1

CHAPTER I
INTRODUCTION

Background of the Study

Children nowadays prefer to eat unhealthy snacks such as chips, chocolates,

instant noodles, candies, and a whole lot more. As children are growing and developing

rapidly, the snacks they eat must be healthy. It is also necessary to note that eating

between meals is important to a child’s growth and nutrition. According to Janice

Hermann, Oklahoma State University nutrition specialist, snacking is a bridge between

meals and children need healthy options to fill the gap since they burn a lot of energy

(Snacks play an important role in children’s healthy diet, 2021). Furthermore, eating

meals and snacks throughout the day helps children get all of the nutrients they need

(Healthy Snacks Grow Healthy Kids, 2008).

Research shows that squash and malunggay have a very rich nutritional profile

that consists of various organic compounds, nutrients, vitamins, and minerals, which are

responsible for providing impressive health benefits. Notably, Cleveland Clinic has

identified health benefits of eating squash that range from prevention of chronic diseases,

maintenance of bone and skin health, support of heart function, and eye protection

(Everything you should know about the health benefits of squash, 2023).

Squash, locally known as kalabasa, is botanically classified as a fruit and

abundantly grows in the Philippines throughout the year. The Department of Agriculture,

Bureau of Plant Industry has considered the high rate of acceptability of squash to

consumers because of its nutritional value, especially Vitamin A.

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Meanwhile, malunggay otherwise known as moringa oleifera, has been identified

as a plant with numerous health benefits and contains calcium, protein, iron, and essential

amino acids, which help the body heal and build muscle. It is also packed with

antioxidants, substances that can protect cells from damage and may boost your immune

system. There's some evidence that some of these antioxidants can also lower blood

pressure and reduce fat in the blood and body (Amazing health benefits of malunggay

leaves, 2022).

To provide children with a healthier snack alternative, the combination of squash

and malunggay in a snack is a great elective for kids to enjoy. Thus, this study aims to

determine the possibility of developing Squash with Malunggay Leaves Cupcakes as a

healthy alternative snack for elementary students of Jamindan as well as the public.

If feasibility is demonstrated, Squash with Malunggay Leaves Cupcake has the

potential to help achieve the goal of encouraging children to eat healthier snacks and as

an effect, improve the overall health of the young. At the same time, this product

innovation has the potential to draw positive attention from health advocates, food

technologists, and nutritionists to develop healthier snacks for children.

Nature of the firm

The proposed project is entitled “Squash with Malunggay Leaves Cupcake” under

the business registration name KCH Squash with Malunggay Leaves Cupcake. KCH is

derived from the first letter of the names of the proponents. It is a general partnership

form of business and shall be composed of three partners namely, Kiah V. Valaquio,

Canie H. Villasis, and Henie Mae D. Silvestre.

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The product is Squash with Malunggay Leaves Cupcake in 110 grams weight,

light yellow in color, and somewhat teacup in size. Its main ingredients are squash,

malunggay leaves, cake flour, butter, fresh milk, sugar, and eggs. Since it is a nutrient-

dense snack, it is perfect to serve to kids and can be eaten at any time of the day.

An initial capital of Php186,968.50 is allotted for the operation and management

of the business. The said value comes from the equal contribution of the proponents. As

profit for this business will be divided equally among the proponents, the same principle

is being applied to losses.

The proposed project will have 240 days of operation in a year, specifically five

times a week.

Objective of the Study

The primary objective of the study was to determine the feasibility of the proposed

project in terms of the following aspects:

 market;

 technical;

 organization and management;

 financial; and

 socio-economic.

Location of the project

The project site was located at San Antonio Street, Poblacion, Jamindan, Capiz.

This location was selected for the following reason:

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1. There is no existing Squash with Malunggay Leaves Cupcakes in the proposed

area.

2. It is accessible.

3. It is ideal in terms of distance to the target customers.

Areas of Dispersion

KCH Squash with Malunggay Leaves Cupcake intends to sell its products to the

students of Jagnaya Elementary School, Jamindan Elementary School, Lucero

Elementary School, Jaena Norte Elementary School, and also the general public.

Highlights of Major Assumptions

Market Aspect

To determine the demand for Squash with Malunggay Leaves Cupcakes in the

Municipality of Jamindan, a survey was conducted on the target consumers, which are

the four (4) elementary schools in the municipality of Jamindan. Based on the survey,

ninety-six percent (96%) are willing to buy the product, equating to three hundred four

(304) out of three hundred sixteen (316) respondents. It is further assumed that sixty

percent (60%) of the potential market is the target customers of the proposed project.

Based on the computation, the Squash with Malunggay Leaves Cupcakes will have a

target market of 1,687 for 2024, 1,704 for 2025, 1,721 for 2026, 1,738 for 2027, and

1,755 for 2028, respectively. It is assumed that every student is willing to buy six

cupcakes. The projected market share of Squash with Malunggay Leaves Cupcakes is

47.76%, 49.66%; 51.60%; 53.66%; and 55.85% within the five years of production, and
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it is determined by dividing the total expected production by the total demand multiplied

by one hundred percent (100%). The proponents assumed that the business would be able

to sell ninety-five (95%) of its annual total production in the first year of operation and

would consider five percent (5%) as allowance for damages, but this was assumed to

decrease in the next years. The supply of the product was based on the survey conducted

by the proponents of its competitors which are the Shukran and Villasis Bakeshops

situated at Poblacion, Jamindan, Capiz.

Technical Aspect

The proposed business is Squash with Malunggay Leaves Cupcakes. The

production of cupcakes would entail the acquisition of raw materials, tools, and

equipment such as sugar, flour, baking pans, ovens, food mixers, mixing bowls, and

digital scales among others.

The business will operate from eight in the morning until five in the afternoon or

eight (8) hours a day, five (5) days a week, or equivalent to two hundred forty (240) days

a year with a total production of one thousand two fifty (1,250) pieces per week, five

thousand (5,000) per month, and sixty thousand (60,000) pieces annually. There will be

an increase of five percent (5) in the production annually. The price of the product is ten

(10) pesos per piece and it will remain constant for the next five years of business

operation. The production process shows the processing of Squash with Malunggay

leaves cupcakes per operation.

Organizational and Management Aspects

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KCH Partnership is a general partnership form of business organization composed

of three (3) partners who will equally contribute money and other resources needed to

operate the business. In the same manner, the partners will manage the business but one

of them will be hired as one of the production staff to ensure the quality of the product.

The partners are graduates of Business Administration majoring in Marketing

Management namely, Kiah V. Valaquio, Canie H. Villasis, and Henie Mae D. Silvestre.

Business permits and licenses from concerned government agencies and regulating

authorities will be secured before the operation of the proposed business.

Financial Aspect

The financial requirements of the proposed project will be sourced from the equal

contribution of PhP 60, 172,33 each. The amount will be used for all the expenses that

will be incurred during the pre-operation and actual business operation. The return on

investment (ROI) determines the return on capital invested which is 35.58%. The

payback period is the time to recover the investment. As shown in the computation

below, the payback period of the proposed business is approximately two (2) years and

eight (8) months. The net present value of the business is PhP 68,162.33. This outcome

signifies a positive value of the investment that can give a bigger chance for the investor

to earn profit. The Internal Rate of Return (IRR) of the proposed business is 21.92%

which shows that the business will give a reasonable return to the investors.

Socio – economic Aspect

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The result of the survey revealed that ninety-six percent (96%) of the student

population is willing to avail of the product and will buy six (6) cupcakes per week. The

proposed project will provide income to the government in the form of taxes. Likewise,

the community will benefit from the project through the employment opportunities that

the business will offer.

CHAPTER II
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MARKET ASPECT

This phase covers the product, target market, projected demand, projected supply,

projected demand supply gap, market share, pricing, place of distribution, marketing

strategies programs, mode of transportation, marketing channel, promotions, labeling and

packaging, and the projected sales of the business.

Product

The product is “Squash with Malunggay Leaves Cupcakes” which is made from

squash as the main ingredient and malunggay leaves. It is a delicious healthy snack

packed with nutrients and minerals and has a real squashy taste and a tinge of malunggay

flavor. Other ingredients to make the product more enticing to the taste are cake flour,

fresh milk, butter, eggs, and sugar. Squash with Malunggay Leaves Cupcake is naturally

processed without preservatives or any kind of additives.

Target Market

The target market of the product is different pupils of the elementary schools in

the Municipality of Jamindan. In addition, the business will also entertain other

customers coming from other age groups, especially those who are keen on maintaining a

healthy lifestyle. Customers from neighboring municipalities like Mambusao and Sigma

are also welcome if the demand calls for it.

The projected consumption of the target market was determined based on the

results of the survey conducted by the proponents. The survey reveals that ninety-six

percent (96%) of the pupils from the elementary schools are willing to buy the proposed
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product. Of those who signified their willingness to buy the product, the proponents will

consider only sixty percent (60%) as the target market.

Table 1. The projected target market of the proposed product.

YEAR Total Student Potential Market Target Market

Population (96%) (60%)

2024 1,758 1,687 1,012

2025 1,776 1,704 1,022
2026 1,794 1,721 1,032
2027 1,812 1,738 1,042
2028 1,830 1,755 1,052

Demand

The demand for the product was based on the survey conducted by the proponents

among four selected elementary school students in the Municipality of Jamindan. It is

assumed that every student is willing to buy six (6) pieces of cupcakes. The increase in

demand was determined based on the projected increase of the target market for the next

five years.

Table 2. Projected demand for Squash with Malunggay Leaves Cupcakes for the next five
years.

Average consumption Projected Demand

Year Target per week
Market Weekly Monthly Annually

2024 1,012 6 6,072 24,288 291,456

2025 1,022 6 6,132 24,528 294,336

2026 1,032 6 6,192 24,768 297,216

2027 1,042 6 6,252 25,008 300,096

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2028 1,052 6 6,312 25,248 302,976

Supply
The Supply of the product presented in Table 3 was based on the data gathered

from two bakeshops in Jamindan namely, Shukran Bakeshop and Villasis Bakeshop. The

former bakery produces 500 pieces of cupcakes weekly while the latter store produces

350 cupcakes weekly. In total, both stores have a weekly production of 850 pieces which

will result in an annual production of 40,800 pieces of cupcakes. The supply of cupcakes

was assumed to increase by one percent (1%) annually.

Table 3. The Supply of Squash with Malunggay leaves Cupcake in the Municipality of
Jamindan.

Year Shukran Villasis Total Monthly Supply Annual Supply

Bakeshop Bakeshop
2024 500 350 850 3,400 40,800

2025 505 354 859 3,436 41,232

2026 510 358 868 3,472 41,664

2027 515 362 877 3,508 42, 096

2028 520 365 885 3,540 42, 480

Demand-Supply Gap

The demand and supply gap of Squash with Malunggay Leaves Cupcake in the

Municipality of Jamindan was determined by subtracting the existing supply from the

demand for the product. Table 4 shows the demand-supply gap of squash with malunggay

leaves cupcakes for the next five (5) years of business operation.

Table 4. The demand-supply gap

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Year Demand Supply Demand-Supply Gap

2024 291,456 40,800 250,224

2025 294,336 41,232 253,104

2026 297,216 41,664 255,552

2027 300,096 42,096 258,000

2028 302,976 42,480 260,496

Market share
The projected market share of squash with malunggay leaves cupcakes is

determined by dividing the total expected production by the total demand multiplied by

one hundred percent (100%) as shown in Table 5. The market share of the proposed

product was projected to be 20.59%, 21.44%, 22.29%, 23.11%, and 24.16% respectively

for the next five years.

Table 5. Market share for the next five years.

Year Total demand Expected Production Market share

2024 291,456 60,000 20.59%

2025 294,336 63,120 21.44%

2026 297,216 66,240 22.29%

2027 300,096 69,360 23.11%

2028 302,976 73,200 24.16%

Strategy of the Competitors

Based on the survey conducted by the proponents in the Municipality of

Jamindan, the identified competitors of Squash with Malunggay Leaves Cupcakes are the

Shukran and Villasis Bakeshops located at Poblacion, Jamindan, Capiz. They offer a
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wide range of bread and pastry choices, not only cupcakes. They are also situated in the

busy streets of Jamindan and along the national highways. One of their weaknesses

however is that they do not incorporate a much healthier ingredient into their products.

Another thing is that some products are heavily coated with sugar.

Proposed Marketing Strategies

The proposed project will produce high-quality, delicious, and affordable

cupcakes that will be sold at ten (10) pesos per piece. Through the addition of squash and

malunggay into the product, consumers will be able to identify the difference in the

products as compared with its competitors. This branding technique will allow the

business to be distinguished from other businesses in the same niche. Moreover, the

partners will promote their products using tarpaulins, streamers, and social media like

Facebook and Instagram. The packaging should be given importance to attract buyers.

The business will accept feedback, comments, and suggestions for the improvement of

the product.

Price

The prices of various products of KCH Squash with Malunggay leaves Cupcake

are determined by using uniform pricing. The products will be sold at the price of ten

(10) pesos to the wholesaler and will remain constant for the five years of operation. The

price was determined using market penetration pricing.

Selling Price = unit cost

1-0.30
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Place of Distribution

Squash with Malunggay Leaves Cupcakes will be distributed to wholesalers and

retailers such as the school canteen of the four (4) elementary schools in the Municipality

of Jamindan.

Marketing Channel

The proposed project will have both direct and indirect distribution. For direct

distribution, consumers can directly buy from the store while for indirect distribution the

manufacturer will distribute the product to the school canteen of the four elementary

schools in the Municipality of Jamindan.

CONSUMERS

KCH

CANTEENS AND
CAFETERIAS CONSUMERS

Figure 1. Marketing Channel of KCH Cupcakes

Promotion and Advertising Strategy

The product will be launched by creating an awareness campaign that emphasizes

the advantages of the Squash with Malunggay Leaves Cupcake. To introduce the product

to the market, promotional materials such as tarpaulins or banners with the product name,
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the contact information of the owners, and details about the ingredients and their benefits

will be used. The tarpaulins will be strategically placed in high-traffic areas to catch the

attention of consumers.

Now Available
KCH
SQUASH WITH MALUNGGAY LEAVES CUPCAKE

Located at San Antonio Street, Poblacion Jamindan

Capiz

Contact Number: 093559645972

Figure 2. Promotional of KCH Cupcakes

Packaging

Packaging is the final stage in the production process. It is the stage where the

product is ready for distribution. The firm intends to develop a presentable, attractive

packaging to attract the customers. For packing, the firm will use a designed cupcake box

for customer’s orders. One box for every 24 cupcakes and if the customer wants a

presentable box for 6 pieces it is also available. The packaging will make sure that the

cupcakes will stay in good and presentable condition.

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Figure 3. Sample box design of Squash with Malunggay Leaves Cupcake.

Projected Sales

Table 6 shows the projected sales of KCH Squash with Malunggay Leaves

Cupcake for the next five years of operation beginning in 2024. The sales are computed

by multiplying the total production and the selling price of ten (10). The initial price of

ten (10) pesos per piece is assumed to remain constant for the succeeding years. The

proponents that the business will be able to sell ninety-five percent (95%) of its annual

total production in the first year of operation and will consider five (5%) as allowance for

damage and was assumed to decrease.

Table 6. Projected Sales for the next five years.

Year Annual Production Price Annual Projected Sales

2024 60,000 10 600,000

2025 63,120 10 631,200

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2026 66,240 10 662,400

2027 69,360 10 693,600

2028 73,200 10 732,000

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CHAPTER III

TECHNICAL ASPECT

This chapter discusses the technical profitability of the proposed business. It

includes product description, process flow diagram, and plant layout of the business, raw

materials requirements, production supplies, utilities, supplies, human resource

requirements, production capacity, and implementation schedule of the business.

Product Description

Squash with Malunggay Leaves Cupcake is a small yet tasty snack with 110

grams weight per piece. Its ingredients are squash, malunggay leaves, cake flour, fresh

milk, butter, sugar, and eggs. The color is light yellow and it is baked in a cup-shaped

foil. It is perfect for snacks and can be even served on birthdays, parties, and other special

occasions.

Squash and malunggay are chosen because of their nutritive content. Squash is a

good source of vitamin A, C, and B vitamins, high in antioxidants, and rich in minerals.

Malunggay also contains calcium, protein, iron, and essential amino acids, which help

your body heal and build muscles. Squash with Malunggay Leaves Cupcake has no added

preservatives, which are harmful to one’s health.

Process Flow Diagram

The business has five (5) days of operation from Monday to Friday per week

except Saturday and Sunday in schools. The process flow diagram of Squash with

Malunggay Leaves Cupcake for one production cycle produces 600 pieces.
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Symbol Activities Time Output

Wash and 5 Washed and

peel the Squash minutes peeled Squash

Boil the squash 35 Smashed squash

and smash it minutes ready to mix

Beat butter and sugar 6 Creamed butter and

and mix them minutes Sugar
using K beater at
medium speed 3

Beat the egg well 3 Well-beaten egg

minutes

At low speed add soft 3 Soft ingredients

ingredients alternately with minutes and milk are blended
the fresh milk and blend well

Mix the smashed squash,

cake flour, and milk with butter, 5 All ingredients
egg and malunggay dried leaves minutes are mixed

Pipe the mixture into 60 Cupcake is ready

paper cases and bake minutes to be served
until cooked

Figure 4. Process Flow Diagram for producing Squash with Malunggay Leaves
Cupcake for one production cycle.
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Figure 5.
Location of the Project

Figure 6. Floor Plan

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Figure 7. Isometric View

Raw Materials Requirements
The raw materials will be purchased at Jamindan Public Market. The proponents

decided that they would buy raw materials in bulk once a week for its weekly operation.

Table 7. Raw materials needed for the production of Squash with Malunggay Leaves
Cupcakes.

Unit Price Total Costs

Raw Materials Unit Weekly Monthly Annually
(in Php) (in Php)
Squash kilo 20 80 960 45.00 43,200.00
Malunggay kilo 1 20 240 30.00 7,200.00
Cake Flour kilo 20 80 960 90.00 86,400.00
Butter kilo 1.8 7.2 86 192.00 16,512.00
Baking Powder kilo 0.1 0.4 4.8 70.00 350.00
Eggs kilo 0.8 3.2 38.4 160.00 6,080.00
Fresh Milk liter 4 16 19 115.00 22,080.00
Sugar kilo 4 16 192 80.00 15,360.00
Total 189,982.00
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Production Equipment

The proposed business has the following equipment to be used for production
activities.
Table 8. Production supplies needed in the operation of the business.

Items Unit Quantity Unit Cost Total

Basin piece 2 66 132
Knife piece 2 45 90
Gloves pack 2 55 110
Hairnet pack 2 65 130
Apron piece 3 200 600
Hand Mixer piece 1 200 200
Weighing Scale piece 1 200 200
Oven piece 1 4000 4000
Total 5,462.00

Utilities

In business operations, there is a need to consider utility expenses such as

communication, electricity, and water bills. Table 9 shows the monthly and annual costs

of such utilities.

Table 9: Utility expenses used in operating the business.

Utilities Source Monthly Annually

Communication Cellphone 300.00 3,600.00

Electricity CAPELCO 1,000.00 12,000.00

Wifi PLDT 499.00 5,988.00

Maintenance 1,000.00 1,2000.00

Total 33,588.00

Office Supplies
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Table 10 shows the supplies needed to operate the business.

Table 10. Cost of supplies.

Items Unit Quantity Unit Cost Total

Working table Unit 1 2,099.00 2,099.00

Chairs Piece 3 270 810

Electric Fan Unit 1 1,374.00 1,374.00

Cellphone Unit 1 1,618.00 1,618.00

Bulb Piece 2 85.00 170

Calculator Piece 1 299.00 299

Total 6,370.00

Human Resource Requirements

The human resource requirements of the proposed business are shown in Table 5.

It was planned that the business would hire a manager and a baker and expected to

increase the number of its employees every five years.

Table 11. Human resources requirements for the next five years of the business operation.

Position 2023 2024 2025 2026 2027

Manager 1 1 1 1 1

Baker/Seller 1 1 1 1 1

Packaging
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Table 12 shows the cost of packaging needed in the production of Squash with
Malunggay Leaves Cupcakes.
Table 12. Cost of packaging needed in the production of Squash with Malunggay Leaves
Cupcakes.

Items Unit Quantity Unit Cost Daily Weekly Monthly Annually

Box Pcs 40 6 240.00 1,200.00 4,800 57,600

Production Capacity

KCH Partnership will produce two hundred fifty (250) pieces per day, one

thousand two fifty (1,250) pieces per week, five thousand (5,000) pieces per month, and

sixty thousand (60,000) pieces of cupcakes per year. The production will increase by 30

pieces for succeeding years of operation.

Table 13: Projected production of Squash with Malunggay Leaves Cupcakes.

Year Daily Weekly Monthly Yearly

2024 250 1,250 5,000 60,000
2025 263 1,315 5,260 63,120
2026 276 1,380 5,520 66,240
2027 289 1,445 5,780 69,360
2028 305 1,525 6,100 69,360

Waste Disposals

Proper waste disposal will be properly exercised and observed because it is said

that cleanliness is very important, especially in the food business. Proper waste

management should be done in the business to conform to the waste management

program of the government. Wastes are properly segregated from recyclable, non-

recyclable, biodegradable, and non-biodegradable, among others.

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Table 14. Materials needed for waste disposal

Items Quantity Unit cost Total Cost

Trash can 3 115.00 345.00

Dustpan 1 53.00 53.00

Broom 1 49.00 49.00

Total 447.00

Project Implementation Plan

The proposed business is expected to start its actual business operation in January

2024 when all necessary permits and equipment have been acquired by the partners. The

detailed activities with the corresponding time frame are shown in Figure 5.

Activities 2023 2024-2028

F M A M J A S O N D

Feasibility Study

Preparation

Partnership Formation

Capital contribution,

Securing of legal

requirements, acquisition

of production supplies,
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and hiring personnel

7. Operation of the

business

Figure 8. Project implementation plan of the business.

CHAPTER IV

ORGANIZATIONAL AND MANAGEMENT ASPECT

This chapter discusses the company, its business proponents, forms of business

organization, the organizational structure, responsibilities of the personnel and skills or

expertise needed to operate the business, and salaries and wages of employees and its

benefits.

Company Description

KCH Squash with Malunggay Leaves Cupcake is a partnership company that

produces affordable, healthy, and nutritious cupcakes made from squash and malunggay.

Its physical store will be located at Jamindan Public Market but products will also be

distributed to identified elementary schools in Jamindan.

KCH recognizes the need to provide healthier food choices to consumers,

especially young children. Thus, its goal is to provide young children as well as adult

consumers with a snack packed with nutrients and minerals through the incorporation of

squash and malunggay into its products. It also aims to provide job opportunities to those

who are unemployed.

Business Proponents
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The proponents of the project are Kiah V. Valaquio, Henie Mae D. Silvestre, and

Canie H. Villasis, Bachelor of Science in Business Administration Major in Marketing

Management Students of the College of Management, Capiz State University, Burias

Campus.

Forms of Business Organizations

The business is a partnership form of business organization that is composed of

three (3) partners. The business is based on the partnership agreement called articles of

partnership wherein the three partners have agreed to pool labor and capital and share in

profit and liability. Necessary permits and licenses will be secured from concerned

government agencies such as the Bureau of Internal Revenue (BIR), Local Government

Unit (LGU), and other regulating authorities, prior to the business operation.

Organizational Structure

Partner

Manager

Baker/Seller

Figure: 9 Organizational Structure of KCH Partnership.

Personnel of the Business

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Table 15 below shows the different personnel needed for the business as well as

their respective job description or their function running the business.

Qualifications of Personnel

The different hired personnel of the proposed business shall have different

qualifications as indicated in Table 16.

Table 15. Personnel designation and their corresponding job description.

Position Job Description

⮚ A person who will be in charge of

Manager managing and supervising
everyday operations, particularly
in terms of finance.

⮚ Person in charge of assisting the

cook and selling.

⮚ Person in charge of the

distribution process of products
and in charge of packaging and
assisting the cook in the
preparation of the needed
ingredients.
Baker/Seller
⮚ A person who has the ability and
knowledge in creating squash with
malunggay leaves cupcake and has
the skills in selling the product

Table 16. Qualifications of the personnel.

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Position Qualifications

⮚ Must be a business administration

Manager or commerce graduate. Must have
management capability and
techniques. He/she must be
hardworking, responsible, and can
follow instructions accurately.

Baker /Seller
⮚ He/she must have experience in
cooking with a pleasant
personality

⮚ Can learn easily

⮚ Hardworking

⮚ Must have talent in selling

products and with pleasing
personality.

Salaries and Wages

The compensation of the personnel was based on the minimum wage set by the

Department of Labor and Employment (DOLE). He/she will be working for 5 days a

week.

Table 17. Salaries and wages of personnel.

No. of Salary (in Php)

Personnel
Employee Daily Weekly Monthly Annually
Manager 1 420.00 2,100.00 8,400.00 100,800.00

Baker/Seller 1 400.00 2,000.00 8,000.00 96,000.00

Employee Benefits
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Table 18 shows the employees legally required benefits every year.

Table 18. Employee benefits of the proposed business.

Employee SSS PAG-IBIG PHILHEALTH Monthly Annually

Manager 924.00 168.00 147.00 1,239.00 14,868.00

Baker/Seller 880.00 160.00 140.00 1,180.00 14,160.00

CHAPTER V

FINANCIAL ASPECT

Project cost and sources of funds

The KCH partnership will need a total of Php 180,517.00 to start the business.

The three partners decided to contribute equally the amount of Php 60,172. 33 as an

initial investment.

FINANCIAL ASSUMPTION

I. Start-up Cost
Feasibility Study 9,000.00
Licenses and Permits 4,000.00
Total Start-up Cost 13,000.00

II. Fixed Investment

Building Improvements 20,000.00
Total Fixed Investment 20,200.00

III. Working Capital

Raw Materials 47,496.00
Direct Labor 27,540.00
Factory Overhead 20,347.00
Total Working Capital 95,383.00
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IV. Operating Expense

Indirect Labor 25,200.00
Employee Benefits 3,717.00
Utilities 9,147.00
Promotion Expense 3,000.00
Rent Expense 4,500.00
Office Supplies 6,370.00
Total Operating Expense 51,934.00
TOTAL PROJECT COST 180,517.00