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FOUNTINA ORGAMESA

An Undergraduate Feasibility Study Presented

To the Faculty of the College
Of Business Administration
St. Michael’s College
Iligan City

In Partial Fulfillment of the Requirement

For the Degree of Bachelor of Science in
Business Administration Major
In Marketing Management

REJANE E. BALISI
NORA FE O. ESCORIAL
STEPHANIE FAITH T. REUYAN

June 2020
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ST. MICHAEL’S COLLEGE

ILIGAN CITY
COLLEGE OF BUSINESS ADMINISTRATION

APPROVAL SHEET

This feasibility study entitled FOUNTINA ORGAMESA prepared

and submitted by BALISI,REJANE E.,ESCORIAL, NORA FE and
REUYAN STEPHANIE FAITH, in partial fulfillment of the requirements
for the degree of Bachelor of Science in Business Administration,
Major in Marketing Management has been examined and is
recommended for oral examination, approved and accepted.

AVE Z. DANGANAN, DM, LPT

Co-Author

PANEL OF EXAMINERS
APPROVED by the feasibility study committee on oral examination with a
grade of PASSED.

JUNE C. DOHILAG, MBA EMMANUEL E. ONG,DBA

Panel Member Panel Member

KORSINEY N. CABASIS,DBA
Chairperson

ACCEPTED and approved in partial fulfillment of the requirements for

the degree of Bachelor of Science in Business Administration, Major
in Marketing Management.

AVE Z. DANGANAN, LPT DM

Dean, College of Business Administration

June 2020
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ACKNOWLEDGMENT

The proponents would like to thank and extend their heartfelt and
sincere gratitude to all of those who gave them encouragement and
support necessary for the completion of this Feasibility Study.

To their dearest parents, Mr. and Mrs. Rey Angelino Y. Balisi, Mr.
and Mrs. Espiridion B. Escorial Jr. and Mr and Mrs. Stephen J. Reuyan,
who have been patient, inspiring and encouraging the researchers to do
best in their study as well as giving them financial and emotional
support.

To the respondents who spared some of their time to answer the

questionnaires.

To their friends and classmates who encourage and share their

time and effort for the proponents to finish this study.

To their adviser, Ave Z. Danganan, DM, LPT, who’s shared his

ideas and guided the proponents to finish this study.

To the panel members; Korsiney N. Cabasis, DBA, Emmanuel E.

Ong, MBE and Elaine May T. Fabiosa, MBA who gave their time and
guidance by sharing their knowledge, suggestion, and recommendation
for the improvement of this study.

And most of all, to the Lord God Almighty, for giving them the best
of health and wisdom to goes on with the study.

Rejane

Nora Fe

Stephanie Faith
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TABLE OF CONTENTS
PAGE
Cover Page i
Approval Sheet ii
Acknowledgment iii
Table of Contents iv
List of Tables v
List of Figures vii
List of Schedule viii
Executive Summary ix

Chapter
1 THE PROBLEM AND ITS SETTING 1
Introduction 1
General Background of the Project 3
Brief Description of the Business 3
Theoretical Framework 4
Conceptual Framework 8
Statement of the Problem 10
Scope and Delimitation
11
Significance of the Study 11
Definition of Terms 12

2 RESEARCH METHOD 15
Research Design 15
Locale of the Study 16
The Respondents 18
Sampling Procedure 18
Data Gathering 19
Research Instrument 19
Statistical Data Treatment of the Data 20

3 TECHNICAL STUDY 21
Product Classification 21
Product Specification 21
Process Flow 22
Process Description 23
Product Costing 25
Operating Expense 26
Cost of Goods Sold 28

4 MARKET STUDY 29
Description of the Product 29
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Comparison of the Product with its Competitors 31

Location of Manufacturing and Display area 32
Market Area 33
Target Market 34
Total Demand 34
Market Share 35
Selling Price
35
Sales Forecast 36
Marketing Strategy 37
Product Strategy 37
Pricing Strategy 38
Distribution Strategy 38
Promotional Strategy 39
Marketing Budget 40
Survey Data 41

5 MANAGEMENT STUDY 48
Form of Business 48
Organization Structure 48
Job Description and Specification 50
Gantt Chart 51
Pre-Operating Expense 52

6 FINANCIAL STUDY 54
Total Projected Cost 54
General Assumption 55
Break-even Point Analysis 55
Projected Cash Flow 57
Projected Income Statement 58
Projected Financial Position 59
Return of Investment 60

7 SOCIO-ECONOMIC BENEFIT 61

8 CONCLUSION AND RECOMMENDATION 62

Reference list 64
Appendices 67
Questionnaire 68
Curriculum Vitae 70
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LIST OF TABLES

TABLE PAGE

1 Distribution of the Respondents 18

2 Product Costing 25
3 Cost of Goods sold 28
4 Comparison of the Product with its Competitors 31
5 Supply of Competitors 34
6 Sales Forecast 36
7 Marketing Budget 41
8 Age of the respondents 41
8 Sex of the respondents 42
9 Status of the respondents 43
10 Occupation of the respondents 44
11 Family monthly income of the respondents 45
12 Respondents’ willingness in buying the product 46
13 Color preference of the respondents 46
14 Price preference of the respondents 47
15 Size preference of the respondents 48
16 Gantt Chart 52
17 Pre-Operating Expense 53
18 Total Projected Cost 54
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LIST OF FIGURES

FIGURE PAGE

1 New Product Development 4

2 Framework of the Study 9
3 Map of Iligan City 17
4 Process Flow Chart 22
5 Shop Layout 24
6 Image of the Product 30
7 Sticker of the Product 30
8 Location Map of Manufacturing Area 32
9 Location Map of Display Area 33
10 Zero Level Distribution Channel 39
11 One level Distribution Channel 39
12 Print Ad Layout 40
13 Organization Chart 49
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LIST OF SCHEDULES

SCHEDULE PAGE

1 Office Supplies 26
2 Executive Salary 26
3 Transportation Expense 26
4 Promotional Expense 27
5 Rental Expense 27
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Title : Fountina Orgamesa

Researchers : Rejane E. Balisi
: Nora Fe O. Escorial
: Stephanie Faith T. Reuyan
Degree : Bachelor of Science in Business
Administration
Major : Marketing Management
Date of completion : June 2020
Adviser : Ave Z. Danganan, DM ,LPT
Type of Document : Feasibility Study
No. of Pages : 81 pages
Host Institution : St. Michael’s College
Address, Region : Iligan City Region X

EXECUTIVE SUMMARY

This study aspires to create a fountain organizer made out of scrap wood,
to advocate possible solutions to the environmental problems, to create a
product that is feasible and to earn profit from the proposed project. The study
used descriptive method of research , random sampling and self-made
questionnaire. Based on the result , most of the respondents are female, young
adults, single and employed. Manufacturing site is at Purok Emmanuel, Tubod
Iligan City and the process starts by purchasing of raw materials, measure, cut,
polish, inspect and store the finished product. The product is available at
Michaelite Shoppe and retail outlets within Iligan City. Promotion is through
print advertisement and social network. The business is a sole proprietorship
and need outsource worker to do the major jobs. The business start its
operation on July 2020. Financial study reveals that total projected cost is
Php 14,924.04,monthly product cost is Php12,529.02, operating expenses is
Php 9,785.00 , pre-operating expenses is Php 1,135.02, average net income is
Php 65,206.88, break-even point in units 3 units, break-even point in sales Php
2,520.00 , return on investment is 437% and the payback period is in 3
months. RNS Crafts and Furnitures helps provide people financially by
creating job creation and income generating activity. Of the 100 respondents,
88% want to buy the product and it is concluded that the project is highly
feasible due the positive outcome of the survey. It is recommended that the
business will create more products out of scrap wood.

Number of words: 250

Keywords: Fountain, Organizer, Desk

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Chapter 1

PROBLEM AND IT’S SETTING

Introduction

Wood has been its material of choice for sustainable and

environmental friendly construction and manufacturing of products. And
along with it raises a new problem, according to the World Bank report
titled What a waste (2012),the Organization for Economic Co-operation
and Development countries generate 44% of global waste (D Hoornweg,
2012). It means, now that population is increasing at so fast a rate and
forests are shrinking rapidly, the whole tree must be utilized and not just
part of it. Wood waste is the portion of the waste stream that can include
discarded wood products, whole trees, stumps, or pruned branches
generated from activities related to construction, demolition, renovation,
packaging and manufacturing.

In this study it come up with a solution that would address this

problem and “Fountina Orgamesa “is the perfect solution to reduce wood

waste problem. Good solution of a desk piled with loose pens, heaps of

papers, and notes not just frustrates you but also affect your

productivity.

Fountina Orgamesa can be customized according to the user’s

preference from different styles, and color. It able to recognize the

significance of the recycled materials through scrap plywood and scrap

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acrylic glass to further conducted a study through developing a creative

and aesthetic products such as recycled materials. In this manner it can

helps to reduce waste problems and helps organize things. According to

Kathleen Vohs (2016), a clean desk can drive people to be more

conservative and safe in their approach. When you are surrounded by

such a sterile and organized environment, you aren’t as imaginative and

experimental – you stick to what you know.

The general objectives of the study are able to start a desk

organizer manufacturing business, and eco-friendly product. To provide

the customer’s satisfactions through making a good quality product, to

annually expand and strengthen the business cores. Improve and

stabilize the financial lives of the outsource workers, to advocate the

possible solutions to the environmental problems in the local population

and create a product that is feasible and to earn profit from proposed

project.

This study was conducted in summer class S.Y. 2020-2021.

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General Background of the Project:

Name of the Business
Name of Product
Name of Owner
Business Address
Contact Number/s
Email Address
Form of Business
Nature of Business
: RNS Crafts and Furniture
: Fountina Orgamesa
: Rejane E. Balisi
: Prk. Emmanuel, Tubod Iligan City
: 09154886305
: balisismile@gmail.com
: Sole Proprietorship
: Manufacturing and Distribution

Description of Business
RNS Crafts and Furniture is a business that creates unique
products that is made out of wood and scrap materials. Its product is a
desk organizer with a built in fountain. Fountina Orgamesa, the
proposed project, was manufactured at Purok Emmanuel, Tubod, Iligan
City. The owner does not only think of profit maximization but also look
into how the business would help to reduce the number of unused wood.
So the business is having assurance to follow the rules and regulations
in the government and financial capability of the business to support
and facing the economic growth for the business.

According to Laleicke (2018), increasing the momentum of value-

added wood waste utilization can be accomplished through strong,
exemplary concepts that capture and showcase all the benefits along the
chain of production. To enable a truly sustainable resource management,
it is essential to highlight the economic benefits for everybody: local
communities, businesses, and our environment.
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Theoretical Framework

This study is based on the Theory of “New Development Product”

by Maximilian Claessens. This theory is known as the, eight major steps

in the new product development process. Fountina Orgamesa is briefly

defined in the new product development process through conducting a

survey to 100 hundred respondents, recognizing the target market,

identifying the manufacturing details of the product, using the strategy

of 4Ps’ analysis based from the survey’s results, presenting the results to

the three panels from the College of Business Administration in Saint

Michael’s College, then the product will be evaluated and corrected, and

it will be distributed on consignment basis, lastly launching the product

through print and social media advertisements (Claessens, 2015)

Eight major steps in the new product development process.

Stage 2 Stage 3 Stage 4

Stage 1
Concept Marketing
Idea Generation Idea Screening Development & Strategy &
Testing Development
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Stage 6 Stage 5
Stage 8 Stage 7 Business Analysis
Commercialization Product
Test Marketing
Development

Figure 1: New Product Development

The 8 steps in the New Product Development Process

Stage 1. Idea Generation. The idea of Fountina Orgamesa was

from a combination design posted in the internet and its uniqueness

attracts the attention of the researchers to pursue a business. Survey

will be done to accumulate data whether the business is feasible.

Stage 2. Idea Screening. Fountina Orgamesa created to serve the

individual of Iligan City. The primary target markets are income earners

individual who are interested to buy exquisite products that are highly

functional. Cost plus method was used to calculate the full cost in

creating the product and a percentage of desired profit is added to set the

suggested selling price.

Stage 3. Concept Development and Testing. This step developed

the marketing and engineering details of manufacturing Fountina

Orgamesa and who is the decision making in the purchasing process.

RNS Crafts and Furniture is a sole proprietorship owned and managed

by Rejane E. Balisi and the sole decision maker of the business. She is

responsible for the entire business and is the sole recipient of the

business’s earnings and obligations (Smith, 2015). Manufacturing

developed Fountina Orgamesa, a unique and innovative product that

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utilizes scrap wood, bamboo and glass, as the main material to the

product. The cost of the product is set to the affordability of its

customers. Product costing will be based according to the cost of

producing involving direct, indirect, and packaging and labor cost.

Fountina Orgamesa conducted a survey to 100 people to evaluate the

product.

Stage 4. Marketing Strategy and Development. Fountina

Orgamesa launched within the market using the strategy of 4Ps. Product

strategy includes its uniqueness, durability and efficiency of the product,

its price is affordable because it will be set at the range preferred by the

customers, the distribution channels of the product is highly accessible

for the convenience of the buyers and it will be promoted through print

advertisement, personal selling, and social networks.

Stage 5. Business Analysis. The selling price of Fountina

Orgamesa was according upon the result of the survey as preferred by

the respondents. Competitor’s prices was assessed and acknowledged in

the setting of desired profit to make the product competitive in terms of

its price. Total demand based upon the woman’s population of Iligan

City and the supply of competitors will be calculated based to their

sales.

Stage 6. Product Development. The result will be presented to

three panel members from the College of Business Administration-St.

Michael’s College and pilot product will be evaluated and manuscript will
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be corrected to enhance the study. Production will commence after

necessary corrections are made and distribution to designated display

area will follow.

Stage 7. Test Marketing. Fountina Orgamesa was distributed to

retail outlets on consignment basis. Inventory of the supply will be

closely monitored to avoid lost sales. Business Development Time Frame

or Gantt chart illustrates the project schedules from the start of creating

the product up to displaying it to retail outlets illustrating that proper

planning is in place and implemented according to the time frame.

Stage 8. Commercialization. Launching of the product initiated

through print advertisement such as tarpaulin posted to retail outlets to

inform customers of the availability of the product, personal selling will

imply for promoting to friends and family, social networks was also used

to introduce the product to netizens. Netizens are active participants in

the online community of the internet. According to Sharron Nelson

(2018), Social media is quickly becoming one of the most important

aspects of digital marketing, which provides incredible benefits that help

reach millions of customers worldwide. Social platforms help you connect

with your customers, increase awareness about your brand, and boost

your leads and sales. With more than three billion people around the

world using social media every month, it’s no passing trend.

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Conceptual Framework

The study aimed to determine if Fountina Orgamesa is feasible. It

determined the profile of the respondents in terms of age, sex, civil

status, occupation, average family, monthly income. The framework of

the study would find out the different aspects of the project that includes

market, technical, management, financing, and socio economic aspects

of the study.

Technical study includes product classification product

specification, process flow, process description, shop lay-out, product

costing, operating expense and cost of goods sold. Market study includes

description of the product, comparison of the product with its

competitors, location of price, sale forecast, marketing strategy,

marketing budget and survey data. Management study includes form of

business, organizational structure, job description, job specification,

business income statement, cash flow, balance sheet, break-even point

analysis, return of investment and payback period. Socio-economic

aspect includes the projects contribution to the government and society.

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The findings of the study helped the proponents to provide

conclusion and recommendations which will be used among future

takers of the project.

Profile of the Respondents

> Age
>Sex
> Civil Status
> Occupation
> Average family monthly income
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Figure 2. Framework of the Study

Statement of the Problem

This study aimed to determine the feasibility of manufacturing

Fountina Orgamesa in Iligan City.

Specifically, this study aimed to answer the following:

1. What is the respondents profile in terms of

1.1 Age,

1.2 Sex,

1.3 Civil status,

1.4 Occupation and,

1.5 Average family monthly income?

2. Conduct of analysis in manufacturing Fountina Orgamesa

considering the following aspects:

2.1 Technical study,

2.2 Market study,

2.3 Management study,

2.4 Financial study?

3. What are the socio-economic aspects that the government and

society can benefit from the project?

4. What are the possible conclusion and recommendation that can be

drawn out the study?

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Scope and Delimitation

This study was focused in the assessment of Fountina Orgamesa

and to measure its feasibility to bring into a new business venture. This

feasibility study was conducted at the following barangays: Barangay

Tubod, Barangay Poblacion, and Barangay Villaverde, Iligan City. The

demographic profile is limited only to its sex, age, civil status, occupation

and its average monthly income. The Psychographic profile was limited to

the desirability of the respondents to buy and product and to its features

in terms of size, color and preferred price. A self-made questionnaire was

provided filled-up by the 100 respondents.

Significance of the study

The proposed project contributed to the advantages and benefit of

the purchasing product. Furthermore, it will help the relevance of the

study in business establishments, consumer, and society and eco-

friendly community. Thus, this study would benefit the following:

Entrepreneurs. This study will guide them on the economic

activity to come up with business decision. It will identify an economic

need, considers offering a business solution, resources required and

assumes the risk of either succeeding or failing that will provide profit.
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Community Officials. The community officials will be benefited

through informing them the potential products that are going to generate

income and create job to unemployed residents in the community.

Students. This study will give them an inspiration and knowledge,

thus contributing more ideas in doing feasibility study.

Local Government. Through this study, the business can

generate income through tax collected from business owners and

employees. Eventually this will affect the quality of life of the worker. It

also shares the growth in the economy of the city.

Future Researchers. That this study will be used for reference

and as related literature for future studies.

Faculty Members. They would be able to share the purpose of this

study to students and prospect researchers that would improve this

study in the future.

Researchers. They are the proponents who paved way in studying

and creating the proposed product to be able to create a profitable

business and create a unique product for a file organizer. The project will

give them an opportunity to start a feasible business.

Definition of Terms

The following are the terms that are commonly used in the study.

The words or group of words are being defined conceptually and

operationally in this study for clearer understanding.

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Glass. are generally hard, brittle, and transparent or translucent,

and are considered to be super cooled liquids rather than true solids.

(Free Dictionary, 2010). For the purpose of this study, the term refers to

the main material that used in this study.

Competitor. The term refers to any person or entity which is a

rival against another (Business Dictionary, 2016). For the purpose of this

study, the term refers to direct and indirect competitors who are selling

the same product namely: Gaisano, Mandaue Foam, Robinson’s Place

Iligan, and Unicity.

Customers. This term refers to a party that receives or consumes

products (goods or services) and has the ability to choose between

different products and suppliers (Business Dictionary, 2016). For the

purpose of this study, customers are those who want to buy the product.

Place. Location of the market and means of distribution used in

reaching it (Business Dictionary, 2016). For the purpose of this study,

this refers to the distribution channels of the product that will be

displayed in Michaelite Shoppe.

Price. The term refers to the amount of money expected, required,

or given in payment for something (Oxford Dictionary, 2013). For the

purpose of this study, the term refers to the suggested selling price of the

product amounting to Php885.00.

Product. The term refers to an article or substance that is

manufactured or refined for sale (Meriam Webster’s Dictionary, 2013).

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For the purpose of this study, the term refers to the proposed product

Fountina Orgamesa.

Proponents. The term refers to a person who argues or supports

something (Meriam Webster’s Dictionary, 2013). For the purpose of this

study, the term refers to the researchers proposing the creation of

Fountina Orgamesa.

Recycle. To treat or process (used or waste materials) so as to

make suitable for reuse (Dictionary, 2018). For this study, the

proponents used scrap woods and acrylic glass as raw materials in the

production of the Fountina Orgamesa.

Scrap Wood. Scrap Wood can be defined as pallets, lumber

residuals, etc. This is usually dimensional lumber that has been

damaged, or is too small to re-use (Peterson Corporation, 2019). For this

study, the term was used as one of the raw materials in the creation of

the proposed product.

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Chapter 2

RESEARCH METHOD

This aspect presents the methodology of the study. The topics

discussed in this chapter are the research design, locale of the study,

respondents, sampling procedure used, procedures used in the data

gathering, tool or instrument used in the data gathering and statistical

tools in analyzing the compiled data.

Research Design

In this study, the research method used was descriptive method of

research. Descriptive research was used to describe characteristics of a

population or phenomenon being studied. It does not answer questions

about how/when/why the characteristics occurred (Shields, 2013). It

gathers information that can be used for statistical inference on the

prospect respondents through data analysis and with that the researcher

can determine the consumers’ preference about the proposed project in

terms of its price, features and design and to analyze the buying behavior

of the prospect respondent later on.

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Locale of the Study

This study was conducted in various parts of Iligan City,

specifically Barangay Tubod, Barangay Poblacion, and Barangay

Villaverde. These Barangays were chosen because of the number of

population and it’s accessible for the researchers.

Barangay Poblacion is a barangay in the city of Iligan. Its

population as determined by the 2015 Census was 3,470. This

represented 1.01% of the total population of Iligan. The population of

Poblacion fell from 7,634 in 1990 to 3,470 in 2015, a decrease of 4,164

people. The latest census figures in 2015 denote a negative growth rate of

2.31%, or a decrease of 454 people, from the previous population of

3,924 in 2010 (Philatlas, 2020).

Barangay Tubod barangay in the city of Iligan. Its population as

determined by the 2015 Census was 31,913. This represented 9.31% of

the total population of Iligan. The population of Tubod grew from 22,473

in 1990 to 31,913 in 2015, an increase of 9,440 people. The latest

census figures in 2015 denote a negative growth rate of 0.22%, or a

decrease of 370 people, from the previous population of 32,283 in 2010

(Philatlas, 2020).

Barangay Villa Verde is a barangay in the city of Iligan. Its

population as determined by the 2015 Census was 5,498. This

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represented 1.60% of the total population of Iligan. The population of

Villa Verde fell from 7,230 in 1995 to 5,498 in 2015, a decrease of 1,732

people. The latest census figures in 2015 denote a negative growth rate of

0.41%, or a decrease of 121 people, from the previous population of

5,619 in 2010 (Philatlas, 2020).

Figure 3. Map of Iligan City

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The Respondents

There are one hundred (100) respondents of this study.

Specifically distributed to with:

Table 1. Distribution of Respondents

Place of Distribution No. of Respondents

Barangay Poblacion 30

Barangay Tubod 40

Barangay Villa Verde 30

Total 100

Sampling Procedure

The researchers used simple random sampling under the

probability sampling method wherein an unbiased representation of a

group must take place. A simple random sample (SRS) of size n consists

of in individuals from the population chosen in such a way that every set

of n individuals has an equal chance to be the sample actually selected

(Moore, 2013). Each sample has an equal probability of being chosen.

The researchers distributed the questionnaire to 100 residents in the

locale of Iligan City.

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Data Gathering

The researchers choose their prospect respondents randomly

coming from the locale of Iligan City. The researchers politely asked for

the prospect respondents’ permission to give them sufficient time to

explain accurately and swiftly what the product is for and what are the

questions that would part take in the questionnaire they are about to

answer. While the prospect respondents are reading and filling out the

given questionnaires, the researchers’ was ready to answer any possible

questions and queries, and to accept suggestions and ideas that the

prospect respondents would like to add. After fulfilled questionnaires

were gathered and prepared, the data were organized and compiled for

further analysis of the data.

Research Instrument

The major tool used in the survey was a self-made questionnaire.

The questionnaire includes the demographic profile of the prospect

respondents and their preferences in terms of the product design

features. After the data gathering, and compilation of questionnaire their

answers was tallied and equated as the basis for manufacturing the

product.
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Statistical Treatment of the Data

The researchers retrieved the questionnaires were tallied,

computed, tabulated and lastly interpreted and analyze based on the

requirements needed in the study.

The frequency was used in this study to observe a particular data

in the number of times the data occurs and is constructed by arranging

collected data in ascending order of magnitude with their corresponding

frequencies (What Is, 2015).

Percentages were also used in this study to have a clear and

comprehensible data since percentages can be compared more easily

than fractions (Platinum GMAT, 2016).

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Chapter 3

TECHNICAL STUDY

This part of the study presents the following data needed to

support the cost of RNS Crafts and Furniture to undertake the

development of the proposed product, Fountina Orgamesa. Necessary

information and data comprises the technical study: product

classification, product specification, process flow, process description,

shop lay-out, product costing, operating expenses and computation for

the cost of goods sold. These necessary information and data needs to be

computed and itemized in order to forecast the total projected cost

needed by Rejane E. Balisi for the business operation of the proposed

product.

Product Classification

The product classification of Fountina Orgamesa is shopping

goods. Consumers tend to take more time when purchasing a shopping

good produced by a business, and they might even travel to buy such

goods.

Product Specification
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The product is a desk fountain organizer, Fountina Orgamesa.

Submersible pump was used and serves as a device for the fountain. Its

dimensions are the following; height-6 inches, length-16 inches, width-6

inches. Chocolate Brown and Aqua Blue paint was used according to the

respondents preference. The target product capacity to be produced

every month is 21 units. The target market is the household population

of Iligan City. The price is Php 840.00.

Process Flow

These are the visual presentation of the legends in the steps of the

process flow in manufacturing the product and would be presented

through a chart.

Scrap Wood Scrap No Nails Paste, Nails Sandpaper,Varnish

and other Accessories
& Bamboo Glass and Paint

& Finishing
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LEGEND:

Storage of Materials Actual Process Inspection Process Direction Storage of Final

Flow Product

Figure 4: Process Flow Chart

Process Description

The following are the description of the procedure in creating

Fountina Orgamesa:

Step 1: Purchasing and gathering of all the raw materials needed,

namely: Scrap Plywood, Glass, Bamboo bricks, Nails, No Nails

Paste, Submersible Pump, Hose, Varnish, Cement, Sandpaper,

Stones and Plant.

Step 2: Cutting and measuring of the plywood and scrap glass to its

desired measurements.

Step 3: Assembling of the cut materials using no nails paste.

Assembling the glass for the aquarium.

Step 4: Polishing the product using sand paper to clean off rough edges

and make sure glass edges are smooth. Then, application of

Chocolate Brown and Aqua Blue paint and varnishing bamboo

bricks.

Step 5: Ensuring compliance, product inspection. Researchers primarily

focused on checking the appearance, construction and basic

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function of a product. Check if the Glass fits on its base and

make sure that it has no leakage. Check the drawers.

Step 6: Stored the finished product to retail outlets.

Shop Lay-out

A shop lay-out is a visual view of floor plan that shows the

manufacturing and product display area.

Figure 5: Shop Lay-out

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Table 2: Product Costing

Materials Unit Price Quantit Unit Cost Monthly Cost

y x 21 pcs.
Direct Materials :

Scrap Wood Php150.00/bdl 1/15 bdl Php10.00 Php210.00

Submersible Pump Php150.00/pc 1pc 150.00 3,150.00
Hose Php10.00/meter ¼ meter 2.50 52.50
No Nails Paste Php 70.00/ tube 1/10 7.00 147.00
tube
Nails #1 Php 15.00/ ( 500pcs) 30pcs 0.90 18.90
Stones Php 21.00/( 1pack) 1 pack 21.00 441.00
Aquarium Plants Php 23.00/ (4pcs) 4pcs 23.00 483.00
Varnish (Natural) Php 60.00/bot 1/3units 20.00 420.00
Bamboo tube Php 10.00/ 1/5units 2.00 42.00
1 meter
Paint (Chocolate Brown) Php 761.95/1ltr .05 38.10 800.10
liters
Scrap wood tube Php 190.00/1 bundle 2/100 3.80 79.80
Bamboo Bricks Pho 20.00/8pcs 8pcs 20.00 420.00
Drawer Knob Php 16.00/pc 1pc 16.00 336.00
Miniture House Php 199.00/50pcs 1pc 3.98 83.58
Paint (Blue) Php 500.00/1 ltr .05 liters 25.00 525.00

Aquarium Php 100.00/pc 1pc 100.00 2100.00

Total Direct Materials Php 443.28 Php 9,308.88

Indirect Materials :
Paintbrush # 3 Php 18.00 1/21 Php .86 18.06
units
Sand Paper Php6.00/ sheet ¼ sheet 1.50 31.50
Saw Php P 120.00 1/252 .48 10.08
units

Total Indirect Materials Php 2.84 Php 59.64

Total Materials Php 446.12 Php 9,368.52

Add: Packaging Cost
Sticker And Print Php 10.00 1/20 Php0.50 10.50
Units
 36

Total Packaging Cost Php 0.50 Php 10.50

Add: Labor Cost
Assembling Php 100.00 1 Unit Php 100.00 Php 2,100.00
Finishing Php 50.00 1 Unit 50.00 1,050.00
Total Labor Cost Php 150.00 Php 3,150.00

TOTAL PRODUCT COST Php 596.62 Php 12,529.02

Note: Other manufacturing materials Hammer, Wood chisel, Tape

measure, and are provided by the outsource worker.
 37

Operating Expenses

Schedule 1: Office Supplies

Supplies Quantity Price Total Cost
Ballpen 12 pcs Php 5.00 Php 60.00
Record book 1 pc Php 45.00 45.00
Calculator 1 pc Php 100.00 100.00
Total Php 205.00

Schedule 2: Executive Salary

Salary Expense Monthly Yearly
Executive Salary Php 500.00 Php 6,000.00

Schedule 3: Transportation Expense

Transportatio Monthly Yearly
n
Jeep Php7.50 X 10 Trips = Php75.00
Php45.00 X 12
Php15.00 X 2 Trips = months
30.00 =
Php900.00
Purchased of Materials
Purok Emmanuel to Talipapa
Php15.00
Talipapa to Purok Emmanuel
15.00
Tubod to City Proper
7.50
City Proper to Tubod
7.50
Delivery to Outlets (School)
Tubod to Michaelite Shoppe(SMC)
7.50
SMC to Tubod
7.50
Collection and Inventory
 38

Tubod to SMC
7.50
SMC to Tubod
7.50
Php75.00

Schedule 4: Promotional Expense

Supplies Quantity Price Total Cost
Print Ad 2x3 2 pc. Php140.00 Php 280.00

Schedule 5: Rental Expense

Monthly Yearly
Rental Expense Php 200.00 Php. 200.00 X 12 months

(Space and amenities)

= Php 2,400.00
 39

Table3. Cost of Goods Sold

Year 1 Year 2 Year 3
Cost of Goods
Sold Php150,348.24 Php157,865.65 Php165,758.93

Cost of Goods Sold per Month Php 12,529.02

Multiplied by no. of months 12
Cost of Goods Sold (Year 1) Php 150,348.24
Multiplied by increased per year .05
Php 7,517.41
Add: Cost of Goods Sold (Year 1) 150,348.24
Cost of Goods Sold (Year 2) Php 157,865.65
Multiplied by increased per year .05
Php 7,893.28
Add: Cost of Goods Sold (Year 2) 157,865.65

Cost of Goods Sold (Year 3) Php 165,758.93

Note: Cost of Goods Sold is projected to increase by 5% per annum.
 40

Chapter 4
MARKET STUDY

This chapter help you know the marketing aspect of the business.

The market study includes a brief description of the product, comparison

of the product with its competitors, location, market area, target market,

total demand and market share, selling price, sales forecast, marketing

strategy, marketing budget and survey data results of this study.

For the business to prosper, it should be given time and effort. The

proponent of the business must have desired creativity as so to be able

to provide quality product and service to its customers. The fulfillment of

the needs and wants of the customers or target market must be the key

objective of the business.

Description of the Product

Fountina Orgamesa is a desk fountain organizer made out of scrap

plywood, bamboo and glass. The “Fountina Orgamesa” named after from

the word fountain and combination words of organizer and table. This

product was intended to organize the table that provides soothing

relaxation and serenity. The indoor desk fountain organizer is not only

suitable for home decoration, but also can be used as a small fish tank.

In this manner of the creation of the product it gives the importance of

 41

recycling a product mainly made out from scrap materials. The process

of making in this product is made through natural process by cutting

and assembling each piece using traditional method.

Figure 6: Image of the Product

Figure 7: Sticker of the Product

 42

Comparison of the Product with its Competitors

There are some suppliers of desk organizer and fountains that can
be found in Iligan City. Most of these products are made out of plastic,
and glass that are harmful to the environment. Compared to the existing
products of the competitors, Fountina Orgamesa has a competitive
advantage when it comes to its affordability design and uniqueness.

Table 4: Comparison of the Product with its Competitors

Indirect Competitors
Comparison Fountina
Robinson’s Gaisano Lazada
Orgamesa
Place

Picture

Price Php1,975.48 Php1,560.00 Php3,812.00 Php840.00

Materials Resin and Plastic Resin Scrap

Plastic Wood,
Bamboo
and scrap
glass

Impact to Hazardous Hazardous Hazardous Economic-

the to the to the to the friendly
environment environment. environment. environment.
Features Expensive, Expensive, Expensive, Durable
 43

Fragile Fragile Fragile and elegant

Location
The manufacturing area of the proposed product is at Purok
Emmanuel, Barangay Tubod ,IliganCity. Furthermore, the product
display and retail store is located at the Michaelite Shoppe in Marian
Annex Building, underground, Saint Michael’s College, Quezon Avenue,
Iligan City. This location has been chosen for the following reasons:
accessible place for the customers; Michaelite Shoppe is a designated
outlet for feasibility study products; and no investment in building or
rental will be needed.

Figure 8: Location Map of Manufacturing Area

 44

Figure 9: Location Map of Display Area

Market Area
The market area of the product is Iligan City, an urbanized lone

district of Northern Mindanao. Iligan City’s approximate land area is

81,337 hectares (813.37 sq. km.) with 44 barangays. Iligan City’s

population is 322,821 (National Statistics Office, 2015). It has a

diversified culture and it is also considered as the home of various

cultural minorities: Higaonons, Maranao, Kolibugan and other

immigrants from other places. Cebuano or Visayan is the major

language. Tagalog and English are also widely understood. Iligan City is

very well-known as the “City of Majestic Waterfalls.” Maria Cristina Falls

is Iligan’s greatest heritage, and as well as being known as the “Mother of

 45

Industry” and “Fountainhead of Progress.” It is the main source of

industrial power which provides electricity in the city. (Dacumos, 2012)

Target Market

Fountina Orgamesa was made primarily to serve the household

population of Iligan City. The secondary target markets are women since

they are more inclined to use home decoration and desk supplies.

Total Demand and Market Share

Based on the National Statistics Office census in year 2015 the

number of household in Iligan City is 67,965 (household population

Iligan City). During the survey there are 88% out of total respondents

answered that they will buy the product.

Total Demand
Population ……………………………... 67,965
X .88
Total Demand …………………………. 59,809
Table 5: Supply of Competitors

Name No. of Products sold per Year

Robinson’s Place 1,500

Gaisano 1,400

Lazada 1,300

Total Supply 4,200

 46

Market Share
Total Demand ……… 59,809
Less: Supply ………. 4,200
GAP / Market Potential……… 55,609

Market Potential% = Gap/Total Demand

55,609
59,809
= 92.98%
Market Share: Production per year
Demand

Market Share: 252 units

59,809

= .42%

Selling Price
The selling price is based on “Cost-plus Pricing Method”. Under

this approach, the direct and indirect material costs will be summed up.

Add the mark-up percentage to create a profit margin in order to derive

the price of the product.

Product Cost = Php 596.62

Add: Mark-up (40%) = 238.65

Selling Price = Php 835.27 ~ Php 840.00

 47

Table 6. Sales Forecast

Year 1 Year 2 Year 3

SALES
FORECAST
Php 211,680.00 Php 232,848.00 Php 256,132.80

Price per product Php 840.00

Multiplied by no. of product produced in a month 21
Total sales in a month Php17,640.00
Multiplied by no. of month in a year 12
Sales (Year 1) Php211,680.00
Multiplied by projected cost .10
Total Php21,168.00
Add: Sales (Year 1) 211,680.00
Sales (Year 2) Php232,848.00
Multiplied by projected cost .10
Total Php 23,284.80
Add: Sales Year 2 232,848.00
Sales (Year 3) Php 256,132.80
Note:

Sales are projected to increase at 10% per annum.

Financial year or FISCAL YEAR will be used to calculate annual

financial statements in the study.

 48

Marketing Strategy

To understand that the total feasible market is the shares of the

market that can be taken provide every condition within the environment

is perfect. The projects marketing strategy is based on the product, price,

promotion and distribution strategy. This strategy is to deliver a unique

customer experience while achieving its goals (Kerin, 2012).

Product Strategy

RNS Crafts and Furniture used the product design strategy where

it focused on the design and quality to meet the customers’ desire and

need. It is the basis of a product lifecycle, and its performance for further

development. The product strategy allows a business to zero in on

specific target audiences. This process helps product leaders define key

product and consumer attributes (Aha Company, 2015). The proponents

see to it that they follow the quality on every product they produce so

that the customer will be satisfied on every product they purchase. The

proponents used scrap plywood that will help minimize problem of the

wood wastes. The product is unique and undergoes quality check that

guarantees the durability through retail outlets which is a good product

strategy to enter the market.

Pricing Strategy

This study used cost-plus mark-up strategy in setting the price.

The price is affordable because the business also adopted penetration

 49

pricing strategy which is setting a relatively low initial entry price, often

lower than the eventual market price, to attract new customers. The

strategy works on the expectation that customers will switch to the new

brand because of the lower price. Penetration pricing is most commonly

associated with a marketing objective of increasing market share or sales

volume, rather than to make profit in the short term. By lowering prices,

the business hopes to generate more sales volume by increasing the

number of units purchased and to make prices more appealing to

consumers when compared to the competition (Riley, 2014).

Distribution Strategy

This study used the first level distribution because they are using

the services of the Michaelite Shoppe and Stop Shoppe as their primary

distribution channel. It is sort of selective distribution because aside

from the Michaelite Shoppe , there are only few partners who will

distribute the product. The benefits of this type of distribution are under

selective coverage the marketer deliberately seeks to limit the locations in

which this type of product is sold. Another is the zero level distribution

since there are no intermediaries wherein the producer sells directly to

consumers; it is fast and economical since manufacturer has a full

control over distribution (India Class, 2013)

 50

Retailers
Producer Consumer

Figure 10: Zero Level Distribution Channel

Producer Consumer

Figure 11: One Level Distribution Channel

Promotional Strategy

In promoting the Fountina Orgamesa, print advertisement and

social networking sites were used. The print ads displayed at the

different distribution stores. A business page was created so that

customers could access information about the product and could directly

make orders. Word of mouth by satisfied customers is expected to

transpire because of the superior quality and uniqueness of the product.

To quote Claudia Osmond, a contributor of Goodreads, she said “They

say 90% of the promotion of a book comes through word of mouth. But

you've somehow got to get your book into the hands of those mouths

first!” (Osmond, 2013).

 51

Figure 12: Print-Ad Layout

Marketing Budget
Print advertisement were used in promoting the product. The

proponents also used the social media and the internet because it is

fast, reliable and easy to access. Hence, the only cost it will incur will

be for a total marketing budget of Php280.00. The tarpaulins will be

displayed in Michaelite Shoppe and in the manufacturing shop.

 52

Table 7: Marketing Budget

Promotion Strategy Unit /Price Amount

Print Ad (2x3sq.ft) 2 x P 140.00 P 280.00

Total P 280.00

Survey Data
A survey was conducted to 100 respondents in different

households in Iligan City to gather necessary information which could be

used in the development of this study.

Table 8: Age of the Respondents

Age Frequency Percentage

12-18 Adolescent 15 15

19-35 Young Adult 62 62

36-55 Adult 23 23

Total 100 100

Table 8 shows the frequency and percentage distribution in terms

of the age of the respondents. The result revealed that the highest

percentage of 62 belongs to the age bracket of 19-35 years old of the total

respondents.

The result implied that most of the respondents are young adults.

According to Cherry Kendra (2014) on her article of Erik Erickson Stages

of Psychosocial Development, individuals that belong to this stage are

 53

intimate, friendly, and loving persons. This trait of young is of great

advantage in business because of the influence that they have on the

purchases of others such as parents and friends.

Therefore, the proponent should consider the buying preferences of

young adults.

Sex Frequency Percentage

Male 17 17

Female 83 83

Total 100 100

Table 9: Sex of the Respondents

Table 9 shows the frequency and percentage distribution in terms

of the sex of the respondents. The result revealed that 83% are females.

The result implied that most of the respondents are women.

According from the National Statistics Office (2014) stated that the

females are more dominant in terms of population based to the records.

Gender has an important role in consumer behavior. Females are more

inclined into home decors and use various types of desk organizer to

make their office or rooms more organize and attractive.

Therefore, the proponent should produce more feminine designs of

the proposed product.

 54

Table 10: Status of Respondents

Civil Status Frequency Percentage

Single 63 63

Married 35 35

Separated 1 1

Widowed 1 1

Total 100 100

Table 10 shows the frequency and percentage distribution in terms

of the civil status of the respondents. The result revealed that 63% are

single.

The result implied that most of the target markets are single

individuals. “Singles can pick the leisure activities they want to engage

in. While it’s fun and important to try new things, their partner may have

expensive hobbies or travel standards that are a step up from your

choices,” (Valerie Rind, 2014).

Therefore, single people are the potential target market.

Table 11: Occupation of the Respondents

Occupation Frequency Percentage

Student 25 25

Self-Employed 16 16

Employee 56 56
 55

Unemployed 3 3

Total 100 100

Table 11 shows the frequency and percentage distribution in terms

of the occupation of the respondents. The result illustrates 56% are

employed.

The result implied that most of the respondents are income

earner. The customers have the capacity to buy the product because they

are jobholder.

Table 12: Average Family Monthly Income of the Respondents

Family Monthly Income Frequency Percentage

Php10,000.00-below 10 10

Php10,001-15,000.00 8 8

Php15,001-20,000.00 7 7

Php20,001-20,500.00 46 46

Php20,501-25,000.00 20 20

Php25,001 and above 9 9

Total 100 100

Table 12 shows the frequency and percentage distribution in terms

of the family monthly income of the respondents. The highest income of

the respondents is belongs to the range between Php20,001-20,500.00

with 46% equivalent percentage.

 56

The result implied that the proponents will set a price that suits

the respondent’s budget.

Therefore, the price of the proposed product should be within the

purchasing power of the respondents.

Table 13: Willingness to buy the Fountina Orgamesa

Desire to Buy Frequency Percentage

Yes 88 88

No 12 12

Total 100 100

Table 13 shows the frequency and percentage of the respondents

according to their buying preferences. The result revealed that 88% of

the respondents wanted to purchase Fountina Orgamesa.

The result implied that most of the respondents were willing to buy

the product. Therefore, the proponent can conclude that the proposed

product is feasible because of the positive result of the survey.

Table 14: Color Preference of the Proposed Product

Color Frequency Percentage

Brown 20 23

Natural 17 19

Others :

White 15 17

Chocolate Brown and Blue 36 41

Total 88 100
 57

Table 14 shows the frequency and percentage distribution in

terms of the color preference of the proposed product. The result revealed
that 41 percent of the respondents chose the mixed color of chocolate
brown and aqua blue.
The result implied that most of the respondents preferred mixed
color of chocolate brown and aqua blue color of Fountina Orgamesa.
Therefore, the proponent should produce the color preference of

the respondents.

Table 15. Size Range of product that respondents are willing to buy

Size of the Product Frequency Percentage

(15”x8”x7”) 30 34
(16”x6”x6”) 56 64
(18”x9”x7”) 2 2
Total 88 100

Table 15 shows the frequency and percentage distribution in terms

of the size preference of the respondents. The result revealed that 56 OR

64% of the total respondents preferred the size of 16” x 6” x 6”.

The result implied that the proponents will produce 16” x 6” x 6”.

Fountina Orgamesa that is more preferred by the respondents.

 58

Table 16: Price Preference of the Respondent

Price Frequency Percentage%

Php 300.00 – 500.00 30 34
Php 501.00 – 1,000.00 56 64
Php 1,001.00 – 1,400.00 2 2
Total 88 100

Table 16 shows the frequency and percentage distribution in terms

of the respondents’ price preference. The result revealed that the highest

percentage of 56 chose the Php 501.00 – 1,000.00 price range.

The result implied that more respondents preferred the average

price. Therefore, the proponents will set the price within the price

preference of the respondents.

 59

Chapter 5
MANAGEMENT STUDY

This part shows the organization and management aspect of this

study which includes the form of business organization, organizational

structure, job description and specification, business development time

frame and pre-operating expense.

Form of Business Organization

The business RNS Crafts and Furniture will be in the form of sole

proprietorship which is considered to be the simplest form relative to its

process and requirements. Rejane E. Balisi is the sole proprietor of the

business. She is taking the full responsibilities in terms of the

organizations sales growth and deficit. She is the one who handles the

procedures and oversees the whole business operations.

OWNER/MANAGER

LABOR
(Proponents)
 60

Figure 13. Organizational Structure

Job Description and Specification

 Owner/Manager

Job Description

The owner is responsible for the growth, stability, direction, and

daily operation of the business. She is the one responsible in planning

strategies to increase production. She is responsible for planning,

directing, and overseeing the operations and fiscal health of a business

unit, division, department, or an operating unit within an organization.

She is also responsible for overseeing and leading the work of a group of

people in many instances.

Job Specification

The owner/manager is the one to manage the business and make

sure that production meets the standard and the time frame be followed

by the worker. She also plan and evaluate department activities.

Maintains staff by recruiting, selecting, orienting, and training

employees. She also implement the cleanliness of the manufacturing

area and follow and see to it that rules and regulation of the business

will be followed all the time to ensure a safe, secure and legal work

environment. She see to it that quality products will be delivered on time

to the distributors.
 61

 Workers

Job Description

The workers must have the knowledge of the manufacturing the

product and health and safety regulations. Their responsibilities vary

depending on which sector they work in but could include anything from

feeding materials into machinery, assembling items, packaging items, or

storing items. They may also be tasked with performing quality checks

and cleaning and maintaining production equipment. They must have

good communication skills to deliver valuable linkage with retail outlet

owners.

Job Specification

They must have working experience, hardworking, physically fit

and good condition.

BUSINESS DEVELOPMENT TIME FRAME

A Gantt chart is a graphical depiction of a project schedule. It's is a

type of bar chart that shows the start and finish dates of several

elements of a project that include resources, milestones, tasks, and

dependencies. Henry Gantt, an American mechanical engineer, designed

the Gantt chart. (Mitchell Grant, 2019)

 62

Activities Months

June 2020 July 2020

WEEK WEEK WEEK WEEK

1 2 3 4

Planning
and
Organizing
Research
and Survey

Purchasing
of Materials

Production

Start of
display at
shop
Table 17: Gantt Chart

The chart shows the projected start and finish of the business

and summarizes it per month.

 63

The business starts by planning and organizing on the first

week. By the second week, results of the research and surveys are

analyzed. Purchasing of materials will be done on the third week then

production will begin onwards. On the next month we will be displaying

the finished product at the Michaelite Shoppe. When purchases are

done, preparation of financial statements is being process so as to

monitor the progress of the business.

Table 18: Pre-operating Expense

Pre-operating Expense Total Cost

Survey Cost :Printing of Original Copy of the Php 3.00

Questionnaires
Photocopy of questionnaires (100respondents x 60.00
Php0.60)
Cost of Pilot Product 596.62

Transportation Expense during the survey and

purchase of materials for the pilot product creation 144.00
Survey Php12.00 x 12 trips
- From Tubod to City and vice versa
- From City to Poblacion and vice versa

Encoding and Printing of Original Manuscript

Colored : 16 pages x Php 3.00 =Php 48.00 113.00
Black : 65 pages x Php1.00 = 65.00
81 pages
Photocopy of Manuscript 194.40
81 pages x 4 x Php0.60
Folders or clips used during the defense 24.00
 64

4 clips x Php 6.00

TOTAL PRE-OPERATING EXPENSE Php1,135.02

Chapter 6

FINANCIAL STUDY

This part shows the financial study of the project which reflects the
computation of the total projected cost, breakeven point analysis,
statement of cash flow, financial position, income statement, financial
position and return of investment.

Table 19: Total Projected Cost

ITEMS EQUITY TOTAL

Pre-operating Expenses : Php1,135.02

Product Cost per month 12,529.02

Operating Expenses :

Office Supplies Php 205.00

Executive Salary 500.00

Transportation Expense 75.00

Promotional Expense 280.00

Rental Expense 200.00 1,260.00

TOTAL PROJECTED COST Php 14,924.04

General Assumption

1. Business will start by July 2020.

2. The proprietor will have an initial investment in the amount of
Php 14,924.04 .
3. Sales projected are based on the sales forecast and will increase by
10% on the next succeeding year.
4. The operating expense will increase by 5% each year to cover
increases in fare, supplies and promotional expenses.
 65

5. Executive salary will remain constant for the next succeeding

years.
6. An increase of 5% based on the first business year will be added to
the cost of goods sold on the next succeeding years.

FINANCIAL ANALYSIS
Break-even Point Computation:
Fixed Cost

Executive Salary Php 500.00

Rental Expense 200.00

Total Fixed Cost Php 700.00

Variable Cost

Product cost (Monthly) Php 12,529.02

Office Supplies Expense (Php205.00/12) 17.08

Transportation Expense 75.00

Promotional Expense (Php280.00/12) 23.33

Total Variable Cost Php 12,644.43

Divided by Quantity Produced per month 21 units

Variable Cost / unit Php 602.12

Break-even Analysis:

Selling Price (SP) : Php 840.00

Variable Cost per unit (VC) : Php 602.12

 66

Total Fixed Cost (TFC) : Php700.00

Break-even Point = TFC .

SP – VC/unit

Break-even Point = Php 700.00

Php840.00 – Php602.12

= Php 700.00
Php 237.88

= 2.94 ~ 3 units

Break-even Point on Sales= Selling Price x Break-even Point

= Php 840.00 x 3 units
= Php 2,520.00
52
 57
53

RNS CRAFTS & FURNITURES

Statement of Cash Flow
For Year Ended 2021-2023

Year 2021 Year 2022 Year 2023

Cash Inflow:
Initial Investment Php 14,924.04
Sales 211,680.00 Php 232,848.00 Php256,132.80
Total Cash Inflow Php 226,604.04 Php 232,848.00 Php 256,132.80

Cash Outflow:
Cost of Goods Sold Php150,348.24 Php 157,865.65 Php 165,758.93
Executive Salary 6,000.00 6,000.00 6,000.00
Office supplies Expense 205.00 215.25 226.01
Transportation Expense 900.00 945.00 992.25
Promotional Expense 280.00 294.00 308.70
Rental Expense 2,400.00 2,520.00 2,646.00
Pre-Operating Expense 1,135.02
Total Cash Outflow Php161,268.26 Php167,839.90 Php175,931.89
Net Cash Flow Php 65,335.78 Php 65,008.10 Php 80,200.91
Add: Cash Beg. Balance ____________ 65,335.78 130,343.88
Cash End Balance Php 65,335.78 Php 130,343.88 Php210,544.79
 58
54

RNS CRAFTS & FURNITURES

Income Statement
For Year Ended 2021-2023

Year 2021 Year 2022 Year 2023

Sales Php 211,680.00 Php 232,848.00 Php 256,132.80

Less: Cost of Sales 150,348.24 157,865.65 165,758.93
Gross Profit Php 61,331.76 Php 74,982.35 Php 90,373.87

Less: Operating Expense

Executive Salary Php 6,000.00 Php 6,000.00 Php 6,000.00
Office Supplies Expense 205.00 215.25 226.01
Transportation Expense 900.00 945.00 992.25
Promotional Expense 280.00 294.00 308.70
Rental Expense 2,400.00 2,520.00 2,646.00
Pre-Operating Expense 1,135.02
Total Operating Expense Php 10,920.02 Php 9,974.25 Php10,172.96

Net Income Php 50,411.74 Php 65,008.10 Php 80,200.91

 59
55

RNS CRAFTS & FURNITURES

Statement of Financial Position
For Year Ended 2021-2023

Asset Year 2021 Year 2022 Year 2023

Cash Php 65,335.78 Php 130,343.88 Php 210,544.79

TOTAL ASSET Php 65,335.78 Php 130,343.88 Php 210,544.79

Liabilities and Owner’s Equity:

Owner’s Equity Php 14,924.04 Php 65,335.78 Php 130,343.88
Add: Net Income 50,411.74 Php 65,008.10 Php 80,200.91
TOTAL LIABILITIES A44
OWNER’S EQUITY Php 65,335.78 Php 130,343.88 Php 210,544.79
 1
56

Return on Investment Computation:

Return on Investment = Average Net Income
Total Projected Cost
Given:
1st year net income : Php 50,411.74
2nd year net income : Php 65,008.10
3rd year net income : Php 80,200.79
Total Projected Cost : Php 14,924.04

Average Net Income = Php 50,411.74 +Php 65,008.10+Php 80,200.79

3 years

= 195,620.63
3 years

= Php 65,206.88

Return on Investment = Average Net Income

Total Projected Cost

= Php 65,206.88
14,924.04
= 4.37 x100%
= 437 %

Payback Period Computation:

Payback Period = Total Projected Cost/Average Net Profit
1/12
= Php 14,924.04 /Php 65,214.35
1/12

= 0.23
0.08

= 2.86 ~ 3 months
 2

Chapter 7

SOCIO-ECONOMIC ASPECT

Fountina Orgamesa was studied with recycled material like scrap

plywood and scrap acrylic glass. Instead of disposing scrap wood , the

proponents used it as the main raw material of the fountain organizer, to

turn waste problem into a resource solution. The environmental benefits

of such reuse are obvious - not only is the service life of the wood

extended but in addition, it created life of the new product.

The Fountina Orgamesa also helps provide people financially by

creating job opportunities. The main goal of the business is to have high

income, owner and workers in the business need income to support their

own needs and also for their services rendered in business.

Fountina Orgamesa is created to promote “Waste to Wealth”. This

product promotes the 3R’s, Reuse, Recycle and Reduce. The researches

acknowledged that large supply of scrap wood and scrap acrylic glass are

in any junk shops and glass shops, due to its abundant supply the price

can be attainable.
 3

Chapter 8
CONCLUSIONS AND RECOMMENDATION

This study covers various areas making the product to be a multi-

purpose creation of RNS Crafts and Furnitures. Fountina Orgamesa does

not only promote waste solution but, it also creates job opportunities,

and it creates and generates income. The RNS Crafts and Furnitures

believes that building up business is a great opportunity for an employed

people have jobs, it will also be their opportunity of having another

source of income. It does not just accumulates profit but also to really

give the best design given that the preference of the market area prospect

respondents were also given priority in terms of the price, size and color

of the product. The product is feasible in terms of the financial aspect

because of its average net income which is Php65,206.88. It has a

breakeven point of 3 units and a breakeven point in sales of Php

2,520.00 that could be attain in 3 months. As for the value of the entire

project of the business it has a 437% return on investment, which means

that the business is efficient.

 4

According to the gathered data from the survey using a simple

random sampling through self-made questionnaire, this study is feasible

in Iligan City because 88% of the respondents said they are willing to buy

Fountina Orgamesa.

And with this research, with the idea concentrated and gathered

by the researcher new ideas and new possible studies are very much

appreciated.

Recommendations
The following are the recommendations based on the results of the
study;
1. The owner must look for more outlets stores to display their
product to provide for jobs.
2. The owner should build more engagement to their potential
customers in the parts of the country through Social Media and
website.
3. RNS Crafts and Furnitures must continue to produce more
innovative, artistic and unique product out of recycled materials.
4. RNS Crafts and Furnitures should create another designs
preferred by their target customers so that they can generate more
income and provide jobs.
 5

REFERENCE LIST

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Majestic-Waterfalls

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Free Dictionary. 2010. Definition of glass. Retrieved from

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 6

Laleicke, P. (2018). Wood waste, the challenges of communication and

Innovation. Retrieved from
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challenges-of-communication-and-innovation/
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webster.com/dictionary/proponent

Mitchell Grant (2019). Definition of gantt chart. Retrieved from:

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Moore (2013). Definition of simple random sample. Retrieved from

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National Statistics Office (2015). Iligan City: city of majestic waterfalls.
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Osmond (2013). Word of mouth books. Retrieved from

https://www.goodreads.com/shelf/show/word-of-mouth

Oxford Dictionary (2013). Definition of price. Retrieved from

https://www.lexico.com/definition/price
Peterson Corporation (2019). Definition of scrap wood. Retrieved from
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Philatlas (2018). Villaverde. Retrieved from

https://www.philatlas.com/mindanao/r10/iligan/tubod.html -

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Platinum GMAT (2016). GMAT sentence correction practice

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sentence_correction_questions
 7

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important for your business Retrieved from
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 8

APPENDICES

ST. MICHAEL’S COLLEGE

QUEZON AVENUE, ILIGAN CITY
COLLEGE OF BUSINESS ADMINISTRATION

June 2020

Dear Sir/Madam:

In partial fulfilment of the requirements of the Degree of Bachelor of

Science in Business Administration, we are presently conducting
feasibility study entitled: Fountina Orgamesa

In line with this, we would like to ask authorization to conduct a survey.

Your cooperation will be very much appreciated.

Thank you very much and God bless!

Respectfully yours,
Rejane E. Balisi
Nora Fe Escorial
Stephanie Faith Reuyan

Noted by:

Ave Z. Danganan, LPT DM

Feasibility Study Adviser
 9

ST. MICHAEL’S COLLEGE

QUEZON AVENUE, ILIGAN CITY
COLLEGE OF BUSINESS ADMINISTRATION

Praise Be Jesus and Mary!

We the researchers, third year undergraduate students at St.
Michael’s College, are currently conducting a survey on our Feasibility Study
entitled, “FOUNTINA ORGAMESA”. We would like to ask for your support
simply by filling out this questionnaire honestly. The data collected will provide
useful information for the creation of our product. We ensure you that all
information will remain confidential.

Respectfully yours,
Balisi, Rejane E.
Escorial, Nora Fe O.
Reuyan, Stephanie Faith T.

Name (Optional):
Part I. Demographic Profile
Age:
12-18 19-35 36-55 56 and above

Civil Status:
Single Married Divorced Widowed

Sex:
Male Female

Occupation:
Student Employee
Self-Employed Unemployed

Family Monthly Income:

Family Monthly Income:
Php 10,000.00 and below Php20,001.00 – Php 20.500.00
Php 10,001.00 – Php 15,000.00 Php 20,501.00 – Php 25,000.00
Php 15,001.00 – Php 20,000.00 Php 25,001.00 and above

Part II. Psychographic Profile

Are you willing to buy the product “Fountina Orgamesa” ?

(If not, do not proceed to the questions below)

Yes No
 10

What specific color do you prefer?

Brown Mahogany
Natural Others (Please specify) _________

What price and size do you prefer? ( Size::*L x W x H )

15 " x 8 " x 7 " 18 " x 9 " x 7 "
Php 300.00 – Php 500.00 Php 1,001.00 – Php 1,400.00

16 " x 6 " x 6 " 25 " x 14 " x 7 "

Php 501.00 – Php 1,000.00 Php 1,401.00 – Php 1,600.00

Noted by:

AVE Z. DANGANAN, DM AVE Z. DANGANAN, DM

Dean of College of Business Administration FS ADVISER
 11

Curriculum Vitae

PERSONAL BACKGROUND

Full Name : Rejane E. Balisi

Address : Purok Emmanuel, Tubod Iligan City
Gender : Female
Age : 26
Date of Birth : September 22, 1993
Civil Status : Married
Religion : Roman Catholic
Nationality : Filipino
Contact Number : 09754886305
Email Address : balisismile@gmail.com

EDUCATIONAL ATTAINMENT
Primary : Mayamot Elementary School
Brgy. Mayamot, Antipolo City
Secondary : Mayamot National High School
Brgy. Mayamot, Antipolo City
Tertiary : St. Michael’s College, Quezon Avenue, Iligan City
Department : Bachelor of Science in Business Administration
Major in Marketing Management
4th-Year

FAMILY BACKGROUND
Father’s Name : Rey Angelino Y. Balisi
Occupation :Construction Worker
Address :Purok San Antonio, Tubod Iligan City
Mother’s Name :Jannette N. Espinosa
Occupation :Housewife
Address : Purok San Antonio, Tubod Iligan City

SPECIAL SKILLS
Computer Skills : MSword, Powepoint, and Excel Proficient
Adobe Photoshop, Photo and Video Editing
Language Skills : Fluent in English written and oral
 12

Curriculum Vitae

PERSONAL PROFILE
Full Name : Stephanie Faith T. Reuyan
Address : Prk. Sto. Nino, Tubod, Iligan City
Gender : Female
Age : 21
Date of Birth : December 02, 1998
Civil Status : Single
Religion : Born Again Christian
Nationality : Filipino
Contact Number : 09559727645
Email Address : stephaniereuyan9@gmail.com

EDUCATIONAL ATTAINMENT
Primary : Iligan City Central School
Doña Maria, Phase 2 Baraas, Iligan City
Secondary : Corpus Christi Parochial School of Iligan

Corpus Christi Village, Tubod, Iligan City

Tertiary : St. Michael’s College, Quezon Avenue, Iligan City
Department : Bachelor of Science in Business Administration
Major in Marketing Management
4th-Year

FAMILY BACKGROUND
Father’s Name : Stephen J. Reuyan
Occupation :AFP
Address : Prk. Sto. Nino, Tubod, Iligan City
Mother’s Name : Mercy T. Reuyan
Occupation : Self – employed; Businesswoman
Address : Prk. Sto. Nino, Tubod, Iligan City

SPECIAL SKILLS
 Have a good leadership, management and decision-making skills to
come up with a good quality services.
 Have a good interpersonal communication skills.
 Proficient in Microsoft office applications (word, power point,
spreadsheet and excel).
 13

Curriculum Vitae
PERSONAL PROFILE

Full Name : Nora Fe O. Escorial

Address : Prk. Mangga, Tubod, Iligan City
Gender : Female
Age : 26
Date of Birth : March 20, 1994
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino
Contact Number : 09161029205
Email Address : norafeescorial@gmail.com

EDUCATIONAL BACKGROUND
Primary : Tubod Elementary School
Prk. Mangga, Brgy. Tubod,Iligan City
Secondary : Iligan City National High School
Gen. Wood St. Brgy. Mahayahay, Iligan City
Tertiary : St. Michael’s College, Quezon Avenue, Iligan City
Department : Bachelor of Science in Business Administration
Major in Marketing Management

FAMILY BACKGROUND
Father’s Name : Espiridion B. Escorial Jr.
Occupation : Habal-Habal Driver
Address : Prk. Mangga, Tubod, Iligan City
Mother’s Name : Norma O. Escorial
Occupation : Deceased
Address :N/A

SPECIAL SKILLS
Computer Skills: MSword, Powepoint, and Excel Proficient
Language Skills: Fluent in English written and oral