Copyright

The author and the adviser authorize consultation and partial

reproduction of this thesis for personal use. Any other reproduction or
use is subject to copyright protection. Citation should clearly mention
the reference of this work.

Malayan Colleges Laguna, May 2016

The Adviser

The Authors:

Natalie Joyce RIVERA

Jeizel Joy A. ALMENDRAL

Sarah Mae P. CARIAGA
Karelle Shayne Gonzales SAGARAL

Biographical Sketch
JEIZEL JOY ALOCHA ALMENDRAL graduated at Holy Rosary College in Santa Rosa,
Laguna and she is currently in her 3rd year of study in the Bachelor of Science in
Accounting Technology at Malayan Colleges Laguna. She is also a member of Junior
Philippine Institute of Accountants Malayan Colleges Laguna Chapter.

SARAH MAE POBE CARIAGA is a 3rd year bibliophile, taking up B.S. Accounting
Technology. She will fill up the position of VP in Media and Documentation in Junior
Philippine Institute of Accountants- Malayan Colleges Chapter for the incoming
federation year. She became a Deans Lister twice.

KARELLE SHAYNE GONZALES SAGARAL was born on January 6, 1997 in San

Juan, Batangas. She graduated high school at Joseph Marello Institute and now, she is
currently taking B.S. Accounting Technology in MCL. Shes from San Juan, Batangas but
because its far from school, shes living at a boarding house at Cabuyao, Laguna. During
her time at MCL, she was almost always a Deans Lister or a Presidents Lister. She likes
to read books and watch TV series on her free time.

Acknowledgment

We would like to express our sincere gratitude to all those who provided us the
possibility to accomplish this study. We would also like to give thanks to our adviser,
Maam Natalie Joyce Rivera, for her continuous support of this study, for her patience,
motivation, and vast knowledge. His guidance became a big help for us upon fulfilling
this project. We would also thank our school, Malayan Colleges Laguna, for making this
study possible.
Besides our adviser and school, we would like to give thanks to our parents and
friends who supported and helped us in finishing this study within the limited time frame.
We could not imagine having a better adviser and school for our study.

PROJECT SUMMARY
A. Name of the enterprise
The name of the business will be FDC Corporation. FDC Corporation is a
manufacturing company of fruity doughnut coconut and it is named after our main
product, fruity doughnut coconut.
B. Location
FDC Corporation would be located at RLI building 3, Pulo-Diezmo Road,
Cabuyao, Laguna. This location is very accessible for the students and other
visitors for the reason that it is near the school and near express way. Please refer
to Figure 20. Plant Location to locate this establishment.
C. Descriptive definition of the project
This project is the product of the study of the unhealthy eating behaviors
of most Filipinos in the city. Since this product is made of all natural ingredients
and the people are already aware of its health benefits, making the product
promising and also profitable. As for the group of people who will manage the
business, there would be a set of officers who has the capacity to set the
principles, policies and procedures of the business.
D. Project objectives
FDC Corporation strongly believes that food needs to be nutritious,
healthy, delicious, and might as well affordable. We want to avoid the diseases
brought by artificial flavorings by introducing fruity doughnut coconut to the
market. With all natural ingredients, we are hoping to improve the wellness of the

consumer and raise awareness to the Filipino people in the danger of consuming
artificial food flavorings.
E. Feasibility criteria
The most important guidelines of the feasibility of this project would be
the price of each doughnut, cost of production, profitability, and socio-economic
environment. The price of each doughnut would be Php 32 so that it will cover the
production cost of Php 21.68 and at the same time generate a profit of Php 10.32.
As for the socio-economic environment, each employee of the business would
have their designated compensation base on their role in the business. By using
local fruits like coconut, which are abundant here in the Philippines, we are
helping the local farmers of the country to increasing the demand for their product
and to increase their income.
F. Highlights of the project
We, the researchers, came up to this idea of developing fruity doughnut
coconuts for the reason that we want to make snack time more nutritious. In the
process of making snack time more nutritious, we are currently in the stage of
gathering and analyzing of data for the research portion of establishing a business.
Yet still, this project needs 2 to 3 months to be fully operational. Projected
schedule might vary on the investments of the owners. Our main product would
be different flavors of fruity doughnut coconut but we also offer bottled juice and
coffee. Since this is a new product, we are adding another nutritious snack in the
food industry. However, it would take time for us to make a name in the society
because of all the well-known doughnut shops and companies. But still, this

business has potential for the reason that our product is not just any doughnut. We
recreated the concept of doughnut. It has to be satisfying, delicious, and most
importantly, it has to be nutritious. With all the fruits inside, it is definitely
nutritious.
G. Major assumptions and summary of findings
Upon developing this product, we found a need to develop a healthier
snack due to the current state of ordinary doughnut that can result to different
complications to consumers. Therefore, we also established a need of teenagers
for fruity doughnut coconut to be able to eat an on-the-go healthy yet tasty snack
that was especially for students of Malayan Colleges Laguna and still applicable
for the general public and also a need for the college students for the reason that
being a college student can dry out time to eat properly and to eat what is proper.
So our solution for the current problem of the college students, FDC offers a fast
yet nutritious snack fit for students who do not have the time to prepare a
nutritious meal. As for the health conscious segment, they also need FDC
doughnuts for its health benefits and for those people who are on a diet is to
attain their goal and maintain their healthy weight. We rest assured that every
student are eating healthy snack and at the same time enjoying a delicious snack.
H. Conclusion of the study
According to the research and study that we have accompanied, we
conclude that our business is feasible and viable in the market. Therefore, after
assessing the significant factors in the study, it is suggested that FDC Corporation
will be pursued and the business to be establish.
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TABLE OF CONTENTS
Copyright
Biographical Sketch
Acknowledgment
Project Summary
Table of Contents
List of Tables
List of Figures
List of Acronyms/Abbreviations
Definition of Terms
Background
History
Literature
Market Study
Technical Study
Financial Study
Socio-Economic Study
Organization and Management Study
Conclusions and Recommendations
References
Appendices

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ii
iii
iv
vii
viii
ix
x
xi
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3
4
5
31
50
66
70
78
82
85

List of Tables
Table 1. Market Segmentation
Table 2. Number of students enrolled at Malayan Colleges Laguna
Table 3. Number of MCL students who buy doughnuts
Table 4. Annual demand for doughnuts
Table 5. Projected demand
Table 6. Different doughnut companies
Table 7. Projected supply
Table 8. Projected supply gap
Table 9. Price study
Table 10. Shelf Life of Fruits. (Romine, 2013)
Table 11. Minimum and maximum number of doughnut production
35
Table 12. Estimated useful life
Table 13. Costs of fixed assets
Table 14. Inventory Investments
Table 15. Cash Credit
54
Table 16. Organization Expense
Table 17. Total Current Assets
Table 18. Ovens Specifications (Baketech, 2016)
Table 19. Spiral Mixer (Baketech, 2016)
Table 20. Display Cabinets (Kitchen Display Cabinet Refrigerator, 2016)
Table 21. Kitchen Refrigerator (Lazada, 2016)
Table 22. Desktop Compute Stick (Desktop Compute Stick Package, 2016)
Table 25. Ingredients

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7
8
8
9
9
10
10
12
32
52
53
53
54
55
88
88
88
89
89
93

List of Figures
Figure 1. Historical number of demands
Figure 2. Projected number of demands
Figure 3. Daily allowance chart
Figure 4. Daily allowance
Figure 5. Willingness to spend on snacks chart
Figure 6. Willingness to spend on snacks
Figure 7. Buying pattern chart
Figure 8. Buying pattern
Figure 9. Doughnut places chart
Figure 10. Doughnut places
Figure 11. How often do they purchase doughnuts and snacks chart
Figure 12. How often do they purchase doughnuts and snacks
Figure 13. Features of doughnut chart
Figure 14. Features of doughnut
Figure 15. Product question chart
Figure 16. Product question
Figure 17. Willingness to buy Fruity Doughnut Coconut chart
Figure 18. Willingness to buy Fruity Doughnut Coconut
Figure 19. The Production Process
Figure 20. Plant Location
Figure 21. Plant Organization
Figure 22.Organizational Chart
Figure 23. Project Activities and Dates
Figure 24. Gantt chart for Project Schedule
Figure 25. Plant Layout
Figure 26. Flow of Equipment in Production Project

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8
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25
25
26
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27
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28
28
29
29
34
39
49
74
76
77
85
87

List of Acronyms/Abbreviations
ABA American Bakers Association
BLT Bacon, Lettuce, and Tomato
CFS Consumer Financial Survey
FDC Fruity Doughnut Coconut
FIFO First In, First Out
LPG Liquefied Petroleum Gas
MCL Malayan Colleges Laguna
MERALCO Manila Electric Company
MWPV - Manila Water Philippine Venture
PGL - Provincial Government of Laguna
PLDT Philippine Long Distance Telephone
PSA Philippine Statistics Authority

10

Definition of Terms
Baking cooking food in an oven (Adams, 2014).
Board of Directors - are responsible for the formulation of the policies for the corporation
and for the exercise of corporate powers (Ballada, 2014).
Composting - occurs by allowing organic materials to sit in one place for months until
microbes decompose it (Rinkesh, 2016).
Corporation - is an artificial being created by operation of law, having the right of
succession and the powers, attributes, and properties expressly authorized by
law or incident to its existence (The Corporation Code of the Philippines,
Sec. 2).
Direct Labor - is the compensation of employees or workers who physically convert the
raw materials into finished goods (Ballada, 2014).
Direct Materials - are materials that become a physical part of a finished product and
their costs can be conveniently and economically traceable to the finished
product (Ballada, 2014).
Fermentation is what happens when yeast cells consume sugars and produce ethanol
and other derivative chemicals. It is an anaerobic reaction (meaning it
happens in the absence of oxygen) that the yeast performs after respiration
(Bernstein, 2014).
Glycemic Index is a measure of the blood glucose-raising potential of the carbohydrate
content of a food compared to a reference food (generally pure glucose) (Liu,
2016)

11

Indirect Labor is the cost of any labor that supports the production process, but which is
not directly involved in the active conversion of materials into finished
products (Indirect Labor, n.d.).
Indirect Material materials used in the production process, but which cannot be linked
to a specific product or job (Indirect Materials, n.d.).
Manufacturing Business - is any business that uses components, parts or raw materials to
make a finished good (Hill, 2016).
Manufacturing Overhead - cost includes all manufacturing costs that cannot be classified
as direct materials or direct labor.
Partnership - is the relationship existing between two or more persons who join to carry
on a trade or business (Partnerships, 2016).
Production Cost cost incurred by a business when manufacturing a good or producing a
service (Production Cost, 2016).
Production Process is concerned with transforming a range of inputs into those outputs
that are required by the market (Operations Theory, 2016).
Product Waste an unusable or unwanted substance or material produced during or as a
result of a process, such as metabolism or manufacturing (Waste Product,
2016).
Proofing refers to the final rise dough undergoes, which takes place after being shape
into a loaf, and before it is baked (Bernstein, 2014).
Quality Cost the total cost to produce the product or service of the project while
ensuring quality standards (Cost of Quality, 2016).

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Raw Materials unfinished goods consumed by a manufacturer in providing finished

goods (Raw Materials, 2016).
Shareholders - is an individual, group, or organization that owns one or more shares in a
company, and whose names appear in the certificate of stocks (Shareholder,
2016).
Sole Proprietorship - is an unincorporated business that was owned by one owner who
pays personal income tax on profits from the business (Sole Proprietorship,
2016).
Supervisor is the person in the first-line management who monitors and regulates
employees in their performance of assigned or delegated tasks (Supervisor,
2016).
Utilities - mean useful features, or something useful to the home such as electricity, gas,
water, cable, and telephone (Utilities, 2016).
Waste Disposal - is a proper disposition of a discarded or discharged material in
accordance with local environmental guidelines or laws (Waste Disposal,
2016).
Waste Management - is the process of treating solid wastes and offers variety of solutions
for recycling items that do not belong to trash (Rinkesh, 2016).

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