PRODUCTION OF CRISPY EGGPLANT NUGGETS IN LIBIS BINANGONAN,

RIZAL

A Feasibility Study

Presented to

the Faculty of College of Business

University of Rizal System

Binangonan, Rizal

In Partial Fulfillment

of the Requirement for the Degree

Bachelor of Science in Business Administration

major in Financial Management

CHRIZLY MAEA P. CERDA

KRISTINE C. SALCEDO

KRYSS ANGEL A. TONIZA

November 2022
 1

CHAPTER 1

BACKGROUND OF THE STUDY

INTRODUCTION

The most popular and frequently requested food item by children, nuggets

are kid-friendly. According to a study done on a well-known fast food chain in the

past, a 10-piece box of chicken nuggets will provide about half of an adult's daily

salt needs. Consuming more sodium than is advised might increase the risk of

stroke, heart disease, and cancer as well as other health issues like high blood

pressure. High levels of sugar, fat, and preservatives are present in nuggets

because they are fried in hydrogenated oil. They are therefore a bad choice,

especially if you consume them frequently. This is so because chicken isn't the

chicken nugget's primary ingredient.

Eggplant is a nutrient-rich, low-calorie meal with a high fiber content that

has a number of possible health advantages. Eggplants are an easy and delicious

addition to any healthy diet, helping with everything from blood sugar control and

weight loss to lowering the risk of heart disease. We chose eggplant because of

its high fiber, low calorie, nutrient-rich, and other potential health benefits. In

contrast to chicken nuggets, which are chicken items made from chicken meat that

has been breaded or coated, fried, or baked, eggplants are a straightforward,

delightful addition to any healthy diet since they support our bodies' overall health,

help avoid disease, and help with weight loss.

 2

Children today do not consume the required daily amount of veggies. This

has long-term repercussions on children's growth and development since it has

increased childhood obesity and resulted in inadequate food intake. We feel that

nuggets are a highly popular dish, thus our research aims to produce vegetarian

nuggets for both children and adults. Instead of using chicken meat as the primary

component, we substituted eggplant to make it healthier and more affordable for

everyone, especially kids.

As a result, we will develop a healthful dish dubbed "crispy eggplant

nuggets" for everyone, but especially for kids who dislike eating veggies. We will

develop this dish to assist adults and kids to naturally eat their vegetables. Our

main objective is to provide affordable, delicious, and nutritious high-quality, crispy

eggplant nuggets. The product we'll make has a unique quality that helps parents

encourage reluctant veggie eaters without using pressure. This is not just a regular

tasting, nutritious nugget that is also sold at a very cheap price. Additionally, we

selected crispy eggplant nuggets since, in the first place, we observe a lot of young

pupils who exclusively purchase fast food and soda outside of school. And by

doing so, we'll make money and maybe even contribute to the health of young

people. Since there is a pandemic, we recommend crispy eggplant nuggets to

keep people healthy and at the lowest possible cost.

BACKGROUND INFORMATION

Vegetables are full of essential vitamins, minerals, and antioxidants that

provide many important health benefits to your body. For instance, carrots are known

for being very high in vitamin A, which plays an important role in eye health, as you
 3

grow older. Eating vegetables every day is important for health. They provide

essential vitamins, minerals, and other nutrients, such as antioxidants and fiber.

Research consistently shows that people who eat at least 5 servings of vegetables

a day have the lowest risk of many diseases, including cancer and heart disease.

Eggplants are rich in fiber and antioxidants. A serving of eggplant can

provide at least 5% of a person's daily requirement of fiber, copper, manganese,

B-6, and thiamine. It also contains other vitamins and minerals. In addition,

eggplants are a source of phenolic compounds that act as antioxidants. The

eggplant has been an ingredient in traditional medicine for thousands of years. In

the ancient Indian system of ayurvedic medicine, practitioners used white eggplant

to treat diabetes and the roots to relieve asthma. While eggplant isn't the most

nutritious vegetable, it does give you a decent supply of potassium and fiber. And

at just 25 calories and less than 1 gram of fat per serving, it's a pretty guilt-free

food -- as long as you don't soak it in oil. Eggplant has antioxidants like vitamins A

and C, which help protect your cells against damage. It's also high in natural plant

chemicals called polyphenols, which may help cells do a better job of

processing sugar if you have diabetes. Eggplant is used in the cuisines of many

countries. Due to its texture and bulk, it is sometimes used as a meat substitute in

vegan and vegetarian cuisines. Eggplant flesh is smooth. Its numerous seeds are

small, soft and edible, along with the rest of the fruit, and do not have to be

removed.

A chicken nugget is a food product consisting of a small piece of deboned

chicken meat that is breaded or battered, then deep-fried or baked. Invented in the
 4

1950s, chicken nuggets have become a very popular fast food restaurant item, as

well as widely sold frozen for home use. The chicken nugget was invented in the

1950s by Robert C. Baker, a food science professor at Cornell University, and

published as unpatented academic work. This bite-sized piece of chicken, coated

in batter and then deep fried, was called the "Chicken Crispie" by Baker and his

associates.

The demand for ready to eat and easily prepared precooked foods is

increasing due to the lack of time for food preparation. However, the consumption

of such foods has generated health concerns (OLIVEIRA et al., 2013).

The meat industry has been searching for food additives and ingredients for

their products that provide nutritional benefits, such as the use of fibres, minerals

or bioactive compounds that enable the reduction of the product fat levels

(SELGAS et al., 2005).

The use of dietary fibre in meat products comes as an alternative to fat

substitution since it does not compromise the texture and increases the water

binding capacity, with positive results and cost reductions (SHIMOKOMAKI and

OLIVO, 2006). The inclusion of dietary fibres as ingredients in meat products has

been considered of interest for the partial replacement of the meat, due to their

inherent functional and nutritional effects (HUR et al., 2009; KUMAR et al., 2010).

According to Giuntini et al. (2003), the ideal characteristics for fibres include

a high concentration, good proportion between the soluble and insoluble fibres,

and soft sensory properties. The positive effects on human health should also be
 5

considered, since this aspect is important to consumers. Anti-nutritional

compounds should not be present. For industries, availability, affordability and

costs are essential and decisive. Several types of fibre have been analysed or

combined with other ingredients in the formulation of meat products with reduced

fat, such as restructured and emulsified products (WEISS et al., 2010). According

to García et al. (2002), the main fibres that can be used in meat products are those

extracted from orange, beetroot, wheat, oat and pea.

Objectives of the Project

The purpose of the research is to assess the viability of producing crispy eggplant

nuggets in Libis Binangonan, Rizal.

It specifically aims to know the following:

1. To offer a cost-effective, superior product.

2. To research how competitive the company is in the market.

3. To support fresh, creative thinking and assess the market possibilities for it.

4. To give the local population a job.

5. To support the growth of the local economy by promoting local products.

 6

Importance of the Project

The findings of this study may be useful to business owners, those who are

just starting out entrepreneurs, those who enjoy conducting business, and

particularly to the people especially children who live in Libis Binangonan, Rizal,

and other locations. As it leads students through the various stages of

understanding distribution and manufacturing, everyone can gain from it.

To the Customers. This will help the customer to maintain their healthy

eating habits and also help and serve as guide in additional knowledge for

everyone who wants to start a production business.

To the Researchers. The study provides additional and helpful knowledge

to researchers that can be a guide for a successful future.

To the Entrepreneurs. To help them to start innovative business and

broadening their knowledge and skills in related to business.

To the Market. The business can be useful in the market because it

produces affordable and nutritious nuggets

To the Local Government. Business can be beneficial to the government

because business can and will generate income and pay the necessary taxes that

are levied.
 7

Scope and Limitations

This study focuses in the Production of new, affordable, and nutritious

product that can be enjoyed by all ages, especially children because they can now

eat healthy nuggets in an unforced way and innovative way.

The study of the production of “crispy eggplant nuggets” will be located at

Libis Binangonan Rizal, which offer a high quality, healthy and affordable eggplant

nuggets. All of the people residing in Binangonan will be covered as part of the

business.

The product will be distributed through direct and online sales, and It is also

open for resellers. Orders are also accepted from the customers outside the area

of Binangonan, Rizal from those people who wants to purchase our product. The

researchers will manage the said business. It consists of product maker, helper

and sales manager. The business operation starts from 7 o’clock in the morning

until 3 o’clock in the afternoon. In online platform, it can message anytime for pre-

order and bulk orders.

 8

Definition of Terms

In this study, the following terms are defined operationally and conceptually

for better understanding.

Antioxidant are substances that may protect your cells against free radicals,

which may play a role in many diseases.

Ayurvedic medicine a medical system from India that has been used for

thousands of years. The goal is to cleanse the body and to restore balance to the

body, mind and spirit.

Diseases a particular quality, habit, or disposition regarded as adversely affecting

a person or group of people.

Eggplant is the main ingredient of crispy eggplant nuggets.

Eggplant nuggets a product in which chicken replaced with eggplant that can be

healthy and beneficial to everyone.

Fiber is a type of carbohydrate that the body can’t digest.

Inadequate lacking the quality or quantity required; insufficient for a purpose.

Polyphenols a substance that is found in many plants and gives some flowers,

fruits, and vegetables their color.

Reluctant is not willing to do something and therefore slow to do it.

 9

CHAPTER 2

MANAGEMENT, PROPONENTS, PERSONNEL, AND ORGANIZATION

Management serves as a guide for a team of individuals working in the

organization and organizing their efforts towards the achievement of a common

goal. Management is the coordination and administration of tasks to achieve a

goal. It also entails the process of establishing and upholding a working

environment that enables organization members to collaborate and accomplish

organizational goals quickly and effectively.

Through effective planning, organizing, managing, and directing,

management increases productivity, which in turn helps the business become

more efficient. Setting an organization's strategy and managing employee (or

volunteer) efforts to achieve goals through the use of available resources, such as

financial, natural, technological, and human resources, are included in

management.

A dynamic, life-giving component of an organization is management.

Without it, the production resources are perpetually underutilized and incapable of

being used for production. In actuality, no nation would ever be formed without

effective administration. The success or failure of every business organization

depends on its management. Management is the act of bringing people together

to accomplish desired goals and objectives using available resources efficiently

and effectively. Management organizes by creating patterns of relationships

 10

among workers, making the best use of resources to accomplish business

objectives.

During the Pre-operating period

Before establishing the business, there are a number of crucial factors that

must be taken into account. To determine whether the proposed business is

practical and viable, the proponents will conduct survey through the use of google

form.

The people who will assume complete accountability for the organization's

entire endeavor are the proponents. The proponents contribute to the operation

and process by imparting knowledge and skills necessary to achieve the goals of

the proposed business. As the project's owners, the researchers are in

responsibility of speaking with governmental entities to get the necessary

paperwork throughout the pre-operational stage.

Prior to the start of regular business operations, a number of tasks must be

completed. The business owner must complete registrations in various legal

offices before launching a business. DTI registrations, local government

registrations, business permits, BIR registrations, SSS registrations, DOLE

registrations, Philhealth registrations, MERALCO registrations, and Manila Water

registrations are some examples.

During the Operating Period

 11

The majority of the role, duties, and obligations would be handled by the

researchers, who are also the business owner, during the operating period.

Considering that the company is just getting started.

The owner would be in charge of hiring experienced personnel who would

make a significant contribution to the business.

Proponent

Owner

The proposed business is owned and managed by the researchers. The

owner is in charge of overall management of the business; the owner which is the

researchers is also the one who invest money and responsible to problems may

encounter. Starting the business will need at least 150,000 in initial capital for the

acquisition of the needed equipment and materials and etc. The renovation of

facilities is handled by the laborers.

Project Originator, Promoters, and Founders

The researchers' decision to establish a company that would be new to the

market gave rise to the suggested corporation. The creators and founders are the

researchers.

The friends, family, and relatives of the researchers are the business's

promoters.
 12

Personnel or Workforce

During the Pre-operating period

The owner of the business is the one to hire laborers and or personnel

and the one responsible in dealing with government to secure necessary

documents to start the business. Table 1 shows the functions and number of

employee needed during Pre-operating period.

Table 1

Personnel or workforce during Pre-Operating Period

Personnel or Qualifications Duties, Tasks, Functions No.

Workforce Needed

Managers • Knowledgeable • Responsible for 3

or Owners • Leadership business registration

• Communication permits

• Problem Solving • Responsible for all

• Time Management business expenses.

• Responsible for renovation

Laborers • Experienced of workplace. Installation 3

of electric wires and pipes,

water and etc.

 13

The table shows the duties and responsibilities of owner and laborers

during Pre-Operating Period.

Table 2

Investment Cost

One time Cost

Renovation Cost 50,000.00

Permits and Licenses 4,000.00

Office Supplies 721.00

Advertising Expense 3,000.00

Furniture and Fixtures 8,250.00

Production Materials and Equipment 14,755.00

Total one time Cost 80,726.00

Monthly Cost

Rent expense 2,500.00

Utility Expense 2,000.00

Salaries 9,000.00

Direct Labor 9,000.00

Direct Materials 2,050.00

Indirect Materials 1,165.00

Total Monthly Cost 25,715.00

Total Investment Cost 106, 441.00

 14

During Operating Period

This is where the actual operation of the business starts and the product

manufacturing starts. The owners handled most of the position and

responsibilities since the business is in starting phase.

Table 3

Personnel or workforce during the Operating Period

Personnel Qualifications Duties, Tasks, Functions No.

or Needed
Workforce
- Knowledgeable - Responsible for communicating the
Owner and 3
- Leadership consumer
Managers
- Communication -At least have basic knowledge or skills in
- Problem Solving the kitchen
- Time Management - Responsible in everything, includes
purchasing materials and equipment
- Owners which is the researchers also
help the Production worker in making the
product.
Production - High school or college - Responsible for making the products 2
worker graduate - Responsible for the kitchen tools
- Has the skills and knowledge
with the kitchen tools and
willing to be trained
- High school or college - Responsible for product sales
Sales 1
Graduate - Responsible for accommodating buyers
Manager
- Have sales skills or consumers.
 15

Table 2 shows the list of personnel required in the operating period of the

business. The researchers close to minimize the number of employees required.

Organization for the Operating Period

The proposed business is in the form of Partnership. It is a form of business

owned by multiple people which is the researchers of the study.

Form of Business Organization

The researchers decided on a partnership because we all share

responsibility for running the proposed business and for managing its profits or

losses. Additionally, a partnership aids in decision-making, problem-solving, and

future business goals. The researchers also intended to investigate a lot of the

corporate world.

Organizational Structure

An organizational structure outlines how tasks are assigned, coordinated,

and overseen in order to achieve organizational objectives. The basis upon which

standard operating procedures and routines are built is provided by organizational

structure. The goal of an organizational structure is to aid in the accomplishment

of the organization's goals and objectives as well as the effective and efficient

completion of staff tasks. In addition to assigning employees their specific work

 16

duties and responsibilities, an organizational structure aids management in

coordinating and managing operations.

Low productivity, significant staff churn and hiring issues, a mismatch

between technology and decision-making, and the incapacity of the company to

expand are all signs of a weak organizational structure. Your company can run

and expand in a way that you can better manage with the aid of an effective

organizational structure. An effective organizational structure results in internal

communications that are consistent, a unified marketing message, and a culture

that supports cohesion and high morale.

Organizational structures are essential for businesses because they

support the implementation of effective decision-making procedures. Businesses

can make better decisions more quickly by giving specialized jobs to lower-level

staff.

Owners

Production Sales
Makers Manager

Figure 1

Organizational Structure of the Business

Figure 1 showing the organizational structure of “Crispy Eggplant Nuggets”.

 17

Table 4

Project Implementation Time Table

Activities Months Allotted

Feasibility Study Preparation September 1, 2022 – January 31,

2023

Funds Preparation February 1, 2023 – March31, 2023

Finding Location April 1, 2023 – April 30, 2023

Organizing Licenses and Permits May 1, 2023 – May 15, 2023

Facilities, Kitchen Tools, and Supplies May 16, 2023 – May 31, 2023

Hiring of Employees June 1, 2023 – June 15, 2023

Promotion June 16, 2023 – June 30, 2023

Business Operation July 1 onwards

Table 3 show the sequence of activities to be implemented with

corresponding months as the changes in the business grows. It is necessary to

schedule all activities to be accomplished.

 18

2022 2023

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Research

Funds

Location

Licenses
and
Permits

Facilities,
Tools and
Supplies

Employees

Promotion

Business

Operation

Figure 2

GANTT CHART

GANTT chart showing the sequence of activities before the operation and

time it will take for each activity.

 19

CHAPTER 3

MARKETING

This chapter details the supply, expected supply, demand, pricing, and

marketing strategies for the business "Crispy Eggplant Nuggets” in Binangonan

Rizal . The Primary target of the said business is the households in Binangonan

Rizal.

Advertising, selling, and delivering items to customers or other businesses

are all parts of marketing, which also incorporates the marketing mix, commonly

referred to as the four Ps: product, pricing, place, and promotion.

The study of market behavior, where changes in trends and consumer

interests are continual, as well as ongoing engagement with customers in a way

that educates, informs, and develops relationships through time, is what is

referred to as marketing

Marketing is also one of the said life lines of every business. Without

marketing, your business is as good as dead. No business runs a long life time

without marketing. The business's name also depends on a good marketing.

Good marketing results to a business's good profitability.

Projected Consumer Demand

The proponents will be using the population of Binangonan Rizal for

computing the supply and demand.

 20

Table 5

Projected Population of Binangonan Rizal in year 2015 and 2020

Year Population Population Growth

2015 282,474 2.36%

2020 313,631 2.23%

The table 5 shows the projected population of Binangonan. These data

were gathered by the researchers through online website of Binangonan Rizal.

Demand

Demand is one of a firm's determining elements because it has an impact

on both economic growth and corporate expansion. Demand for anything or

service means that the consumer wants it and is willing and able to pay for it. As

a result, it also determined the demand for the items that a company would offer

in the needs and wants of the target market, with a wide range and satisfaction of

nourishing and healthful product.

The quantity of a specific commodity or service that a consumer or group

of consumers are willing to purchase at a specific price. Because buyers will

desire to purchase more as the price drops, the demand curve typically has a

downward slope. Price is only one of several variables that affect demand; other

considerations include the cost of complementary and replacement goods. In

 21

extreme situations, demand might not even be affected by price or be practically

limitless at a certain price. One of the two primary factors affecting market

pricing, together with supply, is demand.

To determine whether people would be interested in trying the Crispy

Eggplant Nuggets the researchers would prepare, the researchers surveyed 100

participants in several barangays of Binangonan Rizal.

Are you willing to Purchase Crispy Eggplant Nuggets?

Willing Not Willing

5%

95%

Figure 3

Figure 3 showing the results of the survey in several barangays in

Binangonan, Rizal. Ninety-five (95) percent showed interest in purchasing

Eggplant Nuggets while five (5) percent showed no interest. The product is

feasible and viable.

 22

Table 6

Projected Annual Demand of Crispy Eggplant Nuggets

Year Demand

2021 297,950

2022 304,595

2023 311,388

2024 318,332

2025 325,431

The table 6 shows the projected demand in Binangonan, Rizal by

multiplying the projected population which is 313,631 with percent of willing to

buy crispy eggplant nuggets that resulted to 95%. The researchers used the

population growth rate for the increase in demand to level with the increase in the

target population.

Supply

Supply is the amount of something that firms, producers, laborers, providers of

financial assets, or other economic agents are willing provide to the marketplace

Supply is often plotted graphically with the quantity provided (the independent

variable) plotted horizontally and the price (the dependent variable) plotted

vertically.
 23

Table 7

Market Supply

Competitors Supply Per Month Supply Per Year

Competitor 1 120 1,440

Competitor 2 400 4,800

Competitor 3 1,100 13,200

Competitor 4 800 9,600

TOTAL 2,500 29,040

The table shows the projected supply based on the service revealed by

the existing competitor.

Projected Supply

Table 8

Projected Supply of Crispy Eggplant Nuggets

Year Supply
2021 29,040
2022 29,688
2023 30,350
2024 31,027
2025 31,719
 24

The proponents get the projected supply for the next five years by 12

which is the total number of months a year. The 2.23% increase in supply per

year is the assumption of the researchers.

Table 9

Demand and Supply Gap Analysis

YEAR DEMAND SUPPLY D-S GAP Unsatisfied

market
2021 297,950 29,040 268,910 90%
2022 304,595 29,688 274,907 90%
2023 311,388 30,350 281,038 90%
2024 318,332 31,027 287,305 90%
2025 325,431 31,719 293,712 90%

Table 12 shows the demand and supply analysis indicating of demand

supply gap, and percentage of unsatisfied market, over which there is an

application of analyzing and producing crispy eggplant nuggets. The percentage

of unsatisfied market shows that the business is viable and feasible.

Pricing

Pricing is the process whereby a business sets the price at which it will

sell its products and services, and may be part of the business marketing plan. In

setting prices, the business will take into account the price at which it could
 25

acquire the goods, the manufacturing cost, the market place, competition, market

condition, brand, and quality of the product.

Setting the right price is an important part of effective marketing. It is the

only part of the marketing mix that generates revenue (product, promotion and

place are all about marketing costs). Price is a marketing variable that can be

changed most quickly, perhaps in response to a competitor price change.

Table 10

Manufacturing Cost (Daily) Quantity Price

Eggplant 10kg ₱1,000.00
Egg 2 tray ₱440.00
Cornstarch 3kg ₱180.00
Breadcrumbs 2kg ₱200.00
Crispy fry 2pcs/sachet ₱50.00
Black Pepper 1/2 ₱150.00
Magic Sarap Seasoning 6pcs ₱30.00
Packaging (tubs) 121pcs ₱605.00
Total Manufacturing Cost ₱2,655.00
Total Overhead Cost ₱244.77
Total Direct Labor Cost ₱1,410.00
Total Cost of Production ₱4,309.77
Divide by output 121
Unit Cost ₱35.62
Mark up ₱34.38
Selling Price ₱70.00
 26

Table 11

Competitors and Crispy Eggplant Nuggets Price

Brand Price

Crispy Eggplant Nuggets P70.00

Competitor A P75.00

Competitor B P95.00

Competitor C P105.00

Competitor D P125.00

The table shows the price per tub of Crispy Eggplant Nuggets and price

per pack of competitors.

Marketing Program

A marketing program is a coordinated and well-designed set of activities to

achieve marketing objectives. Marketing objectives are strategic sales goals that

fit the products' strengths and are based on various characteristics of the product

Marketing is a broad field, encompassing elements as diverse as advertising.

brand and logo design, sales calls, web sites, brochures, packaging, shows

conferences and other events, and so on.

The target market of the business Crispy Eggplant Nuggets is the overall

population of Binangonan Rizal. The target market is families residing in the said
 27

location. The quality of the product that is offered by Crispy Eggplant Nuggets is

that it is really affordable; anyone from any age especially kids can enjoy it, every

household can afford the said product, it also has the texture and taste of the

regular nuggets, and that the product is really innovative as it is produced using

eggplant as the main ingredient instead of chicken meat.

Channel of Distribution

It can be the internet or wholesalers, retailers, or distributors, distribution

channels are chain of businesses or intermediaries through which goods or

services pass until it reaches the end consumer. Those channels are broken into

direct and indirect forms, with a direct channel allowing the consumer to buy the

goods from the manufacturer and an indirect channel allowing the consumer to

buy the goods from the wholesaler.

Wholesalers/Retailers
Crispy Eggplant Nuggets

Consumer/Households

Figure 4

Channel of Distribution

Channel of Distribution of Crispy Eggplant Nuggets, starting from the

producer, delivering the product to the wholesale market, or directly to the

consumers.
 28

Promotion

It is the process of introducing product or business to a certain target

market, consumers, or the whole public.

The proponents of the business use tools like tarpaulins, paper materials,

and also social media advertisements to spread the word about the business to

attract and persuade more buyers to purchase the product.

Projected Sales and Quantity

Table 12

Projected Sales and Quantity of Crispy Eggplant Nuggets ANNUALLY

Year Pieces of Quantity Price Per Projected Sales

nuggets per tubs (Tubs) Tub (Annual)
2021 20 29,040 70.00 2,032,800

2022 20 29,688 70.00 2,078,160

2023 20 30,350 70.00 2,124,500

2024 20 31,027 70.00 2,171,890

2025 20 31,719 70.00 2,220,330

The table shows the projected sales of five (5) years of Crispy Eggplant

Nuggets. The projected supply of quantity is multiplied by price per tub of Crispy

Eggplant Nuggets. The amount will be the projected sales. Annually, the increase

in sales will be 2.23 percent.

 29

Table 13

Projected Sales and Quantity (DAILY, WEEKLY, MONTHLY, YEARLY)

Per Tubs Qty. of nuggets Price Per Projected

per tubs (pieces) Tub Sales
DAILY 121 tubs 2,420 pieces 70.00 8,470
WEEKLY 605 tubs 12,100 pieces 70.00 42,350
MONTHLY 2,420 tubs 28,400 pieces 70.00 169,400
YEARLY 29,040 tubs 580,800 pieces 70.00 2,032,800

The table shows the projected sales and quantity of the seafood nuggets,

in which the business can produce one hundred twenty-one (121) tubs with two

thousand four hundred twenty (2,420) pieces of nuggets per day, six hundred five

(605) tubs with twelve thousand one hundred (12,100) pieces per week, two

thousand four hundred twenty (2,420) tubs with twenty-eight thousand four

hundred (28,400) pieces per month, and twenty-nine thousand forty (29,040)

tubs with five hundred eighty thousand eight hundred (580,800) pieces annually.
 30

Chapter 4

PRODUCTION, FACILITIES AND PRODUCT

Production is the process of transforming tangible and intangible inputs into

products or services. In Production, it is more important to focus on creating a

product or service to help customers and to meet their needs. Production also

focuses on mastering all processes and operations to make the product useful and

safe so that it can fully satisfy customers. The chapter deals with product

specification, product process, capacity and schedule, layout and design of

facilities, machines and equipment required, supply and raw materials.

Production refers to the procedures and techniques used to convert both

material and immaterial inputs into finished goods and services. The production

function can be defined as the specification of the minimal input requirements

necessary to produce specified quantities of output, or alternatively, as a function

that determines the output of a firm, an industry, or an entire firm for all

combinations of inputs. Given the set of all technically feasible combinations of

outputs and inputs, only those combinations that cover a maximum output for a

specified set of inputs constitute the production function.

Production is the process of converting raw materials, both tangible and

intangible, into finished goods or services. In production, it is more crucial to

concentrate on developing a good or service that will benefit clients and fulfill their
 31

needs. In order to fully please customers, production also emphasizes mastering

all procedures and processes that make the product useful and secure.

The chapter covers product specifications, product processes, capacity and

schedules, facility structure and design, necessary machines and equipment,

supply, and raw materials.

Product Specification

Crispy Eggplant Nuggets will be selling at most affordable price, and can

eat in any occasions such as breakfast, lunch and dinner. And also can be

“meryenda” or “pulutan” depending on the way the customers want it to be

consumed.

The product is called Crispy Eggplant Nuggets wherein eggplant is

incorporated into the mixture to provide a new twist to this crunchy and bite-sized

delicacy that has been accepted through generations. The researchers of the study

came with the idea of creating healthier product. Eggplant nuggets consist of iron,

protein, vitamins, and minerals.

Crispy Eggplant Nuggets also take the appearance and the taste of the

regular commercial nuggets to the point they never point out the difference

between them. It is because the researchers would like to present eggplant in new

and innovative way that the society embrace and patronize it.
 32

Production Process

1. Prepare all the ingredients.

2. Wash the eggplant and cut it in thin but not ultra-thin to hold its shape.

3. After cutting, add salt and boil it for few minutes.

4. After boiling, drain and wait for it to cool.

 33

5. Prepare the bowls filled with flour mixing with black pepper and crispy fry,

egg mixing with magic sarap flavor, and breadcrumbs.

6. Dip the nuggets first in egg, second in the flour and again in the egg and

finally dip and roll it in the breadcrumbs.

 34

7. And here’s the result. (cooked and uncooked)

8. Put it in the tub and sealed it.

9. Put inside the freezer. Its ready for selling

 35

Production Schedule

The business production’s estimated increases 2.23% annually. The

earning period of Crispy Eggplant Nuggets is normally can be done

quarterly.

The business operates its production from Mondays to Friday, from

7:00 A.M in the morning and ends at 3:00 P.M in the afternoon.

The distribution of the said product took place from Saturday at 11:00

A.M to 3:00 P.M.

The acquisition of the raw materials required from Daily, 5:00 A.M

to 6:30 A.M.

Table 14

Production Time Table

Days Time
Working Hours Monday - Friday 7:00 a.m – 3:00 p.m
(Production)
Product Distribution Saturday 11:00 a.m – 3:00 p.m
Ingredient Acquisition Daily 5:00 a.m – 6:30 a.m

The table shows the time table of the business. The required

working hours will be five (5) weekdays and one (1) day for Ingredient

Acquisition.

PHYSICAL FACILITIES

The business “Crispy Eggplant Nuggets” is acquired five (5)

facilities. The use of the facilities is explained on the next table as follows.
 36

Production Area Wash

Room

Office Area

Cashier
Storage Room

Figure 5

Facilities Layout

Table 15

Physical Facilities of Crispy Eggplant Nuggets

Cashier This area wherein transactions from the

consumer take place.
Production Area Production of Crispy Eggplant Nuggets takes
place.
Storage Room This room where the utensils and equipment
stored. And also finished products/goods.
Wash Room Place where workers can relieve themselves.
Office Area This area presented where the owners
administers the transaction inside the firm.

The table 13 explains the use of each facility to be used by the said

business.
 37

Production Input

The acquisition of the main ingredients such as eggplant can be

acquired in the market. Together with the equipment, utensils, kitchen

tools and cleaning materials. These are the required items possible to

make the business operation come to reality.

Table 16

Furniture and Fixtures

ITEMS QTY. TOTAL PRICE

Reception table and chair 1 set 2,800.00
Provide by
Production Table 1 1,500.00 the owner
which is
Wall Fan 2 2,200.00 the
Ventilators 1 1,000.00 proponents
Chairs (plastic) 3 750.00
TOTAL AMOUNT 8,250.00

Table 17

Office Supplies

ITEMS QTY UNIT PRICE TOTAL PRICE

Calculator 1 70.00 70.00
Scissor 2 18.00 36.00
Stapler 1 30.00 30.00
Staple wire 2 boxes 30.00 60.00
Scotch tape 5 rolls 20.00 100.00
Ball pens 1 box (10pcs) 5.00 50.000
Bond Paper 1 ream - 200.00
Sales Receipts 5pcs. 35.000 175.00
TOTAL AMOUNT 721.00
 38

Table 18

Production Materials and Equipment

ITEMS QTY. UNIT PRICE TOTAL PRICE

Bowls 6 60.00 360.00
Chopping board 3 80.00 240.00
Knife 3 180.00 540.00
Tubs 50 5.00 250.00
Gas Tank 1 2,000.00 2,000.00
Gas Stove 1 2,800.00 2,800.00
(double burner)
Strainer 1 80.00 80.00
Tong 1 60.00 60.00
Freezer 1 8,000.00 8,000.00
Casserole 1 350.00 350.00
Spoon & Fork 1 set 75.00 75.00
TOTAL 14,755.00
AMOUNT

Table 19

Production Ingredients (Acquisition: DAILY)

PRICE
Eggplant (10kg) 1,000.00
Egg (2 tray) 440.00
Cornstarch (3kg) 180.00
Breadcrumbs (2kg) 200.00
Crispy fry (2pcs sachet) 50.00
Black Pepper ½ 150.00
Magic Sarap Seasoning (6pcs) 30.00
TOTAL AMOUNT 2,050.00
 39

Table 20

Cleaning Materials

ITEMS QUANTITY PRICE

Broom and Dust Pans 2 sets 260.00
Trash Bins 3 150.00
Mops 2 200.00
TOTAL 610.00

Table 21

Production Area Proper Suit

ITEMS QUANTITY PRICE

Hair Nets 6 180.00
Gloves 3 150.00
Aprons 3 225.00
TOTAL AMOUNT 555.00

Table 22

Utilities

UTILITIES AMOUNT (MONTHLY)

Manila Water 700.00
Electricity 1,300.00
Internet Connection 999.00
Rent 2,500.00
 40

WASTE DISPOSAL

Corporate social responsibility, seized a huge purpose and sense of

belonging to each individual person on every business. Businesses should

possess and anticipated to be attentive on the environment and be

equitable as well taking care of the profit of the business.

The business does not use any harmful waste nor any harmful

chemicals that can destroy and damage the environment. The collection of

garbage in Baranggay Libis takes place from Tuesday morning, the

proponents will then release its garbage on the said day.

Figure 6

The Map of Binangonan, Rizal

 41

CHAPTER 5

TAXATION AND LEGAL ASPECTS

A tax is generally understood to be a levy, another kind of financial

charge, or fee levied by the state or central government on natural persons

or legal entities. Local authorities, such as local governments, provincial

governments, counties, and municipal corporations, also have the authority

to impose taxes. Taxation is governed by a complicated system of rates,

laws, and regulations that vary from one nation to the next.

The majority of the government's income comes from taxes. In the

Philippines, the government's Bureau of Internal Revenue, or BIR, is

primarily in charge of tax collection. The tax code of a nation establishes

who is responsible for paying the tax. The tax rate is applied as a specified

percentage of the money earned.

A nation's financial and economic progress is significantly influenced

by its tax policy. Tax penalties apply to unpaid taxes or payments in part.

Civil or criminal consequences are both possible.

You sent

The business is in the form of Partnership. It is a type of business

where the owner is two or more. Obtaining legal papers is easier and less

troublesome because of the partners and its cooperation, it is easier to

obtain legal documents and also ensures that the company is under the

control of other owners or partners unlike sole proprietorship.

 42

Tax Rates to be Paid

The table represented below shows different tax rates to be paid by

the Business.

Table 23

Municipal Fees

MUNICIPAL FEES AMOUNT

Mayor’s Permit 500.00
Sanitary Permit 100.00
Garbage Fee 100.00
Calling Fee 1,000.00
Fire Safety Inspection 100.00
Sticker 100.00
Health Fee 250.00
Business Plate 300.00
TOTAL AMOUNT 2,450.00

Table 22 shows the necessary fees required to register the business

at the municipality of Binangonan, in the province of Rizal.

Table 24

DTI Registration Fees

DTI REGISTRATION AMOUNT

Basic Regular Fee 500.00

Documentary Stamp 50.00

TOTAL AMOUNT 550.00

 43

Table 23 shows the necessary fees required to register the business

legally at the Department of Trade and Industry.

Table 25

BIR Registration Fees

BIR REGISTRATION AMOUNT

Annual Registration Fee 500.00

Certification Fee 100.00

Documentary Stamp 30.00

TOTAL AMOUNT 630.00

Table 21 shows the necessary fees required to register the said

business at the Bureau of Internal Revenue, a government agency in

which the main duty is to collect the tax.

Legal Aspect Affecting the Business

Business registration with the government must also be done by

the owners to make its transaction legal. Since the business is in the form

of a partnership, the paperwork is simpler and it is facilitated. Government

offices include the DTI or the Department of Trade and Industry, BIR or

Bureau of Internal Revenue for taxation purposes, and the Municipality of

Binangonan for municipal licenses and permits.

 44

Chapter 6

FINANCING, FINANCIAL ESTIMATES AND ANALYSIS

This section specifically includes the initial amount of investment and how

much is to be spent on the operation. The financial report assesses the

performance of the business and evaluates whether it will gain a profit or make

some losses.

The first factor to consider starting a business is the capital Before investing

in an enterprise, an investor will first seek the financial position of the business as

well as the return of investment. To observe the yearly condition of the business,

preparing a financial statement is very important.

Financing

The business is in the form of partnership therefore include two or more

owners. The owners of the business are responsible for financing the business

and cash basis.

 45

Table 26

TOTAL PROJECT COST

Fixed Investment
Machineries and Equipment 12,800.00
Furniture & fixture 8,250.00
Kitchen Tools and Utensils 1,705.00
Leasehold Improvements 50,000.00
TOTAL FIXED INVESTMENT 72,755.00

Initial Working Capital

Direct Materials Purchases ₱2,655.00
Advertising Expense ₱250.00
Cleaning Supplies Expense ₱610.00
Kitchen Supplies Expense ₱555.00
Salaries Expense ₱33,840.00
Compensation Expense ₱5,245.20
Office Supplies Expense ₱60.08
Rent Expense ₱2,500.00
Utilities Expense ₱2,999.00
TOTAL INITIAL WORKING CAPITAL ₱48,714.28
Pre-Operating Expense
Permits and Licences ₱3,630.00
Prepaid Rent ₱2,500.00
TOTAL PRE-OPERATING EXPENSE ₱6,130.00

Total ₱127,599.28
Add: Contingency Fund ₱22,400.72
TOTAL PROJECT COST ₱150,000.00
 46

Financial Estimates

For the proposed project to be feasible, the researchers used financial projection

to support their claim. These include the list of projected income statement,

projected balance sheet, projected cash flow, and other assumptions and

supporting computations.

General Assumptions

The following are the assumptions made by the researcher.

1. The business will be in form of Partnership.

2. The capital invested in the business is 150,000 pesos.

3. The partners' withdrawal rate from the business is 20%.

4. The inflation rate, which is the rate at which the general level of prices for

goods and services is increasing over time, is 8.7%.

5. The yearly increase in salary for employees is 1.5%.

6. The expected rate of increase in sales for the business is 5%.

7. The income tax rate for the business is 30%.

8. Salary determined by the provincial pay rate.

9. The latest government statistics are used to compute employee benefits

and adjust for inflation rate.

10. Cash payments are required for all supply purchases, with an annual

increase of 8.7% based on inflation.

11. No new long-term assets will be purchased over the next five years.

12. There is an expected annual increase of 5% in revenue.

 47
Crispy Eggplant Nuggets
Projected Statement of Comprehensive Income
For the years ended December 31, 2024 – 2028
2024 2025 2026 2027 2028
Sales ₱2,642,640.00 ₱2,774,772.00 ₱2,913,510.60 ₱3,059,186.13 ₱3,212,145.44
Cost of Goods Sold ₱1,344,649.00 ₱1,411,881.45 ₱1,482,475.52 ₱1,556,599.30 ₱1,634,429.26
Gross Profit ₱1,297,991.00 ₱1,362,890.55 ₱1,431,035.08 ₱1,502,586.83 ₱1,577,716.17

Less: Operating Expense

Advertising Expense ₱3,000.00 ₱3,261.00 ₱3,544.71 ₱3,853.10 ₱4,188.32
Cleaning Supplies Expense ₱610.00 ₱663.07 ₱720.76 ₱783.46 ₱851.62
Kitchen Supplies Expense ₱4,185.00 ₱4,549.10 ₱4,944.87 ₱5,375.07 ₱5,817.56
Compensation Expense ₱62,942.40 ₱62,942.40 ₱62,942.40 ₱62,942.40 ₱62,942.40
Office Supplies Expense ₱721.00 ₱783.73 ₱851.91 ₱926.03 ₱1,006.59
Permits and Licenses ₱3,630.00 ₱3,630.00 ₱3,630.00 ₱3,630.00 ₱3,630.00
Rent Expense ₱30,000.00 ₱32,610.00 ₱35,447.07 ₱38,530.97 ₱41,883.16
Salary Expense ₱406,080.00 ₱412,171.20 ₱418,353.77 ₱424,629.07 ₱430,998.51
Utilities Expense ₱35,988.00 ₱39,130.94 ₱42,535.34 ₱46,235.91 ₱50,258.43
Depreciation - Leasehold Improvements ₱9,500.00 ₱9,500.00 ₱9,500.00 ₱9,500.00 ₱9,500.00
Depreciation - Machineries and equipment ₱2,432.00 ₱2,432.00 ₱2,432.00 ₱2,432.00 ₱2,432.00
Depreciation - Furniture & fixture ₱1,567.50 ₱1,567.50 ₱1,567.50 ₱1,567.50 ₱1,567.50
Depreciation - Kitchen tools and utensils 323.95 323.95 323.95 323.95 323.95
Total Operating Expense ₱560,979.85 ₱573,564.89 ₱586,794.27 ₱600,729.46 ₱615,400.05

Net Income (loss) Before Tax ₱737,011.15 ₱789,325.66 ₱844,240.81 ₱901,857.37 ₱962,316.13
Less: Income Tax (30%) (₱221,103.35) (₱236,797.70) (₱253,272.24) (₱270,557.21) (₱288,694.84)
Net Income(loss) After Tax ₱515,907.81 ₱552,527.96 ₱590,968.57 ₱631,300.16 ₱673,621.29
 48

Crispy Eggplant Nuggets

Statement Of Financial Position / Balance Sheet
For the years ended December 31, 2024 – 2028
2024 2025 2026 2027 2028
Current Assets
Cash ₱503,794.69 ₱959,640.52 ₱1,446,238.82 ₱1,965,102.40 ₱2,517,822.88
Office Supplies ₱721.00 ₱783.73 ₱851.91 ₱926.03 ₱1,006.59
Kitchen Supplies ₱4,185.00 ₱4,549.10 ₱4,944.87 ₱5,375.07 ₱5,817.56
Cleaning Supplies ₱610.00 ₱663.07 ₱720.76 ₱783.46 ₱851.62
Prepaid Rent ₱2,500.00 ₱2,500.00 ₱2,500.00 ₱2,500.00 ₱2,500.00
Non-Current Assets
Leasehold Improvement ₱50,000.00 ₱40,500.00 ₱31,000.00 ₱21,500.00 ₱12,000.00
Machineries and Equipments ₱12,800.00 ₱10,368.00 ₱7,936.00 ₱5,504.00 ₱3,072.00
Furnitures and Fixtures ₱8,250.00 ₱6,682.50 ₱5,115.00 ₱3,547.50 ₱1,980.00
Kitchen Tools and Utensils ₱1,705.00 ₱1,381.05 ₱1,057.10 ₱733.15 ₱409.20
Other Assets ₱199,263.90 ₱214,478.36 ₱230,431.26 ₱247,149.20 ₱264,695.61
TOTAL ASSETS ₱783,829.59 ₱1,241,546.32 ₱1,730,795.71 ₱2,253,120.81 ₱2,810,155.47
LIABILITIES AND PARTNER'S EQUITY
Liabilities
Income Tax Payable ₱221,103.35 ₱236,797.70 ₱253,272.24 ₱270,557.21 ₱288,694.84
Total Liabilities
Partner's Equity
Cerda's Capital ₱50,000.00 ₱187,575.41 ₱334,916.21 ₱492,507.82 ₱660,854.53
Salcedo's Capital ₱50,000.00 ₱187,575.41 ₱334,916.21 ₱492,507.82 ₱660,854.53
Toniza's Capital ₱50,000.00 ₱187,575.41 ₱334,916.21 ₱492,507.82 ₱660,854.53
Add: Retained Earnings ₱515,907.81 ₱552,527.96 ₱590,968.57 ₱631,300.16 ₱673,621.29
Less: Withdrawals(20%) (₱103,181.56) (₱110,505.59) (₱118,193.71) (₱126,260.03) (₱134,724.26)
Total Partner's Equity ₱562,726.24 ₱1,004,748.62 ₱1,477,523.47 ₱1,982,563.60 ₱2,521,460.63
TOTAL LIABILITIES AND PARTNER'S EQUITY ₱783,829.59 ₱1,241,546.32 ₱1,730,795.71 ₱2,253,120.81 ₱2,810,155.47
 49
Crispy Eggplant Nuggets
Statement Of Cash Flow
For the years ended December 31, 2024 – 2028
2024 2025 2026 2027 2028
Cash Flow From Operating Activities
Net Income After Tax ₱515,907.81 ₱552,527.96 ₱590,968.57 ₱631,300.16 ₱673,621.29
Depreciation Expense ₱13,823.45 ₱13,823.45 ₱13,823.45 ₱13,823.45 ₱13,823.45
Net Cash provided (used) by Operating activities ₱529,731.26 ₱566,351.41 ₱604,792.02 ₱645,123.61 ₱687,444.74

Cash Flow from Investing Activities

Cash Paid for Leasehold Improvements (₱50,000.00)
Cash Paid For Machineries and Equipment (₱12,800.00)
Cash Paid for Kitchen tools and utensils (₱1,705.00)
Cash Paid for Furniture and Fixtures (₱8,250.00)
Net Cash provided (used) by Investing Activities (₱72,755.00)

Cash Flow from Financing Activities

Cash Received from Partners Capital Contribution ₱150,000.00
Cash Withdrawal of Partners for Personal Use (20%) (₱103,181.56) (₱110,505.59) (₱118,193.71) (₱126,260.03) (₱134,724.26)
Net Cash provided (used) by Financing Activities (₱46,818.44) (₱110,505.59) ₱118,193.71 ₱126,260.03 (₱134,724.26)

Increase (Decrease) in Cash ₱503,794.69 ₱455,845.82 ₱486,598.30 ₱518,863.58 ₱552,720.48

Add: Beginning Balance - ₱503,794.69 ₱959,640.52 ₱1,446,238.82 ₱1,965,102.40
Ending Balance ₱503,794.69 ₱959,640.52 ₱1,446,238.82 ₱1,965,102.40 ₱2,517,822.88
 50

Crispy Eggplant Nuggets

Financial Ratio Analysis
For the years ended December 31, 2024 - 2028
2024 2025 2026 2027 2028
GROSS PROFIT RATIO
Gross Profit ₱1,297,991.00 ₱1,362,890.55 ₱1,431,035.08 ₱1,502,586.83 ₱1,577,716.17
Net Sales ₱2,642,640.00 ₱2,774,772.00 ₱2,913,510.60 ₱3,059,186.13 ₱3,212,145.44
GP Ratio 0.5 0.5 0.5 0.5 0.5

RETURN ON SALES
Net Income ₱515,907.81 ₱552,527.96 ₱590,968.57 ₱631,300.16 ₱673,621.29
Net Sales ₱2,642,640.00 ₱2,774,772.00 ₱2,913,510.60 ₱3,059,186.13 ₱3,212,145.44
Return on Sales 0.20 0.20 0.20 0.21 0.21

RETURN ON ASSETS
Net Income ₱515,907.81 ₱552,527.96 ₱590,968.57 ₱631,300.16 ₱673,621.29
Average Total Assets ₱783,829.59 ₱1,241,546.32 ₱1,730,795.71 ₱2,253,120.81 ₱2,810,155.47
Return on Assets 0.66 0.45 0.34 0.28 0.24

ASSET TURNOVER
Net Sales ₱2,642,640.00 ₱2,774,772.00 ₱2,913,510.60 ₱3,059,186.13 ₱3,212,145.44
Average Total Assets ₱783,829.59 ₱1,241,546.32 ₱1,730,795.71 ₱2,253,120.81 ₱2,810,155.47
Asset Turnover 3.37 2.23 1.68 1.36 1.14

PAYBACK PERIOD RETURN ON INVESTMENT

Initial Investment ₱150,000.00 Net Profit ₱515,907.81
Annual Cashflow ₱503,794.69 Investment Cost ₱150,000.00
Payback Period 2months ROI 343%
 51

Schedule 1 : Sales Forecast 5% yearly Increase

Sales Daily Monthly 2024 2025 2026 2027 2028

No. of 121 3,146 37,752 39,640 41,622 43,703 45,888

units
sold
Selling ₱70.00 ₱70.00 ₱70.00 ₱70.00 ₱70.00 ₱70.00 ₱70.00
Price
Total ₱8,470.00 ₱220,220.00 ₱2,642,640.00 ₱2,774,772.00 ₱2,913,510.60 ₱3,059,186.13 ₱3,212,145.44
Sales

Schedule 2: Cost of Goods Sold 5% yearly Increase

COGS Daily Monthly 2024 2025 2026 2027 2028
No. of 121 3,146 37,752 39,640 41,622 43,703 45,888
units
sold
Unit ₱35.62 ₱35.62 ₱35.62 ₱35.62 ₱35.62 ₱35.62 ₱35.62
Cost
without
Mark
up
Total ₱4,309.77 ₱112,054.08 ₱1,344,649.00 ₱1,411,881.45 ₱1,482,475.52 ₱1,556,599.30 ₱1,634,429.26
Cost
of
Goods
Sold

Schedule 3: 2024 2025 2026 2027 2028

Utilities
Expense
Water ₱8,400.00 ₱9,130.80 ₱9,925.18 ₱10,788.67 ₱11,727.28
Electricity ₱15,600.00 ₱16,957.20 ₱18,432.48 ₱20,036.10 ₱21,779.24
Internet ₱11,988.00 ₱13,042.94 ₱14,177.68 ₱15,411.14 ₱16,751.91
Total ₱35,988.00 ₱39,130.94 ₱42,535.34 ₱46,235.91 ₱50,258.43

Schedule 4: 2024 2025 2026 2027 2028

Rent Expense
Rent ₱30,000.00 ₱32,610.00 ₱35,447.07 ₱38,530.97 ₱41,883.16
Total ₱30,000.00 ₱32,610.00 ₱35,447.07 ₱38,530.97 ₱41,883.16
 52

Schedule 5: 2024 2025 2026 2027 2028

Advertising Expense
Social Media Boost ₱3,000.00 ₱3,261.00 ₱3,544.71 ₱3,853.10 ₱4,188.32
Total ₱3,000.00 ₱3,261.00 ₱3,544.71 ₱3,853.10 ₱4,188.32

Schedule 6: Cleaning Supplies 2024 2025 2026 2027 2028

Expense
Broom and Dust Pans ₱260.00 ₱282.62 ₱307.21 ₱333.94 ₱362.99
Trash Bins ₱150.00 ₱163.05 ₱177.24 ₱192.65 ₱209.42
Mops ₱200.00 ₱217.40 ₱236.31 ₱256.87 ₱279.22
Total ₱610.00 ₱663.07 ₱720.76 ₱783.46 ₱851.62

Schedule 7: Office Supplies 2024 2025 2026 2027 2028

Expense
Calculator ₱70.00 ₱76.09 ₱82.71 ₱89.91 ₱97.73
Scissor ₱36.00 ₱39.13 ₱42.54 ₱46.24 ₱50.26
Stapler ₱30.00 ₱32.61 ₱35.45 ₱38.53 ₱41.88
Staple wire ₱60.00 ₱65.22 ₱70.89 ₱77.06 ₱83.77
Scotch tape ₱100.00 ₱108.70 ₱118.16 ₱128.44 ₱139.61
Ball pens ₱50.00 ₱54.35 ₱59.08 ₱64.22 ₱69.81
Bond Paper ₱200.00 ₱217.40 ₱236.31 ₱256.87 ₱279.22
Sales Receipts ₱175.00 ₱190.23 ₱206.77 ₱224.76 ₱244.32
Total ₱721.00 ₱783.73 ₱851.91 ₱926.03 ₱1,006.59

Schedule 8: kitchen 2024 2025 2026 2027 2028

Supplies Expense
Hair Nets ₱2,160.00 ₱2,347.92 ₱2,552.19 ₱2,774.23 ₱3,015.59
Gloves ₱1,800.00 ₱1,956.60 ₱2,126.82 ₱2,311.86 ₱2,512.99
Aprons ₱225.00 ₱244.58 ₱265.85 ₱288.98 ₱288.98
Total ₱4,185.00 ₱4,549.10 ₱4,944.87 ₱5,375.07 ₱5,817.56
 53

Schedule Daily Monthly 2024 2025 2026 2027 2028

9: Salary
Expense
Sales ₱470.00 ₱11,280.00 ₱135,360.00 ₱137,390.40 ₱139,451.26 ₱141,543.02 ₱143,666.17
Manager
Production ₱470.00 ₱11,280.00 ₱135,360.00 ₱137,390.40 ₱139,451.26 ₱141,543.02 ₱143,666.17
labor 1
Production ₱470.00 ₱11,280.00 ₱135,360.00 ₱137,390.40 ₱139,451.26 ₱141,543.02 ₱143,666.17
labor 2
Total ₱1,410.00 ₱33,840.00 ₱406,080.00 ₱412,171.20 ₱418,353.77 ₱424,629.07 ₱430,998.51

Schedule 10: Daily Monthly 2024 2025 2026 2027 2028

Compensation
Expense
SSS (9.5%) ₱133.95 ₱3,214.80 ₱38,577.60 ₱38,577.60 ₱38,577.60 ₱38,577.60 ₱38,577.60
PAGIBIG (2%) ₱28.20 ₱676.80 ₱8,121.60 ₱8,121.60 ₱8,121.60 ₱8,121.60 ₱8,121.60
Philhealth (4%) ₱56.40 ₱1,353.60 ₱16,243.20 ₱16,243.20 ₱16,243.20 ₱16,243.20 ₱16,243.20
Total ₱218.55 ₱5,245.20 ₱62,942.40 ₱62,942.40 ₱62,942.40 ₱62,942.40 ₱62,942.40

Schedule 11: Permits 2024 2025 2026 2027 2028

and Licenses Expense
DTI ₱550.00 ₱550.00 ₱550.00 ₱550.00 ₱550.00
B.I.R ₱630.00 ₱630.00 ₱630.00 ₱630.00 ₱630.00
Mayor’s Permit ₱500.00 ₱500.00 ₱500.00 ₱500.00 ₱500.00
Sanitary Permit ₱100.00 ₱100.00 ₱100.00 ₱100.00 ₱100.00
Garbage Fee ₱100.00 ₱100.00 ₱100.00 ₱100.00 ₱100.00
Calling Fee ₱1,000.00 ₱1,000.00 ₱1,000.00 ₱1,000.00 ₱1,000.00
Fire Safety Inspection ₱100.00 ₱100.00 ₱100.00 ₱100.00 ₱100.00
Sticker ₱100.00 ₱100.00 ₱100.00 ₱100.00 ₱100.00
Health Fee ₱250.00 ₱250.00 ₱250.00 ₱250.00 ₱250.00
Business Plate ₱300.00 ₱300.00 ₱300.00 ₱300.00 ₱300.00
Permits and Licenses ₱3,630.00 ₱3,630.00 ₱3,630.00 ₱3,630.00 ₱3,630.00
Expense
 54
Schedule 12: Machineries and Equipment
Items Total Estimated Salvage Depreciable Depreciation
Costs useful life in Value Amount
years
Gas Tank ₱2,000.00 5 ₱100.00 ₱1,900.00 ₱380.00
Gas Stove ₱2,800.00 5 ₱140.00 ₱2,660.00 ₱532.00
(double
burner)
Freezer ₱8,000.00 5 ₱400.00 ₱7,600.00 ₱1,520.00
TOTAL ₱12,800.00 Depreciation - Machineries and ₱2,432.00
Equipment

Schedule 13: Leasehold Improvements

Items Total Estimated Salvage Depreciable Depreciation
Costs useful life in Value Amount
years
Renovation ₱50,000.00 5 2500 ₱47,500.00 ₱9,500.00
Cost
TOTAL ₱50,000.00 Depreciation - Leasehold Improvement ₱9,500.00

Schedule 14: Kitchen tools and utensils

Items Total Estimated Salvage Depreciable Depreciation
Costs useful life in Value Amount
years
Bowls ₱360.00 5 ₱18.00 ₱342.00 ₱68.40
Chopping ₱240.00 5 ₱12.00 ₱228.00 ₱45.60
board
Knife ₱540.00 5 ₱27.00 ₱513.00 ₱102.60
Strainer ₱80.00 5 ₱4.00 ₱76.00 ₱15.20
Tong ₱60.00 5 ₱3.00 ₱57.00 ₱11.40
Casserole ₱350.00 5 ₱17.50 ₱332.50 ₱66.50
Spoon & ₱75.00 5 ₱3.75 ₱71.25 ₱14.25
Fork
TOTAL ₱1,705.00 Depreciation - Kitchen Tools & Utensils 323.95
 55

Schedule 15: Furnitures and Fixtures

Items Total Estimated Salvage Depreciable Depreciation
Costs useful life in Value Amount
years
Reception ₱2,800.00 5 ₱140.00 ₱2,660.00 ₱532.00
table and
chair
Production ₱1,500.00 5 ₱75.00 ₱1,425.00 ₱285.00
Table
Wall Fan ₱2,200.00 5 ₱110.00 ₱2,090.00 ₱418.00
Ventilators ₱1,000.00 5 ₱50.00 ₱950.00 ₱190.00
Chairs ₱750.00 5 ₱37.50 ₱712.50 ₱142.50
(plastic)
TOTAL ₱8,250.00 Depreciation - Furnitures and Fixtures ₱1,567.50
 56

Chapter 7

SOCIAL DESIRABILITY

Making a profit is the primary focus of businesses in the current day. If there

is no profit, the company is dead and need to be shut down. This is the reason that

firms of all sizes are attempting to figure out how to maximize and recoup their

profits. The general public is the company's client, and client happiness is highly

valued.

In order to satisfy clients, the company offers them high-quality, nutrient-

dense food at a low cost. Gaining more clients and increasing earnings are both

possible with strong business success.

By providing society with a high-quality good at the lowest possible cost, the

suggested study aids in the development and health of the neighborhood as well

as the economy as a whole. In addition to the goods, taxes and intangible

advantages must be taken into account.

Contribution to the Philippine Government Revenue

To be able to carry out its duties, the government must be able to collect

taxes from those who are subject to them. Before the question is asked, the

business will make a payment in the BIR-style payment format. Application for

Registration, Legal Permits, and Licenses, as well as Documentation Stamp Tax

and Tax Declaration Return.

As a result, the national economy expands, generating more money and tax

revenues for the government. As a result, the state gains significantly from this
 57

because it boosts tax generation and secures the nation's economic recovery.

Every lawfully running business in the Philippines is required to pay taxes,

regardless of how little or large the business is, and this generates additional

revenue for the government.

Contribution to the Growth of Related Industry

It is possible for the community to separate biodegradable and non-

biodegradable materials when it has a strong waste management program. The

company must have a reliable method for recycling the waste materials that are

generated.

Contribution to the Philippines Household

Due to its beneficial effects on their bodies, the crispy eggplant nuggets

were purchased by the Filipino household. Proponents of the product encouraged

consumers to switch to and purchase the more affordable, healthier product.

Contribution to the Philippines Workforce

By hiring the necessary staff for the company's daily operations, the

proponents' proposed business would help to lower the nation's unemployment

rate. As the business improves and expands, however, more staff will be required.

As a result, the number of unemployed people decreases the more employees the

company hires.
 58

Chapter 8

RECOMMENDATIONS AND CONCLUSION

In this chapter, the researchers have taken into account potential issues

that the company might run into, as well as the corresponding solutions and

conclusions made by the proponents.

Projected Problems

The major problem of this study is how the proponents establish the

feasibility and viability of producing a product that is different from the existing

product in the market at an affordable price with the same quality, given that the

existing product is produced by large companies in the country.

In line with this, other problems arise, such us:

1. There is a lot of competition from brands and products that are comparable to

yours.

2. The price of raw commodities, particularly vegetables, is rising out of control.

3. Lack of supplies caused by supplier's failure to supply what was required.

4. People's interests are always changing.

Recommendations

1. The proponents should create a strong marketing plan and technique.

2. The proponents should keep track of changes in the business's overall state

and make sure they have a backup plan in case raw supplies become

insufficient.
 59

3. The proponents should create and enhance the organizational to ensure the

company' success and remain on the market. And upgrading the eggplant

nuggets in many sorts of variations for keeping the customer and attract even

competitor’s consumers.

4. The proponents should be flexible and tech-savvy, so that sales of the product

can quickly grow both locally and globally.

Conclusion

Taking everything into account, the proponents concluded that production

of crispy eggplant nuggets is viable and feasible based on the conducted research

Based on the ratio analysis, it was all possible to get a return in less than a year.

Therefore, the research has great potential to enter the market.

 60

BIBLIOGRAPHY

Websites

https://www.healthline.com/nutrition/eggplant-benefits#TOC_TITLE_HDR_9

https://sentientmedia.org/how-are-chicken-nuggets/

https://southflcardio.com/the-connection-between-high-sodium-intake-and-stroke-risk/

https://www.stylecraze.com/articles/amazing-benefits-of-eggplantbrinjal/

https://www.coursehero.com/file/64743124/EGGPLANT-NUGGETS1pdf/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8619213/

https://www.easyveganmealplan.com/recipe/wprm-crispy-eggplant-nuggets/

https://www.webmd.com/diet/health-benefits-vegetables

https://www.hsph.harvard.edu/nutritionsource/what-should-you-eat/vegetables-and-

fruits/

https://www.medicalnewstoday.com/articles/279359#:~:text=Eggplants%20are%20rich

%20in%20fiber,compounds%20that%20act%20as%20antioxidants.

https://www.webmd.com/food-recipes/eggplant-health-

benefits#:~:text=While%20eggplant%20isn't%20the,t%20soak%20it%20in%20oil.

https://en.m.wikipedia.org/wiki/Chicken_nugget

https://www.sciencedirect.com/science/article/abs/pii/S0309174010001531

https://www.scielo.br/j/bjft/a/k4tJfNKMNfk5djVKdQcQCwg/?format=pdf&lang=en
 61

APPENDICES
 62

APPENDIX A

Business Logo
 63

APPENDIX B

Interpretation of Logo

The logo of Crispy Eggplant Nuggets in Binangonan, Rizal features three

names that make up the brand, which are the names of the three owners. The golden

brown color of the nuggets represents the high quality of the product and how delicious

and healthy it can be. Additionally, the sauce complements the flavor of the nuggets,

making them even more delicious to eat.

 64

APPENDIX C

Letter of Designation as Feasibility Adviser

Republic of the Philippines

UNIVERSITY OF RIZAL SYSTEM
Binangonan, Rizal

Prof. Clarita D. Recto

Instructor
University of Rizal System

Dear Ma’am,
In consideration of your held experience and specialization, you are proposed to be the
Adviser of Chrizly Maea P. Cerda, Kristine C. Salcedo and Kryss Angel A. Toniza
whose feasibility study entitled “Production of Crispy Eggplant Nuggets in Libis,
Binangonan Rizal”, has been approved by the research committee in partial fulfilment of
the requirements for the degree Bachelor of Science in Business Administration major in
Financial Management.
If you are agreeable to this, please sign the conformed below.

Very Truly yours,

___________________
JEFFREY M. AZOR
Research Instructor

Conforme,

Signature

Date:
 65

APPENDIX D

Letter of Designation as Chairman of the Panel

Republic of the Philippines

UNIVERSITY OF RIZAL SYSTEM
Binangonan, Rizal

Prof. Eusebio S. Oliva Jr.

Instructor
University of Rizal System

Dear Sir,

In consideration of your held experience and specialization, you are proposed to be the
Chairman of the Panel of Chrizly Maea P. Cerda, Kristine C. Salcedo and Kryss Angel
A. Toniza whose feasibility study entitled “Production of Crispy Eggplant Nuggets in
Libis, Binangonan Rizal”, has been approved by the research committee in partial
fulfilment of the requirements for the degree Bachelor of Science in Business
Administration major in Financial Management.
If you are agreeable to this, please sign the conformed below.

Very Truly yours,

___________________
JEFFREY M. AZOR
Research Instructor

Conforme,

Signature

Date:
 66

APPENDIX E

Letter of Designation as Accounting Mentor

Republic of the Philippines

UNIVERSITY OF RIZAL SYSTEM
Binangonan, Rizal

Prof. Sam Cedrick H. Calites

Instructor
University of Rizal System

Dear Sir,

In consideration of your held experience and specialization, you are proposed to be the
Accounting Mentor of Chrizly Maea P. Cerda, Kristine C. Salcedo and Kryss Angel A.
Toniza whose feasibility study entitled “Production of Crispy Eggplant Nuggets in
Libis, Binangonan Rizal”, has been approved by the research committee in partial
fulfilment of the requirements for the degree Bachelor of Science in Business
Administration major in Financial Management.
If you are agreeable to this, please sign the conformed below.

Very Truly yours,

___________________
JEFFREY M. AZOR
Research Instructor

Conforme,

Signature

Date:
 67

APPENDIX F

Letter of Designation as English Critic

Republic of the Philippines

UNIVERSITY OF RIZAL SYSTEM
Binangonan, Rizal

Prof. Jose Vocal

Instructor
University of Rizal System

Dear Sir,

In consideration of your held experience and specialization, you are proposed to be the
English Critic of Chrizly Maea P. Cerda, Kristine C. Salcedo and Kryss Angel A.
Toniza whose feasibility study entitled “Production of Crispy Eggplant Nuggets in
Libis, Binangonan Rizal”, has been approved by the research committee in partial
fulfilment of the requirements for the degree Bachelor of Science in Business
Administration major in Financial Management.
If you are agreeable to this, please sign the conformed below.

Very Truly yours,

___________________
JEFFREY M. AZOR
Research Instructor

Conforme,

Signature

Date:
 68

APPENDIX G

SURVEY QUESTIONAIRE

“Production of Crispy Eggplant Nuggets in Libis, Binangonan Rizal”

Email: Age: Gender:

Name (optional): Location:

1. Are you familiar with Crispy Eggplant Nuggets?

() Yes () No

2. Have you try the crispy eggplant nuggets before?

() Yes () No

3. Which sauce do you prefer?

() Garlic Mayo () Mafran Dressing () Spicy Ketchup

4. Are you eating vegetables every day?

() Yes () No

5. How often you eat vegetables?

() Always () Sometimes () Usually () Often () Never

6. Which do you prefer?

() Chicken Nuggets () Eggplant Nuggets

7. Are you willing to buy Crispy Eggplant Nuggets?

() Yes () No

8. How much do you prefer per tub of Crispy Eggplant nuggets?

() 70php () 75php () 80php () 85php

9. Can you recommend crispy eggplant nuggets to people you know when the operation
starts?
() Yes () No
 69

APPENDIX H

Business Permit Application Form (1st Page)

 70

Business Permit Application Form (2nd Page)

 71

APPENDIX I

Sanitary Permit Form

 72

APPENDIX J

BIR Permit
 73

APPENDIX K

SSS Contribution Table