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Pamantasan ng Lungsod ng Muntinlupa

College of Business Administration

Chapter I

Executive Summary

A. Types of Business

1. Nature of Business

Nerriena’s Food Company is a manufacturing type of business. It will

manufacture a highly specialized product govern by three individuals under the

partnership agreement. Since partners are college friends and already built a trust to

each other, they decided to combine their properties and money as a source of their

profit for the best interest of their business operation.

The proponents wished to enter the food industry specialized in creative

alternative yet nutritious snack/merienda for the reason that Filipino are known for

being a merienda lover. Just how much do, we, Filipinos love to eat, besides the usual

three meals a day, we have morning and afternoon snack so that cassava-custard cake

is one of the best option of Filipino in taking merienda. It can also be a dessert

because it is like a leche plan but more delicious than the leche plan.
Pamantasan ng Lungsod ng Muntinlupa
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2. Name

The owners decided the name of the company as “NERRIENA’s Food Co.” It

was derived from the name of the owners, namely; Kristine wherein Ne was

taken. rrie for Jerrilyn and na for Ronalyn. Using Nerriena as proponent’s

company name was tribute for friendship and as a compliance to their promise

before, that they will going to establish a business under that firm name.

3. Product

Cassava Custard Cake is definitely a nutritious and delicious snack. Cassava

will partly added with choco-mocha which is a unique flavor cassava cake and to

make it different in taste into the other cassava products. It is an excellent source

of nutrition and energy. Other healthy ingredients are sugar, milk, coconut milk,

cheese etc.

B. Management, Marketing and Financial Highlights

Management Aspect

Once marketing issues have been addressed, it is the time to take a look at key

organizational issues. A study of this aspect will help the management to select the

appropriate form of business, design the internal structure and staff organization, with

who is the appropriate and qualified individual to manage the business or might as
Pamantasan ng Lungsod ng Muntinlupa
College of Business Administration

well call on the certified attorney or other advisor if necessary. All of these should be

geared towards the efficient operation of the project.

Marketing Aspect

The aim of the marketing study is to ascertain the future total demand for the

product; determined the competitive situation of the product in the industry, establish

the annual quantity which it may sell, estimate the future selling prices and design of

the marketing program for the product.

The market analysis should be conducted because it is critical in the success

of the business. It results to information about the market potential which provides the

basis of accurate sale forecasts and marketing strategy.

The purpose of market analysis is to thoroughly acquaint yourself with all the

aspects of market so that you can formulate a plan to capture a share of it.

Financing Aspects

The cash requirements and financing leverage of the firm on one hand, and the

investment policies of institution on the other should be thoroughly weighed. The

purpose of this is to obtain adequate financing on the most reasonable terms.


Pamantasan ng Lungsod ng Muntinlupa
College of Business Administration

C. Socio- Economic Contributions

Establishing a business is very risky especially now that our economy Is

facing economic crisis condition. Taking the risks is one way of proving that there is

always a way to balance every situation in any circumstances.

Being one of those manufacturers in the food industry, we assure that we will

contribute betterment not only for us but for everybody. First we want to promote

healthy food with regards to our product. Through cassava custard cake in its simple

way we can supply the excessive loss of nutrients to maintain healthy body function

for Filipinos.

Second, we fully understand that, to find a job today is really hard, so,

Nerriena’s Food Co. is said to be a “Job Creator”

We are looking forward to generate income for economic benefits.


Pamantasan ng Lungsod ng Muntinlupa
College of Business Administration

Chapter II

Marketing Plan

The marketing aspect is the most important part in making project feasibility study

because it serves as an instrument on the effectiveness of the strategies used as evidenced by

the sales turnover. The primary concern of the small business enterprise in making an

analysis on the trend of services and in manufacturing, the company will determine its

profitability but also the changing trends of market, for the producers/business owner to

come out with the new kinds of the product and manufacturing according to the needs of the

customer.

A. Product/Service

Food is in demand, the demand as evident, is taking a great share of the

market, just as Filipinos are starting to have the feel of enjoying quick merienda and

dessert.

Nerriena’s Food Company provides Cassava –Custard Cake that will suit

each customer’s taste preferences especially Filipinos because we Filipinos love to

eat “kakanin” even foreigners like it. Services will be open from 8:00 am to 8:00 pm

everyday.
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College of Business Administration

B. Target Market

1. Area Coverage

Location is considered essential to the marketing mix, no matter good

your product /services if it is not accessible to the target market, the effort of

the management business found out to be useless. Poblacion as a melting pot

of Muntinlupa is the accessible target place by the proponent. Nerriena’s Food

Company is located at the Poblacion Muntinlupa City beside Julies Bakeshop

near OLACS ( Our lady of Abandoned Church School) were the customer

could easily drop by to have merienda and refreshments.

2. Consumer

Cassava-Choco Delight is any age not less than 1 or 2 years old. Our product

is not just good for life but also helping consumers in maintaining their

healthy life.

C. Demand and Supply Analysis

1. Total Potential Demand

Over the years, the Philippines witnessed a substantial growth in the Manufacturing

and Food Industry food is intricately linked with its culture and traditions. Outside the

home, eating has become lucrative for the retail business. The demand for the food

like Cassava Custard Cake is now gaining for a lots of franchise business offered it.
Pamantasan ng Lungsod ng Muntinlupa
College of Business Administration

Our company will be introducing a different style of making cassava cake and by the

product name Cassava-Custard Cake that will attract Pinoy taste preference. We have

computed the total population from the current population in Barangay Poblacion,

Muntinlupa City which is 80,801 and the growth rate is .014. See Table 1.

Table 1
Nerriena’s Food Company
Demand Schedule
Potential Customers in Poblacion Muntinlupa City

Estimated Projected Projected Projected Total


Total Projected Demand # of Demand in Demand in demand
YEAR Population Demand for CCC Cassava a Week a Month (Projected
.014 70% 5% of Cake demand)*12
Population months
2010 80,801 56,561 2,828 3 8484 33,936 407,232
2011 81,932 57,352 2,868 3 8604 34,416 412,992
2012 83,079 58,155 2,908 3 8724 34,896 418,752
2013 84,242 58,969 2,948 3 8844 35,376 424,512
2014 85,421 59,795 2,988 3 8964 35,856 430,272

Note:
• .014% Growth of Barangay Poblacion, Muntinlupa City from the Muntinlupa
Municipality Projected Population of Barangay Poblacion.
• 70% projected demand for Cassava Custard Cake for ages 5- above y/o (3 pieces
of cassava cake per order)
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College of Business Administration

Table 2
Nerriena’s Food Comapany

Projected Sales

Supply Gap Price Annual Projected Monthly Projected


*.014%
Year (per order) ** 5% Sales Sales

2010 57,012 30 1,710,360 142,530


2011 57,819 31.50 1,821,299 151,775
2012 58,625 33.08 1,939,315 161,610
2013 59,432 34.73 2,064,073 172,006
2014 60,238 36.47 2,076,404 173,034

Note:

• .014% Growth Rate of Alabang basis for increase in supply gap


• 5% Inflation Rate basis for increase in price
• 3 slices of Cassava cake per order

2. Present Competitors

The 70% of the population of Barangay Poblacion is composed of 5 years old

and above. On the 70%, based on the survey that the proponents conducted 5% of the

total population will purchase Cassava-Custard Cake. From the total demand of

Cassava Food Industry we will have 14 % customers.

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Competitors are as follows:

- Nena’s Cassava store 33%

- Julies Bakeshop 28%

- Alvarez Bakeshop 25%

Table 3
Projected Number of Competitor
Total
Demand Nena’s Julies Alvarez Cassava-
Year (Projected Cassava Bakeshop Bakeshop Custard
demand *12 Store 28% 25% Cake 14 %
mons/order) 33% *supply gap
2010 407, 232 134, 387 114, 025 101, 808 57, 102
2011 412, 992 136, 287 115, 637 103, 248 57, 819
2012 418, 752 138, 188 117, 250 104, 688 58, 625
2013 424, 512 140, 089 118, 863 106, 128 59, 432
2014 430, 272 141, 990 120, 496 107, 568 60, 238

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D. Marketing Program and Strategies


To make the people aware of this newly launched product, certain strategies

must be done even before operations. Printing of flyers will be one way of

introducing the product. The use of banners and streamers will also be effective.

Marketing Program

Product

There will be the same kind of compound to other in its nature but in its

content and mixture will differ for is more nutritious and delicious.

Pricing

As a start, we want to accept by society from the time we have opened the

business. We determine our prices by getting the large number of tallies to survey

which the people we have surveyed want the majority of the reasonable price the

price set is P30.00

E. Marketing / Selling Expenses

In this section of the marketing plan, the proponent has decided to give flyers

(leaflets), banners and streamers

Table 4
Types of advertisement Cost
Flyers (leaflets) Php. 1,500
Banners Php. 1,000
Steamers Php 500
Total Php. 3,000

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College of Business Administration

Chapter III
Production/ Operation Plan

A. Technical Production Description


The technical aspect of this study involves the proposed projects’ producing

process of the product, building and a structure, the capacity and design of the

machinery, plant size and plant layout.. This is also deals with the requirements with

the raw materials, and other supplies and the labor requirements.

The section on technical study to the Cassava-Custard Cake aims to provide a

description of the proposed process for producing Cassava Cake wherein items will

be presented only to the extent necessary to understand the business and come up

with realistic estimates costs.

The financial study will therefore reflect costs based on whatever technical

and production data the proponents and other industry sources provided. The result of

this study can calibrate and adjusted if there are charges in product design.

B. Production/ Operation Process

1. Step by step procedure in making Cassava-Custard Cake(Cassava Cake)

Step 1: Grind the raw cassava

Step 2: Squeeze the grinded cassava

Pamantasan ng Lungsod ng Muntinlupa


College of Business Administration

Step 3: Mixed all the ingredients

Step 4: To make topping, combine condensed milk, egg yolk, coconut

milk and sugar


Step 5: Spoon 1 tablespoon of caramelized sugar (for topping) into the

(cooking pan) llanera for topping purposes.

Step 6: Put 1 cup of mixed cassava into the (cooking pan) llanera.

Step7: Meanwhile, boil water

Step 8: When the water gets to a rolling boil, arrange the llanera with cassava

in the steamer and between stand for maximum of 1 hour.

C. Manufacturing Process

Grinding- Squeezing- Mixing- Boiling – Steaming


2. Labor and Machinery requirements per step
To complete the flow of the operation the following are needed:

Table 5
LABOR REQUIREMENTS
Food service supervisor Manager - Supervise and monitor the flow of production
- Secure the quality if the product being
purchase
- Do the tabulating and daily recording of sales
Production Chief (cook) - In charge in all product preparation
- Checks all products as it leaves the
production area and tabulates each individual
order or proportion of the product.

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Cashier/ Service Crew - Receiving payment made by the customer


- Itemize and total all customer order (per day)
The following are the machines needed for the company operation:

Table 6
MACHINES / EQUIPMENTS USES
Steamer - Use to cook / steam the cassava cake.
Grinder - Grind the cassava into a very small pieces
Llanera (cooking pan - Use to have different size and designs of Cassava
cake
Electric Stove - Use to cook the product
Freezer - A storage cabinet, compartment. Or room where food
or other perishable goods can be frozen and preserved
at a very low temperature.

D. Machinery/ Equipment Requirement


Table 7
ITEM QUANTITY COST
1. Freezer 1 pc. 10,000.00
2. Electric Stove 2 pcs. 5,000
3. Grinder 2.pcs. 1,500
4. Llanera (cooking pan) 300 pcs. 3,000
5. Steamer 2 pcs. 3,000
Total 22,500

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E. Raw Materials Requirement


Production Cost
100 pcs of Cassava (produce)
Table 8
Direct Unit(s) Cost Unit Total
Materials
Cassava 20 kilos 10.00 Per kilo 200
Chocolate 320 ml 76.00 Per piece 76
(powder)
Margarine 15 grams 25.00 Per piece 76
Cheese 2 boxes 32.00 Per box 72
Coconut Milk 10 kilos 11.50 Per kilo 116
Milk 5 pieces 62.00 Per piece 310
(condense)
Egg 50 pieces 4.00 Per piece 256
Sugar 5 kilos 29.80 Per Kilo 149
Total Php.1,255
Indirect Unit(s) Cost Unit Total
Materials
Plastic box 500 pieces Php.50/100pcs. Per pieces Php 250.00
Plastic bag 1,000 pieces Php.10/ 100pcs. Per pieces Php 200.00
Php. 450.00

Total Direct and Indirect Materials 1,705


Multiply by 3 / slices
Cost Per Order (DM) 5,115
Multiply by 87 / days
445,005

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Divide by Units to be Produce 61,763 / units


Cost of Direct Materials (order) 7.21 / order
Divided by 3
Cost of Direct Materials (units) 2.40 / unit

Direct Labor No. of Crew Rate/ day monthly Annual


Production Laborer 1 300 9,000 108,000
Divided by units to be produce 61,763
Divided by 3
Direct Labor Cost 0.58 / unit

Factory Overhead
13th Month Pay 45,000
Payroll Taxes 30,600
Insurance 754
Light and Water 29,880
Repair and Maintenance 1,885
Rent 2,500
Depreciation 7,682
Total 118,301

Divided by Units to be produce 61,763


Cost per Unit 1.92 / unit
4.90 / unit
Multiply by 3
Cost per Order 14.70
Mark up (102%) 14.99
(29.69)
Price P30.00

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F. Plant / Factory Location.

Location is a vital part in the success of the business to be established. It’s determines

the feasibility and accessibility to the propose customer.

Cassava-Custard Cake is proposed in National Road Poblacion, Muntinlupa City

besides (OLACS) Our Lady of Abandoned Church School.


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College of Business Administration

G. Plant Layout

This includes the factor plan of the establishment. This will gives us an idea of

how it will look like when it is finished. Also, the proposal layout is to be able to

allocate divide or at least can properly minimized the space.


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College of Business Administration

H. Waste Disposal System

Garbage shall be disposed through the garbage collector. Garbage truck

collectors usually garbage daily and the trash should be disposed properly. The

company’s waste disposal is located at the backside near delivery lock of the store.
Garbage will compose of biodegradable and non- biodegradable with separate trash

cans.

Water waste shall be disposed through drainage pipers installed in the

premises. The drainage pipers course the ways to the main sewerage system in the

area.

I. Quality Control

Nerriena’s Food Company aims to having satisfaction to each customers that

consumes their product. Certain standard measures should be settled to ensure

qualities of the product as well as to service. Below are someway to provide quality

control system.

• Standard recipe

• Standard sized and quality

• Proper sanitation

• Proper hygiene and cleanliness on the production (includes the proper attire of the

crews)

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College of Business Administration

Chapter IV

Organizational Structure
The organization Plan includes the study of the organization and forms of the

business with its keys personnel and officers. In this aspect we can determine the real

effectiveness of the organizational structure. The organizational plan is also important

because it presents the information and planning up the initial operation of the

business. The effectiveness of this plan will bring to realization the feasibility of this

project.

A. Legal Form of the Business

The proposed business venture named “Nerriena’s Food Company” will be organized

as a partnership; an association of two or more persons who contribute money,

property, talent or industry with the intention dividing the profit and losses among

themselves according to their agreed ratio. Each partner is personally liable for any

debt incurred by the partnership.

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B. Organizational Structure
Manager(s)

Packaging Cashier(s)/
Chief Cook(s) Purchaser Crew

C. Qualification of Officers
The propose business will be the General Manager, Finance Manager,

Supervisor and Customer Relation Staff or Service Crew. The employees will be

required to work 8 hours including one hour break a days. The business will start

operating from 8am to 8 pm equivalent to 12 hours. So if it is necessary in shifting

schedule, it is allowable depending on the availability of each employees/staff. Each

employee will do their duties and tasks assigned to them. It can be expected that

different special services will perform by each staff, according to the needs of the

customer.

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Table 9 General Manager


JOB SPECIFICATION JOB DESCRIPTION
• Single • Will handle overall movement of
• 25-35 years old business

• At least 3 years of working • Will undertake the decision


experience making aspect of the business

• Must have excellent skills in • Will allocate resources among


managing a business various assets

• Analytical, hardworking and • Responsible in preparing


result oriented financial statement every end of

• Leadership Skills the month; Income statement,

• Graduate in BS Management Balance sheet and Cash Flow


• Responsible in disbursements of
fund and as well depositing sales
in the bank.

Table 10 Production Chief or Cook


JOB SPECIFICATIO JOB DESCRIPTION
• 18- 25 years old • The chief cook direct and
• At least 2 years in College participates in the preparation
(HRM Course) and serving of meals
• Must have good Cooking • Determines things and sequence

• Has a pleasing personality of operation required to meet


serving times
• Inspects galley and equipment
for cleanliness and proper
storage.

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Table 11
Cahier or Service Crew
JOB SPECIFICATION JOB DESCRIPTION
• 18-25 years old • Will handle all inquiries and
• At least 2 years in College phone calls
(have background in • Do record keeping and
Accountancy) tabulating of sales (per day)
• Must have good public relation • Itemize and total all customer
• Has a pleasing personality order (per order)
• Prepares sales summary

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D. Gantt Chart

June July Aug Sep Oct Nov Dec Jan Feb


1. Gathering of useful data and
information
2. Preparation procurement of location
site
3. Processing the permits and license to be
needed
4. Determining and purchasing of
materials

5. Site development
6. Acquisition of equipment, furniture
and supplies

7. Advertising and promotion


8. Recruitment and selecting of
employees

9. Training employees

10. Opening of the store

E. Administrative Expense
Table 12
Position No. of Employees Rate per Month Monthly Cost
Food Production 2 persons 9,000.00 18,000.00
Chief Cook
Cashier/Service 2 persons 9,000.00 18,000.00
Crew
Packaging Crew 1 person 9,000.00 18,000.00
Total 5 employees 27, 000.00 54,000.00

Note:
• Minimum rate of employees P 300.00 per day.

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Chapter V

F. List of Schedule
Schedule 1 Projected Sale
Year Supply Gap Price Sales
2010 57, 012 30 1,710,630
2011 57, 819 31.50 1,821,299
2012 58, 625 33.08 1,939,315
2013 59, 432 34.73 2,064,073
2014 60, 238 36.47 2,196,880

Schedule 2-a Cost of Sale

Items 2010 2011 2012 2013 2014


Raw Material Used 148,321 169,818 181,069 192,571 205,016
Direct Labor 35,823 40,433 42,364 44,333 46,339
Factory Overhead 118,585 132,754 138,706 144,774 150,954
Total Manufacturing Cost 302,729 343,005 362,139 381,678 402,309
Add: Finished Goods, Buy 26,368 28,089 29,896 31,848
Total Available for Sales 302,729 369,373 390,228 411,574 434,157
Less: Finished goods, Ending 26,368 28,089 29,896 31,848 33,885
Cost of Sales 276,361 341,284 360,332 379,726 400,272

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Schedule 5
Insurance
Items Base Rate Insurance Operating Factory
70% 30%
Factory Machinery & Equipment 22,500 2% 450 450
Office Equipment & Furniture 11,485 2% 229.7 160.79 68.91
Other Equipment 3,725 2% 74.5 74.50
Total 754.2 610.79 143.41

Schedule 6
Depreciation
Items Total Estimate Value Annual Operating Factory
Cost d Life Depreciation 70% 30%
Leasehold 2,500 5 500 400 280 120
Improvement
Office Equipment 11,485 5 500 2,237 2,237
Factory machinery & 22,500 5 500 4,400 4,400
Equipment
Other Equipment 3,725 5 500 645 451.5 193.5
Total 7,682 2,968.5 4,713.5

Schedule 7
Rent Expense
2010 2011 2012 2013 2014
Rent Expense 30,000 31,500 33,075 34,729 36,465

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Schedule 10

Starting Expense
Pre- Operating Expense:
Securities and Exchange Commission 2,000.00
Bureau of Internal Revenue 2,500.00
Annual registration of Business Permit (mayor’s Permit) 250.00
Annual Barangay Clearance Permit 500.00
Annual Sanitary Clearance 500.00
Annual Community tax Certificate 100.00
Annual Garbage Fee Payment 150.00
Annual Signboard Fee Payment 100.00
Annual Health Certificate fee Payment 135.00
Annual General Insurance Policy 450.00
Department of Health 1,500.00
Zoning Clearance 160.00
DTI Permit 365.00
Total 8,710.00
Add: Advertising 3,000.00
Total Pre-Operating Expense 11,710.00

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Schedule 17
Nerriena’s Food Company
Property Plant and Equipment

Property, Plant and Equipment Unit Price Total


Leasehold Improvement 2,500
Office Equipment
Wall Clock 2 300
Electric fan 1 1,500
Ceiling fan 2 2,400
Lights (day light 40 watts) 1 340
Calculator 2 1,000 5,590
Office Furniture
Office table 1 2,000
Office Chairs 1 set 1,000
Cabinet 1 4,195 7,195
Factory Equipment
Flat Tray 3 255
Scooper 2 151
Knife 1 800
Basin 2 120
Chopping Board 1 249.99
Trash Can 2 299.50
Laddle 4 399.95
Weighing Scale 1 269.75
Measuring Cup 1 99.99
Chairs 2 300
Sink 1 2,345
Toilet Bowl 1 500
Freezer 1 10,000
Steamer 3 5,500
Grinder 1 8,500
Stove 1 1,500
LPG 1 580

31,870.18
Total 47,155.18

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Schedule 18

Nerriena’s Food Company


Partner’ Equity

Capital Needed: 135,000

Capital Contribution:
Owner 1 (Zamora) 45,000
Owner 2 (Sales) 45,000
Owner 3 (Kosca) 45,000
Total: 135,000

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Schedule 19
Accrued Expense

2010 2011 2012 2013 2014


Accrued Payable, end
Light and Water Utility 29,880 31,374 32,943 34,590 36,319
Payroll Taxes 2,250 2,363 2,481 2,605 2,735
Total 32,130 33,737 35,424 37,195 39,054

Breakdown
Accrued light and water
Ending Negative (2,990) (3,289) (3,618) (3,980) (4,378)
Beginning 2,990 3,289 3,618 3,980
Light and water operating 20,916 21,962 23,060 24,213 25,424
Payroll Taxes FOH 8,984 9,412 9,883 10,317 10,856
Payment 29,890 31,075 32,614 34,148 35,882

Accrued Payroll Taxes


Ending Negative 2,250 2,363 2,481 2,605 2,735
Beginning 2,250 2,363 2,481 2,605
Payroll Taxes operating 23,400 24,570 25,799 27,089 28,443
Payroll Taxes FOH 8,964 9,412 9,883 10,317 10,856
Payment 30,114 333,869 35,564 37,282 39,169

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Schedule 20
Office Supplies

Quantity Units Cost Unit Total Annual


Monthly Used:

Bond Paper 2 Reams 220.00 Ream 440 3,280


Record Book 1 Book 65.00 Book 65 780
Order Slip 1 Ream 60.00 Ream 60 720
Total 6,780

Annual Used:

Time Card 1 Ream 26.00 Ream 26 312


Storage Box 1 Pc 275.00 Pc 275 3,300
Ball Pen 5 Pcs 5.00 Pcs 25 300
Pencil 5 Pcs 5.00 Pcs 25 300
Pentel Pen 2 Pc 25.00 Pc 50 600
Folder 10 Pc 5.00 Pc 50 600
Total 5,412

Total 12,192

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Nerriena’s Food Company


Project Cost

Capital Outlay
Leasehold Improvement 2,500
Office Equipment 5,590
Office Furniture 7,195
Factory Equipment 31,870.18
Total Capital Expense 47,155.18
Working Capital
Operating
Pre-Operating 11,710
Salaries and wages 51,000
Payroll Taxes 3,090
Office Supplies 12,192
Water and Electricity 2,490
Repair and Maintenance 565.50
Allowance for Contingency 4,713.50
Total Working Capital 84,921
Capital Needed 132,076.18
Capital Contribution 135,000

J. Kosca 45,000
R. Sales 45,000
K. Zamora 45,000

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Profitability Ratio

2010 2011 2012 2013 2014


Net Income 781,394 845,512 906,369 971,171 1,039,753
Total Assets 500,077 758,418 1,020,763 1,299,427 1,586,229
Return in Income 156% 112% 89% 75% 66%

Payback Period
Year Cost of Investment Net Operating Balance Payback Yrs.
to be Recovered inflows

2010 135,000 781,394 (646,394) 0.17

2011 (646,394) 845,512 (1,491,906) (0.77)

2012 (1,491,906) 906,369 (2,398,028) (1.65)

2013 (2,398,028) 971,171 (3,438,028) (2.47)

2014 (3,438,028) 1,039,753 (4,477,781) (3.31)

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Return on Sales

Year 2010 2011 2012 2013 2014


Net Income 781,394 845,512 906,369 971,171 1,039,753
Net Sales 1,710,360 1,821,299 1,939,315 2,064,073 2,196,880
Return on Sales 46% 46% 47% 47% 47%

Break Even Analysis


Variable Cost 2010 2011 2012 2013 2014
Direct Materials 66,910 71,506 75,528 80,036 84,636
Direct Labor 72,263 80,866 84,043 87,280 90,572
Indirect Materials 122,291 135,450 138,706 142,696 146,741
Factory Supplies 148,231 169,818 181,069 192,571 205,016
Office Supplies 1,382 1,325 1,392 1,460 1,535
Utilities Expense 29,880 31,374 32,943 34,590 36,320
Repair and Maintenance 1,320 1,386 1,455 1,528 1,604
Vat Expense 16,298 16,988 17,210 17,429 17,648
Total 458,575 508,713 532,346 557,590 584,072

Production 316,417 384,413 402,011 420,595 440,292


Variable cost/unit 1.45 1.32 1.32 1.36 1.33

Selling Price 3.00 3.15 3.31 3.47 3.65


Variable cost/unit 1.45 1.32 1.32 1.36 1.33
Contribution Margin 1.55 1.83 1.99 2.11 2.32
Contribution Margin
Ratio 51.67% 58.10% 60.12% 60.81% 63.52%

Pamantasan ng Lungsod ng Muntinlupa


College of Business Administration

Fixed Cost 2010 2011 2012 2013 2014


Payroll Taxes 30,600 32,130 33,736 35,423 37,195
Repair and Maintenance 1,885 1,979 2,078 2,182 2,291
Light and water 29,880 31,374 32,943 34,590 36,320
Contingency 7,682 8,066 8,469 8,892 9,337
Advertising Expense 3,000 3,150 3,308 3,473 3,647
Total 73,047 76,699 80,535 84,560 88,790

Production 316,417 384,413 402,011 420,595 440,292


Fixed cost/unit 0.24 0.21 0.21 0.21 0.21

Fixed cost 76,647 80,479 84,504 88,728 93,166


Over CM/unit 1.45 1.32 1.32 1.36 1.33
BEP in units 52,860 60,969 64,018 65,241 70,050
Fixed cost 76,647 80,479 84,504 88,728 93,166
Over CM ratio 51.67% 58.10% 60.12% 60.18% 63.52%
BEP Sales 148,839 138,518 140,559 145,910 146,672

Pamantasan ng Lungsod ng Muntinlupa


College of Business Administration

I Demographic Profile

1. Gender Frequency Percentage


Male 153 40%
Female 233 60%
Total 386 100%
2. Age
7-18 52 13%
19-25 22 6%
26-30 60 16%
31-35 97 25%
36-40 25 22%
41-50 15% 4%
50 above 54 14%
3. Civil Status
Single 107 28%
Married 258 67%
Others 21 5%
4. Monthly Income
5,000-7,500 103 27%
7,501-10,000 97 25%
10,001-12,500 55 14%
12,501-15,.000 60 16%
15,001 above 71 18%

Pamantasan ng Lungsod ng Muntinlupa


College of Business Administration

D. Office Equipment and Factory Supplies

Table 9
Factory Supplies Quantity Unit(s) Cost Unit Total
Flat Tray 3 Pcs 85 Pc 255
Scooper 2 Pcs 75 Pc 151
Knife 1 Set 800 Set 800
Basin 2 Pcs 60 Pc 120
Chopping Board 1 Pc 249.99 Pc 249.99
Trash can 2 Pcs 199.75 Pc 299.50
Calculator 2 Pcs 500 Pc 1,000
Weighing Scale 1 Pc 269.75 Pc 269.75
Measuring Cups 2 Set 99.99 Set 99.99
Chairs 2 pcs 150 pc 300
Total 3,545.23

Office
Equipment and Quantity Unit(s) Cost Unit Total
Furniture
Office table 1 Pcs 2,000 Pc 2,000
Office Chair 1 Set 1,000 Set 1,000
Electric Fan 1 Pc 1,500 Pc 1,500
Ceiling Fan 2 Pcs 1,225 Pc 2,450
Light 2 Pcs 170 Pc 340
Cabinet 1 pc 4,195 Pc 4,195
Total 11,485

Pamantasan ng Lungsod ng Muntinlupa


College of Business Administration

Office Supplies Quantity Unit(s) Cost Unit Total


Bond Paper 2 Ream 220 Pc 440
Ballpen 5 Pcs 10 Pc 50
Pencil 5 Pcs 10 Pc 50
Folder 10 Pcs 3 Pc 30
Pentel Pen 2 Pcs 25 Pc 50
Envelope 10 pcs 5 Pc 50
Trash can 2 Pcs 80 Pc 160
Record Book 1 Box 65 Box 65
Order Slip 1 Ream 60 Ream 60
Time Record 1 Ream 26 Ream 26
Storage Box 1 Pc 275 Pc 275
Total Php 1,354
Others
Supplies
Sink 1 Pc 2,345 Pc 2,345
Wall Click 2 Pcs 150 Pc 300
Toilet Bowl 1 pc 500 Pc 500
Total 3,145
Total Php22,733.23