Financial Projections

C'KERNEL Coffee Manufacturing

Production Cost for Maispresso Tea Bag
For the month of November
Direct materials
8kls. Sweet corn 90/kilo P 720.00
5kls. Stevia 125/kilo 625.00
1 pack Cinnamon 158/kilo 158.00
Total direct materials P 1 503.00
Direct labor
2 workers 250/production P 500.00
Total direct labor P 500.00
Manufacturing overhead cost
Indirect materials
500 pcs. Tea bags 36/100 pcs. P 180.00
50 pcs. Tea boxes 25/piece 1250.00
Utilities
Electricity 200/production 200
Total manufacturing overhead
P 1 630.00
cost
Operating Expenses
Administrative expense P 500.00
Selling expense 100.00
Total expenses P 600.00
TOTAL PRODUCTION COST P 4 233.00

C'KERNEL Coffee Manufacturing

Production Cost for Maispresso Granules
For the month of November
Direct materials
8kls. Sweet corn 90/kilo P 720.00
5kls. Stevia 125/kilo 625.00
1 pack Cinnamon 158/kilo 158.00
Total direct materials P 1 503.00
Direct labor
2 workers 250/production P 500.00
Total direct labor P 500.00
Manufacturing overhead cost
Indirect materials
 50 pcs. jar 16 each P 800.00
Utilities
Electricity 200/production 200
Total manufacturing overhead
P 1 000.00
cost
Operating Expenses
Administrative expense P 500.00
Selling expense 100.00
Total expenses P 600.00
TOTAL PRODUCTION COST P 3 603.00

ESTIMATED TARGET SALES

SP/Unit C/Unit Qty.

Maispresso Tea Bag 150 84.66 50
Maispresso Granules 200 72.06 50

Maispresso Tea Bag 7 500.00

Maispresso Granules 10 000.00

To get the estimated target sales, we multiply the selling price per unit and the quantity
produced.

Solution:

Tea Bag, 150 x 50 = 7 500

Granules, 200 x 50 = 10 000

REVENUE

Maispresso Tea Bag

Net Sales P 7 500.00

COGS 3 633.00
Gross Profit P 3 867.00
Administrative Expense 500.00
Selling Expense 100.00
Net Income P 3 267.00
Maispresso Granules

Net Sales P 10 000.00

COGS 3 003.00
Gross Profit P 6 997.00
Administrative Expense 500.00
Selling Expense 100.00
Net Income P 6 397.00

RETURN ON INVESTMENT
ROI = (Net Profit / Cost of Investment) x 100

Maispresso Tea Bag

(P 3 267 / P 4 233) x 100
= 77.2 %
Maispresso Granules
(P 6 397 / P 3 603) x 100
= 177.5 %