Cost and Revenues

of the
Business
Ever-Healthy Bars

Group 2

Members:
Melaine Alcantara
Jhomel Castro
Christopher Cristobal

Eunice Padilla
Leoniel Padilla
Recca Segundo
Rachel Villa

Ma’am Suzette De Leon

Subject Adviser:
Activity 7: Forecast the costs to be incurred and revenues of the business.

We are entering food industry for our business. Our product ever healthy bars are the
ideal portable snack that strikes a balance between deliciousness and healthy benefits. It nails
the chewy texture that everyone is looking for in a classic granola bar. It is not a secret that in a
snack, we want and search for the taste of deliciousness: where we look for the balance of sweet
and salty, together with the chewiness and crunchiness at first bite. But as today's generation,
where our health is what must matter and weigh more, it is important to look for ways for us to
be healthier.
So today, as young aspiring entrepreneurs, it is the day that we introduce to you the Ever-
Healthy Bars, for a Healthy 'You'– a snack suitable for any age. A snack that is made for 'You'.

Ever Healthy Bars is packed with organic, healthy ingredients without preservatives. These
bars primarily contain dried fruits and vegetables, not common in the granola bars we are used
to.
We are selling our product for Php 35.00 per piece, and here are the estimated sales for
three months of our business.

Month 1 Month 2 Month 3

No. of Units to be 50 100 150
Produced
Estimated Sales (No. Php 1,750.00 Php 3,500.00 Php 5,250.00
of Units to be
Produced x Price of
Php 35.00 per piece)

Cost of Goods Sold

Cost of Sales

Month 1 Month 2 Month 3

Cost of Sales
Direct Materials Php 1,350.00 Php 2,700.00 Php 4,050.00
Direct Labor
Factory Overhead
(Percentage of sales)
Total Php 1,350.00 Php 2,700.00 Php 4,050.00
 Sales

Month 1 Month 2 Month 3

Sales Php 1,750.00 Php 3,500.00 Php 5,250.00
Less: Cost of Sales
Direct Materials Php 1,350.00 Php 2,700.00 Php 4,050.00
Direct Labor
Factory Overhead
Gross Profit from Sales Php 400.00 Php 800.00 Php 1,200.00

Net Income

Month 1 Month 2 Month 3

Sales Php 1,750.00 Php 3,500.00 Php 5,250.00
Less: Cost of Sales
Direct Materials Php 1,350.00 Php 2,700.00 Php 4,050.00
Direct Labor
Factory Overhead
Gross Profit from Sales Php 400.00 Php 800.00 Php 1,200.00
Less: Operating
Expenses
Marketing Expenses (if Php 0.00 Php 0.00 Php 0.00
any)
Administrative Php 0.00 Php 0.00 Php 0.00
Expenses (if any)
Net Income Php 400.00 Php 800.00 Php 1,200.00

Activity 8: Create a five-year projected Income Statement.

Year 1 Year 2 Year 3 Year 4 Year 5

Sales P5,250.00 P10,500.00 P15,750.00 P21,000.00 P26,250.00
Less: Cost of Sales
Direct Materials P4,050.00 P8,100.00 P12,150.00 P16,200.00 P20,250.00
Direct Labor
Factory Overhead
Gross Profit from Sales P1,200.00 P2,400.00 P3,600.00 P4,800.00 P6,000.00
Less: Operating Expenses
Marketing Expenses (if P 0.00 P 0.00 P 0.00 P 0.00 P 0.00
any)
Administrative Expenses P 0.00 P 0.00 P 0.00 P 0.00 P 0.00
(if any)
Net Income P1,200.00 P2,400.00 P3,600.00 P4,800.00 P6,000.00