Estimated cost of the System Benefits

System development and 210000 Average costs incurred by 514, 010

installation the Current System

System Maintenance 10, 000 Projected costs incurred by 199, 500

the Proposed System
Other Utilities 43, 293. 40
Total cost 253, 293.40 Benefit 314, 510

For a more detailed computation of the costs of the investment:

System Development and Installation
To build and develop a suitable and effective CRM system, the company will hire
a website developer from Linkage Web Development, a company based in Baguio City.
The company requires the developers to be paid with an amount of Php 250.00 per
hours worked.
Linkage Web Development is a pioneering company in the city, thus, having a
unique set of operations, agreed for the customers to pay Php 62,500 pesos monthly for
2 months. According to the agreement between the system developer and the
company, the rate of the system will depend on the number of hours the web developer
worked on building the system.
This process is dependent on the number of workers hired to install the system
and examine its effect and suitability on the company’s operations.
Web Developer Php 250 per hour The website is developed for 8
hours in 62.5 days

(8 hrs x 62.5 days) Php 250 =

Php 125,000
Computer units (3) Php 25, 000 Php 25, 000 x 3 =
Php 75, 000
Total Php 200,000
Reference: https://linkage.ph/service/ecommerce-website/

System Maintenance
This is necessary to keep the new system updated with features that will help
improve the performance of the company’s operations. According to Axon Philippines,
the average computer system maintenance is around Php 3,300 annually. Therefore,
the company requires an allotted an amount of Php 10,000 for the yearly maintenance
of the 3 computer units.
Unit maintenance Php 10, 000
Electricity / Utilities
To compute for the total amount paid under utilities, especially that electricity has
been used throughout the system development, BENECO’s standard Php 9.63 per
Kilowatt Hour for their commercial customers is used.
Electricity /Utilities Php 9.63 x 8 hrs = Php 77.04

Php 77.04 x 7 days = Php 539.28

Php 539.28x 9 weeks = Php 43, 293. 40

To compute the benefit, one must find the difference between the average costs
incurred from when the current system was in use and projected costs from when the
new online system was already installed.
To begin with, the table below shows the average costs incurred by the current
system in its operations. This is when the proposed system has not yet been installed:

Current System Breakdown

Sales Invoice Php 3, 600
Advertising card Php 72, 000
Advertisement posters Php 42, 000
Office supplies Php 102, 000
Personal computer unit Php 25, 000
Printer (Epson L3110) Php 10, 450
Printer ink set Php 12, 960
Unspecified expenses Php 246, 000
Total Php 514, 010

Sales Invoice
The sales invoice used by the company to describe the goods and services
offered to a customer. This serves as proof of sale and includes a description of the
services provided or purchased. Currently, the company uses at least 10 pads of
invoice in a month, each one costing around Php 30 per pad.

(Php 30 x 10) x 12 = Php 3,600

Reference:
https://shopee.ph/Sales-Invoice-Small-Blank-Receipt-Carbonized-Receipt-
i.98969254.2132010302
Advertising card
The advertising cards or business cards are used to present the
company’s contact information to other people and potential customers
or clients. The company is paying Php 15 per laminated card, with around 400
pieces a month from RUSH Wiz printing shop.
(Php 15 x 400) x 12 = Php 72,000
Reference:
https://www.alfoxprinting.com/business-card-one-side/

Advertisement posters
The company uses advertisement posters to promote brand awareness or call
attention to a company event. The bulk printing is again handled by RUSH Wiz printing
shop, with each print costing about Php 70. On average, 50 posters are being printed
each month.

(Php 70 x 50) x 12 = Php 42,000

Reference:
http://ec2-52-221-75-104.ap-southeast-1.compute.amazonaws.com/products/posters/

Office Supplies
Despite being an automotive service company, KBL’s the current system makes
use of the paper-based filing system; thus, a great number of office supplies are used
yearly.
Bond Paper (per ream)

A4, 100 gsm

(Php 345 x 4) x 12 = Php 16,560

A4, 70 gsm
(Php 200 x 4) x 12 = Php 9,600

Ballpen (per box)

(Php 130 x 4) x 12 = Php 6,240

Logbook

(Php 100 x 3) x 12 = Php 3,600

 Marker (per box)

Php 510 x 12 = Php 6,120

Unspecified items

Php 59,880
Total: Php 102,000
Reference:

https://shopee.ph/500-SHEETS-Paper-One-Bond-Paper-70gsm(sub20)-80gsm-
(sub24)-(SHORT-A4-LONG-A3)-i.265781629.6139672544?xptdk=7183c557-85d4-
4845-b066-cec8e865bec1

https://shopee.ph/-Found-It-Paper-One-Bond-Paper-100gsm-Sub-28-Digital-Paper-
PaperOne-Copy-Bondpaper-100-gsm-i.25902976.4607691699?xptdk=36517420-
73c2-4edb-b47a-58fb31e1fc04

https://shopee.ph/HBW-Ballpen-9801-50pcs-box-i.18653549.1587561772?
xptdk=98ce7dc8-3e0e-4ed8-a202-e1b88687605e

https://shopee.ph/Valiant-Record-book-(standard-size)-i.398936041.9223447513?
sp_atk=316a5d93-1093-4ef4-a43f-f35f0550823a&xptdk=316a5d93-1093-4ef4-a43f-
f35f0550823a

https://www.shopback.ph/product/offer/Pentel-Pen-%5BPer-Box%5D/
6081e16742328bd1c0b4469cf2d242b38e866268

Personal Computer
This is used for basic form-making, encoding, and printing purposes. The PC
build is bought from Techshack Computer Store with a price of approximately Php
25,000.
Reference:
https://www.racaaph.com/ryzen-pc-build-full-setup-25k/

Printer
The Epson L3110 is used along with the computer set. The said printer is utilized
for producing hard copy of forms and other papers needed in the company’s operations.
It is sold by Laser Marketing for Php 10,450.
Reference:
https://iprice.ph/compare/epson-l3110-multi-function-ink-tank-printer/

Printer Ink Set

 The Epson ink set is used by the company as an ink for its printer. The set is
supplied by Laser Marketing and cost Php 540 per set. Two sets are being used
monthly by the company for mass printing and for document hard copies.
(Php 540 x 2) x 12 = Php 12,960
Reference:
https://iprice.ph/epson/computing/accessories/ink-cartridges/

To compare the projected costs to be incurred when using the proposed system:
Projected costs
Internet 20, 000
Office supplies 50, 000
Other utility expenses 129, 500
Total 199, 500

Internet
The new CRM system requires for an internet connection to properly be effective.
With this, an internet connection basic monthly plan with Converge as the Internet
Service Provider (ISP) will cost around Php 1,500. The internet speed meets the
minimum requirement of 25 Mbps to run a website and respond to customers
accordingly.
Connection Fee – Php 2,000

Monthly bill – Php 1,500

Total: Php 20,000

Office Supplies
Because of the presence of the new online information and contact system, office
supplies usage would have significantly decreased, thus cutting costs incurred by the
company.
Bond Paper (per ream)

A4, 100 gsm

(Php 345 x 2) x 12 = Php 8,280

Ballpen (per box)

(Php 130 x 2) x 12 = Php 3,120

Logbook
 (Php 100 x 2) x 12 = Php 2,400

Marker (per box)

Php 510 x 12 = Php 6,120

Unspecified items

Php 30,160
Total: Php 50,000

Utilities
Other utilities that being paid for are not specified by the company. However,
they provided an amount of Php 129,500 in total. This amount will still be taken into
account with the proposed project system.

To compute for the benefits or saved costs:

Php 514,010 (Average costs incurred by the current system)

– Php 199,500 (Projected costs incurred by the proposed system installed)

Total Benefit / Profit: Php 314,510