Republic of the Philippines

Tarlac State University

College of Business and Accountancy
Financial Management Department
A.Y 2014-2015 1st Semester
 Angel’s
Pitahaya Juice
In Partial Fulfillment of the Requirements for the degree of
Bachelor of Science in Business Administration
Major in Financial Management

Proponents: FM 4-2
Alzaga, Shermin M.
Dizon, Maelyn R.
Sotto, Vanessa B.
Quiazon, Shilla Ann, J.
Yco, Ana Giselle G.
Introduction

Dragon fruit is among the most nutritious and wonderful exotic fruits. It is a favorite to

many, particularly people of Asian origin. It features a mouthwatering light sweet taste, an

intense shape and color, not forgetting its outstanding flowers. In addition to being tasty and

refreshing, this beautiful fruit boasts of a lot of water and other vital minerals with varied

nutritional ingredients.

Due to its vital nutrients, the Dragon fruit is suitable for all diets as it supplements fiber

which is best for laxative and the liver. Similarly, people who have high blood pressure, diabetes

and obesity have attested to the fruit’s goodness. Recent findings show that if an obese person

eats a Dragon fruit on a regular basis, it naturally reduces the weight considerably, creating a

well-balanced body without compromising on the individual’s health.

Typically, the fruit has red pulp or red flesh if you like. The fruit originates from the

dragon fruit cactus plant, which usually appears like vines. Unlike day pollination done by bees,

it is surprising to note that this nutritious and tasty fruit blooms at night where pollination is

caused by nocturnal living things such as bats and moths. What is more, it blooms a few times

annually, blossoming with the now synonymous huge aromatic buds.

You can eat Dragon fruit as a desert, raw, of you can make its juice and use in cocktails.

Cocktails of ice cream are an example, or you can even ferment the cocktail into a

mouthwatering healthy alcoholic beverage. In Taiwan for instance, the Dragon fruit is used by

diabetics to substitute food for rice and to enhance the fiber content of the diet.
Summary of the Project

A. Name of the Business

Angel’s Pitahaya Juice

Pitahaya Juice is a healthy and nutritious drink that contains the benefit of anti

oxidants properties, mineral and vitamins, improves metabolic rate and strengthens immune

system.

B. Business location

Angel’s Pitahaya Juice is located at MH Del Pilar Street, Tarlac City.

C. Business Description

FRESH JUICES

For the first time we are producing Pitahaya Juice drink for testing the consumer

market. We are going to make fresh juices two flavors in drinks available throughout the year

Dragon fruit + Dalandan and Dragon fruit + mango.

SPECIALTY

We produce juice for the children and health conscious people, because we reduce

the fat level on 0.5% and add extra vitamins and add some sugar that are best for diabetic people.

It provides 100% pure juice, good for digestion and diet.

D. Size of Business

This business will produce & provide consumer product and organize medium
size business. Initially we will cover the part of Tarlac.

E. Project Summary

a. Management Aspect

This includes a study of the officers and key personnel, basic considerations in

forming the organizations, form of ownership, organizational chart and project schedule. This is

to determine the option effectiveness of the organizational set up and the qualification of the

individuals who make up the organization. This will also determine the successful realization of

the study.

Angel’s Pitahaya Juice is a sole proprietorship business; the sole owner will be

over-all in charge day to day operations and management of the business. The business has total

of employees as business grows additional employees will be hired.

b. Marketing Aspect

The market projection of this business is based on the surveys conducted and

other related information gathered from the company. Projection of sales for the five years of

operation is based on the different factors like the market acceptability, level of satisfaction of

the customers and promotional strategies. We also consider factors like our competitors and the

location awareness of the customers that may affect the market share of the company.

c. Technical Aspect

d. Financial Aspect

e. Socio-economic Aspect
 Management Aspect
VISION:

Our business Angel’s Pitahaya Juice bears the vision of providing fun, deliciously

appetizing, uniquely enchanting food and beverage products while maintaining our commitment

to uncompromised quality at economical rates with a heartening purpose to cater to society’s

needs, taste and preferences rather than simply convincing our customers to try and like

whatever products we develop.

MISSION:

We aim for continuously generate awareness, interest and desire for our product,

resulting in frequent purchases by the customers. The healthy Pitahaya Juice will promise you

customers to provide the quality, reasonably priced product in industry.

GOALS

 To offer a healthy beverage that satisfies the fast changing consumer preferences

for a juice drink.

 To be able to earn profit and to gain market share.

 To provide World-class customer service that fills each needs and demands.

 Offering diverse line-up of flavours of Pitahaya Juice.

 Generating job opportunities for employees, including benefits, professional and

skill development, relationship building and personal growth.

 Ensuring cleanliness in the working ground of all employees to guarantee

customer’s safety.
 A. FORMS OF BUSINESS

The business proposed will be more productive and be more efficient in more aspects

having a sole proprietorship form of business in contrast with other forms. This will bring the

highest possible return for the owner.

First, since the business is not that costly, it does not need much investment just as a

corporation and a partnership have. Another is that forming a sole proprietorship is very much

easier and simpler than any of the others.

Advantages

 A sole proprietor has a complete control and decision-making power over the

business.

 Sale or transfer can take place at the discretion of the sole proprietor.

 No corporate tax payments.

 Minimal legal cost to forming a sole proprietorship.

 Few formal business requirements.

Disadvantages

 The sole proprietor of the business can be held personally liable for the debts and

obligations of the business.

 All responsibilities and business decisions fall on the shoulders of the sole

proprietor.

 Investors won’t usually invest in sole proprietorship.

 B. ORGANIZATIONAL STRUCTURE

The business will generally hire individuals which are knowledgeable about the business,

good natured in the line of the industry. The combination of these attributes makes up good and

competitive employees.

Organizational chart shows lines of authority among the various positions within an

organization. This type of chart illustrates the relationships among departments and of personnel

within the departments. The senior position is placed at the top of the chart. Other positions are

placed on the chart in descending order of authority.

Manager/Cashier

This person will be the overall in-charged in the business. He/she is responsible in hiring

personnel, procure equipment, handle business agreements, perform bookkeeping and decide on

finances.

Accountant

This person will be responsible for the preparation of Financial Statements and Income

Tax Returns, handling of invoices and accomplishing statistics.

General Clerk

This person will work in an office performing such tasks as keeping records, attending to

correspondence, or filing.

Food Technologist

This person shall ensure the adherence of products to strict quality standards. With this,

he/she shall propose means of improving the quality of the product.

 Laborers

These persons will be responsible for manual work such as washing, peeling, preparation

and packaging.

Driver

This person must be a licensed driver and must know the routes and areas around Tarlac

area for it will deliver finished goods to the resellers around Tarlac and even pick up supplies to

the suppliers.He must also know how to drive huge and loaded trucks.
 C. Personnel Requirements

` The number of personnel that the business will be hiring in the initial year of

operation will be maintained throughout the first three years of operation and in additional 4

labourers in the next two years. The basis of these managerial presumptions is that the

businesses will increase in production capacity on these periods although decline in market

share is possible because of some reasons. The number of employees that the business needs

based on its capacity is presented on the table below.

Personnel Requirements for the Operating Years 2015-2019

Job Position 2015 2016 2017 2018 2019

Manager/Cashier 1 1 1 1 1

Accountant 1 1 1 1 1

General Clerk 1 1 1 1 1

Food Technician 1 1 1 1 1

Laborers 10 10 10 15 15

Driver 1 1 1 1 1

Total 15 15 15 20 20
 D. Qualification Standard

The success of the business relies heavily on the persons which comprises its

workforce. Employees of the business should embody the vision of the entity. The owner

will be the one who will hire the manager of the business. The other positions will then be

hired by the manager with the approval of the owner of the business. The business will

establish the qualifications which are essential to a person in the specific position.

Summary of Qualification Standard

Personal Requirement Working Experience Academic

Job Position Requirement

Manager  Goal oriented and  Has at least 6  Graduate of any

responsible in all the months work related business

undertakings of the experience in the course and has

business field of business a Masters

 Vision-driven in  Preferable if Degree in

managing there is a Business

 Dedicated to the background in Administration

service managing a

 Has a good business

communication skill

 Exercises sound and

sensible judgments

 Has sufficient
 understanding in the

nature and operation

of the business

 Can build rapport

and goodwill to most

of the persons

around.

 Accommodating to

customers

Accountant  Detailed and  Fresh graduates  Graduate of

meticulous are welcome but Bachelor of

 Hardworking having a work Science in

 Working knowledge experience in the Accountancy

of any spreadsheet field of business and must be a

and Database in an advantage Certified Public

System Application Accountant

General  Performs a variety of  Fresh graduates  Graduate of any

Clerk office clerical duties are welcome but 4 year course

utilizing postal having a work

knowledge or experience in the

 experience at a post field of business

office or installation in an advantage

such as a transfer

office, station, AMF,

etc.

Food  Detailed and  Fresh graduates  Graduate of any

Technician meticulous are welcome but Nutrition or

especially in having a work Food related

determining the right experience in the courses

and appropriate field of business

quality of the in an advantage

product

Laborers  Flexible  No working  At least High

 Hygienic experience is School

 Hard working needed graduate

Driver  Alert  Having at least 6  At least High

 Disciplined month School

 Familiar with the experience in graduate

location of the driving

business and its

 market

 Must be a licensed

driver

E. Compensation Package

Workers are to be treated with utmost respect and priority being placed in their

health and welfare.

Position Monthly Employee contribution Employer contribution

wage
SSS Phil PAG- SSS Phil PAG-

Health IBIG Health IBIG

Manager 15,000.00 544.50 187.50 100.00 1,105.50 187.50 100.00

GeneralClerk 12,000.00 435.60 150.00 100.00 884.50 150.00 100.00

Food 10,000.00 363.00 125.00 100.00 737.00 125.00 100.00

Technologist

Laborers 6,325.00 229.60 87.50 100.00 466.15 87.50 100.00

Driver 7,000.00 254.10 87.50 100.00 254.10 87.50 100.00

 Yearly Employee Compensation

Position Net Wage Allowance Subtotal Number Bonus Total

Manager 15,000.00 1,000.00 16,000.00 1 15,000.00 180,000.00

Accountant - - - 1 - 30,000.00

General 12,000.00 800.00 12,800.00 1 12,000.00 144,000.00

Clerk

Food 10,000.00 500.00 10,500.00 1 10,000.00 120,000.00

Technologist

Laborers 6,325.00 200.00 6,525.00 10 6,325.00 75,900.00

Driver 7,000.00 200.00 7,200.00 1 7,000.00 84,000.00

TOTAL 50,325.00 2,700.00 53,025.00 15 50,325.00 633,900.00

LEGAL REQUIREMENTS

 BUSINESS NAME REGISTRATION CERTIFICATE

 Accomplished Business Name Registration Form

 2 pcs. 2x2 colored id picture

 Tax Identification Number (TIN) (optional)

 List of five business names ranked according to preference

 Registration fee of P300.00

  REGISTRATION TO SECURITIES AND EXCHANGE COMMISSION (SEC)

 A Cover sheet

 A Name Verification Slip

 Your Articles of Partnership

 A Registration Data Sheet

 Endorsements/clearances from other government agencies

 Bank Certificate on the capital contribution of the partners

 Proof of Remittance of foreign partners

LOCAL GOVERNMENT REQUIREMENTS

 MAYOR’S OR BUSINESS PERMIT

 Accomplished Business Permit Application Form

 DTI business name certificate

 Sketch of business location

 2 pcs. 2x2 colored ID picture

 Registration fee the amount of which depends on the type of the business

 TAX IDENTIFICATION NUMBER (TIN)

 Accomplished form 1901

 DTI Certificate of Registration of Business Name

 Mayor’s permit

 Registration fee of P500.00

 The RDO shall issue certificate of registration

 SOCIAL SECURITY SYSTEM (SSS)

  Accomplished R1 Form (Employer Registration)

 Accomplished R1A Form (Employment Report)

 DTI Business Permit

 Photocopy of Article of Partnership

 Mayors Permit

 DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)

Business establishments with five (5) or more employees are encouraged

to register with the DOLE for the purpose of monitoring the firm’s compliance with

labour regulations.

 Accomplished Rule 1020 Form

 Lay-out of business location

 Vicinity map
Marketing
Aspect
Marketing Aspect

The market projection of this business is based on the surveys conducted and other

related information gathered from the company. Projection of sales for the five (5) years of

operation is based on the different factors like the market acceptability, level of Satisfaction of

the customers and promotional strategies. We also consider factors like our competitors and the

location awareness of the customers that may affect the market share of the company.

A. Product Description

Pitahaya Juice is made from pure, fresh and naturally grown D ragon fruits.

It has a delicious taste. Each bottle of our juice offers a lot of health benefits for

our customers at unaffordable price thus, making their money worth spending on.

Strengths

 The company is flexible, capable of increasing or reducing its capabilities to

produce depending on the availability of raw materials and market demand.

Weakness

 Selling Pitahaya Juice in the local market and even exports may fluctuate due to

such factors as indigenous raw materials

Opportunities

 Nowadays, most people are shifting for healthy kind of living due to arising of

much kindof diseases and sickness

 Opportunity to extend the dragon fruit juice business because of the

possible demand of the people

 Threats

 Intense competition with both direct and indirect competitors

 Unbounded changing of customers demand and preferences

 The business is affected by sudden change in weather and climate. Negative

changes may cause decline in the availability of supply, thereby negatively

affecting the capacity and sales performance

B. Demand

Demand will vary from year to year in accordance to the population growth of the

consumers. Tarlac is strategic place to establish any business since it is a tourist place, hence

there will be more demand due to influx of people.

Number of Resellers

Year 2009-2013

Year Population Increase/Decrease Percentage

2009 106

2010 113 7 6.2%

2011 120 7 5.8%

2012 126 6 4.8%

2013 134 8 6.0%

Average Increase 5.7%

Source: Tarlac City Hall

*2010=7/113=6.2%

*20117/120=5.8%
 The table summarizes the number of resellers (pasalubong retailers, convenient stores,

sari-sari stores and supermarkets) in Tarlac. It shows an inconsistent increase in number.

Percentage increase is derived by subtracting current population to the previous population

divided by the previous year data. The average increases of the population in these years as 5.7

percent. Because the historical data are inconsistently, increasing statistical straight-line method

will be used to project the population in the next five (5) years.

Projected number of Resellers

Year 2014-2019

Year Population Increase/Decrease Percentage

2014 141

2015 148 7 4.7%

2016 155 7 4.5%

2017 161 6 3.7%

2018 168 7 4.2%

2019 175 7 4.0%

Average Increase 4.2%

Source: Appendix A

*(2015)7/148=4.7%

The above table shows the projected number of reseller (pasalubong retailers, convenient

stores, sari-sari stores and supermarkets) resulted from statistical straight-line method

computation. The average increase from 2014-2019 is 4.2 percent. Based on the results of the
survey questionnaires, 100 percent of the target market is selling and capable to patronize the

products of the proposed business.

Projected Demand in Boxes

2015-2019

Year Demand Total Projected Increase/decrease Percentage

12 oz. 16 oz. 22 oz. Demand in in boxes
boxes
2015 13,599 16,948 10,149 40,696 - 0.0%
2016 14,242 17,750 10,629 42,621 1,925 4.7%
2017 14,793 18,437 11,040 44,270 1,649 3.9%
2018 15,437 19,238 11,520 46,195 1,925 4.3%
2019 16,080 20,040 12,000 48,120 1,925 4.2%
Average Increase 4.3%

Projected Demand in Pesos

2015-2019

Year Demand Price per box Demand in Increase/Decrease Percentage

in Boxes Pesos
2015 40,696 420 17,519,628.0 0 0
2016 42,621 420 18,348,340.5 828,712.5 4.73%
2017 44,270 420 19,058,235.0 709,894.5 3.87%
2018 46,195 420 19,886,947.5 828,712.5 4.35%
2019 48,120 420 20,715,660.0 828,712.5 4.17%
Average Increase 4.28%

The table shows the projected demand in boxes and in pesos respectively. Both show an

increasing demand for Pitahaya Juice with flavor in the next five years. Hence, the product has

high potential in the market. The increase in price of each box is determined through the average

inflation rate of 2.5 or 1.025 in the next five years.

C. Supply

This area of study deals with the indirect competitor’s performance in the distribution of

Pitahaya Juice in the market since there is no direct competitor of Pitahaya Juice business.

Projected Supply of Pitahaya Juice

2014-2019

Year Projected Supply in Supply in pesos w/o Yearly Supply in

Quantity inflation Pesos
2014 19,656 7,154,784 7,154,784

2015 20,632 7,510,048 7,697,799.2

2016 21,608 7,865,312 8,061,944.8

2017 22,444 8,169,616 8,373,856.4

2018 23,420 8,524,880 8,738,002

2019 24,396 8,880,143.42 9,102,147

The table shows the projected supply of Pitahaya Juice with flavored in the next five

years. The increase in supply is determined by the increase in population of the market and the

average inflation rate of 2.5 or 1.025 for the next five years.

D.Demand-Supply Analysis
 After the computation of the demand and supply for the proposed project, the next step is

to compare these two factors to determine whether there is a market for the service to be offered.

The propose project which is the Pitahaya Juice with flavored shows that there is a market

because the demand is greater than supply.

Demand and Supply Analysis in Boxes

2015-2019

Year Demand Supply Supply Unmet Unmet Business Market

% Demand Demand Capacity Share
%
2015 40,696 20,632 50.70% 20,064 49.30% 1,732.50 8.63%
2016 42,621 21,608 50.70% 21,013 49.30% 1,732.50 8.24%
2017 44,270 22,444 50.70% 21,826 49.30% 1,732.50 7.94%
2018 46,195 23,420 50.70% 22,775 49.30% 2,887.50 12.68%
2019 48,120 24,396 50.70% 23,724 49.30% 2,887.50 12.17%

Demand and Supply Analysis in Pesos

2015-2019

Year Demand Supply Supply Unmet Unmet Business Market

% Demand Demand Capacity Share
%
2015 17,519,628 7,697,799.2 43.94% 9,821,828.80 56.06% 727,650 7.41%
2016 18,348,340.5 8,061,944.8 43.94% 10,286,345.70 56.06% 744,975 7.24%
2017 19,058,235 8,373,856.4 43.94% 10,684,378.60 56.06% 762,300 7.13%
2018 19,886,947.5 8,738,002 43.94% 11,148,945.50 56.06% 1,299,375 11.65%
2019 20,715,660 9,102,147 43.94% 11,613,513.00 56.06% 1,328,250 11.44%

The table summarizes the analysis of the projected demand and supply which resulted to

a higher demand than supply. The supply percentage in both tables are computed by dividing
supply to demand and its figure in forms of pesos and box are 43.94 percent and 50.70 percent

respectively.

The unmet demand is the difference between demand and supply. The market share is

computed by dividing the business capacity to unmet demand. The market share in forms of

pesos and in box is not consistent because of these three factors population growth, inflation and

the increase in business capacity due to business expansion after 3 years operation. Population

growth and inflation rate affect the unmet demand every year.

If the orders of the retailers are in wholesale basis, the prices are discounted due to its

bulks orders. On the other hand, the price of the juices is per bottles if the retailers order is on per

price basis.

E. Marketing segmentation

Analysis of the Customer Environment

There are groups of customers for our Pitahaya Juice and the needs are

different from s e g m e n t t o s e g m e n t . I t i s p r i m a r i l y f o c u s e d o n s e g m e n t s

i n c l u d i n g K i d s , A d u l t s , H e a l t h Conscious, and the Youth market. The table shows the

segments for Pitahaya Juice.

Segmentation Benefits Demographics Behaviors Psychographics

Nutrition 25-50 Nutrition Professional

alternative
Adults Health drinkers On the go

Price Taste Parents

drinkers

Health Conscious Health Diet and

 18-25 health Dieters
Nutrition conscious
drinkers Health
Low calories
Professionals
Rich in fiber Long life
vitamins, oriented
minerals, calcium,
and antioxidants

Prevent the
formation of cancer
cells

Manage blood
pressure
Controls cholesterol
levels

Best for diets

Youth Trendy taste 14-18 Taste Not a child yet not

drinkers an adult

Tasty Possibly wanting to

drinkers drink what adults
drink but without
Mobile the adult taste

Target Market

Primary

ADULTS: Between 25 to 50 years old age Professionals and parents

 Become more conscious about their health

 Preferred healthy beverage

 Choose food and beverages that offers extreme health benefits rather than better

taste
  Concern with the price and quality of the product

HEALTH CONSCIOUS: Between 18 to up year’s old: Health professionals and

people whoare conscious or want to improve their health.

 Prevent sickness

 Find solution to their health condition

 Want to live longer

F.Marketing Mix
Product
Pitahaya Juice is made from pure, fresh and naturally grown D ragon

fruits. It has a delicious taste. Each bottle of our juice offers a lot of health benefits

for our customers at unaffordable price thus, making their money worth spending on.

Place

Pitahaya Juice will be having its first location at MH Del Pilar Street, Tarlac

City. We will not place at roadside locations as we promote healthy beverage and we don’t want

our product to be exposed on different toxins and smoke coming from the vehicles. We will

operate on a safe and clean environment.

COMPETITOR ANALYSIS

Competitors Location Product offered Price

12 oz. 16 oz. 22 oz.
1. Coco Royal SM Mango and 29.50 35.50 43.00
Supermarket, Pineapple Juice
Tarl City
2. All Natural Snapple EZ mart Green Apple and 49.00 55.00 62.50
Supermarket, Lemon Juice
Tarlac City
3. Sola Robinson Strawberry and 36.00 42.00 49.50
Supermarket Grapes Juice
4. Angel’s Pitahaya All Dragon 27.00- 33.00- 40.00
Juice supermarkets in Fruit+Mango and 28.00 34.00
 Tarlac Dragon
Fruit+Dalandan
Juice

Pricing

Each bottles of 12 ounce of Pitahaya Juice with flavor is priced at Php 28.00 to

28.00 and each bottles of 16 ounce of Pitahaya Juice with flavor is priced at Php 33.00 to 34.00

and each bottles of 22 ounce of Pitahaya Juice with flavor is priced at Php 40.00. The price is

competitive since indirect competitor’s price range from 29.50 to 62.50. Each box contains 12

bottles.

Cost of Utensils
Apron 700.00
Mouth mask 3, 000.00
Hair net 400.00
Funnel 100.00
Storage box 1,785.00
Plastic gloves 250.00
Measuring spoon 183.75
Knife 400.00
Strainer 96.00
Plastic tray 885.00
Chopping board 850.00
TOTAL 8,649.75
Equipment

Cooler 7,875.00

Packaging and sealing machine 200,000.00

 RAW MATERIALS

Raw materials Price

Dragon Fruit 100.00/kilo

Dalandan 35.00/kilo

Mango 40.00/kilo

Brown sugar 32.00/kilo

Pitahaya Juice (DALANDAN)

Raw materials 12 oz 16 oz 22 oz

Dragon fruit 6.67 8.33 10

Dalandan 2.33 2.92 3.5

Brown sugar 2.13 2.67 3.2

Packaging 5.00 6.00 7.00

Total 16.13 19.92 23.70

Pitahaya Juice (MANGO)

Raw materials 12 oz. 16 oz. 22 oz.

Dragon fruit 6.67 8.33 10

Mango 2.67 3.33 4.00

Brown sugar 2.13 2.67 3.20

Packaging 5.00 6.00 7.00

Total 16.47 20.23 24.20

Costing and Pricing

a.) Direct cost

Raw Materials per 12oz cup (Small)

Ingredients and Packaging:

Dalandan 16.13
Mango 16.47
Raw Materials per 16oz cup (Medium)

Ingredients and Packaging:

Dalandan 19.92

Mango 20.23

Raw materials per 22oz (Large)

Ingredients and Packaging:

Dalandan 23.70

Mango 24.20

b.) Product pricing @ 40% mark-up

Selling Price = [(cost of the item)] / (100 + mark up)] x 100

Small (Dalandan)
 = [(16.13)]/ (100-40 mark up)] x 100

= (16.13/60) x 100

= 26.88

Small (Mango)

= [(16.47)]/ (100-40 mark up)] x 100

= (16.47/60) x 100

=27.45

Medium (Dalandan)

= [(19.92)]/ (100-40 mark up)] x 100

= (19.92/60) x 100

=33.20

Medium (Mango)

= [(20.23)]/ (100-40 mark up)] x 100

= (20.23/60) x 100

=33.72

Large (Dalandan)

= [(23.70)]/ (100-40 mark up)] x 100

= (23.70/60) x 100
 =39.50

Large (Mango)

= [(24.20)]/ (100-40 mark up)] x 100

= (24.20/60) x 100

=40.33

c.) Projected selling price

Pitahaya Juice (DALANDAN)

12 oz. 16 oz. 22oz.

Selling price 28.00 35.00 42.00

Unit cost 16.13 19.92 23.70

Pitahaya Juice (MANGO)

12 oz. 16 oz. 22oz.

Selling price 28.00 35.00 42.00

Unit cost 16.47 20.23 24.20

Promotion

The business shall be promoted by word of mouth, free samples, tarpaulin, and brochures

and through personal selling effort of the business proponent. The budget for this will be Php

50,000. Packaging and labeling will be enhancing more to further promote the product.
People

Laborers hired are trained and supervise keenly in the production so as ensure efficient

and effective production. Also, the Manager is good in public relation especially the resellers in

order to create favorable rapport with them. Besides, he/she has good leadership skills to manage

the entire business production.

Technical
Aspect
 This discusses the procedure and cost of Pitahaya Juice production to be undertaken by

the company in Tarlac City. The technology to be used in the business operation is presented.

Other technical information such as location, building, layout and floor plan, capacity,

scheduling and waste disposal will also be shown. The purpose for writing this is to show that

the product can be produce at a reasonable cost at the propose location of business.

Production Process

The production process of Pitahaya Juice is divided into stages

1. Preparation of raw materials

The processing starts with the receiving of raw materials. Upon delivery,

Dragon fruits, dalandan and mango are inspected visually, sorted and weighted. The Dragon

fruits that fail to meet specifications are rejected and sold at usually lower price 30 minutes will

be consumed in receiving and inspecting the received dragon fruits.

2. Peeling and Washing

The Dragon fruits, dalandan and mango that pass quality control will undergo the

peeling and washing stage to remove any adhering surface dirt and to avoid onset of oxidative

browning. This is done manually. Afterward, the Dragon fruits are placed in perforated plastic

trays. This will take for about 1 hour and 30 minutes.

3. Slicing

The Dragon fruits, dalandan and mango are then sliced manually for about 2-3.5

mm in thickness and placed in another tray separately and ready for arranging.
 4. Arranging

Arrange the slices of dragon fruits and dalandan into a storage box layer by layer

separated with this layer of brown sugar until finished final layer with brown sugar then seal the

container and closed it tight and place the container in dark place at room temperature.

5. Fermentation

Keep fermentation process for 3 to 4 weeks before extraction. Strain the juice and

it is ready to place in the bottle for packaging and sealing process.

A. Equipment, Machinery, Furniture and Fixtures

Factory Furniture, Equipment and Machineries

Packaging and sealing machine is a machine

used in sealing bottles for packaging.

Electric fan is an apparatus with rotating blades

that creates a current air for cooling and

ventilation.
Working chair is a raised surface use to sit on,

commonly for used by one person.

Cooler is a common appliance that consist of a

thermally insulated compartment and a heat pump

where the cooled to a temperature below the

ambient temperature of the room.

Working table is a form of furniture with a flat

and satisfactory horizontal upper surface use to

support objects of interest, for storage, show and

manipulation.

Locker is a narrow cabinet divided by several

compartments that used for keeping the

employees baggage and valuable things.

 Delivery Equipment

Delivery truck is a vehicle suitable for

delivering goods or services to customers.

Office furniture and equipment

Computer set is an electronic for storing and

processing data, typically in binary form,

according to instruction given to it in a variable

program.

Telephone used to communicate with the

customers.
 Office chair is a type of chair that designed for

use at a desk in an office.

Office table is designed for use to transact

business.

Air Conditioner is a major or home appliance

to change the air temperature and humility

within an area.

Office Supplies

Ball pens used in writing or important details

or documents.
 Log book used for customer reservations and

also to record accounting data for the

preparation of their financial statements.

Calculator used for computations.

Carbon receipt paper is commonly used for

invoices, receipts, and any other documents

where duplication is required.

Product tools and supplies

Apron is a protective or decorative garment

worn over the front of one’s clothes.

Mouth mask is protective covering for the

face.

Hair net is a small, often classicised, fine net

worn over long hair to hold it in place.

Funnel used to channel the flow or substance

into a container with small mouth.

Big plastic storage box used to store goods.

Plastic gloves to maintain cleanliness.

Measuring spoon used to measure brown

sugar.

Knife used to cut fruits.

Strainer is a type of sieve typically used to

separate a solid from a liquid.

Plastic Tray is a plastic shallow flat form

designed for carrying things.

Chopping board where fruits can be cut.

Sanitary Supplies

Trashcan is a container for temporary

storing waste.

Broom used to sweep the floor to maintain

cleanliness.

Dust pan used to collect dust and waste.

Soap used or cleansing agent.

Tissue paper is a soft, absorbent piece of

paper, used as a toilet paper, handkerchief

or a towel.
 Factory Furniture, Equipment and Machineries- Depreciation

Description Unit Price Quantity Unit Cost Life in Depreciation

Years
Packaging and 200,000.00 1 200,000.00 10 20,000.00
sealing machine

Electric fan 800.00 4 3,200.00 5 640.00

Working chair 100.00 10 2,500.00 5 500.00

Refrigerator 30,000.00 1 30,000.00 5 6,000.00

Working table 2,000.00 4 8,000.00 5 1,600.00

Locker 5,500.00 1 5,500.00 10 550.00

TOTAL 249,200.00 29,290.00

This table shows the total list of factory furniture and equipment and their quantities

needed for the production of Pitahaya Juice. The total cost of this is Php 249,200.00 and yearly

depreciation of Php29, 290.00.

Delivery Equipment- Depreciation

Description Unit Price Quantity Unit Cost Life in Depreciation

Years
Delivery truck 215,000.00 1 215,000.00 7 30,714.29

This table shows the total list of factory furniture and equipment and their quantities

needed for the production of Pitahaya Juice. This delivery equipment is secondhand thus; the
prices are then lower as purchase than of purchasing new one but ensures good quality. The total

cost of this delivery equipment is Php 215,000.00 and yearly depreciation of Php 30,714.29.

Office furniture and Equipments- Depreciation

Description Unit Price Quantity Unit Cost Life in Depreciation

Years
Computer set 15,000.00 1 15,000.00 5 3,000.00
Telephone 7,000.00 1 7,000.00 5 1,400.00
Office table 2,500.00 1 2,500.00 7 357.14
Office chair 2,000.00 3 4,000.00 7 857.14
Air conditioner 15,000.00 1 15,000.00 5 `3,000.00
TOTAL 43,500.00 8,614.28

This table shows the total list of factory furniture and equipment and their quantities

needed for the production of Pitahaya Juice. The total cost of this cost of this furniture and

equipment is Php43, 500.00 and yearly depreciation of Php8, 614.28.

Office Supplies- Depreciation

Description Unit Price Quantity Unit Cost Life in Depreciation

Years
Ball pens 50.00/box 1 50.00 - -
Log book 30.00 6 180.00 - -
Calculator 250.00 3 750.00 5 150.00
Carbon Receipt 15.00/pad 12 180.00 - -
paper
TOTAL 1,160.00 150.00

This table shows the total list of factory furniture and equipment and their quantities

needed for the production of Pitahaya Juice. The total cost of this Office supplies is Php 1,160.00

and yearly depreciation of Php 150.00.

 Product tools and supplies

Description Unit Cost Quantity Total Cost

Apron 35.00 20 700.00
Mouth mask 150.00 20 3,000.00
Hair net 20.00 20 400.00
Funnel 10.00 10 100.00
Big plastic storage box 595.00 3 1,785.00
Plastic gloves 25.00/pack 10 250.00
Measuring spoon 36.75 5 183.75
Knife 40.00 10 400.00
Strainer 32.00 3 96.00
Plastic tray 295.00 3 885.00
Chopping board 170.00 5 850.00
TOTAL 8,649.75

This table shows all the production tools and supplies needed for production of Pitahaya

Juice. All of these are purchased brand new. The total costs of these are Php 8,649.75.

A. Building

The building is made of cement which has a large floor space which with wall which

divides the production area to other parts.

 Factory and Office Building- Depreciation

Factory Building

Description Cost Life in Depreciation

Years
Allocated Cost

Building (Total Floor Area=)

Rent cost Allocations: Sq.ft.

Renovation Factory Building

Total Office Building

Total

Office Building

Description Cost Life in Depreciation

Years

Building (Total Floor Area=)

Rent cost Allocations: Sq.ft.

Renovation Factory Building

Total Office Building

Total
 B. Location

The production of the Pitahaya Juice will be established MH Del Pilar Street, Tarlac City.

First of all the place is near to its market.

C. Layout

The proposed working area layout was arranged properly. The floor plan was designed

for the workers to have a very conducive and very comfortable area while working. This was

meant to increase the efficiency and effectiveness of the working place and reduce

discomfort and difficulty that would definitely affect productivity.

Floor Plan

Top View
 D. Capacity Scheduling

The business will be established will operate for five days from Monday to Friday. The

regular business hours will be from 8:00am until 5:00pm. Working hours of employees will

depend in their classification. Management and administrative department workers will work

on standard hour basis (8 hours a day) and they have 1 hour for lunch break.

Working Schedule for Management Work

Day Time Hours

Monday 8:00am – 5:00pm 8 hours

Tuesday 8:00am – 5:00pm 8 hours

Wednesday 8:00am – 5:00pm 8 hours

Thursday 8:00am – 5:00pm 8 hours

Friday 8:00am – 5:00pm 8 hours

Total 40 hours

Production workers will work on regular 8 hour shift per day. They will also be given an

hour break which is not included in the workers rate first shift is 8:00am-12:00pm and the second

shift is 1:00pm-5:00pm.

Work Schedule of Laborers

Day Time Hours

Monday 8:00am – 5:00pm 8 hours

Tuesday 8:00am – 5:00pm 8 hours

Wednesday 8:00am – 5:00pm 8 hours

Thursday 8:00am – 5:00pm 8 hours

Friday 8:00am – 5:00pm 8 hours

Total 40 hours

Production Capacity

Year Kilos Shift Total Working Total Recovery Production Production

days Percentage in Kilos in Box
2015 30 2 60 231 13,860 0.75 10,395 7,796.25

2016 30 2 60 231 13,860 0.75 10,395 7,796.25

2017 30 2 60 231 13,860 0.75 10,395 7,796.25

2018 50 2 100 231 23,100 0.75 17,325 12,993.75

2019 50 2 100 231 23,100 0.75 17,325 12,993.75

This table shows the production capacity of the propose business. It has two (2) shifts

with 4,800 kilograms per shift in first three (3) years and 6,000 kilograms in the remaining two

(2) years that will processed and converted into finished products in terms of box.

E. Pre-Operating Expense

Pre-Operating Expense incurred before the formal start of the business.

Bureau of Internal Revenue Fees

Annual Registration fee 500.00

Certification Fee 15.00
Documentary Stamp Tax 15.00 530.00
Department of Trade and Industry-Registration 500.00
Bureau of Food and Drugs (BFAD) Registration 1,000.00
Local Government fees:
License Taxes 10,000.00
City Regulatory fee 800.00
Mayor’s Permit 1,000.00
Barangay Permit 500.00
Sanitary Permit 400.00
Garbage fee 200.00
Health fee 3,000.00
Fire Safety fee 1,000.00
Fire Code fee 1,267.00
Business Plate 300.00
Zoning 500.00
Environment Inspection fee 50.00
Occupational fee 5,000.00 24, 017.00
Total 26, 047.00

F. Waste Disposal

` To promote environmental protection, the resulting ways materials from the production

such as fruit peelings are disposed properly in a large can. They are then sold to farmer as for

fertilizers.

G. Utilities and Other Operating Cost

The utilities expense of the proposed business is composed of water, electricity, and

telephone and internet connection. The assume water expense is Php 2,000.00/month while

the electricity expense is Php 5,000.00/month and the telephone and internet connection

expense is Php 3,000.00/month.

Financial
Aspect
 This chapter focuses on the financial aspects of the projected business specially the major

financial assumptions assumed by the business in preparing its financial status in the first five

years of operation, the project’s capital requirements and source of capital prior to

commencement of operation, and the preparation and analysis of the related financial statements.

Assumptions and estimates are used in the study of the financial aspects of the proposal

business since the core of this study deals with future periods. However, prudence and

reasonableness are observed in making these assumptions and estimates.

A. Determination of Cost of Investments

The investment cost is the sum fixed capital and working capital, with fixed

capital constitute the resource required for constructing and equipping an investment project and

working capital comprising the resources needed to operate the project totally or partially.

Cost of Investment

Property, Plant and Equipment

Land

Building and Renovation

Factory Furniture, Equipment and Machineries

Office Furniture and Equipment

Delivery Equipment

Refundable Deposits

Net Working Capital Requirement

Pre-Operating Expenses
Total

Sources of Financing

Cash Investment-Owner’s Investment

B. Financial Assumptions

1. The financial assumption of this project feasibility study will have five-year

projections.

2. The business operation will start on January 1, 2015 and the financial statements are

prepared every calendar year ending December 31.

14. SSS Premiums payable, PhilHealth Payable, Pag-ibig Premium Payable for the month

of December will be paid January of the following year.

15. The annual income tax will be paid in the month of April of the following year.

16. The company pays the employee’s salaries every end of the month.

17. Utilities Expense will increase ten percent (10%) each year except for the telephone

bills and internet connection. The Utilities for the month of December will be paid in

January of the following year.

18. The business hires an accounting service to Accountants to ensure the proper

Accounting of transactions of the company and to comply with all Government

reportorial requirements.

19. Repairs and maintenance is equal to ten percent (10%) of Depreciation Expense.

20. Taxes and licenses equal to one percent (1%) of Net Sales.
 21. Real property tax is equal to one percent (1%) of the cost of Land and Building.

22. There are no cash withdrawals for the first two years operations. The owner will

withdraw cash equivalent to fifty percent (50%) of the net income every year starting on

its third year of operation.

23. Miscellaneous expense is Php _____________ per annum with a yearly increase of

five percent (5%) to cover unexpected expenses.

24. Other Operating expenses shall be paid in cash when incurred.

25. For the ending inventory 2% for the finished goods and direct materials and 5% for

packaging material.

C. Preparation of the Financial Statement

The Financial Statements are composed of the Income Statement which shows the result

of operation, Balance Sheet to show the financial condition of the business in a particular

moment of time and the Cash Flow Statement which explains the usage of cash of the proposed

venture within the five-year projection.

Financial statements portray the financial effects of transactions and other events by

grouping them into broad classes according to their economic characteristics. These broad

classes are termed the elements of financial. The elements directly related to the measurement of

performance in the Income Statement are income and expenses. The statement of changes in

financial position usually reflects income statement elements and changes in balance sheet

elements.
 This section presents information about all the formal statements necessary in the

evaluation and analysis of the financial status of the proposed establishment for the next five

years.

Projected Balance Sheet

The balance sheet is statement that shows that financial position or condition of an entity

by listing the assets, liabilities, and owner’s equity as at a specific date. The information needed

for the balance sheet items are the net balances at the end of the period rather than the total for

the period as in the income statement. This statement is called a statement of financial position.

Projected Income Statement

The Income Statement is a formal statement showing the financial performance of the

enterprise for a given period of time. It summarizes the revenues earned and expenses incurred

for that period of time. Information about the performance of an enterprise, specifically its

profitability, is required in order to asses’ potential changes in the economic resources that it is

likely to control in the future. It is useful in predicting the capacity of the enterprise to generate

cash flows for its existing resource base.

Projected Cash Flow Statement

The statement of cash flows provides information about the cash receipts and cash

disbursement of an entity during a period. It is a formal statement that classifies cash receipts

(inflows) and (cash flows) into operating, investing, and financing activities.
Operating Activities

These include the transactions and events that entered into the determination of net

income. This includes collection from the customers, payment to suppliers and utility providers,

payment to employees and other expenses related to the operation of the business.

Investing Activities

These are the purchases of noncurrent asset to be used by the business. During the first

year of operation, cash flow from investing activities resulted from payments to acquire the

needed equipment, additional furniture, and fixtures.

D. Financial Analysis

General-purpose financial statements contain historical information about the firm’s

financial condition, operating results, and other business activities. When one reads a company’s

financial statements, he gets an overall picture of the firm’s profitability and financial conditions.

Merely reading such statement however, is not enough when one wants to make informed

judgment or decisions. For decision making purposes, a thorough analysis and interpretation of

such statement is required.

Financial analysis involves the assessments and evaluation of such statement of the firm’s

past performance, its present condition, and future business potentials. The data needed for

analysis and interpretation come mostly from financial statements where key figures are sought

and meaningful relationships are developed and analyzed.

Financial statements serve a s the communication link between the company and the

various interested parties such as creditors, suppliers, customers, investors, and management.
 Financial Ratios and Analysis

Angel’s Pitahaya Juice

Financial Ratios and Analysis

WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

CURRENT WORKING
YEAR CURRENT ASSETS LIABILITIES CAPITAL
2015
2016
2017
2018
2019
*Working Capital is the excess current assets being used freely for the operation of the business.

**E.g. for the year 2015, Php__________ is the excess current assets being used freely for the

regular operation of the business.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES

2015 2016 2017 2018 2019
Current
Assets
Current
Liabilities

*This means that the business has enough current assets to pay for a peso of liability.
**E.g. for year 2015, the business has Php__________ current assets to pay a peso of

liability.

QUICK OR ACID TEST RATIO - ( CURRENT ASSET – INVENTORY / CURRENT

LIABILITIES )
2015 2016 2017 2018 2019
Current
Assets
Less
Inventory
Quick Assets
Current
Liabilities

*This income that the business is enough quick assets to pay for a

**E.g. for year 2015

NETPROFIT MARGIN RATIO – INCOME / NETSALES

2015 2016 2017 2018 2019
Net Income
Net Sales

*This shows the adequacy of the revenue to earn profit. The higher the rate the more profitable

the business is.

**E.g. for year 2015, ____% of the revenue earned went to profit of for a Php______ of sales,

the business earned Php_______ profit.

OPERATING EXPENSE RATIO – OPERATING EXPENSES / NET SALES

2015 2016 2017 2018 2019
Operating
Expense
Net Sales

*This represents the adequacy of revenue to absorb expenses. The lower the ratio the more
profitable the business is.
**E.g. for year 2015, ____% of the sales went to the recovery of expenses or for a Php________
of sales; Php________ goes to recovery of company expense.

DEBT RATIO = TOTAL LIABILITIES / TOTAL ASSETS

2015 2016 2017 2018 2019
Total
Liabilities
Total Assets

*E.g. for year 2015, this means that the liabilities are only ___% of the assets. It also means that
____% of the assets are claimable by the owner making the business very stable.

G. PAYBACK PERIOD
Cost of Investments
 Year Net Cash Inflows from operating activities
2015
2016
2017
2018
2019
Total
Payback Period
*The cost of investments will be recovered on year 2017 of operations.

Projected Financial Statements

Angel’s Pitahaya Juice

Projected Statement of Financial Position

2015 2016 2017 2018 2019

ASSETS
Current Assets:
Cash and Cash Note
Equivalents 1
Accounts Receivable, Note
net 2
Inventories Note
3
Total Current Assets:
Non-Current Assets:
Property, Plant and Note
Equipment, net. 4
Refundable Deposits Note
5
Total Non-Current
Assets

TOTAL ASSETS

LIABILITIES AND
OWNER’S EQUITY
Current Liabilities:
Trade and other Note
payables 6
Total Liabilities
Owner’s Equity
Owner’s Equity-
December 31
TOTAL LIABILITIES
AND OWNER’S
EQUITY

Angel’s Pitahaya Juice

Projected Income Statement
2015 2016 2017 2018 2019
Net Sales Note
7
Less: Cost of Note
Goods Sold 8
Gross Profit
Less: Operating Note
Expenses 9
Income before
tax
Less: Provision Note
for Income Tax 10
Net Income

Angel’s Pitahaya Juice

Projected Statement of Changes in Owner’s Equity

2015 2016 2017 2018 2019

Owner’s Equity,
January 1
Add: Net
Income After
Tax
Total
Less:
Withdrawals
Owner’s Equity,
December 31

Angel’s Pitahaya Juice

 Projected Statement of Cash Flows

2015 2016 2017 2018 2019

Cash flows from
operating activities
Cash received from Note
customers 11
Cash paid for Direct Note
Materials 12
Cash paid for Direct Note
Labor 13
Cash paid for Note
Packaging Materials 14
Cash paid for
Production Supplies
Cash paid for Repair
and Maintenance
Cash paid for Salaries Note
and Wages 15
Cash paid for Other Note
Operating Expenses 16
Cash paid for Utilities Note
17
Cash paid for Note
Contributions 18
Cash paid for Income Note
Tax 19
Net cash provided by
operating activities
Cash flows from
investing activities

Cash paid for Land

Cash paid for
Building
Cash paid for
Furniture’s,
Equipment, and
Machineries
Cash paid for
Refundable Deposits
Net cash used for
investing activities
Cash flows from
financing activities
Cash received from
Owner’s Investment
Cash Withdrawals
Net cash
provided(used) for
financing activities
NET INCREASE IN
CASH
CASH AT
BEGINNING OF
YEAR
CASH AT END OF
YEAR

Note 3

Inventories

2015 2016 2017 2018 2019

Finished Goods
Inventory:

Finished Goods,
Beg.
Cost of Goods
Manufactured
Cost of Goods
Sold
Total

Direct Materials
Inventory:
Direct Materials
Used
Multiply by:

Total

Packaging
Materials
Inventory:
Packaging
Materials Used
Multiply by:

Total

TOTAL
INVENTORIES

Note 4: Property, Plant and Equipment, net.

2015 2016 2017 2018 2019

Land
Office
Building
Factory
Building
Delivery
Truck
Office
Furniture’s,
Equipments
and
Machineries
Total Cost
Less:
Office
Building
Factory
Building
Delivery
Truck
Office
Furnitures,
and
Equipments
Factory
Furniture’s,
Equipments
and
Machineries
Total
Accumulated
Depreciation
NET
BOOKVALUE

Note 5: Refundable

Deposits

2015 2016 2017 2018 2019

Deposit to
Electricity
Deposit to
Water
Deposit to
Telephone
and Internet
Total

Other Payables

2015 2016 2017 2018 2019

Utilities
Payable
Contribution
Payable
Income Tax
Payable
Total

Note 7: Net Sales

(Projected Sales)

2015 2016 2017 2018 2019

UNMET
DEMAND
(Boxes)
Multiply by
Target Share
(Market Share)
Projected Sales
(Boxes)
Multiply by
Selling Price
TOTAL
GROSS
SALES
Less:
Sales Returns
and
Allowances
(5%)
Sales Discounts
(3%)
NET SALES

MONTHLY AVERAGE NET SALES

*Php 5.00 pesos increase on selling price per box.

Note 8: Cost of Goods Sold

2015 2016 2017 2018 2019

GROSS SALES
(Boxes)
Multiply by:
Kilos/Box
GROSS SALES
(Kilos)
Multiply by:
Cost per kilo
TOTAL COST
OF GOODS
SOLD

MONTHLY AVERAGE COGS

Note 9: Operating Expenses

2015 2016 2017 2018 2019

Salaries and
Wages
13th Month
Pay
SSS Premium
Expense
Phil health
Premium
Expense
Pag-ibig
Premium
Expense
Depreciation-
Delivery
Truck
Depreciation-
Office
Furniture
and
Equipment
Depreciation-
Office
Building
Utilities
Expense
Professional
Fees (PFSB &
Co.)
Repairs and
Maintenance
Taxes and
Licenses
Vehicle
Registration
Real
Property
Taxes
Supplies
Expense
Marketing
Expense
Doubtful
Account
Expense
Miscellaneous
Expense
Pre-operating
Expense
TOTAL

Note 10: Provision for Income Tax

2015 2016 2017 2018 2019

Net income
Before Tax
Less:
Personal
Exemption
Taxable
Income
Tax Due is:
Bracket:
Over ______
__________
Plus ___%
Excess over
_________
TOTAL
TAX DUE

Note 11: Cash received from customers

2015 2016 2017 2018 2019
Accounts
Receivable,
Beg.
Net Sales
Total
Accounts
Receivable
Accounts
Receivable,
End.
Total

Note 12: Cash paid for Direct Materials Purchases

2015 2016 2017 2018 2019
Direct
Materials,
Used
Direct
Materials,
End
Direct
Materials,
Beg.
Total

Note 13: Cash paid for Direct Labor

2015 2016 2017 2018 2019
Direct Labor-
Gross
Contributions
(SSS, PHIC,
HCMF)
Employer
Total

Note 14: Cash paid for Packaging

2015 2016 2017 2018 2019
Packaging
Materials,
Used
Packaging
Materials,
End
Packaging
Materials,
Beg.
Total

Note 15: Cash paid for Salaries and Wages and 13th Month Pay (Operating Expense)
2015 2016 2017 2018 2019
Salaries and
Wages, Gross
13th Month
Pay
Total
Employee’s
Contributions
(SSS, PHIC,
HDMF)
Total

Note 16: Cash paid for Other Operating Expenses

2015 2016 2017 2018 2019
Repairs and
Maintenance
Supplies
Expense
Marketing
Expense
Professional
Fees (PFSB
and Co.)
Taxes and
Licenses
Vehicle
Registration
Real Property
Taxes
Miscellaneous
Expense
Pre-operating
Expense
Total

Note 17: Cash paid for Utilities

2015 2016 2017 2018 2019
Utilities
Payable, beg.
Utilities
Expense-
Operating
Expense
Utilities
Expense-
Production
Overhead
Total Utilities
Payable
Utilities
Payable, end.
Total
Note 18: Cash paid for Contributions (SSS/Phil health/Pag-ibig)
2015 2016 2017 2018 2019
Contribution
Payable, beg.
Current
Contributions
Contributions
Payable, end.
Total

Note 19: Cash paid for Income Tax

2015 2016 2017 2018 2019
Income tax
Payable, beg.
Provision for
income Tax
Income tax
Payable, end.
Total

Note 20: Cash paid for Furniture’s, Equipments, and Machineries

2015 2016 2017 2018 2019
Delivery
Truck
Office
Furniture’s
and
Equipments
Factory
Furniture’s,
Equipments
and
Machineries
Total

Note 21: Refundable Deposits

2015 2016 2017 2018 2019
Deposit to
Electricity
Deposit to
Water
Deposit to
Telephone
and Internet
Total

Angel’s Pitahaya Juice

Projected Income Statement
Schedule No.3 Cost of Goods Manufactured
2015 2016 2017 2018 2019
Direct
Materials
Productions
(Kilos)
Multiply by:
cost/kilo
Total Direct
Materials
Used
Direct Labor
Production
Overhead
Cost of
Goods
Manufactured

Cost per Kilo

Assumption:
Yearly increase of ___% for the expected inflation
2015 2016 2017 2018 2019
Material Cost
Multiply by
MATERIAL
COST PER
KILO

Schedule No.4: Direct Materials Cost Per Kilo of Pitahaya Juice

DIRECT QUANTITY UNIT COST TOTAL
 MATERIALS

TOTAL
DIRECT
MATERIALS
*Pitahaya of about ___ Kg can produce ___ g of Ptahaya Juice
**Total Yield - ________ Kilos of Pitahaya
***Cost per kilo - ___ pesos/kilo

Schedule No.5: Production Overhead

2015 2016 2017 2018 2019
Packaging
Materials:

Depreciation:

Electricity
Water
Production
Tools and
Supplies
Repairs and
Maintenance
TOTAL
PRODUCTION
OVERHEAD

Schedule No.6: Salaries and Wages and 13th Month Pay (Operating Expense)
Employee’s Number Monthly Salary Annual Salary 13th Month Pay
Designation
Manager
Clerk
Food
Technologist
Laborers
Driver
TOTAL
*Statutory Minimum Wage in ___________ is Php _________ per day.

Schedule No.7: SSS Contributions (Operating Expense)

SSS
Contributions Monthly Annually
Employer’s Employee’s Employer’s Employee’s
Number Share Share Share Share
Manager
Clerk
Food
Technologist
Laborers
Driver
TOTAL

Schedule No.8 PHIC Contributions (Operating Expense)

Phil health
(PHIC)
Contributions Monthly Annually
Employee’s Employer’s Employee’s Employer’s Employee’s
Designation Number Share Share Share Share
Manager
Clerk
Food
Technologist
Laborers
Driver
TOTAL
 Socio-
Economic
Aspect

SOCIO-ECONOMIC DESIRABILITY
In contemplating to start a business, the proponent should always consider the business

impact to its investor, other stakeholder, and to other sectors of the society. The generation of

profit doest not reasonably justifies the existence of a business but so as to its effect to the

internal, as well as the internal surroundings of the business. Focusing on profit alone without

considering the implication to other sectors of our society will leave the entity impoverished in

the long run.

 In this chapter, the researchers will prove that the intended business will have a positive

and favorable impact on various sector of its environment.

A. Customers/ Consumers

Customers are the most important factors in the success, and even the existence of a

business. A properly manage business will eventually result to a good clientele both in quality

and quantity. With this, the proposed venture will seek to be customer-oriented –that is, the main

thrust is towards customer satisfaction. The proposed business will address the need of its

customers and eventually the consumers. With quality product, the resellers will earn promising

income because of its sales. On the other hand, consumers will enjoy the rewards of eating

delicious snack. Aside from that, they can also get healthy nutrients from the dragon fruit such as

high in fiber, rich in vitamin C, and minerals such as calcium for stronger bones and teeth,

phosphorus for tissue formation and iron for healthy blood. It also contain phytoalbumins, which

have antioxidant properties that help prevent the formation of cancer cells and lycopene is said to

prevent prostate cancer.

B. Employees

Human resources are essential for the success and growth of a business. However, they

should also be treated fairly and in line with that, the business will give to its employee’s

commensurate compensation which will help them improve their economic status.

C. Creditor/ Suppliers

The proposed venture will benefit to both creditors and suppliers since a new business

entrant means a new customer on their part. The proposed business will maintain a good

relationship on these two stakeholders through responsibly meeting obligations on these parties.
D. Owner

The proposed business will be a good source of income by the business owner since he is

the sole owner of the business.

E. Community/ Church

The proposed business will create job in the community, hence, unemployment in Tarlac

City will be lessened. Additionally, the church will benefit through tithes and other contribution

from the ventures income.

F. Government

The proposed business will contribute to the total tax collected in the local government

Tarlac City. Besides, the municipality of Tarlac City will earn from the Business License fee,

Business permit fee, sanitary permit fee and other fees to be paid by the business owner.