FS Final 2

A FEASIBILITY STUDY ON THE ESTABLISHMENT OF
“BESTIE’S AVOCADO ICE CREAM”

IN DIPOLOG CITY
Presented to the Faculty of College of Business Education

St. Vincent’s College Incorporated
Dipolog City, Philippines
In Partial Fulfillment of the Requirements

For the Degree Bachelor of Science in Business Administration
Major in Marketing Management
By
JAN LLOYD S. TEE
ALPON NIÑO M. SARABIA
MISCHELLE J. CABANLIT
MARIBEL T. TULABING
JOSEPH ALLAN C. PATCHO
KYBELLE A. CAÑETE
PRECIOUS LARA D. NARVAEZ
December 2022
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APPROVAL SHEET
This feasibility study entitled: “THE ESTABLISHMENT OF BESTIE’S AVOCADO

ICE CREAM in DIPOLOG CITY” prepared and submitted by Jan Lloyd S. Tee
,Alpon Niño M. Sarabia, Mischelle J. Cabanlit, Maribel T. Tulabing, Joseph Allan
C. Patcho, Kybelle A. Cañete, Precious Lara D. Narvaez in partial fulfillment of the
requirements for the course FS 41 in Bachelor of Science in Business Administration
Major in Marketing Management, COLLEGE OF BUSINESS AND MANAGEMENT,
has been examined and is recommended for acceptance for ORAL EXAMINATION.
MRS. MARITES G. REFUGIO MBA, SPBE

Date Adviser
PANEL OF EXAMINERS
Approved by the Committee on Oral Examination with the grade of _____.
MRS.
Panel Member
MRS.
Chairperson
Accepted and approved in partial fulfillment of the requirements for the Degree of
Bachelor of Science in Business Administration major in Human Resources Development
Management.
DR. JOSEPH J. REFUGIO, CHP, DBE, LPT

Dean, College of Business Education
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DEDICATION
We would like to dedicate this study to all the persons who nurtured
our minds with knowledge and ideas to be able to fulfil this study. To our
beloved parents, guardian, friends and relatives who have been our constant
source of inspirations.
Despite of this pandemic, we would be able to finish this study. To our
classmates, and our loved ones who had always been there to support and
believe in us.
Above all, to our Almighty God, who loves us unconditionally. This
humble research is dedicated with much pride.
The Researchers
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ACKNOWLEDGEMENT
With boundless love and appreciation, we would like to extend our heartfelt
gratitude and appreciation to the people who helped us to complete our research
successfully.
First and foremost, we thank the Almighty God for giving us peace of mind and
for giving us knowledge to finish this research regardless of this Covid-19
Pandemic we are currently facing. We also thank him for giving us good health
that behind of our sleepless night, we still have enough strength to be more
productive in doing this research.
We would also like to thank Mrs. Marites Refugio, our research adviser that
despite of this time of pandemic, he shares his expertise, assistance, guidance,
and patience throughout the process of writing this research. Without his support,
suggestions, and encouragement, this research would not have been possible.
We also sincerely thanks our group mates, in spite of the time that we can’t meet
each other to discuss the research because of the protocol that we follow, still the
unending guidance of each other in providing the necessary details or
information needed throughout the completion of this research was so amazing.
We also want to express our gratitude to our friends and colleagues for sharing
the time and providing us necessary suggestions.
Lastly, we would like to thank our parents and family, whom have always been
there for us no matter where we are, for all unconditional love, supports, and
patience. Thank you for being so understanding and supportive. We have no
valuable words to express our thanks, but our hearts is still full of favor received
from every person. Thank you so much!
The Researcher
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EXECUTIVE SUMMARY
PROJECT TITLE : BESTIE’S AVOCADO ICE CREAM
PROPONENT : MR. LOESTER M. BERCASIO
PROJECT LOCATION : Quezon Ave., National Highway,
Brgy. Miputak, Dipolog City,
Zamboanga del Norte
OWNERSHIP : SOLE PROPRIETORSHIP
PROJECTED
INVESTMENT COST : ₱ 950,000.00
SOURCE OF FUNDS : PERSONAL SAVINGS ACCOUNT
RESEARCHERS : JAN LLOYD S. TEE

MARIBEL T. TULABING
JOSEPH ALLAN C. PATCHO
KYBELLE A. CAÑETE
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BACKGROUND OF THE BUSINESS
In this study, it shows and explained Location of the business, the Legal
Structure and Form of Ownership, its Mission and Vision, the Goals and
Objectives of the business, and the Product Description of Bestie’s Avocado Ice
Cream business. In this chapter, it basically shows the overview on why we are
doing this business.
ECONOMIC/ MARKET STUDY
A Market Study provides a demographic and economic overview of the
subject area to determine the overall feasibility of a new Bestie’s Avocado
business. The part of this study determines the extent to which products and
service be produced and also to determine if there is really an existing customer
or consumers of the proposed business and how also the business to cope up
with the existing and upcoming new entrant business to the market.
The researchers conducted research to the market through the use of
survey questionnaire through online, although we are in face to face considering
this time of pandemic, to determine its viability. The target market are basically,
the residents to which where the proposed business will be establish. It is also
presented in the marketing aspect the distribution of sample size as respondents
of the survey and the statistical survey analysis that is presented through a bar
graph. The company will be using tarpaulins, advertisements and fliers as a
promotion of the business.
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MANAGEMENT STUDY
The management study describes the form of business organization that
best fits for the proposed business, the organizational structure, the number of
personnel needed, their qualification, their compensations and the projected time
table before the project be implemented.
The proposed business is sole proprietorship which to be manage by Mr.
Loester M. Bercasio and this project will be establish at Quezon Ave., National
Highway, Miputak, Dipolog City, Zamboanga del Norte. This proposed business
will be composed of 1 manager, 1 cashier, 2 attendants that will serve as server
to the customer and 2 dishwashers. All of these employees will be compensated
accordingly and be given a mandatory benefits such as, SSS, PhilHealth and
Pag-ibig. They are also entitled for a 1 day break for each week as policy of the
management. The business will operated from 8:00 to 5:00 PM from Monday to
Sunday.
TECHNICAL STUDY
This chapter discusses the details of the formation of the business and
provides information that includes operating procedures or processes, the
proposed equipment and machineries, supply and where those supplies will be
bought. This study is properly studied by the researcher since this aspect is one
of the foundation of the financial statements.
FINANCIAL STUDY
The capital used to fund this proposed business is derived from the personal savings of
the proponent with a total of ₱ 900,000.00.The amount above will be used for all
expenses before and after the establishment of the business. The financial statements
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namely, Statement of Financial Position, Statement of Financial Performance and
Statement of Cash flows is also found in this aspect. Notes are also provided for
computation purposes.
SOCIAL AND ECONOMIC RESPONSIBILITIES
Every business has the primary purpose of obtaining profit from their
economic activities. Bestie’s Avocado Ice Cream will not just provide good quality
ice cream in different types, but it also provides employment opportunities to the
community and taxes to the government for the good of every human beings.
THE PROPOSED BUSINESS
Bestie’s Avocado Ice Cream is a new business process restaurant that will
be located at Quezon Ave., National Highway, Miputak, Dipolog City, but upon
reaching the location, it’s as though you’ve entered another world. The kiosk will
provides a retreat like no other casual elegance, soothing ambiance, and
different picturesque. It also offers a very affordable set of menu that could really
satisfy your cravings. Bestie’s Avocado Ice Cream is a sole proprietorship type of
business that provides an adequate employee training that can give proper
attention to the customers. The main objective of the business is to give the
satisfaction of the customers and bring customers to life. Whether you want to
meet friends or family to have more chitchats, any time, Bestie’s Avocado Ice
Cream wants to make your moments memorable.
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CHAPTER 1
DESCRIPTION OF
THE STUDY
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1.1 Introduction
Philippines is a tropical country and most of the Filipinos are fond of eating
cold foods and ice cream as one of their favorite dessert. Ice cream is very
popular in most countries. Not just children but, adults also enjoy eating ice
cream. It is a cause of happiness and refreshment. It is a highly treat for Filipino
families. From reunions and get together to singular indulgence and rewards.
The sweet of taste with soft ice cream that dissolve in the mouth, make everyone
feel happy.
Ice cream derived from earlier iced cream or cream ice, a frozen food,
typically eaten as a snack or dessert, usually made from dairy products, such as
milk and cream and often combined with fruits and other ingredients and flavors.
It is typically sweetened with sugar, condensed milk, and other sweeteners.
Typically, flavorings and colorings are added in addition to stabilizers. Now a day
trend of ice cream has been change to the old traditional home made in the
reason of taste and health.
That’s why we decided to come up with Bestie’s Avocado Ice Cream. It is a
new business process kiosk that will be located at Quezon Ave., National
Highway, Brgy. Miputak, Dipolog City, Zamboanga del Norte. With its healthy
ingredients that will surely enjoyed also by health conscious people craving for
sweet but healthy dessert. The location of the kiosk is very accessible and with
its cozy and relaxing environment, you can really find a stress-free environment.
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1.2 Background of the Study
Bestie’s Avocado Ice Cream is a sole proprietorship type of business that
gives employees proper and adequate training that will exceed customer’s
satisfaction in its products and services. This aims to provide affordable, yet tasty
and healthy kinds of ice cream with its pure avocado. Our home made avocado
ice cream is the cheapest yet healthy and delicious with very affordable delivery
service. There are hundreds and thousands of customers who would love to eat
ice cream but don’t have time to walk or drive to get it due to their busy
schedules, therefore, Bestie’s Avocado Ice Cream offers delivery service as it
will be extremely beneficial.
This study is designed to provide reliable data that demonstrates the
feasibility of setting up this ice cream kiosk that focused on its mission and vision
towards the success of the business operation.
1.3. Location
Choosing a perfect location for the business plays an important role in
increasing its profitability. Bestie’s Avocado Ice Cream believe that being near
to your target customer is not enough but, you also have to consider the property
prices that gives a big effect on business’ expenses, safety of the area, and
accessibility for customers and suppliers.
Bestie’s Avocado Ice Cream will be established in Quezon Ave.,Highway,
Brgy. Miputak, Dipolog City. This is particularly beside Katipunan Bank and this
area was known before as Ati-Atihan. It was decided to rent a lot to properly
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locate the kiosk, to have an enough space for parking area, and to owe a
surrounded amenity that would otherwise help attract business.
Figure 1.1 Bestie’s Avocado Ice Cream Actual Location
Figure 1.2 Actual Site
1.4 Statement of the Problem
The primary goal of this study is to see whether establishing Bestie’s
Avocado Ice Cream is feasible. Data will be gathered and based using a
research method and online survey to potential customers that is a resident of
our target location respondents particularly in the barangay of Galas, Sta.
Filomena, Miputak, Estaka, and Central.
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As a result, the following must be addressed:
1. What makes the product unique from others?
2. What are the variants being offered?
3. Is the business profitable or viable?
4. What are the policies being implemented by the business?
5. What are the contributions of the business to the customers, employees,
community, economy, and government?
1.5 Business Logo
Every business has a logo to represent its values and attributes in the
market and public but, not all the logos are capable of taking the business
effectively to the people. Design of a logo usually plays a major role in the
marketing of an organization and its business in the ever-competitive market.
Figure 1.3 Logo
The design of the logo basically shows its simplicity but how it brings to the
people’s mind the uniqueness in its selling proposition. The combination of the
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colors portrays the firmness of strength of each employee in where they exceed
each customer’s satisfaction by giving the best product offered.
1.6 Mission and Vision Statements
Mission Statement
Our mission is to make, promote and sell healthy, mouth-watering, all-natural
avocado ice cream to our valued customers and exceed their satisfaction in cold
dessert cravings.
Vision Statements
We strive to be the best ice cream provider in town by serving the healthiest and
not-so-common types of ice cream to our valued customers.
1.7 Goals and Objectives
 To present a high level of quality in its product line.
 To maintain and grow relationships with customers to generate new and
repeat sales.
 To innovate new product offerings that will differentiate us from our
competition.
 To make profit in the most cost-effective way.
 To source natural ingredients to promote healthy living.
1.8 Business Proponent
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The business will be financed by Mr. Loester M. Bercasio, currently a
Secondary Principal at Sirawai National High School, residing at Siocon,
Zamboanga del Norte, and has a studio unit at Doňa Justina Heights, Gulayon,
Dipolog City, Zamboanga del Norte. The proponent is willing to put up ₱
500,000.00 which will be used to acquire resources, ingredients, equipment and
machineries, rental fees for the site, use for promotional materials, and payment
for permits, licenses, and other needed fees to operate the business legally.
Figure 1.4 Proponent’s Profile
1.8.1. Proponent’s Profile
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Name : Loester M. Bercasio
Date of Birth : December 9, 1983
Civil Status : Single
Sex : Male
Height : 5’6
Weight : 112KG
Religion : Roman Catholic
Citizenship : Filipino
Home Address : Poblacion, Siocon, Zamboanga del Norte
City Address : Doña Justina Heights, Gulayon, Dipolog City
Cell Phone Number : 0927-830-2392
Email Address : loester.bercasio01@deped.gov.ph
Occupation : Teacher
Position : School Principal
Employment Address: Sirawai, Z.D.N(SIRAWAI NATIONAL HIGH SCHOOL)
1.9. Product/ Service Description
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Bestie’s Avocado Ice Cream main objectives is the attainment by all customers of
the highest possible level of health and this study contributes to the production of
ice cream with contents that are healthy. The following are the products offered:
a. Gelato - The term “gelato” actually means ice cream in Italian. It is richer,
denser, and smoother. It is made from a custard base of milk, cream, and
sugar. It have more milk, and less cream. It also doesn’t usually contain
egg yolks the way that other type of ice cream does.
b. Rolled Ice Cream – It is a frozen dessert that originated in Thailand, often
referred to as “Thai rolled ice cream or stir-fried ice cream. It is a type of
swirls ice cream clustered together in a small cup, covered in colorful
toppings specifically, with fresh fruits.
c. Soft-Serve - It is an iced cream and milk that is frozen to a softer
consistency instead of a solid block. Just like other type of ice cream, it is
made of milk, sugar and pure flavouring. Just like other businesses, we
are not just on purely on avocado but, in soft-serve, we offer different
flavor to mix with our avocado ice cream. It have a low fat cream content
and low fat ice milk.
d. Ice-Popsicle – It was Frank Epperson who created the first popsicle, ice
pop, way back in 1905. The Bestie’s Avocado Ice Cream recipe of Ice
Popsicle made with wholesome ingredients for a refreshing, creamy,
sugar-free treat on summer days. This is healthier than any other
popsicles, containing down-to-earth ingredients.
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e. Sherbet – It is similar to sorbet, a fruit-based frozen dessert, but it does
contain dairy. It is made with fruit juice, milk or cream, egg whites, and in
some cases, gelatin. It is defined as a frozen dessert that contains no
more than 1-3% milkfat.
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CHAPTER II
MARKET STUDY
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2.1. Introduction
Market study is important in marketing feasibility study as it will help the
owner to understand their target market, identify consumer problems and
pinpoint realistic competitors. It’s the simplest way for entrepreneurs to keep up
with market trends and maintain a competitive edge by sizing up your business
opportunity.
Market study can be carried out at various stages of a business life cycle,
from pre-launch and beyond. Having a greater understanding of your
marketplace from the very start will enable you to create a sound business
strategy to establish and grow your business into one that’s better than
competition.
2.2. Target Market
Before making the marketing study, the researchers conduct a random
survey of people living in the city of Dipolog. The Slovins’ formula was being
used in getting the number of sample. The sample size of 393 is proportionately
distributed to each barangays as follows:
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BARANGAYS TOTAL POPULATIONS SAMPLE
(Pro-rata)
Galas 19, 508 169
Miputak 7,667 67
Central 1,735 15
Sta. Filomena 8,475 74
Estaka 7, 806 68
TOTAL 45,191 393
N = Total Number of Population

e = margin error
n = sample number
Slovin’s Formula:
N
n= 2
1+ ( N ) ( e)
Given:
N = 45,191
e = 5%
n = 45,191/ [1 + 45,191 (0.05)²]
n = 393
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2.3. Demand/Supply Analysis
In market study, supply and demand analysis, is the study of how buyers
and sellers interact to determine transaction prices and quantities. As we will see
prices simultaneously reflect both the value to the buyer of the next unit and the
cost to the seller of that unit.
Demand, in economics, is the willingness and ability of consumers to
purchase a given amount of a good or services at a given price. Supply, on the
other hand, is the willingness of sellers to offer a given quantity of a good or
service for a given price. The demand and supply model is useful in explaining
how price and quantity traded are determined and how external influences affect
the values of those variables. Buyers’ behavior is captured in the demand
function and its graphical equivalent the demand curve. This curve shows both
the highest price buyers are willing to pay for each quantity, and the buyers are
willing and able to purchase at each price. Seller’s behavior is captured in the
supply function and its graphical equivalent, the supply curve. This curve shows
simultaneously the lowest price sellers are willing to accept for each quantity and
the highest quantity seller are willing to offer at each price.
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2.3.1. Demand Analysis
DEMAND ANALYSIS PER PRODUCT CAT-

EGORY
250
200
150
100
50
0
GELATO ROLLED ICE SOFT SERVE ICE POPSICLE SHERBET
CREAM
The demand of Bestie’s Avocado Ice Cream will be generated mostly from
the residents of Dipolog City, Zamboanga del Norte, particularly from the
barangay of Galas, Estaka, Central, Miputak, Sta. Filomena with a total
population of 45,191 and sample size of 393, we will able to determine the
demand based on the frequency of the customers preferences.
The number of respondents who will avail the Gelato in a medium size is
97, while on a large size is 21. Moreover in Rolled Ice Cream, the number of
respondents who will avail the medium size is 173 while on the large size is 25;
in Soft Serve, there are 187 respondents who will avail the medium size, while 29
of respondents avail the large size; 206 respondents avail the medium size of
popsicle while 25 of them prefer the large size; and 94 of respondents prefer
medium size of Sherbet while 18 of them prefer the large size.
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2.3.2. Supply Analysis
In Bestie’s Avocado Ice Cream, the first priority of it is to prepare all the
materials and equipment needed to operate the business to avoid problems and
failures. The supply of business that are needed to be use is based on the
number of demand of the potential customers.
1. Have you tried buying ice cream?
CHOICES NUMBER OF PERCENTAGE TOTAL
RESPONDENTS POPULATION
YES 393 100% 45,191
NO 0 0 0
TOTAL 393 100% 45,191
Percentage of Respondents
YES
100%
The pie graph shows that all of the respondents agreed that they have tried to
buy ice cream. This is a total of 393 in sample size and equivalent of 45,191 in
total number of respondents.
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2. What type of ice cream do you prefer to purchase?
GELATO 190 48.35% 21,850
SOFT SERVE 95 24.17% 10,923
ICE POPSICLE 25 6.36% 2,874
ROLLED ICE 45 11.45% 5,174
CREAM
SHERBET 38 9.67% 4,370
TOTAL 393 100% 45,191
NUMBER OF RESPONDENTS ON THEIR

PREFERENCE IN TYPE OF ICE CREAM
SHERBET
10%
ROLLED ICE CREAM
11%
ICE POPSICLE GELATO

6% 48%
SOFT SERVE
24%
The pie graph portrays that there are 190 total number of respondents who prefer
to choose the type Gelato in Ice Cream; 95 of them prefer to choose Soft Serve
type of Ice Cream; 25 number of respondents prefer to buy Ice Popsicle; while 45
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of them chose the Rolled Ice Cream type; and 38 number of respondents prefer
to choose Sherbet type of Ice Cream. Therefore, out of 393 respondents, Gelato
is the most preferred type of Ice Cream.
3. How much do you usually spent?
50 PESOS 285 72.52% 32,773
70 PESOS 45 11.45% 5,174
80 PESOS 7 1.78% 804
100 ABOVE 56 14.25% 6,440
TOTAL 393 100% 45,191,
Number of Respondents on How much they

usually spend
100 above
14%
80 pesos
2%
70 pesos
11%
50 pesos
73%
The respondents have 4 choices on what price they prefer to buy ice cream.
There are total of 285 respondents equivalent to 73% in total population prefer to
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buy ice cream in 50 pesos; 56 respondents with 14% of total population prefer to
buy ice cream in 100 pesos above; 45 respondents with 11% in total population
buy ice cram in 70 pesos; 7 respondents in 2% buy ice cream in 80 pesos.
Therefore, most of the respondents prefer to buy ice cream in price of 50 pesos.
4. Where do you prefer to purchase your ice cream at regular basis?
Convenience 245 62.34% 28,172
Store
Grocery Store 50 12.72% 5,748
Creamline Ice 35 8.91% 4,027
Cream Depot
Aice Ice Cream 63 16.03% 7,244
TOTAL 393 100% 45,191
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Preferred Ice Cream Provider
Aice Ice Cream
16%
Creamline Ice Cream

Depot
9%
Convenience
Store
62%
Grocery Store
13%
It portrays the preferred Ice Cream provider of the respondents. It shows that out
of 393 total number of sample size of respondents, there are 245 or 62% of the
total respondents preferred to buy ice cream in convenience store. The
convenience store is the preferred ice cream provider of the potential
respondents.
5. How often do you purchase ice cream in your chose provider?
DAILY 265 67.43% 30,472
WEEKLY 56 14.25% 6,440
SOMETIMES 44 11.20% 5,061
RANDOM 28 7.12% 3,218
TOTAL 393 100% 45,191
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How often do they purchse ice cream in
their chosen provider?
RANDOM
7%
SOMETIMES
11%
WEEKLY
14%
DAILY
67%
The pie graph portrays that out of 45,191 total number of respondents, there are
68% total number of respondents with an equivalent of 265 and 30,472 in total
population prefer to buy ice cream in a daily basis.
6. What are your reasons why you patronize their product?
TASTE 63 21.12% 9,544
AFFORDABILITY 260 66.15% 29,894
VARIANTS TO 42 10.69% 4,831
CHOOSE
AMBIANCE OF 8 2.04% 922
THE AREA
TOTAL 393 100% 45,191
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NUMBER OF RESPONDENTS CHOSEN REASONS
WHY THEY PATRIONIZE THEIR PRODUCT
VARIANTS TO CHOOSE AMBIANCE OF THE AREA

11% 2%
TASTE
21%
AF-
FORAD-
ABILITY
66%
The pie graph shows why the respondents prefer to patronize the product of their
chosen provider. There are 66% with an equivalent of 260 respondents with a
total of 29,894 total population chose affordability over taste, variants to choose,
and ambiance of the area.
7. If Bestie’s Avocado Ice Cream will be open at Quezon Ave., Brgy. Central,
Dipolog City, are you willing to consider our products?
YES 387 98.47% 44,500
NO 6 1.53% 691
TOTAL 393 100% 45,191
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WILLING TO CONSIDER THE BESTIE'S AV-
OCADO ICE CREAM PRODUCTS
NO
2%
YES
98%
The pie graph portrays that there are 98% in equivalent 44,500 would like to
consider Bestie’s Avocado Ice Cream if ever it will operate. On the other hand,
2% of them in equivalent of 691 total number if respondents will not consider the
business.
8. Bestie’s Avocado Ice Cream offers the following products with variants of
types and with the presence of pure avocado. Check the following
products that you prefer to buy.
NUMBER OF RESPONDENTS ON
THEIR PREFER TYPES AND SIZES OF
ICE CREAM
MEDIUM LARGE
173 187 186
92
54
18 25 29 20 18
GELATO ROLLED ICE SOFT SERVE ICE POPSICLE SHERBET

CREAM
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The table shows the preference of the respondents based on the size of
each type of ice cream offered. In Gelato type of ice cream offered. In
Gelato Type of Ice Cream, there are 92 of respondents preferred to buy in
medium size, and 18 of respondents preferred to buy the large size. In
Rolled Ice Cream, there are 173 respondents who preferred to purchase
in medium size and 25 of them preferred to buy in large size. 187
respondents prefer to buy Soft Serve in medium size while 29 of them
preferred to buy in large size. In Ice Popsicle there are 186 of them
choses to buy in medium size while 20 of them choses large size. In
Sherbet type of ice cream, 54 of respondents choses in medium size,
while 18 of them choses the large size.
9. If we are going to open our Bestie’s Avocado ice Cream from Monday to
Sunday, would you consider it as your ice cream provider?
YES 389 98.98% 44,730
NO 4 1.02% 461
TOTAL 393 100% 45,191
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RESPONDENTS WHO WILL CONSIDER
BESTIE'S AVOCADO ICE CREAM AS
PROVIDER
NO
1%
YES
99%
The pie graph shows that out of 45,191 respondents, there are 44,730 in
equivalent of 99% who will consider Bestie’s Avocado Ice Cream as their Ice
Cream provider.
10. How often would you like to buy our products?
CHOICES NUMBER OR PERCENTAGE TOTAL
RESPONDENT POPULATION
DAILY 279 70.99% 32,081
WEEKLY 40 10.18% 4600
SOMETIMES 48 12.21% 5,518
RANDOM 26 6.62% 2,992
TOTAL 393 100% 45,191
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NUMBER OF RESPONDENTS ON HOW
FREQUENT THEY WILL BUY OUR
PRODUCTS
RANDOM
7%
SOMETIMES
12%
WEEKLY
10%
DAILY
71%
The pie graph shows that out of 393 sample number of respondents, there are
279 total number of respondents with an equivalent of 70.99% in total population
with 32,081 total number. On the other hand, 7% of the total population in
equivalent to 2,992 chose random in buying ice cream.
2.4. SWOT ANALYSIS
SWOT Analysis is a compilation of your company’s strengths,
weaknesses, opportunities, and threats. Its primary objective is to help
organizations develop a full awareness of all the factors involved in making a
business decision.
A SWOT Analysis is a planning process that helps your business
overcome challenges and determine what new leads to pursue. It’s wise to
perform a general SWOT Analysis just to check on the current landscape of your
business so you can improve business operations as needed. The analysis can
show you the key areas where your organization is performing optimally, as well
as which operations need adjustment.
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To analyze the industry, we used SWOT Analysis:
STRENGTH WEAKNESSES
 Varieties of flavours available.  Expensive Price.
 Quality of the Products Used.  Low brand awareness.
 Keeping up with trends.  Warehouse is small to expand
 Great customer service. and produce product.
 Each availability and different  Strong brand image is not yet
options. created.
 Do not commercially
advertise.
OPPORTUNITIES THREATS
 Positive development and  Negativity associated with sugar
demand of ice cream in the and dairy.
entire Zamboanga del Norte.  Lot of competitors.
 Provides stable market position  Seasonal and weather effects.
in comparison to other ice cream  Maintaining good quality and
types. timely processes in perishable
 Positive forecasts on private category.
consumption of future  Increases in price inputs can
customers. cause upward pricing.
 Provides the possibility to order
fat-free/ sugar-free ice cream.
 Introduction to healthier options
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2.5. COMPETITIVE EDGE
Bestie’s Avocado Ice Cream competitive edges are:
New business offerings.
The owners through understanding of opening and running a business
offers an innovative way of serving the customers.
The entrepreneur has a broad range of understanding when it comes to
handling, managing, and operating the business.
The entrepreneur has the ability to develop new approaches that
represents a leap forward in a particular area.
Delivering products and services that are high quality in the eyes of
customers.
2.6. MARKETING STRATEGIES
2.6.1. Marketing Programs
One way of marketing new business is through advertisement. The primary
purpose of advertising is to inform the consumers about what the business offers.
Advertising finds justification only in its role of telling the customers what his/her
right to know, which is about the company’s product, because he is paying the
price that the company asks for. Thus, Bestie’s Avocado Ice Cream will advertise
to the customers what is really its products and why it’s different from the existing
chicken meal. Ultimately, Bestie’s Avocado Ice Cream will use the following
mediums for advertisement:
 Tarpaulins > Flyers
 Radio > Leafleats
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2.6.2. Positioning Strategy
Our main focus is to increase customer awareness of our business. The
business will direct all the tactics and programs towards the goal of
explaining who and what we are all about. Bestie’s Avocado Ice Cream
will price its ice cream, to keep our standards high and to execute the
business concept by the use of the “word-of-mouth” which will be the main
force in exposing our Bestie’s Avocado Ice Cream business.
2.6.3. Promotion Strategy
It is necessary to promote the business service especially in getting and
attracting potential customers in public. Bestie’s Avocado Ice Cream decided to
choose this few ways in promoting the business.
The business will be giving fliers and leaflets to nearby places, posting
tarpaulins most especially in areas where our business will be located,
proclaiming through radio advertisements, and through online pages.
2.6.4. Sales Strategy
Since this is a start-up business, Bestie’s Avocado Ice Cream will be
giving some opening promos within 1 week and each customer will receive 1 free
ice cream with on their preferred type.
2.6.5. Pricing Strategy
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Bestie’s Avocado Ice Cream uses the Value-related pricing strategy. It is a
pricing strategy that is customer-driven, because it is based on the customers’
perception of the value which considered before the product is made. It is
therefore a research based on pricing strategy. This particular notion can be
supported by our survey questionnaire in which we include the question “By how
much value (price) would the customer like to purchase our offered type of ice
cream menu?”
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CHAPTER III
MANAGEMENT
STUDY
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3.1. Introduction
The management study discuss the name of the firm, the type of the
organization, the vision and mission, organizational goals, organizational chart,
manpower resources, job description and qualifications, hiring and recruitment of
employees, policies and regulations, project schedules and management
feasibility.
3.2. Name of the Business
Bestie’s Avocado Ice Cream is a type of business that promotes the
tastiest and healthiest ice cream by using pure avocado with less sugar as one of
their ingredients. The business name is formulated because of the strong
relationship of friendship of the researchers which lead into a positive outcome in
decision making in choosing the best business to be establish.
3.3. Type of Organization
The Bestie’s Avocado Ice Cream is a sole proprietorship, which is one of
all legal arrangement, owned, controlled, and managed by a single individual. It
reaps the financial rewards and is responsible for all risks and liabilities while
conducting the business.
3.3.1. Advantages of Sole Proprietorship:
 It has complete responsibility in terms of making business decisions. It
results faster decision-making for the business as there is no need to
consult multiple parties for every minor issue.
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 A sole proprietor can keep all business-related information to make
themselves as the business’s only decision-maker.
 It has complete ownership of profits arising from business operations.
They are not obliged to share profits with anyone else.
 Since a sole proprietor is responsible for both risks and rewards of their
business, even a minor success can give a greater feeling of pride and
satisfaction than other business forms.
3.3.2. Disadvantages of Sole Proprietorship:
 It is a form of business that runs mainly on personal savings and
borrowings made by its owner. Lack of adequate finances can become an
obstacle in growing the business.
 The continuity of this form of business depends solely on the owner’s well-
being. In case of death, insolvency, imprisonment, and other instances, it
can shut down if there is no successor of heir to continue the business.
 In sole proprietorship, if the proprietor cannot pay debts arising out of
business from its assets, his personal property is also at stake.
 In sole proprietorship, the proprietor has to perform most of all the
activities related to business like purchase, client relationship, sales,
marketing, accounting, and business expansion.
3.4. Administrative Policies
Policies plays an important role in business. It brings uniformity to
corporate operations, and reduce the risk of an unwanted event. Policies
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organize employees to behave in certain ways, which lets the business achieve
its objective more efficiently. Sometimes, policies help to achieve operational
objectives to develop new product, or how to handle customers concerns.
3.4.1 Code of Conduct
a. Attendance Policy
Timely and regular attendance is an expectation of performance for all
Bestie’s Avocado Ice Cream employees. To ensure adequate staffing, positive
employee morale, and to meet expected productivity standards throughout the
organization, employees will be accountable for adhering to their workplace
schedule. For instance, if an employee is unable to meet this expectation, he/she
must obtain approval from their superiors in advance of any requested schedule
changes. This approval includes requests to use appropriate accruals, as well as
late arrivals to or early departure from work.
b. On Company and Employee’s Interest
Bestie’s Avocado Ice Cream set this as one of the company policy to use
it to outline procedures for employees when a possible conflict exists between
their own personal interests and the interests of the organization. This policy sets
boundaries for employees where possible conflicts may arise in order to protect
the business and prevent clashes between the business and its employees.
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c. Dress Code
A dress code is a part and parcel of Bestie’s Avocado Ice Cream
business. It has been designed to set the standards of discipline and create an
appropriate image of a professional employee. There are numerous reasons why
dress code is usually part of company’s policy, and it is to identify a position.
Wellbeing or even protect an employee who works at the harmful environment.
The way how an employee dressed usually tells customer, or even co-worker
who you are and what you have been doing at the company. Bestie’s Avocado
Ice Cream believe that appropriate dress together with the basic etiquette is
associated with professionalism. Bestie’s Avocado Ice Cream require all
employees to wear their respective uniforms during business hours. Failure to do
so will have sanctions serve by the head of the organization.
d. Safety Procedures
The most important concept of business’ policy is to remember that
business’ proprietor is responsible for its own safety and the safety of others.
Most safety practices are common sense. Unfortunately, they can be forgotten or
overlooked unless you make safety practices habit or an instinct. Bestie’s
Avocado Ice Cream follow workplace safety and healthy rules. It always assures
to participate in required safety training. It also advices all the employees to
report hazardous conditions to management so they can take swift corrective
action. Lastly, it also advices the employees to report job-related accidents,
injuries, and illness to management to get medical attention.
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e. Substance Abuse
Bestie’s Avocado Ice Cream set substance abuse as one of the business’
policy to forbid employees from using alcohol, drugs, or tobacco products during
work hours, on business property, or at work functions. This is to avoid
customers’ complaint on any unwanted smells coming from the employees’ that
will also affect the production of the product.
3.5 Recruitment Process
In Bestie’s Avocado Ice Cream, the manager or the owner will be responsible for
the end-to-end recruiting process. The process of the full life cycle of a
recruitment follows the business’ need to fill a gap, find compatible employee to
fill the job position, and identifying the best job applicant to contribute to
business’ success.
1. Human Resource Planning – This is when a business settles on the
number of employees they are looking to hire and the skill sets they
require of these employees. The business must then compare their needs
to the expected number of qualified candidates in the labor market.
2. Recruitment – During this phase, the Bestie’s Avocado Ice Cream tries to
reach a pool of candidates through job postings, job referrals,
advertisements, and others. Candidates who respond to these measures
then come in for interviews and other methods of assessment. Employers
will conduct background checks of prospective employees, and check the
preferences.
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3. Employee Selection – Lastly, the employer evaluates information about
the pool of applicants generated during the recruitment phase. After
assessing the candidates, the employee then decides which applicant will
be offered the position.
3.5.1 Job Legal Requirements
 Curriculum Vitae/Resume/Biodata
 Application Letter
 Medical Laboratories Results
 Drug Test
 X-Ray
 Urinalysis
 Feces
 And Other important Laboratory Tests
 Medical Certificate
 Vaccination Card
 Barangay Clearance
 Police Clearance
 NBI
 At least High School Graduate
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3.6. Organizational Structure
Figure 3.1 Bestie’s Avocado Ice Cream Organizational Chart
3.7. Job Responsibilities
 Owner/ Manager
Supervise and monitor the work of administrative staff.
Implement and maintain procedures or office administrative systems.
Ensures that health and safety policies are up to date.
Deal with correspondence, complaints and queries.
Organizing meetings and managing database.
Process invoices and manage office budgets.
Maintain good relationships with employees.
Monitor business resources.
Review financial reports to improve budgets and annual operating costs.
Research on marketing and industry trends.
 Cashier
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Receive payment by cash, check, debit and credit cards.
Issue receipts to customers.
Greet customers cheerfully as they enter the store or approach the
register, ensuring all their needs are met.
Count money in cash drawers at the beginning of shifts to ensure that
amounts are correct and that there is adequate change.
Maintain clean and orderly checkout areas.
Establish or identify prices of goods, services or admission, and tabulate
bills using calculators, cash registers, or optical price scanners.
Calculate total payments received during a time period, and reconcile this
with total sales.
Compute and record totals of transaction.
Compile and maintain non-monetary reports and records.
Offer customers carry-out service at the completion of transaction.
 Attendants
Introduce the products offered.
Answers customer inquiries.
Take orders.
Serve the orders.
Resetting tables for the next service.
Maintaining premises clean.
Perform general and routine maintenance services.
Provide excellent qualitative services to customers.
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Ensure stimulatingly pleasant kiosk experiences to customers.
Ability to prepare the product in an efficient and effective way.
 Dishwashers
Washing and disinfecting kitchen floors and surfaces.
Removing kitchen wastes.
Keeping kitchen clean and tidy.
Washing glassware and other utensils use during the production of
product.
Report any sanitation or janitorial issues to management.
Review work procedures, and operational problems in order to determine
ways to improve service performance, and safety.
Must possess the ability and desire to minimize waste and misuse of
supplies and equipment.
Dispose all waste and trash in accordance with established Health
Department regulations.
Maintains excellent customer service and positive attitude towards
customers, and co-workers.
Must be able to follow basic safety procedures due to exposure to
hazardous chemicals.
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3.8. Salary and Basic Deductions
Table 3.1 Basic Salary and Deductions (Monthly Computation)
Note:
The salary will be given every 15th and 30th day of the month.
In 1-15th cut-off, only PAG-IBIG and Philhealth premium deductions will be
deducted. On the other hand, in every 16 th-30th day of cut-off, only SSS
premium deduction will be deducted.
If the government will increase the minimum wage of the region, the salary
adjustment must be subject for approval and it depends on the overall
performance evaluation. Not automatically given.
3.9. Benefits
SSS – The Philippine Social Security System, is a state-run, social
insurance program in the Philippines to workers in the private,
professional, and informal sectors. SSS is established by virtue of
Republic Act No. 8282 in 1997. The SSS provides long-term and short-
term benefits to members and/or beneficiaries, subject to qualifying
conditions. Benefits are closely linked to contributions, with the minimum
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pension guaranteed. Higher contribution amount and longer contribution
service translate to higher benefits to meet future needs. The SSS
extends loan privileges to members. For salary loan, the loanable amount
is based on the member’s contribution amount and service. The SSS also
offers direct housing loan exclusive to Filipinos, subject to qualifying
conditions.
Home Development Mutual Fund (PAG-IBIG) – This is more popularly
known as PAG-IBIG, a Philippine government-owned and controlled
corporation under the Housing and Urban Development Coordinating
Council responsible for the administration of the national savings program
and affordable shelter financing for Filipino employed by local and foreign-
based employers as well as voluntary and self-employed members. It also
offers to its members, short-term loans and access to housing programs.
Philippine Health Insurance Corporation (PHILHEALTH) – Established
in 1995, Philhealth aims to financially help Filipinos with their medical
expenses. Contributions made by members and funding from both local
and national governments enable Philhealth to operate and aid its
contributing members. The government requires all employees to become
Philhealth members. Self-employed individuals also called voluntary
members can also apply. Philhealth works like an insurance company
except that is mandated by the government. The agency can help cover
your medical bills or parts of it. However, there are eligibility requirements
you must meet before you can enjoy Philhealth benefits.
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3.10. Working Schedule
Table 3.2 Working Schedule
Note:
 The Owner/Manager must be at the business location atleast 7:00 in the
morning for the preparation and checking of resources to be used in
business operation, to check the safety of the area, to prepare the cash for
bank deposit, and to assure and re-check the previous day transaction
reports.
 Cashier will be off every Saturday. Automatically, the Owner/Manager will
do the Cashiering.
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 On the other hand, The Manager will be off every Sunday, so the Cashier
will be the one to supervise the whole day business operation.
 Dishwasher 2 and Attendant 2 will be off on Wednesday.
 Dishwasher 1 and Attendant 1 will be off on Thursday.
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3.11. Gantt Chart
S F
F
E N D E
E A O J
P O E B
B M A U C A
J J T V C R
R A P M G T N
U U E E E U
ACTIVITIES U R R A U O U
N L M M M A
A C I Y S B A
E Y B B B R
R H L T E R
20 E E E Y
Y 20 R Y
23 20 R R R
20 20 23 20
23 2
20 23 23 23 20 20
20 20 20 0
23 23 24
23 23 23 2
4
Brainstorming
Feasibility study/ collecting
information
Fund sourcing
Building an establishment
Purchasing of equipment
Registration of permits and
licenses
Hiring employees/
workers
Start of operations
Gantt Charts are immense and gives a tool for project managers to make
important decisions. The business may span over several weeks, months or
even years, and tasks in that project are dependent upon each other. You cannot
start some of the tasks unless the previous ones in the queue are completed.
Gantt charts are used to analyze complex projects with numerous task. It is a
pictorial view of the business and helps you to manage your business with
efficiency and effectiveness.
Table 3.3 Gantt Chart
1. Brainstorming. A combination of different idea to form a one concept.
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2. Feasibility study/collecting information. This includes the gathering data by
conducting surveys and getting information from other establishments.
3. Fund sourcing. Finding a proponent that can provide a capital in engaging
business.
4. Business location. Putting up the business close to the target market for
productivity and easy exposure to the consumers.
5. Building an establishment. Assuring that it is built with strong foundation and
has a convenient place for the ambiance of the customers.
6. Purchasing of equipment. Choosing the best quality of materials and equipment
to sustain the business operation. These includes; machines, supplies, and etc.
7. Registration of permits and licenses. For authentication, legality, the business
should be registered to the authorized government.
8. Hiring employees/workers. Posting information for job hiring to attract those
persons who are qualified and willing to submit themselves to the required job.
9. Start of operations. This is when the operations of the business begin. The
business will start to operate on June 2024 and so on.
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CHAPTER IV
TECHNICAL STUDY
4.1. INTRODUCTION
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The technical study discusses how the products are to be produced, when
these products are to be produced, how much it will cost to produce the products,
where to produce the products and what technology to be used.
The technical aspect helps to determine the capacity of the project. The
technical study will provide information in service activity and the raw materials to
be used in providing activity this product as well as their resources. It is also
determine the utilities and equipment to be acquired in showing the location and
layout of the project.
4.2. Product Description
Bestie’s Avocado Ice Cream provides affordable product and services to
the customers. A product and services that’s in a total quality, with an affordable
prices, and primarily focused on consumer satisfaction. Bestie’s Avocado Ice
provides the following products:
4.2.1. GELATO
Gelato is the richer, denser, and smoother relative to American ice cream.
In fact, the term gelato actually means ice cream in Italian. In Italy, frozen
desserts date back thousands of years, but it wasn't until the Renaissance that
gelato, as we know it today, became popular. Similar to ice cream, gelato is
made from a custard base of milk, cream, and sugar. The difference lies in the
proportions of each with gelato having more milk (and less cream) compared to
ice cream. Gelato also doesn't usually contain egg yolks the way that ice cream
does.
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Figure 4.1. Gelato Ice Cream
Along with these different ingredients and proportions, gelato is also made
in a distinct way. Italian gelato is often described as being dense. This comes
from the process in which it is churned, at a much slower speed compared to ice
cream. Once the gelato is churned, it's stored and served at a slightly warmer
temperature that's not completely frozen.
4.2.2. ROLLED ICE CREAM
Ice Cream Rolls have been around since 2009 and were only made in
Thailand because it wasn’t popular then and it was made by only mixing a few
ingredients together with fruits and candies. Which is how they got the alias “Thai
Ice Cream”. This type of Ice Cream was sold by only a few vendors even
because it was not popular at the time. It was after a few years when Rolled Ice
Cream started becoming popular in countries outside of Thailand.
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Figure 4.2. Rolled Ice Cream
In Rolled Ice Cream type, you create the Rolled Ice Cream you want to eat. It’s
then up to you if do you want it filled with chocolate; chocolate syrup, cake,
cookies, chips and then some coffee. So, you can definitely have that freshly
made in front of your eyes in under 5 minutes.
Even though it bears some similarities to Cold Stone There are some key
differences. Cold Stone used pre-made Ice Cream and just added the inclusions.
However, with Rolled Ice Cream everything is made before your eyes.
4.2.3 SOFT SERVE
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Soft serve is different from traditional ice cream in a number of ways,
beginning with the fact that it often has greater overrun than even economy ice
cream. As a result, soft serve tends to be especially light and airy. These treats
are usually created without the eggs that make hand-dipped varieties of ice
cream creamy, relying on other stabilizing ingredients.
Figure 3. Soft Serve Ice Cream
Soft serve ice cream is actually the exact same thing as ice cream. They
contain all of the same ingredients, but the machine that is used to make soft
serve ice cream keeps it soft, with a smoother texture. The machine that churns
soft serve ice cream incorporates air as it churns, more air than is found in hard
ice cream.
4.2.4. ICE POPSICLE
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A freezie or a freeze pop is a water-based frozen confection similar to
an ice pop. It is made by freezing flavored liquid such as sugar water, fruit
juice or purée inside a plastic casing or tube, either round or flat. Since freezies
come in plastic sleeves, unlike popsicles, they do not require refrigeration. They
also do not need to be frozen as solidly as a popsicle and can have a
consistency similar to that of a slushie. Freezies are sold in a variety of flavors,
including cherry, orange, lemon-lime, banana, watermelon, cream soda, blue
raspberry, and grape.
Figure 4.4. Ice Popsicle
4.2.5SHERBET
Sherbet can be made with fruit juice, puréed fruit or both. The amount of
dairy product in sherbet is low compared with other frozen desserts. Whereas ice
cream will contain at least 10 percent butterfat (often as high as 20 percent),
and gelato between 4 and 8 percent butterfat, sherbet contains only 1 to 2
percent butterfat.
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Figure 4.5 Sherbet
4.3. PRODUCTION PROCESS
4.3.1. GELATO
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 Ingredients
 cups whole milk
 4 egg yolks
 1 vanilla bean
 1 cup sugar
 2 cups perfectly ripe avocado cut in about 1/2" cubes
 juice from 1 large lemon
 1 cup heavy cream
 Procedure:
1. Cut a slit down the vanilla bean. Put it in a saucepan and add the milk.
Bring to a simmer, then turn off the heat and let it cool / infuse for at least
30 minutes, until the milk is at least cooled to room temp (if you have
something to do you can stick it in the fridge and continue later)
2. Take the vanilla bean out and use a paring knife to scrape out all of the
little seeds - put those back into the milk. Add the pod back in too - don't
want to waste one iota of that great flavor. Whisk in the egg yolks and
sugar, then gently bring it back to a simmer - whisking right along - until a
thick custard forms. Cool this again - once it's cool enough put it in the
fridge to chill.
3. Measure your avocado then squeeze the lemon over. Put it in the blender
with the cream, then get the custard out. Fish out that vanilla bean and
scrape off the custard - finally, sadly discard it. Add the custard into the
blender too and blend the whole thing until it is very smooth.
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4. Freeze according to your ice cream maker's directions. When it first
comes out it will be like soft serve, you can put it in a container in the
freezer to firm up a bit if you like.
5. Serve! It's rich so try not to eat TOO much. Good luck with that.
4.3.2. Soft Serve
 Ingredients
 2 avocados
 1 cup coconut milk or heavy cream
 1/4 cup sweetener of choice
 1/2 tsp pure vanilla extract
 optional Chocolate Truffles
 optional 1/4 tsp pure peppermint extract (more flavor ideas are listed
above)
Procedure:
1. Be sure to start with ripe avocados.
2. Scoop out avocado flesh.
3. Blend with the cream or coconut milk (canned full-fat coconut milk),
sweetener, vanilla, and optional ingredients.
4. Now you can either transfer to an ice cream maker and churn according to
manufacturer's directions or transfer to a bowl, cover, and freeze for an
hour or two until firm enough to scoop out.
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5. If desired, portion into avocado shells and place a chocolate truffle in the
middle.
4.3.3. Ice Popsicle
 Ingredients
 2 ripe avocados seeded and peeled
 ¾ cup of coconut cream
 ¼ cup almond milk
 7 onces coconut condensed milk
 ¼ cup unsweetened coconut flakes optional
Procedure
1. Place the avocado, coconut cream, almond milk, and coconut condensed
milk in the jar of a blender. Blend until smooth.
2. Pour the mixture into popsicle molds. If using, sprinkle with coconut flakes
before inserting the popsicle sticks. Freeze for at least 6 hours or
overnight until firm.
3. Release the popsicles from the molds by dipping the molds into warm
water to loosen the pops. Enjoy!
4.3.4. Sherbet
 Ingredients
 2 cups water
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 1/2 cup sugar substitute, or 1 cup granulated sugar
 3 ripe Avocados
 1 lime, zested and juiced
 Procedure
1. In a saucepan over high heat, bring water and sugar (or sugar
substitute) to a boil.
2. Turn down heat to low and let simmer until all sugar has dissolve, just
few minutes.
3. Let cool completely.
4. Combined avocados, lime zest and lime juice in a blender or food
processor.
5. Pour in sugar and water mixture and blend until completely combined
and smooth.
6. Taste and adjust as needed.
7. Pour into ice cream machine and blend as instructed until sorbet
forms, about 25 minutes.
8. Serve and enjoy!
4.3.5. Rolled Ice Cream
 Ingredients
 2 ripe avocados in this recipe
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 1 cup of almond milk
 Sweetener
 Vanilla Extract
 Procedure
1. Peel the avocados, then add it in the food processor with almond
milk, vanilla extract, the sweetener and heavy cream. Mix until well
incorporated, until you have a nice and smooth mixture.
2. Pour the ice cream in a freezer-safe container and cover it.
3. After that, put the ice cream in the freezer for at least 6 hours.
4. Serve cold.
4.4. Operations Flow
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The Bestie’s Avocado Ice Cream will render their service to its
consumers in the following procedure.
OPERATIONS FLOW
Order Produce Ice Cream

V
Pay Serve Ice Cream
Collect Payment
Dine/Depart
Figure 4.6. Operations Flow
4.5 Production Schedule
Table 4.1 Production Schedule
Day Time Daily Activities
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Monday; Thursday 07:30-08:00 AM IN
& Sunday
08:30-9:30 AM Preparation for the ice
cream machine and its
ingredients.
10:00AM-12:00 Production of all types of ice

nn cream
4.6. Floor Layout
Figure 4.7. Counter Area Design
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Figure 4.8. Dining Area View
Figure 4.9 Line Area
Figure 4.7 Packaging
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Ice cream is an irresistible treat; it’s the very reason why brands package
their creamy goodness in the most creative and visually-engaging ways
possible.
After all, the packaging is not just about making a product look great. It’s
all about selling an idea, a story and an experience that everyone can indulge
in.
Great ice cream packages should instantly give customers a visual
representation of how the sweet treat would taste like. From the illustrations and
colorways to the actual packaging material, it should be enough to convince them
to get that extra scoop!
Figure 4.10 Cones
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Figure 4.11 Ice Cream Cone w/ Logo
4.8. Total Cost of Packaging
The following are the provided list of customized materials along with its quantity,
unit cost, and total cost good for a month.
Product Materials Descriptio QTY Unit Total

n Cost Cost
Ice Cream Cone Wrapper 1 sheet 4,488 ₱ 2.00 ₱
Package for all 5,984.00
Types
₱ 5,984.00
4.9. EQUIPMENT AND SUPPLIES
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4.9.1 Furniture and Fixtures
TABLE (for customers)

Cost : P1, 150.00
Useful Life : 5 years
Quantity : 11 pcs.
Total Cost : P12, 650.00
Supplier : LAZADA
CHAIRS (plastic)
Cost : P340.00
Quantity : 45 pcs.
Total Cost : P15, 300
Supplier : LAZADA
OFFICE TABLE
Cost per unit : P 1,774.00
Quantity : 1 pc.
Supplier : LAZADA
CASHIER’S CHAIR
Cost : P 2,899.00
Quantity : 1
Supplier : LAZADA
4.9.2. Machineries
CASH REGISTER
Cost : P 17, 150.00
Quantity : 1 pc.
Supplier : OLX
GENERATOR
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Cost : P 5, 999.00
Quantity : 1 pc.
Supplier : IVY
FIRE EXTINGUISHER
Cost : P 1,450.00
Quantity : 1 pc.
Supplier : Jelyco
CEILING FAN
Total Cost : P 7, 185.00
Cost per unit : P 2, 395.00
Quantity : 3 pcs.
Supplier : Greatwall
FLAT SCREEN TV
Cost : P 7, 999.00
Quantity : 1 pc.
Supplier : Quality Appliance
REFRIGERATOR
Cost : P 23, 495.00
Quantity : 1 pc.
Supplier : Quality Appliance
WATER DISPENSER
Cost : P 799.00
Quantity : 1 pc.
Supplier : Lee Plaza
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ICE CREAM DIPPING/ DISPLAY FREEZER
Cost : P 99,800
Quantity : 1 pc.
Supplier : Worldflex Trading Co.
ICE CREAM CHEST FREEZER

Cost : P 22,500
Quantity : 1 pc.
Supplier : Imperial Appliance Plaza
SOFT SERVE ICE CREAM MACHINE

Cost : P 90,000
Quantity : 1 pc.
Supplier : Makinarya General Merchandise
BLENDER
Cost : P 3,900
Quantity : 1 pc.
BLENDER
Cost : P 3,990
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Quantity : 1 pc.
STAINLESS STEEL TABLE

Cost : P 8,900
Quantity : 1 pc.
3 COMPARTMENT SINK
Cost : P 48,000
Quantity : 1 pc.
Supplier : CITI Hardware
HAND SINK
Cost : P 3,000
Quantity : 2 pcs.
Total : P 6,000
Supplier : CITI Hardware
4.9.3 SUPPLIES
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ICE CREAM SCOOP (3SETS)
Cost : P 499
Quantity : 3 sets
Total : P 1,497
Supplier : Amigo
ICE CREAM DIPPER WELL

Cost : P 7,862.00
Quantity : 1 pc.
Supplier : Lazada
ICE CREAM HOLDER

Cost : P 1,670.00
Quantity : 1 pc.
Supplier : Shoppee
SQUEEZE BOTTLE
Cost : P 75
Quantity : 3 pcs.
Total Price : P 225
Supplier : 168 Enterprise
4.9.4 Office Supplies
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BALLPEN
Cost : P 50.00
Quantity : 1 box
Supplier : Sebio
NOTEBOOK
Cost : P 564.00
Quantity : 1 dozen
Supplier : Sebio
BONDPAPER
Cost : P 140.00
Quantity : 1 ream
Supplier : Sebio
THERMAL PAPER
Cost : P 479.50
Quantity : 1 roll
Supplier : Sebio
CALCULATOR
Cost : P 315.00
Total Cost : P 630.00
Quantity : 2 pcs.
Supplier : Sebio
4.9.5. Cleaning Supplies

TRASH BIN
Cost : P 585.00
Quantity : 3 pcs.
DOORMAT
Cost : P 180.50
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Quantity : 2 pcs
Supplier : NOVO
TRASH BAGS
Cost : P 43.50
Quantity : 40 packs per month
Total Cost : P1, 740.00
Supplier : Lee Plza
DISHWASHING LIQUID
Cost : P38.00/bottle
Quantity : 5 bottles/month
Total Cost : P190.00
Supplier : LKS
HAND TOWEL
Cost : P 30.00
Total Cost : P 150.00
Quantity : 5 pcs.
DETERGENT POWDER
Cost : P5.00
Quantity : 20 sachets per month
Total Cost : P100. 00
Supplier : LKS
PAIL
Cost : P 58.50
Quantity : 2 pcs.
Supplier :
BROOMS and DUST PAN

Cost : P 49.50 – broom, P50.00 – dust pan
Quantity : 3 pcs.
Supplier : Mercado
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4.10. Compliance Documents and Fees
Before the start of any business operations, certain legal documents must
be complied and secured. To secure these documents, it requires the payment of
designated fees that will vary in its location. Nonetheless, noncompliance with
these documents would render the business illegal
Compliance Documents Respective Fees

Barangay Clearance (with ₱ 70.00
Cedula)
Police Clearance ₱ 50.00
Judge’s Clearance ₱ 150.00
Zoning Clearance ₱ 200.00
Fire Safety Inspection ₱ 200.00
Mayor’s Clearance and Permit ₱ 150.00
LTO Registration ₱ 4,000.00
Sanitary Inspection ₱ 50.00
Medical ₱ 50.00
Garbage Fee ₱ 100.00
Occupation Fee ₱ 50.00
Business Tax ₱ 3,896.00
DTI Certificate and Registration ₱ 500.00
Business Plate ₱ 1,000.00
TOTAL ₱ 10,466.00
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4.11. Utility Expense
Particulars Monthly Cost Annual Cost

Water Bill ₱ ₱ 6,000.00
500.00
Electric Bill ₱ ₱ 24,000.00
2,000.00
GOMO Data (Internet) ₱ ₱ 9,576.00
798.00
TOTAL ₱ 3,298.00 ₱ 39,576.00
4.12 Taxation
Annual Income Tax Rate In Excess Partial Tax Exp

- - ₱ 0% None None
250,000.00
₱ - ₱ 20% ₱ 250,000.00 None
250,000.00 400,000.00
₱ - ₱ 25% ₱ 400,000.00 ₱ 30,000.00
400,000.00 800,000.00
₱ - ₱ 30% ₱ 800,000.00 ₱ 130,000.00
800,000.00 2,000,000.00
₱ - ₱ 32% ₱ 2,000,000.00 ₱ 490,000.00
2,000,000.00 8,000,000.00
₱ - Above 35% ₱ 8,000,000.00 ₱ 2,410,000.00
8,000,000.00
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CHAPTER V
FINANCIAL STUDY
5.1. Introduction
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The objective of this study is to analyze the financial viability of the project. All projects
are considered viable only when they are expected to be profitable and will have able to
meet its short-term obligation, remain liquid during adversities, and able to finance its
operational growth mostly from its earnings capacity or capital sources rather than credit
application. This chapter presents the financial assumptions and a five year projection of
the statement of financial position, statement of financial performance, and statement of
cash flows.
5.2. Summary of Projected Cost
Project Cost Amount

Construction for Leasehold Improvements 244,000.00
Purchase of Machinery and Equipment 347,167.00
Purchase of Furniture and Fixtures 32,613.00
Cash on Hand Beg. of Opearations 305,291.00
Pre-operating Expenses
Supplies Expense - Office Supplies 1,863.00
Supplies Expense - Cleaning Supplies 3,360.00
Business permits and licenses 10,466.00
Advertising Expenses 5,240.00 20,929.00
Total 950,000.00
5.3. Initial Requirements

The capital of the Bestie’s Avocado Ice Cream business will be financed by the
sole proprietor, Mr. Loester M. Bercasio, in the amount of ₱950,000.00.
Initial Capital Requirement

Sole Proprietor Invested Amount
LOESTER
M. BERCASIO ₱ 950,000.00
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Financial Assumptions
Major Assumptions
1. Sales Annual growth is 5%.
2. Cost of Goods sold (COGS) increases 5% annually.
3. The total project cost is 950,000.00 only.
4. Depreciation expense is computed using Straight-line Method.
5. Store supply, Office Supplies Utility Expenses will increase by 5% every
year.
83 | P a g e
Projected Financial Statements
Bestie’s Avocado Ice Cream

Projected Statement of Financial Performance (5 years)
For the period Ended
Notes Pre-Op Year Year 1 Year 2 Year 3 Year 4 Year 5

Sales 1 - 8,534,451.50 8,961,174.07 9,409,232.78 9,879,694.42 10,373,679.14
Total Revenue
Less: Cost of Goods Sold 2 6,827,112.49 7,168,468.12 7,526,891.52 7,903,236.10 8,298,397.90
Gross Operating Profit 1,707,339.01 1,792,705.96 1,882,341.26 1,976,458.32 2,075,281.24
Less: Adminstrative Expenses
Salaries and Wages 3 722,592.00 722,592.00 722,592.00 722,592.00 722,592.00
PHIC Contributions Expense 4 9,935.64 9,935.64 9,935.64 9,935.64 9,935.64
PAG-IBIG Contributions Expense 4 14,451.84 14,451.84 14,451.84 14,451.84 14,451.84
SSS Contributions Expense 4 64,968.00 64,968.00 64,968.00 64,968.00 64,968.00
Supplies Expense - Office Supplies 5 1,863.00 22,356.00 23,473.80 24,647.49 25,879.86 27,173.86
Supplies Expense - Cleaning Supplies 6 3,360.00 40,320.00 42,336.00 44,452.80 46,675.44 49,009.21
Utility Expense 7 39,576.00 41,554.80 43,632.54 45,814.17 48,104.88
Business permits and licenses 8 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00
Advertising Expenses 9 5,240.00 62,880.00 62,880.00 62,880.00 62,880.00 62,880.00
Rent Expense 10 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Depreciation Expense
Leasehold Improvements 11 24,400.00 24,400.00 24,400.00 24,400.00 24,400.00
Furniture and Fixtures 12 38,593.49 38,593.49 38,593.49 38,593.49 38,593.49
Kitchen Utensils 13 1,661.15 1,661.15 1,661.15 1,661.15 1,661.15
Machinery and Equipment 14 6,012.60 6,012.60 6,012.60 6,012.60 6,012.60
Total Expense 20,929.00 1,178,212.72 1,183,325.32 1,188,693.55 1,194,330.19 1,200,248.67
Net Income before Tax (20,929.00) 529,126.29 609,380.64 693,647.71 782,128.13 875,032.57
Income Tax 62,281.57 82,345.16 103,411.93 125,532.03 148,758.14

Net Income After Tax (20,929.00) 466,844.72 527,035.48 590,235.78 656,596.10 726,274.43
84 | P a g e
Projected Statement of Financial Position (5 years)
As of December 31
Notes Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

ASSET
Curent Assets
Cash and Cash Equivalent ₱ 294,037.00 ₱ 928,346.82 ₱ 1,546,113.13 ₱ 2,228,082.91 ₱ 2,977,466.36 ₱ 3,797,634.14
Total 294,037.00 928,346.82 1,546,113.13 2,228,082.91 2,977,466.36 3,797,634.14
Total Curent Assets 294,037.00 928,346.82 1,546,113.13 2,228,082.91 2,977,466.36 3,797,634.14
Non-Curent Assets (Net of Depreciation) 15

Property, Plant and Equipment
Leasehold Improvements 244,000.00 219,600.00 195,200.00 170,800.00 146,400.00 122,000.00
Furniture and Fixtures 347,167.00 308,573.51 269,980.02 231,386.53 192,793.04 154,199.55
Kitchen Utensils 11,254.00 9,592.85 7,931.70 6,270.55 4,609.40 2,948.25
Machinery and Equipment 32,613.00 26,600.40 20,587.80 14,575.20 8,562.60 2,550.00
Total Non-Curent Assets 635,034.00 564,366.76 493,699.52 423,032.28 352,365.04 281,697.80
TOTAL ASSETS ₱ 929,071.00 ₱ 1,492,713.58 ₱ 2,039,812.65 ₱ 2,651,115.19 3,329,831.40 4,079,331.94
LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Philhealth Contribution Payable ₱ 827.97 ₱ 827.97 ₱ 827.97 827.97 827.97
Pag-ibig Contribution Payable 1,204.32 1,204.32 1,204.32 1,204.32 1,204.32
SSS Contribution Payable 32,484.00 32,484.00 32,484.00 32,484.00 32,484.00
IncomeTax Payable 62,281.57 82,345.16 103,411.93 125,532.03 148,758.14
Total Curent Liabilities - 96,797.86 116,861.45 137,928.22 160,048.32 183,274.43
Non-Current Liabilities
Other Payables - - - - - -
Total Non-Curent Liabilities - - - - - -
TOTAL LIABILITIES - 96,797.86 116,861.45 137,928.22 160,048.32 183,274.43
OWNER'S EQUITY
Owner's Equity, Beg. 950,000.00 929,071.00 1,395,915.72 1,922,951.20 2,513,186.98 3,169,783.07
Add (Less):
Income / (Loss) (20,929.00) 466,844.72 527,035.48 590,235.78 656,596.10 726,274.43
Owner's Equity, End. 929,071.00 1,395,915.72 1,922,951.20 2,513,186.98 3,169,783.07 3,896,057.50
TOTAL LIABILITIES AND OWNER'S EQUITY ₱ 929,071.00 ₱ 1,492,713.58 ₱ 2,039,812.65 ₱ 2,651,115.19 ₱ 3,329,831.40 ₱ 4,079,331.94
85 | P a g e
Projected Statement of Cash Flows (5 years)
For the Period ended December 31
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flow from Operating Activities:
Cash Inflows:
Collection from Sales 8,534,451.50 8,961,174.07 9,409,232.78 9,879,694.42 10,373,679.14
Total Cash Inflows - 8,534,451.50 8,961,174.07 9,409,232.78 9,879,694.42 10,373,679.14
Cash Outflows:
Payment for Purchase of Raw Materials 6,827,112.49 7,168,468.12 7,526,891.52 7,903,236.10 8,298,397.90
Payment of Salaries and Wages 666,080.52 666,080.52 666,080.52 666,080.52 666,080.52
PHIC Contributions 19,043.31 19,871.28 19,871.28 19,871.28 19,871.28
PAG-IBIG Contributions 27,699.36 28,903.68 28,903.68 28,903.68 28,903.68
SSS Contributions 64,608.00 97,092.00 97,092.00 97,092.00 97,092.00
BIR Income Tax Remittance 62,281.57 82,345.16 103,411.93 125,532.03
Supplies Expense - Office Supplies 1,863.00 22,356.00 23,473.80 24,647.49 25,879.86 27,173.86
Supplies Expense - Cleaning Supplies 3,360.00 40,320.00 42,336.00 44,452.80 46,675.44 49,009.21
Utility Expense - 39,576.00 41,554.80 43,632.54 45,814.17 48,104.88
Business permits and licenses 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00
Advertising Expenses 5,240.00 62,880.00 62,880.00 62,880.00 62,880.00 62,880.00
Repairs and Maintenance Expenses - 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Total Cash Outflows 20,929.00 7,900,141.68 8,343,407.77 8,727,262.99 9,130,310.98 9,553,511.36
Net Cash Provided(Used) from Operating Activities (20,929.00) 634,309.82 617,766.31 681,969.79 749,383.44 820,167.78
Cash Flows from Investing Activities:
Cash Inflows:
Proceeds from sale of assets 0.00 0.00 0.00 0.00 0.00 0.00
Total cash Inflows 0.00 0.00 0.00 0.00 0.00 0.00
Cash Outflows:
Purchase of Property, Plant and equipment
Construction for Leasehold Improvements 244,000.00
Purchase of Machinery and Equipment 347,167.00
Purchase of Kitchen Utensils 11,254.00
Purchase of Furniture and Fixtures 32,613.00
Total Cash Outflows 635,034.00 - 0.00 0.00 0.00 0.00
Net Cash Provided(Used) from Investing Activities (635,034.00) - 0.00 0.00 0.00 0.00
Cash Flows from Financing Activities
Cash Inflows:
Initial Inventment 950,000.00 0.00 0.00 0.00 0.00
Total Cash inflows 950,000.00 0.00 0.00 0.00 0.00 0.00
Cash Outflows:
Payment of loans 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflows 0.00 0.00 0.00 0.00 0.00 0.00
Net Cash Provided(Used) from Financing Activities 950,000.00 - 0.00 0.00 0.00 0.00
Cash provided(used) by Operating, Investing and Financing Activities
294,037.00 634,309.82 617,766.31 681,969.79 749,383.44 820,167.78
Add: Cash Balance, Beg. - 294,037.00 928,346.82 1,546,113.13 2,228,082.91 2,977,466.36
Cash Balance, End 294,037.00 928,346.82 1,546,113.13 2,228,082.91 2,977,466.36 3,797,634.14
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Projected Statement of Owner's Equity (5 years)
As of December 31
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Owner's Equity, Beginning 950,000.00 929,071.00 1,395,915.72 1,922,951.20 2,513,186.98 3,169,783.07

Add: Retained Operating Surplus
Net Income (20,929.00) 466,844.72 527,035.48 590,235.78 656,596.10 726,274.43
Total
Add/Deduct:
Additional Investment - - - -
Withdrawals - - - -
Owner's Equity, End 929,071.00 1,395,915.72 1,922,951.20 2,513,186.98 3,169,783.07 3,896,057.50
Notes to Financial Statements

Note 1 – Sales
Galas 19,508.00
Miputak 7,667.00
Central 1,735.00
Sta Filomena 8,475.00
Estaka 7,806.00
Total Target Market 45,191.00
Members per family 8.00
Target Market 5,648.88
Purchasing Power per Individual 0.1761243
Daily QTY Purchases of customers 994.90
Willing to Buy 98.47%
Expected QTY sold 979.68
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Products % Daily Demand Monthly Annually
GELATO 48.35% 473.64 14,209.13 170,509.55
SOFT SERVE 24.17% 236.82 7,104.56 85,254.77
ICE POPSICLE 6.36% 62.32 1,869.62 22,435.47
ROLLED ICE CREAM 11.45% 112.18 3,365.32 40,383.84
SHERBET 9.67% 94.73 2,841.83 34,101.91
979.68 29,390.46 352,685.54
Products Price Daily Demand Monthly Annually

GELATO 30.00 14,209.13 426,273.87 5,115,286.39
SOFT SERVE 20.00 4,736.38 142,091.29 1,705,095.46
ICE POPSICLE 10.00 623.21 18,696.22 224,354.67
ROLLED ICE CREAM 20.00 2,243.55 67,306.40 807,676.80
SHERBET 20.00 1,894.55 56,836.52 682,038.19
23,706.81 711,204.29 8,534,451.50
Projected Sales % Inrcrease Amount

Year 1 0% 8,534,451.50
Year 2 5% 8,961,174.07
Year 3 5% 9,409,232.78
Year 4 5% 9,879,694.42
Year 5 5% 10,373,679.14
Note 2 – Cost of Goods Sold
Qty Sold per Raw COGS Cost of Goods

Products
month materials cost Monthly Sold Annual
GELATO 14,209.13 25.00 355,228.22 4,262,738.66
SOFT SERVE 7,104.56 15.00 106,568.47 1,278,821.60
ICE POPSICLE 1,869.62 7.50 14,022.17 168,266.00
ROLLED ICE CREAM 3,365.32 15.00 50,479.80 605,757.60
SHERBET 2,841.83 15.00 42,627.39 511,528.64
Total 15,181.33 568,926.04 6,827,112.49
Note 3 – Salaries and Wages

Rate per Day Number of Days No. of Total cost Total cost
Employees Monthly Annual Rate
(Php) (on-Duty) Employee/s Monthly Annually
Manager 450.00 26 11,700.00 140,400.00 1 11,700.00 140,400.00
Cashier 394.00 26 10,244.00 122,928.00 1 10,244.00 122,928.00
Attendants 385.00 26 10,010.00 120,120.00 2 20,020.00 240,240.00
Dishwashers 351.00 26 9,126.00 109,512.00 2 18,252.00 219,024.00
Total 1,580.00 41,080.00 492,960.00 6 60,216.00 722,592.00
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Note 4 – PHIC, Pag-Ibig and SSS Contribution Employer Share Expenses
Philhealth PAG-IBIG SSS
Gross pay PHIC PAG-IBIG SSS
Position Year1-Year 5 (Jan- Employer Share- Employer Share- Contribution Contribution Contribution
Employee Share Employer Share Employee Share Employer Share Employee Share
Dec) SSS EC Expense Expense Expense
Manager 140,400.00 1,930.50 1,930.50 2,808.00 2,808.00 6,204.00 12,408.00 120.00 1,930.50 2,808.00 12,528.00
Cashier 122,928.00 1,690.26 1,690.26 2,458.56 2,458.56 5,400.00 10,800.00 120.00 1,690.26 2,458.56 10,920.00
Attendants 240,240.00 3,303.30 3,303.30 4,804.80 4,804.80 10,800.00 21,600.00 240.00 3,303.30 4,804.80 21,840.00
Dishwashers 219,024.00 3,011.58 3,011.58 4,380.48 4,380.48 9,720.00 19,440.00 240.00 3,011.58 4,380.48 19,680.00
Total 722,592.00 9,935.64 9,935.64 14,451.84 14,451.84 32,124.00 64,248.00 720.00 9,935.64 14,451.84 64,968.00
Note 5 – Supplies Expense – Office Supplies

Pre-operating
Particulars Monthly Annual Cost Year 1 Year 2 Year 3 Year 4 Year 5
Year
Supplies Expense - Office Supplies 1,863.00 22,356.00 1,863.00 22,356.00 23,473.80 24,647.49 25,879.86 27,173.86
TOTAL 1,863.00 22,356.00 1,863.00 22,356.00 23,473.80 24,647.49 25,879.86 27,173.86
Note 6 – Supplies Expense – Cleaning Supplies

Pre-operating
Year
Supplies Expense - Cleaning
3,360.00 40,320.00 3,360.00 40,320.00 42,336.00 44,452.80 46,675.44 49,009.21
Supplies
TOTAL 3,360.00 40,320.00 3,360.00 40,320.00 42,336.00 44,452.80 46,675.44 49,009.21
Note 7 - Utility Expense

Pre-operating
Year
Utility Expense 3,298.00 39,576.00 3,298.00 39,576.00 41,554.80 43,632.54 45,814.17 48,104.88
TOTAL 3,298.00 39,576.00 3,298.00 39,576.00 41,554.80 43,632.54 45,814.17 48,104.88
Note 8 – Business Permits and Licenses

Pre-operating
Year
Business permits and licenses 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00
TOTAL - 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00 10,466.00
Note 9 – Advertising Expenses

Pre-operating
Year
Advertising Expenses 5,240.00 62,880.00 5,240.00 62,880.00 62,880.00 62,880.00 62,880.00 62,880.00
TOTAL 5,240.00 62,880.00 5,240.00 62,880.00 62,880.00 62,880.00 62,880.00 62,880.00
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Note 10 – Rent Expenses
Pre-operating
Year
Rent Expense 10,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
TOTAL 10,000.00 120,000.00 - 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Note 11 – Depreciation Expenses (Leasehold Improvements)

Estimated
Monthly Annual
Particulars Unit Cost QTY Total Cost Useful Life
Depreciation Depreciation
(months)
Leasehold Improvements 244,000.00 1 244,000.00 120 2,033.33 24,400.00
Total 244,000.00 244,000.00 2,033.33 24,400.00
Note 12 – Depreciation Expenses (Furnitures and Fixtures)

Estimated
Monthly Annual
Furniture and Fixtures Unit Cost QTY Total Cost Useful Life
(months)
Table 1,150.00 11 12,650.00 60 210.83 2,530.00
Chairs 340.00 45 15,300.00 72 212.50 2,550.00
Office Table 1,774.00 1 1,774.00 60 29.57 354.80
Cashier's Chair 2,889.00 1 2,889.00 60 48.15 577.80
Total 6,153.00 32,613.00 501.05 6,012.60
Note 13 – Depreciation Expenses (Kitchen Utensils)

Estimated
Monthly Annual
Kitchen Utensils Unit Cost QTY Total Cost Useful Life
(months)
Ice Cream Scoop 499.00 3 1,497.00 60 24.95 299.40
Ice Cream Dipper Well 7,862.00 1 7,862.00 96 81.90 982.75
Ice Cream Holder 1,670.00 1 1,670.00 60 27.83 334.00
Squeez Bootle 75.00 3 225.00 60 3.75 45.00
Total 10,106.00 11,254.00 138.43 1,661.15
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Note 14 – Depreciation Expenses (Machinery and Equipment)
Estimated
Monthly Annual
Machinery and Equipment Unit Cost QTY Total Cost Useful Life
(months)
Cash Register 17,150.00 1 17,150.00 96 178.65 2,143.75
Generator 5,999.00 1 5,999.00 96 62.49 749.88
Fire Extinguisher 1,450.00 1 1,450.00 60 24.17 290.00
Ceiling Fan 2,395.00 3 7,185.00 60 119.75 1,437.00
Flat Screen TV 7,999.00 1 7,999.00 108 74.06 888.78
Refrigerator 23,495.00 1 23,495.00 108 217.55 2,610.56
Water Dispenser 799.00 1 799.00 84 9.51 114.14
Ice Cream Display Freezer 99,800.00 1 99,800.00 120 831.67 9,980.00
Ice Cream Chest Freezer 22,500.00 1 22,500.00 96 234.38 2,812.50
Soft Service Ice cream Machine 90,000.00 1 90,000.00 120 750.00 9,000.00
Blender 3,900.00 1 3,900.00 60 65.00 780.00
Stainless Rack 3,990.00 1 3,990.00 60 66.50 798.00
Stainless Steel Table 8,900.00 1 8,900.00 108 82.41 988.89
3 Compartment Sink 48,000.00 1 48,000.00 108 444.44 5,333.33
Hand Sink 3,000.00 2 6,000.00 108 55.56 666.67
Total 339,377.00 347,167.00 3,216.12 38,593.49
Note 15 – Property Plant and Equipment
Total Year 1 Year 2 Year 3 Year 4 Year 5

Annual
Property Plant and Equipment Acquisition Accumlated Accumlated Accumlated Accumlated Accumlated
Depreciation Book Value Book Value Book Value Book Value Book Value
Cost Deprecation Deprecation Deprecation Deprecation Deprecation
Leasehold Improvements 244,000.00 24,400.00 24,400.00 219,600.00 48,800.00 195,200.00 73,200.00 170,800.00 97,600.00 146,400.00 122,000.00 122,000.00
Furniture and Fixtures 32,613.00 6,012.60 6,012.60 26,600.40 12,025.20 20,587.80 18,037.80 14,575.20 24,050.40 8,562.60 30,063.00 2,550.00
Kitchen Utensils 11,254.00 1,661.15 1,661.15 9,592.85 3,322.30 7,931.70 4,983.45 6,270.55 6,644.60 4,609.40 8,305.75 2,948.25
Machinery and Equipment 347,167.00 38,593.49 38,593.49 308,573.51 77,186.98 269,980.02 115,780.47 231,386.53 154,373.96 192,793.04 192,967.45 154,199.55
Total 564,366.76 493,699.52 423,032.28 352,365.04 281,697.80
91 | P a g e
Return on Investment
ROI is a performance measure used to evaluate the efficiency of an investment or
to compare the efficiency of a number of different investments. The higher the return on
ROI of a project, the greater the profit earned per peso invested in the operating assets
The return on investment of the project for the first year is 49.14%. This means
that there is high profit earned per peso invested in the project.
Net Income After Tax Average Net Income Cost of Investment ROI
Year 1 466,844.72 950,000.00 49.14%
Year 2 527,035.48 950,000.00 55.48%
Year 3 590,235.78 593,397.30 950,000.00 62.13%
Year 4 656,596.10 950,000.00 69.12%
Year 5 726,274.43 950,000.00 76.45%
Average Net Income

Return on Investment = Retrurn for 5 years
Cost of Investment
593,397.30
Return on Investment = Retrurn for 5 years
950,000.00
Return on Investment = Retrurn for 5 years 62.4629%
92 | P a g e
Payback Period.
This method refers to the length of time before investment is recovered. It is the
time where the cumulative cash inflows are equal to the cost of investment. If the
payback period is less than or equal to the maximum allowed payback period by the
management, accept; otherwise, reject. Thus, the more quickly the cost of an investment
can be recovered, the more desirable is the investment.
The project financial evaluation regarding payback period showed 1.511 years.
This means that the project cost could be recovered in less than 5 years.
The project is acceptable and a desirable investment.
Cummulative Cash Investment

Initial Capital Cash Inflow Payback Period
Inflow Balance
Year 1 950,000.00 634,309.82 634,309.82 315,690.18 1
Year 2 617,766.31 1,252,076.13 0.51
Year 3 681,969.79 1,934,045.91
Year 4 749,383.44 2,683,429.36
Year 5 820,167.78 3,503,597.14 0.00
Payback Period 1.5110
93 | P a g e
CHAPTER VI
SOCIAL AND
ECONOMIC
STUDY
94 | P a g e
6.1. Introduction
This study discuss the benefits of the proposed business and how the
business affects the economy, environment, and government. It stated also the
contribution of the business to the economy and the relevance of it to the society.
This should be considered by the business in order to attain a positive feedback
to the community. The business should not only be concern about its profit but
also on the effect of it to the people and the condition of the society.
6.2. Economic Significance
Ice cream featuring a premium positioning often highlight strong
indulgence cues to justify clear value. These can relate to texture, processing
method, ingredient or provenance. While ice cream is inherently indulgent,
brands have been experimenting around indulgent mix-ins and toppings to make
their products seem more premium, and thus more of a treat of comfort-seeking
shoppers, and so Bestie’s Avocado Ice Cream.
Bestie’s Avocado Ice Cream adapt to counter inflation concerns. They
always think the consumers will continue to seek out small indulgences in the
face of a global economic crisis especially, in this time of pandemic, has already
led to cost of living issues. In some markets, a recession is possible due to rising
inflation. The stress and uncertainty of an economic crisis leads to an uptake in
eating comfort foods such as ice cream. However, rising inflation means it is ever
crucial to offer consumers value for money.
95 | P a g e
Like any consumer product, there is a relationship between economic
activity and Bestie’s Avocado’s Ice Cream Sales. This is relatively weak, since
the purchase of ice cream involves only a small proportion of consumer’s
income. Lifestyle changes have stimulated demand. The number of people
eating “on the move” has risen significantly in recent years. Then, ice cream has
benefited from this consumer trend.
6.3. Environmental Contribution
Ice Cream is consumed daily worldwide and yet its environmental impacts
are scarcely known. In Bestie’s Avocado Ice Cream, its resources being used to
create the delicious and healthy ice cream, probably has an impact on the
environment. That is why the business get to have a homemade, custom, high
quality ice cream like gelato, sorbet and other types of ice cream which is
available at Bestie’s Avocado’s Ice Cream.
An obvious way that ice cream affects the environment is by affecting
cows, who clearly have a big role in the production of ice cream with their milk
offering. With high percentage of milk produced to make millions of gallons of ice
cream, that is not where the environmental regards end. Additionally, ice cream
affects tropical rain forests and the vast biodiversity of plants and animals that
thrive and survive in them. This is because a widely used ingredient in almost
anything, actually is a palm oil. Since Bestie’s Avocado Ice Cream promote and
provide not just delicious but healthy ice cream, it uses palm oil as one of its
resources. Palm oil is a vegetable oil that is used in a variety of foods and
substance. In earlier days, the excavation of palm oil had a negative effect on the
96 | P a g e
ecosystems in these countries. However, world food leaders hosted the
Roundtable on Sustainable Palm Oil (RSPO) in 2004 to discuss more proper
palm oil production techniques and guidelines. Since then, things have widely
been more control.
6.4. Contribution to the Employees
Unemployment is one of the major problems that the country is facing
today. It is also one of the reasons why many are suffering from poverty and
hunger.
Bestie’s Avocado Ice Cream is a new business that gives job opportunities
to the community, as the employment is a fundamental component of a
successful economy. Through it, individuals can gain profit, earn money for a
living, pay for their family’s daily consumption and have the means to provide
their children with proper education and to address the very fundamental problem
of the economy which is the unemployment that will lead to poverty.
Creation of productive employment opportunities is essential in poverty
reduction and achieving sustainable economic and social development. Through
these employment opportunities, residence will gain income, uplift their standard
of living, provide them with their basic needs. In generating employment, the
government stands to benefit through more revenues from taxes.
97 | P a g e
6.5. Contribution to the Government
The business owners will pay the tax obligation as provided by law. Tax will help
the government generate funds for the improvement of public services and
government projects.
98 | P a g e
BIBILIOGRAPHY
99 | P a g e
BIBLIOGRAPHY
Add a Pinch (2013). Old Fashioned Ice Cream Sample Pictures. Retrieved from
https://addapinch.com/old-fashioned-vanilla-ice-cream-recipe/
Bureau of Internal Revenue (BIR). Withholding Tax.
https://www.bir.gov.ph/index.php/tax-information/withholding-tax.html
Bureau of Internal Revenue (BIR). Income Tax

https://www.bir.gov.ph/index.php/tax-information/income-tax.html
List of Equipments
https://www.google.com/search?
q=ice+cream+equipment+list&bih=600&biw=1366&rlz=1C1GCEJ_enPH976PH
976&hl=en-US&ei=OPmbY6WLBejj2roPnb-
YkAE&oq=ice+cream+eq&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQARgBMgUIABC
RAjIFCAAQkQIyBQgAEIAEMgUIABCABDIFCAAQgAQyBQgAEIAEMgUI
ABCABDIFCAAQgAQyBQgAEIAEMgUIABCABDoECC4QQzoECAAQQzoL
CAAQgAQQsQMQgwE6CAgAEIAEELEDOgcILhCxAxBDOgoIABCxAxCDA
RBDOgcILhDUAhBDOgoILhCxAxDUAhBDOgcIABCxAxBDOgsIABCxAxC
DARCRAkoECEEYAEoECEYYAFAAWKEVYIEkaABwAXgCgAHhBIgB4xm
SAQswLjYuMS4zLjAuMpgBAKABAcABAQ&sclient=gws-wiz-serp
Compute Your SSS Contribution: An Ultimate Guide. Retrieved from

https://www.bing.com/images/search?
view=detailV2&ccid=yhma0cB3&id=052E08F34AAED33
Pag-Ibig. Member Registration Form.
https://member-register-form.pdffiller.com/
PhilHealth. Member Registration Form.
PHILHEALTH20MEMBER20REGISTRATION20FORMOMRFpdf-pmrf-form-
2010-
Social Security System (SSS). Personal Record (Issuance of SS Number)
https://sss-online-registration-e1.pdffiller.com/
100 | P a g e
APPENDIX
101 | P a g e
037 Zamora St., Biasong, Dipolog City, Zamboanga
Del Norte
PERSONAL INFORMATION
Sex : Male
Date of Birth : January 15, 20000
Height : 5’6
Weight : 42 kg.
Father’s Name : Jose Allan R. Sarabia
Occupation : Business Man
Mother’s Name : Trifona M. Sarabia
Occupation : Housewife
102 | P a g e
Sta. Filomena, Dipolog City, Zamboanga del
Norte
Sex : Female
Height : 5’2
Weight : 55 kg.
Father’s Name : Junard L. Cabanlit
Occupation : Construction Worker
Mother’s Name : Menchie J. Cabanlit
103 | P a g e
JAN LLOYD S. TEE
Zamora St., Estaka, Dipolog City, Zamboanga
Del Norte
Sex : Male
Height : 5’7
Weight : 56 kg.
Father’s Name : Salcedo S. Tee
Occupation : Vulcanizing
Mother’s Name : Avegay S. Tee
Occupation : OFW
104 | P a g e
Turno, Dipolog City, Zamboanga del Norte
Sex : Female
Date of Birth : April 19, 2000
Height : 5’1
Weight : 52 kg.
Father’s Name : Manuel D. Narvaez
Occupation : Self- Employed
Mother’s Name : Teresita D. Narvaez
105 | P a g e
KYBELLE A. CAÑETE
Lower, Turno, Dipolog City, Zamboanga del Norte
Sex : Female
Date of Birth : March 4, 2001
Height : 5’6
Weight : 68 kg.
Father’s Name : Inocencio G. Canete
Occupation : Retired Soldier
Mother’s Name : Gemma Rose A. Canete
Occupation : Deceased
106 | P a g e
MARIBEL T. TULABING
Upper Nipaan, Sindangan, Zamboanga del Norte
Sex : Female
Date of Birth : May 10, 1997
Height : 5’2
Weight : 58 kg.
Father’s Name : Sergio C. Tulabing
Occupation : Farmer
Mother’s Name : Corazon T. Tulabing
107 | P a g e

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A FEASIBILITY STUDY ON THE ESTABLISHMENT OF

“BESTIE’S AVOCADO ICE CREAM”

Presented to the Faculty of College of Business Education

In Partial Fulfillment of the Requirements

This feasibility study entitled: “THE ESTABLISHMENT OF BESTIE’S AVOCADO

MRS. MARITES G. REFUGIO MBA, SPBE

Approved by the Committee on Oral Examination with the grade of _____.

DR. JOSEPH J. REFUGIO, CHP, DBE, LPT

Despite of this pandemic, we would be able to finish this study. To our

Above all, to our Almighty God, who loves us unconditionally. This

humble research is dedicated with much pride.

PROJECT TITLE : BESTIE’S AVOCADO ICE CREAM

PROPONENT : MR. LOESTER M. BERCASIO

PROJECT LOCATION : Quezon Ave., National Highway,

Brgy. Miputak, Dipolog City,

Zamboanga del Norte

OWNERSHIP : SOLE PROPRIETORSHIP

INVESTMENT COST : ₱ 950,000.00

SOURCE OF FUNDS : PERSONAL SAVINGS ACCOUNT

RESEARCHERS : JAN LLOYD S. TEE

doing this business.

ECONOMIC/ MARKET STUDY

A Market Study provides a demographic and economic overview of the

subject area to determine the overall feasibility of a new Bestie’s Avocado

service be produced and also to determine if there is really an existing customer

The researchers conducted research to the market through the use of

survey questionnaire through online, although we are in face to face considering

presented in the marketing aspect the distribution of sample size as respondents

graph. The company will be using tarpaulins, advertisements and fliers as a

promotion of the business.

The management study describes the form of business organization that

table before the project be implemented.

The proposed business is sole proprietorship which to be manage by Mr.

will be composed of 1 manager, 1 cashier, 2 attendants that will serve as server

to the customer and 2 dishwashers. All of these employees will be compensated

provides information that includes operating procedures or processes, the

of the foundation of the financial statements.

SOCIAL AND ECONOMIC RESPONSIBILITIES

THE PROPOSED BUSINESS

provides a retreat like no other casual elegance, soothing ambiance, and

Cream wants to make your moments memorable.

cream. It is a cause of happiness and refreshment. It is a highly treat for Filipino

It is typically sweetened with sugar, condensed milk, and other sweeteners.

reason of taste and health.

That’s why we decided to come up with Bestie’s Avocado Ice Cream. It is a

Bestie’s Avocado Ice Cream is a sole proprietorship type of business that

schedules, therefore, Bestie’s Avocado Ice Cream offers delivery service as it

will be extremely beneficial.

This study is designed to provide reliable data that demonstrates the

towards the success of the business operation.

Choosing a perfect location for the business plays an important role in

accessibility for customers and suppliers.

Bestie’s Avocado Ice Cream will be established in Quezon Ave.,Highway,

surrounded amenity that would otherwise help attract business.

Figure 1.1 Bestie’s Avocado Ice Cream Actual Location

Figure 1.2 Actual Site

1.4 Statement of the Problem

The primary goal of this study is to see whether establishing Bestie’s

research method and online survey to potential customers that is a resident of

our target location respondents particularly in the barangay of Galas, Sta.

Filomena, Miputak, Estaka, and Central.

1. What makes the product unique from others?

2. What are the variants being offered?