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i
A FEASIBILITY STUDY ON BIGASAN NI DONG ARVIN

AT PUROK 4C AND 4D, BARANGAY APOKON
Presented to the Faculty of

Department of Accounting Education of
UM Tagum College
Tagum City
In Partial Fulfillment of the Requirements

For the course STRATEGIC BUSINESS ANALYSIS
(ACC 223)
By:
BACOTE, REMERINE JOY C.

MALAYA, JOHN LLOYD J.
PETICAROS, AIZA JOYCE F.
SAYCON, CARYL KATE D.
SUMABAL, ARVIN ALEXIS G.
May 2020

i
APPROVAL SHEET
In partial fulfillment of the requirements for the course Strategic Business Analysis,
this study entitled:
A FEASIBILITY STUDY ON BIGASAN NI DONG ARVIN
AT PUROK 4C AND 4D, BARANGAY APOKON
has been prepared and submitted by REMERINE JOY C. BACOTE, JOHN LLOYD
J. MALAYA, AIZA JOYCE F. PETICAROS, CARYL KATE D. SAYCON and ARVIN
ALEXIS G. SUMABAL
APPROVED BY:
MARIA TERESA A. OZOA, CPA, MBA

Subject Teacher
Accepted in partial fulfillment of the requirements for the degree
Bachelor of Science in Accountancy
MARY CRIS L. LUZADA, CPA, MSA

Program Head - BSA
Gina Fe G. Israel, EdD

Dean of College

i
ACKNOWLEDGEMENT
The authors humbly express their deepest gratitude and appreciation to many
special people and friends whose encouragement and assistance in various ways
have contributed much to the completion of this study. A very special appreciation is
extended to the following:
To Prof. Maria Teresa A. Ozoa, their subject teacher and adviser, for her
untiring support, patience and generosity in imparting her knowledge and for her
constructive and inspiring comments and suggestions which have contributed to the
improvement and enrichment of this study,
To the authors’ parents, friends and loved ones, for their undying moral
support, encouragement and financial assistance,
Above the rest, to the LORD GOD ALMIGHTY, who blissfully endowed the
authors with wisdom, and to whom they owe their patience, determination and good
health in completing this study.
The Researchers

i
PREFACE
This undertaking is concerned primarily with rice retailing. The study is aimed at
establishing the marketing plan, production plan, organization and management
plan, and financial plan of a rice retailing business in a specific location, thereby
determining the cost and benefits associated with the project, its degree of
profitability, and ultimately, its feasibility.
This feasibility study will also serve as a guide and reference to students who
plan to engage in the same undertaking and to future entrepreneurs who may need
the data presented herein.

v
TABLE OF CONTENTS
TITLE PAGE i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
PREFACE iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FIGURES x
CHAPTER
1 INTRODUCTION 1
Objectives of the Study 1

Methodology 1
Scope and Limitations 1
2 EXECUTIVE SUMMARY 2
Brief Description of the Project 2

Brief Profile of the Proponents 2
3 MARKETING PLAN 3
Description of the Product 3

Location 3
Market Area 4
Primary Target Market 7
Historical Demand of Rice 7
Total Projected Demand 8
Historical Supply 9
Projected Supply 10

v
Demand and Supply Analysis 11

Market Share 12
Specific Supply of Rice 13
Projected Selling Price 14
Sales Revenue – Year 1 15
Summary of Sales Revenue 18
Marketing Strategy 19
Promotional Measures and Marketing 19
Distribution Strategy 19
Pricing Strategy 19
Product Strategy 20
Promotional Budget 20
4 PRODUCTION PLAN 21
Selling Process 21
Tools and Equipment 23
Furniture and Fixtures 24
Depreciation 25
Projected Supply Capacity 26
Terms and Conditions of Rice Purchase 27
Cost of Purchases - Year 1 27
Ending Inventory – Year 1 30
Terms and Condition of Asset Acquisition 33
Labor Availability 33
Labor Productivity 33
Manpower Requirements 33
Projected Salaries Expense 34

v
Projected Employee Benefits Expense 35

Business Permit and Licenses 36
Projected Business Permits and Licenses 37
Store Supplies 38
Projected Store Supply 39
Honorarium Expense 39
Rent Expense 40
Projected Operating Expense 41
5 ORGANIZATION AND MANAGEMENT PLAN 42
Form of Business Enterprise 42
Management and Organization Structure 42
Management Qualifications and Functions 44
6 FINANCIAL PLAN 45
Major Assumptions 45
Investment Cost 46
Projected Income Statement 47
Projected Statement of Financial Position 48
Projected Statement of Cash Flow 49
Financial Ratios 50
ANNEXES 53
APPENDICES 68

v
LIST OF TABLES
Table
1 Brief Profile of the Proponents 2
2 Rice Variety 3
3 Historical Demand 7
4 Total Projected Demand 8
5 Historical Supply 9
6 Projected Supply 10
7 Demand and Supply Analysis 11
8 Market Share 12
9 Specific Supply of Rice 13
10 Projected Selling Price 14
11 Sales Revenue – Year 1 15
14 Summary of Sales Revenue 18
15 Marketing Expense 20
16 Tools and Equipment 23
17 Furniture and Fixtures 24
18 Depreciation 25
19 Supply Capacity 26
20 Cost of Purchases – Year 1 27
23 Ending Inventory – Year 1 30
26 Salaries Expense 34
27 Projected Salaries Expense 34
28 Projected Employee Benefits Expense 35
29 Business Permit and Licenses 36
30 Projected Business Permit and Licenses 37
31 Store Supplies 38

i
32 Projected Store Supply 39

33 Honorarium Expense 39
34 Rent Expense 40
35 Projected Operating Expense 41
36 Organizational Job Description and Specifications 44
37 Daily Supply of Each Variety of Rice by Competitors 56
38 Summary of Cost, Markup Percentages and Selling
Price for Year 1 59
Price for Year 2 60
Price for Year 3 61
41 Employee Benefits Expense – SSS (Year 1) 62
43 Employee Benefits Expense – PhilHealth (Year 1) 62
44 Employee Benefits Expense – Pag-IBIG (Year 1) 63
45 Annual Total Employee Benefits Expense (Year 1) 63

lOMoA
LIST OF FIGURES
Figure
1 Vicinity Map 5
2 Store Layout 6
3 Technical Flow Chart 22
4 Organizational Chart 43

1
Chapter 1
INTRODUCTION
Objectives of the Study
The purpose of this feasibility study is to examine the viability of Bigasan ni Dong
Arvin in Purok 4-C and 4-D, Bermudez Golden Plains Subdivision, Barangay
Apokon, Tagum City. Specifically, this study aims to determine the cost and benefits
associated with the project, its degree of profitability, and whether or not it is
beneficial to pursue the project.
Methodology
Surveys and interviews were conducted to achieve the objectives of the study.
Since the target market of the business is the household population of the selected
puroks in Barangay Apokon, the proponents conducted on-site surveys and
interviews using convenience sampling. Moreover, competitors and suppliers are
also interviewed to gather factual information. The instruments used are attached to
the Appendices Section of this study.
Scope and Limitations
The scope of this feasibility study focuses on the four (4) aspects in the
business industry: the Marketing, Production, Organizational and Financial Aspect.
Moreover, the data used are limited only to what is provided by the respondents of
this study.

2
Chapter 2
EXECUTIVE SUMMARY
Brief Description of the Project
The proposed business, Bigasan ni Dong Arvin, is a rice retailing store. It is a
sole proprietorship type of business which merchandises rice grains of both local and
imported 160, 7-Tonner, Jasmine, Masipag and Mais. The target market are the
household around Purok 4-C and 4-D in Golden Plains Subdivision, Tagum City.
Brief Profile of the Proponents
Table 1. Brief Profile of the Proponents
EDUCATIONAL
NAME ADDRESS
BACKGROUND
Bacote, Remerine Joy C. 2nd Year - BS in Purok 13, Sta. Cruz, San
Accountancy Miguel, Tagum City
Malaya, John Lloyd J. 2nd Year - BS in Purok 4B, Gemini Village,

Accountancy Apokon, Tagum City
Peticaros, Aiza Joyce F. 2nd Year - BS in Purok 3, Betunlan St.

Accountancy Cambanogoy, Asuncion
Saycon, Caryl Kate D. 2nd Year - BS in Purok Bayanihan, Sto. Niño

Accountancy Gante Rd., Tagum City
Sumabal, Arvin Alexis G. 2nd Year - BS in Block 5, Lot 9, Sereno St., Via
Accountancy Vida Subd., Panabo City

3
Chapter 3
MARKETING PLAN
Description of the Product
Bigasan ni Dong Arvin is a rice retailing business which offers various types of
rice: local and imported 160, Jasmine, 7-Tonner, Masipag and Mais. Table 2 shows
the varieties of rice that the business offers with its description.
Table 2
Rice Variety
Variation Description
160 Variety known for its good eating quality
Jasmine An aromatic Thai long grain variety
7-Tonner Long and intermediate grain sizes
Masipag Variety offered by Magsasaka at Siyentipiko

Para sa Pag-Unlad ng Agrikultura (MaSiPag)
Mais Ground up corn eaten as rice
Location
Location is one of the key factors that determine the success of a business.
The proponents decided to situate Bigasan ni Dong Arvin in a populous area at
Purok 4-C and 4-D, Bermudez Golden Plains Subdivision, Barangay Apokon, Tagum
City. The business is renting a commercial space with a measurement of 64 square
meters. The space includes a toilet and storage room. The proponents chose this

4
site because the place is accessible and is a strategically competitive part of the
subdivision.
Market Area
The specific area covered in the business is Purok 4-C and 4-D, Bermudez
Golden Plains Sudvision, Barangay Apokon, Tagum City.

5
Figure 1. Vicinity

6
Figure 2. Store Layout

7
Primary Target Market
Bigasan ni Dong Arvin primarily targets the household population of Purok 4-
C and 4-D, Bermudez Golden Plains Subdivision, Barangay Apokon, Tagum City.
Historical Demand of Rice
Table 3 shows the historical demand for rice in years 2016, 2017 and 2018.
Information about the household population of the area was obtained from the
records of the barangay, whose records for year 2019 are not yet available. The
proponents also conducted a survey among the residents of the said subdivision
about their rice consumption. The residents were asked about the number of kilos of
rice they consume on time frames specifically identified by them. The proponents
then computed for the average number of kilos of rice consumed by the residents in
one month.
Table 3
Historical Demand
(In sack)
Rice Rice
Year Household Target Market consumption consumption
Population 89% per month per year
2016 422 376 0.86 3,880
2017 426 379 0.86 3,911
2018 464 413 0.86 4,262

8
Total Projected Demand
Table 4 shows the total projected demand of the households in Purok 4-C and
4-D, Barangay Apokon, Tagum City where Bermudez Golden Plains Subdivision is
located. Projected demand is shown as increasing by five percent (5%) each year.
The average increase is computed using the moving average method, the
computation of which is presented in Annex A of this paper. The total projected
demand is computed by multiplying the amount in the base year by the sum of one
and the average percentage increase.
Table 4
Total Projected Demand
(In sack)
Year Base Year Average % Total Projected

Increase Demand
1 4,262 5% 4,475
2 4,475 5% 4,699
3 4,699 5% 4,934

9
Historical Supply
Bigasan ni Dong Arvin has five competitors within the area namely Ayangco
Store, Jersy Store, JM Store, Llano Store, Mia Store and Rowena Store, all of which
are sari-sari stores. Table 5 shows the historical supply of rice of these competitors.
Data for Jersy and Rowena is not available for years 2016 and 2017 since they have
only established the business recently.
Table 5
Historical Supply
(In sack)
Competitor 2016 2017 2018
Ayangco 653 300 480
Jersy - - 73
Llano 288 481 480
Mia 480 720 360
Rowena - - 274
Total 1,421 1,501 1,667

1
Projected Supply
Presented in Table 6 is Bigasan ni Dong Arvin’s projected supply of rice. The
annual average percentage increase in rice supply is computed using the moving
average method, the computation of which is presented in Annex B of this paper.
The total projected supply is computed by multiplying the amount in the base year by
the sum of one and the average percentage increase.
Table 6
Projected Supply
(In sack)
Year Base Year Average % Projected Supply

Increase
1 1,667 8.35% 1,806
2 1,806 8.35% 1,957
3 1,957 8.35% 2,120

1
Demand and Supply Analysis
Table 7 shows the unsatisfied demand relative to the total demand and
supply, both historical and projected. The unsatisfied demand is the difference
between the annual demand and the annual supply. Both are increasing by the
years. From the figures, it can be asserted that the market is not yet saturated and
the area is a good location for the establishment of the business.
Table 7
Demand and Supply
Analysis (In sack)
Year Demand Supply Unsatisfied

Demand
Historical Value
2016 3,880 1,421 2,459
2017 3,911 1,501 2,410
2018 4,262 1,667 2,595
Projected Value
1 4,475 1,806 2,669
2 4,699 1,957 2,742
3 4,934 2,120 2,814

1
Market Share
Presented in Table 8 is the projected market share of the business for three
years. The supply capacity of rice per year, the number of sack of rice they can
supply into the market, is determined by the proponents based on their storage
capacity. The computation is presented in Annex C.
Table 8
Market Share
(In sack)
Year Unsatisfied Market Share Supply Capacity

Demand Per Year
1 2,669 79% 2,109
2 2,742 79% 2,166
3 2,814 79% 2,223

1
Specific Supply of Rice
Table 9 shows the percentage share of each variety of rice to be offered by
Bigasan ni Dong Arvin to the supply and the specific number of sacks for each
variety for three years. In setting the estimates of the percentages, the proponents
obtained information by interviewing different rice stalls within the area. The
computation for the percentage share of each variety of rice to supply is shown in
Annex D.
Table 9
Specific Supply of
Rice
(In sack)
Particulars Percentage Year 1 Year 2 Year 3
160 Imported 33% 696 715 734
160 Local 13% 274 282 289
7-Tonner 28% 591 606 622
Masipag 11% 232 238 244
Jasmine 12% 253 260 267
Mais 3% 63 65 67
Total 100% 2,109 2,166 2,223

1
Projected Selling Price
Table 10 displays the projected selling price for each variety of rice to be
offered for Years 1, 2 and 3. The selling prices are computed by multiplying the cost
by the markup percentages obtained from the competitors’ prices. Increase in selling
prices is attributable to the increase in the cost of purchases and increase in the
operating expenses of the business. The percentage increase in operating expenses
is added to the markup percentage and multiplied to the cost of purchase. A detailed
discussion on how the cost of purchases is computed is presented in Chapter 4.
Table 10
Projected Selling Price
Particulars Year 1 Year 2 Year 3
160 Imported P 38.00 P42.00 P46.00
160 Local 41.00 45.00 49.00
7-Tonner 41.00 45.00 49.00
Masipag 36.00 39.00 43.00
Jasmine 40.00 44.00 48.00
Mais 25.00 27.00 29.00

1
Sales Revenue – Year 1
Table 11 presents the projected sales revenue for Year 1, disaggregated into
the specific revenues that will be generated by each variety of rice offered by the
business. The variety 160 Imported, with the highest percentage share to the supply,
yields the highest revenue with P1,322,400. Total revenue for the year amounts to
P4,098,000.
Table 11
Converted
Particulars Percentage Quantity Year 1 Total Sales
in kilo
160 Imported 33% 696 34,800 1,322,400

P 38.00
160 Local 13% 274 13,700 561,700

41.00
7-Tonner 28% 591 29,550 1,211,550

41.00
Masipag 11% 232 11,600 417,600

36.00
Jasmine 12% 253 12,650 506,000

40.00
Mais 3% 63 3,150 78,750

25.00
Total 100% 2,109 105,300 4,098,000

1
Table 12 presents the projected sales revenue for Year 2, also disaggregated
into the specific revenues that will be generated by each variety of rice offered by the
business. Total revenue for the year amounts to P4,623,350.
Table 12
Particulars Percentage Quantity Converted Year 2 Total Sales

in kilo
160 Imported 33% 715 35,750 42.00 1,501,500
45.00 634,500
160 Local 13% 282 14,100
45.00 1,363,500
7-Tonner 28% 606 30,300
39.00 464,100
Masipag 11% 238 11,900
44.00 572,000
Jasmine 12% 260 13,000
27.00 87,750
Mais 3% 65 3,250
Total 100% 2,166 108,300 4,623,350

1
Table 13 shows the projected sales revenue for Year 3, also disaggregated
into the specific revenues that will be generated by each variety of rice offered by the
business. Total revenue for the year amounts to P5,182,700.
Table 13
Converted
Particulars Percentage Quantity Year 3 Total Sales
in kilo
160 Imported 33% 734 36,700 P46.00 1,688,200
708,050
160 Local 13% 289 14,450 49.00
1,523,900
7-Tonner 28% 622 31,100 49.00
524,600
Masipag 11% 244 12,200 43.00
640,800
Jasmine 12% 267 13,350 48.00
97,150
Mais 3% 67 3,350 29.00
Total 100% 2,223 111,150 5,182,700

1
Summary of Sales Revenue
The summary of sales revenue is presented in Table 14 below. Total sales is
expected to rise each year because of increase in demand for rice brought about by
the increase in the population of the area and increase in markup percentages due
to increase in operating expenses.
Table 14
Summary of Sales Revenue
Year Total Sales
1
P4,098,000
2
4,623,350
3
5,182,700

1
Marketing Strategy
Promotional Measures and Marketing
Despite the competitive location of Bigasan ni Dong Arvin, it will still promote
and market itself through dissemination of fliers at the target area inside the
neighborhood, Purok 4-C and 4-D in Bermudez Plains Subdivision, where the store
is located. The proponents believe that it is a good marketing strategy to intensify the
publicity of the business to the 464 household-composition of the subdivision as of
year 2018.
Moreover, the proponents believe that banners are still necessary promotional
measures of the business. Thus, tarpaulins will be positioned in strategic locations at
the selected puroks.
Distribution Strategy
The distribution of the product, varieties of rice grains, will be through direct
channel. Only the customers who will visit the store will be accommodated. Also,
Bigasan ni Dong Arvin is well-located. Thus, customers will find it easy and
convenient to transact with the store.
Pricing Strategy
Bigasan ni Dong Arvin is the only retail store in the target location. Thus, it
has the capacity to compete with its competitor when it comes to pricing since the
business’ supplier is a licensed rice warehouse. Moreover, despite the fact that the location
has a high competition, prices that will be offered will still be good and reasonable,
especially to the customers. The pricing that will be applied will be cost plus markup.

2
Product Strategy
Based on the data acquired, the respondents find the quality more important
than price. The business, as a product strategy, will offer a variety of bigas to
compete well with the market. Moreover, as discussed in pricing strategy, the prices
will also be competitive, alongside quality.
Promotional Budget
Table 15 shows the marketing expense that the proposed business will incur.
Table 15
Marketing Expense
Particulars Quantity Unit Cost Total Cost
Flyers 500 P2.00 P1,000.00
Tarpaulin 2 P100.00 P200.00
Total 502 P102.00 P1,200.00

2
Chapter 4
PRODUCTION PLAN
Selling Process
The selling process is defined as the complete steps that must take place in
order to execute a sales transaction. In selling the product, a step by step process is
followed from the selection of supplier to closing the deal with the customers.
The selling process of the rice retailing business is not complex because the
entity needs only to buy their inventory directly from suppliers. Moreover, customers
always engage in the purchase of rice for their daily consumption.
Figure 3 on the next page shows the selling process of Bigasan ni Dong
Arvin.

2
Receiving of Rice
Ordered
Payment for
Purchased Rice
Evaluation of
Rice Received
Storing of Pricing
Rice and Selling of Rice
Rice is
Sold
Figure 3. Technical flow chart

2
Tools and Equipment
Table 16 shows the tools and equipment to be used by Bigasan ni Dong Arvin
in their operations as well as their respective acquisition costs and quantity to be
purchased for each equipment. Total acquisition costs equal P 4,310.00. This will be
incurred in the first year of the operations.
Table 16
Tools and Equipment
Equipment Quantity Price
Wall Fan 1 700.00
Exhaust Fan 1 460.00
Fire Extinguisher 1 1,200.00
Weighing Scale (60kg.) 1 1,450.00
Rice Scoop 2 500.00
TOTAL 4,310.00

2
Furniture and Fixtures
Table 17 shows the proposed furniture and fixtures to be used by the
business in its operations. Also presented in the table is the quantity for each item of
furniture and fixture to be purchased and its purchase price.
Table 17
Furniture and Fixtures
Furniture and Fixture Quantity Price
Table 1 1,500.00
Chair 3 750.00
Filing Cabinet 1 700.00
Rice Box 1 1,000.00
TOTAL 3,950.00

2
Depreciation
Table 18 presents the depreciation expense of Bigasan ni Dong Arvin’s items
of property, plant and equipment. The annual depreciation is computed using the
straight-line method in which the cost of asset is divided by its estimated useful life.
Table 18
Depreciation
Estimated
Assets Amount Useful Life Year 1 Year 2 Year 3
Wall Fan 700.00 5 140.00 140.00 140.00
Exhaust Fan 460.00 5 92.00 92.00 92.00
Weighing Scale 1,450.00 3 483.00 483.00 484.00
Rice Scoop 500.00 5 100.00 100.00 100.00
Table 1,500.00 10 150.00 150.00 150.00
Chair 750.00 10 75.00 75.00 75.00
Filing Cabinet 700.00 7 100.00 100.00 100.00
Rice Box 1,000.00 5 200.00 200.00 200.00
TOTAL 7,060.00 1,340.00 1,340.00 1,341.00

2
Projected Supply Capacity
Supply capacity is the aggregate volume of product a business can supply
into the market for a specific period. It is determined by the proponents based on the
storage capacity. Table 19 shows the planned capacity. It assumes that there is a
3% average increase in supply capacity per year.
Table 19
Supply Capacity
Year 1
Rice Variety Monthly Supply Annual Supply

160 Imported 58 696
160 Local 23 274
7-Tonner 49 591
Masipag 19 232
Jasmine 21 253
Mais 5 63
Year 2
160 Imported 60 715

160 Local 24 282
7-Tonner 51 606
Masipag 20 238
Jasmine 22 260
Mais 5 65
Year 3
160 Imported 61 734

160 Local 24 289
7-Tonner 52 622
Masipag 20 244
Jasmine 22 267
Mais 6 67

2
Terms and Conditions of Rice Purchase
The proposed business, Bigasan ni Dong Arvin purchases supply through
cash basis to avail of the free delivery service offered by the supplier for wholesale
orders.
Cost of Purchases – Year 1
Table 20 shows the cost of purchases for year 1 by the proposed business.
The total quantity to be purchase for year 1-3 will base on the supply capacity and
the order size of the proposed business. The table shows that there is P3,745,650
total cost of purchase.
Table 20
Particulars % Share Quantity Cost per Sack Total Cost
160 Imported 33% 700 P1,800 P1,260,000
160 Local 13% 275 1,850 508,750
7-Tonner 28% 594 1,850 1,098,900
Masipag 11% 233 1,600 372,800
Jasmine 12% 254 1,800 457,200
Mais 3% 64 750 48,000
Total 100% 2,120 P3,745,650

2
Table 21 shows the cost of purchases for Year 2 by the proposed business.
The cost per sack is expected to increase by 6.765% due to inflation related to food
and non-alcoholic beverages. The table shows that there is P4,113,064 total cost of
purchase.
Table 21
160 Imported 33% 720 P1,922 P1,383,840
160 Local 13% 283 1,975 558,925
7-Tonner 28% 610 1,975 1,204,750
Masipag 11% 240 1,708 409,920
Jasmine 12% 262 1,922 503,564
Mais 3% 65 801 52,065
Total 100% 2,180 4,113,064

2
Table 22 shows the cost of purchases for Year 3 by the proposed business.
The cost per sack is expected to increase by the same rate as Year 2. The table
shows that there is P4,512,291 total cost of purchase.
Table 22
160 Imported 33% 739 P2,052 P1,516,428
160 Local 13% 291 2,109 613,719
7-Tonner 28% 627 2,109 1,322,343
Masipag 11% 247 1,824 450,528
Jasmine 12% 269 2,052 551,988
Mais 3% 67 855 57,285
Total 100% 2,240 4,512,291

3
Ending Inventory – Year 1
Table 23 shows the ending inventory for the first year of operation of the
proposed business. The data shown is derived from the data collected by the
respondents with the existing competitors of the proposed area.
Table 23
Ending Unit Ending

Beginning
Particulars Purchases Sold Inventory Cost Inventory
Inventory
(In sack) per kilo on Peso
160
0 700 696 4 P7,200.00
Imported P 36.00
160 Local 0 275 274 1 1,850.00

37.00
7-Tonner 0 594 591 3 5,550.00

37.00
Masipag 0 233 232 1 1,600.00

32.00
Jasmine 0 254 253 1 1,800.00

36.00
Mais 0 64 63 1 750.00
15.00
Total 0 2120 2,109 11 18,750.00

3
Table 24 shows the ending inventory for the 2nd year of the proposed
business. It also reflects the ending inventory of the previous year (1) as the
beginning inventory of the current year (2). Sold units are based on the computed
market share of the proposed business in the vicinity. The unit cost per kilo is
derived from the projected purchase price of rice on Year 2 in connection to the
projected increase in inflation rate.
Table 24
Ending Unit Ending

Beginning
Inventory
(In sack) per on Peso
kilo
160
4 720 715 9 17,298.00
Imported P 38.44
160 Local 1 283 282 2 3,950.00

39.50
7-Tonner 3 610 606 7 13,825.00

39.50
Masipag 1 240 238 3 5,124.00

34.16
Jasmine 1 262 260 3 5,766.00

38.44
Mais 1 65 65 1 16.01 800.50
Total 11 2,180 2,166 25 46,763.50

3
Table 25 shows the ending inventory for the 3rd year of the proposed
business. It also reflects the ending inventory of the previous year (2) as the
beginning inventory of the current year (3). Sold units are based on the computed
market share of the proposed business at its vicinity. The unit cost per kilo is derived
from the projected purchase price of rice on Year 3 in connection to year’s projected inflation
rate.
Table 25
Ending Unit Ending

Beginning
Inventory
(In sack) per kilo on Peso
160
9 739 734 14 P28,728.00
Imported P 41.04
160 Local 2 291 289 4 8,436.00

42.18
7-Tonner 7 627 622 12 25,308.00

42.18
Masipag 3 247 244 6 10,944.00

36.48
Jasmine 3 269 267 5 10,260.00

41.04
Mais 1 67 67 1 855.00
17.10
Total 25 2,240 2,223 23 84,531.00

3
Terms and Condition of Asset Acquisition
The equipment and accessories to be acquired will be purchased on a cash
basis. It is practical for the entity to buy the needed equipment on a cash basis.
Labor Availability
Bigasan ni Dong Arvin, as a retail store, needs two (2) employees; one (1)
store attendant and one (1) cashier. The proponents believe that there must be a
separate personnel assigned in the cashiering services aside from the store
attendant to ensure the smooth flow of transactions.
Labor Productivity
The store attendant must not only be good at accommodating the customers,
but should also be skillful in carrying sacks of rice. The cashier must also be willing
to help the store attendant during peak seasons accommodate the customers to
ensure the productivity of the business.
Manpower Requirements
Table 26 shows the salaries expense that will be incurred by the business
during its first operating year. The cashier receives salary that is higher than that of
the store attendant because its job requires knowledge and skills. Moreover, the
basic rate per month is based on the rates applied by similar rice retailing
businesses.

3
Table 26
Salaries Expense
Number of Basic rate per Total Annual

Position
employees month Cost
Store Attendant 1 6,900.00 82,800.00
Cashier 1 7,500.00 90,000.00
Total 14,400.00 172,800.00
Projected Salaries Expense
According to a survey conducted by Mercer, it is projected that a six (6)
percent increase in salaries and wages is expected in consumer goods industry in
the next year. Table 27 shows the projected labor cost for the next three (3) years.
Same rate was applied during Year 3.
Table 27
Projected Salaries Expense
Year Total Amount
1 172,800.00
2 183,168.00
3 194,158.08

3
Projected Employee Benefits Expense
One of the necessary expenses that the proposed business will incur is the
mandatory benefits to be paid by the employer as its contribution to the total
employee benefits. Bigasan ni Dong Arvin offers SSS, PhilHealth and Pag-IBIG
benefits to both the cashier and the store attendant.
The computations are presented in the Annex Section of this study.
Table 28
Employee Benefits Expense
Year 1 Year 2 Year 3
Cashier Store Cashier Store Cashier Store

Attendant Attendant Attendant
SSS ER 7,320.00 6,840.00 7,800.00 7,320.00 8,800.00 7,800.00
PhilHealth 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00

ER
Pag-IBIG 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00

ER
10,770.00 10,290.00 11,250.00 10,770.00 12,250.00 11,250.00
TOTAL 21,060.00 22,020.00 23,500.00

3
Business Permit and Licences
For a business to operate legally, one must register itself to the different
offices in the city. Table 29 shows the breakdown of expenses before a business can
start its operations.
Table 29
Business Permit and Licenses
Office Requirements Amount
Department of Trade
and Industry Business Name Registration Certificate 2,000.00
Registration Fee 500.00
Certification Fee 100.00

Bureau of Internal
Documentary Stamp 15.00
Revenue
Printing of Receipt 1,800.00
Sanitary Permit 900.00
.2% of Capital 770.00
Business Permit 2,000.00

Mayor’s
Local Government Unit
Permit Garbage Collection Fee 2,500.00
Occupational Tax 360.00
Police and Health Clearance 905.00
Barangay Clearance 500.00

Barangay Hall Cedula 100.00
TOTAL 12,450.00

3
Projected Business Permit and Licenses
In the following years, however, the business will only pay for the renewal of
the business permit, garbage collection fee and, police and health clearance. Costs
related to business permits and licenses will therefore decrease to P5,405.
Table 30
Projected Business Permit and Licenses
Year Total Amount
1 12,450.00
2 5,405.00
3 5,405.00

3
Store Supplies
Aside from tools, equipment, furniture and fixtures, store supplies are also
essential in the operations of the business. Table 31 shows the supplies Bigasan ni
Dong Arvin will need for its business to operate.
Table 31
Store Supplies
Particulars Unit Cost Quantity Annual Cost
Cellophane 40.00 50 packs 2,000.00
Sack 10.00 20 200.00
Plastic straw rope 80.00 3 240.00
Calculator 250.00 1 250.00
Notebook 15.00 1 15.00
Ballpoint pen 80.00 1 box 80.00
Scissors 50.00 1 50.00
Receipt 30.00 15 450.00
Dustpan 50.00 1 50.00
Brooms 33.33 3 100.00
Trash can 150.00 1 150.00
Total 3,585.00

3
Projected Store Supply
Table 32 shows the projected store supplies expense that Bigasan ni Dong
Arvin will incur in its operations. There is an average increase of 5% in the operating
expenses relative to increased demand.
Table 32
Projected Store Supply
Year Annual Cost
1 P3,585.00
2 3,764.25
3 3,952.46
Honorarium Expense
The business shall require the professional service of a bookkeeper on call for
records purposes. It will therefore incur honorarium expense in the amount of
P1,000.00 per month. Table 33 presents the honorarium expense that will be
incurred by the business for three years.
Table 33
Honorarium Expense
Monthly
Position honorarium Year 1 Year 2 Year 3
Bookkeeper P1,000.00 P12,000.00 P12,000.00 P12,000.00

4
Rent Expense
Table 34 presents the amount of rent expense that Bigasan ni Dong Arvin will
incur for the lease of stall occupied by the business in the target location. Included in
the payment for rent is the payment for utilities expense incurred.
Table 34
Rent Expense
Year Monthly rent Annual rent
1 P10,000.00 120,000.00
2 10,000.00 120,000.00
3 10,000,00 120,000.00

4
Projected Operating Expense
Table 35 shows the summary of all the expenses the business will incur in its
operations for three years.
Table 35
Projected Operating Expense
Particulars Year 1 Year 2 Year 3
Business permit and P12,450.00 P5,405.00 P5,405.00

licenses
Salaries expense 172,800.00 183,168.00 194,158.08
Employee benefits expense 21,060.00 22,020.00 23,500.00
Store supplies expense 3,585.00 3,764.25 3,952.46
Honorarium expense 12,000.00 12,000.00 12,000.00
Rent expense 120,000.00 120,000.00 120,000.00
Depreciation expense 1,340.00 1,340.00 1,341.00
Marketing expense 1,200.00 - -
TOTAL 344,435.00 347,697.25 360,356.54

4
Chapter 5
ORGANIZATION AND MANAGEMENT PLAN
Form of Business Enterprise
Bigasan ni Dong Arvin is a sole proprietorship form of business. Since it is a rice
retailing business, business operations are not that complex and it does not need
high amount of capital investment. The owner is the only person entitled to make
decisions needed in the operations of the business and, at the same time, will enjoy
all the profits and incur all the losses of the business.
Management and Organization Structure
There are only four (4) personnel involved in the business. Considering the
simplicity of the operations, the owner will only need two (2) regular employees
which are the store attendant and the cashier. Moreover, an on-call bookkeeper will
also be hired. Figure 4 shows the proposed organizational chart.

4
Store Owner
Bookkeeper
Store Attendant Cashier
Figure 4. Organizational Chart

4
Management Qualifications and Functions
As presented in the Figure 4, the proposed business will only need two (2)
employees which are the cashier and store attendant. Table 36 shows the job
description and specifications of the positions needed.
Table 36
Organizational Job Description and Specification
Position Job Description Job Specification
Cashier  Handles the payments  High School graduate

and receipts to customers  Ability to handle
 Balances the cash transactions accurately and
drawer at the beginning and responsibly
end of work shift  Skilled in Basic Math
 Trustworthy
Store  Attends to customer’s  Customer-service skill

Attendant demands  Ability to carry and lift sacks

4
Chapter 6
FINANCIAL PLAN
Presented in this chapter are the projected income statement, balance sheet
and cash flow statement for the first three years of operation of Bigasan ni Dong
Arvin. Relevant financial ratios are also shown to determine the level of profitability of
the business in its first years of operation. The required initial capital investment is
also computed.
The following are the major assumptions with which the proponents have
based their computations.
Major Assumptions
1. Selling price for rice is assumed to increase by 2.46% in Year 2 and 3% in
Year 3 relative to the increase in operating expenses.
2. Market share is assumed to be 79% of the unsatisfied demand per year.
3. Projections are computed using moving average method.
4. Depreciation is computed using straight line method.
5. Salaries expense is assumed to increase by 6% per year.
6. There will be no increase in rent expense. Utilities expense is included in the
amount of rent paid.
7. There will be no transportation expense incurred.
8. There will be no increase in honorarium expense.
9. Store supplies expense is assumed to increase by 5% per year.

4
Investment Cost
Bigasan ni Dong Arvin has an initial capital investment of P385,000.
Pre-Operating Expenses
Business Permit and Licenses P12,450.00
Prepaid Rent (3 months) 30,000.00
Initial Fixed Assets
Tools and Equipment 4,310.00
Furniture and Fixtures 3,950.00
Initial Working Capital
Purchases (1st month) 311,400.00
Operating Expenses (1st month of operation)
Salaries expense 14,400.00
Store supplies acquisition 3,585.00
Honorarium expense 1,000.00
Marketing expenses 1,200.00 20,185.00
Cash 2,705.00
Total investment cost 385,000.00

4
BIGASAN NI DONG ARVIN

Projected Income Statement
For the years ended Dec. 31, 20A-20C

Sales 4,098,000.00 4,623,350.00 5,182,700.00
Less: Cost of Goods Sold
Beginning inventory - 18,750.00 46,763.50
Add: Purchases 3,745,650.00 4,113,064.00 4,512,291.00
Cost of goods available for sale 3,745,650.00 4,131,814.00 4,559,054.50
Less: Ending inventory 18,750.00 46,763.50 84,531.00
Cost of Goods Sold 3,726,900.00 4,085,050.50 4,474,523.50
Gross profit 371,100.00 538,299.50 708,176.50
Less: Operating Expenses
Salaries Expense 172,800.00 183,168.00 194,158.08
Employee Benefits Expense 21,060.00 22,020.00 23,500.00
Rent Expense 120,000.00 120,000.00 120,000.00
Supplies Expense 3,585.00 3,764.25 3,952.46
Honorarium Expense 12,000.00 12,000.00 12,000.00
Business Permit and Licenses 12,450.00 5,405.00 5,405.00
Depreciation Expense 1,340.00 1,340.00 1,341.00
Marketing Expense 1,200.00 - -
Total Operating Expense 344,435.00 347,697.25 360,356.54
Operating Profit (Loss) 26,665.00 190,602.25 347,819.96

Income Tax Expense - - -
Net Income 26,665.00 190,602.25 347,819.96

4

Projected Statement of Financial Position
For the years ended Dec. 31, 20A-20C

ASSETS
Current Assets
Cash 385,995.00 549,923.75 861,317.21
Inventory 18,750.00 46,763.50 84,531.00
Total Current Asset 404,745.00 596,687.25 945,848.21
Noncurrent Assets
Equipment 4,310.00 4,310.00 4,310.00
Furniture and Fixtures 3,950.00 3,950.00 3,950.00
Total 8,260.00 8,260.00 8,260.00
Less: Accumulated Depreciation (1,340.00) (2,680.00) (4,021.00)
Total Noncurrent Assets 6,920.00 5,580.00 4,239.00
Total Assets 411,665.00 602,267.25 950,087.21
OWNER’S EQUITY
Beginning Capital 385,000.00 411,665.00 602,267.25
Add: Net income 26,665.00 190,602.25 347,819.96
Total 411,665.00 602,267.25 950,087.21
Less: Withdrawals - - -
Total Owner’s Equity 411,665.00 602,267.25 950,087.21

4

Projected Statement of Cash Flow
For the years ended December 31, 20A-20C

Cash flows from operating activities:
Cash inflows
Cash received from customers 4,098,000.00 4,623,350.00 5,182,700.00
Cash outflows
Cash payments to suppliers 3,745,650.00 4,113,064.00 4,512,291.00
Salaries paid 172,800.00 183,168.00 194,158.08
Employee benefits paid 21,060.00 22,020.00 23,500.00
Rent paid 120,000.00 120,000.00 120,000.00
Payment for purchase of supplies 3,585.00 3,764.25 3,952.46
Honorarium paid 12,000.00 12,000.00 12,000.00
paid Business permit and licenses 12,450.00

5,405.00 5,405.00
Advertising paid 1,200.00 - -
Income tax paid - - -
Total cash outflows 4,088,745.00 4,459,421.25 4,871,306.54
Net cash provided (used) 9,255.00 163,928.75 311,393.46
Cash flow from investing activities:

Acquisition of furniture and
fixtures (3,950.00) - -
Acquisition of tools and

equipment - -
(4,310.00)
Net cash used (8,260.00) - -
Cash flow from financing activities:

Initial investment 385,000.00 - -
Net cash provided 385,000.00 - -
Net increase in cash balance 385,995.00 163,928.75 311,393.46

Add: Cash balance, beg. - 385,995.00 549,923.75
Cash balance, ending 385,995.00 549,923.75 861,317.21

5
Gross Profit Margin
Gross profit is the difference between total revenue and cost of goods sold
(COGS). It is the company’s profit before deducting operating expenses. The gross profit
margin is the ratio of gross profit to the total revenue expressed as a percentage. It
determines the value of the company’s incremental sales and guides in pricing decisions.
Bigasan ni Dong Arvin’s gross profit margin is shown as increasing year after
year. This indicates that the selling prices of the business’ products relative to the cost of
purchases are competitive because it provides incremental sales.
Shown below is Bigasan ni Dong Arvin’s gross profit margin for three years.
Gross profit margin = Gross profit

Sales
Year 1
Gross profit margin = 371,100.00
4,098,000
= 9.06%
Year 2
4,623,350
= 11.64%
Year 3
5,182,700
= 13.66%

5
Net Profit Margin
Net profit is the company’s earnings after deducting interests and taxes from the
operating profit. It is the bottom line of the income statement. The net profit margin is
the ratio of net profit to the total revenue expressed as a percentage. It is one of the
most important indicators of a company’s financial health.
Presented below is Bigasan ni Dong Arvin’s net profit margin for the first three
years of operation. The increase in the rates is an indicator of the business’ profitability for
the first three years of its operation.
Net profit margin = Net profit

Sales
Year 1
Net profit margin = 26,665.00
4,098,000
= 0.65%
Year 2
4,623,350
= 4.12%
Year 3
5,182,700
= 6.71%

5
Return on Assets
Return on assets is an indicator of how profitable a business is relative to its
total assets. It is expressed as a percentage and is computed by dividing net income
by total assets.
Shown below is Bigasan ni Dong Arvin’s return on assets for three years. A
drastic increase in the rate occurred in Year 2 due to the similar manner of increase
in net income. The rate continues to increase in Year 3 which indicates optimal use
of the business’ resources in generating profit.
Return on assets = Net income

Ave. total assets
Year 1
Return on assets = 26,665.00
411,665
= 6.48%
Year 2
506,966.13
= 37.60%
Year 3
776,177.23
= 44.81%

5
Annex A
Computation of estimated average % increase in projected demand
% increase from Year 1 to Year 2

= Year 2 historical demand – Year 1 historical demand
Year 1 historical demand
= 3,911 – 3,880
3,880
= 0.80%

= Year 3 historical demand – Year 2 historical demand
Year 2 historical demand
= 4,262 – 3,911
3,911
= 8.97%
Average % increase
= 0.80% + 8.97%
2
= 4.88% or 5%

5
Annex B
Computation of estimated average % increase in projected supply

= Year 2 historical supply – Year 1 historical supply
Year 1 historical supply
= 1,501 – 1,421
1,421
= 5.63%

= Year 3 historical supply – Year 2 historical supply
Year 2 historical supply
= 1,667 – 1,501
1, 501
= 11.06%
Average % increase
= 5.63% + 11.06%
2
= 8.35%

5
Annex C
Computation of market share
Projected storage capacity per month (based on storage area): 150 – 200 sacks
Market share = Average storage capacity per year

Year 1 unsatisfied demand
Market share = 175 * 12

2,669
Market share = 79%

5
Annex D
Computation of % share of each variety
Table 37
Daily supply of each variety of rice by competitors
STORE Daily supply of each variety in kilos
160 160 7-
(Imported) (Local) Tonner Masipag Jasmine Mais TOTAL
Mia 25 6 12.5 6.5 - - 50
Llano 30 4.5 27.7 - - 4.5 66.7
Jersy 0.50 2.5 6.2 - - - 10.2
Ayangco 2 - 18.4 19 24.8 2.5 66.7
Rowena 17.5. 17.5 - - 3 - 38
TOTAL 76 30.5 64.8 25.5 27.8 7 231.6
% share of variety
= Total kilos of variety sold
Total kilos of rice sold
% share of 160 (imported) % share of Masipag

= _76 = _25.5_
231.6 231.6
= 32.8% or 33% = 11%
% share of 1-6-0 (local) % share of Jasmine

=_30.5_ = _27.8_
231.6 231.6
= 13.1% or 13% = 12%

5
% share of 7-tonner % share of Mais

= _64.8_ = 7
231.6 231.6
= 27.9% or 28% = 3%

5
Annex E
Computation of the % increase in the cost of purchases
Forecast of inflation rates according to statista.com.
2019 : 2.51%
2020 : 2.25%
2021 : 3.11%
2022 : 3%
Portion of inflation rate attributable to food and nonalcoholic beverages: 39%
Percentage increase in 2021 = 3.11% - 2.25% * 39% = 14.91%

2.25%
Percentage decrease in 2022 = 3% - 3.11% * 39% = -1.38%

3.11%
Average percentage increase = (14.91% - 1.38%) / 2 = 6.765%

5
Annex F
Computation of projected selling prices
YEAR 1
Year 1 selling price

= Purchase price per kilo (100% + Competitor’s markup %)
Table 38
Summary of cost, markup percentage and selling price for Year 1
Varieties Purchase price Markup Selling price
160 Imported 36.00 5.56% 38.00
160 Local 37.00 10.81% 40.00
7-Tonner 32.00 10.81% 36.00
Masipag 37.00 12.50% 38.00
Jasmine 37.00 10.81% 41.00
Mais 15.00 66.67% 25.00
160 Imported Masipag
= 36.00 (100% + 5.56%) = 32.00 (100% + 12.50%)
= 38.00 = 36.00
160 Local Jasmine
= 37.00 (100 + 10.81%) = 36.00 (100% + 10.81%)
= 41.00 = 40.00
7-Tonner Mais
= 37.00 (100% + 10.81%) = 15.00 (100% + 66.67%)
=41.00 = 25.00

6
YEAR 2
= Purchase price per kilo (100% + Competitor’s markup % + % increase in operating
expenses for Year 2)
Table 39
Percentage
Purchase increase in Total Markup Selling
Varieties Markup
price Operating Percentage price
Expense
160 Imported 38.44 5.56% 2.46% 8.02% 42.00

160 Local 39.50 10.81% 2.46% 13.27% 45.00
7-Tonner 39.50 10.81% 2.46% 13.27% 45.00
Masipag 34.16 12.50% 2.46% 14.96% 39.00
Jasmine 38.44 10.81% 2.46% 13.27% 44.00
Mais 16.01 66.67% 2.46% 69.13% 27.00
160 Imported Masipag
= 38.44 (100% + 5.56% + 2.46%) = 34.16 (100% + 12.50% + 2.46%)
= 42.00 = 39.00
160 Local Jasmine
= 39.50 (100% + 10.81% + 2.46%) = 38.44 (100% + 10.81% + 2.46%)
= 45.00 = 44.00
7-Tonner Mais
= 39.50 (100% + 10.81% + 2.46%) = 15.00 (100% + 66.67% + 2.46%)
= 45.00 = 27.00

6
YEAR 3
= Purchase price per kilo (100% + Competitor’s markup % + % increase in operating
expenses for Year 3)
Table 40
Percentage
Total
Purchase increase in Selling
Varieties Markup Markup
price Operating price
Percentage
Expense
160 Imported 41.04 8.02% 3.00% 11.03% 46.00
160 Local 42.18 13.27% 3.00% 16.28% 49.00
7-Tonner 42.18 13.27% 3.00% 16.28% 49.00
Masipag 36.48 14.96% 3.00% 17.97% 43.00
Jasmine 41.04 13.27% 3.00% 16.28% 48.00
Mais 17.10 69.13% 3.00% 72.14% 29.00
1-6-0 Imported Masipag
= 41.04 (100% + 8.02% + 3.00%) = 36.48 (100% + 14.96% + 3.00%)
= 46.00 = 43.00
1-6-0 Local Jasmine
= 42.18 (100% + 13.27% + 3.00%) = 41.04 (100% + 13.27% + 3.00%)
= 49.00 = 48.00
7-Tonner Mais
= 42.18 (100% + 13.27% + 3.00%) = 15.00 (100% + 69.13% + 3.00%)
= 49.00 = 29.00

6
ANNEX G
Computation of employee benefits expense
YEAR 1
SSS
Presented in Tables 41 and 42 are the employee benefits expense related to
SSS for Year 1.
Table 41
Employee Benefits Expense - SSS
Salaries per ER share ER share per EE share EE share per

Employee
Month per Month Annum per Month Annum
Cashier 7,500.00 600.00 7,200.00 300.00 3,600.00
Store
6,900.00 560.00 6,720.00 280.00 3,360.00
Attendant
Table 42
Total SSS Total SSS

EC share by EC share by
Employee share per share per
ER per Month ER per Annum
Month Annum
Cashier 10.00 120.00 900.00 10,800.00
Store
10.00 120.00 840.00 10,080.00
Attendant
PhilHealth
Table 43 shows the employee benefits expense related to PhilHealth in Year
1.
Table 43
Employee Benefits Expense - PhilHealth
Salaries EE ER
Monthly EE Share ER Share
Employee per Classification Share Share
Premium (Monthly) (Monthly)
Month (Annual) (Annual)
Php 10,000
Cashier 7,500.00 and below 275.00 137.50 1,650.00 137.50 1,650.00
Store Php 10,000
6,900.00 and below 275.00 137.50 1,650.00 137.50 1,650.00
Attendant

6
Pag-IBIG
Table 44 shows the employee benefits expense related to PhilHealth in Year
1
Table 44
Employee Benefits Expense - Pag-IBIG
Employer
Employee Employee
Employer Share
Salaries Share per Share per
Employee Classification Share per
per Month Month Annum
(2%) Annum
(2%) (2%) (2%)
Cashier 7,500.00 Over P1,500 150.00 1,800.00 150.00 1,800.00
Store
6,900.00 Over P1,500 130.00 1,800.00 130.00 1,800.00
Attendant
Table 45
Annual Total Employee Benefits Expense (Year 1)
Employee SSS ER PhilHealth ER Pag-IBIG ER Total
Cashier 7,320.00 1,650.00 1,800.00 10,770.00
Store Attendant 6,840.00 1,650.00 1,800.00 10,290.00
Total 14,160.00 3,300.00 3,600.00 21,060.00

6
YEAR 2
SSS
Table 46

Employee
Cashier 7,950.00 640.00 7,680.00 320.00 3,840.00
Store
7,314.00 600.00 7,200.00 300.00 3,600.00
Attendant
Table 47
Total SSS Total SSS

Month Annum
Cashier 10.00 120.00 960.00 11,520.00
Store
10.00 120.00 900.00 10,800.00
Attendant
PhilHealth
Table 48
Salaries EE ER
Month Premium (Monthly) (Monthly)
(Annual) (Annual)
Php 10,000
Store Php 10,000
7,314.00 and below 275.00 137.50 1,650.00 137.50 1,650.00
Attendant

6
Pag-IBIG
Table 49
Employer
Employee Employee
Employer Share
(2%) Annum
(2%) (2%)
(2%)
Cashier 7,950.00 Over P1,500 150.00 1,800.00 150.00 1,800.00
Store
7,314.00 Over P1,500 130.00 1,800.00 130.00 1,800.00
Attendant
Table 50
Cashier 7,800.00 1,650.00 1,800.00 11,250.00
Store Attendant 7,320.00 1,650.00 1,800.00 10,770.00
Total 15,120.00 3,300.00 3,600.00 22,020.00

6
YEAR 3
SSS
Table 51

Employee
Cashier 8,427.00 680.00 8,680.00 340.00 4,080.00
Store
7,753.00 640.00 7,680.00 320.00 3,840.00
Attendant
Table 52
Total SSS Total SSS

Month Annum
Cashier 10.00 120.00 1,020.00 11,520.00
Store
10.00 120.00 960.00 10,800.00
Attendant
PhilHealth
Table 53
Salaries EE ER
Premium (Monthly) (Monthly)
Month (Annual) (Annual)
Php 10,000
Store Php 10,000
7,314.00 and below 275.00 137.50 1,650.00 137.50 1,650.00
Attendant

6
Pag-IBIG
Table 54
Employer
Employee Employee
Employer Share
(2%) Annum
(2%) (2%)
(2%)
Cashier 7,950.00 Over P1,500 150.00 1,800.00 150.00 1,800.00
Store
7,314.00 Over P1,500 130.00 1,800.00 130.00 1,800.00
Attendant
Table 55
Cashier 8,800.00 1,650.00 1,800.00 12,250.00
Store Attendant 7,800.00 1,650.00 1,800.00 11,250.00
Total 16,600.00 3,300.00 3,600.00 23,500.00

6
APPENDIX A
HON. BRYAN KIM SAMEUL L. ANGOY

Brgy. Captain – Barangay Apokon
Tagum City
Respectable Sir:
Greetings of peace!
We are 2nd year students of UM Tagum College under the Department of

Accounting Education. We are enrolled in ACC 223 with the description Strategic
Business Analysis. A requirement for this course is the conduct of a feasibility study.
Our group would like to conduct a feasibility study on rice retailing in Prk. 4b, Brgy.
Apokon entitled <Feasibility study on Bigasan ni Dong Arvin in Bermudez Golden Plains
Subdivision, Brgy. Apokon=. Moreover, our target market will be the household population
of said area.
With this regard, we would like to ask from your good office permission to conduct a
survey on said area. In addition, we humbly request for information on the
demographic profile of the household population in said subdivision with which we
will be basing our estimates to be used in the study.
Your positive response regarding this matter would contribute much to the success
of the conduct of our study.
Noted by: Respectfully yours,
MA. TERESA A. OZOA, CPA, MBA BACOTE, REMERINE JOY
Adviser MALAYA, JOHN LLOYD
PETICAROS, AIZA JOYCE
SAYCON, CARYL KATE
SUMABAL, ARVIN ALEXIS
Proponents

6
APPENDIX B
1. Do you eat rice?  9-10

 Yes  11 and above
 No
8. Do you buy imported rice?
2. What kind of rice do you buy?  Yes
 NFA  No
 160
 Malagkit 9. Do you consider the price of rice
that you buy?
 Brown Rice
 Yes
 Black Rice
 No
 Others, please specify
10. What do you prioritize in buying
rice?
3. How often do you buy rice?
 Price
 Everyday
 Quality
 Once a week
 Twice a month 11. Do you like to have a rice
 Others, please specify retailer in your community?
 Yes
 No
4. How many kilos of rice do you
usually buy? 12. Are you willing to patronize our
 1-4 kilos products if we are going to put up a
 5-10 kilos rice retailing store in your area?
 11 kilos or more  Yes
 No
5. At what price per kilo?
 P25 – P34
 P35 – P44 Survey Form Number:
 P45 up
Family Name (Optional):
6. Where do you buy rice?
 Supermarket
Signature:
 Rice retailer
 Sari-sari store Date:
 Public Market
7. For how many persons do you

usually buy rice?
 1
 2-3
 4-5
 6-8

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Information Management - Lec/Lab (University of Perpetual Help System DALTA)

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Studocu is not sponsored or endorsed by any college or university

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A FEASIBILITY STUDY ON BIGASAN NI DONG ARVIN

Presented to the Faculty of

In Partial Fulfillment of the Requirements

BACOTE, REMERINE JOY C.

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this study entitled:

A FEASIBILITY STUDY ON BIGASAN NI DONG ARVIN

AT PUROK 4C AND 4D, BARANGAY APOKON

J. MALAYA, AIZA JOYCE F. PETICAROS, CARYL KATE D. SAYCON and ARVIN

MARIA TERESA A. OZOA, CPA, MBA

Accepted in partial fulfillment of the requirements for the degree

Bachelor of Science in Accountancy

MARY CRIS L. LUZADA, CPA, MSA

Gina Fe G. Israel, EdD

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extended to the following:

improvement and enrichment of this study,

support, encouragement and financial assistance,

health in completing this study.

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establishing the marketing plan, production plan, organization and management

profitability, and ultimately, its feasibility.

the data presented herein.

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LIST OF TABLES viii

Objectives of the Study 1

Brief Description of the Project 2

Description of the Product 3

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Demand and Supply Analysis 11

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Projected Employee Benefits Expense 35

5 ORGANIZATION AND MANAGEMENT PLAN 42

Form of Business Enterprise 42

Management and Organization Structure 42

Management Qualifications and Functions 44

Projected Income Statement 47

Projected Statement of Financial Position 48

Projected Statement of Cash Flow 49

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32 Projected Store Supply 39

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Objectives of the Study

beneficial to pursue the project.

puroks in Barangay Apokon, the proponents conducted on-site surveys and

interviews using convenience sampling. Moreover, competitors and suppliers are

the Appendices Section of this study.

Scope and Limitations

business industry: the Marketing, Production, Organizational and Financial Aspect.

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Brief Description of the Project

The proposed business, Bigasan ni Dong Arvin, is a rice retailing store. It is a

Brief Profile of the Proponents

Table 1. Brief Profile of the Proponents

Malaya, John Lloyd J. 2nd Year - BS in Purok 4B, Gemini Village,