Feasibilitystudyaboutchicken 141119201619 Conversion Gate02

ASIATECH COLLEGE
Asia Technological School of Science and Arts
INTRODUCTION
Livestock raising is a common business in our country. In this business, varieties
of products are derived depending on what production the entrepreneur is in. It requires
knowledge and skills in order to succeed in this field. Thus, interest, capital, ability to
manage the project and the demand for the product in the locality is taken into
consideration.
One of the livestock raising industry is poultry. It can be specialized into egg
production, chicken breeding, and raising broilers for meat production. It has been a
popular and lucrative job due to the increasing demand from the emerging business and
increasing population.
This feasibility project is primarily focused on the poultry production specifically
the 45 days broiler meat production. This business, the ChicN Poultry Business, will be
engaged in raising and selling good quality dressed chicken and its by-products such as
intestine, liver, feet, head, neck and gizzard. It will serve the demand of poultry meat in
Bugasong and probably the neighboring municipalities in the near future.
EXECUTIVE SUMMARY
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BACKGROUND INFORMATION
The proposed project name is ChicN Poultry Business which will be
located at Brgy. Sabang West, Bugasong, Antique. The poultry farm has an easy access to
transportation, electricity and water supply. The business is a sole proprietorship owned
by Mrs. Arleen N. Sidayon. ChicN Poultry Business is engaged in growing broiler and
producing chicken meat. It will focus on selling the Best Dressed Chicken and its by-
products with its superior taste and texture.
MARKETING ASPECT
The business will cater the unfilled demand of dressed chickens and its by-
products in the market. The demand and supply of the project is based on the survey that
was conducted. The price will be based on the prevailing market price of the product. To
attract prospective buyers, streamers will be put up and fliers will be distributed in public
places. Word-of-mouth will also be a good way to introduce the product. The products
will be distributed through delivery which will be scheduled before the market days of
Bugasong. Walk-in customers will also be accommodated. The target markets are
business establishments such as restaurants, meat shops, barbeque stalls, roasted chicken
food stall and food catering businesses.
TECHNICAL ASPECT
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The proposed project is located at an accessible area. The place is
spacious and surrounded by trees which are appropriate to relieve the
chicken from stress and diseases. The location has a built-in well which will help sustain
the water supply.
The business will be engaged in growing the broiler chicken until it is processed
into a dressed chicken and ready for delivery. The wastes will be dumped in a compost
pit.
ORGANIZATIONAL ASPECT
The project is owned by Mrs. Arleen N. Sidayon. The owner will be the manager
and the bookkeeper. There will be three staff that will help in the operation of the
business.
FINANCIAL ASPECT
The source of financing will be 25% from the bank loan and the 75% will be
provided by the proponent. The financial aspect of the business requires high cost to put
up the project but a good gain can also be expected.
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SOCIO-ECONOMIC ASPECT
The project aims to contribute benefits to the people of Bugasong
because it will hire three staff who are residents of the local area. It will generate
additional income to the government through paying taxes and in complying the permits
needed in the operation of the business. It will also help increase the supply of dressed
chicken and its by-products in the market.
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BACKGROUND INFORMATION
A. Name of the Business
The project is named ChicN Poultry Business as a short but catchy
term for our product which is chicken.
B. Location
The project is located at Brgy. Sabang West, Bugasong, Antique. It is a
spacious area surrounded by trees which is suitable for raising chickens. It is far
from neighboring houses to avoid disturbance and has an easy access of
transportation, electricity and water.
C. Vision, Mission and Objectives
Vision
ChicN Poultry Business aims to be the leading suppliers of dressed
chicken and its by-products in Bugasong, Antique as well as in the neighboring
towns.
Mission
ChicN Poultry Business is committed to promote good and high quality
with low price dressed chicken and by-products to the people living in Bugasong,
Antique and other neighboring towns.
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Objectives
The objective of the proposed project is to promote convenient distribution
of dressed chicken and its by-products for consumers consumption, retailers and
other food business establishments to satisfactorily avail their needs.
Indicatively, the project wants to attain the following:
a. To expand the operation of the business in the neighboring towns after 5
years.
b. To increase profit by 5% annually.
c. To provide good and high quality products.
d. To be the leading supplier of dressed chicken and its by-products in
Bugasong and other neighboring towns.
MARKETING ASPECT
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A. Description of the Product
Chic N Poultry Business will raise 45 days broiler chickens with a target
weight of 1.6 kilo each. Broiler chicken are day old chicks that typically have
white feathers and yellow skin which become full grown broilers at an average of
45 days.
The business will produce dressed chickens that are fresh and well-
cleaned. Aside from the dressed chicken, the business will also offer its by-
products such as gizzard, liver, intestines, feet, head and neck.
B. Target Market
ChicN Poultry Business primarily targets to supply business
establishments such as restaurants, meat shops, barbeque stalls, roasted chicken
food stall and food catering businesses in the municipality of Bugasong.

Moreover, the demand of dressed chicken in the market of Bugasong is
2,472 kilos. There are two existing competitors namely Chynn-Chynns Store
which produces 731 kilos of dressed supply chicken every week or 2,924 kilos a
month and Magnolia which produces 366 kilos a week or 1,464 kilos per month.
Both competitors are located at the public market of Bugasong. The data for
demand and supply is located at Schedule 1.
C. Pricing Strategy
In order to be competitive, the products will be sold based on market price
in Bugasong. The average inflation rate of dressed chicken and its by-products is
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5% (Philippine Statistics Authority,Antique). The regular
seasons of dressed chicken and by-products are January,
February, June, July, August, September, October and November while the peak
seasons are March, April, May and December. The products are listed below with
their respective market price per kilo.
Product Price per kilo Price per kilo
(Regular Seasons) (Peak Seasons)

Chicken P 120.00 P 130.00
Intestines P 80.00 P 80.00
Liver P 150.00 P 150.00
Feet P 80.00 P 80.00
Head P 50.00 P 50.00
Neck P 90.00 P 90.00
Gizzard P 140.00 P 140.00
Table 1. Prices of Products
D. Distribution Strategy
The products will be distributed through delivery. The market days in
Bugasong are Wednesday and Sunday. Prior to the market days, there will be a
scheduled delivery every Tuesday and Saturday using the delivery vehicle
(multicab) owned by the proponent. If the customer would like to order not on
scheduled time of delivery or there are possible walk-in customers, the managers
decision depends if there is an excess products as reserved for the following day
provided that the customer will also be the one who will pick-up the product.
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The cost of delivery is shown below:
Cost of gasoline per Scheduled Amount
Delivery
Weekly P 250.00
Monthly P1,000.00
Table 2. Cost of Delivery
E. Promotional Strategy
The promotional strategies to be used by Chic N Poultry Business are
through word of mouth, placement of streamers and distribution of fliers. The
streamers will be placed at the municipal plaza of Bugasong, public market and in
front of the poultry farm two weeks before opening of the business. The fliers will
be distributed to the business establishments such as restaurants, meat shops,
barbeque stalls, roasted chicken food stall and food catering businesses in
Bugasong as well as the by-passers in the public market two weeks before the
opening of the business.
The following table shows the cost of promotional materials:
Promotional Cost Number Total Cost Supplier
Material per of Pieces
Unit
Streamer P200 3 P 600.00 Boytex Printing
(2x1 m) Services
(Bugasong)
Flier 1 450 450.00 Tres Marias
(8.5 x 5.5 in) Computer Shop

9 (Bugasong)
TOTAL P1,050.00
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Table 3. Cost of Promotional Materials
*The canvass of promotional materials is presented in Exhibit 20B.
F. Sales Projection
Based on the survey, the unmet demand for dressed chicken in a week is
1,375 kilos or 5,500 kilos in a month. The market share of dressed chicken in
Bugasong is 12% (Philippine Statistics Authority, 2014).

The projected sales for the first year of operation is P1,279,488. The
projected annual growth rate for dressed chicken and its by-products is 8% and
the inflation rate of prices is 5% (Philippine Statistics Authority, 2014).
The projected sales for five years are presented below:

Table 4. Projected Sales
Year Sales-Dressed Sales -By-Products Total Sales
Chicken (Schedule 2B)
(Schedule 2A)
1 P 1,085,007.00 P 194,481.00 P 1,279,488.00
2 1,342,593.00 240,993.00 1,583,586.00
3 1,514,938.00 272,933.00 1,787,871.00
4 1,789,854.00 309,966.00 2,099,820.00
5 1,955,082.00 351,274.00 2,306,356.00
TECHNICAL ASPECT
A. Nature of the Product

Chic N Poultry Business grows and produces dressed broiler chicken.
Broiler chicken is a specialized breed of chicken intended to grow approximately
45 days, the best breed of chicken to raise for meat production. Dressed chicken
will only be sold in whole and specific prices will be placed on its by-products.
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The business will focus on selling the Best Dressed
Chicken and its by-products with its superior taste and texture.
The major consumers of the product will be restaurants, market, various
institutions with food catering services, and high income households.
Products Description
Dressed Chicken It is a processed chicken.
Intestine It is a long tube in the body of the
chicken.
Liver This is the largest organ of the chicken. It
is a dark brown part internal organ of the
chicken.
Feet These contain relatively little meat, and
are eaten mainly for the skin and cartilage.
Head It is the upper part of the chicken which is
mostly grilled.
Neck It is a part between the head and the body
of the chicken which is mostly grilled or
fried.
Gizzard It is a dark brown and hard part of the
chicken.
Table 5. Description of Products
B. Location of the Business
ChicN Poultry Business is located at Brgy. Sabang West, Bugasong,
Antique. The site has an easy access to transportation, electricity and water
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supply. There is a built-in well in the site which can be used in
maintaining the cleanliness of the poultry farm. The location is
surrounded by the trees which helps the chickens avoid stress which is cause of
too much heat of sun.
C. Operational Process
Figure 1. Operational Process
a. Feeding Schedule
Age of Type of Consumpt Cost per Total Supplier
chicks feeds ion Sack Cost per
in days 800
chicks
0-14 Chick 3 sacks/800 P1,350.00 P 4,050.00 Pacifica
heads
Booster Agri-Vet
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Supplies
15-28 Broiler 4 sacks/800 P1,500.00 P 6,000.00 Stephen &

heads
Starter Diane
Store
29-45 Broiler 4 sacks/800 P1,250.00 P 5000.00 Pacifica
heads
Finisher Agri-Vet
Supplies
Table 6. Feeding Schedule (Department of Agriculture)
b. Drinking Water
The chicks will be provided with numerous drinking bowls since they
easily get thirsty, especially in hot weather. It will also help them to learn quickly
how to drink. These will place be in bright places so they can be easily found and
accessible to approach. The source of water will be from the Bugasong Water
District.
c. Light
In the first week, the chicks will be given enough light to enable them to
keep eating. For the first three days, flocks are usually expose to 23 hours of light
and one hour of darkness to allow for adjustment to their surroundings and for
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finding feed and water. The hour of darkness adapts the flock
to darkness and prevents later piling in case of electrical failure.
Light duration is then controlled from day four to five or six weeks, depending on
target weight and duration of the grow out.
Age of chicks in days No. of hours in light No. of hours in dark

0-3 23 1
4-7 18 6
8-14 14 10
15-22 16 8
23-28 18 6
29 to market age 22 2
Table 7. Light Schedule (Department of Agriculture)
d. Temperature
Chicks temperature is 38.6C and becomes 40.5C in 7 days. The coop
temperature must be 31C-35C in the first day and this is lowered by 3C at the
end of the first week. After this, temperature is maintained at 21C-24C.
Age of chicks in days Brooding temperature oC

0-7 31 35
8-15 27-31
15-27 21-24
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28-45 Remove the supply of heat
Table 8. Temperature Schedule (Department of Agriculture)
e. Vaccination Program
The broiler chickens will be vaccinated in order to prevent them from
diseases such as New Castle Disease and Infectious Bursai Disease. The NCD
Vaccine is administered on the 7th and 17th day of the chick. One drop of vaccine
in the eyes or one drop in the nostril is given. Care should be taken not to release
the chick until it has inhaled the nasal drop and/or blinked its eye. The IBD
Vaccine is mixed with water on the 7th and17th day of the chick.
This is performed to prevent the increase number of mortality of chickens.
Vaccine Schedule Cost per Head

New Castle Disease 7 days old P 1.50
Vaccine P 2.00
Infectious Bursai
Disease Vaccine
Vaccine P 2.00
Infectious Bursai
Disease Vaccine
Table 9. Vaccination Schedule
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D. Land, Delivery Vehicle and Building

The owner has an available land and delivery vehicle to be used for the
entire operation. The land has an area of 300 square meters which is enough to put
up a poultry farm. The building costs P 80,809.00.

The lay-out of the poultry farm is presented at Exhibit 33 and the detailed
computation for the building is located at Exhibit 6.

E. Equipment, Supplies and Furniture and Fixtures
Equipment
Particular QTY Unit Unit Cost Estimate Total Cost Supplier
s d Useful
Life
Operating Equipment
Knives 3 Item P130.0 5 P390.00 Bandiola
0 Plastic
Goods
Weighing 2 Item 1,980.00 5 3,960.00 Charlie
scale (60 kilos) Auto
Supply
Kawa 1 Item 2,900.00 5 2,900.00 Bandiola
(extra Plastic
size) Goods
Plucker 1 Item 19,000.00 10 19,000.00 Olx.com
Artificial 5 Item 150.00 5 750.00 Dinglasan
Brooder Furniture
Freezer 2 Item 15,000.00 7 30,000.00 Gaisano
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Grand
Mall of
Antique
Chopping 2 Pieces 350.00 5 700.00 Dinglasan
Board Furniture
Waterers 25 Pieces 110.00 5 2,750.00 Pacifica
Agri-Vet
Supplies
Shovel 2 Item 450.00 5 900.00 Robert
Trading
Wheel 1 Item 2,195.00 5 2,195.00 Susana
borrow Marketing
Bucket 5 Item 250.00 5 1,250.00 Bandiola
Plastic
Goods
Tub/Basin 10 Item 260.00 5 2,600.00 Bandiola
Plastic
Goods
Generator 1 Item 15,000.00 10 15,000.00 Aton
Marketing
Total Operating Equipment P82,395.00
Office Equipment
Calculator 3 Item 465.00 5 1,395.00 Gaisano
Grand
Mall of
Antique
Stapler 2 Item 40.00 5 80.00 Hercyls
Mini Mart
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Total Office Equipment P1,475.00

TOTAL COST OF EQUIPMENT P83,870.00
Table 10. List of Equipment
*The canvas of cost of equipment is presented in Exhibit 2.
Description Operating Equipment
Knives- A sharp edge equipment for cutting. It is used in cleaning the chicken.
Weighing Scale- A measuring device used to weigh live and dressed chicken.
Large Pan (Kawa) A large piece of cookware used for boiling or roasting foods.
It will be used in the scalding procedure to help soften the feathers.

Plucker- electric equipment with rubber fingers that enables easy feathering of the
chicken.
Artificial Brooders It is a 120 watts capsule which is used to supply heat to the
chicks in the brooding house from day old to 2 weeks. This is in the form of
electric, kerosene lamp or aid of charcoal.

Freezer- A cooling equipment used in freezing the clean chicken that is ready for
delivery.
Chopping Board It is a durable board made of wood or plastic and come in
various widths and sizes. It will be used as a place material for cutting the
chicken.
Waterers It is an inverted vessel that is used as drinkers. It is a semi-circular,
fairly wide and supported by an additional bracket to permit easier adjustment and
easy cleaning.
Shovel- A tool used for digging and cleaning the poultry house.
Wheelbarrow- It is cart that bring items from one place to another. It will be used
to carry the feeds and manure of chickens.

Bucket- It is a container used in getting water and cleaning the poultry house.
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Tub/Basin- It is an open usually circular vessel with sloping or
curving sides used typically for holding water or other materials. This is
where the chickens are placed after cleaning.

Generator It is a machine used to supply electricity.
Description - Office Equipment
Calculator It is a device that performs arithmetic operations on numbers.

Stapler It is machine for fastening together sheets of paper or the like, with wire
staples.
Supplies
Particular Quantit Unit Unit Total Cost Supplier
s y Cost
Office Supplies
Folder 20 Pieces P5.00 P100.00 Gaisano Grand
Mall of Antique
Record 5 Item 85.00 425.00 Gaisano Grand
Book Mall of Antique
Ballpen 10 Item 11.00 110.00 Gaisano Grand
Mall of Antique
Receipts 50 Item 44.00 2,200.00 Gaisano Grand
Mall of Antique
Correction 2 Item 14.00 28.00 Gaisano Grand
Fluid Mall of Antique
Total Office Supplies P2,863.00
Operating Supplies
Plastic Bag 1 Item 100.00 100.00 Bandiola Plastic
Goods
Total Operating Supplies P100.00
Cleaning Supplies
Waste can 1 Item 160.00 Bandiola
160.00 Plastic Goods
Broom 2 Item 130.00 260.00 Bandiola
Plastic Goods
Dustpan 2 Item 50.00 100.00 Bandiola
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Plastic Goods
Total Cleaning Supplies P520.00
TOTAL SUPPLIES P3,483.00
Table 11. List of Supplies
*The canvas of cost of supplies is presented in Exhibit 3.
Description Office Supplies
Folder A piece of cardboard folded to make a file in which necessary documents
can be held, compiled and filed.

Record Book It is used to monitor the inventory level, credits of customers,
attendance of staff, expenses and revenues.

Ballpen It is an instrument with ink used for writing.
Receipts It is a printed acknowledgement which serves as an evidence of
payment.
Correction Fluid An opaque liquid used to paint over a written or printed errors
and provide a surface for adding a correction.
Description Operating Supplies
Plastic A thin transparent waterproof material used for wrapping the products
sold by the business.
Description Cleaning Supplies
Waste Can A container for waste wherein people throw their trash especially
papers.
Broom A brush for sweeping inside the office.
Dustpan A container with a flat base and an open front into which dirt and dust
can be swept.
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Furniture and Fixtures

Unit Quantit Estimate Total Cost Supplier
Particulars Cost y d Useful
Life
Monoblock P300.00 5 3 P1,500.00 Bandiola
Chair Plastic Goods

Wooden 3,299.00 1 4 3,299.00 Gaisano
Table Furniture
Filing 14,500.0 1 4 14,500.00 Gella Gen.
Cabinet 0 Merchandisin
g
Total P19,299.0
0
Table 12. List of Furniture and Fixtures
*The canvas of cost of furniture is presented in Exhibit 4
Description Furniture and Fixtures
Monoblock Chair A plastic furniture that is used for sitting accommodation of
customers and staff.

Wooden Table A wooden furniture use in the reception area and paper works
area of the manager.

Filing Cabinet A furniture that is used as storage compartment. It will be the
place where the files of the business are kept.
F. Labor Requirements/Manpower
Description No. Monthly Salary

Owner/Manager 1 P8,080.00
Caretaker/Maintenanc 1 6,012.70
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1 6,529.50
Operational Staff
Operational 1 7,286.30
Staff/Driver
TOTAL 4 P27,908.50
ChicN Poultry Business will have three employees in the operation and
management of the business.
Table 13. List of Monthly Salaries
G. Utilities
The poultry business needs water and electricity. Water is important in
order to provide water supplements to the chicken and to clean the poultry house.
The source of water will come from an existing deep well within the vicinity and
a faucet; therefore the need for water supply is enough to operate the business.
Also, this project needs electricity to provide light to the chicken. It will serve as a
source of artificial heat for them.
Utilities Monthly Rate Monthly cost Supplier
Usage
Water 22.72 Cubic P22 per Cubic P500.00 Bugasong Water
Meter Meter District

Electricity 328.03 kilowatt P10.30 per 3,378.71 ANTECO
(Schedule ) kilowatt
Transportation 1,000.00 Sea Oil
Communication PLAN 499.00 Globe
TOTAL P5,377.71
Table 14. List of Utilities Expense
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H. Waste Disposal
In order to make the project environment friendly it
needs proper disposal of waste. In connection with this, the project must have a
compost pit, about 2 meters wide and 2 meters deep. The compost pit will be the
dumping site of the waste of chicken which shall be covered to minimize the
spreading of odor.
I. Fiscal and Legal Regulations
The business, in order to start its operation, needs several permits such as DTI
permit and Mayors Permits. These permits are renewable annually.
Amount
Annual Registration (BIR) P500
DTI 300
Mayor's Permit 2,000
Business Clearance to Operate 30
Police Clearance 75
Sedula 22
Fire Clearance 50
Sanitary Permit 125
Environmental Compliance Certificate (DENR) 500
TOTAL P3,602
Table 15. List of Permits
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ORGANIZATIONAL ASPECT
A. Form of Organization
The business will adopt a sole proprietorship type of organization where
the owner will also be the manager. This form of organization is chosen because it
is easy to establish.
B. Organizational Chart
Owner/Manager
Caretaker/ Operational
Maintenance
24 Staff/Driver
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Operational
Staff
Figure 2. ChicN Poultry Business Organizational Structure
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C. Functions and Job Descriptions

The employees of the business will have the following
functions:
Job Title Description

Owner/Manager Responsible for the production and business
management.
Supervise the daily operation.
Purchase chicks, feeds and other necessities for the
rearing of chicks.
Accepts orders.
Receive payments from the customers and issues official
receipts.
Pays the bills.
Acquire assets.
Approves the credits of customers.
Negotiate with the customers concerns.
Responsible for the bookkeeping.
Renew the licenses and permits.
Pay premiums of SSS and Phil health.
Approves transactions related to the business.
Hires and fires employees.

Caretaker/Maintenance Replenish food and water for the chickens on daily basis.
Administer the vaccination of the chicken.
Clean the cages, office and the surroundings of the
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poultry farm.
Administer the vaccination.

Operational Staff Responsible for the purchase, loading and unloading of
chicks.
Responsible for the weighing, bleeding, scalding,
evisceration, cleaning and refrigeration of the product.
Administer the delivery of the customers orders.

Operational Staff/Driver Responsible for the purchase, loading and unloading of
chicks.
Drive the delivery truck.
Responsible for the weighing, bleeding, scalding,
evisceration, cleaning and refrigeration of the product.
Administer the delivery of the customers orders.
Check the condition of delivery truck regularly.

Table 16. Functions and Descriptions of Employees
D. Qualifications
For the above positions and their corresponding tasks and functions, the
following qualifications are required:

1. Owner/Manager
Is willing to finance the business.
Able to manage the business.
Is knowledgeable in poultry industry.
2. Caretaker/Maintenance
Male, a full time worker whom able to maintain poultry cleanliness
and administer the rearing of chickens.

At least 18-35 years old.
Must be loyal and trustworthy.
Must be responsible, industrious and hard worker.
Is knowledgeable about poultry industry.
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3. Operational Staff
Male, at least 20-35 years old.
At least high school graduate.
4. Operational Staff/Driver
Male, at least 20-35 years old.
At least high school graduate. Must have a drivers license.
Proficient in driving and repairing of delivery truck.
E. Compensation Package
The business will give the following compensation package for its employees:
Position Monthly SSS Philhealt Net Pay per Net Annual
Wages h Month Salary

Owner/ P7,440.00 P552.50 P87.50 P8,080.00 P96,960.00
Manager
Caretaker/ 5,520.00 405.20 87.50 6,012.70 72,152.40
Maintenance
Operational 6,000.00 442.00 87.50 6,529.50 78,354.00
Staff
Operational 6,720.00 478.80 87.50 7,286.30 87,435.60
Staff/Driver
TOTAL P25, 680 P1,878.50 P350.00 P27,908.50 P334,902.00
Table 17A. Compensation Package
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Total Contribution Employer

Position SSS PhilHealth Total Total Annual
Contribution Contribution
per Month
Owner/Manager P552.50 P87.50 P640.00 P7, 680.00
Caretaker/Maintenanc 405.20 87.50 492.70 5, 912.40
e
Operational Staff 442.00 87.50 529.50 6, 354.00
Operational 478.80 87.50 566.30 6, 795.60
Staff/Driver
TOTAL P1,878.50 P350.00 P2, 228.50 P26, 742.00
Table 17B. Total Contribution - Employer
FINANCIAL ASPECT
A. Basic Financial Assumptions

1. Selling price of dress chicken and its by-product will increase annually by
5% (Philippine Statistics Authority, Antique).
2. Annual growth is 8% (Philippine Statistics Authority).
3. The total project cost is P810,000 pesos only.
4. Depreciation expense is computed using Straight-line Method.
5. The source of financing will be 25% bank loan and 75% owner
contribution.
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6. The collateral for the loan in the bank is the land title
of the owner.
7. Utilities and office supplies will increase at 4.68% every year (Philippine
Statistics Authority).
8. Feeds and vaccine consumption will increase at 4.68% every year
(Philippine Statistics Authority).
9. Mortality rate is 2% every batch (Department of Agriculture).
10. Working capital period is 3 months.
B. Total Project Cost

Property, Plant and Equipment (Schedule 3) P 583,978.00
Working Capital (Schedule 4) 218,370.00
Pre-Operating Cost (Schedule 5) 7,652.00
TOTAL P 810,000.00
C. Source of Financing
Debt (Bank Loan) 25% P 205,000.00
Equity Contribution 75%
Noncash (Exhibit 22) P 400,000.00
Cash 205,000.00
605,000.00
TOTAL P 810,000.00
Source of Financing Description

Debt The 25% of the fund will be obtained from
the agricultural loan from Land Bank of the
Philippines in which the land of the owner
will serve as a collateral. The term of loan is 5
years diminishing balance with interest of 8%.

Equity The 75% of the fund will be funded by the
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owner . It is composed of a delivery vehicle
amounting to P150,000, land costing
P250,000 and cash of P205,000.

Table 18. Description of Source of Financing
D. Projected Financial Statements
Financial Statement Description

Income Statement Formal statement showing the financial
performance of an entity for a period of time

Statement of Financial Position Formal statement showing the economic
resources, liquidity, solvency, financial
structure and capacity for adaptation of an
entity
Statement of Cash Flow Formal statement which provides information
about the cash receipts and cash payments of
an entity during a period

Table 19. Description of Financial Statements
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CHIC 'N POULTRY BUSINESS

Projected Income Statement
For the Year Ended Dec. 31, xxxx
Year 1 Year 2 Year 3 Year 4 Year 5

Sales (Schedule 6) P1,279,488 P1,583,586 P1,787,871 P2,099,820 P2,306,356
Cost of Sales (Schedule 7) 962,537 1,073,167 1,140,582 1,246,339 1,347,706
Gross Profit 316,951 510,419 647,288 853,482 958,650
Less: Selling and Administrative
Expenses (Schedule 8) 71,895 73,370 73,868 74,390 74,935
Earnings Before Interest and Taxes 245,056 437,049 573,420 779,092 883,715
Less: Interest Expense (Schedule 9) 16,400 13,120 9,840 6,560 3,280
Earnings Before Taxes 228,656 423,929 563,580 772,532 880,435
Less: Income Taxes (Schedule 10) 32,164 87,179 219,074 212,210 246,739
Net Income P196,492 P336,750 P344,506 P 560,322 P633,696
32
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CHIC N' POULTRY BUSINESS

Statement of Financial Position
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets
P21 P38 P71 P1,05 P1,60 P2,23
Cash 8,370 2,150 3,939 2,963 7,244 4,230
31, 35, 40, 45, 51,
Inventory (Schedule 11) 843 935 548 740 560
218, 413, 749, 1,093, 1,652, 2,285,
Total Current Assets 370 993 874 511 964 790
Noncurrent Assets
Property, Plant and Equipment 583, 570, 556, 543, 529, 515,
(Schedule 3) 978 378 777 177 576 976
Other Assets
Pre-Operating Costs 7, 6, 4, 3, 1,
(Exhibit 31) 652 122 591 061 530 -
P81 P990, P1,31 P1,63 P2,18 P2,80
TOTAL ASSETS 0,000 492 1,243 9,749 4,070 1,766
33
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LIABILITIES AND OWNER'S EQUITY
Long-term Liabilities
Loan Payable (Schedule 205, 164, 123, 82, 41,
9) 000 000 000 000 000 -
Owner's equity
605, 630, 655, 680, 705, 730,
Capital (Schedule 12) 000 000 000 000 000 000
Accumulated Earnings 196, 533, 877,7 1,438, 2,071,

(Net Income) 492 243 49 070 766
TOTAL LIABILITIES AND P81 P990, P1,31 P1,63 P2,18 P2,80
OWNER'S EQUITY 0,000 492 1,243 9,749 4,070 1,766
34
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CHIC N' POULTRY BUSINESS

Cash Flow Statement

Cash Flow from Operating Activities
Net Income P196,492 P336,750 P344,506 P560,322 P633,696
Add/Less Adjustments:
Increase in inventory -31,843 -4,092 -4,613 -5,191 -5,821
Depreciation-Building
(Exhibit 30) 8,081 8,081 8,081 8,081 8,081
Depreciation-Equipment (Exhibit 27) 11,660 11,660 11,660 11,660 11,660
Depreciation-Furniture
(Exhibit 28) 3,860 3,860 3,860 3,860 3,860
Depreciation-Delivery Vehicle (Exhibit 29) 15,000 15,000 15,000 15,000 15,000
Amortization of Pre-Operating Costs
(Exhibit 31) 1,530 1,530 1,530 1,530 1,530
Net increase (decrease) in cash from
operating activities 0 204,780 372,789 380,024 595,261 668,005
Cash Flow from Investing Activities

Building (Exhibit 6) -80,809
Purchase of Equipment
(Exhibit 7) -83,870
Purchase of Furniture & Fixtures
(Exhibit 8) -19,299
Pre-Operating Costs
(Schedule 5) -7,652
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ASIATECH COLLEGE

investing activities -191,630 0 0 0 0 0
Cash flow from Financing Activities

Loan Release (Schedule
9) 205,000
Annual Payment of Principal (Schedule 9) -41,000 -41,000 -41,000 -41,000 -41,000
Capital Contribution in Cash 205,000

financing activities 410,000 -41,000 -41,000 -41,000 -41,000 -41,000
NET CASH FLOW 218,370 163,780 331,789 339,024 554,261 627,005

Add: Beginning Cash Balance 0 218,370 382,150 713,939 1,052,963 1,607,224
Cash Ending Balance 218,370 382,150 713,939 1,052,963 1,607,224 2,234,230
36
ASIATECH COLLEGE
E. Financial Evaluation
a. Net Present Value
NPV is the excess of the present values of a projects inflows over the
amount of the investment. It provides an absolute measure of a projects
worth because it measures the total present value of the present return.
The project is accepted if the NPV is equal or greater than zero; otherwise,
reject. If the project is positive, the entity will earn a return equal to or greater
than its cost of capital.

Financial evaluation shows that the net present value of the project after 5
years is P 1,004,720.
Cost of capital is 6%*

Cash Inflow PV of 1 at 6% Present Value
Year 1 P204,780 0.94 P193,188

Year 2 372,789 0.89 331,781
Year 3 380,024 0.84 319,075
Year 4 595,261 0.79 471,503
Year 5 668,005 0.75 499,173
Total 1,814,720
Less: Investment 810,000
Net Present Value P1,004,720
Table 20A. Net Present Value Computation
Calculation for Cost of Capital
Cost of Capital Proportion WACC

Debt 8% 25% 2%
Equity 5% 75% 4%
Total 6%
Table 20B. Cost of Capital Computation
b. Internal Rate of Return
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ASIATECH COLLEGE
It is also known as discounted rate of return. It is a time adjusted rate of
return which equates the present value of the future cash inflows with the cost
of investment which produces them. If the projects IRR is greater than the
cost of capital, then accept the project; if not, reject.

The IRR of the project is 46.87% which is higher than the 6% cost of capital.
Cash Inflow
Year 1 P204,780
Year 2 372,789
Year 3 380,024
Year 4 595,261
Year 5 668,005
Total 2,220,860
Divide by 5 years 5
Average Cash Return P444,172

Table 21A.Average Cash Return Computation
PV Factor:
Investmen
t 810,000
Divide by Average Cash
Return 444,172
Total 1.823618
Table 21B. Present Value Factor Computation
Interpolation Method
IRR= 45% + 5%(.051909/.138901)

45
% 1.875527 45% + 0.018686
46.87
0.051909 IRR= %
? 1.823618 0.138901
50 1.736626
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ASIATECH COLLEGE
%
Table 21C. Internal Rate of Return Computation
c. Accounting Rate of Return

ARR is also called simple rate of return which measures the projects
profitability from a conventional accounting standpoint by relating the
required investment to the future annual net income. Under this method, a
project is accepted if the ARR is greater than the cost of capital but reject if it
is less than the required rate of return.

The accounting rate of return is 12.13%, 32.92%, 42.05%, 55.85% and
73.70% respectively for five years. The project is profitable based on the
financial evaluation.
Net Income Average Net Income Divided by Investment ARR

P196,4
Year 1 92 P98,246 P810,000 12.13%
Year 2 336,750 266,621 810,000 32.92%
Year 3 344,506 340,628 810,000 42.05%
560,32
Year 4 2 452,414 810,000 55.85%
Year 5 633,696 597,009 810,000 73.70%
Table 22. Accounting Rate of Return Computation
d. Profitability Index
It is known as beneficial/cost ratio present value desirability index. It is
the ratio of the total present value of future cash inflow divided by its
investment. This method is used as a means of ranking projects in a
descending order of desirability. The project with PV Index of one or greater
39
ASIATECH COLLEGE
than one is accepted because it maintains and enhances the wealth of the
owners as reflected in the share price of the firms common stock. If the
project is less than one, reject.

The profitability index of the project based on the financial evaluation is
2.24 .This project is acceptable because it can maintain or enhance the wealth
of the owner.
Profitability Index = PV of Cash Inflows/ Net Investment

= P 1,814,720/810,000
= 2.24
Table 23. Profitability Index Computation
e. Payback Period
This method refers to the length of time before investment is recovered. It
is the time where the cumulative cash inflows is equal to the cost of
investment. If the payback period is less than or equal to the maximum
allowed payback period by the management, accept; otherwise, reject. Thus,
the more quickly the cost of an investment can be recovered, the more
desirable is the investment.

The project financial evaluation regarding payback period showed 2.61
years. This means that the project cost could be recovered in less than 5 years.
The project is acceptable and a desirable investment.
Payback
Initial Cumulative cash Outstandin
Cash Inflow Period
Capital Inflow g Balance
Years
Year 0 810,000
40
ASIATECH COLLEGE
204,780 204,780 605,220 1

Year 1
372,789 577,569 232,431 1
Year 2
380,024 957,593 0.61
Year 3
595,261 1,552,854
Year 4
668,005 2,220,860
Year 5
2.61
Table 24. Payback Period Computation
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f. Break-even Analysis
It is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.
Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point.
Once the break-even point has been reached, the net operating income will increase by the amount of the unit contribution
margin for each additional unit sold.

Php 100.00 Php Php Php Php
1,279,488 % 1,583,586 100.00% 1,787,871 100.00% 2,099,820 100.00% 2,306,356 100.00%
Sales
Php Php Php Php Php
Cost of 962,537 75.23% 1,073,167 67.77% 1,140,582 63.80% 1,246,339 59.35% 1,347,706 58.43%
Sales
Php Php Php Php Php
316,951 24.77% 510,419 32.23% 647,288 36.20% 853,482 40.65% 958,650 41.57%
Gross Profit
Variable Php Php Php Php Php
Expenses 228,549 17.86% 246,212 15.55% 251,690 14.08% 285,830 13.61% 307,789 13.35%
(Table 25B)
Php Php Php Php Php
Contributio 88,402 6.91% 264,207 16.68% 395,598 22.13% 567,652 27.03% 650,861 28.22%
n Margin
Fixed Php Php Php Php Php
Expense 61,733 62,733 62,733 62,733 62,733
(Table 25C)
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ASIATECH COLLEGE
Divided by: 6.91% 16.68% 22.13% 27.03% 28.22%

CM Ratio
Php Php Php Php Php
Break-Even 893,494 376,004 283,516 232,058 222,297
in Pesos
The financial evaluation shows that the break-even point in peso for the year is P893, 494. This means that the sales for
the said year should not be lower than this point to recover the fixed cost.
Table 25A. Break-Even Analysis Computation

Variable Expenses
Utilities Expense
Php225,066 Php242,566 Php247,873 Php281,835 Php303,607
(Exhibit 18A)
Miscellaneous and
Php3,483 Php3,646 Php3,817 Php3,995 Php4,182
Supplies (Exhibit 17A)
Php251,69
Php228,549 Php246,212 0 Php285,830 Php307,789
TOTAL
Table 25B. Variable Expenses Computation
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ASIATECH COLLEGE
Fixed Expenses
P12,00
Selling Expenses (Exhibit 26) P11,000 0 P12,000 P12,000 P12,000
Depreciation Equipment 11,66
(Exhibit 27) 11,660 11,660 11,660 0 11,660
Depreciation Furniture
(Exhibit 28) 3,860 3,860 3,860 3,860 3,860
Depreciation Delivery Vehicle
(Exhibit 29) 15,000 15,000 15,000 15,000 15,000
Depreciation Building 8,0
(Exhibit 30) 8,081 8,081 8,081 81 8,081
Amortization of Pre-Operating
Costs (Exhibit 31) 1,530 1,530 1,530 1,530 1,530
Repairs and Maintenance 2,0
(Schedule 8) 2,000 2,000 2,000 00 2,000
Permits and Licenses (Exhibit 21) 3,602 3,602 3,602 3,602 3,602
Other Expenses 5,000 5,000 5,000 5,000 5,000
TOTAL P61,733 P62,733 P62,733 P62,733 P62,733

Table 25C. Fixed Expenses Computation
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ASIATECH COLLEGE
g. Return on Investment
ROI is a performance measure used to evaluate the efficiency of an
investment or to compare the efficiency of a number of different investments.
The higher the return on ROI of a project, the greater the profit earned per
peso invested in the operating assets.

The return on investment of the project for the first year is 24.26%. This
means that there is high profit earned per peso invested in the project.
Net Income Per Year

196,492 24.26%
Year 1
336,750 41.57%
Year 2
344,506 42.53%
Year 3
560,322 69.18%
Year 4
633,696 78.23%
Year 5
2,071,766
Total
5
Divide by 5 years
414,353
Average net Income
810,000
Divide by project Cost
51.15%
ROI
Table 26. Return on Investment Computation
SOCIO-ECONOMIC ASPECT
A. Government Benefits
45
ASIATECH COLLEGE
The Government will benefit on the taxes and permits paid by the
business. These taxes and permits increased the revenue of the government. They
use this fund to support its projects and expenditures for the development of the
municipality as well as the whole country.
B. Customers/Consumer Benefits
The customers will have sufficient supply of dressed chicken and its by-
products. The wholesalers and business establishments such as restaurants, meat
shops, barbeque stalls, roasted chicken food stall and food catering businesses
will have convenience in getting their supplies with lesser time, cost, effort and
price.
C. Employment Benefits
The business will provide additional employment for the unemployed residence
especially in the town of Bugasong.
IMPLEMENTATION
October November December January

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
Study of the project
Proposal of business plan
to the proponent
Acceptance of the
proposal by the proponent
and application for loan
Application for necessary
permits and licenses
Construction of Poultry
House and Cleaning of the
46
ASIATECH COLLEGE
Area
Acquisition of Equipment,
Furniture and Supplies
Hiring of Personnel
Start of Promotional
Activities
Acquisition of Feeds and
Vaccines and Final Set up
of the Poultry Farm
Commencement of the
Project
Start of selling products in
the market
Table 27. Implementation Schedule
Study of the project will begin from the first week up to the second week of
October in order to ensure its feasibility. Also during the second week of October, the
proposed business plan will be discussed to the proponent. Then acceptance of the
proposal by the proponent and application for loan will be made on the third week of
October. On the last week of the month, application for necessary permits and licenses
will be prepared. Construction of the Poultry house and cleaning of the area will start
from the fourth week of October up to the third week of November followed by the
acquisition of necessary equipment, furniture and supplies which will be done after the
construction of the poultry house up to the first week of December. There will be a hiring
of Personnel on the second week of December and on the third week; two months prior to
the beginning of the project, the promotional activities for the business will begin. Then
on the last week of December, acquisition of feeds and vaccines and final set up of the
poultry farm will be made. The commencement of the project will be on the first week of
47
ASIATECH COLLEGE
January and five weeks after the start of the business, it is anticipated that product will
start selling at the market.
CONCLUSION
The proposed project is feasible because the results of the study are in
conformity with the objectives of the project which is to promote convenient
distribution of dressed chicken and its by-products for consumers consumption,
retailers and other food establishments to satisfactorily avail their needs.
In the socio-economic and environmental impact, part of the revenue of the

business will support the project of the government in the form of taxes paid; it
will be also be beneficial to the hired workers of the business for the improvement
of their standard of living through salaries and wages.
In relation to its technical and operational aspects, an encouraging result is

obtain. The business is located in a proper place for raising chicks. The workers
employed are also qualified and the equipment used are modernized.
In respect to its organization and management aspect it shows sign of

positivity. The proponents interest is in the field of business, thus, it is a sign that
she can handle the proposed business well. The business will be easily managed
48
ASIATECH COLLEGE
and supervised by the owner since she will only hire three workers to help her in
the daily operation of the business.
The financial aspect also shows a positive result, the first five years of
operation is expected to generate enough revenue to cover all the expenses
incurred and at the same time generate profit for the owner. The proposed
business will be able to fully return the initial investment within 2.61 years.
To sum it all, based on the analysis and the results of the data gathered, putting up
ChicN Poultry in Sabang West, Bugasong, Antique is favorable.
RECOMMENDATION
The researchers of this feasibility study recommend that the business can opt to
use a credit system in the sales transaction, in addition to the cash basis system currently
used.
Moreover, if the business becomes profitable and the proponent wants to continue
the operations of the business after five years, she can decide to reconstruct the building
from using light materials into concrete in order that the structure will be usable for a
longer period and for a more efficient and suitable place for operation.
49
ASIATECH COLLEGE
Lastly, as the business grows, the manager can hire employees in addition to the
existing staff for a more effective operation. These include the operational staff and
caretaker/maintenance.
50
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ANNEX
SCHEDULES
Schedule 1A - Demand per Week (kilos)

Minimum Maximum
1 to 5 2 5.71% 2 10
6-10 7 20.00% 42 70
11-15 11 31.43% 121 165
16-20 2 5.71% 32 40
21-25 1 2.86% 21 25
Others(please specify) 12 34.29% 2,208 2,208
Total 35 100.00% 2,426 2,518
TOTAL 2,472
Schedule 1B Demand and Supply per Week and Unmet Demand (kilos)
Total demand by consumer per week
(Schedule 1A) 2,472
Total supply by the competitors per week:

Magnolia 366
Chynn-Chynns Store 731
Less: Total Supply per week 1097
Total Unmet Demand 1375
Market Share 12% x 12%
Total Captured Market per Week 165
Assumptions:
Regular sales are 150 heads or 165 kilos. There will be additional 100 heads sold
during local fiestas March, April, May- by 167%(Philippine Statistical Authority).
Annual growth rate is 8% and inflation rate is 5% per year. The prices per year is
presented in Exhibit 1.
51
ASIATECH COLLEGE
Schedule 2A.a Sales Projection of Dressed Chicken (Year 1)

TOTAL SALES: P1,085,007
Ave.
No. of Weight
No. of Mortality Heads per Price
Heads (2%per for Head per Total Sales
Month Week Procured batch) Disposal (Kilo) Kilo per Week
January 1 150 3
2 150 3
3 150 3
4 250 5
February 1 150 3
2 150 3 147 1.1 P120 P19,404
3 150 3 147 1.1 120 19,404
4 250 5 147 1.1 120 19,404
March 1 250 5 245 1.1 130 35,035
2 250 5 147 1.1 120 19,404
3 250 5 147 1.1 120 19,404
4 250 5 147 1.1 120 19,404
April 1 250 5 245 1.1 130 35,035
2 250 5 245 1.1 130 35,035
3 250 5 245 1.1 130 35,035

4 150 3 245 1.1 130 35,035
May 1 150 3 245 1.1 130 35,035
2 150 3 245 1.1 130 35,035
3 150 3 245 1.1 130 35,035
4 150 3 245 1.1 130 35,035
June 1 150 3 147 1.1 120 19,404
2 150 3 147 1.1 120 19,404
3 150 3 147 1.1 120 19,404
4 150 3 147 1.1 120 19,404
July 1 150 3 147 1.1 120 19,404
2 150 3 147 1.1 120 19,404
3 150 3 147 1.1 120 19,404
4 150 3 147 1.1 120 19,404
August 1 150 3 147 1.1 120 19,404
2 150 3 147 1.1 120 19,404
3 150 3 147 1.1 120 19,404
4 150 3 147 1.1 120 19,404
Septembe
r 1 150 3 147 1.1 120 19,404
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ASIATECH COLLEGE
2 150 3 147 1.1 120 19,404

3 150 3 147 1.1 120 19,404
4 150 3 147 1.1 120 19,404
October 1 150 3 147 1.1 120 19,404
2 150 3 147 1.1 120 19,404
3 150 3 147 1.1 120 19,404
4 150 3 147 1.1 120 19,404
November 1 400 8 147 1.1 120 19,404
2 400 8 147 1.1 120 19,404
3 400 8 147 1.1 120 19,404
4 162 3 147 1.1 120 19,404
December 1 162 3 147 1.1 120 19,404
2 162 3 392 1.1 130 56,056
3 162 3 392 1.1 130 56,056
4 162 3 392 1.1 130 56,056
TOTAL 8,910 178 7,938 P1,085,007
Schedule 2A.b Sales Projection of Dressed Chicken (Year 2)

Ave.
No. of Weight
No. of Heads per Price
Heads Mortality for Head per Total Sales
Month Week Procured (2%) Disposal (Kilo) Kilo per Week
January 1 162 3 159 1.1 P126 P22,037
2 162 3 159 1.1 126 22,037
3 162 3 159 1.1 126 22,037
4 270 5 159 1.1 126 22,037
February 1 162 3 159 1.1 126 22,037
2 162 3 159 1.1 126 22,004
3 162 3 159 1.1 126 22,004
4 270 5 159 1.1 126 22,004
March 1 270 5 265 1.1 137 39,875
2 270 5 159 1.1 126 22,004
3 270 5 159 1.1 126 22,004
4 270 5 159 1.1 126 22,004
April 1 270 5 265 1.1 137 39,875
2 270 5 265 1.1 137 39,875
3 270 5 265 1.1 137 39,875
4 162 3 265 1.1 137 39,875
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ASIATECH COLLEGE
May 1 162 3 265 1.1 137 39,875

2 162 3 265 1.1 137 39,875
3 162 3 265 1.1 137 39,875
4 162 3 265 1.1 137 39,875
June 1 162 3 159 1.1 126 22,004
2 162 3 159 1.1 126 22,004
3 162 3 159 1.1 126 22,004
4 162 3 159 1.1 126 22,004
July 1 162 3 159 1.1 126 22,004
2 162 3 159 1.1 126 22,004
3 162 3 159 1.1 126 22,004
4 162 3 159 1.1 126 22,004
August 1 162 3 159 1.1 126 22,004
2 162 3 159 1.1 126 22,004
3 162 3 159 1.1 126 22,004
4 162 3 159 1.1 126 22,004
Septembe
r 1 162 3 159 1.1 126 22,004
2 162 3 159 1.1 126 22,004
3 162 3 159 1.1 126 22004
4 162 3 159 1.1 126 22,004
October 1 162 3 159 1.1 126 22,004
2 162 3 159 1.1 126 22,004
3 162 3 159 1.1 126 22,004
4 162 3 159 1.1 126 22004
November 1 432 9 159 1.1 126 22,004
2 432 9 159 1.1 126 22,004
3 432 9 159 1.1 126 22,004
4 175 4 159 1.1 126 22,004
December 1 175 4 159 1.1 126 22,004
2 175 4 423 1.1 137 63,800
3 175 4 423 1.1 137 63,800
4 175 4 423 1.1 137 63,800
P1,342,59
TOTAL 9,623 192 9,368 3
Schedule 2A.c Sales Projection of Dressed Chicken (Year 3)

54
ASIATECH COLLEGE
Ave.
No. of Weight
January 1 175 4 171 1.1 P132 P24,829
2 175 4 171 1.1 132 24,829
3 175 4 171 1.1 132 24,829
4 292 6 171 1.1 132 24,829
February 1 175 4 171 1.1 132 24,829
2 175 4 171 1.1 132 24,829
3 175 4 171 1.1 132 24,829
4 292 6 171 1.1 132 24,829
March 1 292 6 286 1.1 143 45,013
2 292 6 171 1.1 132 24,829
3 292 6 171 1.1 132 24,829
4 292 6 171 1.1 132 24,829
April 1 292 6 286 1.1 143 45,013
2 292 6 286 1.1 143 45,013
3 292 6 286 1.1 143 45,013
4 175 4 286 1.1 143 45,013
May 1 175 4 286 1.1 143 45,013
2 175 4 286 1.1 143 45,013
3 175 4 286 1.1 143 45,013
4 175 4 286 1.1 143 45,013
June 1 175 4 171 1.1 132 24,829
2 175 4 171 1.1 132 24,829
3 175 4 171 1.1 132 24,829
4 175 4 171 1.1 132 24,829
July 1 175 4 171 1.1 132 24,829
2 175 4 171 1.1 132 24,829
3 175 4 171 1.1 132 24,829
4 175 4 171 1.1 132 24,829
August 1 175 4 171 1.1 132 24,829
2 175 4 171 1.1 132 24,829
3 175 4 171 1.1 132 24,829
4 175 4 171 1.1 132 24,829
Septembe
r 1 175 4 171 1.1 132 24,829
2 175 4 171 1.1 132 24,829
3 175 4 171 1.1 132 24,829
4 175 4 171 1.1 132 24,829
October 1 175 4 171 1.1 132 24,829
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ASIATECH COLLEGE
2 175 4 171 1.1 132 24829

3 175 4 171 1.1 132 24,829
4 175 4 171 1.1 132 24,829
November 1 467 9 171 1.1 132 24,829
2 467 9 171 1.1 132 24,829
3 467 9 171 1.1 132 24,829
4 189 4 171 1.1 132 24,829
December 1 189 4 171 1.1 132 24,829
2 189 4 458 1.1 143 71,990
3 189 4 458 1.1 143 71,990
4 189 4 458 1.1 143 71,990
TOTAL 10,399 208 10,104 P1,514,938
Schedule 2A.d Sales Projection of Dressed Chicken (Year 4)

No. of Weight
Heads Mortalit for Head per Total Sales
Month Week Procured y (2%) Disposal (kilo) Kilo per Week
January 1 189 4 185 1.1 P139 P28,287
2 189 4 185 1.1 139 28,287
3 189 4 185 1.1 139 28,287
4 315 6 185 1.1 139 28,287
February 1 189 4 185 1.1 139 28,287
2 189 4 185 1.1 150 30,561
3 189 4 185 1.1 150 30,561
4 315 6 185 1.1 150 30,561
March 1 315 6 309 1.1 150 50,936
2 315 6 185 1.1 150 30,561
3 315 6 185 1.1 150 30,561
4 315 6 185 1.1 150 30,561
April 1 315 6 309 1.1 150 50,936
2 315 6 309 1.1 150 50,985
3 315 6 309 1.1 150 50,985
4 189 4 309 1.1 150 50,985
May 1 189 4 309 1.1 150 50,985
2 189 4 309 1.1 150 50,985
3 189 4 309 1.1 150 50,985
4 189 4 309 1.1 150 50,985
June 1 189 4 185 1.1 139 28,287
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ASIATECH COLLEGE
2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30,561
4 189 4 185 1.1 150 30,561
July 1 189 4 185 1.1 150 30,561
2 189 4 185 1.1 150 30,561
3 189 4 185 1.1 150 30561
4 189 4 185 1.1 150 30,561
August 1 189 4 185 1.1 150 30,561
2 189 4 185 1.1 150 30,561
3 189 4 185 1.1 150 30,561
4 189 4 185 1.1 150 30,561
Septembe
r 1 189 4 185 1.1 150 30,561
2 189 4 185 1.1 150 30,561
3 189 4 185 1.1 150 30,561
4 189 4 185 1.1 150 30,561
October 1 189 4 185 1.1 150 30,561
2 189 4 185 1.1 150 30,561
3 189 4 185 1.1 150 30,561
4 189 4 185 1.1 150 30,561
November 1 504 10 185 1.1 150 30,561
2 504 10 185 1.1 150 30,561
3 504 10 185 1.1 150 30,561
4 204 4 185 1.1 150 30,561
December 1 204 4 185 1.1 150 30,561
2 204 4 494 1.1 150 81,510
3 204 4 494 1.1 150 81,510
4 204 4 494 1.1 150 81,510
TOTAL 11,226 225 10,929 P1,789,854
Schedule 2A.e Sales Projection of Dressed Chicken (Year 5)

No. of Weight
January 1 204 4 200 1.1 P146 P32,120
2 204 4 200 1.1 146 32,120
3 204 4 200 1.1 146 32,120
4 340 7 200 1.1 146 32,120
February 1 204 4 200 1.1 146 32,120
57
ASIATECH COLLEGE
2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107
4 340 7 200 1.1 146 32,107
March 1 340 7 333 1.1 158 57,910
2 340 7 200 1.1 146 32,107
3 340 7 200 1.1 146 32,107
4 340 7 200 1.1 146 32,107
April 1 340 7 333 1.1 158 57,910
2 340 7 333 1.1 158 57,910
3 340 7 333 1.1 158 57,910
4 204 4 333 1.1 158 57,910
May 1 204 4 333 1.1 158 57,910
2 204 4 333 1.1 158 57,910
3 204 4 333 1.1 158 57,910
4 204 4 333 1.1 158 57,910
June 1 204 4 200 1.1 146 32,107
2 204 4 200 1.1 146 32,107
3 204 4 200 1.1 146 32,107
4 204 4 200 1.1 146 32,107
July 1 204 4 200 1.1 146 32,107
2 204 4 200 1.1 146 32,107
3 204 4 200 1.1 146 32,107
4 204 4 200 1.1 146 32,107
August 1 204 4 200 1.1 146 32,107
2 204 4 200 1.1 146 32,107
3 204 4 200 1.1 146 32,107
4 204 4 200 1.1 146 32,107
September 1 204 4 200 1.1 146 32,107
2 204 4 200 1.1 146 32,107
3 204 4 200 1.1 146 32,107
4 204 4 200 1.1 146 32,107
October 1 204 4 200 1.1 146 32,107
2 204 4 200 1.1 146 32,107
3 204 4 200 1.1 146 32,107
4 204 4 200 1.1 146 32,107
November 1 544 11 200 1.1 146 32,107
2 544 11 200 1.1 146 32,107
3 544 11 200 1.1 146 32,107
4 220 4 200 1.1 146 32,107
December 1 220 4 200 1.1 146 32,107
2 220 4 533 1.1 158 92,656
3 220 4 533 1.1 158 92,656
58
ASIATECH COLLEGE
4 220 4 533 1.1 158 92,656

TOTAL 12,116 242 11,796 P1,955,082
Schedule 2B.a Sales Projection of By-Products (Year 1)
Total
Ave. Weight in Kilos
No. of every Yield for Price per
Heads Sold head(Kilos) the Year Kilo Sales
Intestines 7,938 0.15 1,190.7 P50 P59,535
Liver 7,938 0.05 396.9 90 35,721
Feet 7,938 0.05 396.9 60 23,814
Head 7,938 0.05 396.9 40 15,876
Neck 7,938 0.05 396.9 70 27,783
Gizzard 7,938 0.05 396.9 80 31,752
TOTAL 47,628 0.40 3,175.2 194,481
Schedule 2B.b Sales Projection of By-Products (Year 2)

Total
Kilos
Ave. Weight in Yield
No. of every head for the Price per
Heads Sold (Kilos) Year Kilo Sales
Intestines 9,368 0.15 1,405.21 P52.50 P73,773.32
Liver 9,368 0.05 468.402 94.50 44,263.99
Feet 9,368 0.05 468.402 63.00 29,509.33
Head 9,368 0.05 468.402 42.00 19,672.88
Neck 9,368 0.05 468.402 73.50 34,427.55
Gizzard 9,368 0.05 468.402 84.00 39,345.77
P240,99
TOTAL 66,208 0.40 3,747.22 2.80
59
ASIATECH COLLEGE
Schedule 2B.c Sales Projection of By-Products (Year 3)

Total
Kilos
Yield
No. of Ave. Weight for the Price per
Heads Sold (Kilos) Year Kilo Sales
Intestines 10,104 0.15 1,515.66 P55.125 P83,550.92
Liver 10,104 0.05 505.221 99.225 50,130.55
Feet 10,104 0.05 505.221 66.150 33,420.37
Head 10,104 0.05 505.221 44.100 22,280.25
Neck 10,104 0.05 505.221 77.175 38,990.43
Gizzard 10,104 0.05 505.221 88.200 44,560.49
TOTAL 60,624 0.40 4,041.77 P272,933.00
Schedule 2B.d Sales Projection of By-Products (Year 4)

Total
Kilos
No. of Ave. Weight Yield for Price per
Heads Sold (Kilos) the Year Kilo Sales
Intestines 10,929 0.15 1,639.35 P57.88125 P94,887.63
Liver 10,929 0.05 546.45 104.18630 56,932.58
Feet 10,929 0.05 546.45 69.45750 37,955.05
Head 10,929 0.05 546.45 46.30500 25,303.37
Neck 10,929 0.05 546.45 81.03375 44,280.89
Gizzard 10,929 0.05 546.45 92.61000 50,606.73
P309,966.2
TOTAL 65,574 0.40 4,371.60 0
Schedule 2B.e Sales Projection of By-Products (Year 5)
60
ASIATECH COLLEGE
Total Kilos
Ave. Yield for
No. of Weight the Year Price per
Heads Sold (Kilos) Kilo Sales
P107,532
Intestines 11,796 0.15 1,769.350 P 60.77531 .90
Liver 11,796 0.05 589.784 109.3956 64,519.75
Feet 11,796 0.05 589.784 72.93038 43,013.17
Head 11,796 0.05 589.784 48.62025 28,675.45
Neck 11,796 0.05 589.784 85.08544 50,182.03
Gizzard 11,796 0.05 589.784 97.24050 57,350.89
TOTAL 70,776 0.40 4,718.27 351,274.20
Schedule 3 Property, Plant and Equipment (5 Years)

Land
250,000 P275,000 P300,000 P325,000 P350,000 P375,000
(Exhibit 5)
Building
80,809 72,728 64,647 56,566 48,485 40,405
(Exhibit 6)
Equipmen
t
(Exhibit 7) 83,870 72,210 60,551 48,891 37,231 25,571
Furniture
and
Fixture
(Exhibit 8) 19,299 15,439 11,579 7,720 3,860 0
Delivery
Vehicle
(Exhibit 9) 150,000 135,000 120,000 105,000 90,000 75,000
TOTAL P583,978 P570,378 P556,777 P543,177 P529,576 P515,976
Schedule 4 Working Capital (3 months)
61
ASIATECH COLLEGE
Amount
2,400 heads(chicks) @ P25
(Based on Procurement-Schedule 2) P60,000
Feeds for 2400 heads:
Chick Booster ( Schedule 32B ) 12,150
Broiler Starter ( Schedule 32B ) 18,000
Broiler Finisher ( Schedule 32B ) 15,000
Vaccine for 2400 heads

New Castle Disease Vaccine (Exhibit 13C) 7,200
Infectious Bursai Disease Vaccine (Exhibit 13C) 9,600
Labor (Exhibit 15B.1) 77,040

Delivery Expense ( Exhibit 16B ) 3,000
Miscellaneous & Supplies Expense ( Exhibit 17B ) 2,833
Utilities (Exhibit 18C ) 13,497
TOTAL P218,370
Schedule 5 Pre-Operating Cost

Amount
Feasibility Study Expense (Exhibit 19) P1,500
Technical Layout 1,500
Advertising Expense (Exhibit 20) 1,050
Permits and Licenses (Exhibit 21) 3,602
TOTAL P7,652
Schedule 6 Projected Sales (5 Years)

Year Sales-Dressed Sales -By-Products Total Sales
Chicken (Schedule 2B)
(Schedule 2A)
Schedule 7 Cost of Sales (5 Years)
1 P 1,085,007.00
Year 1 YearP2194,481.00
Year 3 P 1,279,488.00
Year 4 Year 5
2 P
Direct 1,342,593.00
403,350 P 240,993.00
495,969 557,484 P 1,583,586.00
628,629 707,515
3 P 1,514,938.00 P 272,933.00 P 1,787,871.00
4 Materials
P 1,789,854.00 P 309,966.00 P 2,099,820.00
5 P 1,955,082.00
(Exhibit 23) P 351,274.00 P 2,306,356.00
62
ASIATECH COLLEGE
Direct Labor
(Exhibit 15A) 237,942 237,942 237,942 237,942 237,942
Overhead
(Exhibit 24) 315,347 332,535 337,515 371,133 392,547
Total 956,639 1,066,446 1,132,940 1,237,704 1,338,003
Loss due to
Death of Chicks
(Exhibit 25) 5,898 6,721 7,642 8,635 9,703
TOTAL
COST OF P1,347,70
SALES P962,537 P1,073,167 P1,140,582 P1,246,339 6
Schedule 8 -Selling and Administrative Expenses (5 Years)

11000 12000 12000 12000 12000
Selling Expense (Exhibit 26)
6679 6991 7319 7662 8020
Utilities Expense (Exhibit 18A)
Miscellaneous and Supplies 3483 3646 3817 3995 4182
Expense (Exhibit 17)
Depreciation Expense-Office 11660 11660 11660 11660 11660
Equipment (Exhibit 27)
Depreciation Expense 3860 3860 3860 3860 3860
Furniture (Exhibit 28)
Depreciation Expense- Delivery 15000 15000 15000 15000 15000
Vehicle (Exhibit 29)
Depreciation Expense- Building 8081 8081 8081 8081 8081
(Exhibit 30)
Amortization of Pre-Operating 1530 1530 1530 1530 1530
cost (Exhibit 31)
2000 2000 2000 2000 2000
Repairs and Maintenance
5000 5000 5000 5000 5000
Other Expenses
Permits and Licenses 3602 3602 3602 3602 3602
(Exhibit 21)
71895 73370 73868 74390 74935
Total
63
ASIATECH COLLEGE
Schedule 9 Interest Expense (5 Years)

Total
Year Principal Interest Payment Balance
0 P205,000
1 P41,000 P16,400 P57,400 164,000
2 41,000 13,120 54,120 123,000
3 41,000 9,840 50,840 82,000
4 41,000 6,560 47,560 41,000
5 41,000 3,280 44,280 0
Amount of Loan 205,000
Interest rate 8%, diminishing balance
Term 5 years
Schedule 10A Income Taxes

Earnings Less: Basic Tax
before Personal TAXABLE Due
taxes Exemption INCOME (a) (b) (a +b)
Year
P228,656 178,656 22500 9664 P32,164
1 P50,000
Year
423,929 373,929 50000 37179 87,179
2 50,000
Year 12500
563,580 513,580 0 94074 219,074
3 50,000
Year 12500
772,532 722,532 0 87210 212,210
4 50,000
Year 12500 12173
880,435 830,435 0 9 246,739
5 50,000
64
ASIATECH COLLEGE
Schedule 10B Graduated Tax Table

Taxable Income Tax Due
Not over P 10,000 5%

Over P10,000 but not over 10
P30,000 P 500 + % of excess over P 10,000
15
Over 30,000 but not over 70,000 2,500 + % of excess over P 30,000
Over 70,000 but not over 20
140,000 8,500 + % of excess over P 70,000
250,000 22,500 + % of excess over P 140,000
500,000 50,000 + % of excess over P 250,000
32
Over 500,00 125,000 + % of excess over P 500,000
Schedule 11A Inventory (5 Years)

Chicks on hand (Schedule 11B) 810 875 945 1,020 1,100
Multiply by: Cost per Head P25 P26 P28 P29 P30
Total 20,250 22,969 26,044 29,519 33,429
Feeds
Chick booster (Schedule 11B) 4,101 4,637 5,242 5,923 6,687
Broiler starter (Schedule 11B) 3,645 4,122 4,660 5,265 5,944
Broiler Finisher (Schedule 11B) 1,013 1,145 1,294 1,463 1,651
Vaccine
New Castle Disease (NCD 1,312.5
Vaccine) (No. of Heads x 1.5) 1,215 0 1,417.5 1,530 1,650
Infectious Bursai Disease Vaccine
(No. of Heads x 2) 1,620 1,750 1,890 2,040 2,200
TOTAL P31,84 P35,935 P40,54 P45,74 P51,56
65
ASIATECH COLLEGE
3 8 0 0
Schedule 11B Chicks on Hand (Inventory for 5 Years)

Year 1
No. of Chick Broiler Broiler
Week Heads Booster Starter Finisher
Novembe
r
4 162 P820 P1,215 P1,013
December 1 162 820 1,215
2 162 820 1,215
3 162 820
4 162 820
TOTAL 810 P4,101 P3,645 P1,013
Year 2
Novembe
r
4 175 P927 P1,374 P1,145
December 1 175 927 1,374
2 175 927 1,374
3 175 927
4 175 927
TOTAL 875 P4,637 P4,122 P1,145
Year 3
Novembe
r
4 189 P1,048 P1,553 P1,294
December 1 189 1,048 1,553
2 189 1,048 1,553
66
ASIATECH COLLEGE
3 189 1,048
4 189 1,048
TOTAL 945 P5,242 P4,660 P1,294
Year 4
Novembe
r
4 204 P1,185 P1,755 P1,463
December 1 204 1,185 1,755
2 204 1,185 1,755
3 204 1,185
4 204 1,185
TOTAL 1,020 P5,923 P5,265 P1,463
Year 5
Novembe
r
4 220 P1,337 P1,981 P1,651
December 1 220 1,337 1,981
2 220 1,337 1,981
3 220 1,337
4 220 1,337
TOTAL 1,100 P6,687 P5,944 P1,651
Schedule 12 Capital (5 Years)

P605,00
Beginning Capital 0 P605,000 P630,000 P655,000 P680,000 P705,000
Increase in
Capital (Due to
the increase in
land) 25,000 25,000 25,000 25,000 25,000
P630,00 P655,00 P680,00 P705,00 P730,00
NEW CAPITAL 0 0 0 0 0
67
ASIATECH COLLEGE
EXHIBITS
Exhibit 1 Price Schedule (5 years)

For regular P120 P126 P132 P139 P146
For peak
season 130 137 143 150 158
Ave. Inflation rate is 5% per year (based on PSA)
Exhibit 2 Canvass of Supplies

SUPPLIES GAISANO GIANS HERCYLS BANDIOLA CHARLIE ROBERT
GRAND MINI TRADING
MALL OF MART
ANTIQUE
Record P105; P85
Book 89
(500
pages)
Ballpen 11 12 P12
(Faber
Castle)
Receipt:
Small 19.75
Big 44
Daily Time
Record
Calculator: 660
Scientific 465
Ordinary
Folders: 5
Long 4.75
S
68
ASIATECH COLLEGE
hort
Stapler 78 40
White Ink: 35 69
Big 14
Small
Yellow Pad 24.75; 50; 25
29.75 26.50;
16
Paper Clip 15
Paper 30 3; 4; 5
Clamp
Broom: P130
Soft broom
Br
oomstick
Dustpan 50
Trashcan: 750
Large 160
Medium
Tub: Large 260
M 220
edium 160
Small
Bucket: 160
Medium 250
Large(24L)
Spade P520 P450
Exhibit 3 Canvass of Furniture and Fixtures

Furniture& Gaisano Grand Bandiola Gella General Rose
Fixtures Mall of Plastic Goods Merchandising Furniture
Antique
Monoblock P350 P300
Chair
69
ASIATECH COLLEGE
Wooden Table 3,299 P3,500

Filing Cabinet P14,500 15,000
70
ASIATECH COLLEGE
Exhibit 4 Canvass of Equipment
Equipment Bandiola Charlie Gaisano Pacifica Botika Olx. Dinglasan Robert Aton Hercyls Susana
Plastic Trading Grand Agri- Dela Com Furniture Trading Marketing Minimart Marketing
Goods Mall of Vet Serna
Antique Supplies
Knives P130
(large)
Weighing P1,980 P930
scale (60 (15
kilo) kilo)
P980
(10 P1,129
kilo) (20
kilo)
Kawa P2,900
(extra
size)
P1,800
(size
no.1)
P1,300
71
ASIATECH COLLEGE
(size
no.2)
P1,200
(size
no.3)
Plucker P19,000
Artificial P150
Brooder
Freezer P15,000
Chopping P700
Board
Waterers P110
plastic (big)
P55
(small)
Shovel P450
Wheel P2,195
borrow
Bucket P250
Tub/Basin P260
Generator P15,000
Calculator P465
Stapler P40
72
ASIATECH COLLEGE
73
ASIATECH COLLEGE
Exhibit 5 Land (5 years)

Land P250,00 P250,000 P275,000 P300,000 P325,000 P350,000
0
Increase in
Value of 25,000 25,000 25,000 25,000 25,000
Land
New Value
P275,000 P300,000 P325,000 P350,000 P375,000
of Land
As assess by the local assessor of Bugasong
Exhibit 6A Detailed Cost of Building

Expenses Amount
Labor (30 days, 3 person, P150 per day) P13,500
Hallow blocks (500 blocks x P25) 12,500
Cement (10 sacks x P450) 4,500
Iron Bars 1,200
Steel thrust 5,000
Galvanize Iron 12,000
Bamboo Poles (50poles x P40) 2,000
Bamboo Sheets (30sheets x P400) 12,000
Supplies 5,000
Nipa (20pcs x P300) 6,000
Electrical Fixtures 5,000
Food Allowance 2,109
TOTAL P80,809
Exhibit 6B Cost of Building (5 Years)

Building P80,809 P80,809 P80,809 P80,809 P80,809 P80,809
Less: 0 8,081 16,162 24,243 32,324 40,405
Accumulate
74
ASIATECH COLLEGE
d
Depreciation
(Exhibit 30)
Carrying
P80,809 P72,728 P64,647 P56,566 P48,485 P40,405
Amount
Exhibit 7 Cost of Equipment (5 Years)

Equipment
(Exhibit 27) P83,870 P83,870 P83,870 P83,870 P83,870 P83,870
Less: Accumulated
Depreciation
(Exhibit 27) 0 11,660 23,319 34,979 46,639 58,299
P37,23 P25,57
Carrying Amount P83,870 P72,210 P60,551 P48,891 1 1
Exhibit 8 Cost of Furniture and Fixtures (5 Years)

Furniture and Fixture P19,29 P19,29 P19,29
(Exhibit 28) P19,299 P19,299 P19,299 9 9 9
Less: Accumulated
Depreciation P19,29
(Exhibit 28) 0 3,860 7,720 11,579 15,439 9
P15,43
Carrying Amount P19,299 9 P11,579 P7,720 P3,860 0
75
ASIATECH COLLEGE
Exhibit 9 Cost of Delivery Vehicle (5 Years)

Delivery
Vehicle (Exhibit P150,00 P150,00
29) P150,000 P150,000 P150,000 P150,000 0 0
Less:
Accumulated
Depreciation
(Exhibit 29) 0 15,000 30,000 45,000 60,000 75,000
Carrying P135,00 P120,00 P105,00
Amount P150,000 0 0 0 P90,000 P75,000
Exhibit 10A Cost of Chick Booster (5 Years)

No. of Heads Sold
(Schedule 2) 7,938 9,368 10,104 10,929 11,796
Divided by Average
No. of Heads per
Sack (Exhibit 32) 800 800 800 800 800
Total 10 12 13 14 15
Multiply by: No. of
Sacks per 800
heads (Exhibit 32) 3 3 3 3 3
Total 30 35 38 41 44
Multiply by: Cost
per Sack
(Exhibit 32) P1,350 P1,413 P1,479 P1,549 P1,621
TOTAL COST OF P40,18
FEEDS 6 P49,645 P56,051 P63,465 P71,706
Exhibit 10B - Cost of Feeds Consumed (Lost Heads)

76
ASIATECH COLLEGE
Lost Heads 175 191 208 225 242

Divided by: Ave. no of heads
per 3 sack 800 800 800 800 800
0.22 0.24 0.26 0.28 0.30
Multiply by: No. of sacks per
800 heads 3 3 3 3 3
0.66 0.72 0.78 0.84 0.91
Multiply by Cost per sack* P1,350 P1,413 P1,479 P1,549 P1,621
Total cost of feeds consumed P886 P1,012 P1,154 P1,307 P1,471
Exhibit 10C Cost of Vaccination (Lost Heads)

NCD
Lost Heads 175 191 208 225 242
Average
cost per
head P1.50 P1.50 P1.50 P1.50 P1.50
TOTAL
COST-
NCD P263 P287 P312 P338 P363
IBD
Lost Heads 175 191 208 225 242
Average
cost per
head P2.00 P2.00 P2.00 P2.00 P2.00
TOTAL
COST-IBD P350 P382 P416 P450 P484
Exhibit 11 Broiler Starter (5 Years)

No. of Heads Sold 7,938 9,368 10,104 10,929 11,796
77
ASIATECH COLLEGE
(Schedule 2)
Divided by Average
No. of Heads per Sack
(Exhibit 32) 800 800 800 800 800
Total 10 12 13 14 15
Multiply by: No of
Sacks per 800 heads
(Exhibit 32) 4 4 4 4 4
Total 40 47 51 55 59
Multiply by: Cost per
Sack (Exhibit 32) P1,500 P1,570 P1,644 P1,721 P1,801
TOTAL COST OF P73,54
FEEDS P59,535 8 P83,039 P94,023 P106,231
Exhibit 12 Broiler Finisher (5 Years)

No. of Heads Sold
(Schedule 2) 7,938 9,368 10,104 10,929 11,796
Divided by Average
No. of Heads per Sack
(Exhibit 32) 800 800 800 800 800
Total 10 12 13 14 15
Multiply by: No of
Sacks per 800 heads
(Exhibit 32) 4 4 4 4 4
Total 40 47 51 55 59
Sack (Exhibit 32) P1,250 P1,309 P1,370 P1,434 P1,501
TOTAL COST OF
FEEDS P49,613 P61,290 P69,199 P78,352 P88,526
78
ASIATECH COLLEGE
Exhibit 13A Cost of New Castle Disease Vaccine

No. of
Heads sold
(Schedule
2) 7,938 9,368 9,368 10,929 11,796
Multiply by:
Average
cost per
head
(Exhibit
13B) P1.50 P1.50 P1.50 P1.50 P1.50
Multiply by:
no. of times
to take
vaccination
per heads
(Exhibit
13B) 2 2 2 2 2
TOTAL P23,814 P28,104 P28,104 P32,787 P35,388
Exhibit 13B Vaccination Schedule

Vaccine Schedule Cost per Head
Vaccine P 2.00
Infectious Bursai Disease
Vaccine
Vaccine P 2.00
79
ASIATECH COLLEGE
Vaccine
Exhibit 13C -Schedule of Vaccine for 3 Months

NCD IBD
Heads sold 2,400 2,400
Multiply by: Average cost per head P1.5 P2.00
Multipy by: no. of times to take vaccination per heads

2 2
Total P7,200 P9,600
Exhibit 14 Cost of Infectious Bursai Disease Vaccine

No. of
Heads sold
(Schedule
2) 7,938 9,368 10,104 10,929 11,796
Multiply by:
Average
cost per
head
(Exhibit
13B) P2.00 P2.00 P2.00 P2.00 P2.00
Multiply by:
no. of times
to take
vaccination
per heads
(Exhibit
13B) 2 2 2 2 2
80
ASIATECH COLLEGE
TOTAL P31,752 P37,472 P40,416 P43,716 P47,184
Exhibit 15A Labor Schedule

Direct Labor
Caretaker/Maintenance
Staff (Exhibit 15B) P72,152 P72,152 P72,152 P72,152 P72,152
Operational Staff (Exhibit

15B) 78,354 78,354 78,354 78,354 78,354
Operational Staff/Driver
(Exhibit 15B) 87,436 87,436 87,436 87,436 87,436
Total Direct Labor 237,942 237,942 237,942 237,942 237,942

Indirect Labor
Owner/Manager (Exhibit
15B) 96,960 96,960 96,960 96,960 96,960
TOTAL P334,902 P334,902 P334,902 P334,902 P334,902
Exhibit 15B Compensation Package

Monthly Philhealt
salary SSS h Monthly Annual
Owner/
Manager P7,440.00 P552.50 P87.50 P8,080.00 P96,960.00
Caretaker/ 5,520.00 405.20 87.50 6,012.70 72,152.40
81
ASIATECH COLLEGE
Maintenance
Operational Staff 6,000.00 442.00 87.50 6,529.50 78,354.00
Operational Staff/
Driver 6,720.00 478.80 87.50 7,286.30 87,435.60
P25,680.0 P27,908.5 P334,902.0
TOTAL 0 P1,878.50 P350.00 0 0
Exhibit 15B.1 Labour for 3 Months

Monthly salary
Owner/Manager 7,440.00
Caretaker/Maintenance 5,520.00
Operational Staff 6,000.00
Operational Staff/Driver 6,720.00
Total 25,680.00
Multiplied by 3 Months 3
Total Labour for 3 Months 77040
Exhibit 16A Delivery Schedule

Cost of gasoline per scheduled delivery Amount
Weekly P 250.00
Monthly P1,000.00
Exhibit 16B Delivery Expense for 3 Months

Gasoline Schedule
Weekly Monthly 3 Months
Cost of gasoline as scheduled: 250 1000 3000
Exhibit 17A Miscellaneous and Supplies Expense (5 Years)

Qua Unit
Unit ntity Cost Year 1 Year 2 Year 3 Year 4 Year 5
Folder Pieces 20 P5.00 P100 P105 P110 P115 P120
82
ASIATECH COLLEGE
Record
Book Item 5 85.00 425 445 466 488 510
Ballpen Item 10 11.00 110 115 121 126 132

2, 2,
Receipts Item 50 200 303 2,411 2,524 2,642
Correcti
on Fluid Item 2 14.00 28 29 31 32 34
Plastic Item 1 100.00 100 105 110 115 120

Waste
Can Item 1 160.00 160 167 175 184 192
Broom Item 2 130.00 260 272 285 298 312
Dustpan Item 2 50.00 100 105 110 115 120

TOTAL P3,483 P3,646 P3,817 P3,995 P4,182
Exhibit 17B Miscellaneous and Supplies Expense for 3 Months

Unit Quantity Unit Cost Year 1
Folder Pieces 19 5.00 95
Record Book Item 3 85.00 255
Ballpen Item 9 11.00 99
Receipts Item 45 44.00 1,980
Correction Fluid Item 1 14.00 14
Plastic Item 1 100.00 100
Waste Can Item 1 160.00 160
Broom Item 1 130.00 130
Dustpan Item 1 50.00 50
TOTAL 2,883
Exhibit 18A Utilities Cost (5 Years)
83
ASIATECH COLLEGE

Water P6,000 P6,281 P6,575 P6,882 P7,205
212,387 229,294 233,980 267,291 288,382
Electricity (Exhibit 33)
For Overhead 218,387 235,575 240,555 274,173 295,587
691 723 757 793 830

Electricity (Exhibit 34)
5,988 6,268 6,562 6,869 7,190
Communication
For Administrative/operating
6,679 6,991 7,319 7,662 8,020
expense
225,066 242,566 247,873 281,835 303,607

TOTAL
Exhibit 18B Utilities Monthly Expense
Monthl Monthly
Utilities Rate Supplier
y Usage cost
Bugasong
22.72 P 22 per
Water P500 Water
cu. m cu. m.
District
P 10.30
328.03
Electricity per 3,378.71 ANTECO
kilowatt
kilowatt
Transportation 1,000
Communication PLAN 499 Globe
TOTAL P5,377.71
84
ASIATECH COLLEGE
Exhibit 18C Utilities Expense for Working Capital (3 months)

Monthly
Utilities Rate Monthly cost Supplier
Usage
P 22 per cu.
Water 22.72 cu. m P500 LOWA
m.
242.71 P 10.30 per
Electricity 2,500 ANTECO
kilowatt kilowatt
Transportation 1,000
Communication PLAN 499 Globe
Total 4,499
multiply by 3 months 3
Total P13,497
Exhibit 19 Feasibility Study Expense

Amount
Research Expense P450
Transportation 550
Printing 200
Binding 300
TOTAL P1,500
Exhibit 20A Advertising Expense

Price per unit No. of Pcs. Amount
Streamer 200 3 P600
Flier 1 450 450
TOTAL P1,050
Exhibit 20B Canvass of Promotional Materials

Eye Tres Barte.com Boytex Angels
Catcher Marias Printing Printing
Computer Computer Services Shop
85
ASIATECH COLLEGE
Shop Shop
Streamer P200 P220
(2x1m)
Flier P1.00 P1.00 P2.00
(8.5x5.5 in)
Exhibit 21 Permits and Licenses

Amount
Annual Registration (BIR) P500
DTI 300
Mayor's Permit 2,000
Business Clearance to Operate 30
Police Clearance 75
Sedula 22
Fire Clearance 50
Sanitary Permit 125
Environmental Compliance Certificate (DENR) 500
TOTAL P3,602
Exhibit 22 Non Cash Equity Contribution

Amount
Vehicle P150,000
Land 250,000
TOTAL 400,000
Exhibit 23 Direct Materials (5 Years)

Heads sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796
Head* P25 P26 P28 P29 P30
Total 198,450 245,910 278,466 316,285 358,480
Feeds
86
ASIATECH COLLEGE
Chick Booster
(Exhibit 10) 40,186 49,645 56,051 63,465 71,706
Broiler Starter
(Exhibit 11) 59,535 73,548 83,039 94,023 106,231
Broiler finisher
(Exhibit 12) 49,613 61,290 69,199 78,352 88,526
Vaccine:
New Castle Disease
(NCD Vaccine) (Exhibit
13) 23,814 28,104 30,312 32,787 35,388
Vaccine (Exhibit 14) 31,752 37,472 40,416 43,716 47,184
TOTAL P403,350 P495,969 P557484 P628,629 P707,515
Exhibit 24 Overhead (5 Years)

Owner/Manager
(Exhibit 15A) P96,960.00 P96,960.00 P96,960.00 P96,960.00 P96,960.00
Utilities
218,387 235,575 240,555 274,173 295,587
(Exhibit 18A)
P315,347 P332,535 P337,515 P371,133 P392,547
TOTAL
Exhibit 25 Mortality Schedule (5 Years)

Lost heads (Schedule 2) 175 191 208 225 242
Multiply by: Cost per Head* P25 P26 P28 P29 P30
Total 4,375 5,014 5,732 6,512 7,354
Feeds
Chick Booster (Exhibit 10B) 886 1012 1154 1307 1471
Broiler Starter
Broiler Finisher
87
ASIATECH COLLEGE
Vaccine:
New Castle Disease (NCD Vaccine) 263 287 312 338 363
Infectious Bursai Disease Vaccine 350 382 416 450 484
P5,89 P6,72 P7,64
TOTAL 8 1 2 P8,635 P9,703
Exhibit 26 Selling Expense (5 Years)

Transportation 11,000* 12000 12000 12000 12000
* 11 months of delivery (P1,000 x11)
Gasoline Schedule
Monthl
Weekly y Yearly
Cost of gasoline as scheduled: 250 1000 12000
Exhibit 27 Depreciation of Equipment

Total Estimated Annual Depreciation
Equipment Cost Useful Life Expense
Knives P390 5 P78.00
Weighing
Scale 3,960 5 792.00
Kawa 2,900 5 580.00
Plucker 19,000 10 1,900.00
Artificial
Brooder 750 5 150.00
30,000.0
Freezer 0 7 4,285.71
Chopping 700.0
Board 0 5 140.00
2,750.0
Waterers 0 5 550.00
Shovel 900.0 5 180.00
88
ASIATECH COLLEGE
0
Wheel 2,195.0
borrow 0 5 439.00
1,250.0
Bucket 0 5 250.00
15,000.0
Generator 0 10 1,500.00
2,600.0
Tub 0 5 520.00
82,395.0
Relating to Operation 0 11,364.71
1,395.0
Calculator 0 5 279.00
80.0
Staplers 0 5 16.00
1,475.0
Office Equipment 0 295.00
83,870.0
TOTAL 0 11,660
Exhibit 28 Depreciation Expense of Furniture and Fixtures

Estimated
Furniture Total Cost Useful Life Annual Depreciation
Monoblock Chair P1,500 5 P300
Wooden Table 3,299 5 660
Filing Cabinet 14,500 5 2,900
TOTAL P19,299 P3,860
Exhibit 29 Depreciation Expense of Delivery Vehicle
Total Cost Useful life Annual Depreciation
89
ASIATECH COLLEGE
Delivery Vehicle P150,000 10 P15,000
Exhibit 30 Depreciation Expense of Building

Annual
Building Total Cost Useful life
Depreciation
Poultry house P80,809 10 P8,081
Exhibit 31 Amortization of Pre-Operating Costs (5 Years)

Amortization Carrying Amount
Year 0 P7,652.00
Year 1 P1,530.40 6,121.60
Year 2 1,530.40 4,591.20
Year 3 1,530.40 3,060.80
Year 4 1,530.40 1,530.40
Year 5 1,530.40 0
Exhibit 32A Feeding Schedule

Age of Type of feeds Consumption Cost per Sack Total Cost
chicks in per 800
days chicks
0-14 Chick Booster 3 sacks/800 heads P1,350.00 P 4,050.00
15-28 Broiler Starter 4 sacks/800 P1,500.00 P 6,000.00

heads
90
29-45 Broiler Finisher 4 sacks/800 P1,250.00 P 5000.00
heads
ASIATECH COLLEGE
Exhibit 32B Cost of feeds for 3 Months
Broiler Broiler
Chick Booster Starter Finisher
No. of Heads Sold (Schedule 2) 2,400 2,400 2,400
Divided by Average No. of
Heads per Sack (Exhibit 32A) 800 800 800
Total 3 3 3
Multiply by: No of Sacks per
800 heads (Exhibit 32A) 3 4 4
Total 9 12 12
Multiply by: Cost per Sack
(Exhibit 32A) 1,350 1,500 1,250
TOTAL COST OF FEEDS 12,150 18,000 15,000
Exhibit 33 A Year 1
Total Total
Total Total
No. of Usage Usage
Bulb Total Usage Usage
hours kW- -kW-
Age (watts Days of kW- (150 kW-(400
in (250 (162
) Usage heads; 31 heads;3
light heads;9 heads;5
batches) batches)
batches) batches)
0-3 23 125 3 1,604.25 776.25 414.00 279.45
4-7 18 125 4 1,674.00 810.00 432.00 291.60
8-14 14 125 7 2,278.50 1,102.50 588.00 396.90
15-22 16 125 8 2,976.00 1,440.00 768.00 518.40
23-27 18 125 5 2,092.50 1,012.50 540.00 364.50
Total 10,625.25 5,141.25 2,742.00 1,850.85
Multipl
P10.30 P10.30 P10.30 P10.30
y (rate)
P109,440.1 P52,954.8 P28,242. P19,063.7
Total 0 8 6 6
TOTAL COST
PER YEAR P212,387
Exhibit 33B Year 2
91
ASIATECH COLLEGE
Total
Total Total Total
Usage
No. of Total Usage Usage- Usage-
Bulb -kW-
Age hours in Days of -kW-(270 kW-(432 kW-(175
(watts) (162
light Usage heads;9 head; 3 heads; 5
heads; 31
batches) batches) batches)
batches)
0-3 23 125 3 1,732.59 838.35 447.12 301.875
4-7 18 125 4 1,807.92 874.8 466.56 315
8-14 14 125 7 2,460.78 1,190.7 635.04 428.75
15-22 16 125 8 3,214.08 1,555.2 829.44 560
23-27 18 125 5 2,259.9 1,093.5 583.2 393.75
Total 11,475.27 55,52.55 2,961.36 1,999.375
Multipl
P10.3 P10.3 P10.3 P10.3
y (rate)
P118,195. P57,191.2 P30,502.0 P20,593.5
Total 3 7 1 6
TOTAL COST
PER YEAR P229,294
Exhibit 33C Year 3
92
ASIATECH COLLEGE
Total Total Total Total

No. of
Bulb Total Usage-kW- Usage- Usage Usage-
hours
Age (watts Days of (175 kW-(292 (467 kW-(189
in
) Usage heads; 31 heads; 9 heads;3 heads; 5
light
batches) batches) batches) batches)
0-3 23 125 3 1,871.625 906.66 483.345 326.025

4-7 18 125 4 1,953.00 946.08 378.27 340.20
8-14 14 125 7 2,658.25 1,287.72 294.21 463.05
15-22 16 125 8 3,472.00 1,681.92 336.24 604.80
23-27 18 125 5 2,441.25 1,182.60 378.27 425.25
Total 12,396.13 6,004.98 1,870.335 2,159.325
Multiply
P10.30 P10.30 P10.30 P10.30
(rate)
P127,680.1 P61,851.2 P19,264.4 P22,241.0
Total 0 9 5 5
TOTAL COST
PER YEAR P233,980
Exhibit 33D Year 4
Total Total Total
No. of Total Usage-
Total Usage- Usage- Usage-
hours Bulb kW-(162
Age Days of kW-(189 kW-(189 kW-(315
in (watts) heads; 31
Usage heads; 5 heads; 31 heads; 9
light batches)
0-3 23 125 3 1,732.59 326.025 2,021.355 978.075
4-7 18 125 4 1,807.92 340.2 2,109.24 1,020.6
8-14 14 125 7 2,460.78 463.05 2,870.91 1,389.15
15-22 16 125 8 3,214.08 604.8 3,749.76 1,814.4
23-27 18 125 5 2,259.9 425.25 2,636.55 1,275.75
Total 11,475.27 2,159.325 13,387.82 6,477.975
Multipl
P10.3 P10.3 P10.3 10.3
y
P22,241.0 P137,894. P66,723.1
Total P118,195.3 5 5 4
TOTAL COST
PER YEAR P267,291
93
ASIATECH COLLEGE
Exhibit 33E Year 5
Total Total Total

No. of Total
Total Usage- Usage- Usage-
hours Bulb Usage-kW-
Age Days of kW-(340 kW-(544 kW-(220
in (watts) (204 heads;
Usage heads;9 heads;3 heads;5
light 31 batches)
0-3 23 125 3 2,181.78 1,055.70 563.04 379.5

4-7 18 125 4 2,276.64 1,101.60 587.52 396.00
8-14 14 125 7 3,098.76 1,499.40 799.68 539.00
15-22 16 125 8 4,047.36 1,958.40 1,044.48 704.00
23-27 18 125 5 2,845.80 1,377.00 734.4 495.00
Total 14,450.34 6,992.10 3,729.12 2,513.50
Multiply P10.30 P10.30 P10.30 P10.30
P38,409.9
Total P148,838.50 P72,018.63 4 P25,889.05
TOTAL COST
PER YEAR P288,382
Exhibit 34 Year 1 Year 2 Year 3 Year 4 Year 5

Freezer P1,500 P1,570 P1,643 P1,720 P1,801
40 watts bulb 1,186 1,242 1,300 1,361 1,425
(Inside the
poultry
House)
Exhibit 35
40 watts 691 723 757 793 830
bulb( outside
the poultry
house)
Administrative
94
ASIATECH COLLEGE
Exhibit 35 Unit No. of Hours Usage per Total Usage Rate Total M
unit Co
Freezer 1 24 145.63 145.63 P10.30
40 watts bulb 4 24 28.8 115.2 10.30 1
(Inside the
poultry
House)
40 watts 4 14 16.8 67.2 10.30
bulb( outside
the poultry
house)
Total P3
95
ASIATECH COLLEGE
Exhibit 36 Technical Layout
96

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ASIATECH COLLEGE

Asia Technological School of Science and Arts

Livestock raising is a common business in our country. In this business, varieties

This feasibility project is primarily focused on the poultry production specifically

Bugasong and probably the neighboring municipalities in the near future.

The proposed project name is ChicN Poultry Business which will be

products with its superior taste and texture.

food stall and food catering businesses.

The proposed project is located at an accessible area. The place is

spacious and surrounded by trees which are appropriate to relieve the

the water supply.

up the project but a good gain can also be expected.

The project aims to contribute benefits to the people of Bugasong

chicken and its by-products in the market.

A. Name of the Business

The project is named ChicN Poultry Business as a short but catchy

term for our product which is chicken.

The project is located at Brgy. Sabang West, Bugasong, Antique. It is a

from neighboring houses to avoid disturbance and has an easy access of

transportation, electricity and water.

C. Vision, Mission and Objectives

ChicN Poultry Business aims to be the leading suppliers of dressed

chicken and its by-products in Bugasong, Antique as well as in the neighboring

ChicN Poultry Business is committed to promote good and high quality

Antique and other neighboring towns.

The objective of the proposed project is to promote convenient distribution

other food business establishments to satisfactorily avail their needs.

Indicatively, the project wants to attain the following:

a. To expand the operation of the business in the neighboring towns after 5

Bugasong and other neighboring towns.

A. Description of the Product

products such as gizzard, liver, intestines, feet, head and neck.

establishments such as restaurants, meat shops, barbeque stalls, roasted chicken

food stall and food catering businesses in the municipality of Bugasong.

demand and supply is located at Schedule 1.

In order to be competitive, the products will be sold based on market price

5% (Philippine Statistics Authority,Antique). The regular

seasons of dressed chicken and by-products are January,

their respective market price per kilo.

Product Price per kilo Price per kilo

(Regular Seasons) (Peak Seasons)

The products will be distributed through delivery. The market days in

The cost of delivery is shown below:

Cost of gasoline per Scheduled Amount

The promotional strategies to be used by Chic N Poultry Business are

through word of mouth, placement of streamers and distribution of fliers. The

be distributed to the business establishments such as restaurants, meat shops,

opening of the business.

The following table shows the cost of promotional materials:

Promotional Cost Number Total Cost Supplier

Material per of Pieces

(8.5 x 5.5 in) Computer Shop

Table 3. Cost of Promotional Materials

*The canvass of promotional materials is presented in Exhibit 20B.

Bugasong is 12% (Philippine Statistics Authority, 2014).

the inflation rate of prices is 5% (Philippine Statistics Authority, 2014).

The projected sales for five years are presented below:

Year Sales-Dressed Sales -By-Products Total Sales

Chicken (Schedule 2B)

A. Nature of the Product

Broiler chicken is a specialized breed of chicken intended to grow approximately

The business will focus on selling the Best Dressed

The major consumers of the product will be restaurants, market, various

institutions with food catering services, and high income households.