A&J GLASSWARE

I. EXECUTIVE SUMMARY

Aiming an elegant, secure home and energy efficient amidst the rapidly changing outlook
for having a fancy thing for their respective homes, the issue of energy consumption that is
now being worsen by the fact that our environment is changing, most of the families now is
having a big problem in addressing this issues. The A & J glassware introduced the products
that not only provide fancy and elegant glass for windows and for accessories in the homes of
the client but also insuring the security of the home, the quality of the product that could last
for a long term use.

A & J Glassware is a small retail outlet for glass. It provides high quality glass for any type
of window from a small house to a big company. Also ensures the quality of the product due
to the durability of the materials used.

II. MISSION/VISION STATEMENT AND GOALS

A. Mission Statement

The A & J glassware mission is to be recognized as a leading manufacturer of a

high quality glass for windows and accessories, parts and services. Aiming to
achieve operational excellence, industry- leading customer satisfaction and superior
in financial performance.

B. Objectives

 To ensure that A&J Glassware’s operation can satisfy and can meet the
demand and needs of every customer.
 To develop glassware products that can sustain throughout and grow.
 To develop any selling techniques that can prosper the operation of the store.
C. Keys to Success
 Practice positivity, and always provide good service to the costumers.
 Consider the area of the store’s location. A good spot is always key.
 Unique, durable and standard products are produced.

III. BUSINESS SUMMARY

A. Facilities and Equipment

a. Facilities
 Space for the store and enough stock room for the storage of the
products.

b. Equipment
 Trucks for purchasing the products.
 Service trucks for product delivery.

B. Management and Organization

a. Organizational Chart

OWNER

MANAGER of FINANCE AND

ACCOUNTING

MANAGER of SALES AND

MARKETING SALESMAN

MANAGER of CHECKER
PRODUCTION AND
DISTRIBUTION DISPATCHER

DRIVER
 b. Management
 Owner that owns the store and transactions of the store and manages
the whole business.
 Manager of the Sales and Marketing responsible for the annual sales
and marketing plans of the store.
 Manager of the Finance and Accounting responsible for the finances
and accounting issues and budgets of the store.
 Manager of the Distribution and Production responsible for the
management of delivery and production of the products.
 Dispatcher and Service driver for the delivery of the products.

IV. PRODUCTS AND SERVICES

A. Products

 Glass windows
 Glass doors

V. FINANCIAL PLAN

A. Capital

 Capital is Php. 4,000,000.00 borrowed in a bank to be paid after 3

years with an effective interest rate of 10% compounded annually.
 Worth Php. 5,324,000.00 after 3 years.
B. Capital Breakdown

o Purchasing of Retail Products

ITEM NO. COST/ITEM AMOUNT

Alu-Clad Window 100m2 Php 800/m2 Php 80,000.00
Sash Window 200m2 Php 900/m2 Php 180,000.00
Double-Glazed
100m2 Php 700/m2 Php 70,000.00
Windows
Triple-Glazed
150m2 Php 800/m2 Php 120,000.00
Windows
Jalousie 100m2 Php 900/m2 Php 90,000.00
French Doors (12mm
50 sets Php 3,500 per set Php 175,000.00
thick)
Half Doors
50 sets Php 4,000 per set Php 200,000.00
(12mm thick)
TOTAL: Php 915,000.00

o Truck
 Brand-new Truck worth 2,250,000.00 with a down-payment of Php
450,000.00 to be paid yearly for the period of 3 years with an interest
of 12%.
 Php 749,428.17 a year for 3 years
 The capitalized cost of the truck is Php 4,417,807.61 money worth
12% if its annual operational maintenance is Php 150,000.00, useful
for 24 years and salvage value worth Php 300,000.00.

 Service Truck
 Brand-new Truck worth 1,500,000.00 with a down-payment of Php
300,000.00 to be paid yearly for the period of 3 years with an interest
rate of 10%.
 Php 482,537.76 a year for 3 years
  The capitalized cost of the service truck is Php 2,936,719.83 money
worth 10% if its annual operational maintenance is Php 85,000.00,
useful for 24 years and a salvage value worth Php 220,000.00.

 Store Space (stuck room included)

 A rent to own a store space worth Php 1,100,000.00 to be paid monthly
for 2 years with a down payment of Php 200,000.00 and 6% interest
rate.
 Php 71,711.10 a month for 2 years.

 Store Renovation
 Php 100,000.00

 Emergency Fund
 Php 60,000.00 to be invested with a 15% interest and will be
withdrawn after 5 years.
 Php 120,681.43 total money invested after 5 years.

Purchase of Retail Products ……………………………………… Php 915,000.00

Truck Down-Payment …………………………………………... Php 450,000.00
Service Truck Down-Payment …………………………………... Php 300,000.00
Store Space Down-Payment …………………………………….. Php 200,000.00
Store Renovation ………………………………………………... Php 100,000.00
Emergency Fund ………………………………………………... Php 120,681.43
TOTAL: Php 2,085,681.43
C. PROJECTIONS
 Retail (sold for a month)

ITEM NO. COST/ITEM AMOUNT

2 2
Alu-Clad Window 100m Php 900/m Php 90,000.00
2 2
Sash Window 200m Php 1000/m Php 200,000.00
Double-Glazed
100m2 Php 800/m2 Php 80,000.00
Windows
Triple-Glazed
150m2 Php 900/m2 Php 135,000.00
Windows
Jalousie 100m2 Php 1000/m2 Php 100,000.00
French Doors (12mm
50 sets Php 5,000 per set Php 250,000.00
thick)
Half Doors
50 sets Php 5,000 per set Php 250,000.00
(12mm thick)
TOTAL: Php 1,105,000.00

 Projected Profit and Earnings

Monthly Expenses
Purchase of Retail Products …………… Php 915,000.00/month
Taxes …………………………………... Php 5,000.00/month
Electric Bill ……………………………. Php 4,000.00/month
Water Bill ……………………………… Php 1,000.00/month
Space Rental (24 months) ……………… Php 71,711.10/month
Salaries and Wages …………………….. Php 50,000.00/month
Monthly OM of the Equipment …...…… Php 10,000.00/month
Total Expenses: Php 1,056,711.10/month
Yearly Expenses
Instalment for Trucks (3 years) ………… Php 1,231,965.93/year

Total Expenses per Month: Php 1,056,711.10

Total Expenses on the First and Second Year: Php 12,680,533.20
 Monthly Income: Php 1,105,000.00
Yearly Income: Php 13,260,000.00

Profit in First Year: Php 579,466.80

Profit for Two Years: Php 1,158,933.60

Total Expenses in Third Year: Php 2,216,965.93

Profit in Three Years: Php 12,201,967.67

Earnings after 3 years: Php 6,877,967.67

SOLUTIONS
 For Capital:
 Php 4,000,000.00 borrowed in a bank to be paid after 3 years
with an effective interest rate of 10% compounded annually.
Given: Solution:
𝑖𝑛 𝑖𝑛
P= 4,000,000 ER= (1 + 𝑛 )𝑛 − 1 F=P(1 + 𝑛 )𝑚
𝑖𝑛 0.1 3
ER= 10% OR 0.1 0.1= (1 + 1 )1 − 1 F=4,000,000(1 + )
1

N= 1 ; m= 3 in= 0.1 F= Php. 5,324,000

1. Truck
 Brand-new Truck worth 2,250,000.00 with a down-payment of Php
450,000.00 to be paid yearly for the period of 3 years with an interest of
12%.
Given: Solution:
(1+𝑖)𝑛 −1
P= 2,250,000 – 450,000 P=R⌊ ⌋
𝑖(1+𝑖)𝑛

(1+0.12)3 (0.12)
P=1,800,000 R=1,800,000( )
(1+0.12)3 −1

n= 3 R= Php. 749, 428.17

 in= 0.12 or 12%

 Find the capitalized cost of the truck to be used for 24 years. If the annual
operation and maintenance is Php. 150,000.00, the salvage value is Php.
300,000.00 and the money is worth 12%.
Given:
(1+𝑖)𝑛 −1
OM= 150,000 F=R⌊ ⌋ FC=2,528,870.42+450,000
𝑖
(1+0.12)3 −1
i= 0.12 or 12% n= 24 F= 749,428.17⌊ ⌋ FC=Php. 2,978,870.42
0.12

SV=300,000 F= Php. 2,528,870.42

𝑂𝑀 𝐹𝐶−𝑆𝑉
Capitalized Cost = FC + +
𝑖 (1+𝑖)𝑛 −1
150,000 2,978,870.42−300,000
Capitalized Cost = 2,978,870.42+ +
0.12 (1+0.12)24 −1

Capitalized Cost= Php. 4,417,807.61

2. Service Truck
 Brand-new Truck worth 1,500,000.00 with a down-payment of Php
300,000.00 to be paid yearly for the period of 3 years with an interest rate
of 10%.
Given: Solution:
(1+𝑖)𝑛 −1
P=1,500,000-300,000 P=R⌊ ⌋
𝑖(1+𝑖)𝑛

(1+0.1)3 (0.1)
P=1,200,000.00 R=1,200,000( )
(1+0.1)3 −1

n=3 R= Php. 482,537.76

in=0.1 or 10%

 Find the capitalized cost of the service truck to be replaced after 24 years.
If the annual operation and maintenance cost is Php. 85,000.00, the
salvage value is Php 220,000.00 and the money is worth 10%.
Given:
(1+𝑖)𝑛 −1
OM= 85,000 F=R⌊ ⌋ FC=1,597,199.99+300,000
𝑖
(1+0.1)3 −1
i=0.1 or 10% n=24 F=482,537.76⌊ ⌋ FC=Php. 1,897,199.99
0.1
SV=220,000 F=Php. 1,597,199.99
𝑂𝑀 𝐹𝐶−𝑆𝑉
Capitalized Cost = FC+ +
𝑖 (1+𝑖)𝑛 −1
85,000 1,897,199.99−220,000
Capitalized Cost = 1,897,199.99+ +
0.1 (1+0.1)24 −1

Capitalized Cost=Php. 2,936,719.83

3. Store Space (stuck room included)

 A rent to own a store space worth Php 1,100,000.00 to be paid monthly
for 2 years with a down payment of Php 200,000.00 and 6% interest rate.
Given: Solution:
(1+𝑖)𝑛 −1
P=1,100,000-200,000 P=R⌊ ⌋
𝑖(1+𝑖)𝑛

(1+0.06)24 (0.06)
P=900,000 R=900,000( )
(1+0.06)24 −1

i=0.05 or 5% R= Php. 71,711.10

n=24
4. Emergency Fund
 Php 60,000.00 to be invested with a 15% interest and will be withdrawn
after 5 years.
Given: Solution:
P=60,000 F=P(1 + 𝑖)𝑛
i=0.15 or 15% F=60,000(1 + 0.15)5
n=5 F=Php. 120,681.43
 ITEMS
SAMPLE PICTURES
*Alu-Clad Window *Sash Windows

*Triple Glazed Windows *Double Glazed Windows

*Half Door *French Door

*Wooden Windows