Results of New Customer

Financial Survey:
Increase in new customer market
sales revenue
Results of Business
Sustainability Analysis:
Decreased sales revenue from
lost regular advertisers                  
        (10% × P10,000,000)
Additional fines from regulators
from lost new customer data
Increased sales from improved
employee loyalty
Increased sales from regular
customers who value more
diverse technology workforce
= Business Sustainability
Analysis results

Net change in Mike’s Net

Income from combining New
Customer Financial Survey and
Business Sustainability
Analysis (10,000,000 -
6,500,000)

TUSCANY Year 1 Year 2

Annual Operating Income $ 9,000,000.00 $ 9,900,000.00
Cumulative Operating Income    
Stakeholder Impact:
Suppliers  0 0
Employees $ (2,000,000.00) $ (2,000,000.00)
Regulators $ (1,000,000.00) $ (1,000,000.00)
Local Community    
Total Stakeholder Impact on
Operating Income    
Total Commulative Operating
Income    

MATARRANA Year 1 Year 2

Annual Operating Income $ 5,000,000.00 $ 7,500,000.00
Cumulative Operating Income $ 5,000,000.00 $ 12,500,000.00
Stakeholder Impact:
Suppliers $ (5,000,000.00) $ (5,000,000.00)
Employees  0  0
Regulators $ (3,000,000.00) $ (3,000,000.00)
Local Community $ (5,000,000.00) $ (1,500,000.00)
Total Stakeholder Impact on
Operating Income    
Total Commulative Operating
Income    

TUSCANY Year 1 Year 2

Stakeholder Impact:
Suppliers  -  -
Employees $ (2,000,000.00) $ (2,000,000.00)
Regulators $ (1,000,000.00) $ (1,000,000.00)
Local Community  -  -
Total Stakeholder Impact on
Operating Income    

MATARRANA Year 1 Year 2

Stakeholder Impact:
Suppliers $ (5,000,000.00) $ (5,000,000.00)
Employees  0  0
Regulators $ (3,000,000.00) $ (3,000,000.00)
Local Community $ (5,000,000.00) $ (1,500,000.00)
Total Stakeholder Impact on
Operating Income    

TUSCANY Year 1 Year 2

Annual Operating Income
Cumulative Operating Income $ 9,000,000.00 $ 9,900,000.00

MATARRANA Year 1 Year 2

Annual Operating Income
Cumulative Operating Income $ 5,000,000.00 $ 7,500,000.00

    Quality Costs
Prevention Costs:    
Quality training  P10,000  
Quality engineering 90,000 P100,000
Appraisal Costs:    
Materials inspection      P 80,000  
Product acceptance    120,000 P200,000
Internal Failure Costs:    
Scrap P350,000  
Reinspection 250,000 P600,000
External Failure Costs:    
Recalls P500,000  
Product Liability 600,000 P1,100,000
Total Quality Costs   P2,000,000
 Year 3 Year 4 Year 5 Total
$ 10,890,000.00 $ 11,979,000.00 $ 13,176,900.00 $ 54,945,900.00
       

 0 0 0 0
$ (2,000,000.00) $ (2,000,000.00) $ (2,000,000.00) $ (10,000,000.00)
$ (1,000,000.00) $ (1,000,000.00) $ (1,000,000.00) $ (5,000,000.00)
       

      $ (15,000,000.00)

      $ 39,945,900.00

Year 3 Year 4 Year 5 Total

$ 11,250,000.00 $ 16,875,000.00 $ 25,312,500.00 $ 65,937,500.00
$ 23,750,000.00 $ 40,625,000.00 $ 65,937,500.00  

 0 0 0 ₱ (10,000,000.00)
  0  0  0  0
$ (3,000,000.00) $ (3,000,000.00) $ (3,000,000.00) $ (15,000,000.00)
$ (1,500,000.00) $ (1,500,000.00) $ (1,500,000.00) $ (11,000,000.00)

      $ (36,000,000.00)

      $ 29,937,500.00

Year 3 Year 4 Year 5 Total

 -  -  -  -
$ (2,000,000.00) $ (2,000,000.00) $ (2,000,000.00) $ (10,000,000.00)
$ (1,000,000.00) $ (1,000,000.00) $ (1,000,000.00) $ (5,000,000.00)
 -  -  -  -

      $ (15,000,000.00)

Year 3 Year 4 Year 5 Total

 0 0 0 ₱ (10,000,000.00)
 0  0  0  0
$ (3,000,000.00) $ (3,000,000.00) $ (3,000,000.00) $ (15,000,000.00)
$ (1,500,000.00) $ (1,500,000.00) $ (1,500,000.00) $ (11,000,000.00)

      $ (36,000,000.00)

Year 3 Year 4 Year 5 Total

$ 10,890,000.00 $ 11,979,000.00 $ 13,176,900.00 $ 54,945,900.00

Year 3 Year 4 Year 5 Total

$ 11,250,000.00 $ 16,875,000.00 $ 25,312,500.00 $ 65,937,500.00

Percentage of Sales
 
 
 1.00%
 
 
2.00%
 
 
6.00%
 
 
11.00%
20.00%
₱ 10,000,000.00

₱ (10,000,000.00)

₱ (1,500,000.00)

₱ 2,000,000.00

₱ 3,000,000.00
₱ 6,500,000.00

₱ 3,500,000.00
   Quality Costs Percentage of Sales
Prevention Costs:      
Quality training  ₱ 10,000    
 Quality engineering ₱ 90,000 ₱ 100,000 1.00%
Appraisal Costs:
Materials inspection       
    Product acceptance  ₱ 80,000    
  ₱ 120,000 ₱ 200,000 2.00%
Internal Failure Costs:      
Scrap ₱ 350,000    
Reinspection ₱ 250,000 ₱ 600,000 6.00%
External Failure Costs:      
Recalls ₱ 500,000    
Product Liability ₱ 600,000 ₱ 1,100,000 11.00%
Total Quality Costs   ₱ 2,000,000 20.00%