambiance little bit expensive (P80+)
-a lot of branches -sales of production every
-you have the freedom to weekends is low because there
add/choice your own toppings is no school
-they have a lot of promos for
the customers
-many customers dining in
-many choices of products
-offers imported cereals
-product list with an calorie
equivalent

Coffee Avenue -doesn’t serve coffee and -service is not fast

desserts only but also
lunch/dinner meals
-good place to hangout

32
 they have a cheap price -some of the flavors are not
(P35+) available because of lack of
-it's freshly prepared! You can ingredients
see your own waffle -sales of production every
sandwiches prepared. weekends is low because there
-offers variety is no school
-good food/taste
-they have a nice/pleasing
kiosk
-has lots of equipment (4
waffle maker, blender,
refrigerator)
-many branches
-advertise/promotions through
sponsorships like (asap)
-fast service

-serves different kinds of -no space for dine-in

Farroncino Café coffee

Advantages and Disadvantages of our location (UST)

According to http://thinkrichbefree.com/2013/09/01/choosing-best-business-location/, UST has
these advantages and disadvantages.

Advantages:
 Your business will receive hundreds of traffic every school days.
 Great for stores that sell school supplies or those planning to start a not so expensive
restaurant.

Disadvantage:
 Little to no customer when there is no classes.
 Many competitors.

Competitive advantages:

33
  The Dessert Project is not the typical kind of dessert. The Dessert Project will be focused
on sweet toppings.
 The Dessert Project will not just offer dessert but also the experience, which makes
customers feel at home.
 The Dessert Project will be the only store in UST that offers a dessert.
 The Dessert Project will also introduce a loyalty card that provides a host of benefits.
This entices customers returning to make purchases, building loyalty.

4. Market Trends (identify industry trends and customer trends)

Customer Trends
Food culture is more complex than ever: Food makers need to understand all of food culture –
meaning all food niches, trends and preferences, not just their own categories and specialties.
The snack culture: Nearly half (48%) of all adult eating occurs between meals, a combined result
of the increase in eating alone and the decline in family dining. However, a return to
commitment to family dining will continue to gain momentum, says Hartman.
Foods that are in for 2012, according to Hartman, include: real butter and healthy fats; grass-fed
meat; sea salt; stevia; dark-meat chicken; local/seasonal super fruits; cage-free whole eggs;
farmstead cheese; fresh produce; portion control; craft beer; kettle potato chips and dark, leafy
greens.

Industry Trends
According to a group discussion at SIAL MONTREAL 2009, consumer trends suggest that
people are asking for more choices in food, with less ingredients but better taste and quality. The
research indicates that consumers are trending towards:
 Convenience
 Health & wellness
 Sophistication (regional fusion)
 Pleasure/fun
Innovation in portion sizes and packaging were main themes for meeting convenience and
quality demands while probiotics continue to gain in popularity for health conscious consumers.
Developments in regional fusion, which combine new and exotic tastes and textures and meet
consumers’ demand for a higher level of sophistication in foods, were evident at the conference.

34
And there were many examples of foods that offer both pleasure and power to meet the demands
of our busy lives today.

PRODUCT TEST RESULTS

Product testing is the quality assurance in the context of marketing research and analysis. This
measure is conducted to determine the acceptability, safety and efficacy of the dessert product. It
is imperative, but unfortunately, the most tedious and expensive part of the whole research and
development process. But product testing is a very important part of marketing research.

Based from the survey that we conducted, it shows that all of our respondents are willing to try
foods that they haven’t tried before. It shows that they are excited for our product. In relation to
this, they also said that if our product is available today, they will recommend to others. They
prefer chocolate chips as the main topping for the dessert. They also agreed that this dessert is a
good alternative to snacks and dessert. And they are willing to pay for dessert/snacks. They
prefer carton box to be our packaging and they find our product excellent and good!!

Marketing Strategy
1. General Description (Market Philosophy, on-line and offline effort)

On-line Effort

For the on-line efforts and allocation, we will be posting and promote our product to all the
social networking sites that we have. And also, we are planning to make a website for our

35
product that will help us promote it as well as inform the customer for promos, launching and all
the information needed will be posted as well.

2. Method of Sales and Distribution (stores, offices, kiosks, catalogs, e/mail, website)
We will distribute the quantity of product according to the demand. The distribution of the
product will target primarily the UST area. We will also ask the help of our IT friends to help us
create a website that advertises my product. Putting ‘comments and suggestion’ box on my
website will surely help me determine on what to improve in my product. I will also organize a
stall near the schools or in the places where students always go for a free taste including
pamphlet catalogs so that the market would know the products objectives and advantages.

Inside the campuses is the best way to distribute our product to the consumers because we
directly hand the product to them. We chose campuses for our location since our target market’s
is the students; it is a good location for our business. We’ll be able also to attract more customers
(other students and staffs) even if they do not belong in our target market.

3. Packaging (quality considerations and packaging)

The packaging of our product will be a small box that is made up from cardboard package with
our own logo and tagline for the product. Paper is a thin material mainly used for writing,
printing or for packaging. It is produced by pressing together moist fibers, typically cellulose
pulp derived from wood, rags or grasses, and drying them into flexible sheets. Paperboard,
sometimes known as cardboard, is generally thicker (usually over 0.25 mm or 10 points) than
paper. . According to ISO standards, paperboard is a paper with a basis weight (grammage)
above 224 g/m², but there are exceptions. Paperboard can be single or multiple. According to the
website: http://onlinelibrary.wiley.com, the effect of color on sweetness perception, flavor
intensity, acceptability and thirst quenching was evaluated. Consumers thought the sweetest
beverages and those colored brown, red and orange would satisfy thirst the most. The association
of sweetness with thirst quenching ability was an unexpected result but one that was validated in
several of the panel studies which followed. The preliminary study done with a full factorial
design showed that the samples with the lowest levels of acid and sugar as well as a combination
of those with the lowest color and lowest sugar provided the greatest perception of thirst
quenching. Sweetness and perceived ability to quench thirst were found to be significantly
affected by color in two of the three panels while flavor intensity and acceptability were found to
be significantly affected in only one panel. These results indicate that color is related to quality

36
characteristics other than appearance and should be considered in decisions affecting such
characteristics.

4. Pricing (price strategy and competitive position)

Pricing is difficult and must reflect supply and demand relationship. Pricing a product too high or
too low could mean a loss of sales for the organization. Pricing should take into account the
following factors:
 Fixed and variable costs.
 Competition
 Company objectives
 Proposed positioning strategies.
 Target group and willingness to pay.
An organization can adopt a number of pricing strategies. The pricing strategies are based much
on what objectives the company has set itself to achieve.

5. Branding

“Not just your ordinary dessert!”

37
Branding is not only about getting your target market choose your product over you competitors,
but it is also about getting your prospects to see you as the only one that provides a solution to
their problems.
 The objectives that a good brand will achieve include:
 Delivers the message clearly
 Confirms your credibility
 Connects your target prospects emotionally
 Motivates the buyer
 Concretes User Loyalty
 To succeed in branding you must understand the needs and wants of your customers and
prospects. You do this by integrating your brand strategies through your company at
every point of public contact.

6. Database Marketing (Personalization)

CLIENT’S DETAILS:

38
LAST NAME: FIRST NAME: MIDDLE NAME:

AGE: GENDER: CIVIL STATUS:

ADRESS:

DATE OF BIRTH: TELEPHONE #: MOBILE #:

SCHOOL: YR/COURSE: EMAIL ADD:

INTERESTS:

7. Sales Strategies (direct sales, direct mail, email, affiliate, reciprocal, and viral marketing)

According to http://smallbusiness.chron.com a sales strategy is a plan by a business or individual

on how to go about selling products and services and increasing profits. Sales strategies are
typically developed by a company’s administration, along with its sales, marketing and
advertising managers. All involve “pitches,” or key points to address when speaking with
potential consumers. Some of these pitches, such as those used by telemarketers, may have to be
memorized and communicated verbatim.
There are 5 steps to a successful sales strategy:
1. Define your target market. --Knowing this is critical to your sales success.
2. Determine your outreach. --Will you could call or network or both?
3. Know your questions. --Before you go on a sales appointment, create a list of questions to ask
the prospect.
4. Deliver and build. --Deliver on what you said you were going to do for the prospect. Then
make sure you build the relationship.
5. Monitor. --This is one of the most critical aspects of a successful sales strategy.

39
Strategies to apply:
 Raffle tickets to those who have a minimum receipt of 250.00 and will have a chance to
win 2 movie tickets.
 Free taste for the first 2 months so that people would be aware of the taste of our product
and will come back.
 We will also going to have sponsorships and will give button pins for the 1 st 3 months of
the business.

8. Sales Incentives/Promotions (samples, coupons, online promo, add-ons, rebates, etc.)

Giving out free taste of our product, coupons or raffle tickets will surely help us attract
customers. Since study shows that Filipinos usually loves buying things that has promotions and
that are affordable.

9. Advertising Strategies (traditional, web/new media, long-term sponsorships)

There are many ways in which you can advertise your product, newspapers, TV ads, magazines;
social networking sites, flyers, posters and mobile announcement are the ones that can help you
advertise your product to the market. But since I am just starting to have my own business I
might have a problem when it comes to my earnings. Due to financial inadequate, some of these
advertising strategies might not be used because it is too expensive such as newspaper, TV ads
and magazines. Instead of relying with this advertisement I have researched a way of advertising
my product which will not cost me a lot. Word of mouth market is an unpaid form of
promotional in which satisfied customers tell other people how much they like a product.
According to Entrepreneur Media, word-of-mouth is one of the most credible forms of
advertising because people who don't stand to gain personally by promoting something put their
reputations on the line every time they make a recommendation.

40
Strategies that we want to apply:
 We are planning to make a website for our product that will help us promote it as well as
inform the customer for promos, launching and all the information needed will be posted
as well. Also the contact number and trivia about our product.
 We are planning also to create our own page on facebook which according to
http://www.ebizmba.com/, Facebook remains the number one most popular social
networking site.
 We are also going to print tarpaulins that will be posted around UST.
 We are also to give flyers around UST so that people may know that Dessert Project is
existing and been operating.

10. Public Relations (online presence, events, press releases, interviews)

PR - or public relations - means getting people to talk and think about your business in a positive
way. It can be a vital weapon in your business' armory. It's a way to get good publicity without
advertising. Also if there's ever a problem facing your business it helps you deal with it
effectively.
The different tools that you can use in advertising The Dessert Project:
 Blogging
 Social media networks such as Facebook, Twitter, etc…

11. Networking (memberships and leadership positions)

Business networking is leveraging your business and personal connections to bring you a regular
supply of new business. Networking for business growth must be strategic and focused. Not
everyone you meet can help move your business forward--but everything you do can be driven
by the intention to grow your business. You have total control over whom you meet, where you
meet them and how you develop and leverage relationships for mutual benefit. You have total
control over whether you enter into the unique 29 percent of the population that is separated by
six degrees (read The 29% Solution to learn more), whether you stay there, or whether you never

41
get there at all. Networking your business means you have to be proactive. The core of
networking is doing something specific each week that is focused on networking for business
growth. Make a plan, focus and be consistent. When you understand exactly what business
networking is and step up to the challenge, you'll find avenues of opportunity that you may have
otherwise never discovered, and you will be making an invaluable investment in the steady
growth of your business.

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C. Customer Service
1. Description of Customer Service Activities
Good customer service is one of the missions of any business. You can offer a lot of discounts or
promotion to your new customers but unless the customer will come back, your business will not
profit. Good customer service is simply all about making your customers want to go back to your
store. Good service of your product is one way that can satisfy the convenience of the customers.
Serving with a smile and a positive attitude can also help you increase your market sale. Our way
of serving the customers is by being nice and being friendly to them. We would entertain them
the best as possible. Server – would ask for their order in a friendly manner that comes with a
pleasing personality. Cashier – would announce the customer’s bill and ask kindly. A positive
attitude drives people away, while a good attitude makes people want to get more involved with
you and what you are doing. It doesn't matter what business you think you're in, you're still
always going to be in the "people" business, so you're always going to want to have an eye on
what you're doing to either attract people or drive them away. A good attitude will leave you
pumped and ready for the work, no matter what risks or sacrifices it entails.

2. Expected Outcomes of Achieving Excellence

When our business achieves its excellence, we will still have the same attitudes that we have;
positive thinking and by being down to earth person can help you to achieve success. We will
still continue to provide good quality of products to our customers. This will maintain the good
image and extend the good relationship of our company towards them. Change is inevitable in
every business. The customer’s preferences change this will also prevent them from getting tired
of buying dessert products. Although behind the success and the positive feedbacks that we will
be having, we also should be prepared for the negative comments/feedbacks that the people will
give you. Of course we really can’t please everyone’s preferences but instead of giving the
people back negative vibes we should always think positive and ignore all the negative feedbacks
that will just bring us down.

43
D.Implementation of Marketing Strategy
1. In-House Responsibilities

Tarpaulins will be spread out so that it will inform the consumers about the launching of our
dessert shop, it will be spread around the campus of UST and outside of the campus. Online
allocation is also included. Based on my research, over 900 million people actively like and
comment on face book an average of 3.2 billion times every day. Since we are also an active user
of face book and we have more than a thousand friends, we can connect and expose my product
by posting information about it and by tagging all of my friends so that they will be aware about
my business. Banners and posters will be used as well. All these advertising strategies will be
placed in crowded areas and inside of the school.

2. Out-Sourced Functions (advertising, public relations, marketing firms, ad networks, etc.)

Our business will have connections in other companies that will help us in promoting and
expanding our business. We will achieve to connect with the Newspaper Company like daily
inquirer in the promotion of our product. We would also try using magazines such as Food
Magazines to advertise our product.

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Production and Operation Plan
Product Description

 The Dessert Project gives a new way of presenting an ordinary pizza into a more
interesting sweet pizza in the society. This product will give us a taste that will surely be
different and interesting among other pizza products.
 The Dessert Project flavors is loaded with sweet toppings such as caramel,
marshmallows, nuts, chocolate chips, oreo, cookie butter, cream cheese, and fruits such
as blueberries, strawberries, mangoes, cherry and banana.

General Input-Process-Output Framework

Understanding Input-Process-Output Framework

The researchers use this technique to determine the interrelationship between different
kinds of business scales.

45
BUSINESS MODEL – THE DESSERT PROJECT

Input Process Output

 Potential Customers  Potential Customers  Store Type
- Students from - Contract (Minimum
 The Dessert Project
University of Santo number of order
Tomas requirement) - Black Forest
 Clients - Receives deliverables
 Investors  Clients - Cookie Butter
- Business Owners - Receives long term - Rocky Road
 Machineries benefits from the
company - Chocolate
- Refrigerator
- Baking Oven  Investors - Oreo Cheesecake
- Cash Register - Contract (Initial
- Strawberry
- Coffee Maker investment)
 Equipment - Return of Investment, Cheesecake
- Hairnet Dividends,
- Cherry Cheesecake
- Gloves Management
- Apron  Machineries - Blueberry Cheesecake
- Tray - Installation and
- Tongs Maintenance
- Spatula  Equipment
- Stool  Raw Materials
- Measuring Cup  Inventory
- Pizza Cutter - Itemizing current
- Box assets
- Weighing Scale  Location
- Attractive Location,
Accessibility
 Raw Materials - Contract regarding
- Chocolate Bar the rent
- All-purpose cream  Suppliers
- Glucose - Contract (Supplies)
- Cherry  Lenders
- Chocolate Candies - Helps to start a
Business Capital
- Hazelnut paste
 Entrepreneur and
- Peanuts Management Teams
- Marshmallow - Handles the entire
- Rice Crisp Business processes
- Chocolate chips  Employees
- Oreo - Improves both
product quality and
- Cream cheese bar
processes
- Powdered sugar
- Blueberry
- Strawberry
- Cookie butter
- Banana
- Pizza Dough
- Packaging
 Location 46
- Carpark, UST
 Suppliers
- Chocolate Lovers
A. Purchase

 Chocolate Bar Chocolate Candy store, SM

Lovers Quiapo Supermarket

 All-purpose Chocolate SM
cream Lovers Supermarket

 Glucose Chocolate
Lovers

 Cherry Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Chocolate Chocolate Candy store, SM

Candies Lovers Quiapo Supermarket

 Hazelnut paste Global Candy Store,

Culinary Quiapo

 Peanuts Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Marshmallow Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Rice Crisp Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Chocolate chips Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Oreo Chocolate Candy store,

Lovers Quiapo

 Cream cheese Chocolate SM

bar Lovers Supermarket

 Powdered sugar Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Blueberry Chocolate Candy store, SM

Lovers Quiapo Supermarket

 Strawberry Chocolate Candy store, SM

Lovers Quiapo Supermarket

47
  Cookie butter Chocolate SM
Lovers Supermarket

 Banana Wet Market, Wet Market, SM

Singalong Paco Supermarket

 Pizza Dough BAMBI Vienna Candy Store,

Bakery Quiapo

 Coffee Molino, Quiapo SM

Cavite Supermarket

 Iced Tea Quiapo

 Lemonade Quiapo

 Packaging RM Boxes Aeonplast

B. Transportation
From our store to suppliers:
BAMBI:  Tric ycle going to  Tax i g o i n g t o
(Located in bambang station cubao = P150.00-
Apacible, Paco ( P 2 0 . 0 0 ) - > L RT1 170.00 – 25
Bambang –United minutes travel.

48
 Manila): Nations (P12.00)
-> tricycle going
to Bambi
(P20.00) = P42.00
– 35 minutes
travel.

Chocolate Lovers  Tric ycle going to  Tax i g o i n g t o

(Located in legarda (P25.00) cubao = P150.00-
Cubao): - > L RT2 l e g a r d a - 170.00 – 30
betty go Belmonte minutes travel.
(P13.00) ->
Tric ycle going to
chocolate lovers
(P25.00) = P63.00
– 43 minutes
travel.

RM Boxes:  Tric ycle going to  Tax i g o i n g t o s t a .

(Located in legarda (P25.00) mesa = (P120.00-
sta.mesa) ->Jeepney going 150.00) – 20
to VMapa (P8.00) minutes travel.
= P33.00 – 30
minutes travel.

C. Storage
Since we are planning to have a store rather than a kiosk, we will be having a storage area for our
inventories and equipment inside our store. There is no need for our raw materials to be
refrigerated all of our inventories will be placed in a cabinet.

D. Store Layout

49
50
E. Process Plan for the product
 Chocolate Melting (Pre Operation)

 Cream Cheese Melting (Pre Operation)

 Step 1: Prepare the ingredients:

 500g Chocolate bar, All-purpose cream
 Cream Cheese bar and powdered sugar.
 Step 2:
 Chop the chocolate bar so that it would be easier to melt the chocolate.
 Chop the cream cheese bar so that it would be easier to melt the chocolate.
 Step 3:
 Place chopped chocolate in a mixing bowl. Heat heavy cream on 350F until it
comes to boil for 5mins.
 Place chopped cream cheese in a mixing bowl. Mix it with the powdered sugar for
5 mins.
 Step 4:
 Remove from heat and immediately pour cream over chocolate and stir until
completely mixed and glossy using a spatula.
 Preparation

(E)Step 1: Prepare the other ingredients:

 Product Assembly

(F)Step 2: Pre-heat the e-oven toaster for 2 minutes in 250f.

(G)Step 3: Prepare the pizza dough and heat it for 3 minutes in 250f.
(H)Step 4: Put the spread in the pizza dough.
(I)Step 5: Put all the toppings: approximately 2-3 minutes all in all
(J)Step 6: Heat the dessert for 3mins in 250f.
(K)Step 7: Put the dessert on the unfolded packaging then slice it into pieces then assemble
the packaging.

51
Task Predecessor Duration

A - 1 minute

B A 2 minutes

C B 5 minutes

D C 5 minutes

E - 2 minutes

F E 2 minutes

G F 3 minutes

H D,G 2 minutes

I H 3 minutes

J I 3 minutes

K J 2 minutes

52
 F. Process Plan (Business Operation)

Start

Arrange Check No Ready

Equipme Material to
nts s open?

Yes

Clean the Employees Open the

Stall in work Store
Station

Customer
Entry

Order
No placi
Exit
ng?

Yes

Get the Product Preparatio

Informati n of
Order
on materials

Mixing of
Paymen chocolate
and cream
t

Receiving Packagin Product

Area Assembly
g

Custom
er Exit

End

53
54
G. Aggregate planning and master Scheduling

55
H. Consistency of the product
SIZE 5 SIZE 7 SIZE 10

1. Black Forest

a. Chocolate Spread 1 1½ 2
tablespoon tablespoon tablespoon

b. Cherry 1 1½ 2
tablespoon tablespoon tablespoon

c. Shaved Chocolates 1 teaspoon 2 teaspoon 1

tablespoon

2. Rocky Road

a. Chocolate Spread 1 1½ 2
tablespoon tablespoon tablespoon

b. Nuts 2 teaspoon 1 1½
tablespoon tablespoon

c. Marshmallow 1/4 cup 1/3 cup 1/2 cup

3. Chocolate

a. Hazelnut chocolate 1 1½ 2
spread tablespoon tablespoon tablespoon

b. Chocolate candies 2 teaspoon 1 1½

tablespoon tablespoon

c. Rice Crisp 2 teaspoon 1 1½

tablespoon tablespoon

d. Chocolate chips 2 teaspoon 1 1½

tablespoon tablespoon

4. Oreo Cheesecake

a. Oreo 1/4 cup 1/3 cup 1/2 cup

b. Cream cheese 1 1½ 2
tablespoon tablespoon tablespoon

5. Blueberry Cheesecake

56
 a. Blueberry 1 1½ 2
tablespoon tablespoon tablespoon

b. Cream Cheese 1 1½ 2
tablespoon tablespoon tablespoon

6. Strawberry Cheesecake

a. Strawberry 1 1½ 2
tablespoon tablespoon tablespoon

b. Cream Cheese 1 1½ 2
tablespoon tablespoon tablespoon

7. Cherry Cheesecake

a. Cherry 1 1½ 2
tablespoon tablespoon tablespoon

b. Cream Cheese 1 1½ 2
tablespoon tablespoon tablespoon

8. Cookie Butter

a. Cookie butter 1 1½ 2
tablespoon tablespoon tablespoon

b. Chocolate Chips 2 teaspoon 1 1½

tablespoon tablespoon

c. Banana 5 sliced 8 sliced 24 sliced

pcs pcs pcs

I. Feedback
 We will use our data base marketing for all of our customers to gain feedbacks and
suggestions for the improvement of our business.

57
  We will place a ‘freedom wall’ in our store so that customers can express their thoughts
about our store.
 We will place a suggestion box near our cashier area so that the customers will give their
feedbacks and suggestions that can help us to improve our store.
 For the first month of running our store, we are planning to conduct a survey every after
the customers finish their meals.

J. Delivery
 After receiving the customer’s orders, we will directly deliver it to them not more than 10
minutes as we will still have to prepare for their orders.

K. Facility Requirement and Location Analysis

Facility Requirement

1. Facility Requirement System

1.1 The Facility Requirement System designs the standards in choosing the right facilities
to be used in order to operate the Business orderly. To promote The Dessert Project’s
efficiency, the owners should set the following standards goals:
1.1.1 List the number of maximum usage of each equipment/facility
1.1.2 Set control measures in each equipment/facility
1.1.3 Use appropriate tools in doing the dessert.
1.2 Responsible Person
1.2.1 The Listing of maximum usage of each equipment/facility should be done by
one employee supervised by the Operations Manager
1.2.2 Setting control measures of each equipment/facility should be done primarily
by the Operations Manager
1.2.3 Using appropriate tools in doing the Dessert should be done by the Employees
supervised by the Operations Manager
1.3 Needed Facilities/Equipment for Operations and their Life Span

Facilities/Equipment Life Span Control Measures Source of

for Usage Information
Refrigerator 5 Years 24 Hours Operation Supplier

58
 (To preserve the
Pizza Dough)
Baking Oven 9 Years Should be dry and Supplier
clean (To prevent
moulds in every
corner)
Tray 3 Years Should be wiped Supplier
and dried-up
(Every after
Serving)
Pizza Tongs 3 Years Should be wiped Supplier
and dried up (To
prevent rusting)
Gloves 1 Day Should be plastic Supplier
(daily replacement)
Apron 1 Day Should change Supplier
daily (Laundry
every week)
Spatula 4 Years Should be wiped Supplier
and dried-up (To
prevent rusting)
Counter Serving 15 Years Should keep clean Supplier
Table and dry (To prevent
wet bacteria)
Stool 10 Years Should keep clean Supplier
by wiping it daily
Measuring Cup 4 Years Should keep dry Supplier
and stored at a
clean storage area
Pizza Cutter 2 Years Should keep dry to Supplier
prevent rusting
Hairnet 1 Week Should replace the Supplier
hairnet once a week
Box 1 Week Should keep in a Supplier
clean storage area

59
Preparation Table 10 Years Should be clean Supplier
and Cabinet and dry to prevent
termites
Weighing Scale 10 Years Should be dry and Supplier
clean
Cash Register 10 Years Should have a lock Supplier
or a code managed
by the finance
manager
Garbage Bin 5 Years Should wash daily Supplier
(To prevent
unnecessary odour)
Fire Extinguisher 5 Years Should keep on an Supplier
open storage area
(To prevent fire)
HP Computer 5 Years Should have anti- Supplier
virus and disc
cleanser to prevent
loss of data
warehousing
Ledger 1 Day Should be kept in a Business Owners
vault
Office Supplies 1 Month Should be kept in a Business Owners
- Bond Paper proper storage area.
- Ballpen Should be given
- Marker upon request
- Scissors
- Liquid
eraser
- Folders
- Stapler
- Paper Clip
- Glue

60
 - Scotch Tape

Location Analysis

There are five key factors in selecting a good location in operating businesses. These are
customer accessibility, business environment conditions, availability of resources, entrepreneur
personal preference and site availability and cost. (Moore et.al, 2012)

Based on the researchers in marketing plan our group intend to operate in the place where
it has high student population because it is their target market. UST is considered a good location
to operate the researchers business because it satisfies the majority of the key factors in selecting
a good location.

61
Venue Address Target Market Customer Cost Space
Traffic
UST, University of Santo UST students from all 425 people in P30,000.00 8.2 x
levels (grade school-
Carpark Tomas, Espana college). 5 minutes Per month 6.5m
Boulevard, Sampaloc,
Faculty members
Manila, 1015
Administrative staff of
UST.

Hospital staff, Doctors,

Administrative staff
Employees of the
hospital.

Family
members/visitors of
the confined patients.

L. Process plan and Standard Procedures

Inventory Management
A, B, C Classification
A Classification - A goods that are highest in consumption but shares the least number in
total inventory items.
B Classification - goods that are medium in consumption.
C Classification – A goods that are lowest in consumption but has the most number in
inventory items.

62
 Raw Materials Lead Time Classification
Pizza Dough 2 Days A Classification
Packaging Materials 1 Day A Classification
Chocolate Bar 1 Day B Classification
All Purpose Cream 1 Day B Classification
Marshmallows 1 Day C Classification
Chocolate Candy 1 Day C Classification
Nuts 1 Day C Classification
Chocolate Chips 1 Day C Classification
Rice Crisp 1 Day C Classification
Blueberry 1 Day B Classification
Cream Cheese 1 Day B Classification
Powdered Sugar 1 Day C Classification
Cherry 1 Day B Classification
Strawberry 1 Day B Classification
Oreo 1 Day C Classification
Cookie butter 1 Day B Classification
Banana 1 Day B Classification
Glucose 1 Day C Classification
Hazelnut Paste 1 Day B Classification

Since it is a startup business it is advisable to use production leveling. It results in a smooth level
of operation that avoids the cost of changing production level.
Average daily production= total production (units) / total working days
Period 1 2 3 4 5 6 7 Total
(Days)
Forecast 44 43 44 43 43 43 43 303
(Units)
Production 43 43 43 43 43 43 43 301
(Units)

Logistics
Inventory Mode of ordering Mode of transportation

Pizza Dough Call the Supplier Refrigerated van/truck

Packaging Materials Call the supplier Van/truck

Chocolate Bar Buy directly to the Refrigerated Van/truck

63
 supplier

All Purpose Cream Buy directly to the FX/Taxi

supplier

Marshmallows Buy directly to the FX/Taxi

supplier

Chocolate Candy Buy directly to the FX/Taxi

supplier

Nuts Buy directly to the FX/Taxi

supplier

Chocolate Chips Buy directly to the FX/Taxi

supplier

Blueberry Buy directly to the FX/Taxi

supplier

Rice Crisp Buy directly to the FX/Taxi

supplier

Cream Cheese Buy directly to the FX/Taxi

supplier

Powdered Sugar Buy directly to the FX/Taxi

supplier

Cherry Buy directly to the FX/Taxi

supplier

Strawberry Buy directly to the FX/Taxi

supplier

Oreo Buy directly to the FX/Taxi

supplier

Cookie butter Buy directly to the FX/Taxi

supplier

Banana Buy directly to the FX/Taxi

supplier

Glucose Buy directly to the FX/Taxi

supplier

64
 Hazelnut Paste Call the supplier Van/Taxi

Quality Processes

To ensure the quality process of the products there are set of standards that are being followed in
each and every segment of the production process. In purchasing materials from the supplier the
standard is the supplier must be an ISO accredit. When the materials has been purchased and
acquired the person in charged in the inventory will arrange the product in First In, First out
(FIFO) basis on the perishable goods. During the production process the person in charge will
see to it that all materials are in good shape, sanitation, and the product will go on the entire
process until it served to the customers.

Business Models

1. Health and Safety

1.1 Elimination of Waste

1.1.1 Waste is one of society’s environmental problems. In
Thee Dessert Project’s current situation, huge
65
 amounts of their non-renewable resources like plastics and Pizza Dough are wasted
by making them into disposable items. In order to achieve this, proper Waste
Management should be applied.

1.2 Substitution of Goods

1.2.1 After eliminating waste from the materials purchased, we minimize waste by
substituting goods with same quality but with less harmful components.

1.3 Control Measures

1.3.1 Control Measures are set to prevent hazardous occurrence inside the Business.
1.3.2 It also means testing all control measures regularly including equipment, ways of
working and behavior of staffs, to make sure that they work properly.

1.4 Warning
1.4.1 Proper orientation inside the company’s organization should be implemented.
Warnings are appropriate when a worker’s performance is unsatisfactory; through
this, unsatisfactory behavior can cause harmful effects to equipment and other.

1.5 Control of Top Management

1.5.1 Only the Top Management can set their different standards in ensuring the health and
safety of their workers and the equipment as well.

2. Setting a Quality Control in Producing

AnalyzeCompany’s Short
and Long Term Goals Plan

Align the Processes in

producing the Dessert with
Do
the Business’ Goals

66
 Assess if there’s a need
for improvement
Check

Apply continuous
improvement to the
production of dessert by
adding more flavors and
different sizes Act

3. Expiration of the product

Our product is best before 1 hour but to experience the same result you can reheat the
product.
3.1 Plan
3.1.1 Planning of The Dessert Project’s general goal which is to provide new taste of
Dessert.

3.2 Do
3.2.1 Align the Business’ processes with the goals so that the Business will go beyond what
is expected from them and for them to know where the business is heading.

3.3 Check
3.3.1 Check if there’s an opportunity for improvement so that the financial results,
customer satisfaction and employee satisfaction will be achieved.

3.4 Act
2.4.1 If there’s a need for improvement, The Dessert Project should implement solutions
with regards to the scene failures or business’ short comings.

67
Waste Management

The business will provide 2 trash bins to segregate the biodegradable from non-
biodegradable waste to show the society that the business is concern to the environment to where
they are operating. To prevent contamination in the food:

 Wastes should immediately place in the designated bin

 Wastes handler collects and disposes of wastes immediately after the operation
 Wastes should only be stored for up to 1 day
Operations Analysis and Maintenance
Slack – excess time in producing the product.
Critical Path – earliest time to complete the production of finished goods.
Task Early Start Early Finish Late Start Late Finish Slack

A 0 1 0 1 0

B 1 3 1 3 0

C 3 8 3 8 0

D 8 13 8 13 0

E 0 2 6 8 6

F 2 4 8 10 6

G 4 7 10 13 6

H 13 15 13 15 0

I 15 18 15 18 0

J 18 21 18 21 0

K 21 23 21 23 0

68
Paths:
 A,B,C,D,H,I,J,K – 23 minutes (Critical Path)
 E,F,G,H,I,J,K – 17 minutes (Assembly time of the product)
Maintenance
Materials Maintenance
Refrigerator Weekly defrost of refrigerator

pizza cutter Disinfect by soaking in boiling water after

operating hours.
Baking Oven Daily cleaning after operating hours.
Coffee Maker Daily cleaning after operating hours.
Juice Container Daily cleaning after operating hours.
Cash register Proper opening and closing
Pizza tongs Disinfect by soaking in boiling water after
operating hours
Measuring cup Wash every after use

Preparation table and cabinet Always wash the table every after use.
Spatula Wash every after use
Tray Wash every after use
Hair net Daily change of hair net
Gloves Use sterilized gloves disposable gloves
Apron Wash the apron after the operating hours
Stall Always keep the stall’s vicinity free from
garbage.
Storage Arrange the materials and regularly clean the
storage area.
Plates Watch every after use.
Spoon, fork and knife Watch every after use.
Glass Watch every after use.
Coffee Cup Watch every after use.

69
 Inventory Storage Arrangements

Pizza Dough Refrigerator Inside the freezer - FIFO

Packaging Materials Drawer Before the serving area

Chocolate Bar Refrigerator Inside the fridge - FIFO

All Purpose Cream Refrigerator Inside the fridge - FIFO

Blueberry Refrigerator Inside the fridge - FIFO

Cream Cheese Refrigerator Inside the fridge - FIFO

Strawberry Refrigerator Inside the fridge - FIFO

Cherry Refrigerator Inside the fridge - FIFO

Marshmallows Small Containers In the product assembly table

Chocolate Candy Small Containers In the product assembly table

Nuts Small Containers In the product assembly table

Chocolate Chips Small Containers In the product assembly table

Cookie Butter Cabinet In the product assembly table

Banana Cabinet In the product assembly table

Oreo Small Containers In the product assembly table

Glucose Cabinet In the product assembly table

Powdered Sugar Cabinet In the product assembly table

Hazelnut Paste Cabinet In the product assembly table

Rice Crisp Small Containers In the product assembly table

70
End of Period Reporting

Rationale

The table shown below is the templates to be used by the manager who is handling and
monitoring their supplies of raw materials. This will help them to regularly inspect the
inventory levels of their products materials.

Template

Pizza Dough
Days 1 2 3 4 5 6 7
Forecast(Units) 44 43 44 43 43 43 43
Available 150
Supplies (Units)
MPS (Units) 60
Ending Inventory
(Units)

Toppings
44 units of chocolate dessert
Days 1 2 3 4 5 6 7
Forecast 3 3 3 3 3 3 3
(Box)
Available 7
Supplies
(Box)
MPS (Box) 7
Ending
Inventory
(Box)

Chocolate Bar /Cream Cheese Bar

3 Chocolate bar = 44 units of chocolate dessert

71
Days 1 2 3 4 5 6 7
Forecast 3 3 3 3 3 3 3
(Bar)
Available 7
Supplies
(Bar)
MPS (Bar) 5
Ending
Inventory
(Bar)

All Purpose Cream

4 Boxes of All-purpose cream = 44 units of chocolate dessert
Days 1 2 3 4 5 6 7
Forecast 4 4 4 4 4 4 4
(Bar)
Available 7
Supplies
(Bar)
MPS (Bar) 5
Ending
Inventory
(Bar)

M. Total Quality Management

Our company will take a total quality management approach that seeks to improve
quality and performance which will meet or exceed customer expectations. The
company can achieve this by integrating all quality-related functions and processes
throughout the company. Using TQM our business will look at the overall quality
measures used by our company including managing quality design and development,
quality control and maintenance, quality improvement, and quality assurance. We

72
 should take into account all quality measures taken at all levels and involving all
company employees.

Financial Plan
Product Cost Breakdown

Quantity Ingredients Unit Cost Total Cost

100 pcs Pizza Dough 10 19.65/pc 1965.00

inch

100 pcs Pizza Dough 7 14.70/pc 1470.00

73
 inch

100 pcs Pizza Dough 5 7.35/pc 735.00

inch

8 pieces Chocolate Bar 179.00 / 1432.00

kilo

17 pcs Speculoos 299.00/ 400 5083.00

Cookie Spread grams

4 pieces Cream Cheese 450.00 / 1800.00

1.36 kg

4 pieces Anchor Whip 348.00 / 1 1392.00

Cream liter

1 piece Hazelnut Paste 450.00 / 450.00

500 grams

34 packs Marshmallow 133.00/ 760 4522.00

grams

2 pieces Glucose 81.00 / 900 162.00

grams

1 pack Powdered Sugar 150.00 / 150.00

2272 grams

11 cans Blueberry 150.00 / 21 1650.00

oz

11 cans Cherry 150.00 / 21 1650.00

oz

11 cans Strawberry 150.00 / 21 1650.00

oz

51 packs Oreo 81.00 / 500 4131.00

grams

5 packs Nuts 286.00 / 1430.00

kilo

23 packs Rice Crisp 46.00/ 250 1058.00

grams

5 ½ kilos Banana 89.77 / 930 538.62

74
 grams

6 packs Chocolate Chip 153.00/kilo 918.00

23 pack Chocolate 55.00/ 250 1265.00

Candies grams

Total Php 33,451.62

Number of Servings:

100 pcs of Black forest pizza 10 inch, 7 inch and 5 inch

100 pcs of Rocky Road pizza 10 inch, 7 inch and 5 inch

100 pcs of Chocolate pizza 10 inch, 7 inch and 5 inch

100 pcs of Oreo Cheesecake pizza 10 inch, 7 inch and 5 inch

100 pcs of Blueberry pizza 10 inch, 7 inch and 5 inch

100 pcs of Strawberry pizza 10 inch, 7 inch and 5 inch

100 pcs of Cherry pizza 10 inch, 7 inch and 5 inch

100 pcs of Cookie Butter pizza 10 inch, 7 inch and 5 inch

The Dessert Project Company

Income Statement
For the month ended December 31, 2014

University of Santo Tomas

Sales Php 140,449.17

COGS (51072.42)

Gross Profit Php 89,376.74

Operating Expense

75
 Rental Fee

Monthly Rental Fee ( Php 30,000.00 )

Utilities

Monthly Cost of Electricity 6,936.21

Monthly Cost of Water 1,244.19

Monthly Cost of Internet and 999.00

Telephone

Monthly Utility Bills ( Php9,179.40)

Admin Expense
(Good for 6 months)

Quantity Office Supplies Unit Cost Total Cost

2 HBW Ballpen 5.00 10.00

1 Record Book 36.50 73.00

3 Tape 3.50 10.50

1 Staple Refill 25.50 25.50

4 Receipt 33.00 132.00

1 Carbon Paper 6.23 6.23

1 Elmers Glue 41.50 41.50

6 pages( black Working Papers 1.50 (black 394.00

ink) ink)

77 pages 5.00 (colored

(colored ink) ink)

Total Admin Expense (Php

692.73)

Transportation Expense

76
 (Good for 6 months)

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)
= 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)

77
 = 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00

Total 2,368.00.00

Admin( transportation expense for 16.00

purchasing the office supplies)

Selling (transportation expense for 2,368.00

purchasing the ingradients)

Total Transportation Expense ( Php 2,384.00)

Business Expense

Description Total Cost

Business Permit 7,000.00

Total Business Expense 7,000.00

Glassware, Flatware, and Smallware

Quanity Description Unit Cost Total Cost

10 Spoon 19.96 / pc 199.60

10 Fork 19.96 / pc 199.60
10 5 inch plate 52 / pc 520

10 7 inch plate 62 / pc 620

78
 10 10 inch plate 77 / pc 770

10 Glasses 20 / pc 200
10 Knives 87.44 / pc 874.40
Total Promotion and Advertisement ( Php
3,383.60)

Promotion and Advertisement

(Good for 6 months)

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
94 Free Taste 175 3,243.00
417 Flyers 1 / page 417

58 Coupons 1.07/ page 62.06

2 Movie Ticket 210 / person 420
416 Loyalty 1 / pc 416.00
Incentive Card
83 Giveaways 4 /pc 332.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
5,340.06)

Selling Expense
(Good for 6 months)

Quanity Description Unit Cost Total Cost

33 pcs Packaging 10 18.70/pc 617.00

inch

17 pcs Packaging 7 10.95/pc 186.15

inch

8 pcs Packaging 5 6.00/pc 48.00

inch

4 packs Folded Tissue 158.20 / pack 632.80

Total Promotion and Advertisement ( Php

79
 1,483.95)

Salaries and Wages

(Good for 6 months)

1 worker 22,572

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 5,400

5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

Monthly Salary Expense (Php 27,972)

Total Operating Expense ( Php 87,435.75 )

Less:

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated

80
 Useful Life

1 Oven 9,000.00- 53.25

53.57/168months

1 Chest 12,648.00- 69.88

Freezer 70.27/180months

1 Computer 13,899- 227.79

231.65/60months

20 Chairs 15,000.00 – 82.87

83.33/180months

5 Tables 10,000.00- 55.25

55.56/180months

1 Aircon 15,498.00- 254

258.30/60months

1 Electric 898- 4.96

Stove
4.98/180months

Total Depreciation Expense (per year) (Php 748.00)

Net Operating Income Php 1,192.99

Net Income per Year PHP 1,192.99

Net Profit Ratio 1,192.99 / 140,499.17= 8.49 %

81
 The Dessert Project Company
Income Statement
For the month ended June 30, 2014

University of Santo Tomas

Sales Php 842,995.02

COGS (306,434.52)

Gross Profit Php 536,560.50

Operating Expense

Rental Fee

Monthly Rental Fee ( Php 180,000.00 )

Utilities

Monthly Cost of Electricity 41,620.86

Monthly Cost of Water 7,465.14

Monthly Cost of Internet and 5,994.00

Telephone

Monthly Utility Bills ( Php 55,076.40)

Admin Expense
(Good for 6 months)

Quantity Office Supplies Unit Cost Total Cost

12 HBW Ballpen 5.00 60

6 Record Book 36.50 219

18 Tape 3.50 63

6 Staple Refill 25.50 153

24 Receipt 33.00 792

82
 6 Carbon Paper 6.23 37.38

6 Elmers Glue 41.50 249

36 Working Papers 1.50 (black 2364.00

pages( black ink)
ink)
5.00 (colored
462 pages ink)
(colored ink)

Total Admin Expense (Php

4,156.38)

Transportation Expense
(Good for 6 months)

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)
= 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
UST to Legarda 25.00

83
 1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00 x 6 (months)

Total 14,208.00

Admin( transportation expense for 96.00

purchasing the office supplies)

Selling (transportation expense for 14,208

purchasing the ingradients)

Total Transportation Expense ( Php 14,304.00)

Business Expense

Description Total Cost

84
 Business Permit 7,000.00

Total Business Expense 7,000.00

Glassware, Flatware, and Smallware

Quanity Description Unit Cost Total Cost

20 Spoon 19.96 / pc 399.20

20 Fork 19.96 / pc 199.60
20 5 inch plate 52 / pc 1,040

20 7 inch plate 62 / pc 1,240

20 10 inch plate 77 / pc 1,540

20 Glasses 20 / pc 400.00
20 Knives 87.44 / pc 1,748.80
Total Promotion and Advertisement ( Php
6,567.60)

Promotion and Advertisement

(Good for 6 months)

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
189 Free Taste 175 6,486.00
800 Flyers 1 / page 800

300 Coupons 1.07/ page 321

12 Movie Ticket 210 / person 2,520
2500 Loyalty 1 / pc 2,500
Incentive Card
150 Giveaways 4 /pc 600.00
Sponsorship ----------
Total Promotion and Advertisement ( Php 13,677)

Store Repair and Maintenance Expense

Description Total Cost

85
 Renovation 70,000.00

Total Store and Maintenance 70,000.00

Expense

Selling Expense
(Good for 6 months)

Quanity Description Unit Cost Total Cost

200 pcs Packaging 10 18.70/pc 3740.00

inch

110 pcs Packaging 7 10.95/pc 120.9

inch

50 pcs Packaging 5 6.00/pc 300

inch

24 packs Folded Tissue 158.20 / pack 3796.80

Total Promotion and Advertisement ( Php 7,957.7)

Salaries and Wages

(Good for 6 months)
1 worker 135,432

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 32,400

5 rate/hr x 10 hrs = 50 per day

86
 50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 X 6

Monthly Salary Expense (Php 167,832)

Total Operating Expense ( Php 526,571.08 )

Less:

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 53.25

53.57/168months

1 Chest 12,648.00- 69.88

Freezer 70.27/180months

1 Computer 13,899- 227.79

231.65/60months

20 Chairs 15,000.00 – 82.87

83.33/180months

5 Tables 10,000.00- 55.25

87
 55.56/180months

1 Aircon 15,498.00- 254

258.30/60months

1 Electric 898- 4.96

Stove
4.98/180months

Total Depreciation Expense (per month) (Php 748.00)

Net Operating Income Php 9,241.50

Net Income per Year PHP 9,241.50

Net Profit Ratio 9,241.50 / 842,995.02= 1.10 %

The Dessert Project Company

Income Statement
For the year ended December 31, 2014

University of Santo Tomas

Sales Php 1,685,390.00

COGS (612,869.09 )

Gross Profit Php 1,072,520.91

Operating Expense

Rental Fee

Yearly Rental Fee ( Php 360,000.00 )

Utilities

88
 Yearly Cost of Electricity 83,234.52

Yearly Cost of Water 14,930.28

Yearly Cost of Internet and Telephone 11,988.00

Yearly Utility Bills ( Php 110,152.80 )

Admin Expense
(Good for 1 year)

Quantity Office Supplies Unit Cost Total Cost

24 HBW Ballpen 5.00 120.00

12 Record Book 36.50 438.00

32 Tape 3.50 112.00

12 Staple Refill 25.50 306.00

48 Receipt 33.00 1,584.00

12 Carbon Paper 6.23 74.76

12 Elmers Glue 41.50 498.00

72 Working Papers 1.50 (black 4,728.00

pages( black ink)
ink)
5.00 (colored
924 pages ink)
(colored ink)

Total Admin Expense (Php

7,860.76)

Transportation Expense
(Good for 1 year)

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)

89
 = 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00

90
 days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00 X 12 (months )

= 28,416.00

Total 28,416.00

Admin( transportation expense for 192.00

purchasing the office supplies)

Selling (transportation expense for 28,416.00

purchasing the ingradients)

Total Transportation Expense ( Php 28,608.00)

Store Repair and Maintenance Expense

Description Total Cost

Renovation 70,000.00

Total Store and Maintenance 70,000.00

Expense

Business Expense

Description Total Cost

Business Permit 7,000.00

Total Business Expense 7,000.00

Glassware, Flatware, and Smallware

Quanity Description Unit Cost Total Cost

91
 30 Spoon 19.96 / pc 598.75
30 Fork 19.96 / pc 598.75
30 5 inch plate 52 / pc 1,560.00

30 7 inch plate 62 / pc 1,860.00

30 10 inch plate 77 / pc 2,310.00

30 Glasses 20 / pc 600.00
30 Knives 87.44 / pc 2,623.13
Total Promotion and Advertisement ( Php
10,150.63)

Promotion and Advertisement

(Good for 1 year)

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
187 Free Taste 175 6,486.00
5,000 Flyers 1 / page 5,000.00

700 Coupons 1.07/ page 750.00

24 Movie Ticket 210 / person 5,040.00
Loyalty 5,000.00
Incentive Card
1000 Giveaways 4 /pc 4,000.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
26,726.00)

Selling Expense

Quanity Description Unit Cost Total Cost

400 pcs Packaging 10 18.70/pc 7,480.00

inch

200 pcs Packaging 7 10.95/pc 2,190.00

inch

100 pcs Packaging 5 6.00/pc 600.00

92
 inch

80 packs Folded Tissue 158.20 / pack 6,328.00

Total Promotion and Advertisement ( Php
16,598.00)

Salaries and Wages

(Good for 1 year)

1 worker 270,864.00

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 64,800

5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

Monthly Salary Expense (Php 335,664.00)

Total Operating Expense ( Php 972,760.00)

Less:

Depreciation Expense

93
Quantity Equipment Unit cost – Depreciation
Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 596.94

642.86/14years

= 596.94

1 Chest 12,648.00- 786.99

Freezer 843.20/15years

= 786.99

1 Computer 13,899- 2,223.84

2,779.80/5years

= 2,223.84

20 Chairs 15,000.00 – 933.33

1000.00/15yrs

= 933.33

5 Tables 10,000.00- 622.22

666.67/15yrs

= 622.22

1 Aircon 15,498.00- 2,479.68

3,099.60/5yrs

=2,479.68

1 Electric 898-59.81/15yrs 55.88

Stove
= 55.88

Total Depreciation Expense (per year) (Php

7,698.88)

94
Profit before Tax Php 91,791.84

Tax (3%) 50,561.70

Net Income per Year PHP 41,230.14

Net Profit Ratio 41,230.14 / 1,685,390.00 = 2.44 %

Breakeven Point

Income Statement Per Year

Sales P1,685,390.00 ( 9,630.8 units x 175 selling price )

Cost of Goods Sold 654,009.23

______________________________________________________________________
Gross Profit 1,031,290.77

Less: Operating Expense

Rent (360,000.00)

Utilities (110,152.80)

Ads and Promotion Strategies (26,726.00)

Salary Expense (335,664.00)

Admin Exp. (7,860.76)

Store Maintenance ( 70,000.00)

Selling Expense (16,598.00 )

Business Exp. ( 7,000.00 )

Glassware Exp. (10,150.63 )

Transportation Exp. (28,608.00)

Depreciation Expense (7,860.76)

95
Total Operating Expense 980,729.07

Profit before Tax Php 50,561.70

Tax (3%) 50,561.70

Net Income per Year PHP 0

The Dessert Project Company

Statement of Cash Flows
For the year ended December 31, 2014

Cash flows from operating activities:

Collections from customers Php 1,685,390.00

Purchase of inventories (1,225,738.18)
Payment for rent (360,000.00)
Payment for utilities (110,152.80)
Payment for Salaries (335,664.00)
Payment for Supplies (7,860.76)
Payment for Store Maintenance (70,000.00)
Payment for Selling Exp. (16,598.00)
Payment for Business Permit (7,000.00)
Payment for Glasswares (10,150.63)
Payment for Transportation (28,608.00)
Payment for Advertisement (26,726.00)

Net Cash inflows from operating activities ( Php 513,108.37)

Cash flows from investing activities:

Purchase of machinery and equipment 116,943.00

Net cash outflows from investing activities (116,943.00)

Cash flows from financing activities:

96
 Investment by the owners 650,000.00

Net cash inflow from financing activities 650,000.00

Net change in cash 19,948.63

Cash, September 1, 2013 0

Cash, September 30, 2013 Php 19,948.63

The Dessert Project Company

Balance Sheet

For the year ended December 31, 2014

Assets

Current Assets:

Cash and Cash equivalents Php 19,948.63

Inventories 612,869.09

Non-Current Assets:

Property, Plant and Equipment 116,943.00

NET ASSETS 749,760.72

Owners Equity

Owners Capital 650,000.00

Ratained Earnings 99,760.72

TOTAL OWNERS EQUITY 749,760.72

1. Asset Capital

97
 Equipment Price
Oven 9,000.00
Chest Freezer 12,648.00
Computer 13,899.00
Tables 10,000.00
Chairs 15,000.00
Aircon 15,498.00
Store Renovation 40,000.00
Electric Stove 898.00
Total 116,943.00

2. Working Capital
Operating Expense

Rental Fee

Yearly Rental Fee ( Php 360,000.00 )

Utilities

Yearly Cost of Electricity 83,234.52

Yearly Cost of Water 14,930.28

Yearly Cost of Internet and Telephone 11,988.00

Yearly Utility Bills ( Php 110,152.80 )

Admin Expense
(Good for 1 year)

Quantity Office Supplies Unit Cost Total Cost

24 HBW Ballpen 5.00 120.00

12 Record Book 36.50 438.00

32 Tape 3.50 112.00

12 Staple Refill 25.50 306.00

98
 48 Receipt 33.00 1,584.00

12 Carbon Paper 6.23 74.76

12 Elmers Glue 41.50 498.00

72 Working Papers 1.50 (black 4,728.00

pages( black ink)
ink)
5.00 (colored
924 pages ink)
(colored ink)

Total Admin Expense (Php

7,860.76)

Transportation Expense
(Good for 1 year)

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)
= 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)

99
 = 64.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00 X 12 (months )

= 28,416.00

Total 28,416.00

Admin( transportation expense for 192.00

purchasing the office supplies)

Selling (transportation expense for 28,416.00

purchasing the ingradients)

Total Transportation Expense ( Php 28,608.00)

Store Repair and Maintenance Expense

100
 Description Total Cost

Renovation 70,000.00

Total Store and Maintenance 70,000.00

Expense

Business Expense

Description Total Cost

Business Permit 7,000.00

Total Business Expense 7,000.00

Glassware, Flatware, and Smallware

Quanity Description Unit Cost Total Cost

30 Spoon 19.96 / pc 598.75

30 Fork 19.96 / pc 598.75
30 5 inch plate 52 / pc 1,560.00

30 7 inch plate 62 / pc 1,860.00

30 10 inch plate 77 / pc 2,310.00

30 Glasses 20 / pc 600.00
30 Knives 87.44 / pc 2,623.13
Total Promotion and Advertisement ( Php
10,150.63)

Promotion and Advertisement

(Good for 1 year)

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
187 Free Taste 175 6,486.00
5,000 Flyers 1 / page 5,000.00

101
 700 Coupons 1.07/ page 750.00
24 Movie Ticket 210 / person 5,040.00
Loyalty 5,000.00
Incentive Card
1000 Giveaways 4 /pc 4,000.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
26,726.00)

Selling Expense

Quanity Description Unit Cost Total Cost

400 pcs Packaging 10 18.70/pc 7,480.00

inch

200 pcs Packaging 7 10.95/pc 2,190.00

inch

100 pcs Packaging 5 6.00/pc 600.00

inch

80 packs Folded Tissue 158.20 / pack 6,328.00

Total Promotion and Advertisement ( Php
16,598.00)

Salaries and Wages

(Good for 1 year)

1 worker 270,864.00

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 64,800

102
 5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

Monthly Salary Expense (Php 335,664.00)

Total Operating Expense ( Php 972,760.00)

Less:

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 596.94

642.86/14years

= 596.94

1 Chest 12,648.00- 786.99

Freezer 843.20/15years

= 786.99

1 Computer 13,899- 2,223.84

2,779.80/5years

= 2,223.84

103
 20 Chairs 15,000.00 – 933.33
1000.00/15yrs

= 933.33

5 Tables 10,000.00- 622.22

666.67/15yrs

= 622.22

1 Aircon 15,498.00- 2,479.68

3,099.60/5yrs

=2,479.68

1 Electric 898-59.81/15yrs 55.88

Stove
= 55.88

Total Depreciation Expense (per year) (Php

7,698.88)

Inventory Capital

Quantity Ingredients Unit Cost Total Cost

100 pcs Pizza Dough 10 19.65/pc 1965.00

inch

100 pcs Pizza Dough 7 14.70/pc 1470.00

inch

100 pcs Pizza Dough 5 7.35/pc 735.00

inch

8 pieces Chocolate Bar 179.00 / 1432.00

kilo

17 pcs Speculoos 299.00/ 400 5083.00

Cookie Spread grams

4 pieces Cream Cheese 450.00 / 1800.00

1.36 kg

104
 4 pieces Anchor Whip 348.00 / 1 1392.00
Cream liter

1 piece Hazelnut Paste 450.00 / 450.00

500 grams

34 packs Marshmallow 133.00/ 760 4522.00

grams

2 pieces Glucose 81.00 / 900 162.00

grams

1 pack Powdered Sugar 150.00 / 150.00

2272 grams

11 cans Blueberry 150.00 / 21 1650.00

oz

11 cans Cherry 150.00 / 21 1650.00

oz

11 cans Strawberry 150.00 / 21 1650.00

oz

51 packs Oreo 81.00 / 500 4131.00

grams

5 packs Nuts 286.00 / 1430.00

kilo

23 packs Rice Crisp 46.00/ 250 1058.00

grams

5 ½ kilos Banana 89.77 / 930 538.62

grams

6 packs Chocolate Chip 153.00/kilo 918.00

23 pack Chocolate 55.00/ 250 1265.00

Candies grams

Total Php 33,451.62

Asset Capital 116,943.00

Working Capital 980,729.07

105
Inventory Capital 133,806.48

Total Capital 1,231,478.49

Budget per Function:

Marketing Manager Budget

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
187 Free Taste 175 6,486.00
5,000 Flyers 1 / page 5,000.00

700 Coupons 1.07/ page 750.00

24 Movie Ticket 210 / person 5,040.00
Loyalty 5,000.00
Incentive Card
1000 Giveaways 4 /pc 4,000.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
26,726.00)

Financial Manager Budget

Admin Expense

Quantity Office Supplies Unit Cost Total Cost

24 HBW Ballpen 5.00 120.00

12 Record Book 36.50 438.00

32 Tape 3.50 112.00

12 Staple Refill 25.50 306.00

48 Receipt 33.00 1,584.00

12 Carbon Paper 6.23 74.76

12 Elmers Glue 41.50 498.00

106
 72 Working Papers 1.50 (black 4,728.00
pages( black ink)
ink)
5.00 (colored
924 pages ink)
(colored ink)

Total Admin Expense (Php

7,860.76)

Admin (for the Office Supplies)

UST to V.Mapa 96.00

1 (person) x 8 (jeepney fare)

= 8.00 X 12 (months)

V. Mapa to UST 96.00

1 (person) x 8 (jeepney fare)

= 8.00 X 12 (months)

Total 192.00

Business Expense

Description Total Cost

Business Permit 7,000.00

Total Business Expense 7,000.00

Human Resource Budget

Salaries and Wages

1 worker 270,864.00

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

107
 = Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 64,800

5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

Monthly Salary Expense (Php 335,664.00)

Operations Budget

Operating Expense

Rental Fee

Yearly Rental Fee ( Php 360,000.00 )

Utilities

Yearly Cost of Electricity 83,234.52

Yearly Cost of Water 14,930.28

Yearly Cost of Internet and Telephone 11,988.00

Yearly Utility Bills ( Php 110,152.80 )

108
 Transportation Expense
(Good for 1 year)
Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

109
 = 2,368.00 X 12 (months )

= 28,416.00

Total 28,416.00

Admin( transportation expense for 192.00

purchasing the office supplies)

Selling (transportation expense for 28,416.00

purchasing the ingradients)

Total Transportation Expense ( Php 28,608.00)

Store Repair and Maintenance Expense

Description Total Cost

Renovation 70,000.00

Total Store and Maintenance 70,000.00

Expense

Glassware, Flatware, and Smallware

Quanity Description Unit Cost Total Cost

30 Spoon 19.96 / pc 598.75

30 Fork 19.96 / pc 598.75
30 5 inch plate 52 / pc 1,560.00

30 7 inch plate 62 / pc 1,860.00

30 10 inch plate 77 / pc 2,310.00

30 Glasses 20 / pc 600.00
30 Knives 87.44 / pc 2,623.13
Total Promotion and Advertisement ( Php
10,150.63)

110
 Selling Expense

Quanity Description Unit Cost Total Cost

400 pcs Packaging 10 18.70/pc 7,480.00

inch

200 pcs Packaging 7 10.95/pc 2,190.00

inch

100 pcs Packaging 5 6.00/pc 600.00

inch

80 packs Folded Tissue 158.20 / pack 6,328.00

Total Promotion and Advertisement ( Php
16,598.00)

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 596.94

642.86/14years

= 596.94

1 Chest 12,648.00- 786.99

Freezer 843.20/15years

= 786.99

1 Computer 13,899- 2,223.84

2,779.80/5years

= 2,223.84

111
 20 Chairs 15,000.00 – 933.33
1000.00/15yrs

= 933.33

5 Tables 10,000.00- 622.22

666.67/15yrs

= 622.22

1 Aircon 15,498.00- 2,479.68

3,099.60/5yrs

=2,479.68

1 Electric 898-59.81/15yrs 55.88

Stove
= 55.88

Total Depreciation Expense (per year) (Php

7,698.88)

Inventory Capital

Quantity Ingredients Unit Cost Total Cost

100 pcs Pizza Dough 10 19.65/pc 1965.00

inch

100 pcs Pizza Dough 7 14.70/pc 1470.00

inch

100 pcs Pizza Dough 5 7.35/pc 735.00

inch

8 pieces Chocolate Bar 179.00 / 1432.00

kilo

17 pcs Speculoos 299.00/ 400 5083.00

Cookie Spread grams

4 pieces Cream Cheese 450.00 / 1800.00

1.36 kg

112
4 pieces Anchor Whip 348.00 / 1 1392.00
Cream liter

1 piece Hazelnut Paste 450.00 / 450.00

500 grams

34 packs Marshmallow 133.00/ 760 4522.00

grams

2 pieces Glucose 81.00 / 900 162.00

grams

1 pack Powdered Sugar 150.00 / 150.00

2272 grams

11 cans Blueberry 150.00 / 21 1650.00

oz

11 cans Cherry 150.00 / 21 1650.00

oz

11 cans Strawberry 150.00 / 21 1650.00

oz

51 packs Oreo 81.00 / 500 4131.00

grams

5 packs Nuts 286.00 / 1430.00

kilo

23 packs Rice Crisp 46.00/ 250 1058.00

grams

5 ½ kilos Banana 89.77 / 930 538.62

grams

6 packs Chocolate Chip 153.00/kilo 918.00

23 pack Chocolate 55.00/ 250 1265.00

Candies grams

Total Php 33,451.62

113
Supporting Details :

According to UST ADMIN the rental fee on the store is P30,000.00 a month excluding the
electricity bill, they have, their own submeter.

Computation on Electricity and Water Bill

Base on the Computation in Meralco our Monthly 6,936.21. These are all my supporting details:

Oven Aircon

114
 Chest Freezer Computer

Electric Stove Light Bulb

115
Base on the Calculation of Cost per Month of each appliances are:

Oven 1,228.75

Aircon 2,822.10

Chest Freezer 1,465.41

Computer 392.52

Electric Stove 643.63

Light Bulb 383.80

Total Electricity Bill 6,936.21

Water Bill Computation base on Manila Water:

116
Telephone and Internet

117
Our Salary Expense in 1 Worker is based on Dole. “According to them the monthly minimum
wage is 419 for non-agriculture worker.”
http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html

Office Supplies

-Clear Tape, Glue, Staple Refill

118
 - Receipt, Record Book, Ballpen

SL155 40W

P 9,000.00

119
 Electric oven and grill
Thermostat control
60-Minute ringer timer
Oven Accessories: Oven tray, Oven net
100% Porcelain Enamelled Body; White Color
Minute Minder

LA100TC
1HP, Timer

P15,498

1 HP
11.0 EER
120
Manual 6hr timer
Gold Fin
Nano Gold Filter
Dimension (HxWxD): 13.90x18.46x20.67
Cooling Capacity: 8600Kj/hr

 Chest Freezer (FUJIDENZO FC-04ADF)

Located at Abensons “Appliance Center”

Price: Php 12,648.00
Description:frontal temp.control, solid top, 4 cu.ft. Chest type freezer, aluminum inner lining,
keylock (Dual function Chiller/Freezer), frontal drain, grip handle
http://www.abenson.com.ph/shop/products.asp?product=2976&categ=120

 Electric Stove (HANABISHI HES 60)

Located at Abensons “Appliance Center”

Price: 898.00
Description: Single Coil, 1000w, and 6inches

121
http://www.abenson.com.ph/shop/products.asp?product=3351&categ=149

 Computer ( PCG Office Package )

Located at PC Gilmore (Gilmore Station of LRT, Quezon City)

Price: Php 13,899.00
Description: Intel Pentium G2010 Ivy Bridge 2.8Ghz, 2Gb DDR3 1333,
500GB SATA Hard Disk 7200RPM, Intel H61 Chipset Motherboard, DVDRW 22x/24x sata,
ATX Casing w/600W PSU, Windows 8 Slim Keyboard, Windows 8 Optical Mouse,
Amplified 3D Stereo Speaker, 500W AVR, 16" Widescreen Monitor.
http://www.pcgilmore.com.ph/controller.do?action=packages

LifeSpan of All The Equipments

Freezer “10 – 20 years Life Span”

Oven “14 years Life Span”

122
Fan “5-10 years Life Span”

Computer Desktop “3-5years Life Span”

Electric Stove “13-15years Life Span”

123
Transportation Expense

According to “Land Transportation Franchising and Regulatory Board that the minimum fare in
jeepneys are Php 8.00 for 1st 4kilometer.”

124
According to “Light Rail Transit Authority “ that the passengers will be charged Php12.00 for the
first three (3) stations, Php 13.00 for four to six (4-6) stations, Php14.00 for seven to nine (7-9)
stations and Php15.00 for ten (10) stations.

125
Contribution For rent

Contribution for the ingredients and utensils

126
Rent

Ingredients

127
Packaging

128
Supplies

129
130
131
132
133
 YEAR 1
The Dessert Project Company
Income Statement
For the year ended December 31, 2014

University of Santo Tomas

Sales Php 1,685,390.00

COGS (612,869.09 )

Gross Profit Php 1,072,520.91

Operating Expense

Rental Fee

Yearly Rental Fee ( Php 360,000.00 )

Utilities

Yearly Cost of Electricity 83,234.52

Yearly Cost of Water 14,930.28

Yearly Cost of Internet and Telephone 11,988.00

Yearly Utility Bills ( Php 110,152.80 )

Admin Expense
( Good for 1 year )

Quantity Office Supplies Unit Cost Total Cost

24 HBW Ballpen 5.00 120.00

12 Record Book 36.50 438.00

32 Tape 3.50 112.00

12 Staple Refill 25.50 306.00

48 Receipt 33.00 1,584.00

134
 12 Carbon Paper 6.23 74.76

12 Elmers Glue 41.50 498.00

72 Working Papers 1.50 (black 4,728.00

pages( black ink)
ink)
5.00 (colored
924 pages ink)
(colored ink)

Total Admin Expense (Php

7,860.76)

Transportation Expense
( Good for 1 year )

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)
= 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00

135
 UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00 X 12 (months )

= 28,416.00

Total 28,416.00

Admin( transportation expense for 192.00

purchasing the office supplies)

Selling (transportation expense for 28,416.00

purchasing the ingradients)

Total Transportation Expense ( Php 28,608.00)

136
 Store Repair and Maintenance Expense

Description Total Cost

Renovation 70,000.00

Total Store and Maintenance 70,000.00

Expense

Business Expense

Description Total Cost

Business Permit 7,000.00

Total Business Expense 7,000.00

Glassware, Flatware, and Smallware

Quanity Description Unit Cost Total Cost

30 Spoon 19.96 / pc 598.75

30 Fork 19.96 / pc 598.75
30 5 inch plate 52 / pc 1,560.00

30 7 inch plate 62 / pc 1,860.00

30 10 inch plate 77 / pc 2,310.00

30 Glasses 20 / pc 600.00
30 Knives 87.44 / pc 2,623.13
Total Promotion and Advertisement ( Php
10,150.63)

Promotion and Advertisement

(Good for 1 year)

Quanity Description Unit Cost Total Cost

137
 3 Tarpaulin (24 Php 150 / 24 450.00
by 13) by 13
187 Free Taste 175 6,486.00
5,000 Flyers 1 / page 5,000.00

700 Coupons 1.07/ page 750.00

24 Movie Ticket 210 / person 5,040.00
Loyalty 5,000.00
Incentive Card
1000 Giveaways 4 /pc 4,000.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
26,726.00)

Selling Expense

Quanity Description Unit Cost Total Cost

400 pcs Packaging 10 18.70/pc 7,480.00

inch

200 pcs Packaging 7 10.95/pc 2,190.00

inch

100 pcs Packaging 5 6.00/pc 600.00

inch

80 packs Folded Tissue 158.20 / pack 6,328.00

Total Promotion and Advertisement ( Php
16,598.00)

Salaries and Wages

(Good for 1 year)

1 worker 270,864.00

38 rate/hr x 11 hrs = 418 per day

138
 418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 64,800

5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

Monthly Salary Expense (Php 335,664.00)

Total Operating Expense ( Php 972,760.00)

Less:

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 596.94

642.86/14years

= 596.94

1 Chest 12,648.00- 786.99

Freezer 843.20/15years

= 786.99

139
 1 Computer 13,899- 2,223.84
2,779.80/5years

= 2,223.84

20 Chairs 15,000.00 – 933.33

1000.00/15yrs

= 933.33

5 Tables 10,000.00- 622.22

666.67/15yrs

= 622.22

1 Aircon 15,498.00- 2,479.68

3,099.60/5yrs

=2,479.68

1 Electric 898-59.81/15yrs 55.88

Stove
= 55.88

Total Depreciation Expense (per year) (Php

7,698.88)

Profit before Tax Php 91,791.84

Tax (3%) 50,561.70

Net Income per Year PHP 41,230.14

Net Profit Ratio 41,230.14 / 1,685,390.00 = 2.44 %

YEAR 2

The Dessert Project Company

140
 Income Statement
For the year ended December 31, 2015

University of Santo Tomas

Sales Php 1,853,929.00

COGS (612,869.09)

Gross Profit Php 1,241,059.91

Operating Expense

Rental Fee

Yearly Rental Fee ( Php 360,000.00 )

Utilities

Yearly Cost of Electricity 83,234.52

Yearly Cost of Water 14,930.28

Yearly Cost of Internet and Telephone 11,988.00

Yearly Utility Bills ( Php 110,152.80 )

Admin Expense
(Good for 1 year)

Quantity Office Supplies Unit Cost Total Cost

24 HBW Ballpen 5.00 120.00

12 Record Book 36.50 438.00

32 Tape 3.50 112.00

12 Staple Refill 25.50 306.00

141
 48 Receipt 33.00 1,584.00

12 Carbon Paper 6.23 74.76

12 Elmers Glue 41.50 498.00

72 Working Papers 1.50 (black 4,728.00

pages( black ink)
ink)
5.00 (colored
924 pages ink)
(colored ink)

Total Admin Expense (Php

7,860.76)

Transportation Expense
(Good for 1 year)

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)
= 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)

142
 = 64.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00 X 12 (months )

= 28,416.00

Total 28,416.00

Admin( transportation expense for 192.00

purchasing the office supplies)

Selling (transportation expense for 28,416.00

purchasing the ingradients)

Total Transportation Expense ( Php 28,608.00)

Business Expense

143
 Description Total Cost

Business Permit 5,000.00

Total Business Expense 5,000.00

Promotion and Advertisement

(Good for 1 year)

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
187 Free Taste 175 6,486.00
5,000 Flyers 1 / page 5,000.00

700 Coupons 1.07/ page 750.00

24 Movie Ticket 210 / person 5,040.00
Loyalty 5,000.00
Incentive Card
1000 Giveaways 4 /pc 4,000.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
26,726.00)

Selling Expense

Quanity Description Unit Cost Total Cost

400 pcs Packaging 10 18.70/pc 7,480.00

inch

200 pcs Packaging 7 10.95/pc 2,190.00

inch

100 pcs Packaging 5 6.00/pc 600.00

inch

80 packs Folded Tissue 158.20 / pack 6,328.00

Total Promotion and Advertisement ( Php
16,598.00)

144
 Salaries and Wages
(Good for 1 year)

1 worker 270,864.00

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 64,800

5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

Monthly Salary Expense (Php 335,664.00)

Total Operating Expense ( Php 890,609.56)

Less:

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 596.94

145
 642.86/14years

= 596.94

1 Chest 12,648.00- 786.99

Freezer 843.20/15years

= 786.99

1 Computer 13,899- 2,223.84

2,779.80/5years

= 2,223.84

20 Chairs 15,000.00 – 933.33

1000.00/15yrs

= 933.33

5 Tables 10,000.00- 622.22

666.67/15yrs

= 622.22

1 Aircon 15,498.00- 2,479.68

3,099.60/5yrs

=2,479.68

1 Electric 898-59.81/15yrs 55.88

Stove
= 55.88

Total Depreciation Expense (per year) (Php

7,698.88)

Profit before Tax Php 342,751.47

Tax (3%) 55,617.87

Net Income per Year PHP 287,133.60

146
Net Profit Ratio 287,133.60 / 1,853,929.00 = 15.49 %

YEAR 3

The Dessert Project Company

Income Statement
For the year ended December 31, 2016

University of Santo Tomas

Sales Php 2,039,321.90

COGS (612,869.09)

Gross Profit Php 1,426,452.00

Operating Expense

Rental Fee

Yearly Rental Fee ( Php 360,000.00 )

Utilities

Yearly Cost of Electricity 83,234.52

Yearly Cost of Water 14,930.28

Yearly Cost of Internet and Telephone 11,988.00

Yearly Utility Bills ( Php 110,152.80 )

Admin Expense
(Good for 1 year)

Quantity Office Supplies Unit Cost Total Cost

147
 24 HBW Ballpen 5.00 120.00

12 Record Book 36.50 438.00

32 Tape 3.50 112.00

12 Staple Refill 25.50 306.00

48 Receipt 33.00 1,584.00

12 Carbon Paper 6.23 74.76

12 Elmers Glue 41.50 498.00

72 Working Papers 1.50 (black 4,728.00

pages( black ink)
ink)
5.00 (colored
924 pages ink)
(colored ink)

Total Admin Expense (Php

7,860.76)

Transportation Expense
(Good for 1 year)

Admin (for the Office Supplies)

Pureza to UST 8.00

1 (person) x 8 (jeepney fare)
= 8.00
UST to Pureza 8.00
1 (person) x 8 (jeepney fare)
= 8.00
Total 16.00

Selling (for the Ingredients)

UST to Bambang 20.00

1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)

148
 = 52.00
Bambang to UN 12.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
UN to Bambi 20.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to Betty-Go 13.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Betty Go to Chocolate Lovers 25.00
1 (person) x 13 (lrt fare)
= 26.00 x 2 (weeks)
= 52.00
UST to Legarda 25.00
1 (person) x 8 (jeepney fare)
= 16.00 x 2 (weeks)
= 32.00
Legarda to V. Mapa 8.00
1 (person) x 8 (jeepney fare)
= 16.00 x 4 (week)
= 64.00
148.00 ( total amount) X 8 (working 148.00
days ) =

= 1,184.00 X 2 (back and forth)

= 2,368.00 X 12 (months )

= 28,416.00

Total 28,416.00

149
Admin( transportation expense for 192.00
purchasing the office supplies)

Selling (transportation expense for 28,416.00

purchasing the ingradients)

Total Transportation Expense ( Php 28,608.00)

Business Expense

Description Total Cost

Business Permit 5,000.00

Total Business Expense 5,000.00

Promotion and Advertisement

(Good for 1 year)

Quanity Description Unit Cost Total Cost

3 Tarpaulin (24 Php 150 / 24 450.00

by 13) by 13
187 Free Taste 175 6,486.00
5,000 Flyers 1 / page 5,000.00

700 Coupons 1.07/ page 750.00

24 Movie Ticket 210 / person 5,040.00
Loyalty 5,000.00
Incentive Card
1000 Giveaways 4 /pc 4,000.00
Sponsorship ----------
Total Promotion and Advertisement ( Php
26,726.00)

Selling Expense

150
Quanity Description Unit Cost Total Cost

400 pcs Packaging 10 18.70/pc 7,480.00

inch

200 pcs Packaging 7 10.95/pc 2,190.00

inch

100 pcs Packaging 5 6.00/pc 600.00

inch

80 packs Folded Tissue 158.20 / pack 6,328.00

Total Promotion and Advertisement ( Php
16,598.00)

Salaries and Wages

(Good for 1 year)

1 worker 270,864.00

38 rate/hr x 11 hrs = 418 per day

418 x 27 days (working days)

= Php 11286 x 2 (workers)

= Php 22572 x 12

Php 270,864

4 managers (Allowance) 64,800

5 rate/hr x 10 hrs = 50 per day

50 x 27 days (working days)

= Php 1350 x 4 (managers)

= Php 5,400 x 12

Php 64,800

151
 Monthly Salary Expense (Php 335,664.00)

Total Operating Expense (Php 890,609.56)

Less:

Depreciation Expense

Quantity Equipment Unit cost – Depreciation

Salvage Cost
value/Estimated
Useful Life

1 Oven 9,000.00- 596.94

642.86/14years

= 596.94

1 Chest 12,648.00- 786.99

Freezer 843.20/15years

= 786.99

1 Computer 13,899- 2,223.84

2,779.80/5years

= 2,223.84

20 Chairs 15,000.00 – 933.33

1000.00/15yrs

= 933.33

5 Tables 10,000.00- 622.22

666.67/15yrs

= 622.22

152
 1 Aircon 15,498.00- 2,479.68
3,099.60/5yrs

=2,479.68

1 Electric 898-59.81/15yrs 55.88

Stove
= 55.88

Total Depreciation Expense (per year) (Php

7,698.88)

Profit before Tax Php 528,133.56

Tax (3%) 61,179.66

Net Income per Year PHP 466,933.90

Net Profit Ratio 466,933.90 / 2,039,321.90 = 22.89 %

Vertical Financial Statement Analysis:

Income Statement

December 31, 2015 & 2016

153
 By
collabo
rating

Balance Sheet

December 31, 2014 & 2015

Amount Amount Amount Change in

Percentage
(2015) (2014) (2015)
Asset:
(Current)

Cash 270,638.26 19,948.63 250,689.63 12.57%

Inventories 612,869.09 612,869.09 0 0%

Non-
Current:
116,943.00 116,943.00 0 0%
Property,
Plant and
Equipment

154
 Total
Assets 1,000,450.35 749,760.72 250,689.63 33.44%

Owners
Equity:
650,000.00 650,000.00 0
Owners 0%
Capital
Retained
Earnings 350,450.35 29,698.65 320,751.70
10.80%
Total
Owners 1,000,450.35 749,760.72 250,689.63
Equity 33.44%

155