COCOPULP COFFEE

An Undergraduate Feasibility Study

Presented to the faculty of

Bicol University Polangui Campus

Polangui Albay

In partial fulfillment of the

Requirements for the Degree of

Bachelor of Science Major in Entrepreneurship

BRIZ, LAILA T.

MAY 2023

1
INTRODUCTION
Coffee is the new favorite drink of the civilized world weather a form of

social activity or simply a favorite past time.

Cocoffee attemp to produce a herbal coffee using roasted coconut pulp.

Coconut are the large seeds of coconut palms (Cocos Nucifera).The raw white

flesh meat inside a coconut. It has a firm texture and slightly sweet flavor. The

brown and fibrous husks conceal the meat inside. Coconut palm are grown in

more than 80 countries in the world, with the total production of 61 million tones

per year.

Cocopulp Coffee offer a number of health benefits including improve heart

health, weight loss and digestions. The unsweetened flesh meat makes a great

addition to a balance diet. The coffee processing starts with gratering the

coconut meat and squeezed until the coconut milk disappear. The pulp is

collected and cooked using roasting process.

The Philippines remain as the world leading supplier of traditional coconut

products. The coconut industry is a dominant sector of Philippine agriculture, one

of the provinces that have an abundance supply of coconut is Bicol Region. It

gives an opportunity for the locals to create and develop a lot of products that is

made from coconut. The coconut is known for its versatility as seen the many

domestic, commercial and industrial uses of its different parts. Coconuts are part

of the daily diet of many people, which lead to the invention of Cocopulp Coffee

2
EXECUTIVE SUMMARY

Name of the Business : COCOFFEE COMPANY

Name of the Product : COCOPULP COFFEE

Project Proponent : LAILA T. BRIZ

Project Location : MCKINLEY ST., GUILID,LIGAO CITY

Types of Organization : SOLE PROPRIETORSHIP

Total Project Cost : 663,802.43

Source of Financing : OWNER’S EQUITY

Return of Investment :

Cash Payback Period :

Project Implementation : APRIL 2023

3
MISSION

• To produce a herbal and caffeine-free coffee. Cocoffee seek to provide a

high quality product providing a number of health benefits to consumer. To

be an active contributor to the growth and development of the in the

locality as. Well as in the country

VISION

• To pioneer a leading company of high quality herbal coffee.

GOALS AND OBJECTIVES:

This feasibility study aims to:

• To produce a new taste of coffee with the use of natural ingredients.

• To provide employment for the people in the locality.

• To gain more profit for the growth and continuity of the business.

• To assists the government by way of paying revenues and taxes.

4
BRIEF DESCRIPTION OF THE BUSINESS

The company name will be known as COCOFFEE using a brand name

COCOPULP COFFEE, the first and leading company producing an alternative

herbal coffee made out of coconut pulp. Cocoffee will be found at McKinley St.

Guilid, Ligao City near market site. The company seeks to promote healthy and

caffeine-free cup of an alternative coffee in the locality. The proponent comes up

with the idea on how to make an alternative coffee using the abundant crops

found in the locality. The resulting coffee product will be packed into tea bags

and pouches.

The company will adopt sole proprietorship of business organization and it

is a manufacturing type which the proponent will be the one who will create and

produce the proposed product. The company will require 1 production manager

and 2 production Workers. The owner of the company will be the who will

manage the entire business activity within and outside of the company. The

production manager will assist the production from the start of the operation up to

the end of the production.

Market research shows that people who loves to drink coffee are the

disceming customers that gravitate toward better tasting coffee. The product will

introduce to the market by distributing flyers and posters. Online platforms will

serve as an promotional instrument to advertise the product. The significance of

the study to the society is aside from it contribute to the economy by paying

taxes, it will promote the cities abundant resources and the local farmers who

produce the business major raw materials, offers job for the unemployed.

5
MARKET
STUDY

6
THE PRODUCT: IT’S USES AND IT’S USERS

The proposed product is cocopulp coffee which will be known in the

market as one of the high quality coffee made from coconut pulp. Cocopulp

Coffee is made from roasted coconut pulp. The resulting coffee product will be

packed into tea bags and pouches. The sensory attributes of the product is highly

acceptable in terms of appearance, aroma and taste, Cocopulp Coffee can be

substitute to the coffee product in the market that is made from coffee beans.

Coffee product will produce an herbal coffee that can be consumed by

everybody who has the willingness and capabilities to purchase. The coffee

product offer a number of health benefits, this include carbs and protein along

with many essential minerals such as manganese, copper, iron and selenium.

Cocopulp Coffee makes a great addition to a balance diet. The product will be

positioned in line with the other coffee product in the market.

The Cocopulp coffee will be sold at 80.00 containing 24 pieces of the tea

bags per pouches. The proposed coffee can be serve as stress reliever for the

people who enjoy drinking coffee and perfect for breakfast and relaxation as well.

The target market of this study are the municipalities of Polangui, Oas and City of

Ligao.

7
DEMAND ANALYSIS

Demand Analysis is an important task in determining the consumer’s

needs as well as their ability to purchase the product. The willingness of buyers

to purchase the product at the price offered determines demand analysis .

The proponent conducted research in the three selected municipalities to

determine the target market.

Table 1
Projected Population
Municipality/City 2022 2023 2024 2025 2026
Polangui 20,780 21,258 21,747 22,247 22,758
Oas 21,014 22,254 23,567 24,957 26,430
Ligao 29,840 33,540 37,699 42,374 47,628
TOTAL 71,634 77,052 83,014 89,578 96,816

Table 1 shows the Projected Household population of three municipalities

in Albay’s third district. The data presented the household population computed

by its places. In order to get household population of the proceeding years, the

proponents used the data 2020, 2015 and 2018 as base years, multiplied by the

growth rate of Ligao (1.124%), Oas (1.059%) and Polangui (1.124%).

8
 Table 2
Market Potential
Projected % of willingness to
Year Market Potential
Population buy
2022 71,634 96% 68,769
2023 77,052 96% 73,970
2024 83,013 96% 79,692
2025 89,578 96% 85,995
2026 96,816 96% 92,943

Table 2 shows the market potential of the product. Multiply the projected

population by the percentage of people who are willing to buy, which is 96% to

get the potential market.

Table 3
Projected Demand
Average per
Projected
Year Market Potential capita
Demand
consumption
2022 68,769 139 9,558,891
2023 73,970 139 10,281,830
2024 79,692 139 11,077,188
2025 85,995 139 11,953,305
2026 92,943 139 12,919,077

Table 3 shows the projected demand for the product. The total population

is multiplied by the percentage of willing to buy and the target consumer

multiplied by the average per capita consumption.

9
SUPPLY ANALYSIS

Supply analysis is necessary in order to determine on how existing

products meet the demand and how they satisfy their target market. It also help

the proponent in calculating the products market share potential..

Table 4.1 (LIGAO)

Volume of Supply of Competing Products
Competing
Competitors Daily Weekly Monthly Annually
Products
LCC Mall Nescafe 67 469 1,876 22,512
Ligao Premium 70 490 1,960 23,520
LCC Nescafe 52 364 1,456 17,472
Supermarket Premium 50 350 1,400 16,800
Nescafe 48 336 1,344 16,128
7/11 Kopiko 52 364 1,456 17,472
Premium 45 315 1,260 15,120
Nescafe 70 490 1,960 23,520
Paraiso
Premium 32 224 896 10,752
Store
Premium 90 630 2,520 30,240
Quigaman Nescafe 15 105 420 5,040
Store Premium 10 70 280 3,360
TOTAL 201,936

Table 4.1 shows the volume of supply of competing products the

considered competitors that offer the same product are LCC Supermarket, LCC

Mall Ligao, Quigaman , Belinda, Paraiso, and 7/11. To get the weekly supply in

daily will be multiplied to number of days in a week (7 days), in monthly, weekly

supply multiplied to number of weeks in a month (4 weeks) and in annually,

monthly supply multiplied to number of months in a year (12 months).

10
 Table 4.2 (OAS)
Volume of Supply of Competing Products
Competing
Competitors Daily Weekly Monthly Annually
Products

Nolasco Nescafe 90 630 2,520 30,240

Store Premium 96 672 2,688 32,256

Artgel Nescafe 30 210 840 10,080

Store Premium 30 210 840 10,080

Velasquez Nescafe 66 462 1,848 22,176

Store Premium 45 315 1,260 15,120

Total 119,952

Table 4.2 shows the volume of supply of the competing products in Oas.

The considered competitors of distributing the similar products offered by the

proponent are Nolasco, Artgel and Velazquez Store.

11
 Table 4.3 (POLANGUI)
Volume of Supply of Competing Products
Competitors Competing Daily Weekly Monthly Annually

Products

LCC Nescafe 42 294 1,176 14,112

Mall 1 Premium 45 315 1,260 15,120

LCC Nescafe 34 238 952 11,424

Mall 2 Premium 28 196 784 9,408

LCC Nescafe 22 154 616 7,392

Express Mart Premium 28 196 784 9,408

Lotte Nescafe 25 175 700 8,400

Mart Kopiko 34 238 952 11,424

Meldz Nescafe 20 140 560 6,720

Store Kopiko 17 119 476 5,712

Hapinoy Nescafe 15 105 420 5,040

Store Kopiko 28 196 784 9,408

Sanorjo Nescafe 15 105 420 5,040

Store Premium 18 126 504 6,048

TOTAL 124,656

Table 4.3 shows the volume of supply in Polangui. The considered

competitors of distributing similar products offered by the proponent are LCC

Mall 1, LCC Mall 2, LCC Express Mart, Lotte Mart, Meldz Store, Hapinoy and

Sanorjo Store.

12
 Table 4.4
Summary of Supply of Competing Products
Target Market Total Supply
Ligao 201,936
Oas 119,952
Polangui 124,656
Total 446,544

Table 4.4 shows the summary of the competing products in various

establishments in three selected municipalities. Since the proponent proposed

the same product they are considered as the potential competitors. Based on the

actual interview on the potential competitors and competing product enable to

help the proponent in evaluating the proposed product in determining how far can

go the product and if it has a market potential.

Table 5
Projected Supply
Year Projected Supply
2022 473,337
2023 501,737
2024 531,841
2025 563,751
2026 597,576

Table 5 show the projected supply of the proposed products. The

projected supply of the competing product was calculated by multiplying the

overall supply by 6% of the higher average sale and then multiplying it by the

projected supply.

13
 Table 6
Demand and Supply Gap
Demand
Projected Projected Projected Market
Year and Supply
Demand Supply Volume Share
Gap
2022 9,558,891 473,337 9,085,554 58,176 64%
2023 10,281,830 501,737 9,780,093 63,936 65%
2024 11,077,188 531,841 10,545,347 70,272 66%
2025 11,953,305 563,751 11,389,554 77,184 68%
2026 12,919,077 597,576 12,321,501 84,980 69%

Table 6 shows the demand and supply gap per year. To calculate the

demand and supply gap. The proposed products projected demand subtracted

from the projected supply. Market share is calculated by dividing the projected

volume by demand and supply gap. Base on the calculations, the market share is

increasing every year.

Table 7
Projected Sales
Allowance for Total
Production Selling
Year Spoilage Sales Gross Sales
Volume Price
(0.02%) (units)
2022 58,176 12 58,164 4,653,120
2023 63,936 13 63,923 5,880,916
2024 70,272 14 70,258 7,433,296
2025 77,184 15 77,169 9,389,152
2026 84,960 17 84,943 11,885,267

Table 7 shows the proposed product’s projected sales volume over the

first five years of production. The sales volume is calculated by multiplying the

production volume by the 0.02 percent allowance for spoilage and then

subtracting it from the production volume. The proposed product’s selling price

will rise by 10% per year because it is assumed that the cost of raw materials

and other supplies used in production will rise as well. If certain products may be

damaged, the company makes a 0.02 assumption for spoilage.

14
MARKETING PROGRAM AND STRATEGY

Product Positioning
The proposed product is an alternative coffee that is made from coconut

pulp. The product can be consumed by people who loves to drink coffee. The

product will be positioned in line with the Nescaffee Black and Premium coffee

which considered as the main competitors of the proposed product. Cocopulp

Coffee is highly acceptable due to its sensory attributes in terms of taste,

appearance and aroma.

The aforementioned product is highly recommended for unwinding and it

is also essential for human health. The proponent assured that the product would

be inexpensive in the market and would have a reasonable cost.

Figure 1

15
 Product Label
Pricing Scheme
The Cocoffee will have its new product at very low prices consistently to

maintain the loyalty of our customers. The product will be offered according to

the materials used in producing Cocopulp Coffee. It will depend on the raw

materials used up to the preparation of the product. Expenses can be

categorized into equipments, supplies and utilities. It is assume to increase the

selling price annually because of the demand. The proposed product will offer the

product at 80.00 containing 24 pieces of tea bags per pouches.

Promotional Strategy
Promotional strategy plays an important role in the business because it is

an instrument bin to increase profit. It also help to introduce the character of the

proposed product in the market. Packaging also serves as the silent

advertisement because the more it looks presentable and attractive, the more it

could invite and encourage customers to patronize the proposed product.

The company will launch new product through social media platforms and

offers it’s costumers the best tasting herbal coffee. This will be achieved by using

high quality ingredients and strictly following preparation guidelines. Technology

used by the proponent to promote the product through online platforms such as

Facebook, Instagram, Twitter and Tiktok. The company will distribute flyers,

posters and sample product to the three selected municipality.

16
Distribution Channel

The proponent the simple flow of distribution of the product. The

producers will distribute the product to the grocery stores or convenient stores so

that it will be more accessible to people and can easily generate profit.

PRODUCER

CONVENIENT STORE AND

GROCERY STORE

CONSUMERS

Figure 2
Distribution Channel

17
TECHNICAL
STUDY

18
PRODUCT SPECIFICATION AND COMPOSITION

Cocoffee engages in the production of Cocopulp Coffee. It is highly

acceptable in terms of taste, texture, appearance and aroma. The finished

product of Cocopulp Coffee will be packed into tea bag and poutches consisting

of 24 pieces of teabags per poutch. It is labeled indicating its logo, net volume

and contact number of the company. It will be sold at Php 80.00.

Coconuts pulp is the main ingredients used in producing the

product. The preparation of the proposed product is easy and it is indicated at

the production process.

PRODUCTION PROCESS

The ingredients used to produce a Coconut Pulp Coffee:

 Coconut Pulp

 Stevia Sugar

The process of making the Coconut Pulp Coffee:

1. Wash and squeeze the coconut pulp.

2. Collect and prepare in the pan.

3. Prepare the coconut pulp in the pan.

4. Roast the coconut pulp for 30- 45minutes. Wait until it became dark

brown. Place it on a clean and large basin and let it cool.

5. Add stevia sugar and mix thoroughly.

6. Put it on the teabag and prepare for final packaging.

19
 STEVIA

COCONUT
PULP

WASHING

SQUEEZING COLLECTING PREPARING

LEGEND: ROASTING

Raw Materials

Operations
COOLING
Finished Product

Delivery

DELIVERY MIXING

FINISHED
LABELING PACKAGING
PRODUCT

Figure Cocopulp Coffee Flow Chart

20
PRODUCTION VOLUME AND SCHEDULE

The business will operate six days a week. From Monday to Saturday,

Sunday would be take as a rest day of the employees. The operation will begin at

8:00 a.m. and end at 5:00 p.m., including a one-hour break and a 30-minute

snack break.

Table 8 (10g)
Production Volume
Year Daily Weekly Monthly Yearly
2022 202 1,212 4,848 58,176
2023 222 1,332 5,328 63,936
2024 244 1,464 5,856 70,272
2025 268 1,608 6,432 77,184
2026 295 1,770 7,080 84,960

Table 8 shows the production volume of the proposed product. Estimate

that the production volume will increase by 10% every year for the next 5 years.

21
 Time Monday Tuesday Wednesday Thursday Friday Saturday
8:0- 9:00
9:00-10:00
10:00-
11:00
11:00-
12:00
12:00-1:00
1:00-2:00
2:00-3:00
3:00-3:30
3:30-4:30
4:30-5:00

Legend:

Procurement of raw materials

Production Activity

Break Time

Packaging

Monthly Delivery

House keeping

Table 9 shows the monthly operation of the proposed business. In a daily

operation, 1 hour is the allocated time for the procurement of raw materials.

Employee will give 1 hour noon break and 30 minutes snacks time in the

afternoon. The Last Saturday of the month will be the delivery schedule of the

proposed product. Production area and adminisrative office will be sanitize after

the operation to maintain the cleanliness of the facility. The remaining time will be

given to the production activity.

22
RAW MATERIALS REQUIREMENT AND SOURCE

The raw materials of the proposed product is coconut pulp. The source of

materials is abundant in the city and can be both to neighbors or directly to the

farmers and in the market.

Table 10
Raw Materials Requirements

Particulars Quality Unit Unit Cost Monthly Annually

Coconut pulp 1,320 Pcs 5.00 6,600.00 79,200.00

Stevia Sugar 49 Box 390.00 19,110.00 229,320.00

Total 25,710.00 308,520.00

Source: Ligao Public Market and Mercury Drug
Table 10 shows the raw materials requirements needed in the production

of the proposed Product.

Table 11
Packaging Materials
Particulars Quantity Unit Unit Cost Monthly Annually
Sticker Label 2,304 pcs 2.50 5,760.00 69,120.00
Tea Bag filler
paper roll 50 Roll 340.35 17,017.50 204,210.00
(1780mm)
Poutch Bag 2,462,1
2,400 pcs 76.00
(20 pcs) 182,400 30.00
Total 205,177.5 2,462,130.00

Source: Polangui Public Market and Ericson Computer Shop

23
 Table 11 shows the packaging materials needed in the Production of the

proposed product. The total cost annually is also shown.

PRODUCTION EQUIPMENT, TOOLS AND UTENSILS

In a manufacturing type of business, equipment, tools and utensils are

essential in the production. Base on the actual survey conducted by the

proponent, below are the presented equipment with it’s corresponding unit cost.

Table 12
Production Equipment
Estimated Annual
Particulars Quantity unit Unit cost
useful life depreciation
Electric Stove 1 pcs 5,513.00 10 yrs. 551.3
Tea bag
packaging 1 pcs 37,064.00 10yrs. 3,706.4
machine
Weighing scale 1 pcs 4,199.00 10yrs. 419.9
Large stainless
1 pcs 1,679.00 10 yrs. 167.9
pan
Total h 48,455.00 2,653.6
Source: SM Legazpi, LCC Mall and Ligao Public Market
Table 12 shows the production equipment needed in the production of

Kamias Jam. Since the equipment will last over per years, it is subjected to

annual depreciation.

24
 Table 13
Production Tools and Utensils
Unit Total Estimate Annual
Particulars Quantity Unit
Cost Cost d Useful Depreciation
Stainless Basin 5 pcs 155.00 775.00 10 yrs. 15.50

Stainless Tray 5 pcs 196.00 980.00 10 yrs. 98.00

Stainless Spoon 3 pcs 135.00 405.00 10 yrs. 40.50

Total 486.00 2160.00 154.00

Source: Ligao Public Market and LCC Mall

Table 13 shows the Production tools and utensils needed in the

production process. The presented total cost is based on the data gathered by

the proponent.

Table 14
Production Supply
Items Quantity Unit Unit Cost Total Cost
Apron 30 pcs 35.00 1,050.00
Face Mask 5 box 50.00 250.00
Hand Towel 30 pcs 20.00 600.00
Hair Net 30 pcs 15.00 450.00
Gloves 30 pcs 30 900.00
Total 3,250.00
Source: Ligao Public Market

25
 Table 14 shows the production supply that will be used by the workers in

the production process. Multiply the unit cost by the quantity to get the overall

cost.

Table 15
Housekeeping Supply
Items Quantity Unit Unit Cost Total Cost
Hard Broom 3 pcs 35.00 105.00
Soft Broom 3 pcs 120.00 360.00
Trash Bin 3 pcs 150.00 450.00
Dust Pan 3 pcs 95.00 285.00
Floor Mop 3 pcs 150.00 450.00
Rag 5 pcs 35.00 175.00
Dipper 2 pcs 55.00 110.00
Pail 2 pcs 75.00 150.00
Hand Soap 5 pcs 31.00 155.00
Dishwashing Liquid 5 liters 50.00 250.00
Dishwashing Scrubber 3 pcs 25.00 75.00
Total 2,565.00
Source: Ligao Public Market and LCC Home Center

Table 15 shows the housekeeping supply that will be utilized to maintain

the cleanliness of the facility. The total cost presented in the table.

Table 16
Production Furniture and Fixtures
Estimated
Total Annual
Items Quantity Unit Unit cost Useful
cost Depreciation
Life
Working
3 pcs 695.00 2,085.00 5 yrs. 417.00
Tables
Monoblock
3 pcs 300.00 900.00 5 yrs. 180.00
Chair
Ceiling Fan 3 pcs 249.00 747.00 5 yrs. 149.40
Fire
1 pcs 1,250.00 1,250.00 5 yrs. 250.00
Extinguisher
Total 4,982.00 996.40

26
Source:LCC Mall and Kingswood
Table 16 shows the production table fixtures of the proposed product.

Since the estimated useful life is over 5 years it is subjected to annual

depreciation.

Table 17
Delivery Equipment
Estimated Annual
Items Unit Unit cost Total Cost
Useful Life Depreciation
Tricycle 1 50,000.00 50,000.00 10 yrs. 5,000.00

Total 50,000.00 5,000.00

Source: Motortrade
Table 17 shows the delivery equipment that will be used for the

distribution of the proposed products to the selected target market.

Table 18
Fuel Expense
Particulars Quantity Unit Unit cost Monthly Annually
Gasoline 15 liters 75.00 1,125.00 13,500.00
Total 1,125.00 13,500.00
Source:LCC ball, Gasoline Station

Table 18 shows the delivery expense with the corresponding unit cost per

liters. To calculate the delivery expense, multiplied 10 liters to unit cost and get

the annual cost multiplied monthly by 12 (months) to get the annual cost.

27
QUALITY CONTROL SCHEME

Quality control is very important in producing and maintaining the good

quality of the herbal coffee.

In purchasing the raw materials it should be inspect to ascertain that they

are visually qualified and there is no damages and defects. The tools, machinery

and equipment that were used should be inspect and kept clean before and after

of the operation to maintain the high quality of the product as well as for the

smooth production system.

A systematic flow of organization will be strictly implemented in order to

produce a large volume of the product. The manager will take charge all

business transaction from time to time as well as the work of the employees. The

finished product will be packed according to its weight. Packaging and labeling

will be strictly enforced.

PLANT LOCATION AND LAYOUT

The chosen location for the operation of Cocoffee is in McKinney St.,

Guilid,Ligao City because of it’s strategic location, the target market costumers

28
can easily find the product. It will be the best location because of it’s proximity to

the target market.

The plant layout will be categorized into different areas. Office Area, Office

supply area, Production Area, Storage Area ,Comfort room and Kitchen. The

production area will be given a wide space than the other area so that workers

can move freely and conveniently.

29
 Figure 4
Vicinity Map

30
 Figure 5

Building Perspective

31
32
UTILITY REQUIREMENTS

The proposed Business will need some service from Albay Power Energy

Corporation (APEC) in the city of Ligao. This will be used to operate the

equipment in the production of the product.

The water is also important requirements used in maintaining the

cleanliness and sanitation of the materials as well as the facility. The water will

be supplied by Ligao Water District.

Table 19
Utility Requirements

Production Administrative

Utility Per Month Per Year Per Month Per Year

Electricity 1,440.87 17,374.44 496.84 5,962.08

Water 695.00 8,340.00

Total 2,135.87 25,714.44 496.84 5,962.08

Table 19 shows the utility requirement needed in the operation of the

business. Cost of production and administrative is shown on the table above.

33
BUILDING FACILITIES

The building to be used in the proposed business will undergo renovations

for proper arrangements of the product and to attract customers which will cost

23, 598.00 and 3,000.00 for the monthly rental. It is concrete building and with

the glass door and windows for the customers to see the product easily figure

five shows the shop layout and the vicinity map

Table 20
Bills of Materials and Cost Estimated of the Building Renovations
Particular Quality Unit Unit Cost Total Cost
Coco lumber
10 Pcs 80.00 800.00
(2x2)
Ply wood 5 Pcs 350.00 1,750.00
Cement 3 Bag 210.00 630.00
Roofing 5 Pcs 500.00 2,500.00
Sand 5 Sack 20.00 100.00
Flat head nail 1 Kilo 80.00 80.00
Nail 2 1 Kilo 80.00 80.00
Nail 3 1 Kilo 80.00 80.00
Nail 4 1 Kilo 80.00 80.00
Roller brush 2 Pcs 95.00 190.00
Paint brush 2 Pcs 36.00 72.00
Wall paint 2 Gallon 1,700.00 3,400.00
Fluorescent lamp 4 Pcs 190.00 760.00
Door knob Pcs 175.00 875.00
Labor (2 labors x
800.00
400 x 7 )
Total 16,997.00
Source:Bords Trading, Construction Supply

Table 20 shows the estimated material costs for the building renovation,

including a labor salary of 400.00 for seven days of work. The total estimated

cost is 16,997.00.

34
WASTE DISPOSAL SCHEME

Cleanliness and organization is another important factor to consider in the

operation of the proposed product. Sanitizing the tools and equipment as well as

the surrounding of the facility is another way to keep the quality of the product

and in order to have a healthy and comfortable working area. Cleanliness and

orderliness is strictly observed before and after the operation. Proper disposal

garbage used in the operation will be implemented.

Waste materials will be segregated according to its appropriate waste

management. It will be pick-up by garbage truck every Tuesday for

biodegradable waste and Thursday for non-biodegradable waste. Waste

materials that can be recycled will be grouped and separated, it can be used for

intended purposes.

35
 Waste Segregation

Non-
Biodegradable
biodegradable
Recyclable

Storage

Collection

Utility
Sanitation

Figure 7
Waste Management

36
 MANPOWER REQUIREMENTS

Cocoffee will operate 6 days in a week having 8 hours working per day. It

will require three employees and it will be divided into four (4) department.

Production operating and two workers for the production and delivery. The

production worker will be positioned as regular employee and they will receive

Fringe benefits and 13th Month pay with a salary a day.

Table 21
Salary Rate
Position Day Month Year
Production Worker Php 350.00 Php 8,400.00 Php 89,280
Production
Php 350.00 Php 8,400.00 Php 89,280
Helper/Driver
Total Php 700.00 Php 14,800 Php 178,560
Salaries of Workers

Table 21 shows the worker salaries on a daily, monthly, and annual basis.

Every employee will be paid Php 310 per day. Monthly payments of Php

7,440.00 and annual payments of Php 82,290.00

37
 Table 22
Fringe Benefits of Workers
13th SSS PhilHealth PAG-
Position Month Monthl Monthl
Monthly Yearly Yearly Yearly
Pay y y
Production 3,120.0 1,788.0
7,440.00 530.00 6,360.00 260.00 149.00
Worker 0 0
Production
3,120.0 1,788.0
Worker/Drive 7,440.00 530.00 6,360.00 260.00 149.00
0 0
r
14,880.0 1,060.0 12,720.0 6,240.0 3,576.0
Total 520.00 298.00
0 0 0 0 0

Table 22 shows the fringe benefits of each employee. They will receive

530.00 per month and 6,360.00 per year for SSS. Phil-Health will pay 260.00

monthly and 3,130.00 annually, while PAG-IBIG will pay 149.00 monthly and

1,776.00 annually.

Table 23
Administrative Salary
Salary Rate
Position Day Month Year
Production
450.00 10,800.00 129,600.00
Manager
Total 450.00 10,800.00 129,600.

Table 23 shows the administrative salary on a daily, monthly, and annual

basis. The manager will be paid Php 350 per day, Php 8,400.00 per month, and

Php 108,800.00 per year.

38
 Table 24
Administrative Fringe Benefits

Position 13th SSS PhilHealth PAG-IBIG

Month
Monthly Yearly Monthly Yearly Monthly Yearly
Pay

Production
8,400.00 530.00 6,360.00 294.00 3,528.00 168.00 2,016.00
Manager

Total 8,400.00 530.00 6,360.00 294.00 3,528.00 168.00 2,016.00

Table 24 shows the administrative fringe benefits, which include SSS, Phil

Health, and PAG-IBIG. For SSS, the monthly fee is 530.00, and the annual fee is

6,360.00. Phil-Health will have 249.00 monthly and 3,528.00 annually, while

PAG-IBIG will have 168.00 monthly and 2, 016,00 annually.

Table 25
Office Equipment
Estimated Depreciation
Particulars Quantity Unit prize Total Prize
useful life
Desktop
1 18,000 Php.18,000 10 years 1,800.00
computer
Total 18,000 Php.18,000 1,800.00

Table 25 shows the needed administrative office equipment. The total

annual depreciation worth 1,800.00

39
 Table 26
Office Supplies
Particulars Quantity Unit Unit Cost Total Cost
Record Book 1 Pieces 24.00 24.00
Calculator 1 Pieces 125.00 125.00
Ballpeen 2 Box 40.00 80.00
Wall Clock 1 Pieces 250.00 250.00
Scissor 3 Pieces 16.00 48.00
Glue 3 Pieces 15.00 45.00
Stapler No.10 2 Pieces 50.00 100.00
Bond Paper
1 128.00 128.00
(500 sheets)
Sales Invoice 10 Stubs 40.00 400.00
TOTAL 1,200.00

Table 26 shows the needed so office supply of the proposed product. But

total cost worth Php 1,200.00

Table 27
Office Furnitures and Fixtures

Estimate Annual
Particular Quantit Unit Total
Unit d useful Depreciatio
s y Cost Cost
Life n
Monobloc Piece
5 500.00 2,500.00 10 Years 250.00
Chair s
Office Piece 2,475.7
2 4,951.00 10 Years 495.15
Table s 5
Ceiling Piece 1,499.0
3 4,497.00 10 Years 449.7
Fan s 0
Wood Piece 1,470.0
1 1,470.00 10 Years 147.00
Cabinet s 0
13,418.5
TOTAL 1,341.85
0

Table 27 shows the needed office Furnitures and Fixtures. The total cost

and annual depreciation is shown on the table.

40
 COCOFFEE COMPANY

MCKINLEY ST., GUILID, LIGAO CITY

PRODUCTION COST

Direct Costs:
Raw Materials 2,245,176.00
Packaging Materials 654,048.00
Direct Labor 220,858.00
Total Direct Costs 3,100,320.00

Indirect Costs/Overhead Costs:

Production Supplies 3,250.00
Production Tools and Equipment 2,160.00
Housekeeping Supplies 2,565.00
Utilities Expense 80,207.00
Gasoline Expense (50%) 6,750.00
Rent Expense (75%) 90,000.00
Depreciation Expense:
Building Improvements (75%) 17,698.50
Production Equipment 1,344.30
Furniture and Fixtures-Production 996.40
Delivery Equipment (50%) 2,500.00
Total Indirect Costs 207,471.20
Total Production Cost 3,307,791.20
Divide: Production Volume 58,176
Production Cost per Unit 56.86
Add: Mark-Up (30%) 22.74
Estimated Selling Price per Unit 79.60

41
 Selling Price per Unit 80.00
APPENDIX G
Computation for the Production Volume

Given:

Finished Product Each Day- 202 Coffee Pouches

No. of Working Days- 6

Monthly= 4

Annually=12

Formula:

No. of Producing Product Each Day x Working days x Monthly x Annually

Solve:

= 202 x 6 x 4x12

= 58, 176 is the Production Volume

42
 APPENDIX H

Computation for production Volume

Plate 1

Electric Gas Stove

Function Used to cooked in roasting coconut pulp

Model Number JD-FS008

Product size 780*530*815mm(LxWxH)

Voltage 120V

Watts 2,500W

No. of person required 1

43
 Plate 2

Tea Bag Packaging Machine

Function For packing and sealing of tea bag

Model number CKYD-12

Filling range 3-10 g

Bag size Filter paper 87mm

Length of bag 155mm

Weight 320 kg

Dimension 600x790x1780mm

44
 Power 1220V/50Hz/1.5KW

No. of Person Required 1

Plate 3
Digital Weighing Scale
Function Use to measure weight or mass

Model Number N1WF

Weight 3 kg

Capacity 355g – 1000g

45
Number of Person Required 1

Plate 4
Stainless Large Pan
Function For roasting pan
Model Number DEEPA-PAN

Weight 2kg
Full Capacity 10L
No. of Person Required 1

46
 APPENDIX I
Computation of Production Utility Cost
Formula:
Consumption = ___________Watts____________

1,000 (No. hours) (No. of Units) (No. of Days)(9.8532)

Electric Gas Stove

= 2,500 W / 1000 kWh
= 2.5 (2 hours) (1 unit)(24 days ) (9.8532)
= 1,182.38
Tea Bag Packaging Machine
= 1220 W / 1000 kWh
= 1.22(3 hours) (1 unit)(24 days ) (9.8532)
= 97.69
Ceiling Fan
= 20 W / 1000 kWh
= 0.02 (8 hours) (2 unit) (24 days ) (9.8532)
= 75.67
Fluorescent Lamp
= 15 W / 1000 kWh
= 0.015 (8 hours) (3 unit) (24 days ) (9.8532)
= 85.13
1,182.38+ 97.69+ 75.67 + 85.13 = 1,440.87

47
 APPENDIX J
Computation for Administrative Utility Cost
Formula:

Consumption = ___________Watts____________

1,000 (No. hours) (No. of Units) (No. of Days)(9.8532)

Computer Desktop
= 200 W / 1000 kWh
= 0.2 (5 hours) (1 unit)(24 days ) (9.8532)
= 236.48
Internet Wi-Fi
= 12W / 1000 kWh
= 0.012 (8 hours) (1 unit)(24 days ) (9.8532)
= 22.70
Ceiling Fan
= 20 W / 1000 kWh
= 0.02 (8 hours) (1 unit) (24 days ) (9.8532)
= 37.84
Fluorescent Lamp
= 15 W / 1000 kWh
= 0.015 (8 hours) (3 unit) (24 days ) (9.8532)
= 85.13
Printer
= 30 W / 1000 kWh
= 0.03(2 hours) (1 unit) (24 days ) (9.8532)
= 14.19

48
 236.48 + 22.70 + 37.84 + 85.13 + 14.19 = 496.84
APPENDIX K
Computation of Summary for Current Regional Daily Minimum Wage Rate

The data presented above is oh how Summary of Current Regional Daily

Minimum Wage Rates was calculated. Region V has a daily minimum wage of

228.78 in either the non-agricultural or agricultural sectors. It is assumed that the

production worker's salary is 350.00 per day, while the administrative worker's

salary is 450.00 per day.

49
 APPENDIX L
SSS Contribution Schedule Table 2021

The table above illustrate the SSS Contribution Calculation for both

regular employers and employees.

50
 APPENDIX M
PAG – IBIG Contribution Table 202

The data presented above is the Pag- Ibig contribution for both employers

and employees.

51
 APPENDIX N
Phil Health Contribution Table 2021

The data presented above is the Phil Health Contribution chart for the

year 2021. Region V has a daily minimum wage of 228.78 in either the non-

agricultural or agricultural sectors. I assumed that the production worker's salary

is 350.00 per day, while the administrative worker's salary is 450.00 per day.

52
ORGANIZATION
AND
MANAGEMENT
STUDY

53
Form of Business Organization
A sole proprietorship will be used as the form of business organization.

The proponent is the owner/manager of this type of firm and in charge of the day-

to-day operation. It is simple to set a sole proprietorship. The owner has the

authority to make all required choices on commercial transaction, as well as to

make necessary management changes. there will also be a production manager

to oversee the production operation of the proposed product. In this sort of

business, all choices and actions may be made and implemented correctly and

the owner is responsible for the entire operation.

54
Organizational Structure

the proponent forecast that one production manager , one production

worker and production helper/driver will be required to start the business. The

owner/manager will be in charge within and outside of business operation.

Manager

Production Manager

Production Production
worker helper/driver

55
 Figure 8
Organizational Chart

Duties and Responsibilities

Owner/Manager

 Perform the overall supervisions and set goal of the company.

 Motivate workers to make business successful.

 Keeping all the business transactions and records.

 Implement rules and regulations and policies.

Production Manager

 Responsible for hiring and trainings of the employees.

 responsible in monitoring the quality of the product and examine the

production.

 Purchase the raw materials and other materials that will used in the

production.

Qualifications:

 Female/Male

 Age 18-30 years old

 College level or at least high school graduate.

 Hardworking, Honest and able to follow rules and regulations of the

company.

56
  With good moral character

Production Worker, Helper and Driver

Job Description

 Maintain good quality of the product.

 Helps in the production operation.

 Responsible fir the delivery of the product on time.

 Maintain the cleanliness and orderliness of the production area.

MANPOWER COMPENSATION SCHEME

In business, man power compensation scheme are the most valuable

asset because they ensure that the organizational framework in business

operations will run smoothly. In a business operation, everyone has a important

tasks, duties and responsibilities to ensure the company success. The proposed

business role and organization are determined by the proponent.

57
Pre - Operating Activities

In performing the actual operation of the company, this Project Feasibility

Study should be examine first to ensure that the proponent investment is secure

and to make sure that the production of the proposed product will run

conveniently. In starting a business it requires a well- organized and efficient

business plan to ensure the success of the business. This relates to market,

technical, organizational and management, financial and social economic This

could be determined by conducting survey interviews to the selected target as

well as the competing products and distributors. A portion of the investment

money by the proponent will be used to facility renovations, purchase the needed

supply in production and administrative office such as machines, equipment,

utensils, tools and etc. This company will also comply all the necessary

requirements to legally operate the business.

58
 Activities Septembe Octobe Novembe Decembe Januar Februar Marc Apri
r r r r y y h l
PFS
Preparation
Sourcing
Capital
Renovation
of Building
Procuremen
t of Supplies
and
Equipment
Business
Registration
Recruitment
and
Placement
of
Employees
Start of
Business

Figure 9
GANTT CHART

59
FINANCIAL
STUDY
60
 FINANCIAL ASSUMPTION

 Business operation will start on

 Selling Price will increase 10% annually.

 Production volume is estimated to increase 10% annually.

 Source of capital will come from the owner’s equity.

 Raw materials and packaging materials are assumed to increase by 2%

annually.

 Sales is 100% cash.

 Direct labor and Administrative salaries are assumed to be fixed in the

next succeeding years.

 The cost of utilities is assumed to increase 2% annually.

 Preparation of PFS is estimated to Php 5,000.

 Gasoline expense

 will increase 2% annually.

61
 TOTAL PROJECT COST
A. Fixed Assets
Building Improvements 23,598.00
Production Equipment 13,479.00
Furnitures and Fixtures 18,400.00
Office Equipment. 46,500.00
Delivery Equipment 50,000.00
Total Fixed Assets 151,977.00
B. Working Capital (monthly requirement)
Raw Materials. 187,098.00
Packaging Materials Requirements 54,504.00
Production Supplies 270.83
Production Tools and Utensils 180.00
Office Supplies 100.00
Housekeeping Supplies 213.75
Utilities Expense 9,083.00
Salaries 27,600.00
Fringe Benefits 3,058.00
Gasoline Expense 1,125.00
Total Working Capital 283,232.58

62
C. Pre-Operating Expense
Project Feasibility Study 5,000.00
Taxes, Permits and Licenses 6,835.00
Total Pre-Operating Expense 11,835.00
D. Contingency Reserve (5%)
Fixed Assets 7,598.85
Working Capital 14,161.63
Pre-Operating Expense 591.75
Total Contingency Reserve 22,352.23
TOTAL PROJECT COST 469,396.81

63
 RISK

AND SENSITIVITY

ANALYSIS
64
SOCIO-ECONOMIC IMPACT

The proposed business can be successful if historical facts, previous

amendments, and laws and regulations are used. The anticipated limits,

constraints and company response ideas related to aforementioned assertion are

addressed and outline in this chapter.

establishing and money gene a business is a fulfilling for the proponent. It

will help entrepreneurs in improving their knowledge ,skills, abilities and

especially self-confidence. The proponent will be able to raise her standard of

living by maximizing profits, as well as help her family and the community.

Entrepreneurs should not neglect their moral obligations to their community and

society.

The business aim to promote coconut industry by producing a new taste of

coffee out of coconut. Also, to assist the government not just by the way of

paying revenues and taxes but also providing employment for the unemployed

people for the economic development of our country.

65
Risk and Sensitive and Analysis

Risk and sensitivity analysis is quite important in this business with the

aim to identify feasibility and sustainability of the business avoid losses. an

entrepreneur should anticipate risk and consider potential and practical solutions

to the problem encountered by the business.

Analyzing the business, The following are the possible risk and difficulties

that might be encountered.

 The price of raw materials has risen expectedly.

 Insufficient supply to meet the growing demand in the local market

which may result to importation.

 Employee absences may have an impact on production of supply.

 Natural disasters such as typos and other disaster occur.

 Bankrupcy as a result of poor management.

Following the identify potential threats to the business, strategies were

developed to mitigate the impact of unpending risk and difficulties.

66
 The price of the product will raised when the price of raw materials rises

and natural disaster occur, purchasing raw materials in bulk will be done to take

advantage of the discount. Proper accounting system policies, rules and

regulations for the company's fund for employees will be implemented. To ensure

the success of the business, the hiring of the skill workers will be strictly

enforced.

Table 7.
Projected Sales
Production Allowance for Total Sales Selling Gross
Year
Volume Spoilage (0.02%) (units) Price Sales
2022 58,176 12 58,164 100.00 5,816,400
2023 63,936 13 63,923 115.00 7,351,145
2024 70,272 14 70,258 132.25 9,291,621
2025 77,184 15 77,169 152.09 11,736,440
2026 84,960 17 84,943 174.90 14,856,584

Table 8. Production Volume (in 20g tea bag)

Year Daily Weekly Monthly Yearly
2022 202 1,212 4,848 58,176
2023 222 1,332 5,328 63,936
2024 244 1,464 5,856 70,272
2025 268 1,608 6,432 77,184
2026 295 1,770 7,080 84,960

Table 10. Raw Materials

Requirements
Unit
Items Quantity Unit Total Cost
Cost
Per Month Per Year
Coconut Fruit Sap 1982 pcs 15.00 29,730.00 356,760.00
Stevia 996 box 158.00 157,368.00 1,888,416.00
Total 187,098.00 2,245,176.00

Table 11. Packaging Materials

Requirements Total Cost
Items Quantity Uni Unit Per Month Per Year

67
 t Cost

Sticker Label 2,304 pcs 2.50 5,760.00 69,120.00

Tea Bag 50 pcs 340.35 17,017.50 204,210.00
Pouch Bag 2,400 pcs 76.00 182,400.00 2,188,800.00
Total 205,177.50 2,462,130.00

Table 12. Production Equipment

Items Quantity Unit Unit Cost Estimated Annual
Useful Life Depreciation
Weighing Scale 1 pcs 4,199.00 10 419.90
Pan 1 pcs 1679.00 10 167.90
Electric Stove 1 pcs 5,513.00 10 551.30
Electric Coconut Grater 1 pcs 4,199.00 10 419.90
Tea Bag Packaging Machine 1 pcs 37,064.00 10 3,706.40
Total 52,654.00 5,265.40

Table 13. Production Tools and Utensils

Items Quantity Unit Unit Cost Total Cost
Stainless Basin 5 pcs 155.00 775.00
Stainless Tray 5 pcs 196.00 980.00
Strainless Spoon 3 pcs 135.00 405.00
Total 486.00 2160.00

Table 14. Production Supplies

Items Quantity Unit Unit Cost Total Cost
Apron 30 pcs 35.00 1,050.00
Face Mask 5 box 50.00 250.00
Hand Towel 30 pcs 20.00 600.00
Hair Net 30 pcs 15.00 450.00
Gloves 30 pcs 30 900.00
Total 3,250.00

68
 Table 15. Housekeeping Supplies Quantity Unit Unit Cost Total Cost
Items
Hard Broom 3 pcs 35.00 105.00
Soft Broom 3 pcs 120.00 360.00
Trash Bin 3 pcs 150.00 450.00
Dust Pan 3 pcs 95.00 285.00
Floor Mop 3 pcs 150.00 450.00
Rag 5 pcs 35.00 175.00
Dipper 2 pcs 55.00 110.00
Pail 2 pcs 75.00 150.00
Hand Soap 5 pcs 31.00 155.00
Dishwashing Liquid 5 liters 50.00 250.00
Dishwashing Scrubber 3 pcs 25.00 75.00
Total 2,565.00

Table 16. Furnitures and Fixtures - Production Quantity Unit Unit Cost Total Cost
Items

Working Tables 3 pcs 695.00 2,085.00

Monoblock Chair 3 pcs 300.00 900.00
Ceiling Fan 3 pcs 249.00 747.00
Fire Extinguisher 1 pcs 1,250.00 1,250.00
Total 4,982.00

Table 17. Delivery Equipment Quantity Unit Unit Cost Estimated Annual
Items Useful Life Depreciation
Tricycle 1 50,000.00 10 5,000.00
Total 50,000.00 5,000.00

Table 18. Fuel Expense Quantity Unit Unit Cost Monthly Yearly
Particulars
Gasoline 15 liters 75.00 1,125.00 13,500.00
Total 1,125.00 13,500.00

Table 19. Utilities Expense - Production

Particulars Monthly Yearly
Electricity 1,440.87 17,290.44
Water 695.00 8,340.00

69
 Total 2,135.87 25,630.44

Table 19. Utilities Expense - Administrative Monthly Yearly

Particulars
Electricity 496.84 5,962.08
Water 250.00 3,000.00
Internet Consumption 1,500.00 18,000.00
Total 2,246.84 26,962.08
Table 21. Salaries of Production Workers Daily Weekly Monthly Yearly
Manpower
Production Worker 350.00 2,100.00 8,400.00 100,800.00
Production Helper 350.00 2,100.00 8,400.00 100,800.00
Total 700.00 4200.00 16800.00 201600.00

13th Month
Pay SSS PhilHealth Pag-Ibig
Table 22. Fringe
Benefits of
Production
Workers Monthly Yearly Monthly Yearly Monthly Yearly

Manpower
3,120.0
Production Worker 7,440.00 530.00 6,360.00 260.00
0 149.00 1,788.00
3,120.0
Production Helper 6,720.00 530.00 6,360.00 260.00 0 149.00 1,788.00
6,240.0
Total 14,160.00 1,060.00 12,720.00 520.00 0 298.00 3,576.00

Table 23. Salaries of Administrative Workers Monthly Yearly

Manpower
Production Manager 10,800.00 129,600.00
Total 10,800.00 129,600.00

13th
Month
Pay SSS PhilHealth Pag-Ibig
Table 24. Fringe
Benefits of
Administrative
Workers Monthly Yearly Monthly Yearly Monthly Yearly
Manpower
Manager 8,400.00 530.00 6,360.00 294.00 3,528.0 168.00 2,016.00

70
 0
3,528.0
Total 8,400.00 530.00 6,360.00 294.00 0 168.00 2,016.00

Table 25. Office Equipment Quantity Unit Unit Cost Total Cost
Items
1 set 35,000 35,000
Computer 1 pcs 11,500.00 11,500.00
Printer 46,500.00

Table 26. Office Supplies

Items Quantity Unit Unit Cost Total Cost
Record Book 1 pcs 24.00 24.00
Calculator 1 pcs 125.00 125.00
Ballpeen 2 box 40.00 80.00
Wall Clock 1 pcs 250.00 250.00
Scissor 3 pcs 16.00 48.00
Glue 3 pcs 15.00 45.00
Stapler No.10 2 pcs 50.00 100.00
Bond Paper (500 sheets) 1 128.00 128
Sales Invoice 10 stub 40.00 400
Total 1,200.00

Table 27. Furnitures and Fixtures - Administrative Quantity Unit Unit Cost Total Cost
Items

Monobloc Chair 5 pcs 500.00 2,500.00

Office Table 2 pcs 2,475.75 4,951.50
Ceiling Fan 3 pcs 1499.00 4497.00
Wood Cabinet 1 pcs 1,470.00 1,470.00
Total 13,418.50

71
 PRODUCTION COST
Direct Costs:
Raw Materials T - 10 2,245,176.00
Packaging
T - 11
Materials 2,462,130.00
T-21&
Direct Labor 22 220,858.00
Total Direct
Costs 4,928,164.00
Indirect
Costs/Overhead
Costs:
Production
T-14
Supplies 3,250.00
Production
Tools and T-13
Equipment 2,160.00
Housekeeping
T-15
Supplies 2,565.00
T-
Utilities Expense 19&19 25,630.44
Gasoline
T-18
Expense (50%) 6,750.00
Rent Expense
(75%) 90,000.00
Depreciation
Expense:
Building
Improvements
(75%) 17,698.50
Production
T-11
Equipment 5,265.40
Furniture and
Fixtures- T-13
Production 996.40
Delivery T-18 2,500.00

72
 Equipment
(50%)
Total Indirect
Costs 156,815.74
Total Production
Cost 5,084,979.74
Divide:
Production T-8
Volume 58,176
Production Cost
per Unit 87.41
Add: Mark-Up
(15%) 13.11
Estimated Selling
Price per Unit 100.52
Selling Price per
Unit 95.00

TOTAL PROJECT COST

A. Fixed Assets
Building Improvements 23,598.00
Production Equipment T-11 52,654.00
T-16 &
Furnitures and Fixtures 27 18,400.00
Office Equipment T-25 46,500.00
Delivery Equipment T-17 50,000.00
Total Fixed Assets 191,152.00
Working Capital (monthly
B. requirement)
Raw Materials T-10 187,098.00
Packaging Materials Requirements T-11 205,177.50
Production Supplies T-14 270.83
Production Tools and Utensils T-13 180.00
Office Supplies T-26 100.00
Housekeeping Supplies T-15 213.75
T-19 &
Utilities Expense 19 4,382.71
T-21 &
Salaries 23 27,600.00
T-22 &
Fringe Benefits 24 3,058.00
Gasoline Expense T-18 1,125.00
Total Working Capital 429,205.79
C. Pre-Operating Expense
Project Feasibility Study 5,000.00

73
 Taxes, Permits and Licenses Sched-1 6,835.00
Total Pre-Operating Expense 11,835.00
D. Contingency Reserve (5%)
Fixed Assets 9,557.60
Working Capital 21,460.29
Pre-Operating Expense 591.75
Total Contingency Reserve 31,609.64

TOTAL PROJECT
COST 663,802.43

Schedule 1. Taxes, Permits and Licenses

Particulars 2022 2023 2024 2025 2026

Barangay Business Permit 150.00 150.00 150.00 150.00 150.00
Police Clearane 280.00 280.00 280.00 280.00 280.00
Real Property Tax Clearance 50.00 50.00 50.00 50.00 50.00
Business Tax Clearance 40.00 40.00 40.00 40.00 40.00
Documentary Stamp 200.00 200.00 200.00 200.00 200.00
Mayor's Permit 100.00 100.00 100.00 100.00 100.00
Health and Sanitary Permit 100.00 100.00 100.00 100.00 100.00
Municipal License Fee 4,180.00 4,180.00 4,180.00 4,180.00 4,180.00
Annual Building Inspection 350.00 350.00 350.00 350.00 350.00
Signboard Tax 50.00 50.00 50.00 50.00 50.00
Fire Inspection Fee 105.00 105.00 105.00 105.00 105.00
Community Tax Certificate 300.00 300.00 300.00 300.00 300.00
DTI Registration 315.00 - - - -
BIR Registration 615.00 615.00 615.00 615.00 615.00
TOTAL 6,835.00 6,520.00 6,520.00 6,520.00 6,520.00

Schedule 2. Net
Sales (if applicable)
2022 (7 202
Particulars 2023 2025 2026
months) 4
consider Financial
Sales - - - - - Assumptions
Less: Sales Discounts - - - - - from 2023 to 2026
Net Sales - - - - -

Schedule 3.
Direct Labor
(Salaries and
Fringe

74
Benefits of
Production
Workers)
2022 (7
Particulars 2023 2024 2025 2026
months)
Salaries -
Production 1,411,200.0 1,411,200.0
Workers 117,600.00 0 1,411,200.00 1,411,200.00 0
Fringe
Benefits:
13th Month
Pay 8,260.00 8,260.00 8,260.00 8,260.00 8,260.00
SSS, PagIbig,
PhilHealth 1,878.00 22,536.00 22,536.00 22,536.00 22,536.00
1,441,996.0 1,441,996.0
Total 127,738.00 0 1,441,996.00 1,441,996.00 0

Schedule 4.
Cost of
Goods Sold
2022 (7
Particulars 2023 2024 2025 2026
months)
Raw Materials 1,309,686.00 2,290,079.52 2,335,881.11 2,382,598.73 2,430,250.71
Packaging
Materials 1,436,242.50 2,511,372.60 2,561,600.05 2,612,832.05 2,665,088.69
Direct Labor 127,738.00 1,441,996.00 1,441,996.00 1,441,996.00 1,441,996.00
Factory
Overhead 91,475.85 159,952.05 163,151.10 166,414.12 169,742.40
Cost of Goods
Sold 2,965,142.35 6,403,400.17 6,502,628.26 6,603,840.90 6,707,077.80

Schedule 5.1. Depreciation

Expense - 2022 (7 months)
Annual Overhead Operating
Particulars Ref Total Cost
Depreciation Costs Expense
T-
Production Equipment 12 52,654.00 3,071.48 3,071.48 -
Furnitures and Fixtures - T-
Production 16 4,982.00 581.23 581.23 -
Furnitures and Fixtures - T-
Administrative 27 13,418.50 1,565.49 - 1,565.49
T-
Office Equipment 25 46,500.00 2,712.50 - 2,712.50
Delivery Equipment T- 50,000.00 2,916.67 1,458.33 1,458.33

75
 17
T-
Building Renovation 20 23,598.00 1,376.67 1,032.50 344.17
Total 191,152.50 12,224.04 6,143.55 6,080.49

Schedule 5.1. Depreciation

Expense - 2023 to 2026
Annual Overhead Operating
Particulars Ref Total Cost
Depreciation Costs Expense
T-
Production Equipment 12 52,654.00 5,265.40 5,265.40 -
Furnitures and Fixtures - T-
Production 16 4,982.00 996.40 996.40 -
Furnitures and Fixtures - T-
Administrative 27 13,418.50 2,683.70 - 2,683.70
T-
Office Equipment 25 46,500.00 4,650.00 - 4,650.00
T-
Delivery Equipment 17 50,000.00 5,000.00 2,500.00 2,500.00
T-
Building Renovation 20 23,598.00 2,360.00 1,770.00 590.00
Total 191,152.50 20,955.50 10,531.80 10,423.70

Schedule 6.
Administrative
Salaries
2022
Particulars Ref. 2023 2024 2025 2026
(7months)
Total
Administrative T-
Salaries 23 75,600.00 129,600.00 129,600.00 129,600.00 129,600.00

Schedule 7.
Administrative
Fringe Benefits
2022
Particulars Ref. 2023 2024 2025 2026
(7months)
T- 10,800.0
13th Month Pay 24 10,800.00 10,800.00 0 10,800.00 10,800.00
T-
SSS Contribution 24 3,710.00 6,360.00 6,360.00 6,360.00 6,360.00
T-
PagIbig Contribution 24 1,176.00 2,016.00 2,016.00 2,016.00 2,016.00

76
PhilHealth T-
Contribution 24 2,058.00 3,528.00 3,528.00 3,528.00 3,528.00
22,704.0
Total 17,744.00 22,704.00 0 22,704.00 22,704.00

Schedule 8.1. Rent Expense - 2022 (7

months)
Overhead Operating
Particulars Ref. Amount
Cost Expense
35,000.0
Rent Expense (proportion) 0 26,250.00 8,750.00

Schedule 8.1. Rent Expense - 2023 to

2026
Overhead Operating
Particulars Ref. Amount
Cost Expense
60,000.0
Rent Expense (proportion) 0 45,000.00 15,000.00

Schedule
9.
Business
Tax
Particular 2022 (7
2023 2024 2025 2026
s months)
3,392,900.0 7,351,145.0 9,291,620.5 11,736,440.2 14,856,583.7
Net Sales 0 0 0 9 9
Multiply by
Percentage
Tax Rate 12% 12% 12% 12% 12%
1,114,994.4
Business Tax 407,148.00 882,137.40 6 1,408,372.83 1,782,790.05

note: if
your sales
is more
than P3M
we will
have a
different
computatio
n (we will

77
discuss it
separately)

Schedule 10.1 Utilities Expense - 2022 (7

months)
Overhead Operating
Particulars Ref.
Cost Expense
App-
Electrical Consumption J 10,086.09 3,477.88
App-
Water Consumption J 4,865.00 -
App-
Internet Consumption J 0 0.00
Total 14,951.09 3,477.88

Schedule 10.2 Utilities

Expense - 2023 to 2026
Particulars Ref.
2023 2024 2025 2026
App- 17,988.9
Electrical Consumption J 17,636.25 7 18,348.75 18,715.73
App-
Water Consumption J 8,506.80 8,676.94 8,850.47 9,027.48
26,665.9
Total
26,143.05 1 27,199.23 27,743.21

Schedule 10.3 Utilities

Expense - Administrative
2023 to 2026
Particulars 2023 2024 2025 2026
T-
Electrical Consumption
19 6,081.32 6,202.95 6,327.01 6,453.55
78
 T-
Water Consumption
19 3,060.00 3,121.20 3,183.62 3,247.30
T- 18,727.2
Internet Consumption
19 18,360.00 0 19,289.02 19,867.69
28,051.3
Total
27,501.32 5 28,799.65 29,568.53

Schedule
11.
Operating
Expense
2022
Particular
Ref. (7months 2023 2024 2025 2026
s
)
Project
Feasibility
Study 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Depreciation Sche
Expense d 5.1 12,224.04 20,955.50 20,955.50 20,955.50 20,955.50
Advertising
Expense 2,916.67 5,100.00 5,202.00 5,306.04 5,412.16
Rent Sche
Expense d 6.1 8,750.00 15,000.00 15,000.00 15,000.00 15,000.00
Sche
d 8.1-
Utilities Sche
Expense d 8.3 3,477.88 27,501.32 28,051.35 28,799.65 29,568.53
Administrati Sche
ve Salaries d 6 75,600.00 129,600.00 129,600.00 129,600.00 129,600.00
Fringe
Benefits -
Administrati Sche
ve d 7 17,744.00 22,704.00 22,704.00 22,704.00 22,704.00
Taxes,
Permits and Sche
Licenses d1 6,835.00 6,520.00 6,520.00 6,520.00 6,520.00
Business Tax Sche 407,148.0 1,114,994.4 1,408,372.8 1,782,790.0
Expense d7 0 882,137.40 6 3 5
Office
Supplies
Expense T-26 700.00 1,224.00 1,248.48 1,273.45 1,298.92
536,395.5 1,111,742.2 1,345,275.7 1,639,531.4 2,014,849.1
Total
9 2 9 7 6

79
Schedule 13.
Current
Liabilities
Particulars 2022 2023 2024 2025 2026
Income Tax - - 323,114.94 967,781.73 1,813,090.18
SSS Payable 1,590.00 1,590.00 1,590.00 1,590.00 1,590.00
Philhealth 814.00 814.00 814.00 814.00 814.00
Pag-Ibig 466.00 466.00 466.00 466.00 466.00
Business Tax Payable 58,164.00 73,511.45 92,916.21 117,364.40 148,565.84
TOTAL 61,034.00 76,381.45 418,901.14 1,088,016.14 1,964,526.02

Schedule
12.
Provision
for Income
Tax
Tax Rate
in
Tax on Excess Over
Excess
Net Income Lower Limit Lower Lower Limit
Year Ref. Over
Limit (d)
Lower
Limit (e)
(a) (b) c d=a-b
Sched
4-
0%
2022 ( 7 Sched
months) 9 - 108,637.94 - - - 108,637.94
Sched
4-
Sched
2023 9 - 163,997.40 - - - 163,997.40 0%
Sched
4-
30%
Sched 1,443,716.4
2024 9 5 800,000.00 130,000.00 643,716.45
Sched
4-
32%
Sched 3,493,067.9
2025 9 1 2,000,000.00 490,000.00 1,493,067.91
2026 Sched 6,134,656.8 2,000,000.00 490,000.00 4,134,656.82 32%
4- 2
Sched

80
 9

Tax in Excess Over Lower Limit Income Tax Due/ Provision for Income Tax
(f) (g)
f=dxe h=c+f
- -
- -
193,114.94 323,114.94
477,781.73 967,781.73
1,323,090.18 1,813,090.18

CoCoffee
Projected Statement of Financial Performance
For the Years Ended December 31, 2022 - 2026

Ref 2022 2023 2024 2025 2026

Net
Sale Sche 3,392,90 7,351,14 9,291,62 11,736,44 14,856,58
s d-9 0.00 5.00 0.50 0.29 3.79
Cost of
Goods Sche 2,965,14 6,403,40 6,502,62 6,603,840. 6,707,077.
Less: Sold d-4 2.35 0.17 8.26 90 80
Gros
s
Profi 427,757. 947,744. 2,788,99 5,132,599. 8,149,505.
t 65 83 2.24 38 99
Opera
ting
Expens Sche 536,395. 1,111,74 1,345,27 1,639,531. 2,014,849.
Less: es d-11 59 2.22 5.79 47 16
Net
Profi
t
befo - -
re 108,637. 163,997. 1,443,71 3,493,067. 6,134,656.
Tax 94 40 6.45 91 82
Provisi
on for
Incom Sche 323,114. 967,781.7 1,813,090.
Less: e Tax d-12 - - 94 3 18

81
Net
Profi
t - -
after 108,637. 163,997. 1,120,60 2,525,286. 4,321,566.
Tax 94 40 1.52 18 64

CoCoffee
Projected Statement of Financial Position
As of December 31, 2022 - 2026

R
ef 2022 2023 2024 2025 2026
ASSETS
Current
Assets:
437,270.0 309,575.5 1,793,652 5,332,123 11,518,937
Cash 4 9 .30 .91 .67
Accounts 323,114.9 967,781.7 1,813,090.
Receivable - - 4 3 18
Inventories - - - - -
Total
Current 437,270.0 309,575.5 2,116,767 6,299,905 13,332,027
Assets 4 9 .24 .64 .85
Fixed
Assets
Property,
Plant and
Equipment, 191,152.5 191,152.5 191,152.5 191,152.5
net 0 0 0 0 191,152.50
Less: 12,224.04 33,179.54 54,135.04 75,090.54 96,046.04

82
 Accumulat
ed
Depreciatio
n
Net Book 178,928.4 157,972.9 137,017.4 116,061.9
Value 6 6 6 6 95,106.46
TOTAL 616,198.5 467,548.5 2,253,784 6,415,967 13,427,134
ASSETS 0 5 .69 .60 .31
LIABILITIES AND
OWNER'S EQUITY
LIABILITI
ES
Current
Liabilities:
Accounts 418,901.1 1,088,016 1,964,526.
Payable 61,034.00 76,381.45 4 .14 02
Total
Current 418,901.1 1,088,016 1,964,526.
Liabilities 61,034.00 76,381.45 4 .14 02
Non-
Current
Liabilities
Notes
Payable - - - - -
Mortgage
Payable - - - - -
Total Non-
Current
Liabilities - - - - -
TOTAL
LIABILITI 418,901.1 1,088,016 1,964,526.
ES 61,034.00 76,381.45 4 .14 02
OWNER'
S
EQUITY
Capital,
Ending 663,802.4 555,164.5 391,167.1 1,834,883 5,327,951.
Balance 3 0 0 .55 47
Add: Net (108,637. (163,997. 1,443,716 3,493,067 6,134,656.
Income 94) 40) .45 .91 82
Total
Owner's 555,164.5 391,167.1 1,834,883 5,327,951 11,462,608
Equity 0 0 .55 .47 .29
TOTAL 616,198.5 467,548.5 2,253,784 6,415,967 13,427,134
LIABILITI 0 5 .69 .60 .31
ES AND

83
OWNER'
S
EQUITY

CoCoffee
Projected Statement of
Changes in Equity
December 31, 2022 - 2026

Capital,
Beginnin
g 663,802.4 555,164.5 1,511,768.6 4,037,054.8
Balance 3 0 391,167.10 2 0
- -
Net Profit 108,637.9 163,997.4 1,120,601.5 2,525,286.1 4,321,566.6
Add: after Tax 4 0 2 8 4
Additional
Investment
s - - - - -
555,164.5 391,167.1 1,511,768.6 4,037,054.8 8,358,621.4
Total 0 0 2 0 4
Withdrawa
Less: ls - - - - -
Capital,
Ending 555,164.5 391,167.1 1,511,768.6 4,037,054.8 8,358,621.4
Balance 0 0 2 0 4

84
 CoCoffee
Projected Statement of Cash Flows
December 31, 2022 - 2026
Ref 2022 2023 2024 2025 2026
Cash Flows
Provided by
Operations:
Net income - - 3,493,067.9
before tax 108,637.94 163,997.40 1,443,716.45 1 6,134,656.82
Add: Depreciation 12,224.04 20,955.50 20,955.50 20,955.50 20,955.50
Increase/
(Decrease) in
Liabilities 61,034.00 15,347.45 342,519.69 669,114.99 876,509.89
Cash Flows
Provided by - 4,183,138.4
Operations - 35,379.89 127,694.45 1,807,191.64 1 7,032,122.21
Less: Income Tax - - 323,114.94 644,666.80 845,308.45
Net Cash Flows
Provided by - 3,538,471.6
Operations - 35,379.89 127,694.45 1,484,076.71 1 6,186,813.76
Cash Flows
from
Investment
Activities:
Acquisition of
Fixed Assets 191,152.50 - - - -

85
Proceeds from
Disposal of Fixed
Assets - - - - -
Net Cash Flows
from Investment
Activities 191,152.50 - - - -
Cash Flows
from
Financing
Activities:
Owners'
Investments 663,802.43 - - - -
Less: Withdrawals - - - - -
Net Cash Flows
from Financing
Activities 663,802.43 - - - -
Add: Cash
Beginning
Balance - - - - -
Cash Ending
Balance - - - - -
FINANCIAL ANALYSIS
Year Net Income Net Sales
2022 -108,637.94 3,392,900.00
2023 -163,997.40 7,351,145.00
2024 1,120,601.52 9,291,620.50
2025 2,525,286.18 11,736,440.29
2026 4,321,566.64 14,856,583.79
TOTAL 7,694,819.01 46,628,689.58

Average Net Income x 100

D. Return on Investment =
Total Projected Cost

1,538,963.80
=
663,802.43

= 231.84

86