Feasibility Study On Rabbit Farming (Hardbound)

A FEASIBILITY STUDY ON RABBIT FARMING
RONEL Q. DAVA
REGINE C. CARIMAN
RIZAL S. MENDOZA IV
YVONNE GRASHELLE C. BUSAL
A FEASIBILITY STUDY PRESENTED TO THE FACULTY OF THE COLLEGE OF

BUSINESS AND ACCOUNTANCY, SOUTHERN CHRISTIAN COLLEGE,
MIDSAYAP, COTABATO IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE
BACHELOR OF SCIENCE IN ACCOUNTANCY
JUNE 2022
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ACKNOWLEDGMENTS
The proponents express their heartfelt gratitude and appreciation to Almighty God
for giving wisdom, guidance, and protection during the conduct of this feasibility study.
Their deepest gratitude is also expressed to the following people who contributed and
shared their knowledge in making the study possible:
Their parents, for the unconditional love and understanding, for sharing their
wisdom and funding their expenses as well as inspiring and motivating them that they
can do things beyond their limit;
To their adviser, Mrs. Lora May A. Calawigan, MBA,for patiently helping and
sparing her time guiding the proponents in making the study successful;
To miss Sheryl Mae Q. Dichosa, CPA, the chairman, Dr. Nelly D. Genosas and
Mrs. Mae Lourne S. Daniel, MBA, the panelists, for their valuable insights and
knowledge shared to the study from the proposal up to the completion of the final paper.
And lastly, gratitude is extended to the groupmates of this feasibility study, for the
understanding, cooperation, patience, trust, faith, and unforgettable memories and
lessons shared.Without all of these, this paper is not possible.
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TABLE OF CONTENTS
Page
Title i
Approval Sheet ii
Acknowledgements iii
Table of Contents iv
List of Tables vi
List of Figures vii
List of Appendices viii
Abstract x
PROJECT SUMMARY 1
Name of the Business 1
Description of the Business 1
Location of the Business 2
Mode of Financing 2
Highlights of Major Assumptions 2
Industry Analysis 3
Competitor Analysis 4
Customer Analysis 5
Summary of Findings and Conclusion 6
PROBLEM AND ITS SETTING 8
Introduction 8
Statement of the Problem 10
Scope and Limitation 10
Significance of the study 10
Definition of terms 11
RESEARCH METHODS 13
Research Design 13
Research Locale 13
Research Respondents 14
Sampling Technique 14
Research Instrument 14
Data Gathering Procedure 15
Statistical Tool 15
Forecasting Tools 16
Industry Analysis Tool 16
Competitor Analysis Tool 16
Customer Analysis Tool 17
Feasibility Analysis 17
MARKET STUDY 19
Product Description 19
Demand Situation 20
Supply Situation 21
Demand and Supply Analysis 21
Market Share 23
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Price Study 24
Marketing Program 24
Conclusion 25
TECHNICAL STUDY 27
Product Description 27
Farming Process 28
Production Capacity 32
Production Schedule 33
Biological Assets 34
Farm and Layout 34
Equipment, and Tools 35
Furniture and Fixture 36
Supplies 36
Utilities and Overhead Requirements 37
Waste Disposal System 38
Conclusion 38
MANAGEMENT STUDY 39
Type of Business Organization 39
Organizational Structure 39
Staffing Requirements 40
Compensation and Benefits 41
Project Schedule 41
Conclusion 42
FINANCIAL STUDY 43
Total Project Cost 43
Projected Statement of Financial Position 44
Projected Statement of Comprehensive Income 45
Projected Statement of Changes in Owner’s Equity 46
Projected Statement of Cash Flow 46
Financial Ratio Analysis 48
Conclusion 51
SOCIO-ECONOMIC STUDY 53
Government Contribution 53
Other Socio-economic Contribution 53
Conclusion 54
Literature Cited 55
Curriculum Vitae 99
LIST OF TABLES
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Table Title Page
1 Projected demand 20
2 Projected supply 21
3 Projected Demand and Supply Gap for Local New Zealand 22
4 Projected Demand and Supply Gap for Upgraded Californian 22
5 Market Share for Local New Zealand 23
6 Market Share for Upgraded Californian 24
7 Production Capacity 32
8 Production schedule 33
9 Biological Asset 34
10 Equipment & Tools 35
11 Furniture and fixtures. 36
12 Supplies 37
13 Compensation and benefits 41
14 Project cost 43
15 Gross Profit Rate 49
16 Net profit margin 49
17 Return on investment 50
18 Fixed asset turnover and total asset turnover 50
19 Payback period 51
LIST OF FIGURES
vi
Figure Title Page
1 Farming Process 28
2 Breeding Process 28
3 Raising of Rabbits 30
4 Disposing of Kits 31
5 Organization Structure 40
6 Project Schedule 42
LIST OF APPENDICES
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Appendix Title Page
A Location of the Business 57
B Computation of Sample Size 58
C Questionnaire for the Demand 59
D Questionnaire for the Supply 60
E Letter to the Mayor 61
F Letter to the Barangay Captain 62
G Informed Consent Form for the Demand and Supply 63
H Letter to the respondents 68
I Types of Rabbits 69
J Computation for the Actual Demand 70
K Computation for the Projected Demand 76
L Computation for Willingness 78
M Computation for the Historical Supply 79
N Computation for the Projected Supply 80
O Computation for Market Share 82
P Computation of Pricing 83
Q Production Schedule 84
R Supporting Computation for biological assets and supplies 85
S Building Structures and Layout 88
T Machineries, Equipment and Tools 89
U Computation for Compensation and Benefits 91
V Notes to Financial Statement 92
W Supporting Computation for Financial Statement Analysis 97
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ABSTRACT
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BUSAL, YVONNE GRASHELLE C., CARIMAN, REGINE C., DAVA, RONEL Q.,
AND MENDOZA, RIZAL S. 2022. A FEASIBILITY STUDY ON RABBIT
FARMING. Undergraduate Feasibility Study, College of Business and Accountancy,
Southern Christian College, Midsayap, Cotabato.
Adviser: Lora May A. Calawigan, MBA
The study aimed to determine the feasibility of rabbit farming in terms of market,
tehnical, management, financial, and socio – economic aspects. Cluster sampling design
was used to gather the data for demand, and systematic sampling is for supply in order to
evaluate the feasibility of the product.
The study was conducted in the municipality of Midsayap. The respondents for
the demand were the household of Poblacion 1 to 8. The respondents for the supply was
the farmer of rabbit located in Villarica, Midsayap, North Cotabato. The study used
questionnaire as the main source of gathering the data.To forecast the demand and
supply,the proponents used arithmetic straight line method.
The business was feasible in terms of its market as it showed high and incresing
demand of rabbits in the market. In terms of its technical aspect,all the necessary and
needed requirements for the product were all available. The most appropriate form of
business organization is sole proprietorship as the business requires minimal capital, and
the operation is not complex.The financial aspect of the study was feasible due to the
positive and favorable results of the financial statements of the business.Lastly,the socio-
economic aspect feasible because of the contribution of the business in the society
through the generation employment and shows the payment of required fees and taxes.
PROJECT SUMMARY
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The project is a feasibility study on rabbit farming. This section summarizes the
overall content of the study. This includes the name of the business, description of the
business, location of the business, mode of financing, highlights of major assumptions,
industry analysis, competitor analysis, customer analysis, and conclusions.
Name of the Business
The name of the business is Cuniho. Cuni comes from the word cuniculture which
means farming of rabbits and the whole name Cuniho is a sound like of the Tagalog term
of rabbit which is Kuneho. Cuniho was chosen as the business name so that customers
may quickly recognize that the business is involved in cuniculture in selling rabbits. The
whole name of the business Cuniho implies that the business is into cuniculture.
Description of the Business
The business belongs to the rabbit industry. Cuniho is a solely owned business
where the owner manages day to day transactions of the business. It is a farming business
that offers rabbits to the target market. Rabbit may be grown as a pet and can also be
consumed as a substitute for meat. The business primary concern is to offer a healthy
rabbit and to supply the demand of rabbit to its target market, that is, the households in
the municipality of Midsayap within Poblacion 1 to 8 and Villarica.
Location of the Business
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The location of the business will be in Barangay Sadaan, Midsayap, North
Cotabato, where the building of the business will be constructed. The basis of choosing
the location is the environment which is quiet; it will be a perfect fit for rabbit farming
since the rabbits prefer a quiet and peaceful place. The position of the business is also
accessible to its target customers from Poblacion area and Villarica and near to the source
of its biological asset which is in Midsayap North Cotabato (Appendix A).
Mode of Financing
The mode of financing of the business is through the personal savings of
the owner worth Php 1,350,000. The money will be used to purchase land where the
building will be constructed and to cover the cost of equipment and tools, furniture and
fixtures, utilities, biological assets and supplies. The remaining amount will be used as
initial working capital.
Highlights of Major Assumptions
The study aimed to determine the feasibility of producing rabbits. The following
were the assumptions:
1. The kits will be produced by three months after breeding or four to five batches
within a year.
2. The equipment, tools, furniture and fixtures will be depreciated over one to ten
years and the building will be depreciated over twenty years. The business will be
using a straight-line method in computing the depreciation expense.
3. The two-month old kits will be the ending inventory every year.
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4. The owner will have withdrawals for personal use amounting to ₱50,000 for the
first year and will increase in the second year to 200% or ₱100,000. The
withdrawals of ₱100,000 will remain constant in the succeeding years of
operation.
5. The forecasted inflation rate for 2020 is 3% (Tradingeconomics, 2019). This
inflation rate will be used as a basis for the following years for the cost of
supplies. Also the selling price increases yearly using the inflation rate of 3%.
6. The unproductive does and bucks will be disposed of after 3 years. At the price of
400 per kg.
7. The survival rate of rabbits is 66.67% (Fitz, 2021). .
8. All the kits will be disposed of after 3 months.
Industry Analysis
One of the challenges to any business is competition in the market. Porter’s five
forces model is used in analysing rabbit farming. The strength of the business is the
bargaining power of the supplier. When suppliers have bargaining power, they might put
pressure on a business by raising prices because there are only a few suppliers of rabbit
since it is not known to the public. The bargaining power of the supplier is high since it
has only a few rabbit farmers in Midsayap area. It offers convenience to the customer
since the farm is within Midsayap and it is accessible and near the national highway.
The threats of new entrants and threats of substitutes will be used for the
weakness of the business. Threats of new entrants are high since it has a minimal
investment cost that is why new competitors can easily enter the industry. And threats of
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substitutes are high for rabbit meat since other meats such as pig and chicken can be
substituted.
Competitor Analysis
To analyse the competitors, the business used the strength, weaknesses,
opportunities and threats (SWOT) method. Through this, were evaluated the competitors
learns to deal with the strengths, capitalizes on weaknesses, takes advantage of any
opportunities, and handles any threats.
Strengths
The business can produce a large number of kits, giving customers more options
when purchasing rabbits. The breeding farm has a large capacity. The chosen location of
the farm also contributes to its advantage, given the accessibility of the location.
Weaknesses
The business has no alternative source of income. Another weakness also is the
price of rabbit meats, which is higher than the usual meats being offered in the market.
There is no existing client, since the business is a new entrant and new player. For most
households, they view rabbits only as pets and not to be consumed.
Opportunities
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Social awareness is considered an opportunity. For most customers who view
rabbits as pets, these can be considered an opportunity in reinforcing its perceptive
branding. Rabbits are a great source of lean meat, and most consumers are not aware of
this yet. Another opportunity is to expand the business and develop a retail store for meat
offerings. Also, it can make partnerships with the Department of Agriculture.
Threats
The availability of substitutes such as pork and chicken, may pose threats to the
business. The possibility of new competitors to enter the market and establish a rabbit
meat shop may also be an advantage. Changing weather conditions may also affect the
well-being of the rabbits, which may affect the productivity.
Customer Analysis
Customers have an essential role in a business. In order to analyze the buying
characteristics of the customers and their perception towards Cuniho the 5W Model was
used to analyze Cuniho’s potential customer’s buying characteristics and perception of
the product. The target customers of the business are the households from Midsayap
Poblacion 1 to 8 and Villarica. Based on the gathered data, 87% of the customers already
have a rabbit. Customers buy rabbit for meat, but they usually buy it for pet. Some buyers
purchase it individually, but the majority purchase them in pairs. Also, the total average
sold for Local New Zealand is 1,020 and 618 for Upgraded Californian. Moreover, 43%
of the customers are willing to buy rabbit.
Market Study Conclusion
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The study is feasible under the market aspect. The demand of the product is
greater than its supply. The study shows that there is an increasing demand for the
product which leaves a gap against its existing suppliers which is favorable to the
business. The adopted product pricing is reasonable for the business and its marketing
program is manageable.
Technical Study Conclusion
Cuniho is easy to manage since the rabbits are easy to feed. They are very gentle
and quiet animals. The farming process involves the breeding process, raising of kits,
and the disposal. The business will purchase the biological asset every three years. The
kits will be produced every three months after breeding. The biological assets in farming
are available at Sultan Kudarat. Tools and equipment, furniture and fixtures and supplies
are available in Midsayap. The production schedule is also attainable. With this, the
business is feasible under the technical aspect.
Management Study Conclusion
The owner has direct responsibility of its caretaker. The salary and benefits are
provided as compensation to the caretaker, in order to establish a good relationship. It
includes the project schedule of the business is attainable and. Based on the results; the it
is concluded that the management aspect of the business is feasible.
Financial Study Conclusion
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The projected financial position presents that the business can manage its
investment well. The business has no long-term obligations; therefore, the business is
liquid and stable. The ratio analysis results, net profit margin, fixed asset and total asset
turnover ratios, and return on investment indicate that the business is performing well.
The return on the investment is significantly high, indicating efficient and effective asset
management. Also, the net profit margin rate is not constant, which means that the
business is performing well. Moreover, the payback period will be recovered in 3.36
years, which is favorable because it can recover the capital quickly. Based on the
financial study, the business is feasible.
Socio-Economic Study Conclusion
The business appears to be feasible under the socio-economic aspect. It appears to be able
to contribute to the tax revenue of the local government, provide employment to the
people in the community, and establish a healthy competition in the market. The
business is also able to offer substitute meat for the consumers who are health conscious.
Cuniho can also offer rabbits as pets, which adds to the healthy well-being of individuals
who are pet lovers and who view pets as companions.
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THE PROBLEM AND ITS SETTINGS
Introduction
Rabbit farming is an undertaking in the agricultural industry which is the biggest
sector of the economy. Raising rabbits is one of the simplest things it can do on a
homestead. Meat rabbit can be a low-cost substitute for lean meat. Rabbit meat is
considered a healthy, delicacy meat and known for its high protein content and low fat,
thus it’s very healthy. Raising rabbits is simple and economical; it will give one of the
highest yields of meat while having some of the lowest start-up costs. Rabbits are
famously efficient breeders. Also, it provides high-quality white meat while minimizing
costs. The business will manage the rabbits systematically, in hutches or rabbit houses,
feeding them grass and water till they reach the target weight. It will be sold to the target
market as a pet or for consumption purposes.
The global rabbit meat market revenue amounted to $6.4 billion in 2017, picking
up by 12% against the previous year. The amount of rabbit or hare meat consumed
worldwide totaled 1.5 million tons in 2017, picking up by 2.9% against the previous year.
The total consumption volume increased at an average annual rate of +2.8% from 2007 to
2017. The country with the largest volume of rabbit meat consumption was China,
comprising approximately 62% of the total consumption. Moreover, rabbit meat
consumption in China exceeded the figures recorded by the world’s second-largest
consumer, the Democratic People’s Republic of Korea sixfold. The third position in this
ranking was occupied by Egypt with a 3.8% share (NewfoodMagazine, 2019).

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In the Philippines, rabbits have mostly been nurtured as pets and not as meat
sources. This may be one of the main reasons why many Filipinos still do not welcome
the idea of consuming rabbits. The Department of Agriculture (DA) also sees rabbit meat
as a potential replacement for pork as they are also a good source of protein. It can start
raising rabbits by collecting a single pair of mature breeder rabbits. It is relatively easy to
take care, because rabbits demand less treatment.
In natural circumstances, rabbits will give birth at the age of 6 months twice a
year. Each time they will give birth to 6-8 kits. After a full year, it has an army of rabbits,
90% of rabbit meat in the Philippines is still imported, with much of its consumption
centered around Chinese and Korean restaurants, although rabbit features in other
cuisines, such as French, as well. Some rabbit farms in the Philippines also offer training
and seminars on rabbit farming, something that other raisers can also do to earn more
profit. Through workshops and seminars, anyone can learn the proper housing and
equipment for the rabbits and even how to prepare and cook their meat in different ways
(Luttforovich, 2019).
The proponents are interested in conducting a study on rabbit farming because of
the many benefits it gives such as health benefits and economic benefits. In Midsayap,
rabbit farming is more convenient and easy to practice since it requires minimal capital
and a not too large area. Also, a large population in Midsayap is considered since it
determined the number of a consumer of rabbit meat. In terms of lifestyle, Midsayap has
a large number of meat consumers than other places considering the geographic
temperature of the location. The customers could also be benefited because rabbit meat is
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healthier than pork and chicken. It has higher protein content and lowers fat and bad
cholesterol.
Statement of the Problem
This study aimed to determine the feasibility and viability of rabbit farming
specifically; it seeks to evaluate the study's market, technical, management, and financial
aspects.
Scope and Limitations
The study determined the feasibility of rabbit farming. Specifically, it focused on
the raising of rabbits. The necessary data for demand was gathered from the households
of Poblacion 1 to 8 and Villarica, Midsayap. For the supply, it was gathered from the
rabbit farmers from Poblacion 1 to 8 and Villarica, Midsayap. The time frame of this
study was from August 2021 to May 2022.
Significance of the Study
Rabbit farming is vital in the economy as well as in the different sectors.
Specifically, this study will benefit the following:
The potential investors. This study may give them insights on rabbit farming in
Midsayap as a good income-generating business. The results may also help them in
considering Midsayap as a business-friendly urban place where they could start their
planned business.
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Local government units. This study can give information on projects that could
be viable and beneficial to the community. It also provides information about rabbit
farming as a good source of income.
Academe. This study can benefit the school for a new/additional reference of this
type of study. It also helps to introduce rabbit farming as the alternative source of meat.
The school can also provide this information to the local governments, if they need new
sources of livelihood for the local community.
The future researchers. This study may give information and insight on rabbit
farming and its feasibility within Midsayap and neighboring areas. This may also
enlighten new ideas concerning farming that may help in boosting the country’s
economy.
Definition of Terms
The following terms are defined operationally and theoretically. These terms are
listed and emphasized to give clarity to the reader.
Rabbits. Small mammals with fluffy, short tails, whiskers and distinctive long
ears. A small herbivore that is typically kept as pets or food as alternative meat for pork
and chicken.
Rabbit farming. It is the agricultural practice of breeding and raising domestic
rabbits as livestock for their meat, fur, or wool. A husbandry activity of raising and
breeding rabbits, usually for pets and meats for family consumption or commercial
industry.
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Customer. A person or company that receives consumes or buys a product or
service. This refers to individuals who will purchase and consume the rabbit.
Culling. The process of removing or segregating animals from a breeding stock
based on specific traits. The business will use unproductive breeders for the culling
process.
Doe. Matured Female rabbit, this is a female rabbit that is often used for breeding
activity
Bucks. An unaltered or intact male rabbit. This is a male rabbit that is often used
in rabbit breeding to conceive a female to create kits.

RESEARCH METHODS
This section discussed the different aspects useful for data collection and analysis
on rabbit farming. It includes the research design, research locale, research respondents,
sampling technique, research instrument, data gathering procedures, statistical tool,
forecasting tools, and feasibility analysis.
Research Design
The study used a descriptive survey method. Descriptive survey is a technique in
which data gathered by using question for the respondents and questioning individuals on
a topic and describing their responses. The proponents collected reliable data from the
respondents and obtained information from a sample of individuals who took part in the
study.
Research Locale
This study was within the Poblacion 1 to 8 and Villarica of Midsayap, North
Cotabato, as the target market of the study. This is the chosen area because it is where
supply and demand are located considering that Poblacions 1 to 8 and Villarica is one of
the places with existing rabbit farmers and high populations and consumers of meat
products.
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Research Respondents
The households of Poblacion 1 to 8 and Villarica of Midsayap were the
respondents in determining the demand as they are customers of rabbit farming, and the
rabbit farmers were the respondents for the supply. The respondents of both demand and
supply are qualified respondents to provide the needed data since they provide relevant
and reliable information about the demand and supply of rabbits.
Sampling Technique
This study used cluster sampling in gathering the data for demand. It is a type of
probability sampling technique where the proponents divide the population into multiple
groups (clusters) for research, select randomly from groups in order to preserve the
validity of the result, and collect data and data analysis (QuestionPro, 2020). The
households from each Poblacion of Midsayap were grouped into one cluster. The
business used Slovin formula to calculate the sample size (Appendix B). For supply, the
proponents used convenience sampling in gathering the data for supply. It is a method of
non-probability sampling where the sample is based solely on convenience.
Research Instrument
The study used a researcher-made questionnaire as the main source of gathering
the data. There were two sets of instruments used, one is for the demand (Appendix C),
that contained relevant questions about the willingness of the consumers to buy, and the
volume of rabbits they bought for the past five years. The other set was for the
respondents for supply (Appendix D), which contained questions about the number of
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rabbits disposed of in the last five years, and the selling price. This helped the proponents
project the demand and supply of rabbits.
Data Gathering Procedure
The proponents made a letter of approval to the mayor of Midsayap Cotabato,
asking permission to conduct a survey in Poblacion 1 to 8 of the municipality (Appendix
E). Another letter was sent to the barangay captains (Appendix F) of each Poblacion.
Second, the proponents presented the letter which was signed by the mayor and the
captain of the barangay, to the respondents along with the informed consent form
(Appendix G) for them to know the purpose of the survey and the information needed
from them (Appendix H). After the mayor's consent, the proponents asked permission
first from the respondents if they had time to answer the questionnaire. The questionnaire
was distributed via walk-in to the respondents after securing approval. After retrieving all
the data, the proponents have tabulated and tally the data for analysis.
Statistical Tools
The frequency distribution was used for the statistical tool. Frequencies are
developed to evaluate respondents’ demographic and behavioral characteristics. The
frequency distribution is a graphical or tabular representation of the number of
observations within the given interval. The method was used in business to visualize and
illustrate data collected in a sample.

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Forecasting Tools
The arithmetic straight-line method was used to forecast the supply and demand.
It is appropriate to the study since the historical data was increasing. The arithmetic
straight-line method is highly recommended since it forecasts future demand and supply
growth using historical data and patterns. It was also assumed that the annual growth
would remain constant in the future, even though the rate of rising in percentage will
continue to decrease.
Industry Analysis Tool
The Porter's Five Forces was used on analyzing rabbit farming which is the
bargaining power of suppliers, threats of new entrants, bargaining power of buyers,
threats of substitutes, and rivalry among existing competitors since it was able to
determine the attractiveness of the business in terms of its profitability (Zhukova,2021).
The business used only three of the five forces which were the bargaining power of the
supplier for the strength. When suppliers have bargaining power, they can apply pressure
on a business by charging higher prices. If there are fewer suppliers like rabbit farming
then they may wield significant power over the industry. The threats of new entrants and
threats of substitutes were used for the weakness of the business.
Competitor Analysis Tool
To analyze the competitors, the tool used was Strengths, Weaknesses,
Opportunities, and Threats (SWOT) method. SWOT analysis is a tool that can help to
analyze what the business does best now, and to devise a successful strategy for the
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future it can also uncover areas of the business that are holding back. It examines both
internal and external factors. Through SWOT it evaluates the competitors, learns to deal
with their strengths, capitalizes on their weaknesses, takes advantage of any opportunities
they present, and handles any threats they pose (Mindtools, 2022).
Customer Analysis Tool
The 5W model was used to analyze the customers. Using this method, the
business will determine who the target customers are, what the customer buying strategy
in the market, what breed they usually buy, for what purpose they buy the rabbit, and
when they buy the rabbit. This method is very important to collect relevant information.
Market Analysis
This section discussed the product description, demand situation, supply situation,
demand and supply analysis, market shares price study, and marketing program. This
helped the proponents to evaluate the marketability of the business to the target market.
Technical Analysis
This section presented the description of the product. It includes the whole
farming process, production capacity, production schedule, biological assets, farm and
layout, equipment and tools, furniture and fixtures, supplies, utilities and overhead, and
waste disposal management.

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Management Analysis
Management aims on identifying the appropriate type of business organization
that will effectively accomplish the objectives of the business. It includes organizational
structure, staffing requirements, compensation and benefits, and project schedule for the
length of time required before the business starts.
Financial Analysis
This section presents the financial matters of the business and determines whether
the business will be financially feasible. It includes the total project cost, projected
statement of financial position, projected statement of comprehensive income, projected
statement of changes in equity, projected statement of cash flow, and financial ratio
analysis. Payback period will also be included for measuring the length of time required
to recover the costs invested.
Ethical Consideration
The ethical issue must be well-considered during the conduct of the survey. Ethical
considerations during the survey must be observed including informed consent and
confidentiality. All of the data collected from the survey questionnaire accumulated and
the researcher kept it and it was not disclosed to other people without any authorization
from the researcher.

MARKET STUDY
This section focuses on the market aspect of the business which is producing
rabbits in the market. This includes product description, demand and supply situation,
demand and supply analysis, market share, price study, and marketing program of the
business, and conclusions.
Product Description
The product belongs to the rabbit industry. Rabbit is used for many different
markets, as meat source and as pet. Rabbit as meat is a good substitute for pork and
chicken because rabbit meat is healthier than pork and chicken. But, the most common
substitution for rabbit meat is chicken meat, which has a fairly elastic demand, meaning
that the quantity demanded is significantly connected to the price (Foster 1999). In this
business it focused on two breeds, the local New Zealand and upgraded Californian
(Appendix I). This is classified as normal goods, a good that experiences an increase in
its demand due to a rise in consumers' income. This type of business is a monopolistic
type of competition. A monopoly is a condition of the market in which there are many
sellers of any commodity but the commodity of every seller is different from
commodities of other sellers in any way (Banton, 2021). Thus, the prices are generally
high for goods and services because the business has total control of the market.
If the production costs are low, the product will have a reasonable price.
Similarly, if the production cost is high, it will be reflected in the product price, but with
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a minimal mark-up. The price elasticity of demand measures the change in the quantity
purchased of a product in relation to a change in its price. The price is elastic since the
quotient of the change in the quantity of demand and change in price is greater than one
(James, 2022).
Demand Situation
The target market of the business is the household who buys rabbits. There are
100 respondents chosen through cluster sampling. The historical demands for rabbits for
the year 2017 to 2021 were provided (Appendix J).
Table 1 shows the five years projected demand for rabbit computed using
arithmetic straight line method. The average increase for Local New Zealand breeds is
255 and 155 for Upgraded Californian breeds (Appendix K) plus willingness of 284 for
Local New Zealand and 167 for Upgraded Californian (Appendix L). The continuous
increase in the projection was due to the increase in the historical demand of rabbits from
2017 to 2021. According to market research firm IndexBox, the demand for rabbit
consumption is increasing at 12% over the period (New Food Magazine, 2019).
Table 1. Projected demand.
Year Local New Zealand Upgraded Californian

2023 2,180 1,300
2024 2,720 1,620
2025 3,260 1,940
2026 3,795 2,265
2027 4,330 2,590
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Supply Situation
The competitors of the business are the rabbit farmers. This farmer is considered
as the respondent of supply. Only three years of historical data were available for the
supply (Appendix M).
Table 2 shows that the five-year projected supply for rabbit computed using
arithmetic straight line method .An average increase of 165 heads for the Local New
Zealand breed and 95 heads for the Upgraded Californian breed (Appendix N). The
projected supply was increasing due to the increase in actual supply for the year 2017-
2021. This indicates that the result of increasing supply has a good implication to provide
the projected demand.
Table 2. Projected supply.
Year Local New Zealand Upgraded Californian

2023 710 410
2024 875 505
2025 1040 600
2026 1205 695
2027 1370 790
Demand and Supply Analysis
This section presents whether there is an excess demand for the product in the
market. Excess demand implies that the existing supplier is not able to satisfy the demand
of customers. Evaluating the demand and supply determines whether the business can
penetrate the market.
Table 3 shows the unsatisfied demand every year for five consecutive years. It
shows that there was an insufficient supply of local New Zealand in the market since
22
there are limited suppliers. This gap indicates an opportunity for the business to enter into
the market.
Table 3. Projected demand and supply gap for local New Zealand.
Local New Zealand

Year Pojected Demand Projected Supply Excess Demand
2023 2,180 710 1,470
2024 2,720 875 1,845
2025 3,260 1,040 2,220
2026 3,795 1,205 2,590
2027 4,330 1,370 2,960
Table 4 shows the projected annual demand and supply, and the excess demand of
Upgraded Californian breed for the next five periods. The excess demand per annum was
increasing because of the increasing demand in the local market, which the supply was
not able to cater. This implies that there is a high probability for the business to penetrate
the market.
Table 4. Projected demand and supply gap for Upgraded Californian.
Upgraded Californian
Year Pojected Demand Projected Supply Excess Demand
2023 1,300 410 890
2024 1,620 505 1,115
2025 1,940 600 1,340
2026 2,265 695 1,570
2027 2,590 790 1,800
Market Share
23
Market share refers to the share of the business in the total demand. It is the ratio
of what the business can sell in relation to the total demand (Aduana, 2015). The market
share was computed for each breed of rabbits by dividing the annual production by the
annual demand.
Table 5 shows the business's market share for the five-year period. The business
offered an average of 29% in local New Zealand. There were years that had minimal
decrease in market share due to the constant annual production in the years 2024 and
2025 while the projected demand is constantly increasing in the said years. The market
share was still favorable and reasonable for the business to penetrate the market because
there were unsatisfied demands to cater to.
Table 5. Market share for local New Zealand.
Local New Zealand

Year Production Capacity Projected Demand Market Share
2023 640 2180 29%
2024 800 2720 29%
2025 800 3260 25%
2026 1120 3795 32%
2027 1200 4330 28%
Total Average 29%
Table 6 shows that the average market share for upgraded Californians is 24%. It
represents the share ratio of upgraded Californian for the five years, which is favorable
and reasonable for the business to enter the market since there is unsatisfied demand to
cater to (Appendix O). According to Lorenzo (2022), a good penetration rate for
business products is in the range of 10% - 40%.
Table 6. Market share for Upgraded Californian.

24
Year Production Capacity Projected Demand Market Share
2023 320 1300 25%
2024 400 1620 25%
2025 400 1940 21%
2026 560 2265 26%
2027 600 2590 23%
Total Average 24%
Price Study
The company used a competitive pricing strategy. It is a pricing approach that
bases a price on the prices of competitors for the same or similar products
(Accountingverse, 2018). The selling price of Local New Zealand for 3 months old is Php
500 each and Php 2000 each for a three-month-old Upgraded Californian which will give
customers the impression that the product is of good quality because the company is
competing fairly. The selling price will increase yearly basing from the inflation rate of
3% (Appendix P).
Marketing Program
In the marketing program, this will focus on goals and activities to achieve
marketing objectives. In this business it will focus on positioning strategy and
promotional strategy.
Positioning Strategy
A positioning strategy is a strategic marketing plan that helps the business determine
where they stand in the market and how it should be positioned to attract more customers
(Hopper, 2020).These will be the ways to attract the customer through leverage social
25
media. Social media offers many attractive ways to connect with customers. The business
will post photos or videos about the products or communicate through comments or
messages. Social media provides an environment where customers can learn about the
business or its industry. Engaging with customers builds brand loyalty and elevates
customer service business. Also, the business will adopt positioning strategy based on the
benefits of meat as a pork substitute and the benefits of rabbit as a pet.
Promotional Strategy
The promotional strategies to be used by Cuniho are through the online posting
Facebook page, word of mouth, placement of tarpaulin, and through calling of business
establishments like hotels, restaurants, food stalls and food catering. The business will
use signage or a logo to stand as a symbol that customers will recognize the business. The
Advertising budget for this business is Php 15,000 annually.
Conclusion
The market study indicates a gap between demand and supply since the supply is
insufficient to meet demand and there are few rabbit suppliers in the Midsayap area. The
unsatisfied demand indicates that local New Zealand and upgraded Californian rabbits
are favourable for the business since they have the opportunity to enter the market. The
business has a reasonable percentage of market shares to satisfy an average of 29% for
local New Zealand, and 24% for upgraded Californian of the unsatisfied demand. The
pricing strategy will help set the price to maximize profitability. The marketing program
26
is attainable by the business to promote the product effectively. The study concludes that
the business appears feasible in terms of the market aspect.

TECHNICAL STUDY
This section focuses on the technical aspect of rabbit farming. This includes the
product description, product processes, production capacity, production schedule,
biological assets, farm layout, equipment and tools, furniture and fixtures, supplies,
utilities and overhead requirements, waste disposal system, and conclusions.
Product Description
The business focuses on raising rabbits that will be disposed of at the age of 3
months. Rabbits are small, furry mammals with long ears, short fluffy tails, and strong,
large hind legs. This is a ground dweller that lives in a quick-breeding source of low-fat,
high-protein meat. There are several types of rabbits but the materials are Local New
Zealand and Upgraded Californian .The normal size of this product both male and female
rabbits are similar in size and can grow up to 40 centimeters in length and weigh between
1.2 – 2 kilograms (Andre, 2019). The average useful lifespan of a rabbit is eight years to
twelve years. The dogs are pregnant for 4-5 weeks and can have up to 1 to 14 kits with an
average of 6 kits and 66.67% in every production (Fitz, 2021). Rabbits prefer
temperatures of about 60–65 degrees Fahrenheit, but they are comfortable in lower
temperatures as long as they are appropriately housed. An outdoor rabbit hutch must be
waterproof and should have a solid roof with a slight overhang to keep rain and snow out
of the hutch.(Racine, 2019)

28
Farming Process
The farming process is the characteristic activities that take place on a farm. It
involves the management of biological processes, such as livestock, for the purpose of
reproducing a biological means of production. The farming process includes 60 days of
the breeding process, another 60 days of raising process, and disposing of kits at the age
of three months.
Breeding Disposing of
Raising of kits
process kits
Figu
re 1. Farming process.
The Breeding Process.
Breeding Process includes breeding, palpation, kindling, weaning, and rest. At the
age of three months, the kits will be discarded.

29
Breeding
Rest Palpation
Weaning Kindling
Figure 2. Breeding process.
Breeding. The first step was completed when the doe and buck are six months
old. When it comes to breeding, the best times are early in the morning and late in the
afternoon. Because the doe is territorial, the doe needs to be brought into the buck's cage.
The buck will intercourse with the doe at least three times. If the buck fails to breed, the
doe should be switched to another buck (Namakkal, 2015).
Palpation. This is a technique used to determine if a rabbit is pregnant after
successful mating. To palpate the does 11-14 days after breeding, the thumb is placed on
one side of the abdomen and the fingers on the other side (Ellyn, 2022). The finger is
gently kneaded and the thumb is put closer together to the doe’s body. They will be
gently fed around until the little lumps that can pass through the fingers as one gently
probes and searches. The size will be the size of a pea.

30
Kindling. This is the process of giving birth to a new baby rabbit; it usually
occurs late at night or early in the morning and takes 7 to 30 minutes to complete. If the
number of kits is less than eight, all of them may be able to suckle because the doe has
eight teats. The does should not be disturbed during this period because when they are
upset, they kill or ignore their kits (Namakkal, 2015).
Weaning. After 10 days, the kits' eyes open, they can survive without their
mother's milk, and they emerge from the nest after 20 days. After 3 weeks, grasses should
be fed; at this age, the newborn rabbit can eat and chew. After two months, the doe is
separated or is freed from the cage (Namakkal, 2015).
Rest. The doe must rest for at least 10 days after kindling and weaning her litters;
This allows the doe to keep her in good condition for the following breeding cycle
(Namakkal, 2015)
Raising of Kits.
In this process, raising rabbits start with picking up a rabbit, caring for it, and
feeding it are all part of the business' raising process.

31
Picking up a
rabbit
Raising of
rabbits
Caring Feeding
Process Management
Figure 3. Raising of rabbits.
Picking up a rabbit. Picking up a rabbit includes placing one hand under the
rabbit’s chest. The other hand is placed under the rabbit’s bottom. The rabbit is lifted and
held close to the body.
Caring process. Caring for rabbits during summer includes trimming of the
rabbit’s long hair, placing of a stone in a rabbit cage. Caring of rabbits during winter
season includes cleaning and drying the rabbit nest, placing rabbits in the sun once a day.
Feeding management. The rabbit eats a small amount of good quality pellets
daily. The measurement of feed for doe, buck, and kit are 40gm, 30gm, and 25gm
32
respectively. The rabbits are every morning and late in the afternoon. For hydrating, the
nipple drinkers can be used. This passes through a water pump to have constant access to
fresh clean water every day. The business will plant hays beside the business building,
intended to provide the good quality, and fresh hays at all times. Business give rabbits an
unlimited supply of hay (Russel, 2022)
Disposing of Kits.
Rabbits can indeed "multiple like rabbits" in the right circumstances. To verify
that the kits are healthy and can live, the business will discard them every three months.
Selecting a Payment
breed transaction
Figure 4. Disposing of kits.
Selecting a breed. Each livestock breed has different traits for which they are
recognized. The customers will select from a breed of rabbit kits that they want to
purchase.
Payment transaction. This is the portion where the buyer will pay according to
the rabbit kits that they will purchase.
Production Capacity
The production capacity of the rabbit is based on the number of does used for
breeding. The breeding area of the business has 100 meter squared and the space of cages
in each doe is 1.4 meter squared, and for both buck and kits are .40 meter squared. The
33
normal capacity of doe is 1 to 14 kits with an average of 6 kits every production and
66.67% survival rate (Fitz, 2021).
Table 7 shows the annual production capacity of the rabbits according to the
number of does. There are 960 litters can produce in first year of operation due to the
breeding cycle of doe with the survival rate of a kit which is 66.67%. There is an increase
in the number of breeders after 3 years due to the increase of excess demand. Based on
the result, when the number of breeders increases, the production capacity also increases.
Table 7. Production capacity.
Local New Zealand

Year No. of does Total kits Survival rate Annual Production
2023 40 960 66.67% 640
2024 40 1200 66.67% 800
2025 40 1200 66.67% 800
2026 60 1680 66.67% 1120
2027 60 1800 66.67% 1200
Table 7 Continued
Year No. of does Total kits Survival rate Annual Production
2023 20 480 66.67% 320
2024 20 600 66.67% 400
2025 20 600 66.67% 400
2026 30 840 66.67% 560
2027 30 900 66.67% 600
Production Schedule
34
The production schedule of the business is presented in Table 8. The rabbit farm
will be built within a month and will operate thereafter. The product will be produced by
batch every 3 months after the breeding period.
Table 8. Production schedule.
Annually
Year Local New Zealand Upgraded Californian Annual Production
2023 640 320 960
2024 800 400 1200
2025 800 400 1200
2026 1120 560 1680
2027 1200 600 1800
Table 8 shows the annual production in total of breeders according to its breed for
the next five years. The production of both breeds is proportioned based on the increase
in demand (Appendix Q). The annual production of the product is increasing due to the
increase of excess demand and relatively higher market share as the years go by.
Biological Asset
The business adhered to the Philippine Accounting Standard (PAS41), Biological
asset is any living animal owned by the business which includes biological assets for
breeders that will be used in production.
Table 9 shows the total biological asset of the business will be purchased in sultan
Kudarat that will be used in production. The business will use the cost method for the
measurement of the biological asset and it will be depreciated for 3 years, due to the
limited productivity of breeders after 3 years and it will be subject for culling (Appendix
R).
35
Table 9. Biological asset.
Biological Assets Quantity Unit cost Amount

Local New Zealand
Does 40 800 ₱32000
Bucks 8 800 6400
Upgraded
Californian
4600
Does 20 2300 0
3200
Bucks 4 8000 0
Total ₱116,400
Farm and Layout
The farm will be constructed at Sadaan, Midsayap, North Cotabato. It will
have three divisions such as breeding area, parking area, and lastly the office of the
business. Both the building and the haystack are 300 square meters in size. The building
has an estimated useful life of 20 years and the total estimated cost of the building was
Php 350,000 (Appendix S). The land area is 600 sqm with a total cost of Php 450,000.
The business will purchase land near its building to produce hays, and to supply food for
all rabbits.
Equipment and Tools
Equipment and tools are very important in the entire farming process. These will
be used in raising and maintaining the health and total wellness of the rabbits.
Table 10 shows the equipment and tools for the production and its estimated unit
cost and useful life. The business will purchase different types of cage set, nest box
36
warm, Weight scale and solar lights. The tools required for the business are gloves, an
aluminium pail, boots, and shovel. (Appendix T).
Table 10. Equipment and tools.
Description Useful life Quantity Unit cost Amount

Single cages set 10 12 1000 ₱12000
Grow-out cages
set(10bxs) 10 24 3,000 72000
Breeding cages set(4bxs) 10 15 1600 24000
Plastic matting
Nipple drinker
J feeder
Hose
Nest box warmer/Plastic 3 60 40 2400
Weight scale 5 1 1,200 1200
Solar Ligths 400W 5 5 1,200 6000
Electric fans 5 1 1,200 1200
Gloves 1 6 20 120
Aluminum pail 1 3 50 150
Boots 1 3 150 450
Shovel 1 2 450 900
Total ₱120,420
Furniture and Fixtures
The business purchased tables and chairs used in operation. The total cost was
The one table and four chairs are working tables and are built-in for the farming area,
while the remaining table is an office table and chairs for the manager’s office.
Table 11 shows the furniture and fixtures of the business. The table and chairs
will be used to provide relaxing ambiance and comfort for the office and farm occupants.
Table 11. Furniture and fixtures.
Particulars Quantity Unit cost Amount

Offices tables 1 2,500 ₱2500
37
Farm Tables 1 1,500 1500

Office Chairs 2 600 1200
Farm Chairs 4 350 1400
Total ₱6,600
Supplies
The supplies of the business are regularly used in daily operation; it includes
feeds, medications, and other minimal cost supplies that will be used in farming.
The table 12 shows the total cost supplies that part of production will be
capitalized, and will be used in the daily operations of the business, all supplies will be
purchased at the marketplace near the business. The business will procure supplies yearly
to keep the business running smoothly and it contributes to business operations
efficiently.
Table 12. Supplies.
Description Quantity Unit cost Amount

Farm supllies:
Feeds (kg)
1296 32 ₱41400
Bucks 194.4 32 6200
Kits 2160 32 69100
Medications: ml
Antibacterial 18576 5 92880
Food supplements 18576 3 55700
Cartoons 720 5 3600
Tie box 3 25 75
Office Supplies:
Scissors 5 20 100
38
Record book 2 100 200

Receipts 5 15 75
Ballpen 1 150 150
Total ₱269,400
Utilities and Overhead Requirements
The utilities and overhead requirements will be the electricity and water. The
water that will be used in business are classified into two, the water for rabbits that will
be purchased in Misaco with a monthly cost of Php 700 and Php 8,400 annually, this cost
is capitalized as part of production cost and Water District (MMWD) will be used in the
daily operation of the business at monthly cost of Php 300 and Php 3,600 annually, this
cost will be expensed immediately. The source of electricity is Cotabato Electric
Cooperative (COTELCO), which charges Php 810 per month.
Waste Disposal System
The business will be having a waste disposal system. All rabbit manure will be
collected and placed in an aluminium pail. The plastic pot of rabbit manure will be put in
soil as an ideal fertilizer for garden and crops. This disposal system was adopted by the
business to contribute for the cleanliness and wellness of the environment and to become
a socially responsible entity that supports the proper waste disposal of the society.
Conclusion
39
The business evaluated the technical aspect of the study, the farming process
takes 120 days and has three sub processes that care takers can easily perform. The
production capacity of the business and its production schedule is achievable because the
equipment, tools and supplies are available within locality. The waste management will
be collected
MANAGEMENT STUDY
This section deals in determining the most appropriate business to be employed in
carrying out the objectives effectively and efficiently of business. This includes the types
of business organization, organizational structure, staffing requirements, compensation
and benefits of employees, project schedule, and conclusion.
Type of Business Organization
The proposed rabbit farming will adopt a sole proprietorship type of business.
Sole proprietorship is appropriate to use because only one person is the owner and, at the
same time. The owner/manager is responsible for running the business and is accountable
for the business investments. It is easy to form or set up because of relatively minimal
capital. The business produces healthy kits within reasonable and convenient conditions
to its customers.
Organizational Structure
The organizational structure shows the structural design of rabbit farming
production. The business adopts a flat form organization structure (Figure 5). Flat
structure organization refers to a structure with few or no levels of management between
management and staff level employees (Smallbusiness, 2019). Flat structure is the most
appropriate organizational structure for the business because there are only a few people
involved, the owner, and caretakers. Additionally, the operation is not complex.
40
Figure 5 presents the organizational structure of the business. The business has
direct control and supervision of the manager/owner to its care takers.
Manager/Owner
Caretakers
Figure 5. Organizational structure.
Staffing Requirements
The sole owner will be the one to manage and supervise the business’ operations.
The owner will hire two caretakers to be assigned in the production and operation of the
business. The owner considered himself as one of the caretakers with separate and the
same rate of compensation. The caretakers should meet the minimum requirements in
order to be qualified.
Manager
The manager is the owner and the one who can manage the business. He or she is
the direct supervisor, cashier of the business. He also evaluates the caretakers and is
responsible for building customer relations between the business and the customers.
Caretakers
The caretakers will have a qualification of at least high school graduate. He/she
must be hardworking, willing to be trained and supervised, and is efficient. They will be
41
in-charge in the operation of the business like caring, feeding, cleaning of cages, getting
manure and breeding to the selling process.
Compensation and Benefits
The business compensates its employees with minimum wage. The employees are
entitled to have SSS and Phil health benefits paid by the employer. The compensation
and benefits motivate the employees to perform their work well (Appendix U).
Table 13 shows that every employee and the manager will be paid Php 7,875
monthly. The employer provides the employee benefits as an expense to the business.
Table 13. Compensation and benefits.
Designation Monthly Salary SSS PHIC

Caretakers (2) ₱15,750 ₱660 ₱800
Manager 7,875
Annual ₱423,696 ₱7,920 ₱9,600
Project Schedule
This section includes the activities to be performed for the accomplishment and
implementation of the business. It will serve as a guideline of activities within the time
frame of the proposed business.
Figure 6 shows the activities that should be carried out before starting the
business which includes the construction of the building that it takes two months to
complete, one month purchasing of the tools and equipment, and hiring of employees,
and purchasing of biological assets. After these activities, the proposed business can start
its operations.
42
Activities Oct-22 Nov-22 Dec-22 Jan-23

Construction of the Building
Purchase of the tools and equipment
Hiring of employees
Purchase of bio-assets
Start operation
Figure 6. Project schedule.
Conclusion
The business is a sole proprietorship with a small operation. It is only a flat type
of organizational structure. The supervision of a caretaker is easy, and the flow of
operation can be easily monitored. The staffing requirements guided hiring employees to
perform their tasks effectively. The caretaker's compensation is favorable since the
business follows a mandatory minimum wage. The project schedule is beneficial to the
owner to manage the period to accomplish the required activities before the
commencement of the business. , the business concluded that the management aspect of
the business is feasible

FINANCIAL STUDY
This study shows the total projected cost, projected statement of financial
position, projected comprehensive income statement, projected statement of changes in
owner’s equity, and projected cash flow statement. The financial ratio analysis, payback
period, and conclusion will also be presented.
Total Project Cost
The total initial investment of the business is Php 1,365,000. This is comprised of
the fixed assets such as land, building, equipment and tools, office furniture and fixtures,
utilities overhead, biological assets, supplies, advertising, salaries and wages, employee
benefits and initial working capital of the business.
Table 14 shows the cost of land, building, equipment and tools, furniture and
fixtures, bio-assets and supplies is at their acquisition cost. The initial working capital is
established for paying petty expenses that will be incurred at the start of the operation of
the business (Appendix V).
Table 14. Project cost.
Particulars Total Cost
Land ₱450,000
Building 350,000
Equipment, and Tools 120,420
Furniture and Fixtures 6,600
Utilities Overhead 21,720
Biological asset 87,300
Supplies 269,400
Advertising 15,000
Salaries and Wages 37,915
Employee Benefits 1,460
Initial working Capital 5,185
44
Total ₱1,365,000
Projected Statement of Financial Position
The projected statement of financial position shows a five-year projection of
assets, liabilities, and equity of the entity. The assets are resources owned and controlled
by the entity embedded with economic benefits. The liabilities are obligations of the
entity as a result of the past transaction and the equity is comprised of the capital account,
the residual amount in the assets after deducting its liabilities (Nandwa, 2020).
CUNIHO
Projected Statement of Financial Position
As of the Year ended December 31, 2023 – 2027
( Amount in thousand)
Assets Note 2023 2024 2025 2026 2027
Current:
₱ ₱78 ₱ ₱1,7 ₱2,5
Cash 483 9 1,121 83 52
18
Inventory 1 188 188 8 282 282
Non-current:
4 45
Land-net 50 450 450 450 0
Building-net 2 333 315 298 280 263
Biological assets-net 3 58 29 0 84 42
1 1
Equipment and tools-net 4 07 93 79 122 01
Furniture and fixtures-
net 5 6 5 5 4 3
9 85
Total non-current assets 53 892 831 940 9
₱1, ₱1,86 ₱ ₱3,0 ₱3,6
Total Assets 624 9 2,140 04 93
Liability and Owner's
Equity
Liability
Accrued Utilities 6 .7 .7 .7 .7 .7
13
Income tax payables
7 9 16 20 149 7
Owner's Equity
Owner's Capital 1,615 1,853 2,119 2,855 3,555
Total Liability and ₱1, ₱1,86 ₱ ₱3,0 ₱3,6
Owner's Equity 624 9 2,140 04 93
45
The projected statement of the financial condition of the business for five years,
shows increasing total assets and the total liability and equity of the entity for a five-year
projection. These are the result of a continuous increase in cash due to the increasing
sales revenue. The two months old kits is the inventory of the business that are not
available for sale because they are not in the proper age, which is three months. The
decrease in non-current assets is due to depreciation.
Projected Statement of Comprehensive Income
This section shows the projected result of operations which are formulated by the
revenue taken from the cost of the product deducted from the sales of rabbit farming and
its selling and administrative expenses. The projected statement of comprehensive
income is the financial statement that shows the financial performance in a given period
this statement covers the five year period from 2023-2027.
CUNIHO
Projected Statement of Comprehensive Income
For the year ended December 31, 2023 – 2027
Note 2023 2024 2025 2026 2027
₱96 ₱1,23 ₱1,27 ₱1,84 ₱2,04
Sales 8 0 6 2 2 0
Less: Cost of Sales 9 597 841 845 951 1,052
Gross profit 363 395 427 891 988
Other income 10 144
Less: Expenses
Selling &
Administrative
Expenses 11 55 41 41 50 51
Net Operating Income 93
before tax 308 354 386 985 7
Income Tax Expense 9 16 20 149 137
Net operating Income ₱8
after tax ₱299 ₱337 ₱366 ₱836 00
46
Projected Statement of Changes in Owner’s Equity
The statement of changes in owner’s equity reflects all the elements that caused
changes in the entity’s equity in a five-year projection. The statement shows the
beginning owner’s capital and changes in the owner’s equity because of the yearly net
income and withdrawals.
REMY'S CUNIHO
Projected Statement of Changes in Equity
2023 2024 2025 2026 2027
Owners capital, beginning ₱1,365 ₱1,615 ₱1,853 ₱2,119 ₱2,855
Add: Net Income 300 339 366 836, 800
Total 1,665 1,953 2,219 2,955 3,655
Less: Withdrawals (50) (100) (100) (100) (100)
Owners capital, ending ₱1,615 ₱1,853 ₱2,119 ₱2,855 ₱3,555
The projected statement shows that the owner’s capital is increasing every year.
This is due to the net income that continuously increases every year. The withdrawal is
based on the assumption that the owner of the business withdraws its cash for personal
use. The withdrawal increases to 200% in the succeeding years, as the income increases.
Projected Statement of Cash Flow
This section shows the projected cash inflows and outflows of the business for the
five years of operations. It shows each major class of gross cash receipts and gross cash
payment for the year. The activities considered were operating, investing, and financing.
47
CUNIHO
Projected Statement of Changes in Cash flow
2023 2024 2025 2026 2027

7 1,12 1,78
Beginning Cash Balance 483 89 1 3
Cash Flow from Operating
Activities:
Sales 960 1,236 1,272 1,842 2,040
Cash receipt from selling of 1
unproductive doe 44
Purchase of Supplies (269) (327) (331) (520) (527)
( (
Payment of SSS Contribution (8) 8) (8) 8) (8)
Payment of Phil health
Contribution (10) (10) (10) (10) (10)
Payment of Advertising (
expenses 15)
( ( ( (
Payment of Utilities 21) (22) 22) 22) 22)
( ( (
Payment of taxes (9) 16) 20) 149)
( (4 (4 (4
Payment of Salaries and Wages (455) 455) 55) 55) 55)
( (₱
TOTAL CASH PAYMENT (₱778) ₱830) 841) (₱1,035) (₱1,171)
Net cash from Operating ₱
activities ₱182 889 ₱1,221 ₱2,072 ₱2,652
Cash Flow from Investing
Activities:
Purchase of Tools (2) (3)

Purchase of land (450)
Purchase of Biological asset (87) (126)
Purchase of Equipment (119) (61)
Construction of Building (350)
Purchase of Furniture and
Fixture (7)
Net cash used in Investing (₱1,015
activities ) (₱190)
Cash Flow from Financing
Activities:
Investment of the owner 1,365
Withdrawals (50) (100) (100) (100) (100)
Net cash from Financing
activities 1,315 100 100 100 100
₱
Ending Cash Balance ₱483 789 ₱1,121 ₱1,783 ₱2,552
48
The projected cash flow statement presents the cash inflows and outflows of the
Cuniho business. The business used the direct method in projecting the net cash flows
from the operating activities. Under the direct method, it uses actual cash inflow and out
flow from the business operations (Touvila, 2020). The first section arises from cash
flows from sales and payments for purchases related to the cost of sales and operating
expenses. The second section relates to capital expenditures like purchases of equipment,
building, and other long-term assets. And the third section is the activities refer to the
flow of cash between the business and its owners and includes the initial investment and
withdrawals every year for personal use of the owner.
Financial Ratio Analysis
Financial ratio analysis is the evaluation of the financial data to make a
comparative judgement regarding company performance. Included in this section are
gross profit margin, net profit margin, return on investment, fixed asset and total asset
turnover, and payback period (Appendix W).
Gross Profit Margin
Gross profit margin serves as the financial metric used in determining the gross
profitability of a business operation. It shows how well sales cover the direct cost related
to the production of goods. This ratio is computed by dividing the gross profit by its net
sales (Bloomenthal, 2021).
Table 15 shows the gross profit rate for the next five years. It appears to be a
increasing rate for the next five years since the management production capacity is
49
constant and because of the effect of inflation on the cost of supplies and the sales also
increasing. This is still favorable to the business since the average gross profit rate for the
farming industry is 40% and also the business generates more profits from its sales
(Hoppe, 2015).
Table 15. Gross profit rate.
2023 2024 2025 2026 2027

38% 32% 34% 48% 48%
Net Profit Margin
The net profit margin is one of the most important indicators of a business’s
financial health. It measures the percentage of its net income relative to its sales and how
much the net income for every peso will be. This ratio is computed by dividing the net
profit by its sales.
The table 16 indicates a relatively high net profit margin ratio that makes the
project attractive. This favourable result means that the business is performing well in
selling its product.
Table 16. Net profit margin.
2023 2024 2025 2026 2027
31% 27% 29% 45% 39%
Return on Investment (ROI)

50
The return on investment is a performance measure used to evaluate the efficiency
of an investment or compare the efficiency of several different investments. It measures
the ability of the business to generate income on every peso invested. This is computed
by dividing the net income by the average total assets.
Table 17 shows the trend of ROI for the five years. It appears that the ROI of the
business is radical because the increase in the asset is not as much as the increase in the
net income.This may indicate that the business has a high return on investment
percentage which is favourable to the company.
Table 17. Return on investment.
2020 2021 2022 2023 2024

29% 18% 17% 31% 23%
Fixed Asset and Total Asset Turnover
Fixed assets and total asset turnover reflect how effectively the company is using
its assets. These ratios show how well the business is managing its fixed assets and a total
asset to generate sales. Fixed asset turnover is computed by dividing net sales by the
average fixed assets net of accumulated depreciation. Total asset turnover is computed
by dividing the net sales by the average total assets of the business.
Table 18 shows that the business has a low total asset turnover but high fixed
asset turnover. This means that the business is efficient in utilizing its assets since the
favorable ratio is greater than 1, which means that the business can generate enough
revenue for itself (Vaidya, 2019).

51
Table 18. Fixed asset turnover and total asset turnover.
2023 2024 2025 2026 2027

Fixed Assets Turnover 201% 134% 148% 208% 227%
Total Asset Turnover 118% 66% 60% 69% 59%
Payback Period
The payback period measures the length of time required to recover the amount of
initial investment. It is the time interval between the time of initial outlays and the full
recovery of the investment.
Table 19 shows the computation of payback period for the next five years. It is
estimated that it will take 3 years to fully recover the cost of an investment. This indicates
that the investment in this kind of business is desirable because of shorter payback. The
usual payback for this kind of business is five years (Emous, 2017).
Table 19. Payback period.
Year Cash Inflow Investment Payback Period

2023 299,555 1,365,000 1
2024 399,502 1,065,445 1
2025 365,532 699,913 1
2026 836,246 300,411 0.36
2027
Conclusion
52
The financial aspect of the business appears to be feasible. The business's
financial data shows positive results since it has not incurred long-term obligations.
Therefore, the business is liquid and stable. The Cuniho generates more profits from its
sales for the succeeding year, and the increase in income is consistent. It is observed that
the gross profit margin, net profit margin, return on investment is significantly high
which indicates efficient and effective asset management. Also, fixed asset turnover, and
total asset turnover of the business are considered good since it is more than the favorable
rate. Moreover, it appears that the business can recover its investment after 3.95 years of
operation. The business is more attractive when payback period is shorter.

SOCIO ECONOMIC STUDY
This section centered on the social and economic effect of the project to the
community. This study determines the possible contribution of the business in growth
and benefits of the society. This section includes the social benefit , government benefits
and conclusion.
Government Contribution
This business is expected to give a contribution to the government in the form of
income tax. The tax payment from the business would help the localities and also the
economy in its future project especially for people that will benefit.
Other Socio-economic Contributions
The business is expected to create employment to the society. Employing
available workforce within the area will provide them an additional source of income.
Additionally, it would provide a healthy lifestyle to the customers. The business will pay
them just and fair based on the current pay rate. The direct labor will be paid according to
the minimum wage rate.
The business is also able to offer substitute meat for the consumers who are health
conscious. Cuniho can also offer rabbits as pets, which adds to the healthy well-being of
individuals who are pet lovers and who view pets as companions.
54
Conclusions
The proponents evaluated all benefits that the business can contribute to the
community. The business can give economic development by having more economic
activity and additional income in the community and employment to the available
working force of the community. The business is also able to offer substitute meat for the
consumers who are health conscious. Cuniho can also offer rabbits as pets, which adds to
the healthy well-being of individuals who are pet lovers and who view pets as
companions.
55
LITERATURE CITED
Accouting verse.(2018). “Accounting Approach “ Retrieved on March 04, 2022, from
https://www.accountingverse.com/managerialaccounting/pricingdecisions/-
competition-based-pricing.html.
Aduana,N.L.(2015). Writing Project Feasibility Study. Quezon City, Philippines: C &E

Publishing, Inc.
Andre,O.P.(2019). “Farming method” Retrieved on April, 15, 2022, from

https://farmingmet
hod.com/rabbit-farming
Fitz,L.O.(2021). “ Rabbit pros” Retrieved on April, 05, 2022, from

https://rabbitpros.com/how
-many-rabbits-in-a-litter-domestic-rabbits/
Foster,M.N.(1999). “Rabbit farming an evaluation of the R & D” Retrieved on May 18,

2022 from http://www.agrifutures.com.au/wp-content/uploads/publications/03-
144.pdf
James,L.G.(2022). “Principles of Economics” Retrieved on May 20, 2022 from

https://opentextbc.ca/principlesofeconomics/chapter/5-1-price-elasticity-of-
demand-and-price-elasticity-of-supply/
Hopper,A.S.(2020). “Positioning: 5 Strategies to Stand Out From Your Competitors”
Retrieved on May 20, 2022, from https://www.business2community.com/strategy/
positioning-5-strategies-to-stand-out-from-your-competitors-02333056
Langemeier,F.H. (2020). “Operating profit margin benchmark”Retrieved on May

22,2022,from1https://ag.purdue.edu/commercialag/home/resource/2020/10/operat
ing-profit-margin-benchmarks
Lorenzo,J.O. (2022). “Marketing Penetration Strategy” Retrieved on May 20,2022

from https://www.lightercapital.com/blog/what-is-market-penetration-strategy-
definitionexamples
Mindtools.(2022). “SWOT Analysis Understanding Your Business, Informing Your

Strategy” Retrieved on May 11,2022, from https://www.mindtools.com/pages
article/newTMC_05.htm
Namakal.(2015). “ Animal Husbandry” Retrieved on April, 19, 2022, from
https://agritech.tnau.ac.in/animal_husbandry/animhus_breeding
New Food Magazine.(2019). “Global rabbit meat market has increased and will continue
to grow” Retrieved on May 20,2022, from https://www.newfoodmagazine.com/
news/85045/global-rabbit-meat-market-grow
56
Plastina,J.G.(2021). “Financial performace measure for IOWA famers” Retrieved on may

22,2022,fromhttps://www.extension.iastate.edu/
QuestionPro.(2020). “ Cluster Sampling: Definition, Method and Examples” Retrieved

On May 23,2022, from https://www.questionpro.com/blog/cluster-sampling/
Russel,K.L.(2022). “ Rabbit welfare” Retrieved on April 19, 2022, from

https://www.rspca.org.uk/adviceandwelfare/pets/rabbits/diet.
Zhukova,M.N. (2021). “Understanding Porter’s Five Forces Model” Retrieved on May

11,2022, from https://www.semrush.com/blog/understanding-porters-five-forces-
model
57
Appendix A. Location of the Business
National highway Cotabato to Davao
Gasoline Pesante
Station Hospital
Sadaan highway
Sadaan
Barangay Kambal Pandesal
Hall Bakeshop
Poblacion 6 highway
= Location
= Landmark
58
Appendix B. Computation of sample size using Slovin’s Formula
Slovin’s Formula
It is computed as n = N / (1+Ne2).
whereas:
n = no. of samples
N = total population
e = error margin / margin of error
Number of Household in year 2022:

Barangay No. of Household
Poblacion 1 1,652
Poblacion 2 1,725
Poblacion 3 1,489
Poblacion 4 703
Poblacion 5 1,231
Poblacion 6 2,168
Poblacion 7 1,702
Poblacion 8 2,940
Villarica 2,398
Total number of Household 16,008
n= 16,008
1+16,008(.10) ^2
N= 100 Respondents
59
Appendix C. Questionnaire for the Demand
Southern Christian College

United Church of Christ in the Philippines
Quezon Avenue, Poblacion 5, Midsayap, Cotabato
College of Business and Accountancy
Direction: Please write your answer on the space provided.
1. Do you buy rabbit? Yes ____ No ____

If No, Proceed to number 5.
2. If yes, for what purposes?

_______Meat source
_______Pet Purposes
3. What breed of rabbits did you buy?

_____Local New Zealand
_____PS100 cross
_____Mixlion head
_____Upgraded Californian
Others please specify:_______
4. On an average, how many rabbits did you purchase for the following years?
2017____
2018____
2019____
2020____
2021____
5. If no, are you willing to buy rabbit?

Yes___
No___
6. Indicate number of rabbits you will buy_____

60
Appendix D. Questionnaire for the Supply

Direction: Please write your answer on the space provided.
1. How many rabbits did you dispose in the last 5 years ?
Breed 2017 2018 2019 2020 2021
Local New Zealand
PS100
Mixlion head
2. What is the selling price of rabbit per breed?(Average)________

61
Appendix E. Letter to the Mayor

Midsayap, Cotabato
COLLEGE OF BUSINESS AND ACCOUNTANCY
cba@southernchristiancollege.edu.ph
February 16, 2022
Hon. Romeo D. Araña

Mayor, Municipality of Midsayap
Midsayap, North Cotabato
Dear Mayor Araña:
Greetings of Peace and Solidarity!
The fourth-year students of Bachelor of Science in Accountancy of Southern Christian

College would like to ask permission from your good office to conduct a survey in the
municipality of Midsayap to accomplish the feasibility study that we are conducting
entitled, “A Feasibility Study on Rabbit Farming.”
We look forward to hearing your positive response and cooperation for the success of our
ongoing study.
Thank you, and keep safe always!
Respectfully yours,
RIZAL S. MENDOZA, IV
Group Representative
Noted by:
LORA MAY A. CALAWIGAN, MBA

Adviser
62
Letter F. Letter to the Barangay Captain

Midsayap, Cotabato
cba@southernchristiancollege.edu.ph
Febuary 16, 2022
Dear Barangay Captain:
Greetings of peace!
The fourth-year students of Bachelor of Science in Accountancy (BSA) of Southern
Christian College (SCC) would like to ask permission from your office to conduct a
survey in your barangay to accomplish the feasibility study that we are currently
conducting entitled “A Feasibility Study on Rabbit Farming”.
We are hoping for your positive response and cooperation for the success of our ongoing
study.
Respectfully yours,
RIZAL S. MENDOZA, IV
Noted by:
LORA MAY A. CALAWIGAN, MBA

Adviser
63
Appendix G. Informed Consent Form for the Demand and Supply

Informed Consent Form for the Demand
A. PURPOSE AND BACKGROUND

This survey is about “Rabbit Farming” and it is intended to collect necessary data needed
for the study. The purpose of this survey is to help the proponents project the demand
situation in the local area. Lastly, it will aid to determine if the proposed business is
feasible in Midsayap area.
B. BENEFITS
There will be no direct benefits that you can gain from this survey. The anticipated
benefit of your participation in this survey is to project the feasibility of the study in
Midsayap.
C. YOUR PARTICIPATION
If you wish to cooperate with this study, you will be asked several questions including
your purpose in buying and preference in choosing the breed of rabbits, and data about
how many rabbits you buy from your supplier.
D. RISK
There will be no anticipated risk involved in this said study. Your personal data will be
kept hidden and will not appear in any parts of the study.
E. PRIVACY AND CONFIDENCIALITY

All the data and information collected will be used for academic purposes only. Rest
assured that the collected information will be treated with utmost confidentiality.
64
F. FREEDOM TO REFUSE OR WITHDRAW

Your participation in this survey is purely voluntary, it means you will be given a
freedom to refuse or withdraw your involvement in the survey. Your decisions will be
respected.
G. WHO TO CONTACT
If you have any questions or concern regarding to this research, you may contact the
following numbers: 09559520649 or 09369060613. We will make sure that all your
concerns will be catered to.
65
Appendix G. Informed Consent Form for the Demand and Supply (Continued)

Informed Consent Form for Supply
A. PURPOSE AND BACKGROUND

This survey about “Rabbit Farming in Midsayap” is intended to gather necessary
information related to the study. The purpose of your participation in this survey is to
help the proponents in projecting the demand of the study. If you have any questions
before you decide to participate, we are willing to answer them honestly.
B. BENEFITS
There will be no direct benefits that you can gain from this survey. The anticipated
benefit of your participation in this survey is to project the feasibility of the study in
Midsayap.
C. YOUR PARTICIPATION
If you wish to cooperate with this study, you will be asked questions on data about how
many rabbits you dispose in the last five (5) years and the selling price of rabbit per
breed.
D. RISK
There will be no anticipated risk involved in this said study. Your personal data will be
kept hidden and will not appear in any parts of the study.
E. PRIVACY AND CONFIDENCIALITY

All the data and information collected will be used for academic purposes only. Rest
assured that the collected information will be treated with utmost confidentiality.
F. FREEDOM TO REFUSE OR WITHDRAW
66
Your participation in this survey is purely voluntary, it means you will be given a
freedom to refuse or withdraw your involvement in the survey. Your decisions will be
respected.
G. WHO TO CONTACT
If you have any questions or concern regarding to this research, you may contact the
following numbers: 09559520649 or 09369060613. We will make sure that all your
concerns will be catered to.
67
Appendix G. Informed Consent Form for the Demand and Supply (Continued)
ACKNOWLEDGEMENT
 My participation in this is voluntary, I have the right to withdraw if ever I do not

want to continue the survey and not forced to give any reasons about my
withdrawal.
 All of my questions/concern have been answered by the proponents honestly.
 All of the information indicated in this informed consent form was fully
explained to me.
 I understand that my participation in this survey includes being asked with
questions through written form of documents.
 By signing this form, none of my legal rights has been violated.
__________________________________ _________
Signature over Printed Name of Participant Date
68
Appendix H. Letter for the Respondents
S o u t h er n C h r i s t i a n C o l l e g e
Midsayap, 9410 Cotabato

Febuary 26, 2022
Dear Ma’am/Sir:
Good day!
We are the 4th year students of Southern Christian College taking up Bachelor of Science
in Accountancy. As part of the course requirement, we are currently conducting a
feasibility study entitled, “Feasibility Study on Rabbit Farming.” In line with this, we have
chosen you to be one of the respondents for the study and we hope that you will take time
to answer the questions honestly.
Rest assured that all information that will be gathered will be treated with confidentially
and will be used for academic purposes only.
Thank you for your support and cooperation.
Sincerely yours, Noted by:
RIZAL S. MENDOZA, IV MRS. LORA MAY A. CALAWIGAN, MBA

Group Representative Adviser
Appendix I. Types of Rabbits

69
(Local New Zealand)
(Upgraded
Californian)
Appendix J. Computation of Actual Demand

70
Total rabbits purchased by the household in Poblacion 1 to 8, and Villarica, area for the
last five years.
Local New Zealand
2017 2018 2019 2020 2021

2 2 2 6 12
2 2 2 6 8
1 2 2 2 8
2 4 2 4 8
4 6 8 2 8
6 6 8 6 8
8 4 8 8 8
2 2 2 2 6
3 4 2 4 8
1 6 2 8 6
2 6 6 2 10
2 4 6 6 8
3 8 4 8 10
1 2 4 6 24
4 2 4 8 12
2 4 6 8 14
3 6 6 8 12
4 1 8 10 10
2 6 8 12 12
6 4 8 10 12
2 3 2 2 12
1 8 2 6 10
1 7 2 8 10
2 8 3 8 12
2 4 3 8 12
1 4 3 12 18
4 2 4 12 14
1 2 4 12 12
2 2 2 6 12
2 4 6 8 12
1 4 8 8 8
1 1 4 4 8
1 2 8 8
2 6 8 8
2 4 6 10
71
2 8 12 12
2 2 4 12
3 2 4 10
6 8 12 12
2 6 12 12
2 4 10 12
4 8 12 14
4 6 8 10
4 4 8 8
8 8 8 8
8 8 8 8
4 8 10 12
2 7 8 12
2 1 4 12
6 2 6 12
2 4 8 10
3 7 8 10
1 2 8 8
4 7 8 10
2 6 8 12
2 2 8 10
4 6 8 10
2 2 8 12
2 8 8
2 4 16
2 4 20
1 6 22
3 12
1 9 14
3 8 18
1 2 16
2 8 10
6 9 10
4 4 20
2 2 20
8 1 24
1 6 10
6 12
8 18
2 18
4 16
6 22
72
2 20
2 22
2 20
1 12
2 20
4 16
1 20
2 19
26
14
TOTAL: 80 214 309 545 1100
Total rabbits purchased by the household in Poblacion 1 to 8, Villarica area for the last
five years.
2017 2018 2019 2020 2021

1 2 4 6 10
73
1 2 4 6 12
1 2 4 6 8
1 2 4 6 8
2 2 2 4 12
2 1 2 4 10
3 4 4 4 8
4 6 6 8 10
2 2 2 4 8
1 2 2 2 8
1 2 2 2 8
1 2 2 2 8
1 2 2 2 6
2 2 2 3 4
2 2 2 4 12
1 2 2 4 14
1 2 2 4 10
1 2 2 5 8
2 2 2 3 9
1 2 2 2 6
1 2 2 3 5
2 2 2 4 12
1 2 2 4 18
2 2 2 4 14
2 2 3 18
1 2 2 6
1 2 6 8
1 4 2 5
1 4 6 4
1 4 2 8
2 2 6 3
2 2 6 6
2 2 6 8
2 2 4 4
2 4 3 8
2 2 2 5
4 4 2 4
2 2 6 7
4 4 6 6
2 8 8
1 4 9
1 4 9
74
1 4 8
1 3 7
2 2 6
1 5 7
1 4 5
1 3 4
1 2 5
1 4 6
1 7 7
2 5 8
2 6 4
2 8 3
2 4 5
1 3 8
1 2 7
1 4 6
1 2 4
2 2 3
2 2 5
2 4 8
2 4 8
4 8
2 4
1 2
2 4
3 6
2 6
1 4
2 4
1 4
3 4
2 4
2 3
2 2
5 8
4 10
3 16
2 12
2 10
13
10
75
11
7
10
12
TOTAL 37 82 138 297 655
Appendix K. Computation for the Projected Demand
Local New Zealand

Using the Arithmetic Straight line to get the projected demand for the next five years:
Step 1: Difference of the most recent and earliest data:
2021 demand 1,100
76
2017 demand 80
Difference 1,020
Step 2: Total number of years minus 1
Number of years in historical demand 5
Less: 1
4
Step 3: Divide step 1 by step 2
Difference in step 1 1,020
Divided by 4
Constant increase in demand 255
Year Previous Years’Demand Constant Increase Willingness Forecasted Demand

2022 1,100 255 284 1,639
2023 1,639 255 284 2,178
2024 2,178 255 284 2,717
2025 2,717 255 284 3,256
2026 3,256 255 284 3,795
2027 3,795 255 284 4,334
Using the Arithmetic Straight line to get the projected demand for the next five years:
2021 demand 655
2017 demand 37
Difference 618
77
Number of years in historical demand 5

Less: 1
4
Difference in step 1 618
Divided by 4
Constant increase in demand 155
Year Previous Years’ Demand Constant Increase Willingness Forecasted Demand

2022 655 155 167 977
2023 977 155 167 1,299
2024 1,299 155 167 1,621
2025 1,621 155 167 1,943
2026 1,943 155 167 2,265
2027 2,265 155 167 2,587
Appendix L :Computation of total number of rabbits that the customers are willing to buy
Total Willingness: 430
Recent Demand for Local new zealand 1,100
Recent Demand for Upgraded Californian 655

78
Total Demand 1,755
Percentage for local new zealand 63% (1,100/1,755*100)
Percentage for upgraded californian 37% (655/1,755*100)
100%
Total Willingness Percentage Willingness

Local New Zealand 430 63% 284
Upgraded Californian 430 37% 166.5
Appendix M. Computation for the Historical Supply
The total average supply of the competitor from Villarica, Midsayap
TOTAL SUPPLY
UPGRADED
YEAR LOCAL NEW ZEALAND CALIFORNIAN
2017 0 0
2018 0 0
2019 50 30
79
2020 240 185

2021 380 220
TOTAL AVERAGE : 670 435
Appendix N. Computation for the Projected Supply
Local New Zealand
Using the Arithmetic Straight line to get the projected supply for the next five years:

2021 supply 380
2019 supply 50
80
Difference 330
Number of years in historical supply 3
Less: 1
2
Divided by 2
Constant increase in supply 165
Year Last Supply Constant Increase Forecasted Supply

2022 380 165 545
2023 545 165 710
2024 710 165 875
2025 875 165 1040
2026 1040 165 1205
2027 1205 165 1370
Using the Arithmetic Straight line to get the projected supply for the next five years:
2021 supply 220
2019 supply 30
Difference 190
81
Number of years in historical supply 3

Less: 1
2
Divided by 2
Constant increase in supply 95
Year Last Supply Constant Increase Forecasted Supply

2022 220 95 315
2023 315 95 410
2024 410 95 505
2025 505 95 600
2026 600 95 695
2027 695 95 790
Appendix O. Computation for Market share
Local New Zealand

Year Annual Production Projected Demand Market Share
2023 640 2180 29%
2024 800 2720 29%
2025 800 3260 25%
2026 1120 3795 32%
2027 1200 4330 28%
82
Total Average 29%
Year Annual Capacity Projected Demand Market Share
2023 320 1300 25%
2024 400 1620 25%
2025 400 1940 21%
2026 560 2265 26%
2027 600 2590 23%
Total Average 24%
*Market Share = Annual Production / Projected Demand
Appendix P. Computation of Pricing
Year 2023 2024 2025 2026 2027

Inflation rate 0.03 0.03 0.03 0.03
LOCAL NEW ZEALAND
Price 500 515 530 550 570
UPGRADED
CALIFORNIAN
Price 2000 2060 2120 2190 2260
83
3%Inflation rate
Solution:
500 * 0.03= 515
500*0.03=530
530*0.03=550
550*0.03=570
2000*0.03=2060
2060*0.03=2120
2120*0.03=2190
2190*0.03=2260
Appendix Q. Production Schedule
Local New
Zealand
Annual
Year No. of does Total kits Survival rate Production

84
2023 40 960 66.67% 640
2024 40 1200 66.67% 800
2025 40 1200 66.67% 800
2026 60 1680 66.67% 1120
2027 60 1800 66.67% 1200
Upgraded
Californian
Annual
Year No. of does Total kits Survival rate Production
2023 20 480 66.67% 320
2024 20 600 66.67% 400
2025 20 600 66.67% 400
2026 30 840 66.67% 560
2027 30 900 66.67% 600
Appendix R. Supporting Computation for biological assets and supplies

85
Year 2023
Bio-assets Quantity Unit cost Amount
Local New Zealand
Does 30 800 24,000
Bucks 6 800 4,800
Does 15 2,300 34,500
Bucks 3 8,000 24,000
Total 87,300
Supplies Quantity Unit cost Amount

Feeds (kg)
Does 1296 32 41500
Bucks 194.4 32 6200
Kits 2160 32 69200
Medications: ml
Other Supplies:
Cartons 720 5 3600
Tie box 3 25 75
Scissors 5 20 100
Receipts 5 15 75
Ballpen 1(box) 150 150
Total 269,700
Year 2024
Feeds (kg)
Does 1296 33 42700
Bucks 194.4 33 6400
Kits 2700 33 89000
Medications: ml
Other Supplies:
Cartons 900 5 4500
Tie box 5 25 125
Scissors 5 20 100
86

Receipts 7 15 105
Total 326,580
Year 2025
Feeds (kg)
Does 1296 34 44000
Bucks 194.4 34 6600
Kits 2700 34 91700
Medications: ml
Other Supplies:
Cartons 900 5 4500
Tie box 5 25 125
Scissors 5 20 100
Receipts 7 15 105
Total 330780
Year 2026
Bio-assets Quantity Unit cost Amount
Local New Zealand
Does 50 800 40000
Bucks 10 800 8000
Does 20 2,300 46000
Bucks 4 8,000 32000
Total 126000

Feeds (kg)
Does 2016 35 70500
Bucks 3024 35 10600
Kits 4200 35 146900
Medications: ml
87
Other Supplies:
Cartons 1300 5 6500
Tie box 7 25 175
Scissors 5 20 100
Receipts 10 15 150
Total 520175
Year 2027
Feeds (kg)
Does 2016 36 72600
Bucks 3024 36 10900
Kits 4200 36 151300
Medications: ml
Other Supplies:
Cartons 1400 5 7000
Tie box 7 25 175
Scissors 5 20 100
Receipts 10 15 150
Total 527475
Appendix S. Building Structures and Layout

88
12m 8m
Hays
Rabbit Barn
10m 10m
15m
5m Office
Parking Lot/Free Space
5m
Cr
5m
3m 11m 6m
Floor Plan
20m
89
Appendix T. Machineries, Equipment and Tools
(Nipple) (J feeder)
(Plastic Mat) (Aluminum Pail)
Appendix T. Machineries, Tools and Equipment (Continuation)

90
(Shovel) (Rabbit Weighing scale)
(Rabbit Cage)
(Nest Box)
(Solar Light)
(Solar Light)
Appendix U. Computation for Compensation and Benefits
SSS 2023 2024 2025 2026 2027

SSS per caretaker 330 330 330 330 330
91
Number of caretakers 2 2 2 2 2
Total 660 660 660 660 660
2023 2024 2025 2026 2027

Philhealth
Philhealth per employee 400 400 400 400 400
Number of employees 2 2 2 2 2
Total Philhealth 800 800 800 800 800
Appendix V. Notes to Financial Statement
Notes 1 – Inventory 2023 2024 2025 2026 2027

Local new Zealand
Total 2 months kits 160 160 160 240 240
92
Directy attributable costs 120 120 120 120 120

allocated prices for 2 motnhs
old 330 330 330 330 330
Cost for 2 months old kits 450 450 450 450 450
Total cost of inventory for kits 72000 72000 72000 108000 108000
Total 2 months kits 80 80 80 120 120
Directy attributable costs 120 120 120 120 120
allocated prices for 2 motnhs
old 1330 1330 1330 1330 1330
Cost for 2 months old kits 1450 1450 1450 1450 1450
Total cost of inventory for kits 116000 116000 116000 174000 174000
Total cost of Inventory 188000 188000 188000 282000 282000
Notes 2 – Building 2023 2024 2025 2026 2027

Cost 350,000 350,000 350,000 350,000 350,000
Accumulated Dep.
(20yrs) 17500 35000 52500 70000 87500
Carrying Amount 332,500 315,000 297,500 280,000 262,500
Notes 3 - Biological
Assets 2023 2024 2025 2026 2027
Local New Zealand
Does 24000 24000 24000 40000 40000
Bucks 4800 4800 4800 8000 8000
Does 34500 34500 34500 46000 46000
Bucks 24000 24000 24000 32000 32000
Total 87300 87300 87300 126000 126000
Accumulated Dep. (3yrs) 29100 58200 87300 42000 84000
Carrying Amount 58200 29100 0 84000 42000
Notes 4 - Equipment and

Tools 2023 2024 2025 2026 2027
Equipments 1
Single cages set: 12,000 12,000 12,000 18,000 18,000
Grow-out cages set(10bxs): 72,000 72,000 72,000 108,000 108,000
93
Breeding cages set(4bxs): 24,000 24,000 24,000 36,800 36,800

Plastic matting
Nipple drinker
J feeder
Hose
Cage stand
Total Cost 108,000 108,000 108,000 162,800 162,800
Accumulated dep. (10yrs) 10800 21600 32400 43200 54000
Acc. Dep. for new purchases 5,480 10,960
Carrying Amount 97,200 86,400 75,600 114,120 97,840
Equipment 2
Nest box warmer/Plastic 2400 2400 2400 6,000 6,000
Acc. Dep. (3yrs) 800 1600 2400 2,000 4,000
Carrying Amount 1600 800 0 4000 2000
Equipment 3
Weight scale 1200 1200 1200 1200 1200
Solar Ligths 6,000 6,000 6,000 6,000 6,000
Electric fans 1,200 1,200 1,200 1,200 1,200
Total cost 8,400 8,400 8,400 8,400 8,400
Acc. Dep. (5yrs) 1,680 3,360 5,040 6,720 8,400
Carrying Amount 6,720 5,040 3,360 1,680 0
Tools 2023 2024 2025 2026 2027

Gloves 120 120 120 120 120
Aluminum pail 150 150 150 300 300
Boots 450 450 450 900 900
Shovel 900 900 900 1,350 1,350
Total cost 1,620 1,620 1,620 2,670 2,670
Accumulated dep.(3yrs) 540 1,080 1,620 890 1,780
Carrying Amount 1,080 540 0 1,780 890
Total Equipment and Tools 106,600 92,780 78,960 121,580 100,730
Notes 5 - Furniture and

Fixture 2023 2024 2025 2026 2027
Cost 6,600 6,600 6,600 6,600 6,600
Accumulated Dep. (10yrs) 660 1320 1980 2640 3300
Carrying Amount 5940 5280 4620 3960 3300
94
Notes 6 - Accrued
Utilities 2023 2024 2025 2026 2027
Electric bill 700 700 700 700 700
Total 700 700 700 700 700
Note 7 -Income tax

payable 2023 2024 2025 2026 2027
Taxable income 308,300 354,120 385,920 984,995 937,295
Threshold 250,000 250,000 250,000 800,000 800,000
Excess of 250,000 58,300 104,120 135,920 184,995 137,295
15 25
Income tax rate % 15% 15% % 25%
Additional taxes 0 0 0 102500 102500
15,618.0 148,748.7 136,823.7
Income tax payables 8,745.00 0 20,388.00 5 5
Notes 8 - Sales 2023 2024 2025 2026 2027

Local New Zealand
Sales in unit 640 800 800 1,120 1,200
Price per unit 500 515 530.0 550.0 570.0
Gross sales 320,000 412,000 424,000 616,000 684,000
Sales in unit 320 400 400 560 600
Price per unit 2000 2060 2120 2190.0 2260.0
Gross sales 640,000 824,000 848,000 1,226,400 1,356,000
Total Sales 960,000 1,236,000 1,272,000 1,842,400 2,040,000
Notes 9 - Cost of Good

Sold 2023 2024 2025 2026 2027
Total Beginning
Inventory:
Kits (2mounths old) 188,000 188,000 188,000 282,000
Supplies:
Feeds (kg)
Does 41400 42700 44000 70500 72600
Bucks 6,200 6,400 6,600 10,600 10,900
Kits 69100 89,000 91700 146,900 151,300
95
Medications: ml
Antibacterial 92800 114,500 114500 178,100 178,100
Food supplements 55700 68,700 68700 106,500 106,500
Ending Inventory:
188,000. 188,000. 188,000. 282,000. 282,000.
Kits (2mounths old) 00 00 00 00 00
77,200. 321,300. 325,500. 418,600. 519,400.
Cost of inventory 00 00 00 00 00
454,9 454,9 454,9 454,9 454,9
Direct Labor cost 80 80 80 80 80
Water for Rabbit 9,720 9,720 9,720 9,720 9,720
Electric Bill 8,400 8,400 8,400 8,400 8,400
Depreciation:
Biological Asset 29100 29100 29100 42000 42000
Building 17,500 17,500 17,500 17,500 17,500
Total Overhead 64,720 64,720 64,720 77,620 77,620
Total Cost of sale 596,900 841,000 845,200 951,200 1,052,000
Notes 10 - Other
Income 2023 2024 2025 2026 2027
Unproductive Does 72
Selling Price 400
Total Other Income 144,000.00
Notes 11 - Operating
Expenses 2023 2024 2025 2026 2027
7,9
SSS Contribution 20 7,920 7,920 7,920 7,920
PhilHealth Contribution 9,600 9,600 9,600 9,600 9,600
Other supplies:
3,6 4,5 4,5 6,5 7,0
Cartons 00 00 00 00 00
1 1 1 1
Tie box 75 25 25 75 75
1 1 1 1 1
Scissors 00 00 00 00 00
Record book 2 3 3 5 5
96
00 00 00 00 00
1 1 1 1
Receipts 75 05 05 50 50
1 1 1 1 1
Ballpen/box 50 50 50 50 50
3,6 3,6 3,6 3,6 3,6
Water for owners 00 00 00 00 00
Depreciation:
Furniture and Fixture 660 660 660 660 660
Equipment 13280 13280 13280 19960 19960
Tools 540 540 540 890 890
Advertising Expenses 15,000
Total 54,800 40,880 40,880 50,205 50,705
97
Appendix W. Supporting Computation for Financial Statement Analysis
Supporting Computation for Gross Profit Margin

2023 2024 2025 2026 2027
Gross profit 363100 395000 426800 891200 988000
96 1,236, 1,27 1,842, 2,040,
Net sales 0,000 000 2,000 400 000
Gross profit
Margin 0.38 0.32 0.34 0.48 0.48
Supporting Computation for Net Profit Margin

2023 2024 2025 2026 2027
299,55 338,50 365,53 836,24 800,47
Net Profit 5 2 2 6 1
960,00 1,236,00 1,272,00 1,842,40
Net sales 0 0 0 0 2,040,00
Net Profit
Margin 31% 27% 29% 45% 39%
Supporting Computation for Return on Investment

2023 2024 2025 2026 2027
299 338 36 836 800
Net Income ,555 ,502 5,532 ,246 ,471
Ave. Total 812 1,874 2,13 2,688 3,449
Assets ,000 ,720 0,478 ,656 ,580
Return on
Investment 37% 18% 17% 31% 23%
Supporting Computation for Total Assets Turn-Over

2023 2024 2025 2026 2027
960,0 1,236,0 1,272,0 1,842,4 2,040,0
Net Sales 00 00 00 00 00
812,0 1,874,7 2,130,4 2,688,6 3,449,5
Ave. Total Assets 00 20 78 56 79
Total Asset Turn-
over 118% 66% 60% 69% 59%
98
Supporting Computation for Return Fixed Assets Turn-over

2023 2024 2025 2026 2027
960, 1,236, 1,272 1,842, 2,040,
Net Sales 000 000 ,000 400 000
Ave. Fixed
Assets 476,620 922,700 861,620 885,310 899,035
Fixed Assets
Turn-over 201% 134% 148% 208% 227%
99
Curriculum Vitae
Contact Information
Name: Yvonne Grashelle C. Busal
Addres: Poblacion 6, Midsayap, North Cotabato
Contact Number: 09387329893
Email Address: busal.yv@southernchristiancollege.edu.ph
Personal Information
Age: 21
Date of Birth: November 16, 2000
Place of Birth: Midsayap North Cotabato
Gender: Female
Civil Status: Single
Ethnicity: Cebuano
Educational Attainment
College: Southern Christian College 2022
High School: Notre Dame of Midsayap College 2018
Elementary: Dilangalen Central Elementary School 2012

100
Curriculum Vitae
Contact Information
Name: Regine C Cariman
Addres: Poblacion 6, Midsayap, North Cotabato
Email Address: cariman.re@southernchristiancollege.edu.ph
Age: 22
Date of Birth: October 23, 1999
Place of Birth: Cotabato City
Gender: Female
Ethnicity: Cebuano
High School: Notre Dame of Midsayap College 2018
Elementary: Dilangalen Central Elementary School 2009

101
Curriculum Vitae
Contact Information
Name: Ronel Q. Dava
Addres: Bao, Alamada, North Cotabato
Email Address: roneldava05@gmail.com
Age: 22
Date of Birth: Febuary 05,2000
Place of Birth: Bao, Alamada, North Cotabato
Gender: Male
Ethnicity: Ilonggo
High School: Kitub- Bao Senior High School 2018
Elementary: Upper Bao Elementary School 2002

102
Curriculum Vitae
Contact Information
Name: Rizal S. Mendoza IV.
Addres: Lower Katingawan, North Cotabato
Email Address: mendoza.ri@southernchristiancollege.edu.ph
Age: 24
Date of Birth: October 30, 1997
Place of Birth: Cotabato City
Gender: Male
Ethnicity: Tagalog
High School: Cotabato City National High School 2014
Elementary: Sero Elementary School 2010

Feasibility Study On Rabbit Farming (Hardbound)

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A FEASIBILITY STUDY ON RABBIT FARMING

A FEASIBILITY STUDY PRESENTED TO THE FACULTY OF THE COLLEGE OF

BACHELOR OF SCIENCE IN ACCOUNTANCY

shared their knowledge in making the study possible:

can do things beyond their limit;

understanding, cooperation, patience, trust, faith, and unforgettable memories and

lessons shared.Without all of these, this paper is not possible.

3 Projected Demand and Supply Gap for Local New Zealand 22

4 Projected Demand and Supply Gap for Upgraded Californian 22

5 Market Share for Local New Zealand 23

6 Market Share for Upgraded Californian 24

10 Equipment & Tools 35

11 Furniture and fixtures. 36

13 Compensation and benefits 41

15 Gross Profit Rate 49

16 Net profit margin 49

18 Fixed asset turnover and total asset turnover 50

A Location of the Business 57

B Computation of Sample Size 58

C Questionnaire for the Demand 59

D Questionnaire for the Supply 60

E Letter to the Mayor 61

F Letter to the Barangay Captain 62

G Informed Consent Form for the Demand and Supply 63

H Letter to the respondents 68

J Computation for the Actual Demand 70

K Computation for the Projected Demand 76

L Computation for Willingness 78

M Computation for the Historical Supply 79

N Computation for the Projected Supply 80

O Computation for Market Share 82

R Supporting Computation for biological assets and supplies 85

S Building Structures and Layout 88

T Machineries, Equipment and Tools 89

U Computation for Compensation and Benefits 91

V Notes to Financial Statement 92

W Supporting Computation for Financial Statement Analysis 97

Adviser: Lora May A. Calawigan, MBA

business, location of the business, mode of financing, highlights of major assumptions,

industry analysis, competitor analysis, customer analysis, and conclusions.

Name of the Business

Description of the Business

the municipality of Midsayap within Poblacion 1 to 8 and Villarica.

Location of the Business

of its biological asset which is in Midsayap North Cotabato (Appendix A).

The mode of financing of the business is through the personal savings of

initial working capital.

Highlights of Major Assumptions

were the assumptions:

using a straight-line method in computing the depreciation expense.

withdrawals of ₱100,000 will remain constant in the succeeding years of

5. The forecasted inflation rate for 2020 is 3% (Tradingeconomics, 2019). This

400 per kg.

7. The survival rate of rabbits is 66.67% (Fitz, 2021). .

8. All the kits will be disposed of after 3 months.

To analyse the competitors, the business used the strength, weaknesses,

opportunities, and handles any threats.

households, they view rabbits only as pets and not to be consumed.

rabbits as pets, these can be considered an opportunity in reinforcing its perceptive

offerings. Also, it can make partnerships with the Department of Agriculture.

well-being of the rabbits, which may affect the productivity.

Customers have an essential role in a business. In order to analyze the buying

used to analyze Cuniho’s potential customer’s buying characteristics and perception of