City College of Calamba: Business Education Department

CITY COLLEGE OF CALAMBA
Dalubhasaan ng Lungsod ng Calamba

Business Education Department
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Chapter 1
INTRODUCTION
In this generation where technology grows too fast, students can get easily distracted.
They tend to get hooked with gadgets, social media and games which lead their focus away
from studying. Because of this, seat works, quizzes and examinations begin to become
stressful for them.
Some students just hate taking tests. It has nothing to do with knowing or not knowing
the material. Test-taking anxiety is often more about meeting expectations of adults.
Students do not want to disappoint parents or teachers so they worry more about the final
grade rather than the actual test. This is when “blackouts” occur or when students seem to
forget everything they know and sit frozen at their desks.
Private tutoring service can help students to get organized and overcome their feelings of
panic. When students are familiar with the subject matter of the exam, they can walk into a
classroom feeling relaxed, confident and ready to do well. (http://www.educationaltutorial
services.com/how-private-tutoring-helps-students-handle-study-related-stress/retrieved,
08/24/16)
This phenomenon gives the researchers the idea for the proposed project. In this study,
the researchers want to know if a tutorial service will still be feasible to senior high and
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college students. It aims to help accountancy students to prepare for their chosen career
path.
Statement of the Problem
Before conducting this study, the researchers identified problems regarding the proposal.
The study ascertained the feasibility and profitability of the proposed project. Specifically,
this study sought to answer the following:
1. Who will be the target market?
2. Who will be the existing competitor?
3. What will be the demand and supply?
4. What will be the remedy of the company if the demand for tutorial rises?
5. Does the proposed project have potential market share?
6. What strategies should be used to promote and market the service?
7. What are the processes involved in establishing the service?
8. How many days per week and hours per day the business operate?
9. Where will be the location site of the proposed project?
10. What should be the structure of the building?
11. What is the cost of producing the service?
12. What will be the service fee?
13. What should be the form of ownership?
14. Who will be the staff and how many employees would be needed in the service?
15. How much are the salaries and wages of employees?
16. What is the estimated capital?
17. Where will the needed funding come from?

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18. What financial tools and analysis should be used to determine the feasibility?
19. What are the possible effects of this service to the society and economy?
20. Would the proposed business be harmful to the environment?
Significance of the Study
This part shows a brief description about the intentions of this study.
Customers. This study will provide the customer an easy access to a tutorial center and it
would help customers, specifically the students who need a private tutor to have someone
that would help them in their lessons.
Future entrepreneurs. This proposed study will serve as a basis on future entrepreneurs
who wants to start a new business. This will give them additional information on establishing
and operating a business.
Future researchers. This study could be used as a guide and reference to those who are
doing their project feasibility study. It would give them additional information on the proper
procedures needed in conducting a successful research.
City College of Calamba. This study will be added as one of the reference material in the
school library that can be used by the CCC students and students from other school.
The City Government. The government will benefit in this proposed business through
the taxes that would be paid by the entity to the BIR.

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Objectives of the Study
The study sought answers to the stated problems. The researchers identified objectives
that can ease the problems.
1. To determine the target market.
2. To determine the existing competitor.
3. To find out the demand and supply.
4. To know the remedy of the company if the demand for tutorial rises.
5. To know if the proposed project have potential market share.
6. To create strategies to promote and market the service.
7. To explain the processes involved in establishing the service
8. To identify the number of hours and days that the proposed business operate.
9. To find the location site.
10. To describe the structure of the building.
11. To determine the cost of producing the service.
12. To know the service fee.
13. To establish the form of ownership.
14. To identify the employees and quantify the number of employees needed in the
service.
15. To calculate the salaries and wages of employees.
16. To measure the estimated capital.
17. To determine the source of fund in putting up the business.
18. To determine the feasibility of the service using financial tools and analysis.
19. To determine the possible effects of this service to the society and economy.
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20. To know if the proposed service can be harmful to environment.
Scope and Limitations
This study focuses on establishing an accounting tutorial center that will be located in
Mercado de Calamba in Calamba City. It aims to provide an accessible tutorial center to
students of schools nearby Mercado de Calamba: City College of Calamba (CCC), Laguna
College of Business and Arts (LCBA), Saint John Colleges (SJC), and Colegio de San Juan de
Letran - Calamba. The service rendered can widen the client’s knowledge on subjects that
they need to improve on. However, this study would only cater students who are taking up
BS Accountancy, BS Business Administration and Accountancy, Business and Management
students.
Research Methodology
Research Design
The researchers will use descriptive research design like interviews and survey
questionnaires that will help the researchers gather relevant information for the study
conducted.
Research Locale
This study will be located at Mercado de Calamba in Calamba City. It would cater to
individuals both nearby residential areas and schools.

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Population and Sampling Method
The researchers used Slovin’s formula in determining the sample size in which the
surveys and interviews were performed. From the total population of nearby schools in
Mercado de Calamba, the sample size was obtained. Simple random sampling was used in
order to choose the respondents from the population.
Slovin’s Formula
N
n =
1+N (e)2
Where:
N= population of the target market
n= sample size
e= margin of error
Using the Slovin’s formula, with a 5% margin of error, the researchers calculated a total
of 887 respondents from the four schools chosen. The computations are as follows:
City College of Calamba
336
N =
1+336 (0.05)2
n = 183 respondents
Laguna College of Business and Arts
709
N =
1+709 (0.05)2
n = 256 respondents
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Saint John Colleges
254
N =
1+254 (0.05)2
n = 156 respondents
Colegio de San Juan de Letran - Calamba
1,077
N =
1+1,077 (0.05)2
n = 292 respondents
Sources of Data
The primary data came from the inquiries, surveys and interviews with the chosen
schools in Calamba. In addition, the researchers conducted inquiries to get the total
population of the respondents.
Research Instrument
The following are the research materials used in gathering their data:
 Validated survey questionnaire form
 Interviews
Data Gathering Procedure
The following procedures were done in conducting surveys, interviews and site
visitations:
1. Make questions that are related to the study.
2. Conduct a sample survey to people who are not part of the research sample.
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3. Ask which questions are not clear to them.
4. Revise the survey questionnaire.
5. Conduct the survey to the respective respondent.
6. Document all the data gathered.
Analytical Tools
The researchers used the existing formulas to analyze the information gathered in their
study, especially the financial aspect. The formulas that were used are the following:
Payback Period (PP) - determine the period of time needed to recover the initial amount
of investment.
Net Investment
Payback Period =
Annual Cash Returns
Decision criteria:
If Payback Period > maximum allowed period; reject the project
If Payback Period < maximum allowed period; accept the project
Net Present Value (NPV) – discounts all future cash flows to present, using the required
rate of return. It is a net value because all cash inflows are matched against cash outflows.
Net Present Value = Present value of Cash Inflows – Cost of Investment
Decision criteria:
If NPV > Php 0; accept the project
If NPV < Php 0; reject the project

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Internal Rate of Return (IRR) – the relation between the cost of capital and return on
investment. If the IRR is higher than the cost of capital, the project is acceptable, if
otherwise, then the project should be rejected. The higher the IRR, the better. (Management
Advisory Services, Agamata, Franklin T., 2009 edition)
Decision Criteria:
If IRR > r; accept the project
If IRR < r; reject the project
Wherein: r = desired rate of return by the business
Accounting Rate of Return (ARR) – a measure of income or profit over the investment
required to help obtain the income or profit. (Management Advisory Services, Agamata,
Franklin T., 2009 edition)
Accounting Rate of Return = Average Income from Operation

Invested Assets
Profitability Index (PI) – this analytical tool is used by most researchers in order to rank
the acceptable projects with regard to resources used. This tool helps to determine the
priority of the project. The project that has the highest index has the highest priority.
PV of Cash Inflows
Profitability Index =
PV of Net Investment
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Decision criteria:
If PI > 1; accept the project
If PI < 1; reject the project
Definition of Terms
Accounting - it is a service activity, primarily financial in nature.
Researchers - the one conducting the study.
Respondents - the one that are being surveyed.
Tutee - accounting students of the proposed tutorial center.
Tutor - the instructor or teacher of the proposed tutorial center.
Tutorial - a process of learning through one on one teaching.

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Chapter 2
MARKETING ASPECT
Marketing is an activity that provides people’s awareness of goods and services that a
company is offering. It is the act of promoting, distributing and selling products or services
to the market. It is also a skill of making or carrying out plans to achieve the target sales.
This chapter discusses the need for accounting tutorial service in Calamba. It also shows
the demand for the project, the effects in the existing competition in the data and any other
factors that could possibly affect the demand for the business.
Business Name
The researchers named their proposed business as ELICIT Tutorial Center. Elicit means
to get information from someone. This word literally describes the purpose of their business
which is to help students gain more knowledge on the subject that they are having
difficulties. The researchers added a slogan ‘Keep Calm and Hire a Tutor’ to encourage the
students to hire a tutor and be confident that the subject they were struggling will be clear to
their minds. The slogan is added because the researchers noticed that it is a trend to
teenagers or students like the respondents which can easily catch their curiosity.
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Figure 1 shows the business logo of the proposed business.
Figure 1. Business logo
General Market Information
Market Description
The proposed project is a tutorial center that focuses on accounting subjects that would
help the students in their studies. The target market of this proposed business students who
are guided by their parents, whether male or female, taking up Bachelor of Science in
Accountancy (BSA) and Bachelor of Science in Business Administration (BSBA) and senior
high school that are in Accountancy, Business and Management (ABM) strands. The target
schools of this study are City College of Calamba (CCC), Laguna College of Business and
Arts (LCBA), Saint John Colleges (SJC) and Colegio de San Juan de Letran - Calamba
(Letran). These are the target schools because it is near the location of the proposed topic.
Demand Analysis
Demand describes the consumer’s desire and sureness to pay a price for a specific goods
or services. In this study, demand means the likelihood that the target market will avail and
enroll in the tutorial lesson that the business is offering.

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Factors Affecting Demand
1. Price
One of the factors that affect the demand is the price. According to the law of demand,
price and demand has an inverse relationship, thus an increase in price would decrease the
demand and vice versa. However, too much decrease in price would affect the quality of the
service that would be offered. This will result in failing to maintain the consumer’s
willingness to avail the service. Proper pricing is needed to make sure that the service will be
of quality and affordable to the market.
2. Population
Population affect the demand of the service offered. As the need for the service
increases, the population also increases as well as the demand for it.
3. Location
Choosing the business location is important because a good location can increase the
demand for the service. A safe place for the students is needed and it should be near the
target schools for easy access to the students.
4. Source of Money
The capability of the consumer to afford and avail the service will be based on the money
they have. If they have more money the likelihood that they would avail the service is high.
This will become a problem for the students who will not rely on their parents to avail this
service.
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5. Quality of Service
A quality service will be beneficial to a business. This will meet the consumer’s
expectation that will help in increasing the future consumers to avail the service.
Survey Results
Using the population data gathered from the schools, the researchers used the Slovin’s
formula with 5% margin of error in computing the sample size in each school. 887 students
were the respondents of the survey.
Table 1. Number of respondents per school

SCHOOL POPULATION RESPONDENTS
City College of Calamba 336 183
Laguna College of Business and Arts 709 256
Saint John Colleges 254 156
Colegio de San Juan de Letran – Calamba 1,077 292
Total 2,376 887
Based on the survey conducted by the researchers, most of the respondents have not
tried to enroll in a tutorial lesson. Only 156 out of 887 respondents or 17.59% have already
tried enrolling in a tutorial lesson.
Table 2. Number of respondents who have tried to enroll in a tutorial lesson

FREQUENCY PERCENTAGE
RESPONSE
(f) (%)
Yes 156 17.59
No 731 82.41
Total 887 100 %
Although many of the respondents have not tried enrolling in a tutorial lesson, 633 out of
887 respondents or 71.36% will enroll to the accounting tutorial center while 254
respondents or 28.64% are not interested. This shows a very positive demand for the
proposed business
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Table 3. Number of respondents who will enroll in accounting tutorial center
RESPONSE
(f) (%)
Yes 633 71.36
No 254 28.64
Total 887 100 %
The parents of those students who wanted to enroll in the tutorial center are also asked to
answer some questions. One of these is a question asking if they will allow their son or
daughter enroll in the tutorial center. Among the 633 students who wanted to enroll in the
center, 517 or 81.67% students were permitted by their parents.
Table 4. Number of respondents who were permitted by their parents to enroll in

accounting tutorial center
RESPONSE
(f) (%)
Yes 517 81.67
No 116 18.33
Total 633 100 %
Among those who will enroll in the accounting tutorial center, are asked if they prefer
one on one tutorial over group tutorial. The result of the survey shows that respondents who
preferred group tutorial are greater in number compared to those who prefer one on one
tutorial. Table 5 shows that out of 517 respondents, 328 or 63.44% preferred group tutorial.
Table 5. Preferred type of tutorial of respondents

TYPE OF TUTORIAL
(f) (%)
One on one 189 36.56
Group 328 63.44
Total 517 100 %
Table 6 indicates the number of respondents who will pay Php 3,000 – 4,000 per subject
with a maximum of 20 hours per month for the tutorial service. This will help in the pricing
strategy that the researchers would use. More students will not pay this amount compared
with those who are willing. Among the respondents who will enroll in the accounting center,
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280 or 54.16 % will not pay this amount. This will be a basis for the researchers to make the
price lower so more respondents would surely avail the service.
Table 6. Number of respondents who will pay Php 3,000 – 4,000 per subject with a
maximum of 20 hours per month
RESPONSE
(f) (%)
Yes 237 45.84
No 280 54.16
Total 517 100 %
The researchers need to identify the preferred day of the respondents for the tutorial
sessions. Three hundred fourteen respondents or 32.98% wants Saturday to be their tutorial
schedule followed by Friday with 194 respondents or 20.38%. This means that many of the
students have free time and available during this day. Meanwhile, Tuesday and Thursday are
the least preferred day of the respondents with 70 and 46 students or 7.35% and 4.83%
respectively. This result can be used in determining the days that the tutorial center will
operate in a week.
Table 7. Preferred day of the respondents for the tutorial

DAY
(f) (%)
Monday 92 9.66
Tuesday 70 7.35
Wednesday 79 8.30
Thursday 46 4.83
Friday 194 20.38
Saturday 314 32.98
Sunday 157 16.50
Total 952 100 %
Table 8 shows the preferred time of the students in undergoing tutorial lesson, 2pm - 5
pm is the time where most preferred time of the respondent with 248 respondents or
38.51% while 5pm - 8 pm are the least preferred time if the students with 91 or 14.13%.
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Table 8. Preferred time of the respondents for the tutorial
TIME
(f) (%)
8 am – 11 am 213 33.07
11 am – 2 pm 92 14.29
2 pm – 5 pm 248 38.51
5 pm – 8 pm 91 14.13
Total 644 100 %
Table 9 shows the respondents’ preferred subjects which they need to enrich. 347
respondents or 18.22% wants to be tutored in financial accounting followed by advance
accounting with 284 respondents or 14.92%. The least preferred subjects by the respondents
are partnership and corporation with 126 or 6.62% and business law with 109 or 5.72%.
Table 9. Chosen accounting subjects of the respondents for the tutorial

SUBJECT
(f) (%)
Basic Accounting 244 12.82
Partnership and Corporation 126 6.62
Financial Accounting 347 18.22
Cost Accounting 158 8.30
Management Accounting 165 8.67
Advance Accounting 284 14.92
Auditing Theory and Problems 218 11.45
Business Law 109 5.72
Taxation 253 13.29
Total 1,904 100 %
To determine how many tutors the company would hire, the researchers conducted a
survey on the reviewees in the Professional Review and Training Center, Inc. – Calamba
Branch (PRTC – Calamba).
Using the population data gathered from the PRTC - Calamba, the researchers used the
Slovin’s formula with 5% margin of error in computing the sample size. 68 reviewees were
the respondents of the survey.
Table 10. Number of respondents in PRTC – Calamba

NAME POPULATION RESPONDENTS
PRTC – Calamba 82 68
Total 82 68
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Based on the survey, most of the respondents have no job while reviewing in PRTC –
Calamba. Only 4 out of 68 respondents or 5.88% have other job while reviewing in PRTC -
Calamba.
Table 11. Number of respondents who have other job while reviewing in PRTC - Calamba
RESPONSE
(f) (%)
Yes 4 5.88
No 64 94.12
Total 68 100 %
Excluding those who have other work while reviewing, 29 out of 64 respondents or
45.31% will accept the offer of being an accounting tutor while 35 respondents or 54.69%
are not interested.
Table 12. Number of respondents who will accept the offer of being an accounting tutor
RESPONSE
(f) (%)
Yes 29 45.31
No 35 54.69
Total 64 100 %
The researchers also need to determine the available day of the respondents for the
tutorial sessions. Six respondents or 20.69% wants Sunday to be their tutorial schedule
followed by Tuesday, Wednesday, Thursday, and Friday with 5 respondents each or 17.24%.
This means that many of the reviewees have free time and available during this day.
Meanwhile, Monday is the least available day of the respondents with 3 reviewees or 10.34%.
Table 13. Preferred day of the respondents for the tutorial

DAY
(f) (%)
Monday 3 10.34
Tuesday 5 17.24
Wednesday 5 17.24
Thursday 5 17.24
Friday 5 17.24
Saturday 0 0.00
Sunday 6 20.69
Total 29 100 %
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Table 14 shows the available time of the reviewees in working for tutorial lesson, 1pm - 5
pm is the time where most preferred time of the respondent with 18 respondents or 62.07%
while 8am - 12nn is the least preferred time of the respondents with 11 or 37.93%.
Table 14. Preferred time of the respondents for the tutorial

TIME
(f) (%)
8 am – 12 nn 11 37.93
1 pm – 5 pm 18 62.07
Total 29 100 %
Present Demand
Through the survey conducted in the target schools by the researchers, the actual demand
for the accounting tutorial center could be computed. The actual demand is computed
through multiplying the current population to the percentage of the respondents who are
willing to enroll in the accounting tutorial center.
Actual demand = Total Population x 71.36% x 81.67%
Actual demand = 2,376 x 71.36% x 81.67%
Actual demand = 1,386 students
Projected Demand
Using the historical data of the population of students with accounting related subjects
for the past three years in the different target schools, the growth rate is computed. This is
computed using the formula:
Present population – Past Population

Growth rate = X 100
Past Population
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2,211 – 2,204
Growth rate for 2014-2015 = X 100
2,204
= 0.32%
2,283 – 2,211
2,211
= 3.26%
2,376 – 2,283
2,283
= 4.07%
The average growth rate is 2.55%.
Table 15 shows the projected demand for the next five years starting 2017.
Table 15. Projected demand

POPULATION DEMAND
YEAR
(Past Population x 1.0255) (Population x 71.36% x 81.67%)
A.Y. 2017 – 2018 2,437 1,421
A.Y. 2018 – 2019 2,499 1,457
A.Y. 2019 – 2020 2,562 1,494
A.Y. 2020 – 2021 2,628 1,532
A.Y. 2021 – 2022 2,695 1,571
Figure 2 shows the graph of the projected demand from Academic Year 2017 – 2018 up
to Academic Year 2021 – 2022. The calculation of the projected demand in the next 5 years
resulted in an increasing demand.

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1600
1550
1500
1450
1400
1350
1300
A.Y. 2017 – A.Y. 2018 – A.Y. 2019 – A.Y. 2020 – A.Y. 2021 –
2018 2019 2020 2021 2022
Figure 2. Projected demand
Supply Analysis
The supply for the accounting tutorial center is based on the number of tutorial center
that focuses on accounting subjects near the vicinity of the proposed business. However,
according to Business Permits and License Office (BPLO) there is no existing accounting
tutorial center near the proposed location.
Unsatisfied Demand
Unsatisfied demand or demand – supply gap arises when there is no sufficient supply to
satisfy the demand in the market. It is computed through subtracting the supply from
demand. There are tutorial center near the proposed location of the business but it is for
grade school students and not for students taking up accounting related subjects. There are
some accounting tutorial centers in Manila but in Calamba there is none. This means that the
supply for the accounting tutorial is zero. In this case, all the demand will not be satisfied
and the demand which is 1,386 students will be the unsatisfied demand.
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Market Share
The market share is the percentage of the total output that a business could produce over
the total demand in the market. This is used to measure the strength of the business
regarding how big the part they get in the market compared to their competitors. The market
share can be computed through taking the number of students the project could be tutored
and dividing it to the total demand.
Projected Total Output

Market Share = X 100
Total Demand
The table below shows the market share for five years.
Table 16. Market share

YEAR TOTAL OUTPUT DEMAND MARKET SHARE
2017 80 1,421 5.63%
2018 85 1,457 5.83%
2019 90 1,494 6.02%
2020 95 1,532 6.20%
2021 100 1,571 6.37%
Figures 3 to 7 show the percentages of the market share of the proposed business and
the percentages of unsatisfied demand for 2017 up to 2021.
5.63% 5.83%
94.37% 94.17%
Accounting Tutorial Center Accounting Tutorial Center

Unsatisfied Demand Unsatisfied Demand
Figure 3. Market share for 2017 Figure 4. Market share for 2018
Figure 3. Market Share for 2016
ket Share
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6.02% 6.20%
93.98% 93.80%
Accounting Tutorial Center Accounting Tutorial Center

Unsatisfied Demand Unsatisfied Demand
Figure 5. Market share for 2019 Figure 6. Market share for 2020
6.37%
93.63%
Accounting Tutorial Center
Unsatisfied Demand
Figure 7. Market share for 2021
Competitive Position
ELICIT being the first tutorial center here in Calamba City that focuses on major
accounting subjects, has a competitive advantage. Compared with other tutorial services here
in Calamba, the proposed business has a high demand for accounting majors. The owners
and staff of the proposed business understand that accounting subjects has been really hard
to analyze without consulting any professionals. That is the reason why this business has
been proposed to help those who can not easily cope up with the subject matter. Students
who will avail the service will be assured that the tutors and instructors will bring long
patience to teach them. Tutors will also do their best by researching many accounting books
and other references to give their students the right and best answer to their problems.
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Marketing Program
The marketing strategy of a certain business will not be effective without a marketing
program. As an important element of the marketing aspect of the study, marketing program
is used to determine the strategy of the business in promoting the business in the public.
This is also used in obtaining the objectives and goals of the business. The researchers used
the concept of four P’s (product or service, price, place, and promotion).
Present Marketing Practices
Almost all tutorial centers in Philippines used tarpaulins, leaflets, posters and many more
to promote and advertise their services. Advertisement in television is another method in
promotion, but it is seldom used in the field of tutorial services. Others make websites
about their tutorial center. The pricing scheme in tutorial centers varies differently in each
center. It depends upon the kind of tutorial services offered.
Service
The ELICIT Tutorial Center’s goal is to provide quality tutorial service to students. To
achieve this goal, the tutors to be hired are with reasonable and excellent qualifications in
teaching accounting subjects. The center will provide books and references written by well-
known authors. In addition, the center has a staff that will surely accommodate the students
and tutors with full respect. They will also assure the customers that the center is the best
location to study and learn.

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Price
Pricing a certain service is quite hard to decide but the owners of ELICIT will assure the
customers that the price that they will pay is worth it. The researchers set the price to suit the
budget of the students.
Table 17 shows the pricing schedule of the proposed business according to their
preferred type of service. The indicated price is good for a specific subject with a maximum
of 20 hours per month.
Table 17. Prices of the services offered

PRICE/SUBJECT
TYPE OF TUTORIAL OFFERED
( Php )
One on one 3,500 per month
Group ( maximum of 5 members) 2,500 per month
Place or Channel of Distribution
Finding a location for a certain business is important. In this case, the researchers located
the business in a comfortable and accessible place wherein target students can easily go. The
proposed business will be located in Mercado de Calamba.
Figure 8 shows the channel of distribution of the proposed business starting from the
tutors going to the tutees.
TUTORS TUTEES
Figure 8. Channel of distribution

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Promotion
One of the essential keys in business' success in appealing to its market promotion is to
advertise and promote. To launch the business and to be known to others, specifically to
accountancy students, the partners and the staffs are going to visit the four target Colleges.
During the visit, the staff will talk to the necessary officials to ask their permission for
ELICIT to have a booth inside their campus. The booth will be established before the
business is formally launched to attract the students to enroll in the tutorial center. The
partners and the staff will be in charge of the booth. They will conduct simple games and
will give flyers and freebies to the students who will go to the booth. This kind of promotion
will not only be done at the beginning of the business but it will be done continuously every
start of the semester.
ELICIT will also conduct orientation on senior high schools in Calamba. During the
orientation, the mission, vision, and goals of the accounting tutorial center, the benefits that
an accounting students can acquire, and the procedures on how to enroll in ELICIT Tutorial
Center will be explained. After the orientation, each accountancy students will be provided
with brochures and fans with details and information about ELICIT Tutorial Center.
Before the start of the business, tarpaulins will be placed on strategic locations near the
schools and in front of ELICIT. The Center will be having its own website address, where
clients could see detailed description of the services. The website will be
www.elicittutorialcenter.com.ph. An email account and a facebook page will be created open
for inquiries and reservations. During the opening of ELICIT, the first 50 students to enroll
will get a limited edition t-shirt.

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Figure 9 shows the picture of three kinds of promotion items that the business will offer
to advertise their business.
Figure 9. Marketing paraphernalia
Marketing Costs and Expenses
The following costs will be incurred for the marketing and advertising expenses:
Table 18. Marketing costs and expenses

PROMOTION ITEMS PIECES AMOUNT NET OF INPUT TAX
Flyers 500 Php 1,250 Php 1,116
Tarpaulins 10 3,500 3,125
T-shirts 50 7,500 6,697
Fans 250 3,750 3,348
Booths - 5,000 4,464
TOTAL Php 21,000 Php 18,750
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Chapter 3
TECHNICAL ASPECT
One of the essential elements of a feasibility study is the technical aspect which is
necessary to establish the right foundation for the entity’s operation. This chapter focuses on
the technicalities that the entity may face as it continues the operating activities. It also
tackles the basic structure of the project feasibility such as the business location, schedule of
operation, service capacity, supplies sourcing, labor requirement, quality control procedure,
waste disposal and all the cost that could possibly incur to provide the tutorial service.
Service Description
The proposed business will offer one on one and group tutorial services that will focus
on the following accounting subjects: Basic Accounting, Partnership and Corporation,
Financial Accounting, Advance Accounting, Auditing Theories and Problems, Cost
Accounting, Management Accounting, Taxation and Business Law. These subjects are
chosen due to the demand of many BSA, BSBA and ABM students. Aside from this
subjects, ELICIT also provide special offer for subjects like College Algebra, Math of
Investment, Statistics, Calculus, and Economics.

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Characteristics of the Service
Unlike other tutorial service that caters to all students from elementary to college,
ELICIT Tutorial Center focuses on college and senior high school, specifically, BS
Accountancy, BS Business Administration and Accountancy, Business and Management
student offering accounting subjects and a few math-related subjects of their choice to help
them prepare for their potential career path.
Detailed Service Activities
Service Process
ELICIT Tutorial Center will start their operation upon completion of all the necessary
preparation needed to operate. Interested students are expected to go to the center to inquire
about the service and the tutorial director will be the one to assist them. The students will be
informed on the necessary requirement and the payment scheme. Those students who want
to avail of the tutorial service needs to enroll in the center. They need to submit their copy
of grades and give a 50% down payment of Php 1,750 for one-on-one tutorial and Php
1,250 per person for group tutorial. After the partial payment, the students will wait a few
days to process their schedule for the tutorial lesson. This will be based on their free time.
Each student will have five hours per week with a maximum of three hours per day.
30
Inquiry
Enrollment
Scheduling
Tutorial
Figure 10. Service process
Service Supplies, Furniture and Equipment Requirements
The basic requirements for a tutorial center include necessary tutorial supplies
(accounting books, whiteboard, etc.), furniture and fixtures (table, chairs, bookshelf, etc.),
and equipment (air conditioner, desktops, electric fan, etc.). All of which are available in the
market and easy to find and acquire. The details of the tutorial supplies, furniture and
fixtures, and equipment are given below with their corresponding unit price, materials
sourcing and total cost indicated in the following tables.
Tutorial Supplies
Tutorial supplies will be used for the lecture session of the tutors. The supplies like
whiteboard, marker, eraser, etc. are provided to tutors and tutees in case they need the said
supplies in the session. The canvass prices are shown in Table 19 bon the next page.
31
Table 19. Canvass prices of tutorial supplies
UNIT UNIT
UNIT/ ALTERNATIVE ALTERNATIVE
DESCRIPTION COST COST
MONTH 1 2
(Php) (Php)
Whiteboard 6 SM Supplies 820 - -
Whiteboard marker 6 National Book Store 25 - -
Ink refill 6 Maya Book Store 100 - -
Whiteboard Eraser 6 Lazada 78 - -
Yellow Pad 40 Maya Book Store 18 - -
Ballpen 40 National Book Store 11 - -
Accounting Books 17 National Book Store 400 - -
Battery (wall clock) 2 New Star 5 - -
Decision: Alternative 1
Figure 11. Tutorial supplies
Service Furniture and Fixtures
The table below shows the canvass price of service furniture and fixtures needed in the
tutorial center.
Table 20. Canvass prices of service furniture and fixtures

UNIT UNIT TOTAL
ALTERNATIVE ALTERNATIVE
DESCRIPTION UNIT COST COST COST
1 2
(Php) (Php) (Php)
Long Table 4 Abenson 3,199 - - 12,796
Table 3 Ace Hardware 1,399 - - 4,197
Chairs 42 Ace Hardware 359 - - 15,078
Bookshelf 1 FC Home Center 1,895 Ace Hardware 3,199.75 1,895
Receptionist
1 OLX 10,000 - - 10,000
Table
Receptionist
1 Lazada 1,079 - - 1,079
Chair
Office table 3 Lazada 2430 - - 7,290
Office chair 3 Lazada 1,079 - - 3,237
Wall Clock 2 FC Home Center 395 Lazada 399.95 790
TOTAL 56,362
32
Figure 12. Service furniture and fixtures
Service Equipment
The table below shows the canvass price of service equipment needed in the center.
Table 21. Canvass prices of service equipment

UNIT UNIT TOTAL
DESCRIPTION UNIT COST COST COST
1 2
(Php) (Php) (Php)
Air conditioner 3 Abenson 21,898 SM Appliances 22,095 65,694
Electric Fan 2 268 1,111 Abenson 1,328 2,222
Water
1 Abenson 5,058 SM Appliances 5,695 5,058
Dispenser
Desktop 1 Lazada 11,645 SM Appliances 33,990 11,645
Printer 1 Lazada 4,650 - 4,650
TOTAL 89,269
Figure 13. Service equipment

33
Labor Requirements
To properly launch the proposed business, ELICIT Tutorial Center will need one
maintenance personnel and a pool of tutors. The researchers decided to assign a partner as
tutorial director, and as an accountant.
In order to have a pool of tutors, the researchers devised a strategic plan to hire qualified
tutors. The researchers will hire the reviewees from PRTC-Calamba to be the tutor for the
proposed business. Aside from that, the researchers will advertise their need for tutors.
Proper screening will be done to the applicants to test if they are qualified for the job.
Hired tutors are required to submit the copy of their available schedule that will be
matched with the schedule of the tutees.

34
Schedule of Days in Operation
Schedule 1. Schedule of days in operation

Total number of days in a year 365
Less: April - May vacation (excluding holidays) 57
Saturday and Sunday (excluding holidays) 85
Legal Holiday:
New Year (January 1) 1
Holy Week (Maundy Thursday – Easter Sunday) 4
Labor Day (May 1) 1
Independence Day (June 12) 1
National Heroes Day (August 28) 1
Bonifacio Day (November 30) 1
Christmas Eve (December 24) 1
Christmas Day (December 25) 1
Eid’l Fitr (Movable Date) 1
Rizal Day (December 30) 1
Special Holiday:
Additional Non-Working Holiday (January 2) 1
Laguna Day (June 19) 1
Town Fiesta (June 24) 1
All Saint’s Day (November 1) 1
All Soul’s Day (November 2) 1
New Year’s Eve (December 31) 1
Ad’ul Adha (Movable Date) 1 162
TOTAL OPERATING DAYS 203
AVERAGE DAYS IN A MONTH 20
The table below shows the schedule of operation of the business in a week.
Table 22. Schedule of operation in a week

DAY TIME NO. OF TUTORS
8am – 12nn 5
Monday
1pm – 5pm 5
8am – 12nn 5
Tuesday
1pm – 5pm 5
8am – 12nn 5
Wednesday
1pm – 5pm 5
8am – 12nn 5
Thursday
1pm – 5pm 5
8am – 12nn 5
Friday
1pm – 5pm 5
35
Service Schedule
The business will operate eight hours a day and it will be open five days a week. The
center will be open on the morning from 8:00 am to 12:00 noon and in the afternoon from
1:00 pm to 5:00 pm.
Quality Control Procedure
To ensure the quality of the tutorial service that the business will offer, tutors to be hired
should pass the screening by the Tutorial Director. There will be monthly evaluation of
tutors to know if their teaching style is effective. Not only will the tutors be evaluated, the
tutees will also be assessed by looking in to their grades and giving examination every month
to know if their performance in school is improving.
Waste Disposal
Maintaining cleanliness inside and outside the academy is necessary for the business.
Proper waste management is practiced. Excess papers and plastic bottles will be segregated
and it will be sold to the junkshop. Other wastes will be gathered in garbage bags and will be
collected by the garbage collector truck every week.
Tables 23 below and 24 on the next page show the canvass price of maintenance tools
and supplies needed to maintain the cleanliness of the academy.
Table 23. Canvass prices of maintenance tools

UNIT TOTAL NET OF
DESCRIPTION UNIT COST COST INPUT
1 2
(Php) (Php) TAX
Floor Map 1 Ace Hardware 650 - 650 580
Broom with
1 268 162 - 162 145
dustpan
Trash Can 5 268 125 - 625 558
TOTAL 1,437 1,283
36
Figure 14. Maintenance tools
Table 24. Canvass prices of cleaning supplies

UNIT UNIT
MONTH 1 2
(Php) (Php)
Doormat 2 268 90.50 - -
Garbage Bag 150 pieces Mercado de Calamba 0.50 - -
Rags 3 Mercado de Calamba 3.50 - -
Tissue Paper 50 rolls Mercado de Calamba 25.00 - -
Hand soap 20 bottles Mercado de Calamba 63.00 - -
Air freshener 4 Mercado de Calamba 54.00 - -
Figure 15. Cleaning supplies
Business Location
In choosing the business location, the accessibility of the place is considered. The
selected location will be near the target schools which is accessible among the target
students.
The Site
ELICIT Tutorial Center will be established inside the Mercado de Calamba. Figure 16 on
the next page shows the facade of the proposed business location.
37
Figure 16. Business location
Reasons for choosing the site
This place is almost at the center of the three target schools and one ride away from
Letran-Calamba. Also, this place is considered as one of the commercial areas here in
Calamba City so it can easily find customers and customers can easily find the business
location.
Vicinity Map
ELICIT Tutorial Center will be situated in Mercado de Calamba at Pabalan Street
Barangay 5, Calamba City. Figure 17 shows the map where the proposed business will be
established.
38
Figure 17. Vicinity map
Building Structure and Office Layout
Figure 18 shows the layout of the floor plan of the proposed business. Two types of
tutorial (one on one and group) are separated through the use of cubicles. This is to let the
students concentrate on their lessons just like their normal classroom environment. The
researchers also constructed separate office for the general manager, accountant and for the
tutors including their director. There is also a reception area which will serve as the
information desk for inquiries and as waiting area for the enrolled students. Other spaces
were developed for restrooms and for the maintenance storage of the business.
39
4.50 m 3m
Maintenance Storage
3.5 m
Tutor’s Office
2.6 m
Rest Room
3.5 m 2.9 m
2.33 m
2.33 m
Tutorial Rooms
14.20 m
2.33 m
2.33 m
2.33 m
2.33 m
2.30 m
Reception Area
8.20 m
1m = 1cm
Figure 18. Floor plan
Construction/Rental Requirements
The researchers asked the person in charge of the building and they found out that the
rental depends on the size and the location of the building. The size of the building is 14.20
x 8.20 m. With this, according to the person in charge the rent is Php 8,000 per month. The
requirement for the payment will be two months deposit and one month advance.
According to Engr. Vince Olegaerio the building improvement is estimated to be done

40
within two months which required an estimated amount of Php 200,000 which composed of
cubicles with doors made of plywood, painting of cubicles, and comfort room renovation,
installation of equipment such as air conditioner and lights, and labor costs.
Office Supplies
The following office supplies requirements are identified for the operation of the center.
The table below shows the list of office supplies needed for the operation of the center.
Table 25. Canvass prices of office supplies

UNIT UNIT
MONTH 1 2
(Php) (Php)
Bond Paper 1 (ream) Genesaret 100.00 National Book Store 189.75
National Book
Stapler Kit 2 64.75 - -
Store
National Book
Stapler Refill 4 boxes 40.00 - -
Store
Printer Ink Refill 4 bottles Lazada 77.50 - -
National Book
Log book 1 59.75 - -
Store
Barraquia Printing
Official Receipt 10 (pad) 800.00 - -
Press
Water Refill 10 (gallon) H2Flow 35.00 - -
Battery (wall clock) 2 New Star 5.00 - -
Figure 19. Office supplies

41
Utilities Expense
Utilities like electricity and water are necessary in operating the tutorial center. The
computation on the next page shows the estimated electricity cost that will be used in
operating the business. The estimated kwh that would be used per month is 402.12.
Schedule 2. Computation of Monthly Electricity Cost

Generation (402 * 4.9014) 1,970
Transmission (402 * 0.8927) 359
System loss (402 * 0.482) 194
Distribution
Distribution charge (402 * 2.1387) 860
Metering charge
Fixed metering charge 5
Metering charge per kwh (402 * 0.3377) 136 141
Supply charge
Fixed supply charge 17
Supply charge per kwh (402 * 0.5085) 204 221 1,222
Lifeline Discount (402 * 0.1078) -43
Government taxes
VAT
Generation charge (1,970 *0.1039) 205
Transmission charge (359 * 0.004) 1
System loss (194 * 0.0888) 17
Distribution charge (1,222 * 0.12) 147
Subsidies and others (-43 * 0.12) -5 365
Universal Charge
Missionary (402 * 0.1561) 63
Environmental Fund (402 * 0.0025) 1
NPC Stranded Contract Costs (402 * 0.1938) 78
TOTAL 4,209
*Rate per kwh is based on March 2017 billing
Water Charge
The researchers estimated that the monthly water charge of the proposed business will be
Php 1,200.
42
The table below shows the estimated utilities expense that the company will incur for a
year. The internet connection that the academy will have cost Php 1,699 per month and it
has an installation cost of Php 2,300.
Table 26. Utilities expense

MONTHLY ANNUAL ANNUAL COST
DESCRIPTION COST COST* NET OF INPUT
(Php) (Php) TAX (Php)
Electricity 4,209 50,508 45,096
Water 1,200 14,400 12,857
Wi-fi 1,699 20,388 18,204
Wi-fi Installation - 2,300 2,054
TOTAL 87,596 78,211
Supplies Expense
The tutorial supplies comprise the materials needed by the tutor in the lecture. The
monthly and annual consumption is summarized below:
Table 27. Tutorial supplies expense

UNIT MONTHLY ANNUAL ANNUAL COST
UNIT/
DESCRIPTION COST COST COST NET OF INPUT
MONTH
(Php) (Php) (Php) TAX
Whiteboard marker 6 25.00 150.00 1,500 1,339
Ink refill 6 100.00 600.00 6,000 5,357
Whiteboard eraser 6 77.84 467.04 4,670 4,170
Whiteboard 6 819.75 - 4,919 4,392
Yellow Pad 40 18.00 720.00 7,200 6,429
Ballpen 40 10.75 430.00 4,300 3,839
Accounting Books 17 400.00 - 6,800 6,071
Battery for wall clock 2 5.00 10.00 100 89
TOTAL 35,489 31,687
Office supplies monthly and annual consumption is shown in the table on the next page:
43
Table 28. Office supplies expense

UNIT MONTHLY ANNUAL ANNUAL
UNIT/
DESCRIPTION COST COST COST COST NET OF
MONTH
(Php) (Php) (Php) INPUT TAX
Bond Paper 1 (ream) 100.00 100.00 1,000 893
Stapler 2 64.75 - 130 116
Stapler Refill 4 boxes 40.00 - 160 143
Printer Ink Refill 4 bottles 77.50 310.00 3,100 2768
Log book 1 59.75 59.75 598 534
Official Receipt 10 (pad) 800.00 - 800 714
Water Refill 10 (gallon) 35.00 350.00 3,500 3,125
Battery for wall
2 5.00 10.0 100 89
clock
TOTAL 9,388 8,382
Cleaning supplies monthly and annual consumption is shown in the table below:
Table 29. Cleaning supplies expense

UNIT MONTHLY ANNUAL ANNUAL
DESCRIPTION UNIT COST COST COST COST NET OF
(Php) (Php) (Php) INPUT TAX
Doormat 2 90.50 181.00 362 323
Garbage Bag 150 pieces 0.50 - 75 67
Rags 3 3.50 10.50 105 93
Tissue Paper 50 rolls 25.00 1,250.00 12,500 11,161
Hand soap 20 bottles 63.00 1,260.00 12,600 11,250
Air freshener 4 54.00 216.00 2,160 1,929
TOTAL 27,802 24,823
Depreciation Expense
In computing the depreciation of the furniture and equipment that will be used in the
office and service, the researchers used the straight-line method. They used the formula:
Acquisition Cost – Salvage value

Annual Depreciation =
Estimated Useful Life
Table 30 shows the total depreciation expense for a year.
44
Table30. Depreciation expense
NET
ANNUAL
OF SALVAGE DEPRECIABLE
DESCRIPTION COST DEPRECIATION
INPUT VALUE COST
(Php)
TAX
Service
56,362 50,323 5,032 45,291 9,058
Furniture
Service
89,269 79,704 7,970 71,734 14,347
Equipment
Leasehold
200,000 178,571 - 178,571 35,714
Improvement
TOTAL 345,631 308,598 295,596 59,119
*Useful Life is 5 years.
Service Cost
Service cost is the expense associated with having another person perform a valuable task
for which specialized expertise may be required.(http://www.businessdictionary.com/
definition/service-cost.html,9/27/16).
The table at the next page shows the total service cost that would be incur by the
academy for the year excluding the direct labor cost for the tutors.
Table 31. Total annual service overhead costs

EXPENSES ANNUAL COST (Php)
Utilities 78,211
Depreciation 59,119
Tutorial Supplies 31,687
Cleaning Supplies 24,823
Office supplies 8,382
Salaries expense 86,400
13th month pay 7,200
SSS,PhilHealth and Pag-Ibig 8,708
Marketing 18,750
Miscellaneous 1,280
Taxes and Licenses 12,705
Rent 96,000
Total 433,265
Estimated overhead cost Total Cost

=
per student 80 students x 10 months
Estimated overhead cost 433,265

=
per student 80 students x 10 months
45
Estimated overhead cost per student = Php 542
Service cost for one on one tutorial
Monthly Service cost per Estimated overhead cost per student

=
student + Direct Labor (for one on one)
Monthly cost per student = Php 542+ Php 2,000
Monthly cost per student = Php 2, 542
Service cost for group tutorial
Monthly Service cost per Estimated overhead cost per student

=
student + Direct Labor (for group)
Monthly cost per student = Php 542+ Php 1,000
Monthly cost per student = Php 1, 542

46
Chapter 4
MANAGEMENT AND ORGANIZATION ASPECT
The success of a business depends on an effective management procedure. It requires
delicate planning and skilled personnel to come up with the systematic organization that is
suitable for the operation of the entity. The management aspect tackles the necessary
information in building the organization of the proposed business. It includes the type of
business organization, organizational goals, pre-operating procedures, company policies, and
manpower requirements as well as the compensation that will be given. All of these must be
set up properly to achieve optimum effectiveness.
The Pre-Operating Period
The Pre-Operating period covers the time of implementation of the feasibility study
conducted up to the actual service operation. It includes sourcing of capital, business
registration requirements, acquisition of assets and hiring of personnel. This is a critical
period for the business because this will ensure the legality of the proposed business.
Business Registration Requirements
In order for the business to operate legally, the business should be registered in the
necessary government agencies. The following are the requirements in registering a business:
47
SEC Registration
1. Name verification slip
2. Articles of Partnership
3. Endorsement/Clearance from the government agencies if applicable
Mayor’s Permit
1. Barangay Business Clearance
2. DTI (for sole proprietorship)/SEC (for partnership and corporation)
3. Community Tax Certificate
4. Proof of ownership (tax declaration)/Contract of Lease
5. Picture of Business Establishment (inside and outside showing business signboard)
6. Location Clearance from City Planning and Development Office
7. Sanitary Permit to Operate from City Health Office
8. Fire Safety Inspection Certificate from Bureau of Fire Protection
9. Building clearance from Building regulatory
10. Authorization letter or Special Power of Attorney from the owner in case the
applicant is only a representative (with picture and contact number of the owner)
11. Other necessary clearances as may be required.
BIR Registration
Photocopy of SEC Registration
Mayor’s Permit
BIR Registration Fee
Registration of Official Receipt
SSS Registration
48
Photocopy of Articles of Partnership
Employer’s Data Record
Initial or Subsequent list of employees
Table 32. Breakdown of business permits

BUSINESS PERMITS AMOUNT (PHP)
Securities and Exchange Commission:
Articles of Partnership 1,000
By-Laws 500
Reservation Fee 40
Bureau of Internal Revenue:

Annual Registration Fee 500
VAT registration Fee 500
Certification Fee 15
Documentary Stamps 15
Local Requirements:
Mayor’s Permit 2,500
Barangay Clearance 1,550
Business plate 200
Business plate sticker 40
Business tax 500
Cedula 25
Garbage Fee 5,000
Health and Sanitary Fee 500
Total Fees 12,885
The Business Organization
ELICIT Tutorial Center is a form of partnership. Article 1767 of the Partnership Law
embodies the definition of partnership. It states that “by the contract of partnership, two or
more persons bind themselves to contribute money, property or industry to a common fund
with the intention of dividing the profits among themselves [Guerrero, P.P, & Peralta, J.F.
Advance Accounting (2013 ed., Vol. 1)]. The researchers decided to form partnership because
they are easy to form and they allow several individuals to combine their talents and skills in
a particular business venture.

49
Composition of Organizational Structure
ELICIT Tutorial Center will use a line type of organizational structure. It is composed of
Tutorial Director, a pool of Tutors, Accountant, and a Maintenance Personnel.
Tutorial Director
Maintenance
Tutors Accountant
Personnel
Tutees
Figure 20. Organizational structure
Job Qualifications, Duties and Responsibilities
Tutorial Director. One who oversees the tutors and has a control or direction to them and
to the company itself.
 To be filled by one of the partners.
His duties and responsibilities are:
 Oversees the efficient and effective day-to-day operation of the organization,
specifically of the tutors.
 Coaches and mentors tutors accordingly to improve performance.

50
 Recruits, interviews and selects tutors that have the right technical and professional
abilities to help further the organization’s mission.
 Analyzes report, gives recommendations and develops strategies on how to improve
quality and quantity related in the business.
 Leads to achieve business an organization goals, visions and objectives.
 Involves in employee selection, career development, succession planning and
periodic training.
 Works out compensations and rewards.
 Responsible for the growth and increase in the organizations’ finances and earnings.
 Identifies problems, create choices and provide alternative courses of actions.
 Maintains records retention and retrieval policy.
 Maintains system to safeguard all student records.
 Serves as custodian of records management in the center.
 Maintains and implements student admission.
 Receives payment by cash.
 Issues receipts, refunds, credits, or change due to customers.
He will receive a monthly salary of Php 13,000.
Tutor. He teaches students of tutorial session about accounting subjects.
The qualification of a Tutor in the proposed business must be:
 Either male or female, 20 years old and above.
 A bachelor’s degree in Accountancy.

51
 CPA is an advantage
 Must have excellent communication skills.
 Must have excellent accounting-related knowledge.
 Must be encouraging, creative, and flexible with the ability to motivate and inspire
students.
 Ensures that tutees receive adequate individual instruction and attention.
 Assists students academically in whichever subject(s) the students are seeking
improvement.
 Evaluates tutee’s progress in order to see where improvements can be made.
 Motivates his students and provide them confidence.
 Helps students develop study skills specifically tailored to his/her tutees’ needs when
there is no one around to help them out.
 Provides tutees with study skills and good study habits.
The one on one tutor will receive Php 100 per hour and the group tutor will receive Php
50 per person per hour.
Accountant. He maintains financial reports, records and general ledgers; prepare and
analyze budgets; and perform general bookkeeping.
 To be filled out by one of the partners.

52
 Performs administrative duties such as filing, transcriptions and production of forms.
 Meets with the clients to discuss their financial matters, such as equipment and tax
liability.
 Responsible for the billing activities, such as accounts payable and accounts
receivable.
Maintenance Personnel. He is in-charge of maintaining the cleanliness of the facility of the
building and its environment.
The qualification of a Maintenance Personnel in the proposed business must be:
 Either male or female, 25 years old and above.
 At least high school graduate
 Maintains the cleanliness of the environment
 Collects garbage in the trash can everyday
Benefits and Incentives
Labor force is one of the most needed in the success of a business. Any business would
not operate if there are no employees especially in this proposed business where tutors are
really needed in order to make tutorial service. In order to make the tutors and other staff
efficient, productive and loyal, giving them motivation is a good strategy. Giving proper
53
wage is important but giving them additional benefits and incentives would motivate and
urge them to do their best all the time. Some benefits and incentives that they would receive
include the following:
 SSS, Philhealth and Pag-ibig Contribution
 13th month pay
 Sick leave
 Vacation leave
Gantt Chart
Figure 21 shows the length of time needed for each activity to be done before and during
operations.
MONTH
ACTIVITIES
1 2 3 4 5 6 7 8 9 10 11 12
Project Feasibility Study
Business Organization
Formation and Licensure
Selection of Site and
Renovation
Equipment Acquisition and
Installation
Ordering of Supplies
Hiring and Training of

Workers
Promotion
Normal Operation
Figure 21. Gantt chart

54
Chapter 5
FINANCIAL ASPECT
Good financing is the life of every business. Without it, the entity will not be able to
operate properly. The financial aspect of the proposed project focuses on the source of
capital and the cost of the project as well as the viability of the business. Total cost and
probable revenues are taken into consideration by preparing financial statements such as
Statement of Financial Position, Income Statement, Statement of Changes in Partners’
Equity and Statement of Cash Flows.
Financial Assumptions
1. The company’s calendar year ends December 31.
2. The working capital included in the project cost is for three months.
3. Contingency fund is approximately 3.26% of the total project cost.
4. The Tutorial Director and the Accountant withdraw their salaries
5. The partners will withdraw 40% of the balance of profit after deducting salaries.
6. The inflation rate used is 2.7% based on the current average inflation rate.
7. Rent is composed of one month deposit and one month advance.
8. The financial statements have been projected on a five-year period basis.
9. The company is maintaining supplies at year end which is good for one month.
10. Purchases are all on cash basis.

55
11. The desired rate of return of the business is 12%.
12. The business is VAT registered.
13. Market share per year is:
2017 5.63%
2018 5.83%
2019 6.02%
2020 6.20%
2021 6.37%
Cost of the Project

To establish the business, each partner will contribute a sum of money. The total project
cost includes the acquired fixed assets, leasehold improvements, working capital costs of
three months and the pre-operating expenses. The computation of total project cost which is
Php 900,000 is as follows:
Project Cost
Fixed Assets:
Leasehold Improvement P 200,000
Service Equipment (see Table 21) 89,269
Service Furniture and Fixtures (see Table 20) 56,362 345,631
Working Capital:
Supplies (see Schedule 3) P 19,970
Miscellaneous Expense (see Schedule 4) 1,437
Labor Cost (see Schedule 5) 423,600
SSS, Philhealth and Pag-Ibig Employer Contribution 2,178
(see Schedule 6)
Utilities Expenses (87,596 x 3/12) 21,899 469,084
Pre operating expenses:

Business Licensing and Registering (see Table 32) P 12,705
Prepaid Rent 24,000
Marketing Costs and Expenses (see Table 18) 21,000 57,705
Total P 872,420
56
Contingency ( 3.0644444% of total project cost ) 27,580
Total Project Cost P 900,000
Schedule 3. Supplies
Tutorial Supplies (35,489 x 3/12) P 8,872
Office Supplies (9,388 x 3/12) 2,347
Maintenance supplies ( 27,802 x 3/12) 6,951
TOTAL P 18,170
Schedule 4. Miscellaneous Expense
Maintenance Tools P 1,437
Schedule 5. Labor Cost for three months

POSITION NUMBER OF PERSONEL MONTHLY COST
Accountant 1 12,000
Tutorial Director 1 13,000
Maintenance personnel 1 7,200
Tutor for one on one tutorial 29 58,000
Tutor for group tutorial 51 51,000
Total 141,200
Total for 3 months 423,600
Schedule 6. SSS, Philhealth and Pag-ibig Employer contribution

NO. OF SSS PHILHEALTH PAG-IBIG TOTAL
POSITION
PERSONNEL (Php) (Php) (Php) (Php)
Tutorial director 1 - - - -
Accountant 1 - - - -
Maintenance
1 526 100 100 726
Personnel
Total Monthly
526 100 100 726
Cost
Total for 3
2,178
months
Source of Investment
The total cost of the project amounting Php 900,000 will be contributed equally by the
partners. The contribution of each partner is listed on the next page.

57
Contribution of partners:
de Vera P 300,000
Martin 300,000
Tamolang 300,000
Total P 900,000
Highlights of Projected Financial Statements
A financial statement (or financial report) is a formal record of the financial activities and
position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to
understand. They typically include basic financial statements, accompanied by a management
discussion and analysis. In this study, the financial statements include income statement,
balance sheet and statement of cash flows.
Income Statement
An income statement is a financial statement that reports a company's financial
performance over a specific accounting period. Financial performance is assessed by giving a
summary of how the business incurs its revenues and expenses through both operating and
non-operating activities. It also shows the net profit or loss incurred over a specific
accounting period. The purpose of the income statement is to provide the financial earnings
performance of the entity over a specific period of time.
The projected net income derived from the business operation for the first five years are:
for the first year – Php 364,834, second year – Php 400,886, third year – Php 426,950, fourth
year – Php 466,142, and fifth year – Php 574,002.

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Statement of Financial Position
The statement of financial position is another name for the balance sheet. It is one of the
main financial statements and it reports an entity's assets, liabilities, and the difference in
their totals. The amounts reported on the statement of financial position are the amounts as
of the final moment of an accounting period.
The total assets for the five year of the business are: for the first year – Php 995,519,
second year – Php 1,064,230, third year – Php 1,118,627, fourth year – Php 1,195,026, and
fifth year – Php 1,316,484.
Liabilities for the first five years of operation are: for the first year – Php 56,619, second
year – Php 64,798, third year – Php 71,825, fourth year – Php 77,339, and fifth year – Php
91,996
And the partners’ equities of the business for the first five years are: for the first year –
Php 938,900, second year – Php 999,432, third year – Php 1,046,802, fourth year – Php
1,117,687, and fifth year – Php 1,224,488.
Cash Flow Statement
Cash flow statement, also known as statement of cash flows, is a financial statement that
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 is concerned with the flow of cash in and out of the business. The
statement captures both the current operating results and the accompanying changes in
the balance sheet. The cash maintained by the company for the first five years are: for the
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first year – Php 739,551, second year – Php 866,789, third year – Php 979,889, fourth year –
Php 1,114,990, and fifth year – Php 1,295,150.
Statement of Partners’ Equity
The statement of partner’s capital is a financial report that shows the changes in total
partners’ capital accounts during an accounting period. In other words, it’s a financial
statement that reports the increases and decreases in the partners’ accounts over the course
of a period.
The partners’ equities of the business for the first five years are: for the first year – Php
938,900, second year – Php 999,432, third year – Php 1,046,802, fourth year – Php
1,117,687, and fifth year – Php 1,224,488.
Financial Analysis
Financial analysis is the process of evaluating businesses, projects, budgets and other
finance-related entities to determine their performance and suitability. Typically, financial
analysis is used to analyze whether an entity is stable, solvent, liquid or profitable enough to
warrant a monetary investment. In this study, the financial analysis include payback period,
accounting rate of return, net present value, internal rate of return and profitability index.
Payback Period
The payback period is the length of time required to recover the cost of an investment.
The payback period of a given investment or project is an important determinant of whether
to undertake the position or project, as longer payback periods are typically not desirable for
investment positions. The amount of money will be invested is expected to recover within 1
year, 10 months and 28 days or 1.91.

60
Net Present Value
Net Present Value (NPV) is the difference between the present value of cash inflows and
the present value of cash outflows. NPV is used in capital budgeting to analyze the
profitability of a projected investment or project. A positive net present value indicates that
the projected earnings generated by a project or investment exceed the anticipated costs.
Generally, an investment with a positive NPV will be a profitable one and one with a
negative NPV will result in a net loss. The NPV of future cash flows of the proposed
business is Php 951,112. Since NPV resulted in positive amount, the project is acceptable.
Internal Rate of Return
Internal rate of return (IRR) is a metric used in capital budgeting measuring the
profitability of potential investments. Internal rate of return is a discount rate that makes
the net present value (NPV) of all cash flows from a particular project equal to zero. The
higher a project's internal rate of return, the more desirable it is to undertake the project. The
IRR of the proposed business is 37% or 0.37.
Accounting Rate of Return
The accounting rate of return (ARR) is the amount of profit, or return, an individual can
expect based on an investment made. Accounting rate of return divides the average profit by
the initial investment to get the ratio or return that can be expected. ARR does not consider
the time value of money, which means that returns taken in during later years may be worth
less than those taken in now, and does not consider cash flows, which can be an integral part
of maintaining a business. The higher the ARR, the better the project will be. The return on
investment of the proposed business is 0.50.

61
Profitability Index
Profitability index (PI), also known as profit investment ratio (PIR) and value investment
ratio (VIR), is the ratio of payoff to investment of a proposed project. It is a useful tool for
ranking projects because it allows one to quantify the amount of value created per unit of
investment. A ratio of 1.0 is logically the lower acceptable measure on the index. If any ratio
is lower than 1.0, it would indicate that the project’s PV is less than the initial investment.
Since the proposed business has the profitability index of 2.06, the project could be
accepted.
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Chapter 6
SOCIO-ECONOMIC ASPECT
The purpose of the socio-economic aspect of the feasibility study is to explain how the
proposed business will provide serviceability to the residents of a community. This chapter
discusses the benefits of the proposed business to the barangay, municipality, national
government, and to its economy.
Benefits to the Society
Barangay Government
ELICIT Tutorial Center will give additional income to the owner of the place by paying
the monthly rent of P 8,000 and also to the barangay by paying the right taxes like barangay
permits and licenses amounting to P 1,575 (see Chapter 4).
Municipal Government
The company will be providing the municipal government the right taxes like mayor’s
permits and licenses, and others with the total amount of Php 8,740. The business will also
help on reducing the unemployment rate of 0.02% (21/1,100) by hiring 21qualified
employees within the municipality.

63
National Government
The national government will also receive benefits from the proposed business. Like the
other government sectors, the business will pay for the right taxes like the income tax, and
the like. For Security and Exchange Commission (SEC), P 1,540 will be paid. For Bureau of
Internal Revenue (BIR), P 1,030 will have to be paid. The income tax to be paid for the first
five years of operation are: first year, P 156,357; second year, P 171,808; third year, P
182,979, fourth year, P 199,775; fifth year, P 246,001.
Benefits to the Economy
The economy’s unemployment rate will be reduced by because of the company’s hiring
initiative. This will also help to strengthen the Gross National Product (GNP) of the
country.
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Chapter 7
ENVIRONMENTAL ASPECT
The environmental aspect of project feasibility study discusses how the proposed project
will affect the environment. This aspect aims to identify what activities and waste products
related to the business that would harm the environment and precautionary measures that
should be taken up to minimize these negative effects.
In any business, waste products cannot be prevented in its normal days of operation.
Unlike in other business, accounting tutorial center has minimal waste. Most of the waste
that would be produced in this business are papers and other materials needed in studying.
Some bottles and container from the drinks and foods that the students and tutors will bring
inside the center are also considered waste in the business.
To minimize these wastes, proper waste management will be observed inside the center.
Proper segregation of recyclable and non recyclable materials will be done. Waste like papers
and plastic bottles will be collected separately by the maintenance personnel. These wastes
will be sold in the junkshop. The non recyclable wastes will also be collected inside the
garbage bag and after a week it will be collected by the municipal garbage truck.
65
The implementation of this waste disposal will be strictly observed to ensure the
cleanliness not only inside the center but also to help minimize the waste in the
environment.
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Chapter 8
SUMMARY, CONCLUSION AND RECOMMENDATION
With the increase in the demand of students taking up accounting-related courses in
Calamba City, it is likely that there will be an increase in the number of students having hard
time finishing this course. This study sought to establish an accounting tutorial center in
Calamba.
The proposed business hopes to provide an accessible accounting tutorial center for
students to have someone helping in their studies, with the expectation of having higher
income at the same time. This study will also help as guide for people interested in opening a
new type of service business.
The researchers used the qualitative descriptive research method. A survey was
conducted on the students taking accounting-related courses and their parents. The
respondents were composed of 887 students in different selected schools near the vicinity of
the proposed business.
1. Marketing Aspect
The prospective customers of the business are students who are guided by their parents,
whether male or female, taking up Bachelor of Science in Accountancy (BSA) and Bachelor
of Science in Business Administration (BSBA) in college and senior high school that are in
67
Accountancy, Business and Management (ABM) strand. The target schools of this study are
City College of Calamba (CCC), Laguna College of Business and Arts (LCBA), Saint John
Colleges (SJC), and Colegio de San Juan de Letran – Calamba. Junior Philippine Institute of
Accountants (JPIA) organization of each college schools that offers accounting tutorial and
independent accounting tutors who offered same kind of services in a home-based session,
therefore, are the possible competitors in the market which can affect the demand for the
proposed project. Based on the survey results, the demand of the proposed project is
58.23% and the supply is 0 since there is no available business offering the same kind of
accounting tutorial service center in Calamba. The center provides pool of tutors to supply
the increasing demand of tutorial in accounting and if necessary, a plan for Tuesday and
Thursday operation may also taken into consideration. The proposed business carries a
possible of 5.63% of market share. In order to promote the business, partners and staffs are
going to visit the four target colleges to conduct seminar or orientation about the business
and its services offered. Fliers and brochures are distributed to the students during the
seminar. Customer’s satisfactions towards the tutorial center will also spread through word
of mouth thus, promoting the business.
2. Technical Aspect
The business will start by advertising their tutorial center to the target market. Interested
students are expected to go to the center to inquire about the service. Those students who
want to avail the tutorial service needs to enroll in the center. The students will wait a few
days to process their schedule for the tutorial session. After a week, the tutorial session will
start. The business will operate 10 hours a day and it will be open five days a week. The
tutorial center will be closed during Saturday and Sunday. The center will be established
68
inside the Mercado de Calamba at Pabalan Street, Barangay 5(POB.), Calamba City. Two
types of tutorial (one-on-one and group) are separated through the use of cubicles. The
structure of the building constructed separate office for the tutorial director, accountant and
the tutors. There is also a reception area, rest rooms and maintenance storage. The service
cost of the center is composed of the benefits that will be received by employees, their
compensation and other indirect cost necessary for the business to operate. Service fee will
be based according to the type of tutorial that students preferred (like one-on-one or group
tutorial) and to be charged in an hourly and monthly basis.
3. Management and Organization Aspect
The business organization of the project will be in a form of partnership. The researchers
decided to choose this type of ownership because of certain advantages it offers. The center
will need one tutorial director, one accountant, ten tutors, and one maintenance personnel.
The tutorial director will receive monthly salary of Php 13,000; Accountant will receive Php
12,000; one-on-one tutor will receive Php 100 per hour and group tutor will receive Php 50
per person per hour; and maintenance personnel will receive Php 7,200.
4. Financial Aspect
The initial investment needed to put up the business is Php 900,000 which will be shared
by the partners. The financial tools and analysis applied are payback period, net present
value, internal rate of return, accounting rate of return and profitability index of the project.
5. Socio-Economic Aspect
The proposed project would provide additional employment and will contribute
additional taxes to the government although minimal, can also be part of the government
funding.
69
6. Environmental Aspect
The tutorial center has minimal wastes, thus the proposed business is not harmful to the
environment. To maintain the cleanliness, proper waste management will be observed inside
the center.
Conclusions
The conclusions that can be drawn from the research are the following:
1. There is a great demand for accounting tutorial center, and this will increase with the
growing population of students taking accounting-related courses in Calamba City.
2. Since the demand for the accounting tutorial is high, the center needs to provide
pool of tutors to answer the demand.
3. The proposed business would benefit the tutors, whose students from PRTC, are
not only for additional income but also contribute a high chance of passing the
board exam.
4. It will be easier for the students to attend tutorial session if the center will be situated
in an accessible location. Proximity and accessibility of the business location are the
permanent consideration of the researchers.
5. Compared with other business such as in manufacturing or production, waste that
the proposed project may produce is lesser.
Recommendations
1. This research focused only in selected schools near the vicinity of the proposed
business, based on this study this type of business is in demand and profitable
therefore for the future researchers interested in establishing same type of business
70
in Calamba, the researchers recommend to conduct related research that will include
all the schools in Calamba.
2. The proposed business may expand its capacity to accommodate the increase in
demand in the future.
3. If the demand for tutorial rise, a plan for Saturday and Sunday operation may also be
taken into consideration.
4. In order to achieve the maximum number of students who would enroll in the
proposed business, the center needs to conduct best strategic plan in promoting the
proposed business.
5. The business expansion needs greater cost of investment, so accepting outside
investor is highly recommended. This could make the business ready for the
expansion.
6. The proposed business may hire CPA as tutor in the future.

71
REFERENCES
Books:
Guerrero, P.P, & Peralta, J.F. Advance Accounting (2013 ed., Vol. 1)
Agamata, Franklin T. Management Advisory Services (2009 ed.)
Internet:
http://www.businessdictionary.com/definition/service-cost.html,9/27/16
http://www.educationaltutorialservices.com/how-private-tutoring-helps-students-handle-
study-related-stress/retrieved, 08/24/16

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CITY COLLEGE OF CALAMBA

Dalubhasaan ng Lungsod ng Calamba

stressful for them.

forget everything they know and sit frozen at their desks.

classroom feeling relaxed, confident and ready to do well. (http://www.educationaltutorial

Statement of the Problem

this study sought to answer the following:

1. Who will be the target market?

2. Who will be the existing competitor?

3. What will be the demand and supply?

5. Does the proposed project have potential market share?

6. What strategies should be used to promote and market the service?

7. What are the processes involved in establishing the service?

9. Where will be the location site of the proposed project?

10. What should be the structure of the building?

11. What is the cost of producing the service?

12. What will be the service fee?

13. What should be the form of ownership?

15. How much are the salaries and wages of employees?

16. What is the estimated capital?

17. Where will the needed funding come from?

20. Would the proposed business be harmful to the environment?

Significance of the Study

that would help them in their lessons.

and operating a business.

procedures needed in conducting a successful research.

the taxes that would be paid by the entity to the BIR.

Objectives of the Study

that can ease the problems.

1. To determine the target market.

2. To determine the existing competitor.

3. To find out the demand and supply.

5. To know if the proposed project have potential market share.

6. To create strategies to promote and market the service.

7. To explain the processes involved in establishing the service

9. To find the location site.

10. To describe the structure of the building.

11. To determine the cost of producing the service.

12. To know the service fee.

13. To establish the form of ownership.

15. To calculate the salaries and wages of employees.

16. To measure the estimated capital.

17. To determine the source of fund in putting up the business.

Scope and Limitations

Mercado de Calamba in Calamba City. It aims to provide an accessible tutorial center to

BS Accountancy, BS Business Administration and Accountancy, Business and Management

individuals both nearby residential areas and schools.

order to choose the respondents from the population.

N= population of the target market

City College of Calamba

Laguna College of Business and Arts

Colegio de San Juan de Letran - Calamba

population of the respondents.

 Validated survey questionnaire form

Data Gathering Procedure

1. Make questions that are related to the study.

4. Revise the survey questionnaire.

5. Conduct the survey to the respective respondent.

6. Document all the data gathered.

If Payback Period > maximum allowed period; reject the project

If Payback Period < maximum allowed period; accept the project

Net Present Value = Present value of Cash Inflows – Cost of Investment