HONEY LEMON SUGARING WAX

A feasibility Study

Prepared to

The Faculty of the College of Business Education

Of

Northeastern Mindanao Colleges

Surigao City

In Partial Fulfillment

Of the Requirements for the Degree

Bachelor of Science in Business Administration

OLIMPUS, GIRLY C.

PEDARSE, JULIE

ELICO, LHORE MEL T.

TUQUIB, FRANCES ELOISE

 CHAPTER 2

MANAGEMENT FEASIBILITY

BUSINESS ORGANIZATION

An entity created for the purpose of conducting business is a business

organization. A system of law governing contract and trade, property rights, and

incorporation is the foundation of such an organization.

Therefore aligning your goals, capacities and resources with the law and

the type of business organization is crucial. You have to assure that the chosen

form suits best and that it will bring more favorable outcomes. In starting a

business, the first thing you have to consider is whether you’re doing the

business alone, or you’ll be teaming up with another person/s.

The researchers have chosen a sole proprietorship form of business

organization in the proposed business owned by one individual who controls all

aspects of the organization. In sole proprietorship only one person owns all the

assets of the business and the profits generated by it, the ease with which

business decisions can be made, the simplicity of bookkeeping , and relatively

low startup costs compared to other businesses.

Advantages of Sole Proprietorship

● You’re the voice.

● Profits are all yours.

● Minimal start-up costs.

● The running process is simpler.

Disadvantages of Sole Proprietorship

● Unlimited Liabilities

● Raising Capital is Limited.

● Decision-making is all yours.

ORGANIZATIONAL STRUCTURE

Organizational structure specifies how roles, power, and duties are delegated,

regulated, coordinated, and how information flows between the various levels of

management. To gain a lasting competitive advantage, an organization must be

effective, flexible, innovative, and caring.

An organization can be structured in many different ways , depending on its

objectives. The structure of an organization will determine the modes in which it

operates and performs. We have chosen this line structure which is a simple,

clear and common structure in businesses. The diagram below shows the flow of

authority and distribution of work from the owner, manager and cashier down to

the workers. (see figure 2.0)

 Owner/Manager/Cashier

Worker 1 Worker 2

FIGURE 2.0 PROPOSED ORGANIZATIONAL STRUCTURE

BUSINESS LOCATION

One of the most difficult aspects of setting up a business is deciding

where to live in your business space. In fact, a suitable location has a significant

long-term impact on the ability to produce quality items and reach the target

market.

The proposed location for the business is located at Borromeo st. Surigao

city. The purpose of these location maps and sketch maps is to locate the area

easily by the customers. (See fig. 2.1)

Location map

FIGURE 2.1 LOCATION MAP OF PROPOSED BUILDING

Business will be situated at Borromeo Street, Surigao City with an area of

160 sqm. The said location is accessible, convenient for parking and known for

business trading.

Sketch Map

For a better giving of direction or location, a sketch map is used by

individuals. It is a sketch drawn by using boxes and other shapes to represent

the placement of buildings. (see figure 2.2)

 FIGURE 2.2 SKETCH MAP OF PROPOSED BUILDING

MANAGEMENT PERSONNEL REQUIREMENTS

Management personnel are those employees who bear authority and/or

responsibility in planning, directing and controlling the business activities whether

directly or otherwise. Understaffing makes the working process slow and

overstaffing results to employees’ lack of engagement and commitment to work.

The owner, who also serves as the manager and cashier, does not

receive a salary since she owns the entire profit. The employee will work four

weeks in a month, six days a week. They will labor a total of 26 days, except the

four Sundays, and receive $350 per day.

 TABLE 2.0 MANAGEMENT PERSONNEL REQUIREMENTS

Table 2.0 shows the list of personnel required in management.

TABLE 2.1 PERSONNEL CONTRIBUTION-EMPLOYEE

ANNUAL DEDUCTIONS 13TH NET PAY

POSITION MONTHLY SALARY NET TOTAL
SALARY SSS Pag-IBIG philhealth TOTAL MONTH PAY
worker 1 9,100.00 109,000.00 4,905.00 2,180.00 3,815.00 10,900.00 98,100.00 9,100.00 107,200.00
worker 2 9,100.00 109,000.00 4,905.00 2,180.00 3,815.00 10,900.00 98,100.00 9,100.00 107,200.00
TOTAL 18,200.00 218,400.00 9,810.00 4,360.00 7,630.00 21,800.00 196,200.00 18,200.00 214,400.00
Since the manager pays himself his wage, deductions for him are not

included in the total since otherwise the company would dare to profit from his

income. Keep in mind that the employee's monthly salary determines the 13th

month's pay. Based on the employees' yearly contributions, deductions are

made. (see table 2.1)

 TABLE 2.2PERSONNEL CONTRIBUTION-EMPLOYER

TOTAL
POSITION MONTHLY SALARY DEDUCTIONS
CONTRIBUTI
SSS Pag-IBIG philhealth
ON
Worker 1 9,100.00 9,265.00 2,180.00 3,185.00 15,260.00
Worker2 9,100.00 9,265.00 2,180.00 3,185.00 15,260.00

TOTAL 182,000.00 18,530.00 4,360.00 7,630.00 30,520.00

Since the owner serves as the manager, the manager's annual

contribution is not included in the computation. An employee and employer

contribution schedule for SSS is provided in brackets.

As in the case of the Pag-IBIG (HDMF) employee contribution, 1% of the

employee's monthly salary is withheld if it is less than $1,500 and 2% if it is more

than $1,500. Regardless of the employee's salary, the employer must contribute

2%.

PhilHealth (PHIC) charges a premium rate of 3.5%. Employees making

less than $10,000 are subject to a fixed contribution of $350. Calculations for

those making over 10,000 but less 69,999.99 are made using the monthly wage

multiplied by 3.5%. Both employers and employees must contribute equally to

the total monthly premiums.

REGULATORY REQUIREMENTS
 The regulatory requirements is the goal that organizations aspire to

achieve in their efforts to ensure that they are aware of and take steps to comply

with relevant laws, policies and regulations. These are the important things to

secure before the initial operations of the business starts. It is for the legality of

the business. Without it, the said business is considered as illegal and that is

prohibited by the law. In some cases, businesses operate without adherence to

the rules and regulations set by the country in which they want to operate.

Countries may differ with the kind of law they exercise in regulating businesses.

Such requirements differ depending on the type of business structure and

offering- a particular business wants to provide.

These are the following requirements:

1. Department of Trade and Industry (DTI) allows businesses to trade

products and services. It covers matters including agreements, legal

processes and procedures.

2. Barangay Clearance is typically required when securing other permits

such as DTI and Mayor’s Permit and when registering at BIR. It is a

document certifying that a particular business is free from illegal acts and

conducts.

3. Mayor’s Permit allows the business to legally operate. It guarantees that

a business has the right to perform operations related to its nature and

gives authority to perform necessary tasks.

 4. Sanitary Permit is a document issued by the Department of Public Health

and Social Services authorizing the establishment to operate its

business after meeting the health standards and safety protocols set by

the government.

5. Bureau of Internal Revenue (BIR) Registration is a document that

obliges the business to pay the tax levied to it. The Bureau assesses the

revenue earned by the business and monitors the payment made

annually.

TABLE 2.3 COSTS OF REGULATORY REQUIREMENTS

COST FOR COST FOR

DESCRIPTION
2022 2023-2026
DTI Permit 1,530.00
Barangay Clearance 130 130
Mayor's/Business Permit 1,200 1,200
Sanitary Permit 400 400
BIR Registration 600 600
Total Regulatory
Requirements 3,860.00 2,360.00

Table 2.3 shows the list of regulatory requirements needed for the

business to legally operate. Except for DTI Permit whose coverage last for 5

years, the rest of the requirements are to be acquired and paid annually.

Regulatory fees are assumed to be constant for the next four years.
BUILDING, FACILITIES AND EQUIPMENT REQUIREMENTS

Building Requirement The desired building is spacious and reasonably

priced, leasing only the first floor for Php 10,000.00 per month, or Php

100,000.00 annually. For office and production use, the monthly rent is divided

as follows: the former pays 70% of the rent, the latter 30%.

Building Requirements

The building is needed by the workers to serve as a resting place and

storage area for the tools that are used. The building will also serve as the office

site of the product.

TABLE 2.4 BUILDING REQUIREMENT

Renovation cost Requirements

The projected labor expense is PHP 5,000 for 2 employees working 5

days at a rate of PHP 500 each. After adding the labor costs for leasehold

improvements and dividing the total by 5, the number of useful lives, the yearly

depreciation cost of refurbishment is calculated. Annually, an amount of Php

1,677.60 is depreciated, and at the end of the fifth year, the account for leasehold

improvements is zero.

Table 2.5 renovation cost Requirements

Perspective view

The structure comprises two storeys, the first of which is proposed to have six

rooms and a space for the drying process. The planned building's interior and

external designs were specifically created to evoke a rustic yet elegant vibe.

Customers are given the familiar by using wood materials and building walls that

resemble Nipa.

Warmth, friendliness, and a rustic atmosphere. Everything is seen in wood, a real

Filipino characteristic, from wall paint to doors and drawers. (see fig. 2.3)

FIGURE 2.3 PERSPECTIVE VIEW

Floor Plan

An inside top view is used to create a floor plan, which is a two-

dimensional representation of the building. It displays how the structure's levels

are divided up into rooms. A good floor plan makes the most of the available

space and provides customers with ease and comfort. 16 The proponents

explored conducting both production and administrative activities at the same

site. The office, counter, and receiving area is where paperwork, transactions,
and customer service take place. The stockroom houses finished goods and

production-related supplies. The processing area is connected to a small lavatory

(where materials are processed and sealed). For the benefit of the staff, there

are two comfort rooms: one inside the office area and one outdoors. There is

also an outside area for the drying process.(see figure 2.4)

FIGURE 2.4 FLOOR PLAN OF THE PROPOSED BUILDING

Office furniture & fixtures requirements

The office furniture & fixtures needed to be placed in the office section for

business transaction purposes. it also shows the estimates useful life of furniture

and fixtures and its annual depreciation (see table 2.6)

TABLE 2.6 FURNITURE AND FIXTURES REQUIREMENTS

Office Equipment Requirements

Equipment is a valuable asset for each business. They continue to use

administrative processes that are more exact and efficient. The right equipment

purchases make operating a business easier and more convenient. Table 2.8

shows lists of the office equipment; the same depreciation approach is used for

OFF (Office Furniture and Fixtures). (see Table 2.7)

TABLE 2.7 OFFICE EQUIPMENT

Office Supplies Requirements

Various goods are needed to support the business' administrative

procedures. These materials are required for transactions, maintenance,

inventory, and accounting. Any organization is aware of the impact that

inadequate supply may have on operations. Thus, planning ahead reduce

supply shortages and insufficiency. For annual Office Supplies and Office

Supplies projections (see Tables 2.8 and 2.9).

Table 2.8 Office Supplies Requirements

Table 2.9 Office Supplies Projection

Table 2.9 shows the projected office supplies cost and it is assumed that

the cost will increase by 5% every year due to inevitable inflation.

 CHAPTER 3

MARKET FEASIBILITY MARKETING ENVIRONMENT

The marketing environment is the setting in which a company makes use

of both internal and external resources to uphold positive relationships with the

clients it serves. The target market is the group of clients that the company seeks

to serve (mostly ages 15 and above). The two segments of the target market are

consumers and end users. End-users are individuals who consume the product

and may or may not have purchased it directly, as opposed to customers, who

purchase the goods but may or may not utilize it.

COMPETITION

Improvement in the economic environment, surge in aging population, and

increase in disposable incomes are the key drivers and hair removal wax market

trends of the market. Lack of awareness regarding products is a key restraint for

the market. The hair removal wax industry is gradually moving toward maturity in

the developed economies, which is expected to drive the hair removal wax

market growth.

DIRECT COMPETITORS

These competitors offer almost the same products and identical skin

benefits. They go after skin restoration, moisturization and exfoliation.

Competition with these products is quite tight since they have already made their

marks by partnering with drugstores, grocery stores and consignment stores.

Table 3.0 shows the list of Direct Competitors.

INDUSTRY

Even men and women in the Philippines recognize the value of maintaining

healthy skin. Numerous skin care requirements, including whitening,

moisturizing, and washing, are addressed; this is likely a legacy of personal

hygiene that our ancestors left for us. The development of skin care products

developed in the Philippines over time has made skin care more accessible than

ever.

The personal grooming market was dominated by skin care products.

Despite the economy, customers frequently seek out skin care. This is so

because skincare items are frequently mistaken for personal care items rather

than cosmetics. wax Scrub is one of the most prevalent skin products in the
nation, accounting for about 32% of all skin products, hence the proponents are

trying to break into the wax market.

BUSINESS MODEL

A company's business model outlines how it creates, delivers, and maintains

customer value. There are various business models that offer various goods and

services. To prevent losses, a business model must be created that will satisfy

the needs of the organization. Prior to starting the firm, it is important to have a

clear understanding of the specific product or service to offer, marketing tactics,

and potential costs. Along with adaptive strategies for maintaining customer

value and satisfaction, the distribution method should also be taken into

consideration.

The Brick & Click Business Model is being used by the proponents. Since many

people use online platforms in addition to making physical purchases,

businesses have updated their business models to embrace online platforms. s.

Brick & Click is a model that integrates selling via actual purchase (bricks) and

online placement of order through social media accounts (clicks).    Technology

has altered how people access goods, and this kind of business model provides

a quicker and more efficient solution. Reaching clients and vice versa is much

quicker through physical space and internet channels. The goods can now be

reserved by customers for later pick-up at their convenience.

MARKETING AND SALES STRATEGIES

Stagnant ones are eliminated by ongoing technological advancements,

product improvements, and inventions. Therefore, if demand changes, marketing

and sales techniques should too. It aids the company in luring in new clients,

keeping them, and earning their loyalty..

❖ Online Promotion

Without spending money on fliers that will end up in their trash bins in the

following 25 seconds, posting the product online (via a Facebook Page) and

emphasizing why it is a must-have item will get buyers' attention the fastest..

❖ Radio Advertisement

Radio stations play advertisements for the product. A excellent strategy to

launch your product is to introduce it to the target market. In contrast to the first

method, the second targets illiterate people by explaining the benefits and effects

of the product in a way that they will undoubtedly understand. A Php 60,000

advertisement cost is acknowledged and will not change throughout the following

years.
 Figure 3.0 Distribution Channel

Product distribution commences on a physical space where wholesalers and

retailers purchase Honey Lemon Sugaring Wax from the store and distribute the

products to customers.

DEMAND AND SUPPLY PROJECTIONS

To get the demand and supply projection, determine the population of the

prospective area to supply. Table 3.1 shows Surigao del Norte (SDN) Count as

of the last quarter of 2021. Because there is no data for 2016 and 2021, 2015

and 2020 data are used. Deducting the 2015 population from 2020 and dividing

the difference by 5, the resulting quotient is added per year.

Table 3.1 Individual Population

Demand

Demand is the total number of output demanded. It is computed after

multiplying the population with the rate of demand. Table 3.2 shows a 45%

demand from the total population per year.

Table 3.2 Demand Projection

Year Demand
1 2
Past
2017 227,209
2018 231,668
2019 236,128
2020 240,587
2021 245,047
Projected
2022 249,506
2023 253,966
2024 258,425
2025 262,885
2026 267,344

Supply

Supply is the total number of output supplied. It is computed after multiplying

the total number of demand with the rate of supply. 45% of the total demand is

supplied per year. (See Table 3.3)

Table 3.3 Supply Projection

Year Supply
1 2
Past
2017 102,244
2018 104,251
2019 106,258
2020 108,264
2021 110,271
Projected
2022 112,278
2023 114,285
2024 116,291
2025 118,298
2026 120,305
DEMAND AND SUPPLY GAP

TABLE 3.4 DEMAND AND SUPPLY GAP

DEMAND/SUPPLY PERCENT
YEAR DEMAND SUPPLY
GAP UNSATISFIED
1 2 3 (4=2-3) (5=(4/2)*100%
PAST
2017 227,209 102,244 124,965 55%
2018 231,668 104,251 127,417 55%
2019 236,127 106,258 129,869 55%
2020 240,587 108,264 132,323 55%
2021 245,046 110,271 134,775 55%
Projected
2022 249,506 112,278 137,228 55%
2023 253,965 114,285 139,680 55%
2024 258,425 116,291 142,134 55%
2025 262,884 118,298 144,586 55%
2026 267,343 120,305 147,038 55%

The gap between demand and supply from the year 2016 to year 2025

shows a consistent rate of unsatisfied customers. The rate of dissatisfaction is

the rate to be penetrated by Honey Lemon Sugaring Wax.

PRODUCTION

Table 3.5 Production Table

SELLING SALES
YEAR QTY
PRICE PROJECTION
2022 24,960 150 3,744,000.00
2023 25,459 157.5 3,856,320.00
2024 25,968 165.37 3,972,009.60
2025 26,488 173.63 4,091,169.89
2026 27,018 182.31 4,213,904.99
 For every 480 pieces of wax made weekly, a total of 24,960 wax are

produced annually, the desired number for production. A 2% increase in

production is assumed per year. Also, 5% increase of selling price are assumed

and 3% annual increase of the cost price

MARKET SHARE

Table 3.6 Market Share

PROJECTED
MARKET
YEAR PRODUCTION SUPPLY +
SHARE %
PRODUCTION
1 2 3 (4=2/3)
2022 24,960 137,238 18.18%
2023 25,459 139,744 18.21%
2024 25,968 142,259 18.25%
2025 26,488 144,786 18.29%
2026 27,018 147,323 18.33%

Market share is used to determine your part and position in the market.

Production is the desired number of units to produce (by the proponents) and

projected supply is the entire quantity supplied by the competing companies.

SALES REVENUES

Table 3.7 Sales Revenues

SALES
YEAR SELLING PRICE QTY SOLD
REVENUE
2022 150 24,461 3,669,150.00
2023 157.5 25,449 4,008,217.50
2024 165.37 25,958 4,292,674.46
2025 173.63 26,478 4,597,375.14
2026 182.31 27,008 4,923,828.48
 Unsold items have a rate of 2%. Deducting the number of unsold from the

total units produced then multiplying the difference with the corresponding selling

price, the product is placed in column 4 as Sales Revenue.

COST/PRICING ANALYSIS

To determine the cost price of the product, materials used for production are

added including the direct labor; divide the sum with the total number of body

wax produced then set the mark-up price. Computation in Table 3.8 is based on

the daily production of goods.

Table 3.8 Cost/Pricing Analysis

RAW unit
SOURCE QTY amount
DESCRIPTION cost
White granulated
Princetown 16 kg 50 800
Sugar
honey Princetown 6 Bottle 200 1,200.00
lemon Fruit Stand  80 Pc 25 2,000.00
jar novo 80 Pc 35 2,800.00
Nature's spring
Princetown 5 bottle 15 75
mineral water
Labor 700
Total operating cost 6,875.00
Divide by no. of Wax 80
Cost Price 85.94
Mark-up (74.54%) 64.6
Unit Selling Price 150
INVENTORY COSTING

Keep in mind that during the first year of firm operations, there is no inventory

beginning. Inventory Beginning is increased by Production, and the resulting sum

is designated as Goods Available for Sale. The quantity of production units is

then multiplied by the rate of the unsold goods, and the result appears as

Inventory End in the fifth column. A rate of 2% is acknowledged, recognizing that

certain outputs go unsold as a result of fierce competition, disruptions in the

supply chain, and other variables that influence consumer purchasing behavior.

To calculate the quantity sold, simply subtract inventory from the goods that are

available for sale. The pricing analysis is used to get the cost price for 2022, and

the production table is used to determine the selling price. (refer to Table 3.9)

Table 3.9 Inventory Costing

Year Production IB GAFS IE QS CP SP IB COST IE COST

1 2 (3=1+2) (4=1*2%) (5=3-4) 6 7 (8=2*6) (9=4*6)
2022 24,960 - 24,960 499 24,461 85.94 150 - 42,884.06
2023 25,459 499 25,958 509 25,449 88.52 157.5 44,171.48 45,057.00
2024 25,968 509 26,477 519 25,958 91.17 165.37 46,406 47,317.23
2025 26,488 519 27,007 530 26,478 93.91 173.63 48,833.20 49,772.30
2026 27,018 530 27,548 540 27,008 96.72 182.31 51,262.00 52,229.00
 CHAPTER 4

TECHNICAL FEASIBILITY

Figure 4.0 Honey Lemon Sugaring Wax

PRODUCT DESCRIPTION

A typical woman uses whatever product her eyes will first lay. But others

know which product to pick. And what draws their interest? It’s the promise. Their

first purchase might be because of the promising lines of the packaging labels-

highlighting the effect and the benefits of their materials. Thus, the proponents

have carefully selected materials that will fit the nature of our body. HONEY: its

bacteria coming together to create a powerful ingredient with hundreds of

practical uses. The unique process that creates honey makes it especially
valuable for cosmetic uses. SUGAR: Sugar is one of the best natural beauty

ingredients to exfoliate your skin. They also help rejuvenate the skin by cleaning

all the dirt from the skin pores. With all the dead skin and dirt removed, the new

skin is more radiant and you have a healthier glow. LEMON: provide

tremendous benefits for your beauty regimen. Lemons contain alpha hydroxy

acid, which works wonders on your skin. They have natural antibacterial

properties, too, making lemon for acne treatment very effective. These little

yellow miracle workers are an abundant source of vitamin C, magnesium and

potassium. These minerals and antioxidants improve the appearance and health

of your skin, and hair. The product comes in one size packed in a Kraft stand-

alone pouch with window attains and zip lock.

BENEFITS OF SUGAR WAX:

Waxing promotes less ingrown hairs.when you wax, your skin is pulled

taut and the wax or cloth pulled quickly. This allows for an accurate, less painful

process (particularly if you book at a wax salon)- and lessens the chance of

ingrown hairs. When wax applied and stripped off, the outer layer of skin—and

any dead, flaky skin cells- is removed along with the wax. Skin is exfoliated and

texture improved.

Ingredients
● granulated white sugar

● lemon juice

● water

● honey
MANUFACTURING PROCESS:

1. Place a medium sized pot on the stove. Even though this recipe makes

a fairly small batch of sugar wax, use a medium or large pot to make it.

The mixture starts to bubble when you heat it, and it can overflow if you

use a small pot.

2. Add the white sugar, lemon juice, honey and warm water to the pot.

Measure out the granulated white sugar and dump it into the pot. Then

add the lemon juice, honey and warm water. Stir to combine them.
3. Bring the mixture to a boil over high heat. Turn your burner on high

and let the mixture heat up until it starts to boil. Stir frequently. Keep an

eye on the mixture, since it will start to bubble as it heats up.

4. Reduce the heat to medium. Once the mixture starts bubbling and

boiling, turn the heat down to medium. Continue to stir frequently. The

sugar should be completely dissolved in the liquid at this point.

5. Remove the pot from heat when the mixture turns golden brown.

Keep stirring the mixture as it simmers. Once it reaches a smooth

consistency and becomes a deep golden color, turn off the heat and move

the pot to another burner.

6. Pour the mixture into a bowl or jar and let it cool for 30 minutes.

Unlike traditional hot wax, sugar wax should not be used hot. Pour it into a

bowl or jar and give it about 30 minutes to cool down. If it still feels hot or
 warm enough to be uncomfortable, let it cool for several more minutes

before proceeding. Set aside for packing.

PRODUCTION REQUIREMENTS

Furniture and fixtures are required for production in order to facilitate and

organize the production process. Production workers are often interrupted while

creating things. The management should be aware that one method to mobilize

them is to offer them the comforts they deserve, such as chairs, tables, and other

furnishings, if they want to get the most out of their service. The formula used to

calculate the annual depreciation of production equipment is the same as the one

used to calculate office equipment and furnishings.

Table 4.0 Furniture and Fixture

Annual
Description Source Qty Unit Cost Total Cost EUL
Dep’n
Chair parkway 2 Pc 280 560 6 93.33
Working table Parkway 2 Pc 900 1800 6 300
Cabinet Parkway 2 Pc 1,800.00 3,600.00 6 600
Hanging
Parkway 2 Pc 1,599.00 3,198.00 6 533
Divider
ProductionDrawer
EquipmentParkway Requirements 1 Pc 1,200.00 1,200.00 6 200
Total production furniture & fixture 10,358.00 1,726.33

Equipment used in production makes the process efficient, accurate and

easy. Listed below are the equipment requirements. Total cost is derived after

multiplying the quantity and the unit cost. Dividing the product with its estimated

useful life, the quotient is reflected in the last column as annual depreciation.
 Table 4.1 Production Equipment

Annual
Description Source Qty Unit Cost Total Cost EUL
Dep’n
23”Orocan
stainless utility winsher 4 pc 403 1,612.00 8 201.5
basin
16”Orocan
stainless utility winsher 4 pc 327 1,308.00 8 163.5
basin
58L mega box winsher 4 pc 319 1,276.00 8 159.5
Large
winsher 4 pc 1,348.00 5,392.00 8 674
casserole pot
Digital
winsher 1 pc 320 320 8 40
weighing scale
Stainless knife winsher 2 pc 65 130 8 16.25
Auto sealer Electro.shop 4 pc 492 1,968 8 246
12.8 kg solane Solane store 12 con 1,300.00 15,600.00 8 1,950
Total Production Equipment Cost 27,606 3,450.75

Raw Materials Requirements

Raw materials are the major determinant of a quality product. The supply

of raw materials for production is a heavy task. The consistency of materials to

be used should be maintained to avoid quality discrepancy. Table 4.2 shows the

annual requirement of raw materials for 2022 followed by raw materials

projection for 5 years. With a yearly increase of 3%, the cost of raw materials

rises to Php 2,486,642.35 for 2026. (Refer to Table 4.3)

Table 4.2 Raw Materials

Description Source QTY Unit cost Amount

White
granulated Princetown 4,992 kg 50 249,600
Sugar
honey Princetown 1,872 bottle 200 374,400

lemon Princetown 24,960 pc 25 624,000

jar Novo 24,960 pc 35 873,600

Nature spring
Princetown 1,560 bottle 15 23,400
mineral water
Total Raw Materials 2,145,000.00
 Table 4.3 Projected Raw Materials

Production Supplies Requirements

Just as how important supplies are in administrative operations, supplies

are, in like manner, significant in production. Production supplies maintain

cleanliness, orderliness and keep the production process running. Supply

requirement for 2021 is tabulated in Table 4.4 followed by projected production

supply (Table 4.5), with 3% increase in total cost per year.

Table 4.4 Production Supplies

Description Source Qty Unit price Total cost

Medium-sized
Absolute 12 pck 40 480
Garbage Bag
Dishwashing
Absolute 12 pc 5 60
Sponge
Joy
Dishwashing Absolute 8 ltr 98 784
Liquid
1L Biogenic
Absolute 12 B 230 2,760.00
Alcohol
Safeguard
Absolute 6 Lltr 104 624
Hand Wash
40-Liter
Orocan Trash Prince 1 pc 105 105
Bin
Broomstick &
Prince 4 set 98 392
Dust Pan

Spatula spoon Prince 4 set 70 280

Measuring
Prince 6 set 75 450
cups
Apron Prince 6 pc 25 150
Reusable
Prince 12 pc 15 180
Hairnet
Medium-sized
Ordinary Toppers 100 pck 35 3,500.00
Paper bag
 Table 4.5 Projected Production Supplies

Water Consumption

Water is more needed when producing products than performing

administrative activities. The allocation for water consumption is shown in Table

4.6, 40% for administrative use and 60% for production with 1% increase per

year.

Table 4.6 Water Consumption Projections

Electric Consumption

The use of electricity is also projected in advance, having the same rate of

increase (1%), 65% is for administrative use and 35% for production. The use of

AC and other equipment in the receiving area makes administrative electric

consumption higher compared to electricity used in the production of goods.

Table 4.7 Electric Consumption Projection