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CHAPTER I

PROJECT SUMMARY

Introduction

A patty, in American, Canadian, South African, Australian, and New Zealand

English, is a flattened, usually round, serving of ground meat or meat alternatives. The

patty itself can also be called a burger. We all know that patty is one of the unhealthy food

that we can find in the Philippines because it contains of so much calories, fats and sodium.

As a result, the proponents were able to do a healthier variety of a patty. And this patty is

made of tofu, to make it healthier than the original patty. However, a feasibility study needs

to be conducted to ensure the viability of the business.

This chapter is all about the introductory details of coming up with the enterprise

and will give an overview on what the project. This chapter contains the name of the

enterprise, location of the enterprise, logo of the enterprise, vision and mission, descriptive

definition of the project, project’s long-range objectives, feasibility criteria and highlights

of the project.

A. NAME OF THE ENTERPISE

The name of our enterprise is DELISH ENTERPRISE. The “delish” word is a

synonym of the word “delicious”. The word delicious can also mean mouthwatering. The

proponents decided to use delish to show that the product is of quality taste and be able to

give a pleasing savor and to satisfy the customer with the taste.

B. LOCATION OF THE ENTERPRISE

The proponents decided to rent a space at Ground Floor Space 2 Tam-Awan


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Turning Point Pinsao Proper, Baguio City. The location will serve as the production site of

Delish Enterprise. The basis for choosing the location is the accessibility, convenience and

that transportation will not be a problem. It is a 10 minutes ride to Baguio City town proper

and the size fits the ideal production area. Other than that, the expense for the rent and

utilities to be incurred will be much cheaper compared in the central district.

C. LOGO OF THE ENTERPRISE

The logo of the enterprise is in the shape of an oval with the word delish in it, in a

green font color. The green color is the color of nature and energy which symbolizes the

type of ingredients used which are natural and contains vitamins that gives energy and the

red color with green leaves surrounding the oval symbolizes the powerful action and unity

which the proponents possess and as well as its employees. The background shows a visual

of stacked tofu patties which is the product of the enterprise. The font is in a continuous

cursive which represents the life of the enterprise and unending good and careful

production of patties to be able to provide customers quality tofu veggie patties.


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D. VISION AND MISSION STATEMENT

VISION

We envision Delish Enterprise to become one of the recognizable and leading

producer-supplier of healthful, wholesome, and nutritious patty.

MISSION

 At Delish Enterprise, the proponents are committed in providing our consumers

great tasting, flavorful, and nutritious tofu patty.

 We are dedicated in improving the lives of our customers by providing healthy,

nutritious and quality food to the kitchen table.

E. DESCRIPTIVE DEFINITION OF THE PRODUCT

1. National Programs Related to the Project

A. Pondo sa Pagbabago at Pag-asenso or P3 of Department of Trade and Industry (DTI)

This program is a funding program to provide microenterprises an alternative

source of financing that is easy to access and made available at a reasonable cost. This

program gives a boost to the development of the MSME sector, particularly the

microenterprises that comprise about 90% of registered enterprises in the country.

In the future, events may occur like needing a large amount of money. This program

is a big help for the enterprise because it no longer has to access credit at very high interest

because P3 provides assistance to the financing needs at a very affordable interest rate. It

will be a great advantage for the proponents when they will attend this program.

B. Food Management of Société generale de Surveillance (SGS) Philippines

This training program is an effective training on quality and safety management

systems standards, food hygiene, food traceability and business performance improvement.
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This program also provides professional training for awareness, internal auditor training,

and lead auditor levels.

This program will help the proponents develop their professional skills for career

enhancement, while helping your organization to improve efficiency, reduce risk and

increase competitive advantage.

C. Competitive Selling Techniques by Business Coach Inc.

Selling is one of the most important functions of a business. It is no longer enough

to simply rely on gut feel. You must have a scientific system to consistently attain your

targets. This program will help instill the competitive selling techniques the proponents

need to know to have the edge in the current cutthroat market.

This program will help the proponents to be equally successful and competitive and

to be able to apply effective and powerful sales techniques to produce sales and create

loyalty among customers. It will also help the proponents to professionally represent the

enterprise to corporate and individual customers.

D. Small and Medium Enterprise Development for Sustainable Employment Programs

(SMEDSEP) By Department of Trade and Industry

The goal of the small and medium Enterprise Development for Sustainable

Employment Program (SMEDSEP) is the state and private institution shape the investment

climate in the Philippines in a way that enables the development and use of entrepreneurial

potential and stimulates competition. The project is focus on four major constraints to SME

development in the Philippines, lack of a conducive enabling environment for business at

national and local levels, the lack of appropriate business services, the lack of market

driven technical and vocational skills training and the financial sector’s inadequate

(medium-term to long-term) financing for SMEs.


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The proponents will be able to improve the four major constraints to SME

development in the Philippines in order to gain more and enables the development and use

of entrepreneurial potential and stimulates competition.

E. Business Training Programs by Business Coach, Inc.

Business Coach, Inc. is a duly organized corporation, and approved by the SEC to

operate in accordance with the Corporation Code of the Philippines. It is a provider of

quality business seminars which would enhance skills and contribute to entrepreneurial or

career success. It is committed to keep abreast with the latest advances in the business,

and focused on the strategic aspects of how to build and maintain a viable and profitable

business.

This will help the proponents and the employees to provide training as well as

specialization in the area.

2. Affinity to regional or sectoral studies

A. NEGOSEMS

The Negosyo Seminar (NEGOSEM) is a seminar on the how-to’s in

entrepreneurship that aim to help micro and small negosyantes become more innovative,

strategic and smart. The seminar is an opportunity to learn or revisit key principles in

entrepreneurship, from mastering self and the opportunities around to continuously

generate relevant innovations; to mastering the enterprise from set-up, product

development and marketing, to finding sources of capital and managing finance.

Delish Enterprise being new in the business industry will benefit to this program

by attending in proposed seminars that would enhance their knowledge in developing

innovative products/services and setting up of business, mastering self through positive


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and entrepreneurial mindset and Spotting and seizing business opportunities and choosing

the right market.

B. Product Development and Design Program (2016)

It is a program by the DTI-CAR that focuses on the development of small and

medium enterprises. It aims to improve product quality and competitiveness, as well as

giving entrepreneurial skill training and seminars in the region.

Adhering to this give the entrepreneurs as well as the consumers the assurance that

they are producing and selling a quality tofu veggie patty. And this will make the product

more appealing because the patty has a unique vegetable flavor.

C. Competitive Selling Skills Seminar Program by Baguio Institute of Business

Professionals

The Competitive Selling Skills Seminar program leverages core process of needs

based selling together with learning design models to provide entrepreneurs with the

skills, best practices and behaviors they need to have more effective dialogues, convert

more sales opportunities and develop longer-lasting more profitable relationships with their

customers. Using real world examples to illustrate key sales concepts, the program

fosters the development of research-based skills imperative for success in today’s

competitive marketplace.

The proponents will determine and convert their knowledge into attitude with the

support of seminars and trainings of the program such as defining today’s buyers, the

selling mindset, approaches to competitive selling and revisiting the selling process. It

will also support them to be globally competitive for them to quickly adapt and catch up

in the industry.
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D. SME Roving Academy for Cordillera (SMERA)

SME Roving Academy for Cordillera (SMERA) is a continuous learning program

for the development of micro, small and medium enterprises (MSMEs) to become

competitive in the domestic markets in terms of operations and expertise. Its main

strategies contain Integration of the business development services for small and medium

enterprises (SMEs) at the local levels, Establishment of the Provincial, Regional, and

National Entrepreneurship Development Networks and Management of an inclusive

promotion program.

The enterprise adheres to this program to improve the skills and expertise to manage

the business enterprise, engaging in the creation and strengthening of community-based

enterprise and to enhance the product competitiveness in the market. Therefore, while the

enterprise is being established, partners will attend the seminars and workshops.

3. Project potential and proponent

This product has the potential to be bought by those customers who are vegetarian

and health wise. It can also be bought by food businesses specializing in serving healthy

dishes specifically, healthy patties. Tofu is a good source of protein and contains all eight

essential amino acids. It is also an excellent source of iron and calcium and the minerals

manganese, selenium and phosphorous. The proponents have shared new and great ideas

as well as time, interest, effort and resources to make this project possible; the following

competent individuals that contributed to this project are; Rosette Apolonio, Laila Isabel

Prangan, Joyce Rema de Peralta, and Eman Cadiente Tamang.

F. PROJECT’S LONG-RANGE OBJECTIVES

The following are the long-range objectives that the enterprise wants to attain in a span

of 10 years:
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 To offer different varieties of veggie patties such as sweet potato patties, mushroom

patties, and other nutritious patty to satisfy the cravings of customer.

 Expand the business enterprise through distribution of product not only within the

Baguio City but also to the different neighboring provinces like Trinidad, La Union

and Pangasinan.

 To improve production by acquiring additional equipment like patty making

machine for better and faster productions.

G. FEASIBILITY CRITERIA

In order to know if the is feasible, there are guidelines and criteria to be considered.

The first criterion is profitability, if the project can provide profit which will cover the

expenses for capitalization and if the return on investment can return the paid-up capital.

Second is its marketability, since tofu patty belongs to the food industry, the proponents

therefore conclude that there is a demand on the product the fact that food is a basic

necessity. The enterprise also considers the economic status of the City because this would

have a great effect to our price and production.

H. HIGHLIGHTS OF THE PROJECT

1. History of the Project

Choosing the right, the product is difficult. The proponents talked about different

kind of foods and find an ingredient that would make the product unique and could give

satisfaction to customers. They also made use of the internet to ensure that the ingredients

would have healthy benefits and have high possibility to make it. The proponents decided

to make a tofu veggie patty and tofu would be its main ingredient. They also wanted to

make a nutritious and delicious product.


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2. Project Time Table and Status

A. Planning and Preparation of Feasibility (January 2018 to May 2018)

Proper planning is needed in order for a project to be successful and to be able to

produce a bestselling product. It is the same to the proponents who went through researches

in order to gather knowledge and information before introducing the product. The

Feasibility Study will also be a measure on the possibility of the proponents once it enters

the market.

B. Pooling of Funds (April 2018)

In order to attain an initial capital of 210,000 the proponents will contribute equally

and the capital contribution will come from their own savings and the other cash needed

will be borrowed from the parents and relatives.

C. Processing of Requirement (May 2018)

Tofu veggie patty needs to comply with all the requirements required by the law to

be lawfully operational such as business permit and mayors permit.

D. Purchasing of tools and equipment (3rd week of May 2018)

The proponents will purchase cost-efficient tools for the business to start and it will

be used in the daily operations of the business.

F. Recruitment and selection of employees (4th week of May 2018)

The proponents will hire employees to help in the daily operation of the business.

After hiring the employees an orientation will be conducted in order for them to know the

rules and regulations.

G. Promotions (May 2018)

The proponents will use online advertisement and distribute flyers to inform

customers about the product.


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H. Start of the Business (June 1,2018)

The business will start by June for its operation after compliance of the requirement

and providing the necessary equipment for production and distribution.

3. Nature of the Industry

Delish Enterprise is a manufacturing industry concentrating on production and

distribution of Tofu Veggie Patty. The enterprise is in the food industry under food

processing which is considered as the transformation of raw materials into food production

that can be easily distribute in every grocery stores.

4. Mode of Financing

The proponents will build up the needed capital from their savings and will share

50,000 pesos each for their initial capital.

5. Capital of Investment

The initial capital of Delish Enterprise is 210,000 pesos contributed by the partners.

This will be used in purchasing raw materials, acquiring tools and equipment, paying rent,

legal permits payment, and other costs to be incurred.


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CHAPTER II

MARKET STUDY

Introduction

Market study would have a vital role in the feasibility study. It shows whether the

proposed project is competitive enough in the market. The proponents made use of

questionnaires which would help them in their analysis, taking into account the preference

of their target market. It will discuss the data and information that will be used in the entire

study. This market study includes product description, demand analysis, supply analysis,

demand-supply analysis, price study, factors affecting demand and supply, marketing

program, and the geographic area of dispersion. This chapter aims to determine what

marketing decisions are best to apply to promote the product in order to achieve its goals

and objectives.

A. PRODUCT DESCRIPTION

1. Name of product

The product is named as “Tofu Veggie Patty”. It is named as such so that it can

be easily identified since its main ingredients is tofu. The proponents chose the said product

name so that the customers would have an immediate idea of what the product is, and is

made of.

2. Properties of the product

The Delish Enterprise came up with this product for people to try the new Tofu

Veggie Patty. It contains tofu, onion, egg, bread crumbs, all-purpose flour, ground cumin,

salt, turmeric powder, and ground black pepper. It contains not only quality and tasteful
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ingredients but also healthy ingredients. The main ingredient, tofu, is good source of

protein and contains all eight essential amino acids. It is also an excellent source of iron

and calcium and the minerals manganese, selenium and phosphorous. In addition, tofu is

a good source of magnesium, copper, zinc and vitamin B1.

(https://www.bbcgoodfood.com/howto/guide/ingredient-focus-tofu)

3. Use of the product

Tofu Veggie Patty can be eaten as breakfast or a snack. The product can be

prepared during break time or anytime suitable for the consumers as a nutritious and tasty

alternative for burger patty. Tofu is a great substitute for meats including pork, chicken,

beef in a patty recipe. It can be added in menu’s and served during any special occasions.

4. Major users of the product

The users of the product are the individuals of Baguio City and those people who

would like to try the new twist of patty product. The Tofu Veggie Patty will satisfy the

diet of many health-wise people. It can be added in menu’s and served during any

special occasions.

5. Geographical area of Dispersion

The product will be produced at Ground Floor Space 2 Tam-Awan Turning Point

Pinsao Proper, Baguio City. The proponents will distribute to super markets, and

groceries within of Baguio City

B. DEMAND ANALYSIS

Demand analysis is crucial to the study because it helps the business to determine

its customers’ wants and willingness to buy the product. The demand analysis helps in

finding out the optimum quantity of goods to be produced, and different quantities to be

supplied in the market. The analysis is essential in maximizing the profit with efficient
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allocation of resources it also identifies who wants to buy a given product. This would

also determine if the product will have a competitive advantage in trying to compete with

other products available in the market that are similar with the product.

Table 1
Historical Population

Year Population
2013 81,848
2014 83,837
2015 85,874
2016 89,967
2017 90,098

Table 1 show the five-year population of household’s in Baguio City, starting

from year 2013 up to the year 2017. The data was acquired from the City Hall of Baguio

City.

Using the Yamane’s Formula, the computed sample size for the said population was 399.

The computation is shown below:

Yamane’s Formula

Where: N = Total Population of Baguio City (2017)

e = Marginal Error which is equal to 5%

n = Total Sample Size of Baguio City

1 is constant
𝑁 90,098
𝑛 = 1+𝑁𝑒 2 𝑛 = (1+90,098(0.05)2 =398.23

= 399 Individuals of Baguio City

The latest population of 90,098 is used to determine the sample size in which will

be reflected as the number of people who will avail the Tofu Veggie Patty and are the

respondents of the study.


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Table 2

Historical Demand

Year Population Percentage of Consumption Historical


Current Rate Demand in
Demand Consumption
2013 81,848 67% 106 5,812,845
2014 83,837 67% 106 5,954,104
2015 85,874 67% 106 6,098,771
2016 89,967 67% 106 6,389,456
2017 90,098 67% 106 6,398,760

Table 2 shows that as the population grows, the demand of patties increases. This

means that Delish Enterprise should increase its production every year in order to

accommodate the increasing demand of patties.

Table 3

Cross Tabulation

119 grams
Frequency 1 2 3 4 Total
Daily 1 0 0 0 1
Once a Week 10 6 4 1 21
Twice a Week 12 4 2 0 18
Once a month 19 12 2 0 33
Twice a month 2 4 0 0 6
Others (Twice in 6 months) 2 0 0 1 3
Total 46 26 8 2 82
225 grams
Daily 2 2 4 1 9
Once a Week 13 9 4 0 26
Twice a Week 4 12 0 0 16
Once a month 26 19 2 0 47
Twice a month 8 10 0 0 18
Others (Twice in 6 months) 1 0 1 0 2

Total 54 52 11 1 118
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250 grams
Daily 0 0 2 2 4
Once a Week 9 4 0 1 14
Twice a Week 8 2 1 2 13
Once a month 19 8 1 0 28
Twice a month 6 0 0 0 6
Others (Twice in 6 months) 0 0 1 0 1
Total 42 14 5 5 66
TOTAL QUANTITY 266

Table 3 represents the number of respondents who answered in the questionnaires

floated by the proponents depending on its size and quantity. It shows the total number of

patties being served in their households. In the table it shows that the most preferred by

households to serve is 225 grams. It gives the proponents idea on the preferred size of the

product they would produce.

Table 4

Annualized Consumption of Patty

119 Grams
Frequency 1 2 3 4 Total
Daily 42,840 0 0 0 42,840
Once a Week 61,880 74,256 74,256 24,752 235,144
Twice a week 148,512 99,008 74,256 0 321,776
Once a Month 27,132 34,392 8,568 0 70,092
Twice a Month 5,712 22,848 0 0 28,560
Other (Twice in 6 months) 952 0 0 1,904 2,856
Total 287,028 230,504 157,080 26656 700,268
225 Grams
Frequency 1 2 3 4 Total
Daily 162,000 324,000 972,000 324,000 1,782,000
Once a Week 23,400 421,200 140,400 - 585,000
Twice a week 93,600 561,600 - - 655,200
Once a Month 70,200 102,600 16,200 - 189,000
Twice a Month 43,200 108,200 - - 151,200
Other (Twice in 6 months) 900 - 2,700 - 3,600

Total 393,300 1,517,400 1,131,300 3,366,000


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250 Grams
Frequency 1 2 3 4 Total
Daily - - 540,000 720,000 1,260,000
Once a Week 117,000 104,000 - 52,000 273,000
Twice a week 208,000 104,000 78,000 208,000 598,000
Once a Month 57,000 48,000 9,000 - 114,000
Twice a Month 36,000 - - - 36,000
Other (Twice in 6 months) - - 3,000 - 3,000
Total 418,000 256,000 630,000 980,000 2,284,000
TOTAL QUANTITY 6,350,268
Divide By: Desired Size (225grams) 225
Total 28,223
Divide by: Respondents who answered yes 266
Ave. Annual Consumption in 225 Grams 106

Consumption Rate will be used in computing for the historical demand of the

product, Tofu Veggie Patty. The higher the rate is, the more favorable it is for the Delish

Enterprise because this means that there is a high probability that the proposed product

would be feasible.

Table 5

Frequency Distribution of Respondents who consumes Patties

Responses Number of Percentage


Responses
YES 266 67%
NO 133 33%
TOTAL 399 100%

Table 5 shows that 266 out of 399 respondents answered that they serve patties in

their household which is equivalent to 67% of the total sample size. Many have answered

“Yes” thus the product has a higher chance to obtain a higher marketability in the market.
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Table 6

Frequency Distribution

Responses Frequency Percentage


Daily 16 5.26%
Once a week 61 22.93%
Twice a week 47 17.67%
Once a Month 108 40.60%
Twice a Month 30 11.28%
Others (Twice in 6 months) 6 2.26%
Total 266 100%

Table 6 shows the percentage of respondents who buy patties. It indicates that

40.60% of respondents prefer to buy patties on monthly basis. It implies to have a regular

customer in a month.

Table 7

Frequency Distribution of the Preferred Packs of Patties of Respondents

Responses Respondents Percentage


1 142 53.38%
2 92 34.59%
3 24 9.02%
4 8 3.012%
Total 266 100%

The table 7 shows that 53.38% of the respondents usually buy one (1) pack of patty

while 34.59% of respondents consume two (2) packs. Therefore, many customers will

likely buy one (1) pack of tofu veggie patty.

Table 8

Willingness of customer to buy Tofu Veggie Patty

Options Respondents Percentage


YES 338 84.70%
NO 61 15.30%
TOTAL 399 100%
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Table 8 shows that out of 399 responses, 338 respondents are willing to buy Tofu

Veggie Patty which is 84.70% of the total sample. Therefore, not everyone is willing to try

a new kind of patty in the market but majority will do.

Table 9

Summary of the Standard Deviation Methods

Particulars Deviation
Arithmetic Straight Line 137,454
Arithmetic Geometric Line 248,685.41
Statistical Straight Line 117,238.44
Statistical Parabolic 50,501.64

Table 9 shows the different methods of projection to get the standard deviation of

the demand for patties. The projected demand was computed using the Statistical Parabolic

Method because, out of the four methods, it yielded the least standard deviation which

entails least margin of error in forecasting the demand and therefore, making it more

accurate in the computation of the projected demand.

Table 10

Statistical Parabolic Method of Demand

Year Y X X² X⁴ XY X²Y
2013 5,812,845 -2 4 16 -11,625,690 23,251,380
2014 5,954,104 -1 1 1 -5,954,104 5,954,104
2015 6,098,771 0 0 0 0 0
2016 6,389,456 1 1 1 6,389,456 6,389,456
2017 6,398,760 2 4 16 12,797,520 25,595,040

0 10 34 1,607,183 61,189,980
TOTAL 30,653,936

c=
a= 430,334,024 (589,460)
70 70
Standard Deviation 50,501.59
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A B (x) C X² Yc Y - Yc (Y - Yc)²
(2) (8,421) 4 5,792,509 20,336 413549410
6,147,628.91 160,718.20
(1) (8,421) 1 5,978,490 (24,386) 594,670,029
6,147,628.91 160,718.20
0 (8,421) 0 6,147,629 (48,858) 2,387,095,788
6,147,628.91 160,718.20
1 (8,421) 1 6,299,926 89,530 8,015,574,856
6,147,628.91 160,718.20
2 (8,421) 4 6,435,382 (36,622) 1,341,162,513
6,147,628.91 160,718.20
12,752,052,596

A B (x) C X² Yc Y - Yc (Y - Yc)²
6,147,628.91 160,718.20 (2) (8,421) 4 5,792,509 20,336 413549410
6,147,628.91 160,718.20 (1) (8,421) 1 5,978,490 (24,386) 594,670,029
6,147,628.91 160,718.20 0 (8,421) 0 6,147,629 (48,858) 2,387,095,788
6,147,628.91 160,718.20 1 (8,421) 1 6,299,926 89,530 8,015,574,856
6,147,628.91 160,718.20 2 (8,421) 4 6,435,382 (36,622) 1,341,162,513
12,752,052,596

Table 11

Projected Values of Demand Using the Statistical Parabolic Method

Year a B X C X² Yc
2018 6,147,629.18 160,718.26 3 -8,421 9 6,553,995
2019 6,147,629.18 160,718.26 4 -8,421 16 6,655,767
2020 6,147,629.18 160,718.26 5 -8,421 25 6,740,697
2021 6,147,629.18 160,718.26 6 -8,421 36 6,808,785
2022 6,147,629.18 160,718.26 7 -8,421 49 6,860,031

Table 11 shows the trend of the projected demand for the proposed product, Tofu

Veggie Patty. It shows that the projected values increase every year. Delish Enterprise

should use this efficiently comply with the demand each year.
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Table 12

Actual Projected Demand

Projected Percentage of Actual Projected


Year
Demand Willingness Demand(in 225 grams)
2018 6,553,995.48 84.70% 5,112,116
2019 6,655,767 84.70% 5,191,498
2020 6,740,697 84.70% 5,257,744
2021 6,808,785 84.70% 5,310,852
2022 6,860,031 84.70% 5,350,824

Table 12 shows the actual projected demand for the next five (5) years. The

projected demand will be used by Delish Enterprise in determining the unsatisfied

demand for the next five years by deducting it to the projected supply.

C. SUPPLY ANALYSIS

Supply analysis refers to the behavior of producers with regards to their

willingness ability to produce at given prices. A supply curve is usually used to show the

relationship between price to the amount of product businesses are willing to sell.

The major competitors of Delish Enterprise include groceries and supermarkets

selling patties in Baguio City. There are major and local supplies of patties in Baguio

City and the proponents specifically identified 9 competitors and all of them have

answered the given questionnaire. The data gathered will be of great value for it pose a

threat and also additional information that the enterprise could use. It will influence the

decision on production capacity as well as marketing strategies of the enterprise. Among

those that were surveyed are dominated by small groceries.


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Table 13

Raw Historical Table

Retailers Monthly Sales Percentage Increase (decrease)


119 grams 225 grams 250 grams
A 10 30 - (3)
B 20 120 70 30
C 20 90 - 20
D - 3 4 5
E 3 4 4 2
F - 4 - (5)
G 3 2 - 2
H 4 4 - 8
I 3 3 - 6
TOTAL 63 260 78 65

Table 13 shows the quantity of Patties that the competitors of the enterprise

one month. It also shows the percentage increase and decrease in connection with their

sales in the previous month.

Table 14

Annualized Cross Tabulation

Percentage
Retailers Monthly Sales Increase
(decrease)
119 grams 225 grams 250 grams
A 14,280 81,000 - 95,280
B 28,560 324,000 210,000 562,560
C 28,560 243,000 - 271,560
D - 8,100 12,000 20,100
E 4,284 10,800 12,000 27,084
F - 10,800 - 10800
G 4,284 5,400 - 9684
H 5,712 10,800 - 16,512
I 4,284 8,100 - 12,384
TOTAL 89,964 702,000 234,000 1,025,964
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The table 14 shows the total number of patties sold annually.This table provides

the total supply of retailers, which is then used as a basis for the proponent’s potential

supply

Computation for Historical Supply:

Total Quantity Supply 1,025,964


Divided By: packaging size 119 grams
Total Supply per Order 8,622
Divided By: Number of Enterprise 9
Respondents
Average Sale 958
Multiply by: number of 9
Competitors
Historical supply for 2018 8622

Total Quantity Supply 1,025,964


Divided By: packaging size 225 grams
Total Supply per Order 4,560
Divided By: Number of Enterprise 9
Respondents
Average Sale 507
Multiply by: number of 9
Competitors
Historical supply for 2018 4,563

Total Quantity Supply 1,025,964


Divided By: packaging size 250 grams
Total Supply per Order 4,104
Divided By: Number of Enterprise 9
Respondents
Average Sale 456
Multiply by: number of 9
Competitors
Historical supply for 2018 4,104

For Percentage:

Sum of Increase/ Decrease in percentage 65%


Divide By: Total Number of Enterprise respondents 9
Total 7.22%
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Table 15

Historical Supply

Year Historical Supply


2013 12,811
2014 13,808
2015 14,883
2016 16,041
2017 17,289

Table 15 shows how historical supply of patties from year 2013 to year 2017. In

computing the historical supply, the total sales of all competitors in year 2017 will serve

as the base year to be multiplied to the percentage change to get the value of the recent

year.

Table 16

Summary of Standard Deviation

Arithmetic Straight Line 244


Arithmetic Geometric Line 3,620.88
Statistical Straight Line 156.39
Statistical Parabolic 1.70

Table 16 shows the different methods of projection to get the standard deviation

of the supply for patties. The projected demand was computed using the Statistical

Parabolic Method because, out of the four methods, it yielded the least standard deviation

which entails least margin of error in forecasting the supply and therefore, making it

more accurate in the computation of the projected supply.


24

Table 17

Statistical Parabolic Curve

Year Y X X² X⁴ XY X²Y
2013 12,811 -2 4 16 -25,622 51,244
2014 13,808 -1 1 1 -13,808 13,808
2015 14,883 0 0 0 0 0
2016 16,041 1 1 1 16,041 16,041
2017 17,289 2 4 16 34,578 69,156
TOTAL 74,832 0 10 34 11,189 150,249

a= 1,041,798 c= 2,925
70 70

Table 18

Projected Values using Statistical Parabolic Curve


A b (x) C X² Yc Y - Yc (Y - Yc)²
(2) 42 4 12,812 (1) 1
14,882.83 1,118.90
(1) 42 1 13,806 2 5
14,882.83 1,118.90
0 42 0 14,883 0 0
14,882.83 1,118.90
1 42 1 16,044 (3) 6
14,882.83 1,118.90
2 42 4 17,288 1 2
14,882.83 1,118.90
14

Standard Deviation 1.70

Year a B X c X² Yc
2018 14,882.83 1,118.90 3 42 9 18,616
2019 14,882.83 1,118.90 4 42 16 20,027
2020 14,882.83 1,118.90 5 42 25 21,522
2021 14,882.83 1,118.90 6 42 36 23,101
2022 14,882.83 1,118.90 7 42 49 24,763
25

Table 19

Actual Projected Supply


Projected Actual Projected
Year
Supply Supply
2018 5,181.33 4,041
2019 5,574 4,348
2020 5,991 4,673
2021 6,430 5,016
2022 6,893 5,377

Table 19 shows the actual projected supply for the next five years. The table indicates

that the projected supply is increasing in the succeeding years. This only means that the

supply should be increased in order to meet the demand that is increasing.

D. DEMAND SUPPLY ANALYSIS

Table 20

Unsatisfied Demand

Year Projected Demand Projected Supply Unsatisfied


2017 6,553,995.48 5,181.33 6,548,814
2018 6,655,767 5,574 6,650,193
2019 6,740,697 5,991 6,734,706
2020 6,808,785 6,430 6,802,355
2021 6,860,031 6,893 6,853,138

Table 20 shows that for the coming years, there would be an increase in amount

of unsatisfied demand, given that the demand is greater than that of supply. This means

that the business has a high possibility in having its place in the market.

E. PRICE STUDY

One of the many consideration customers make before buying a certain product or

service is its price. With this, the proponents had some factors to consider pricing their
26

product such as prices of raw materials, labor costs, markup costs, and other direct and

indirect cost incurred in the alteration of raw materials into finished products.

As an introductory price, Delish enterprise will be selling the tofu veggie patty at

P50 per pack which contains 4 patties. The proponents made the product affordable to

encourage customers to give it a try. They will ensure that the price is worth satisfying in

order to meet their customer’s needs and wants. The competitors price of 225 grams

ranges from P48-56 depending on the brand of the product.

F. FACTORS AFFECTING THE MARKET

1. Demand Factors

This part will talk about factors that could affect the demand of a product

considering the external factors such as price, income, competition, population

growth, and customers’ preference in order for the enterprise to respond to them.

a. Price

Price is a basic factor that will affect the demand of such commodity. More often,

customers would tend to buy if the product is price friendly. The enterprise will be going

to price the product depending on the total cost of the production and all the expenses

incurred. They made sure that the money spent by the customers on their product is worth

the price.

Therefore, the enterprise will counteract this factor by offering affordable

products to the customer but also taking into account its quality that would satisfy their

need as well as their wants.

b. Income
27

Another factor is the income of customers which could determine the ability of

them buying the product. The higher the income, the higher possibility that consumer’s

demand will increase and a decrease in income means a decrease in demand.

Therefore, the enterprise will offer the product at a less expensive price so that the

customers can afford the product.

c. Customers taste and preference

Being a food lover is innate with the Filipinos. They want to try products that

have a twist which is suitable to their taste buds. The enterprise will produce products

that could satisfy their needs and wants wherein it can encourage customer to patronize

the product and to produce of-quality and delicious tofu veggie patty.

In relation to this effect, the enterprise will continuously improve the taste base on

the customer’s preference which can cause people to want and buy more of the products.

They tend to innovate a different kind of patty product can meet the taste of the

consumers.

d. Population Growth

Yearly, the population of Baguio City increases due to different factors like

students who prefer to study in universities around the city, families who resettle and

choose to live for good in of the product.

Therefore, the enterprise will counteract this factor by producing more patty to

satisfy the increasing of the demand.

e. Quality

Quality is vital in satisfying customers in order to gain their loyalty that could

make them continue to buy it in the future. The enterprise will make sure that the
28

products they will be producing are of high quality by purchasing their raw materials and

ingredients in a good condition.

Therefore, the enterprise will counteract by ensuring that the manufacturing and

processing standards will be strictly implemented to guarantee the quality of the product.

2. Supply Factors

Factors stated below are some of the reasons affecting the production of the

enterprise. The circumstances are unpredictable due to unstable economy of our country.

1. Price of Raw Materials

The prices of raw materials can affect the supply because the cost can be greater than

what is expected due to different factors like inflation. This can increase the cost of

production. If the price of raw materials needed is high, it can affect the production of

supply that the proponents are going to sell.

Because of this, the enterprise should be wise in buying their raw materials and that

they should be able to maximize well their resources to be efficient in their production of

supplies.

2. Competitors

The enterprise cannot avoid having competitors because in every area of business

there will be always a competition. The more the competitors the higher the chance that it

will affect the supply of the product.

In order to lessen the competition, the enterprise will make sure that their product

is of quality and affordable.

3. Legal Provision
29

There are certain policies that the enterprise is ought to follow that are related in

the production. The enterprise will strictly comply with all the rules, regulation,

procedures and guidelines imposed by the government.

Having said this, they will make sure that these are always strictly followed. This

is to prevent violations and penalties that can affect the integrity of the enterprise.

H. Marketing Program

Marketing Program is used to introduce new products and services in the market.

It is used by businesses for them to prosper and achieve their goals. Its main objective is

to have marketing plan and strategies. Thus, it is very important for the product to be

known and to be recognized so that it will lead to the long-term success of the business.

1.Product

The proponents introduced a new twist of patty which they call as Tofu Veggie

Patty. From the name itself, the patty is composed of tofu which made it unique.

The goal of the enterprise is to give nutritious benefits and satisfaction to its consumers.

Product Packaging

2.Price
30

The proponents noticed that price is one of the basis of customers in buying

products. Therefore, they will be pricing the product in a more budget friendly price but

also not setting aside the quality of it. Delish enterprise decided that the price of Tofu

Veggie Patty will be P50 per pack which contains of four (4) patties.

3.Place

The enterprise would be located at Ground Floor Space 2 Tam-Awan Point,

Pinsao Proper, Baguio City. The site is just 10 minutes going to the town proper which is

the advantage besides from the cheap rental cost.

4. Promotion

Advertising is one of the most successful way in reaching the market. The

enterprise will advertise the product through the use of flyers and through the help of

social media. The advertising paraphernalia contains the enterprise location, contact

number and social media page. One week before the official opening of the enterprise,

flyers and posters will be distributed around Baguio City and through the help of social

media and flyers.


31

A. Sample flyer

B. Social Networking Sites

1.Facebook
32

2. Instagram

CHAPTER III

TECHNICAL FEASIBILITY

Introduction

This chapter discusses about the process of production and the activities of the

enterprise. It also states the machineries or tools used in the production and other aspects

regarding bringing raw materials into finished products ready for trade.

This chapter will show the product process using a flow chart. The list of

machineries, tools or equipment are listed with its specific cost in the market. It also
33

presents the plant layout, size and structure for the purpose of identifying the enterprise

operation.

A. PRODUCT DESCRIPTION

The proponent’s product is known as “Tofu Veggie Patty” and its main ingredients

is tofu. Other ingredients of the patty are onion, egg, flour, ground cumin, garlic powder,

turmeric powder, salt, bread crumbs and soy sauce. It’s far from the regular patties that we

eat because it contains no meat and preservatives. It is a round yellowish patty and the

product weight is 200 grams.

B. PRODUCTION PROCESS

The production process includes all the preparations and measurements of all

ingredients. This also illustrates the step-by-step process of making the tofu veggie patty

from the preparations to the setting of tofu veggie patty packaging. The proponents will

make 75 packs of patties with 4 pieces of 3.5 diameter patties per pack. The enterprise will

make one (1) production cycle in a day.


34

Ingredients needed in making 300 pieces of tofu veggie patties are the following.

• 10 kg of Tofu

• 2.75 kg medium sized onions

• 2.85 kg small sized eggs

• 3.51 kg cups of bread crumbs

• 1.5 kg of all-purpose flour

• 225 g of ground cumin

• 225 g of salt

• 125 g of turmeric powder

• 112.5 g of ground black pepper

Procedure:

1.General preparation ( 15 minutes)

Prepare all the necessary ingredient and utensils needed. Wash and rinse the utensils

to make sure they are clean.

2. Tofu (10 minutes)

Press and drain well the tofu to extract excess water.

3. Preparing other Ingredients (40 minutes)

All ingredients should be placed in a working table such as onion, eggs, bread

crumbs, flour, cumin, turmeric powder, black pepper, salt and tofu. Chop the onions and

measure the necessary ingredients into proper measurements and put into a bowl that fits

each ingredient.

4. Smashing of Tofu (30 minutes)


35

Smash the tofu to crumbles in a large mixing bowl

5. Beating of eggs (15 minutes)

Beat the eggs in the large mixing bowl and mix it with the smashed tofu using a

large fork.

6. Mixing Ingredients (30 minutes)

In the large mixing bowl with the tofu and eggs, add the chopped onions, bread

crumbs and all-purpose flour then mix well using a large fork. Then add ground cumin,

turmeric powder, salt and pepper and mix them all together thoroughly.

7. Measuring (1 hour and 30 minutes )

Use a ¼ measuring cup to for 1 patty. Then place in a flat clean surface covered in

satin wrap and press it down forming a 3.5”diameter. Each patty should be 3.5” diameter

and 50 grams

8. Packaging (2 hours)

Each package should contain 4pcs of tofu veggie patty with each piece being

separated by a patty separator. 300 pieces of tofu veggie patties could make 75 packages

of tofu veggie patty.


36

Flow Chart of Making and packaging Tofu Veggie Patty

In a total of 5 hours and 35 minutes of making the tofu veggie patty.

Drain and Press well the tofu (10 minutes)

Preparing other Ingredients (40minutes)

Smashing of tofu into crumbles (30 minutes)

Beating of eggs and mixing with smashed tofu. (15minutes)

Mixing all Ingredients (30 mins)

Measuring of tofu veggie patties (1 hour and 30 minutes)

Packaging ( 2 hours)
37

C. PLANT SIZE AND PRODUCTION SCHEDULE

The location of the business will be located at ground floor space 2 Located 229

Tam-awan Point, Pinsao Proper, Baguio City. The floor space of the plant is 36𝑚2 . The

proponents considered some factors choosing the location of the business. It only takes 10

minutes away from the town proper and also it is near at the jeepney line. The operation

days will be from Mondays to Saturday. Collection of payment and delivery will be made

every after production. There are 75 packs of patties in one cycle of production, 1,776

packs for one month and 21,312 for the first year. The enterprise will have 24 working

days in a month. The manufacturing of the product will be open at 7 o’ clock in the morning

to 12 o’ clock in the afternoon and 12 o’ clock to 1 o’ clock will be for the lunch break.

There will be three employees in the enterprise. One of employees will be an all-around

worker and the other two employees will focus on the production. The delivery schedule

is every other day from 1 o’ clock to 3 o’ clock. Our product will last at least 4-6 weeks in

a cool place.

Brand Name East Sandwich


Intercool
Model SNH- 0105
38

D. EQUIPMENT Price 8,090

Production
Origin Tiongsan Harrison
1. Freezer
Quantity 1 piece

2. Refrigerator

Brand Name Panasonic

Model NR-A6013FTG

Price 13,390

Origin Tiongsan Harrison

Quantity 1 piece
39

F. PICTURE OF PRODUCTION SITE


40

OUTSIDE

INSIDE
41

H. BULDING AND FACILITIES

Ground Floor Space 2 Located 229 Tam-awan Turning point, Pinsao Proper,

Baguio City will be the location of the production site. The rent expense will be 12,000 per

month including the water and the electricity bills. The water supply will be coming from

the Baguio Water District.

I. RAW MATERIALS

The following raw materials describe the quantity and its cost that will be incurred

by the business per day and per month..

Items Units Cost per unit Total

Tofu 10 kg 30/kg 300

Eggs 50 pcs. 5/pc. 250

Onion 25 pcs. 5/pc 125

Flour 1.5 kg 30/kg 45

Salt 250 grams 20/kg 5

Ground pepper 125 grams 20/kg 4

Bread crumbs 3.5 kg 30/grams 105

Ground cumin 225 grams 78/42grams 417.85

Turmeric 125 grams 100/125grams 100

Total 1,351.86

Multiply by: 24

TOTAL 32,446.64
42

J. UTILITIES

1.Electricity

Electricity is essential to enable the machinery and equipment as well as lights

needed to work during the production process. As a commercial consumer, the consumer

rate is 6.9063. Electricity is included in the rent expense

2.Water Supply

Water tank, pipes and faucet is directly installed on the production site. Baguio

Water District (BWD) will be our provider of water, it will be used to wash raw materials,

tools and to use for cleaning the production area .As a commercial business, the enterprise

will pay the rate of 59.05 a month per cubic meter. Water supply is included in the rent

expense.

K. WASTE DISPOSAL

The enterprise will be practicing the Biodegradable, Non- biodegradable and

Residuals to maintain the cleanliness and orderliness inside the production area. The

enterprise will follow the scheduled collection of the garbage in place where the plant is

located which will be every Friday of the week.

L. PRODUCTION COST

Items Notes Amount

Direct Materials 1 1351.86


43

Direct Labor 2 990.72

Indirect Materials 3 1,365

Factory- Rent and Utilities 4 500

Total 4,213.58 5,230.79

Divided by: No. of Patty produced per day 300

Cost 14.05

Add: Mark-up (21.59 x 150%) 32.29

Total 46.34

Selling Price Serving 47

Note 1: Direct Materials


Items Units Cost per unit Total

Tofu 10kg 30/kg 300

Eggs 50 pcs 5/pc 250

Onion 25 pcs 5/pc 125

Flour 1.5kg 30/kg 45

Salt ¼ kg 20/kg 5

Ground pepper 1/8 kg 20/kg 4

Bread crumbs 3.5kg 30/g 105

Ground cumin 225g 78/42g 417.86

Turmeric 125g 100/125g 100

Total 1351.86

Note 2: Direct Labor


Salary 300

SSS Contribution 21.90


44

PhilHealth Contribution 4.17

Pag-ibig Contribution 4.17

Total 330.24

Multiply by: no. of Employees 3

Total 990.72

Note 3: Indirect Materials


Items Quantity Cost Total Cost

Package container 75 pcs 80/ 25 pcs 240

Sticker 75 pcs 30/ bond paper 1,125

Total 1,365

Note 4: Rent Expense


Items Amount

Rent Expense- Production 12000

Divide By:24 Days 500

M. PROJECT COST
Items Notes Amount

Equipment 1 21,480

Furniture and Fixture 2 1,100

Cleaning supplies 3 1,792

Tools and Implements 4 2,402

Other Office Supplies 5 2,175


45

Raw Materials 6 32,444.64

Salaries Expense 7 21,600

Rent Expense 8 12,000

Office Supplies 9 1,584

Production and Selling Supplies 10 260

Transportation Expense 11 552

Advertising Expense 12 250

Benefits of the Employees 13 5,776.80

Taxes and Licenses 14 9,476.20

Feasibility Cost 15 2,050

Project Cost 114,943

Contingency Fund 95,057

Investment Cost 210,00

Note 1: Equipment
Equipment Place of Purchase Unit Total Cost

Freezer Tiongsan Harrison 1 8,090

Refrigerator Tiongsan Harrison 1 13,390

Total 21,480

Note 2: Furniture and Fixture


46

Items Unit Cost Total Cost

Table 1 700 700

Monobloc chair 2 200 400

Total 1,100

Note 3: Cleaning Supplies


Cleaning Supplies Place of Purchase Quantity Cost Total Cost

Trash Bin Tiongsan Harrison 3 100 300

Trash Bag Tiongsan Harrison 10 16 160

Dishwashing Tiongsan Harrison 2 134 268


Liquid (600mL)

Sponge(value pack Tiongsan Harrison 1 82.5 82.50


3pcs)

Hand soap Tiongsan Harrison 2 35.75 71.50

Tissue Paper Tiongsan Harrison 3 12 36

Toilet Cleaner Tiongsan Harrison 3 50 150

Pail Baguio Public 2 40 80


Market
Foot Rags Baguio Public 2 40 80
Market
Floor mop Baguio Public 225
Market
Soft Broom Baguio Public 2 150 300
Market
Dust Pan Baguio Public 1 pc 39 39
Market
Total 1792
47

Note 4: Tools and Implements


Tool and Implements Place of purchase Quantity Cost Total cost

Mixing Bowl CAAA 5pcs 273 1,365

Measuring Cup CAAA 4pcs 83.75 335

Big Knife CAAA 3pcs 84 252

Chopping board Baguio Public Market 3pcs 150 450

Total 2,402

Note 5: Other Office Supplies


Items Quantity Unit Cost Total cost

First Aid Kit 1 675 675

Fire Extinguisher 1 1,500 1,500

Total cost of other Supplies and Implements 2,175

Note 6: Raw Materials


Items Units Cost per unit Total

Tofu 10kg 30/kg 300

Eggs 50 pcs 5/pc 250

Onion 25 pcs 5/pc 125

Flour 1.5kg 30/kg 45

Salt ¼ kg 20/kg 5

Ground pepper 1/8 kg 20/kg 4


48

Bread crumbs 3.5kg 30/g 105

Ground cumin 225g 78/42g 417.86

Turmeric 125g 100/125g 100

Total 1,351.86

Multiply by: 24

TOTAL 32,444.64

Note 7: Salaries Expense


Amount

Minimum Wage 300

Multiply by: No. of Employees 3

Total per day 900

Multiply by: No of Days of operation 24

Total 21,600

Note 8: Rent Expense


Items Amount

Rent Expense- Production 12000

Note 9: Office Supplies


49

Office Supply Place Of purchase Quantity Cost Total cost

Faber Castel Ballpen Expression Sunshine 3 10 30


black
Faber Castel Ballpen red Expression Sunshine 3 10 30

Valiant record book Expression Sunshine 1 90 90

Receipt Voucher Expression Sunshine 1 54 54

Receipt BIR BIR 10 pads 100 1000

Calculator Expression Sunshine 1 359 359

Pencil Expression Sunshine 3 7 21

Total 1,584

Note 10: Production and Selling price


Items Quantity Cost Total Cost

Hair Net 4 15 60

Hand Towel 2 pcs 50 100

Disposable Gloves 2 boxes 50 100

Total 260

Note 11: Transportation Expense


Transportation Expense per Day 46

Multiply by: No. of working days 12

Total 552
50

Note 12: Advertising Expense


Item Quantity Cost Totsal Cost

Flyer 500 .50 250

Note 13:Benefits of the Employees


Particulars Amount

Philhealth 100

Pag- ibig 100

SSS 525.60

13th Month pay (14,400 per year) 1,200

Total 1,925.60

Multiply by: No. of Employees 3

Total 5,776.80

Note 14: Taxes and Licenses


Taxes And Licenses Total cost

Barangay Business Clearance 250

Initial Tax( 0.5% of the initial investment) 750

Mayor’s Permit 200

Tax Clearance 100

Sanitary Business Fee 100

Fire Inspection Fee 45


51

Cedula 5.60

Business Plate 150

Business Permit 1,800.60

Certification Fee 100

Registration 500

Documentary Stamp 50

Bir Registration 700

Name Reservation Fee 125

Notarial Fee 1,500

SEC Payments 2,725

Sanitary Inspection fee 125

Total Cost of Tax And Licenses 9,226.20

Note 15: Feasibility Cost


Feasibility Cost Cost

Photocopy 400

Printing 600

Envelope 150

Book Binding 900

Total 2,050
52

CHAPTER IV

FINANCIAL STUDY

Introduction

The financial study discusses the major assumptions, income statement, financial

position, financial analysis and cash flow statement of the enterprise for the next five (5)

years of operation. This financial study represents the effective results of the company’s

technique and structure to gain information about the present and future financial health

of an enterprise. It also includes the specified terms whether the project will be profitable

even with an existing competition.

MAJOR ASSUMPTIONS

An accurate financial projection of a business is much needed for a business to be

successful. The financial projection would represent the company’s strategy to gain

information whether the project will be profitable for our near future

1. Annual Operation

The enterprise will commence its first year of operation on June 3, 2018. Working

hours starts from 7:00AM-3PM a total of eight (8) hours. Working days will be six days

(Monday-Saturday). There will be a total of 168 working days for the year 2018 and 288

for the succeeding years.

2. Annual Production

The daily production would be 75 packs of patties with 284 grams per pack. The

first year of production (2018) will start on June, there will be a total of 21,600 packs of
53

tofu veggie patty for the year. An increase of 5.10% in the production per year is

assumed.

3. Purchases

There will be an increase in the purchase of direct materials and indirect materials

by 10% annually to meet the annual increase in production and the cost will be increased

by 2%

4. Spoilage

The enterprise will assume a 2.5% spoilage of the total annual production for the

year 2018 and 5% on the total production for the succeeding years.

5. Selling Price

The selling price of Tofu Veggie Patty would be Php 47 per pack. The selling price

would increase by P1.00 per year.

6. Sales

The enterprise will assume a sale of 100% on its production on cash basis.

7. Salaries

The salaries will increase 5% every year

8. Utilities Expense

Cost of utilities is estimated to stay the same for 5 years.

9. Rent Expense

The rent expense is based on a five-year lease contract which costs Php 12,000 per

month

10. Other Expense


54

Cost of the other expenses like the raw materials is estimated to increase by 2% for

the first 5 years.

11. Wages and Expenses (Direct Labor and Employee Benefits)

The enterprise would be having three (3) employees starting from the first day of

operation. The employee salaries is expected to increase 2% annually

12. Office, production, and cleaning supply

The enterprise assumes that all prices of supply are subjected to increase by 2%

annually on cost

13. Depreciation of equipment

The refrigerator and freezer will be depreciated using the straight line method,

which have an estimated useful life of 5 years. No salvage value will be assumed by the

enterprise.

14. Advertising Expense

In the first year of operation, the enterprise expects to spend Php 250 for 500 copies

of flyers and the like Php 250 for 500 copies of flyers in the succeeding years

15. Delivery Expense

The cost of delivery is estimated to increase by 2% every two years.

16. Partner’s Capital and withdrawals

The partners of the enterprise will be contributing Php 50,000 each accumulating

a fund of Php 200,000 for the initial investment. The proponents will share in the profit

and losses that the enterprise will benefit. The partners will be allowed to withdraw 60%

of their share in the net income for the succeeding years