1

CHAPTER I

INTRODUCTION

Cocos nucifera is a member of the family arecacea (palm family). It is the only

accepted in the genus cocos. The term coconut can be referred to the entire coconut

palm, the seed, or the fruit, which botanically, is drupe, not a nut. The selling coconut is

an archaic form of the word. The term is derived from 16th century Portuguese and

Spanish coco, meaning head or skull, from the three small holes on the coconut shell

that resemble human facial features . It is found throughout the tropic and sub tropic

area, the coconut is known for its great versatility as seen in many domestic,

commercial, and industrial uses of its different part. Coconut is part of the daily diets of

many people. Coconut is actually very healthy-it is not only high in protein, but also in

electrolytes and healthy fats. It’s no wonder that it is an important food source for the

people who live where it grows. With the mentioned uses, the proponent has decided to

make an effort into processing the by-product of the coconut which can be available in

the locality. (http://en.Wikipedia.org/wiki/coconut)

Citrofortunella microcarpa, the calamondin or calamansi, is a fruit tree in the

family in native Asia. Other English language common names include

calamonding, calamandarin, golden lime, Philippine lime, Panama orange, Chinese

orange, acid orange. Calamansi is a popular small citrus fruit, used by Filipinos to add

flavor to different dishes. Apart from its use as a condiment, calamansi also offers health

benefits. It is a great source of vitamin C, which helps prevent sickness and boosts your

immune system. Calamansi limes is gorgeous and very aromatic, complicated citrus

fragrance. Peel is thin, tender and eatable while the inside flesh is juicy with minimal
 2

seeds. The peel has a very grown up sweetness to it while the inside is like a sour

orange. (http://en.wikipedia.org/wiki/calamansi)

The product to be processed will be a Sweet Coco Balls with Calamansi Limes

which can be good kind of sweet and delicious. The intent of this study is to introduce

the Sweet Coco Balls with Calamansi Limes in Mati City and to make it as new livelihood

to all who wanted to have additional source of income, in order to sustain the daily

needs.
 3

STATEMENT OF THE PROBLEM

Coconut is called the tree of life because of its many uses and versatility. It is one

of the most important crops in Davao Oriental as it substantially contributes the income

of people of Davao Oriental as the leading coconut producer. The product to be

processed is Sweet Coco Balls with Calamansi Limes to have an additional source of

income.

STATEMENT OF THE OBJECTIVES

The aim of the study is the acceptability and marketability of coconut product,

the Sweet Coco Balls with Calamansi Limes in the locality of Mati City, Davao Oriental.

Specifically, the study aims to;

1. Process and promote new product from coconut ;

2. Provide a quality product to consumer at a reasonable price;

3. Come up a business plan of Sweet Coco Balls with Calamansi Limes ;

4. Determine cost and return analysis ;

 4

SIGNIFICANCE OF THE STUDY

Coconut is highly nutritious and rich in fiber , vitamins , and minerals . It is

classified as a functional food because it provides many health benefits beyond its

nutritional content. Calamansi is a great source of vitamin C, which helps prevent

sickness and boosts your immune system. In addition, it is also acts as a natural kidney

enhancer. This could be a good new material for a processes product, and this would be

studied by the proponent. The result of this study would recommend for the future

processors, farmers and those who wanted to have an alternative generating income.

The consumer probably enjoy the new features and taste of the spread which is

the coconut. This is the advantage for the study as it provides easy access on acquiring

raw materials which is the coconut.

SCOPE AND LIMITATION OF THE STUDY

The study will be conducted only in Mati City Davao Oriental from November

2014 to February 2015. In producing the Sweet Coco Balls with Calamansi Limes, the

study is only limit on how to make Sweet Coco Balls with Calamansi Limes out of the

coconut in Mati City Davao Oriental, its acceptability and marketability.

 5

OPERATIONAL DEFINITIONs OF TERMS

1. Consumer – is a person or group of people, such as a household, who are the

final users of products or services.

2. Consumption – consumption of goods and services is the amount of the used in

a particular time period. The term consumption is typically defined to be

consistent with what economist call final demand.

3. Digestion – is the mechanical breakdown of food into smaller component that

are more easily absorbed into a blood stream for instance.

4. Limitation – the act of allowing only a specific quantity of something.

5. Marketing Strategies – is a process that can allow an organization to

concentrate its resources of the optimal opportunities with the goals of increasing

sales and achieving a sustainable competitive advantage.

6. Calamansi Limes - the Calamondin bears a small citrus fruit that is used to

flavor food and drinks.

7. Sweet - having a pleasant taste, especially one relating to the basic taste

sensation induced by sugar.

8. Coconut – the mean ingredient of this study.

9. Cost - the calculation of price or expenses in Sweet Coco Balls with Calamansi

Limes Production.

10. Nutrients - any constituents or group of feed constituent of the same general

chemical composition which contributed to support life.

11. Distribution – the process of transporting or delivering sweet coco Balls with

calamansi limes to the costumers.

 6

INPUT
II.MLLKIIJNLL PROCESS OUTPUT

*Scrape Coconut meat * Gathering of Raw * Sweet Coco Balls

Materials with Calamansi Limes
*Calamansi Limes
*
* Preparing Needed *Product Investment
*Sugar Utensils
*Product Price
*Coconut Water * Cooking
*Market Survey
*Packaging
*Product Acceptability
*Labelling
*Successful and
*Finish Product Profitable Processing
Business

Figure 1. The Conceptual Framework

The framework of the study shows the input- process- output concept of the

study. The inputs are the Coconut meat that is being scraped, calamansi limes and

sugar. These inputs were processed by gathering the raw materials, the preparation of

the necessary utensils for cooking all of the input through the use of food processor. This

process is the result to the finished product the Sweet Coco Balls with Calamansi Limes,

placed in calypso cellophane. The processing is determined whether the product has

high or low quality. The price per pack and the market survey activity is the indicators if

the product is acceptable to the costumers.

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CHAPTER II

REVIEW OF RELATED LITERATURE

The scientific name for coconut is Cocosnucifera. Early Spanish explorers called

it coco, which means “monkey face” because the three indentions (eyes) on the hairy nut

resemble the head and face of the monkey. Nucifera means “nut bearing”. The coconut

provides a nutritious source of meat, juice, milk, and oil that has fed and nourished

populations around the world for generation. On many islands coconut is a staple in the

diet and provides the majority of the food eaten. Nearly one third of the world’s

populations depend on coconut to some degree for their food and their economy. Among

these cultures the coconut has a long and respected history.

Coconut is highly nutritious and rich in fiber, vitamins, and minerals. It is

classified as a “functional food” because it provides many health benefits beyond its

nutritional content. Coconut oil is of special interest because it possesses healing

properties far beyond that of any other dietary oil and is extensively used in traditional

medicine among Asian and pacific populations. Pacific Islanders consider coconut oil to

be the cure for all illness. The coconut palm is so highly valued by them as both a source

of food and medicine it is “The Tree of Life”. Only recently has modern medical science

unlocked the secrets to coconuts’ amazing healing powers.

Coconut production plays an important role in the national economy of the

Philippines. According to figures published in December 2009 by the food and

Agriculture Organization of the United Nations, it is the world’s largest producer of

coconut, producing 19,500.000 tons in 2009. Production in the Philippines is generally

concentrated in medium-size farms.

 8

In 2012, the Philippines exported more than 1.5-million metric tons of copra,

coconut oil, copra meal, desiccated coconut, coco shell charcoal, and activated carbon

and coco chemicals, a 1.49 percent increase compared to the volume exported in 2011.

In 1989, it produced 11.8 million tons and at the time it was the second largest producer

but has since surpassed Indonesia. In 1989, coconut product coconut oil, copra (dried

coconut), and desiccated coconut accounted for approximately 6.7 percent of Philippines

exports.

About 25 percent of cultivated land is planted to coconut trees, and it is

estimated that between 25 percent and 33 percent of the population is partly dependent

on coconut for their livelihood. Historically, the Southern Tagalog and Bicol regions of

Luzon and the Eastern Visayas were the centers of coconut production. In the 1980s,

Western Mindanao and Southern Mindanao also became important coconut growing

region.

In the early 1990s, the average coconut farm was a medium-sized unit of less

than four hectares. Owners, often absentee, customarily employed local peasant to

collect coconut rather than engage in tenancy relationship. The villagers were paid on a

piece-rate basis. Those employed in the coconut industry tended to be less educated

and older than the average person in the rural labor force and earned lower-than

average incomes.

There are 3.5 million hectares dedicated to coconut production in the

Philippines, which account for 25 percent of total agriculture land in the country. Land

devoted for cultivation of coconut increased by about 6 percent per year during the

1960s and 1970s, a response to the devaluations of the Philippines peso (PHP) in 1962

and 1970 and increasing world demand. Responding to the world market, the Philippines
 9

government encourages processing of copra domestically and provides investment

incentives to increase the construction of coconut oil mills. The situation was aggravated

by declining yields because of the aging of coconut trees in some regions.

In 1973, the martial law regime merged all coconut-related, government

operations within a single agency, the Philippines Coconut Authority (PCA). The PCA

was empowered to collect a levy P0.55 per 100 kilograms on the sale of copra to be

used to stabilize the domestic price on coconut-based consumer goods, particularly

cooking oil. In 1974, the government created the Coconut Industry Development Fund

(CIDF) to finance the development of a hybrid coconut tree. To finance the project, the

levy was increased to P20.

Also in 1974, coconut planters, led by the Coconut Producers Federation

(Cocofed), an organization of large planters took control of the PCA governing board. In

1975 the PCA acquired a bank, renamed the United Coconut Planters Bank, to service

the needs of coconut farmers, and the PCA director, Eduardo Cojuangco, a business

associate of Marcos, and became its president. Levies collected by the PCA were in the

bank, initially interest-free.

In 1970the United Coconut Planters Bank was given legal authority to purchase

coconut mills, ostensibly as a measure to cope with excess capacity in the industry. At

the same time, mills not owned by coconut farmers-that is, Cocofed members or entities

controlled through the PCA-were denied subsidy payment to composed for the price

controls on coconut-based consumers product. By early 1980, it was reported in the

Philippines press that the United Coconut Oil PCA-owred firm, and its president,

Cojuangco, controlled 80 percent of the Philippines oil-milling capacity. Ministry of

Defence Juan Ponce Enrile also exercised strong influence over the industry as
 10

chairman of both the United Coconut Planters Bank and Coconut Oil Mills and honorary

chairman of Cocofed. An industry composed of some 0.5 million farmers and 14,000

traders was, by the early 1980s, highly monopolized.

In principal, the coconut farmers were to be the beneficiaries of the levy, which

between March 1977 and September 1981 stabilized at P76 per 100 kilograms.

Contingent benefits included life insurance, education scholarship, and a cooking oil

subsidy, but few actually benefited. The aim of the replanting program, controlled by

Cojuangco, was to replace aging coconut trees with a hybrid of a Malaysian dwarf and

West Africa tall varieties. The new palms were to produce five times the weight per year

of existing trees. The target of planting 60,000 trees a year was not met. In 1983, 25 to

30 percent of coconut trees were estimated to be least 60 year old; by 1988 the

proportion had increased to between 35 and 40 percent.

When coconut prices began to fall in the early 1980s, pressure mounted to

alter the structure of the industry. In 1985, the Philippines government agreed to

dismantle the United Coconut Oil Mills as part of an agreement with the IMF to bail out

the Philippines economy. Later in 1988, United States law requiring food using tropical

oils to be labeled indicating the saturated fat content had a negative impact on an

already ailing industry and gave rise protest from coconut growers that similar

requirements were not levied on oils produced in temperature climates.

By 1995, the production of coconut in the Philippines had experienced a 6.5%

annual growth and later surpassed Indonesia in total output in the world.

(http://en.wikipedis.org/wiki/coconut_production_in_the_Philippines)
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Coconut Nutrition Facts

Coconut is a mature fruit of the cocosnucifera palm. Since the ancient times,

the nut holds unique place among the millions of inhabitants in South-East Asia, and

Pacific islands. It is one of the most sought-after ingredients in the kitchen as it is found

in almost every delicacy prepared in these parts of the world.

Cocos nucifera belongs to the large Palmaceae family of palm trees. Coco palm

grows well under tropical climates. The palm requires moist, sandy, well-drained soil and

flourishes well all along the saline-rich coastal regions.

The coconut palm is an un-branched, erect, tall-growing tree that may reach

more than 100 feet and has a lifetime of about 75 to 100 years. Once planted, it may

take about 4-5 years to begin their first produce, and often, quite longer time in some

species. Several hundred species of the coconut palm are grown all over the tropics,

and their taste and flavor of water thus may vary according to the saline content of the

soil, distance from sea-shore, rain-fall.

In a season, a single coconut palm may produce 20-150 mature nuts. The fruit

is almost spherical to oval in shape and measures between 5-10 inches in width. Its

rough outer husk is light green, and turns gray as the nut matures. The husk is about 1-2

inches in thickness and made of tough fibers. Underneath the husk, there as a woody

shell enclosing inner edible kernel (endosperm). Just harvested matures fruit contains

some amount of sweet water inside its central hallow cavity surrounded by the white

meat (endosperm). The fruit with its shell, kernel, and water together constitutes a

“coconut” at the commercial level.

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Health Benefits of Coconut

Coconut is a very versatile and indispensable fruit for most people under the

tropical belt. It is a complete food rich in calories, vitamins, and minerals. An average

size nut weighing 400 g with edible meat and water provides almost all the daily-required

essential minerals, vitamins, and energy for a medium-sized person. 100 g kernel

consists of 354 calories. Much of these come from the fats in comparison to other edible

nuts, coconut has many bioactive compounds that are essential to better health. The

important saturated fatty in the coconut is lauric acid (1:12 carbon fatty acids). Lauric

acid increases HDL cholesterol levels in the blood. HDL is a high-density lipoprotein,

which has beneficial effects on the coronary arteries by preventing vessel blocked

(atherosclerosis). Medicine recommends high HDL to total cholesterol levels in the blood

for the same reason.

Coconut water is a refreshing drink to beat tropical summer thirst. The juice is

packed with simple sugar, electrolytes, minerals, and bioactive compounds as cytokinin,

and enzymes such as acid phosphatase, catalase, dehydrogenase, peroxidase,

polymerase. Altogether, these enzymes aid in digestion and metabolism. Coconut oil

extract from the dry nut is an excellent emollient agent. It is used in cooking, to help

scalp hair nourishment, in pharmacy and in medicines. Research studies suggest that

cytokines (e.g., kinetin and trans-zeatin) in coconut water showed significant anti-aging,

anti-carcinogenic, and anti-thrombotic effects. The kernel is an excellent source of

minerals such as copper, calcium, iron, manganese, magnesium, and zinc. These

vitamins are essential in the sense that the body requires external sources to replenish

them. Coconut meat and water contain a very good amount of potassium.

(http://www.nutrition-and-you.com/coconut.html)
 13

Culinary Use

The various parts of the coconut have a number of culinary uses. The seed

provides oil for frying, cooking, and making margarine. The white, fleshy part other seed,

the coconut meat, is used fresh and dried in cooking, especially in confections and

desserts such as macaroons. Desiccated coconut or coconut milk made from it is

frequently added to curries and other savory dishes. Coconut flour has also been

developed for use in baking, to combat malnutrition. Coconut chips have been sold in

the tourist regions of Hawaii and the Caribbean. Coconut butter is often used to describe

solidified coconut oil, but has also been adopted as a name by certain specialty products

made of coconut milk solids or purred coconut meat and oil.

Coconut milk

This is not to be confused with coconut water. It is obtained primarily by

extracting juice by pressing the grated coconut’s white kernel or by passing hot water or

milk through grated coconut, which extracts the oil and aromatic compounds. It has a fat

content around 17%. When refrigerated and left to set, coconut cream will rise to the top

and separate from the milk. The milk can be used to produce virgin coconut oil by

controlled heating and removal of the oil fraction. Another byproduct of the coconut is

coconut oil. It is a commonly used in cooking, especially for frying. It can be used in

liquid form as would other vegetable oils, or in solid form as would butter or lard.
 14

Citrofortunella microcarpa belongs to the Rutaceae family and is known locally

as “Kalamansi “ or “Calamondin”. It is also known as Philippine lemon . It is a small tree,

originally native to China, which is now widely grown throughout Southern Asia and

Malaysia. It is particularly important source of citrus in Philippine Islands. The

Kalamansi fruit is of small size (3-4 cm wide). It does not resemble a lemon nor a lime,

but was thought to be a hybrid of a lime and a mandarin orange or a kumquat. This is

probably why it has been referred as “Chinese orange.” The fruit is best used when

mature and still green but also to be used when fully ripe (yellow to orange in color).

The extremely juicy and highly acid pulp has a particularly distinct, aromatic smell and

taste. The fruit juice is an ingredient in numerous local beverages, cakes, sauces and

marmalades( Sarasota, 1999).

It is said that calamansi is an acid citrus, a group that includes lemons and limes.

This is because the fresh is orange, juicy and acidic acid with a fine lime flavor. The

many uses of calamansi make this fruit a wonder fruit. Calamansi halves or quarters

may be squeezed on iced tea, seafoods and meat, to enhance iron absorption.

According to theNutritional Guidelines for Filipinos 2000 developed by Technical

Working Group headed by the Food and Nutrition Research Institute of the DOST(2007).

Aside from the food and medicinal uses of calamansi, the fruit juice is used to bleach ink

stains from fabrics and serve as a body deodorant.

The calamondin is as cold-hardy as the Satsuma orange and can be grown all

along the Gulf Coast of the southern United States. It is moderately drought-tolerant.The

tree seems able to tolerate a wide range of soils from clay-loam in the Philippines to

limestone or sand in Florida.

Calamondins are harvested by clipping the stems as they become fully colored

throughout the year. In the Philippines the peak season is mid-August through October.
 15

Storage

The fruits will keep in good condition for 2 weeks at 48º to 50º F (8.89º-10º C) and 90%

relative humidity. Weight loss will be only 6.5%. Waxing retards ascorbic acid loss for 2

weeks in storage but not thereafter.

Food Uses

Calamondin halves or quarters may be served with iced tea, seafood and meats,

to be squeezed for the acid juice. They were commonly so used in Florida before limes

became plentiful. Some people boil the sliced fruits with cranberries to make a tart

sauce. Calamondins are also preserved whole in sugar sirup, or made into sweet

pickles, or marmalade. A superior marmalade is made by using equal quantities of

calamondins and kumquats. In Hawaii, a calamondin-papaya marmalade is popular. In

Malaya, the calamondin is an ingredient in chutney. Whole fruits, fried in coconut oil with

various seasonings, are eaten with curry. The preserved peel is added as flavoring to

other fruits stewed or preserved.(Morton, 1987).

Calamansi peelings contain a preservative called pectin that is generally used in

preserving jams and Jellies (Cindy, 2009).

Pectin is a structural heteropolysaccharide contained in the primary cell walls od

terrestrial plants. It was first isolated and described in 1825 by Henri Braconnot. It is

produced commercially as a white to light brown powder, mainly extracted from citrus

fruits and is used in food as a gelling agent particularly in jams and jellies. In plant cells,

pectin consists of a complex set of polysaccharides (see below) that are present in most

primary cell walls and particularly abundant in the non-woody parts of terrestrial plants.

Pectin is present not only throughout primary cell walls but also in the middle lamella

between plant cells where it helps to bind cells together.

 16

Pectin is a natural part of human diet, but does not contribute significantly to

nutrition. The daily intake of pectin from fruits and vegetables can be estimated to be

around 5 g (assuming consumption of approximately 500 g fruits and vegetables per

day).

Consumption of pectin has been shown to reduce blood cholesterol levels. The

mechanism appears to be an increase of viscosity in the intestinal tract, leading to a

reduced absorption of cholesterol from bile or food. In the large intestine and colon,

microorganisms degrade pectin and liberate short-chain fatty acids that have positive

influence on health (prebiotic effect).

Apples, guavas, quince, plums, gooseberries, oranges and other citrus fruits,

contain large amounts of pectin, while soft fruits like cherries, grapes and strawberries

contain small amounts of pectin.

The main raw-materials for pectin production are dried citrus peel or apple

pomace, both by-products of juice production. Pomace from sugar-beet is also used to a

small extent.

From these materials, pectin is extracted by adding hot dilute acid at pH-values from 1.5

– 3.5. During several hours of extraction, the protopectin loses some of its branching and

chain-length and goes into solution. After filtering, the extract is concentrated in vacuum

and the pectin then precipitated by adding ethanol or isopropanol. An old technique of

precipitating pectin with aluminium salts is no longer used (apart from alcohols and

polyvalent cations; pectin also precipitates with proteins and detergents).

 17

CHAPTER III
METHODOLOGY

Market Study

Marketing was used to identify the customer preference, quality, price and other

related marketing concept.

Research Design

Upon the conduct of the study, the proponent used the survey descriptive type of

research. Actual interviews with prospective consumers were conducted

Market Research Analysis

Demand Analysis

Demand analysis was used to determine the demand for Sweet Coco Balls with

Calamansi Limes. In order to know this, the proponent will be conducted a market

survey in Mati City specifically in barangay Matiao and to know if the Sweet Coco Balls

with Calamansi Limes will increase its demand in the future.

Supply Analysis

Supply analysis was used as the comprehensive evaluation of input and outputs

in processing Sweet Coco Balls with Calamansi Limes to review if there was enough

supply to produce numerous finished product and if there was no scarcity of raw

materials. It was ascertain that the supply of raw materials in the area was enough to

produce numerous finished products to be distributed to its respective retailers. The

supply of Sweet Coco Balls with Calamansi Limes will depend on the production of

Coconut in the area as well as the demand of the product.

 18

Product Testing

Product testing will be performed after the approval of the proposed project.

Hedonic scale was used for market survey since it was easy to be understood by the

respondents, and the outcome will be the indication whether the product was acceptable

or not. The result for it gave a clear view to the proponent that this business will soon be

preferred by consumers in the City of Mati.

Table 1. SWOT Analysis of Sweet Coco Balls with Calamansi Limes

Internal factors External factors

Strengths:  This product consumed by

every individual, young
and old. Where the
consumers will have the
treat of enjoying the
unique flavors taste of
sweet coco balls with
calamansi limes.
 Able to give good care for
consumer, to work plenty
of time to devote of
consumer.
 We can offer good value
to consumer.
 The shelf life of the
product can reach longer.
 The price is affordable
and reasonable.
Weaknesses:  Will be improved to have
a good label of the
product compared to
commercialize product.
 The taste of sweet coco
balls with calamansi limes
may not satisfy the
consumers
 19

 Cash flow will be

unreliable in the early
stages.
 The owner has no past
experience of operating a
business.
Opportunities:  Business is expanding,
with many future
opportunities for
success.
 The local business has
a good value.
 All who enter the
business may adapt
new technologies.
 Income generation for
the newly graduates
who have no job at the
same time
Threats:  We will adapt the
development in
technological
advancement change
in the market beyond
our ability.
 Government
regulations.
 20

Market Strategy

a. Pricing Strategy

Cost-oriented pricing strategy was imposed since most processing

enterprises adapt this kind of pricing strategy. Mark-up pricing was the most

common method used in cost-oriented pricing method.

Formula:

Selling price per pack = Total processing cost + Mark-up

Total no. of pack

b. Promotional Strategies

To widen the publicity about Sweet Coco Balls with Calamansi Limes, the

selling campaigns was a fusion of advertising, personal selling, and sales

promotion. Advertising involved radio campaign to facilitate in making the Sweet

Coco Balls with Calamansi Limes well-known to the public, educate and inform

the public about Sweet Coco Balls with Calamansi Limes, and attract target

market to find out more about Sweet Coco Balls with Calamansi Limes its socio-

economic benefits, and nutritional benefits. A sales promotion activity was

targeted directly to the consumers of the product with a low-price offer.

c. Potential Market

The demographic approach used by the proponent in selecting the

product’s potential market. It indicated the location, the profit, level, and the

employment generated for the people.

 21

d. Distribution

Distribution was the movement of goods and services through a

distribution channel. The product was processed by the processor and the retailers

will sell the product to the consumer or processor can directly sell to the consumer.

Processor

Retailers

Consumer

Figure 2. Channel of Distribution

 22

TECHNICAL STUDY

Study Area

Davao Oriental, particularly the municipality of Mati, was the place proposed

project because the raw materials can simply be acquired from here and the target

markets are accessible.

Tools and Equipment in making Sweet Coco Balls with Calamansi:

In processing the sweet coco balls with calamansi limes, there were specific

equipment to be used. Below were the list of tools and equipment needed

 1 pc. Frying fan

 1 pc. Scraper

 1 pc. Bowl

 1 pc. Stove

 1pc. Ladle

Ingredients in making Sweet Coco Balls with Calamansi Limes

The following were needed in the product of Sweet Coco Balls with Calamansi

Limes:

1 10 pieces of young coconut

2 1 kilo of sugar

3 ¼ kilo of calamansi

4 1 cup of coconut water

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Manufacturing Process

Below were the procedures in processing the Sweet Coco Balls with Calamansi

Limes:

1. Prepare all the ingredients.

2. Scrape 10 pieces of matured coconut meat.

3. Cut the 6 pieces of calamansi limes into small pieces.

4. Mixed the coconut meat, coconut water, calamansi limes and the 1kilo sugar

in the frying pan, stir it well.

5. Cook in 40 minutes or until it sticky.

6. After cook, place it in a bowl.

7. Cool for 5 minutes.

 24

Preparing all ingredients

Scraping coconut meat

Cut the 6 pieces of calamansi limes into small pieces

Mixed the coconut meat, coconut water, calamansi limes and 1kilo of
sugar

Cook in 40minutes or until it sticky

Cooling

Packaging

Labeling

Figure 3. Processing Flow Chart

The flow of production was from the raw materials and ingredients that are

needed by a supplier to produce a product; after processing this product it will be packed

and labeled to come up with a finished product before selling it to the potential market.
 25

Processing site

DATICOR MATIAO

LOPEZ

INTERCO

PROVINCIAL HOSPITAL

MARTINEZ

DOSCST

Figure 4. Processing Site

 26

Shelf-life of the Product

The product shelf-life will be determined through observation of the newly

produced Sweet Coco Balls with Calamansi Limes. The data will be recorded

and analyzed to identify the life of the product. The shelf-life of the product will be

tested through the following parameters;

Table.2 Determine the Shelf-Life of the Product.

Taste Odor
Day
Good Bad Good Bad

Appearance

Taste

Color

Aroma

Taste Odor
Month/Year
Good Bad Good Bad

Appearance

Taste

Color

Aroma
 27

Packaging of the Product

In packaging the product, mold like ball then place it in a calypso cellophane as

its seal to extend the shelf life of the product.

Product Label

The label of the Sweet Coco Balls with Calamansi Limes and contained the

information about the producer, its content, ingredients, contact number and the name of

the enterprises.

Figure 5. Product Label

 28

Store Layout
 29

Table 3. Pre-Operating Activities

Number of Weeks

Activities

1 2 3 4 5 6

Project Planning

Acquisition of funds

Selection of Site

Procurement of Materials and

Supplies
Hiring of Laborers

Operation

The schedule of activities was shown in this table. The first activity was the

project planning, it was done before the actual operation, it takes in one to two weeks.

The second was the acquisition of funds and it required three to four weeks. Third was

the procurement of materials and supplies in preparing the things needed in the

proposed business, it takes three to five weeks. In hiring of laborers, it needs three

weeks. And for the operation it takes four to six weeks.

 30

ORGANIZATIONAL AND MANAGEMENT STUDY

MANAGER

MARKETING WORKERS
PERSONNEL

Figure 8. Organizational Structure

The organizational structure was composed of different parts and tasks. It was

headed by the proprietor, who was at the same time, the manager. He/she is tasked in

supervising and organizing the activities of the workers in the production. The workers

should have the skills and understanding about the activities in the production and were

responsible in maintaining the cleanliness of the operational area as well as the needed

equipment.

Description of the Business

The business was named “SIGALEPS Enterprise” and focused on the production

of sweet coco balls with calamansi limes only. It would be a wholesale/retail sweet coco

balls with calamansi limes market operating as a sole proprietorship type of business.

This was managed by one person only. An individual proprietor owns and manages the
 31

business and was responsible for all business transactions. The owner was also

personally responsible for all debts and liabilities incurred by the business.

Responsibilities and Function

Manager oversees the activities of workers, trains and evaluates new

employees; and ensures that the company or department was on track to meet its

financial goals. He/she also ensures that workers have the resources to complete the

work. Business manager might also develop and implement budgets, prepare reports for

senior manager and ensures that the department complies with company policies.

It is important that the workers participate in the risk assessment. They should

know the problems and the details of what really happens when they perform their task

or activities, so they should be involved in the assessment. Their practical knowledge or

competence is also often needed to develop workable preventive measures. Workers

participation is not or only right, it is fundamental to make the employers’ occupational

health and safety management effective and efficient.

Marketing Personnel was an important part in a company as this section relates

directly to the costumer, maintains a good relation with customers and marketing

through the dissemination of information about products.

 32

Qualification of Personnel

Manager:

 Has a Degree in Marketing or Business Studies/Administration/Account

Management or its equivalent or higher.

 Has more than three years’ experience in sales and marketing.

 Has an MS Office (word, Excel, Power Point) and internet skills.

 Has a good command in written and spoken English.

 Is good in interpersonal and follow-up skill, responsible and has a sense of

urgency in completing assignment.

 Possess analytical skills with high level of integrity, honesty and professionalism.

Personnel:

 Must be 18 years and above.

 Must have a good moral character.

 Must be at least a high school graduate or college level.

 With pleasing personality.

 Is confident and presentable.

 Is very good interpersonal and people skills.

 Can work with minimum supervision.

 Is capable of multi-tasking and a team player.

 Is proficient in written and articulate verbal communication.

 33

Marketing personnel skills

 Good oral and written communication skills

 Numeracy and analytical ability

 Influencing and negotiation skills

 Teamwork

 Interpersonal skills

 Business and commercial acumen

 34

FINANCIAL STUDY

Sigaleps Enterprise

PROJECT COST FOR SWEET COCO BALLS WITH CALAMANSI LIMES

For One Day Operation

DIRECT MATERIAL 1 DAY OPERATION

QTY. UNIT. UNIT PRISE Cost (PHp)
Matured coconut 70 Pcs. 8.00 PHp 560.00
Calamansi 1 Kilo 20.00 20.00
Sugar 3 Kilo 30.00 90.00
TOTAL PHp 670.00
Overhead Cost
Labor Cost 300.00
Promotional Expense 200.00
Transportation Expense 40.00
Miscellaneous Expense 150.00
TOTAL PHp 690.00
Utensils and Equipment
Scraper 1 Pc 10 4.95
Frying pan 1 Pc 250 62.48
Ladle 1 Pc 20 4.98
Calypso 1 pack 35.00 35.00
Stove / Gas 1 Pc. 3,600.00 719.78
Label 105.00
TOTAL PHp 932.19
TOTAL PROJECTED COST PHp 2,292.19

The table shows projected initial investment in processing sweet coco balls with

calamansi limes for one (1) day operation with the starting capital of PHp 2,292.19 with

105 packs produced.

 35

Sigaleps Enterprise

PROJECT COST FOR SWEET COCO BALLS WITH CALAMANSI LIMES

For One Week Operation

Direct Material 1 WEEK OPERATION DIRECT

QTY. UNIT UNIT PRISE COST (PHp)
Matured coconut 350 Pcs. 8.00 PHp 2,800.00
Calamansi 5 Kilo 20.00 100.00
Sugar 15 Kilo 30.00 450.00
TOTAL PHp 3,350.00
Overhead Cost
Labor Cost 1,500.00
Promotional Expense 200.00
Transpiration Expense 200.00
Miscellaneous Expense 150.00
TOTAL 2,050.00
Utensils and Equipment
Scraper 1 Pc 10 4.95
Frying pan 1 Pc 250 62.48
Ladle 1 Pc 20 4.98
Calypso 4 Packs 35 140.00
Stove / Gas 1 Pc. 3,600 719.78
Label 420
TOTAL PHp 1,352.19
TOTAL PROJECTED COST PHp 6,752.19

The table shows projected initial investment in processing sweet coco balls with

calamansi limes in one (1) week operation with the total amount of PHp 6,752.19 with

420 packs produced.

 36

Sigaleps Enterprise

PROJECT COST FOR SWEET COCO BALLS WITH CALAMANSI LIMES

For One Month Operation

DIRECT MATERIAL 1 MONTH OPERATION

QTY. UNIT UNIT COST (PHp)
PRICE
Matured coconut 1,400 Pcs 8.00 PHp 11.200.00
Calamansi 20 Kilo 20.00 400.00
Sugar 60 Kilo 30.00 1,800.00
TOTAL PHp 13,400
Overhead Cost
Labor Cost 6,000.00
Promotional Expanse 200.00
Transportation Expense 800.00
Miscellaneous Expense 150.00
Light Expense 150.00
Rent Expense 500.00
Water 120.00
TOTAL PHp 7,920
Utensils and Equipment
Scraper 1 Pc 10 4.95
Frying pan 1 Pc 250 62.48
Ladle 1 Pc 20 4.98
Calypso 14 Packs 35 490.00
Stove / Gas 4 Pcs 3,600 2,879.98
Label 1,680.00
TOTAL PHp 5,122.39
TOTAL PROJECTED PHp 26,442.39
COST

The table shows projected initial investment in processing sweet coco balls with

calamansi limes in one (1) month operation with the starting capital of PHp 26,442.39

with 1,680 packs produced.

 37

Selling Price:

Formula:

Selling price per pack = Total processing cost + Mark-up

Total no. of pack

= 26,442.39 + 30%
1,680

= 15.74 x 30%

= 15.74 + 4.72

= 20.46 or 20

Depreciation:

Depreciation = total expense – salvage value

No. of years

Table No.8 Schedule of Depreciation Cost of Sweet Coco Balls with Calamansi
Limes

Utensils and equipment Total Salvage No. of Years Total

Expense Value
Scraper 10 10% 2 4.95
Frying pan 250 10% 4 62.48
Ladle 20 10% 4 4.98
Stove w/ Gas 3,600 10% 5 719.98
TOTAL 792.39
 38

Sigaleps Enterprise

PROJECT INCOME STATEMENT FOR SWEET COCO BALLS WITH CALAMANSI

LIMES

For One Month Operation

GROSS SALES NO. OF OPERATION

Qty. Unit Price 1 month operation Total

1,680 Pack Php 20 33,600
Total Gross Sales 33,600 PHp 33,600
less: Cost of Goods sold
Direct Materials 13,400
Direct Labor 6,000
Total Cost of Goods Sold 19,400 PHp 19,400
Gross Profit 14,200 PHp 14,200
less: Operating Expense
Promotional Expense 200
Transportation Expense 800
Miscellaneous Expense 150
Light Expense 150
Rent Expense 500
Water Expense 120
Depreciation Cost 792.39
Total Operating Cost PHp 2,712.39 PHp 2,712.39
NET INCOME PHp 11,487.61 PHp 11,487.61

The table shows the income statement of the enterprise with net income of PHp

13,167.61 for the one month operation. Thus, it was projected that the business

enterprise will gain money from the product and it was profitable.
 39

a. Balance Sheet

The balance sheet shows the proponent’s enterprise assets and liabilities

and owners equity. It was the statement reflecting the financial condition of the

business at the date of its preparation.

Sigaleps Enterprise

PROJECTED BALANCE SHEET STATEMENT FOR SWEET COCO BALLS WITH

CALAMANSI LIMES

AMOUNT(PHp)

ASSETS 1 month operation

Cash PHp 33,600.00

Utensils and Equipment 5,122.39

Less:

Depreciation Cost PHp 792.39

Total Assets PHp 37,930.00

Liabilities and Owner’s Equity

Equity 26,442.39

Add: Net Income 11,487.61

Total Liabilities and Capital PHp 37,930.00

The table shows the total assets and total liabilities and equity of the enterprise for

the one month operation which was helpful for the proponent in determining the financial

position of the sweet coco balls with calamansi limes as a proposed business plan.
 40

b. Cash Flow Statement

It shows how changes in balance sheet accounts and income affect cash

and cash equivalents, and breaks the analysis down to operating, investing, and

financing activities. Essentially, the cash flow statement was concerned with the

flow of cash inflow and cash outflow of the business.

Sigaleps Enterprise

PROJECTED CASH FLOW STATEMENT FOR SWEET COCOBALLS WITH

CALAMANSI LIMES

TOTAL(PHp)
PARTICULARS 1 month operation
CASH INFLOWS
Initial Investment 26,442.39
Sales 33,600
TOTAL INFLOWS PHp 60,042.39
CASH OUTFLOWS
Utensils and Equipment 5,122.39
Direct Material 13,400
Direct Labor 6,000
Promotional Expense 200
Transportation Expense 800
Miscellaneous Expense 150
Light Expense 150
Rent Expense 500
Water Expense 120
TOTAL OUTFLOW PHp 26,442.39
NET CASH FLOW PHp 33,600

The table showed that the proponent will be able to measure each inflow and

outflow caused by the core business operation.

 41

Formula:

Net Income
Return on Investment (ROI) = x 100%
Initial Investment

Schedule 1. Return on Investment

Net Income Php 11,487.61

Initial Investment 26,442.39

Return on Investment 0.43

The return on investment (ROI) was the basis in determining the return on profit.

The business earned 43% in one month operation thus; there is 43 cents return for every

peso invested.

Formula:

Net Income
Net Profit Margin = x 100
Sales

Schedule 2. Net Profit Margin

Net Profit 11,487.61

Sales 33,600

Net Profit Margin 0.34

The Net Profit Margin was the basis in determining the net profit of the business.

The business earned 34% per pack.

 42

Formula:

Initial Investment
Payback Period = x 100%
Net Income

Schedule 3. Payback Period

Initial Investment Php 26,442.39

Net Income 11,487.61

Payback Period 2.3

The payback period showed the length of time requirement to get back the

business investment outlay. It was estimated that two months and three days would be

required for the business to get its money back.

Total Variable Cost

Variable Cost/Unit =
Volume Production

Schedule 4. Variable Cost/Unit

Total Variable Cost PHp 13,400

Total Number of Units 1,680

Variable Cost/Unit 7.98

The Unit Variable Cost is Php 7.98 per unit.

 43

Schedule 5. Volume Cash Sales

PRODUCTION

Sweet Coco Balls with Calamansi Limes – Php 33,600

1,680 packs at 20.00

Total Cash Sales 33,600

In Volume Cash Sales it indicates that within one month operation the total cash

sales was Php 33,600 for 1,680 packs of Sweet Coco Balls with Calamansi Limes and

each pack cost 20.00.

Formula:

Contribution Margin = Selling Price – Variable Cost/Unit

Schedule 6. Contribution Margin Approach

Unit Selling Price Php 20.00

Variable Cost/Unit 7.98

Contribution margin 12.02

The contribution margin of the business was Php 12.02 per pack upon recovering

the fixed cost and expenses as well as the profit.

 44

Formula:

Total Fixed Cost

Break Even Volume (BEV) =
Contribution Margin

Schedule 7. Break Even Point Analysis

Fixed Cost Php 7,920

Contribution Margin Php 12.02
Break Even Point 658.90
Formula:

Variable Cost + Fixed Cost

Break Even Selling Price( BESP) =
Volume of Production

Schedule 8. Break Even Selling Price

Variable Cost 13,400

Fixed Cost 7,920

Volume of Product 1,680

Break Even Selling Price Php 12.69

Formula:

Break – even sales = Break – even Volume x Break – even selling price

Schedule 9. Break Even Sales

BEV 658.90

BESP Php 12.69

BES Php 8,361.44

 45

Assumptions

Through the financial ratios computed above the proponent obtained the following

assumptions.

1. The Return on Investment is 43% in one month operation, thus there will be 43

cents return for every peso.

2. The Net Profit Margin is 34% per pack.

3. The Payback Period is estimated that one month would require for the business

to get its money back.

4. In one month operation the total cash sales is PHp 26,442.39 for 1,680 packs of

Sweet Coco Balls with Calamansi

5. The contribution margin of the business is PHp 12.02 per pack upon recovering

the fixed cost and expenses as well as the profit.

 46

Table 10. Projected Sales Forecast

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Volume of 26,442.39 34,375.11 44,687.64 58,093.93

Production 3%

Price 20% 20 25.94 33.66 43.70

Sales 33,600 43,679.94 56,783.86 73,818.96

Sales (cash) 25,200 32,759.96 42,587.90 55,364.22

75%

Sales (A/R) 6,720 8,735.99 11,356.77 14,763.79

20%

Bad Debts 5% 10,080 21,839.97 28,391.93 36,909.48

Total Sales 102,062.39 141,416.91 183,841.76 238,994.08

There was seventy five percent (75%) volume of production to be sold, five

percent (5%) of bad debts and twenty percent (20%) of accounts receivable to be

incurred. Thus, there was total sale of Php 173,705.00 in month.

 47

SOCIO-ECONOMIC DESIRABILITY

Generally, Coconut is classified as a “functional food” because it provides many

health benefits beyond its nutritional content. And the calamansi is extremely juicy and

highly acid pulp has a particularly distinct, aromatic smell and taste. Utilizing coconut

and calamansi for Sweet Coco Balls with Calamansi Limes production would include its

importance. Production of Sweet Coco Balls with Calamansi Limes will also be an

additional income to the entrepreneurs and farmers. Sweet Coco Balls with Calamansi

Limes as a study will help promote social economy by providing household entrepreneur

and farmers the opportunity to avail of the newly developed technology as a means

generating income. This will also enhance the undertaking of the locally grown coconut

in the area, which will strengthen the value of coconut in the market.
 48

LITERATURE CITED

Books:

Media, R.G. (1996) Entrepreneur and Small Business Management, First Edition.

Passion, D.S (1997). New Revised Edition Accounting Introductory Part One. Alemar

Phoenix Publishing House, Inc.

Passion, D.S (1980). New Revised Edition Accounting Introductory Part Two. Alemar

Phoenix Publishing House, Inc.

Harina, R. M (2012) Managerial Accounting for Informed Business Decisions

Abello M.M (200) Manila Bulletin agriculture

Mangubat, R.G (2011) Madrid Agribusiness Digest Volume 21 Number 10

Website:

http://en.wikipedia.org/wiki/Coconut

Date Retrieved: July 2, 2014

http://goumet.lovetoknow.com/Where_Do_Coconuts_Come_From

Date Retrieved: July 2, 2014

http://www.ask.com/question/which-country-do-coconuts-come-from

Date Retrieved: July 2, 2014

http://www.nutrition-and-you.com/coconut.html

Date Retrieved: July 2, 2014

http://www.harvardcocopro.com/Desiccated_Coconut.html

Date Retrieved: July 3, 2014

 49

http://archive.feedblitz.com/50654/~3933533

Date Retrieved: July 3, 2014

http://www.jobstreet.com.ph/jobs/2013/9/new/i/80/4238979.htm?fr=J&src=12

Date Retrieved: July 3, 2014

http://www.flsenate.gov/laws/statutes/2012/1012.32

Date Retrieved: July 3, 2014

http://healthnutnation.com/2013/02/26/young-vs-mature-coconuts/

Date Retrieved: July 3, 2014

http://en.wikipedia.org/wiki/Coconut_production_in_the_Philippines

Date Retrieved: July 3, 2014