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Proponent : PAULO Y. LIGAY

Program and Section
Subject: BSAF-III
Academic Year: SY 2021-2022

Part I
Rationale
The business that is trying to build up is Sampalicious delicacies made of Tamarin and
sweet potato, offering a delicious and nutritious product. The proponent combined this
root crop because it has the same advantages as a food ingredient.
Tamarin (Tamarindus indica) contains vitamin B1 (Thiamine), vitamin B3 (Niacin),
Potasssium and other similar nutrients, but certain characteristic and light sweet flavor,
set tamarin apart from other varieties. The tamarind tree (Tamarindus indica) is grown
as a commercial crop in warm climates, and it’s also grown for its value as a large shade
tree. Tamarins are high in Magnesium, Potassium, Iron, Calcium, Phosphorus, Copper,
Vitamin B1 (thiamin), Vitamin B2 (riboflavin), and Vitamin B3 (niacin). Plus, it also
contains 6 grams of fiber, 3 grams of protein, and less than 1 gram of fat. This comes
with a total of 287 calories. The overall objective of this chapter is to review the past,
present, and future role of the tamarin (Tamarindus indica) in human nutrition.
Specifically, the chapter describes the role of the tamarin in human diets; also the
nutritional composition of the tamarind with emphasis on its contents; highlights
Tamarind utilization, and its potential as value- added products in human food systems;
and demonstrates the potential of the Tamarind.
The sweet potato locally known as “camote or Kamote” (Ipomoea batatas) and in the
other countries also known as yam or kumera is an important source of fiber, vitamins,
and minerals. This crop is a rich source of Potassium, Copper and Niacin which is the
same nutrients in tamarin. Sweet potatoes are starchy root vegetables that are rich in
fiber, vitamins, and minerals. They’re also high in antioxidants that protect your body
from free radical damage and chronic disease. It can also be roasted, toasted, or used as
fresh vegetable. The development of sweet potato industry, the technical aspect of
processing of sweet potato should not only be assessed, but also to determine the
profitability of processed of sweet potato and also the tamarin as a small scale industry
that serves as income generating project of the producers. The proponent is motivated
to make an innovative product within these two crops, the product really suited for
Filipino who likes sweets. This kind of business will help to the farmers of this two crops
increase their production.
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Source: https://www.healthline.com/nutrition/tamarind#nutrient-profile
https://www.healthline.com/nutrition/foods/sweet-potatoes#nutrients
https://www.webmd.com/diet/health-benefits-tamarind
https://en.wikipedia.org/wiki/Tamarind

Part II
Marketing Aspect
A. Nature of the Business
This project presents the aspects of the business and the availability of it. The
proposed business shows the different aspect of the business on how it will be
marketable and feasible to the prospective target market such as vendors of delicacies
like sampalok candy in the new and public market of Victoria to the nearby household
areas of the proponents. This proposal has a limited to the surveys and interviewers
within the area of the proponents.

Month Past Demand Projected Demand

June 456.55 1,296.55

July 576.55 1,416.55

August 696.55 1,536.55

September 816.55 1,656.55

October 936.55 1,776.55

November 1056.55 1,896.55

December 1176.55 2,016.55

Table 1: Past and Projected Demand

The proponent determined the total demand of the product through school canteen,
owner of the restaurants that have delicacies and groceries in Victoria and retailers in
old public market and asking the prospective buyers, that if the product is available in
the market, how many pieces can be possibly supplied by the proponent. The demand is
estimated at 456.55. The total demand in the month of June to December is cup as
reflected to Table 1. The projected Demand shows the future demand of the product.
The researcher determined the projected demand using average method. It based on
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the past demand, the product will increases 1,296.55 in the month of June and
continuous to increase at 2,016.55 in the month of December.

Market Share in Pesos

Table 3 Market Share in Pesos

Month Projected Market Percentage (%)

Demand share in
pesos

June 1,296.55 971.66 75%

July 1,416.55 1,089.97 77%

August 1,536.55 1,229.24 80%

September 1,656.55 1,374.94 83%

October 1,776.55 1,510.07 85%

November 1,896.55 1,555.17 82%

December 2,016.55 1,774.56 88%

This market share shows if the business will increases, getting to projected demand,
assumed that can be produce 100 pcs per day. It was found that projected demand has
75% of market share for the first month of production.

Marketing Program
The product Sampalicious delicacies is an innovative product that gives good taste to
the consumers to satisfy their wants. The researcher know that the product is new to
industry so they make some activities to promote the product, first the researcher gives
flyers to the students and to the nearby barangays, posting to the social network like
facebook and Instagram also text messages that will send to friends and neighbors to
know the consumers about the product. The proponents give discounts for those who
will buy 1 bundle and also free tasting to evaluate product.
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Distribution Channels

Manufacturers

Retailers

Consumers

The manufacturers will be distributed the product through retailers were the
consumers will buy the product.

Promotion
Promotion is important to know the consumer about the product, the product will be
popular will become by giving consumers free tasting and when buying 20 pieces of
product it will get one for free in order to them to satisfy the product. In addition
promotion will be through texting and word of mouth marketing will be enforced.

Price
Every product should be marketed at the price in the long run, yield an optimum
profit. Pricing is influenced by production and marketing cost, product or service
difference, substitute products and materials, competitor’s prices and marketing
objectives. Sampalicious delicacies are price according to the ingredients used with
affordable price of 3.00 each and 60.00 per bundle.

Packaging
Sampalicious delicacies will be wrap in a yema wrapper each, and have 20 pcs per
bundle that will be put in a plastic ware.

Brand Name
The proponent had decided to name it as “Sampalicious’ which comes from sampalok and delicious
to caught consumers attention.
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Part III
Technical Aspect
Product Description
The Sampalicious delicacies, this product is made of tamarind with sweet potato
which has the same nutrients of Potassium, Copper and Niacin. This product has a good
texture, the proponent conduct this study especially for human diets. Based on the
researcher this crops is beneficial food because it is a rich source of antioxidants that
can enhance the efficacy of the body’s natural immune defences.

Manufacturing Process
The following should be followed in order to produce the proposed products:
a. Select good quality of tamarind and sweet potato.
b. Peel the sweet potato.
c. Wash gently the sweet potato.
d. Put the sweet potato in boiling water for about 20 minutes.
e. In a pot, mix all the ingredients thoroughly.
f. Bring to a boil then simmer by lowering the heat. This is where you can make
adjustments to the final flavour of the candy whether you it sweeter or the
sourness prevails a bit than the sweetness.
g. Mix until the texture is sticky and smooth - and can take a semi solid form.
h. When done, remove from heat and allow to cool.
i. Wrap individually in plastic or store in a jar.

Plant Layout
It is important to have an area for the production of the product for developing and to
be easy to fulfill the assign task of the workers. The business will be conducted at the
Technology and Product Development Center of Mindoro State College of Agriculture
and Technology Main Campus.

Plant Location
The place of production is also important to the proponent especially when creating
the product. The proponent decided to develop their product at the processing area
inside of school.

Source of Materials
The raw materials will be brought in the old public market where the tamarind are
available and the peanut is available in the market of Victoria and to some grocery
stores.
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Utilities
Power will be supplied by the Oriental Mindoro Electric Cooperative (ORMECO). As
estimated, the (Name of the business) business will only consume a minimum rate, the
proponent assumed 10.00 monthly. 120 per year, since the working hours will only
daytime. Water is estimated 3.00 every month. This will provided by MinSCAT water
supply.

Waste Disposal
To maintain the cleanliness of the processing area of the product, the plastics of sugar
will be throw every process on the non-biodegradable garbage bag and the peelings of
tamarind and sweet potato will be place on biodegradable garbage bag.

Tools and Equipment

The following tools and equipment required and necessary to facilitate the production
of Sampalicious. There are the major and minor items to be considered.

Equipment Units Unit Total Cost

Cost

Gas Stove 1 1200.00 1200.00

Kawa 1 950.00 950.00

Tray 5 45.00 225.00

Bowl 2 40.00 40.00

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Production Flow Chart

Figure . Production Flow Chart

PEELING

BOILING

MIXING

COOLING

PACKAGING

This production flow chart shows the step by step process of making the product.
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Part IV
Management Aspect
I. Form of Organization
The proposed business will start as Sole Proprietorship. A sole proprietor
is someone who owns an unincorporated business by himself or
herself. However, if you are the sole member of a domestic limited
liability company (LLC), you are not a sole proprietor if you elect to treat
the LLC as a corporation.

II. Organizational Matrix

For a small type of business the enterprise shall be require who will take
the supervision of the business, Laborer 1 is the one who supervise or owner
and has the same work to Laborer 2 and Laborer3.

Organizational Chart

Laborer 1/ Owner

Laborer 2 Laborer 3

Responsibility
The proponent decide to be in Sole Proprietorship because Sole Proprietorship are
easy to establish and carry many advantages, however there are risks due to the
ownership structure.
As sole proprietor he must hired laborer to lessen the task he will going to do. The
owner must be the one to serve the costumers and clean the utensils. The other two
hired employees will be the one to make the product.

Labor Requirement

TheLaborerswillbepaidonaperpackbasis.Ineverypackoftheproductsthatproduce they will receive

P3.00.
The Number of Output Wage/Rate per pack Wage per Day Per Month
per day
worker is
expected Laborers (3) 120 P3.00 P360.00 P7,200.00
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to finish 120 packs per day. (Labor requirement table)

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Benefits
They are given incentives to a maximum product that they produced. The Laborer that
has a maximum number of outputs will be given a bonus.

Direct Labor
Month Pieces to Product Total direct
be cost per labor
produced piece cost
120 pcs
June 3.00 360.00
160 pcs
July 3.00 480.00
180 pcs
August 3.00 540.00
202 pcs
September 3.00 606.00
215 pcs
October 3.00 630.00
250 pcs
November 3.00 750.00
290 pcs
December 3.00 870.00
Assumed the total cup to be produced is 120 cups on the month of June and increasing
production until the month of December. (Refer to direct labor table)

Part V

Financial Aspect
Financial Statements
Financial statements are means to be able to determine whether the business is
making profit or not and whether the business financially strong or weak. It presents a
summary of the financial condition and the results of its business operation.
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Financial Assumptions
1. The product will produce 120 pieces per day.
2. The market share percentage get from the average demand
3. Assumed that will pay 3.00 for water consumption.
4. The transportation is 20.00 for buying raw materials.
5. Sales are computed from the Market Share.

Cost of Goods Sold

The cost of goods sold is important because it is a statement which supports income
statement. Costs are associated with particular goods using one of several formulas,
including specific identification, first-in first-out (FIFO), or average cost. Cost includes all
costs of purchase, costs of conversion and other cost incurred in bringing the inventories
to their present location and condition. Costs of goods made by the business include
material, labor, and allocate overhead. The cost of those goods not yet sold is deferred
as cost of inventory until the inventory is sold or written down in value.

Ingredients

Raw materials Cost of Raw Materials

Yema Wrapper P188.00

Sugar P45.00

Tamarind Pulp P275.00

Sweet potato P45.00

Salt P10.00

Income Statement
The income, the expenses and the net income or net loss is called the income
statement. It is a formal statement showing the results of the business. It indicates how
the revenue is transformed income. The income statement shows the net “profit or
loss” of the business. The information of statement shown the income earned of the
enterprise from sales monthly.
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Cash Flow Statement

It is the statement shows the inflows and the outflows of cash, inflow comprises of
sales and equity while the outflow is the amount paid in cash during the months.

Balance Sheet
Balance sheet is the most important statement that shows the financial condition of
the business. The business shows a good signs of operation since no liabilities were
incurred because the business was able to shoulder all the expenses without borrowing.

Projected Income Statement

Raw materials 598 715.5 805 700 845 890 900

Freight In 50 55 60 53 65 72 79
Direct Labor 360 360 360 360 360 360 360
Manufacturing
Overhead
Indirect
20 23 24 20 28 32 33
Materials
Fuel Expense 172 172 172 172 172 172 172
Total
1,7
Manufacturing 1,485 1,611 1,590 1,755 1,811 1,829
06
Overhead

Projected Income Statement refers to the estimate financial result of the business in
the future period of time. This projected statement includes the raw material, freight in,
direct labor and manufacturing overhead. Raw materials is started at 1183.00 and
increases to the month of July to December. The freight in includes the other expenses
in the operation of the business. The direct labor is the amount paid to the laborers
every month. Manufacturing overhead is refers to indirect related costs that are
incurred when product is manufactured.
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Projected Balance Sheet

Sales 2258 2565 2801 2515 2895 2904 2958

Cost of Goods Sold 1,102 1,250 1505 1205 1595 1603 1660

Gross profit sales 1,156 1,315 1,296 1,310 1,300 1,301 1,298
Less: operating              
Expense
Salary 360 360 360 360 360 360 360
Miscellaneous 70 70 70 70 70 70 70
Total operating 430 430 430 430 430 430 430
expense
Net operating expense 726 885 866 880 870 871 868
Net Income 376 365 639 325 725 732 792

Projected balance Sheet refers to some assumption data about the future of product.
It refers on how this balance sheet affect financial situation. The projected sales of
product is 2258.00 and slightly increase in the month of July and decrease in the month
of August, September and October. The Cost includes all good purchase. The Gross
profit sales is get from sales that subtracted to cost of goods sold. The total operating
expenses includes all expenses that are needed in the operation.
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Projected Cash Flow

Cash flow statement it is usually measured during a specified, limited period of time.
Measurement of cash flow can be used for calculating other parameters that give
information on a company's value and situation. It could review the balance sheet
changes to determine the facts, but the cash flow statement already has integrated all
that information.
               
June July August September October November December

Cash Inflow              
Cash Balance Beginning 0 200 250 257 285 293 300
Equity 195 0 0 0 0 0 0
Sales 2258 2565 2801 2515 2895 2904 2958
Total Cash Inflow 2453 2765 3051 2772 3180 3197 3258

Tools and Equipment 2,415 0 0 0 0 0 0

Direct Materials 1,435 1,440 1,460 1,511 1,516 1,624 1,626

Freight In 50 55 60 63 65 72 79
Direct Labor 360 360 360 360 360 360 360
Manufacturing Overhead 687 710 730 761 779 798 821
Operating Expense 430 430 430 430 430 430 430
Income Tax 0 0 0 0 0 0 0
Total cash Outflow 430 430 430 430 430 430 430
Cash Balance Ending 200 250 257 285 293 300 350
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Financial Analysis
Return on Investment = Net Income/Investment

Month   ROI

June 376/120 2%
July 365/1523 24%
August 639/2104 30%
September 325/2097 15%
October 725/3671 19%
November 732/2280 32%
December 792/1482 53%

Return on Investment as a performance measure, ROI of the product observed that

the first month of production is lower, and then in the second month of production it
increase. For the next month of production it continuous increasing but it decrease 2%
on the third and fourth month and increase in the last two months of production.

Gross Profit Ratio = Gross Profit/Net Sales

Month   GPR
June 1,156/2,258 51%
July 1,315/2,565 52%
August 1,296/2,801 46%
September 1,310/2,515 52%
October 1300/2895 44%
November 1301/2904 45%
December 1298/2958 44%

The gross profit ratio it observed that the ratio of gross profit for the first month is
higher and it continuous increasing to the month of July. The gross profit in October and
December has the same also in the month of July and September but it decreased on
the month of November and continuous decreasing in the last month of production.
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Net Profit Ratio = Net Income/Net sales

Month   NPR
June 376/2,258 17%
July 365/2,565 14%

August 639/2,801 23%

Septembe 325/2,515 13%
r
October 725/2,895 25%
November 732/2,904 26%
December 792/2,958 27%

The Net Profit

The net profit percentage is the ratio of after-tax profits to net sales. It is the one of
the best measures of the overall results of a firm, especially when combined with an
evaluation of how well it’s using work capital.
Payback Period = Total Investment/ Net Income
= 1200/282
= 4.3
Payback period
The duration of the project is 7 months period. The cost of the project is expected to
be recovered in full after 4 months and 3 weeks.
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Part VI
Social Responsibility
Contributions to Philippine Economy
The benefits obtained from the establishment of (Name of business) making the
important role in our community. It is important to make our industrial and agricultural
industry grows. The production of this product will be a great help especially for those
who like sweets yet nutritious product.

Employment Generation
This enterprise produce employment gives livelihood and also helps the farmers of sweet potato and
peanuts, increases their production. The ingredients is easy to find and help’s to decreases the
employment’s problem.

Benefits it can be bring to Related Industry

The production activity exerts an additional demand for the raw materials and other
industrial outputs. Allow other business and livelihood to gain some information about
using the main product and they develop it to another product.
Exhibit 1
Past Demand

Group of June July August September October November December

Retailers
Alcate 550 600 650 700 750 800 900
Leido 500 580 600 640 660 740 800
Pasi 450 500 540 580 600 630 700
MinSCAT              
Canteen 400 450 500 530 560 600 750
TOTAL: 1900 2130 2290 2450 2570 2770 3150

Average
Demand: 456.55, 576.55, 696.55, 816.55, 936.55, 1056.55, 1176.55
Source: This data is based on interview to the store owner in Victoria

Exhibit 2
Computation of Selling Price
Raw Materials

Yema wrapper 420 (1.4) 600/420 1.4

Sugar 4 (40) 160/420 0.38
Tamarind Pulp 2 (30) 60/420 0.14
Sweet Potato 7 (25) 175/420 0.42
Total Raw     3.18
Materials
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