Pizza Bomb Feasib Compiled

Far Eastern University
Nicanor Reyes St. Sampaloc, Manila

Institute of Accounts, Business and Finance
PIZZA BOMB
A Feasibility Study Presented to the Faculty of Department
of Accountancy
In Partial Fulfillment of the

Requirements for the Degree of
Bachelor of Science in Accountancy
Submitted to:
Rodolfo M. Ledesma, CPA, MBA
By:
Baui, Cacey Jean F.

Cruz, Alyanna L.
De Guzman, Judie Anne I.
Dela Cruz, Lesly G.
Faustino, Andrew John C.
Lorete, Lovely Queenie J.
Mongcal, Joshua Blaw G.
Peralta, Fe Diana A.
Tremucha, Raymond A.
December 2019
PIZZA BOMB GROUP 2
CERTIFICATION
This feasibility study entitled “Pizza Bomb”, prepared by Cacey Jean F. Baui,
Alyanna L. Cruz, Judie Anne I. De Guzman, Lesly G. Dela Cruz, Andrew John C.
Faustino, Lovely Queenie J. Lorete, Joshua Blaw G. Mongcal, Fe Diana A.
Peralta, and Raymond A. Tremucha has been examined and recommended for
oral examination.
RODOLFO M. LEDESMA, CPA, MBA

Adviser
_______________________________________________________________
APPROVAL
Approved by THE PANEL OF EXAMINERS on Oral Examination on December 11,

2019 with the grade of _____.
__________________________
_____________________________ ___________________________
Accepted in partial fulfillment of the requirements for the degree Bachelor of

Science in Accountancy.
EARL JOSEPH BORGOÑA, CPA, MBA, CFMP, LLB

Dean
ACKNOWLEDGMENT
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PIZZA BOMB GROUP 2
This feasibility study may not be possible without the people who supported and
assisted us. We would like to express our sincere gratitude and appreciation to
the following people:
To Mr. Rodolfo Ledesma, our feasibility study adviser, for sharing his knowledge
by guiding us in enhancing the content of the study.
To all the students from different universities and colleges for their
contributions, by taking time and effort in answering the demand survey
questionnaire.
To the business whom the proponents surveyed for the willingness in giving
inputs to the supply survey questionnaire which provided valuable information.
To the proponents’ friends and batchmates for the support they have given us
throughout the study.
To the proponents’ families for always encouraging and providing
continuous financial and moral support.
Above all, to Lord God Almighty, for divine protection and guidance all the time
and for endless blessings bestowed upon us.
TABLE OF CONTENTS
I. Project Summary
• Background of the Study ........................................................................ 2
• Business Name/Logo ............................................................................. 3
• Brief Description of the Product .............................................................. 3

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PIZZA BOMB GROUP 2
• Form of Business Organization .............................................................. 4
• Business Location .................................................................................. 4
• Statement of the Problem ....................................................................... 5
• Investment Cost ..................................................................................... 7
• Mode of Financing .................................................................................. 7
II. Marketing Aspect
• Market Description ................................................................................. 9
• Target Market ....................................................................................... 11
• Sampling Area ...................................................................................... 12
• Sampling Size ...................................................................................... 12
• Sampling Method ................................................................................. 14
• Survey Results ..................................................................................... 15
• Demand Analysis ................................................................................. 47
• Supply Analysis .................................................................................... 53
• Demand Gap ........................................................................................ 58
• SWOT Analysis .................................................................................... 62
• Product Pricing ..................................................................................... 63
III. Management Aspect
• Form of Business Organization ............................................................ 67
• Legal Requirements and Steps to Register the Business .................... 67
• Project Time Table (Gantt Chart) ………….………………………….......76
• Organizational Chart ............................................................................ 77
• Manpower Requirements ..................................................................... 77
• Organizational Policies ......................................................................... 86
• Internal Control ................................................................................... 105

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PIZZA BOMB GROUP 2
IV. Technical and Production Aspect
• Purchase Process .............................................................................. 109
• Pre-production Process ...................................................................... 111
• Production Process ............................................................................ 112
• Selling Process/Flowchart Description ............................................... 113
• Store and Office Schedule ................................................................. 116
• Production Capacity Table Description ....................................... 117-118
• Business Location .............................................................................. 119
• Façade of the Building ........................................................................ 119
• Vicinity Map ........................................................................................ 119
• Floor Plan of the Business ................................................................. 120
• Property, Plant and Equipment .......................................................... 123
• Product Cost ...................................................................................... 141
• Direct Materials Requirement ............................................................. 141
• Direct Labor Cost ............................................................................... 144

• Schedule of Overhead and Expenses ................................................ 145
V. Financial Aspect
• General Financial Assumptions .......................................................... 151
• Chart of Accounts ............................................................................... 156
• Total Project Cost ............................................................................... 158
• Investment of the Owner .................................................................... 159
• Form of Financing .............................................................................. 159
• Pre-operating Statement of Cash Flows ............................................. 160
• Pre-operating Statement of Financial Position ................................... 161
• Break-even Analysis........................................................................... 162
• Comparative Projected Statements of Comprehensive Income ......... 164

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PIZZA BOMB GROUP 2
• Comparative Projected Statements of Changes in Equity .................. 165
• Comparative Projected Statement of Financial Position..................... 166
• Comparative Projected Statement of Cash Flows .............................. 168
• Supplementary Notes ......................................................................... 170
• Financial Statement Analysis ............................................................. 181
VI. Socio-economic Aspect
• Description of the Industry ..................................................................... 183
• Production .............................................................................................. 183
• Employment ........................................................................................... 183
• Taxes ..................................................................................................... 183
• Health Matters ....................................................................................... 184

VII.
Appendices…………………………………………………………………..185
VIII. Curriculum Vitae……………………………………………………………220
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PIZZA BOMB GROUP 2
LIST OF FIGURES
Figure No. Title Page No.
1 Business Logo 3
2 Facade of the Building 4
3 Vicinity Map 5
4 Distribution of the Respondents According to Gender 15
5 Distribution of the Respondents According to University 16
6 Distribution of the Respondents According to Age 17
7 Source of Income of Respondents 18
8 Weekly Spending Allowance for Food of Respondents 19
9 Whether or Not Respondents Eat Pizza 20
10 Respondent’s Qualities to Consider in Buying Pizza 21
11 Respondent’s Frequency of Eating Pizza 20
12 Preferred Time of Respondents to Purchase Pizza 21
13 Preferred Day of Respondents to Purchase Pizza 22
14 Time Respondents are Willing to Wait for their Order 23
15 Willingness of Respondents to Try Pizza Bomb 24
16 Pizza Bomb’s Flavors that Respondents are Willingness to 25
Try
17 Number of Pizza Bombs Consumed by Respondent in One 26
Seating
18 Average Spending of Respondents on a Regular Order of 27
Pizza Bombs
19 Whether or Not Respondents Eat with Companion/s 28
20 Companions of Respondents When Eating Outside 29
21 Preferred Service of Respondents 30
22 Respondent’s Amenities to Consider When Choosing Fast 31
Food Store
23 Rankings of Respondent’s Preferred Marketing Strategies 32
vi
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PIZZA BOMB GROUP 2
Figure No. Title Page No.

24 Location of the Business 33
25 Number of Years in the Business 34
26 Number of Competitors During the Start of the Business 35
27 Number of Competitors Added per Year 36
28 Number of Hours Operating in a Day 37
29 Number of Days Operating in a Week 38
30 Days with the Greatest Number of Customers 39
31 Days with the Least Number of Customers 40
32 Time of the Day with the Greatest Number of Customers 41
33 Time of the Day with the Least Number of Customers 42
34 List of their Target Market 43
35 Units Sold per Day 44
36 SWOT Analysis 60
37 Project’s Timetable 73
38 Organizational Chart 74
39 Purchase Process 105
40 Pre-production Process 107
41 Production Process 108
42 Selling Process 109
43 Vicinity Map 115
44 Facade of the Building 115
45 Floor Plan of the Business 116
46 Overview of Floor Plan 117
47 Store Area 117
48 Production Area 118
49 Overview of Production Area 118
LIST OF TABLES
Table No. Title Page No.
vi
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PIZZA BOMB GROUP 2
1 List of Direct and Indirect Competitors 8

2 Distribution of the Respondents According to Gender 14
3 Distribution of the Respondents According to University 15
4 Distribution of the Respondents According to Age 16
5 Source of Income of Respondents 17
6 Weekly Spending Allowance for Food of Respondents 18
7 Whether or Not Respondents Eat Pizza 19
8 Respondent’s Qualities to Consider in Buying Pizza 20
9 Respondent’s Frequency of Eating Pizza 21
10 Preferred Time of Respondents to Purchase Pizza 22
11 Preferred Day of Respondents to Purchase Pizza 23
12 Time Respondents Are Willing to Wait for their Order 24
13 Willingness of Respondents to Try Pizza Bomb 25
14 Pizza Bomb’s Flavors that Respondents Are Willing to Try 26 15
Number of Pizza Bombs Consumed by Respondent in One
Seating 27
16 Average Spending of Respondents on a Regular Order of
Pizza Bombs 28
17 Whether or Not Respondents Eat with Companion/s 29
18 Companions of Respondents When Eating Outside 30
19 Preferred Service of Respondents 31
20 Respondent’s Amenities to Consider When Choosing Fast
Food Store 32
21 Rankings of Respondent’s Preferred Marketing Strategies 33
22 Location of the Business 34
23 Number of Years in the Business 35
24 Number of Competitors During the Start of the Business 36
25 Number of Competitors Added per Year 37
26 Number of Hours Operating in a Day 38
27 Number of Days Operating in a Week 39

28 Days with the Greatest of the Number of Customers 40
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PIZZA BOMB GROUP 2
29 Days with the Least Number of Customers 41

30 Time of the Day with the Greatest Number of Customers 42
31 Time of the Day with the Least Number of Customers 43
32 List of their Target Market 44
33 Units Sold per Day 45
34 Historical Student Population 46
35 Projected Student Population 47
36 Determination of Frequency 48
37 Historical Demand 49
38 Projected Demand 50
39 Historical Supply 52
40 Average Customer Per Year 53
41 Projected Supply 54
42 Historical Values 56
43 Historical Demand-Supply Analysis 57
44 Projected Demand-Supply Analysis 58
45 Determination of Capacity 59
46 Comparison of Pizza Prices 62
47 Proposed Pricing for Pizza Bomb 62
48 Summary of Registration Fees 73
49 Salary Scale 82
50 Work Time Schedule 84
51 Minor Offenses and Sanctions 99
52 Major Offenses and Sanctions 100
53 Production Schedule 112
54 Store & Office Schedule 113
55 Production Capacity Table for Pizza Bomb 115
56 Manpower Schedule/Shifting 115
57 Production Machinery and Equipment 120
58 Production Furniture and Fixtures 121
59 Office Machinery and Equipment 122
60 Office furniture and fixtures 123
61 Store machinery and equipment 124
62 Store furniture and fixtures 126
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PIZZA BOMB GROUP 2
63 Production Tools 127

64 Office Tools 128
65 Store Tools 130
66 Kitchen Supplies 130
67 Office Supplies 132
68 Store Supplies 135
69 Leasehold Improvements 136
70 Direct Material for Dough 138
71 Direct Material for Three-Cheese 139
72 Direct Material for Vegetarian 139
73 Direct Material for Pepperoni 140
74 Monthly Salary Scale 141
75 Total Direct Labor Cost 141
76 Indirect Material 142
77 Depreciation 143
78 Rent 143
79 Repairs and Maintenance 143
80 Utility-Electricity 144
81 Utility-Water Bill 144
82 Utility- Telecommunications 145
83 Utility-Gas 145
84 Indirect Labor 146
85 Share of Employer 146
86 List of Variable Overhead 147
87 List of Fixed Overhead 147
88 Manufacturing Overhead Cost 148
xi
I.
PROJECT
SUMMARY
Background of the Study

PIZZA BOMB GROUP 2
“The increasing urbanization, changing consumer behavior and millennials’
preference towards eating out has majorly benefitted the food or service sector of
the country.” (Mordor Intelligence, n.d.) Food service industry comprises all forms
of food retail that include fast-food chains, food kiosks, cafes, bars, take-out,
delivery stores, and full-service restaurants. With the growing demand in the food
sector, many considered investing and are pioneers in their own genre and style
but succeeding entrants tend to imitate and recreate what currently is, and
innovation, therefore, loses its significance in today’s era.
Students, among all consumers, form part of the vast market population that
utilizes the products and services that the food service sector is offering. Within
the University Belt in Manila lie countless establishments that provide these
products and services that cater to each student's taste preferences whilst being
considerate in terms of prices.
With students’ increasing busy lifestyle and desire for convenience coupled with
innovativeness, the proponents conducted this feasibility study as a means of
providing a substitute on the conventional pizza slices – on-the-go bite-sized
Pizza Bombs that provides the same satisfaction of craving.
This feasibility study also caters to young, aspiring entrepreneurs and even
established businessmen as facts and insights derived by the proponents can be
used as a means of assessing the profitability of venturing on this new and
innovative food product.
Business Name/Logo
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PIZZA BOMB GROUP 2
Figure 1
Business Logo
The business name would be “Pizza Bomb”, which was inspired by one of
Tasty’s recipes. The word Bomb was incorporated since it resembles the pizza
that the proponents have in mind– a round, bite-sized pizza that creates a
wonderful burst of flavor in people’s mouths. Brief description of the product
A round, bite-sized pizza with flavors bursting inside instead of the traditional
pizza which is mostly cut triangular with toppings above. Pizza Bomb comes with
different flavors such as Pepperoni, Pork and Chicken Barbecue, Chicken
Teriyaki, Three-Cheese, and Breakfast Pizza (ham, egg, and cheese) which
would cater each customer’s taste buds whether for breakfast, lunch, merienda
or just plain snacks. Pizza Bomb can be your go-to pizza in satisfying your
sudden pizza cravings instead of buying a whole pizza since it is packed in a
small and handy package. Moreover, it can be delivered directly at your place so
you can have all the convenience that you want while waiting to fulfill your pizza
cravings.
Form of Business Organization

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PIZZA BOMB GROUP 2
Pizza Bomb is a Sole Proprietorship form of business solely owned and
exclusively managed by one person. It is easy to form, subject to few formal
business requirements, complete control and decision-making power over the
business of the sole proprietor.
Business Location
Figure 2
Facade of the Building
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PIZZA BOMB GROUP 2
Figure 3
Vicinity Map
The business will be established at Zone 041, 930 Lerma St, Sampaloc,
Manila, 1008 Metro Manila. It is located within the University Belt, a sub-district in
Manila where there is a high concentration of colleges and universities in the city
thus would make it accessible for our target market.
Objectives of the Study or Statement of the Problem
➢ Marketing Aspect
● Who will be the target market?
● What are the marketing strategies used to promote the product?
● What makes the product more unique than the competitors’
product?
● Who are the existing competitors?
➢ Management Aspect
● What are the legal requirements that must be complied with in
order to start the business?
● What are the manpower qualifications needed for the business?
● What are the compensation and benefits that will be received by
the employees?
● What are the organizational policies to control and monitor the
business?
➢ Technical/Production Aspect
● What are the step-by-step procedures in making the proposed
product?
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PIZZA BOMB GROUP 2
● What are the required ingredients needed for the production?
● What is the Property, Plant, and Equipment to be used in the
business operation?
● What is the production capacity of the business in a day?
➢ Financial Aspect
● How much is the capital investment needed in the proposed
business?
● How much are the necessary expenses in operating the business?
● How long is the time required by the project to return the initial cost
of investment?
● How much profit/loss will be earned in the initial year?

➢ Socio-Economic Aspect
● What are the economic and environmental responsibilities
involving the production?
● What will be the impact of the proposed business to the economy
particularly on the aspect of employment?
● What will be the impact of the proposed business to the
government?
● How will the business engage in providing healthy working
environment to the employees?
Investment cost (How much and who will contribute)
Pizza Bomb will have an approximately One Million pesos (₱1,000,000)
initial investment outlay. This already includes all the costing elements starting
from the feasibility study to commencement of the business.
Mode of Financing
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PIZZA BOMB GROUP 2
The business, as a sole proprietorship, would get its financing from the
personal funds of the sole proprietor. This will be used for starting the operations
of the business, including payment of legal requirements, administration costs,
rental fees, and other costs that would be needed to finance the production and
marketing of the business.
II.
MARKETING
ASPECT
MARKET DESCRIPTION
Target Area
A strategic business location is a key ingredient for the success of a business.
Business location can have a big impact on costs and revenues therefore it must
be accessible and visible to attract customers in buying your products.
University belt is probably one of the best places to establish a food business
wherein we would find students in search for affordable, and ready-to eat meals
for any events. For this reason, the proponents decided to establish Pizza Bomb
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PIZZA BOMB GROUP 2
along Lerma St, Sampaloc, Manila. The location is a short walking distance to
students from colleges and universities such as Far Eastern University, Far
Eastern University – Institute of Technology, Philippine School of Business
Administration – Manila, University of the East, and University of Santo Tomas.
Competitive Situation
Pizza Bomb is characterized under Monopolistic Competition. This type of
competition characterizes an industry in which many firms offer products or
services that are similar, but not perfect substitutes or identical. Firms in
monopolistic competition typically try to differentiate their product in order to
achieve above market returns. Pizza Bomb offers product slightly different from
its competitors in such a way that it is round-shaped with the flavors inside a ball
of dough instead of the conventional pizzas in the market.
List of Direct & Indirect Competitors

Direct Competitors Logo Address
Domino’s
M.F. Jhocson, 873
Pizza
España Blvd,
Sampaloc, Manila,
1015 Metro Manila
Pizza
hut Jose Lim Realty Bldg,
1001 Recto Ave,
Quiapo, Manila
880 Nicanor Reyes St,
Sampaloc, Manila,
Shakey’s 1008 Metro Manila
New World, Level 1,
Nicanor Reyes St,
Greenwich Sampaloc, Maynila,
1008
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PIZZA BOMB GROUP 2
Yellow 920 Nicanor Reyes St,
Cab Sampaloc, Manila,
1015 Metro Manila
Indirect Competitors Logo Address
P. Noval Corner
24 Chicken Espana, Sampaloc,
Manila
1222 Delos Reyes St,

Wing Vibe Food house
Sampaloc, Manila
Ever Gotesco Manila

Plaza, C. M. Recto
Everything but Cheese Avenue, Quiapo,
Manila
1254-A Alfonso
Mendoza, corner
Route 88: Bike Cafe
Eloisa St., Sampaloc,
Manila
1240 Villa Marie de
Heaven’s Touch
N/A Asturias Bldg. Asturias
Cuisine
St. Sampaloc, Manila
Asturias St. Sampaloc,

MF Cheeze Tea
Manila
955 S.H. Loyola St.,

Boo rock Cafe Sampaloc, Manila
Manila
1221 Delos Reyes St,

Meat Up
Sampaloc, Manila
1229, 1008 Delos

Chick and Fins Reyes St, Sampaloc,
Manila
Chickenville Diner and Nicanor Reyes St,
N/A
Cafe Sampaloc, Maynila,
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PIZZA BOMB GROUP 2
Table 1 List of Direct and Indirect Competitors
TARGET MARKET
Market Structure
Pizza Bomb proponents choose to market its product to students around the
University Belt, specifically the students of Far Eastern University-Manila, Far
Eastern University – Institute of Technology, University of Santo Tomas,
University of the East-Manila and Philippine School of Business Administration
who have a weekly spending allowance for food of Php 500 to Php 1, 500. This is
because the target area is accessible near these schools with a short walking
distance of less than fifteen (15) minutes.
Age Bracket
The target area is within the University Belt wherein it is surrounded with
different universities and colleges. Therefore, our target market was aged
between 16 to 24 years old since this age bracket are mostly students from
senior high school to college students. Furthermore, the students within the age
bracket commonly go out to eat with their groups of friends as a break from their
academic responsibilities or just to enjoy their free time.
SAMPLING AREA
The proponents of the study used survey questionnaire to gather information.
The demand survey questionnaires were distributed in the form of Google Forms
through Facebook to students from chosen schools, colleges, and universities
that are located near the place of business and within the University
Belt. The selected universities were Far Eastern University – Manila, Far Eastern
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PIZZA BOMB GROUP 2
University – Institute of Technology, University of the East, Philippine School of
Business Administration – Manila, and University of Santo Tomas.
In the gathering of data for the supply analysis, the survey questionnaire was
personally given to all the indirect competitors identified by the business.
SAMPLING SIZE
The proponents used the Slovin’s formula to compute for the sample size that
will represent the whole population. The total projected population of the target
market for the year 2020 is 61,995. This figure is consisted by the number of
students enrolled in the following schools and universities around the business
location: Far Eastern university (17,201), FEU – Institute of Technology (6,859),
Philippine School of Business Administration – Manila (1,228), University of the
East – Manila (8,903), and University of Santo Tomas (27,804). The
questionnaires were handed to 100 respondents based on the result of the
computations. Supporting computation is presented below.
𝑁
𝑛=( 1 + 𝑁𝑒2)
𝑛=
𝑛 = 99.89 ≈ 100
Where:
n = number of samples
N = total population
e = margin of error
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PIZZA BOMB GROUP 2
The same statistical tool was used to compute for the number of competitors to
be used as the sample size. The number of direct and indirect competitors are 5
and 10, respectively. Given the total population of 15, the proponents arrived at
giving surveys to 13 competitors using Slovin’s formula. Supporting computation
for it is presented below.
𝑁
𝑛=( 1 + 𝑁𝑒2)
𝑛=
𝑛 = 13.04 ≈ 13
SAMPLING METHOD
Simple random sampling was utilized by the researchers in the
selection process of respondents and the gathering of relevant data to the
study. The proponents obtained data through the intervention of survey
questions which were given to direct and indirect competitors around the
university belt as they participated in answering the questionnaire.
For student respondents, the proponents heavily relied on the use of
Google Forms as a means of conveniently disseminating questionnaires and
gathering of the data.
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PIZZA BOMB GROUP 2
SURVEY RESULTS
Demand Survey Results
Presented below are the results of the survey conducted upon students
from selected universities of the proposed business.
23%
Female
Male
77%
Figure 4 Distribution of the Respondents According to Gender
Table 2
Distribution of the Respondents According to Gender
Response Number Percentage
Female 77 77%
Male 23 23%
TOTAL 100 100%
Figure 4 and Table 2 illustrate the distribution of the respondents according to
gender. From the data collected, 77% of the respondents were female while
23% were male.
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PIZZA BOMB GROUP 2
Far Eastern University–

19% Manila
32%
FEU Institute of Technology
11%
Philippine School of Business
Administration– Manila
20% 18% University of the East–
Manila
University of Santo Tomas
Figure 5 Distribution of the Respondents According to University
Table 3
Distribution of the Respondents According to University
Far Eastern University – Manila 32 32%
FEU Institute of Technology 18 18%
Philippine School of Business 20 20%
Administration – Manila
University of the East – Manila 11 11%
University of Santo Tomas 19 19%
TOTAL 100 100%
Figure 5 and Table 3 present the distribution of the respondents according
to university. 32% of the respondents are from Far Eastern University – Manila,
18% are from FEU Institute of Technology, 20% are from Philippine School of
Business Administration – Manila, 11% are from University of the East – Manila
and 19% are from University of Santo Tomas.
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PIZZA BOMB GROUP 2
5% 7%
16 – 18 years old
14 – 21 years old
22 – 24 years old
88%
Figure 6
Distribution of the Respondents According to Age
Table 4
Distribution of the Respondents According to Age
16 – 18 years old 7 7%
19 – 21 years old 88 88%
22 – 24 years old 5 5%
TOTAL 100 100%
As presented in Figure 6 and Table 4, it illustrates the distribution of the
respondents according to age. Out of 100 respondents, majority are 19 – 21
years old which encompass 88% of the total respondents. Other respondents
include in the age ranges from 16 – 18 years old with 7%, and 22 – 24 years old
with 5%.
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PIZZA BOMB GROUP 2
1%
11%
Allowance / “Baon”
Salary
Business Income
88% Savings
Others
Figure 7 Source of Income of Respondents
Table 5
Source of Income of Respondents
Allowance / “Baon” 88 88%
Salary 11 11%
Business Income 0 0%
Savings 1 1%
Others 0 0%
TOTAL 100 100%
Figure 7 and Table 5 present the source of income of respondents. From the
data gathered, it shows that most of the respondent’s source of income came
from their allowance / “baon” while other respondents have different sources of
allowance which comprises of salary and savings.
6%
11%
Php 500 – Php 1,000
53% Php 1,001, - Php 1,500
30%
Php 1,501 – Php 2,000
Php 2,001 – Php 2,500
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PIZZA BOMB GROUP 2
Figure 8 Weekly Spending Allowance for Food of Respondents
Table 6
Weekly Spending Allowance for Food of Respondents
Php 500 – Php 1,000 53 53%
Php 1,001, - Php 1,500 30 30%
Php 1,501 – Php 2,000 11 11%
Php 2,001 – Php 2,500 6 6%
TOTAL 100 100%
From the data collected which are illustrated by Figure 8 and Table 6, 53% of the
respondents are spending Php 500 – Php 1,000 of their weekly allowance for
food; 30% are spending Php 1,001 – Php 1,500; 11% are spending Php 1,501
– Php 2,000 and 6% are spending Php 2,001 – Php 2,500.
3%
Yes
No
97%
Q1: Do you eat pizza?
Figure 9 Whether or Not Respondents Eat Pizza
Table 7
Whether or Not Respondents Eat Pizza
Yes 97 97%
No 3 3%
TOTAL 100 100%
As illustrated in Figure 9 and Table 7, 97% of the respondents eat pizza while
3% are not.
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PIZZA BOMB GROUP 2
Figure 10 Respondent’s Qualities to Consider in Buying Pizza
Table 8
Respondent’s Qualities to Consider in Buying Pizza
Taste / Flavor 95 24%
Wide variety of offered 62 16%
flavors
Affordable price 80 20%
Nutritional Value 25 6%
Appearance of the 44 11%
product / presentation
Serving size 70 18%
Innovation of the product 17 5%
Others 0 0%
TOTAL 393 100
Figure 10 and Table 8 present the respondent’s qualities to consider in
buying pizza. Most of the respondents select more than one quality. There are
393 responses that were gathered and among these, 24% who prefer
taste/flavor, 16% who prefer variety of offered flavors, 20% who prefer affordable
price, 6% who prefer nutritional value, 11% who prefer appearance of the
product/presentation,
18% who prefer serving size and 5% who prefer innovation of the product.
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PIZZA BOMB GROUP 2
90
Q3: How often do you eat pizza ?
80
70
60
50
40
30
20
10
0
1 – 3 times a month 4 – 6 times a month 7 – 9 times a month10 times or more in a
month
Figure 11 Respondent’s Frequency of Eating Pizza
Table 9
Respondent’s Frequency of Eating Pizza
1 – 3 times a month 79 79%
10 times or more in a
0 0%
month
TOTAL 100 100%
Figure 11 and Table 9 illustrates the respondent’s frequency of eating pizza.
From the results given, 79% of the respondents eat pizza 1 – 3 times a month,
16% eat pizza 4 – 6 times a month and 2% eat pizza 7 – 9 times a month.
60 Q4: What time of day would you most likely

purchase a pizza? (Check all that apply )
50
40
30
20
10
0
1:00 pm - 3:00 pm 3:01 pm – 5:00 pm 5:01 pm – 7:00 pm 7:01 pm – 9:00 pm
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PIZZA BOMB GROUP 2
Figure 12 Preferred Time of Respondents to Purchase Pizza
Table 10
Preferred Time of Respondents to Purchase Pizza
1:00 pm - 3:00 pm 19 13%
3:01 pm - 5:00 pm 51 34%
5:01 pm - 7:00 pm 40 27%
7:01 pm - 9:00 pm 39 26%
TOTAL 149 100%
As presented in Figure 12 and Table 10, some of the respondents select more
the one preferred time to purchase pizza. There are 149 responses that were
collected and among these, 13% who prefer 1:00 pm – 3:00 pm, 34% who prefer
3:01 pm – 5:00 pm, 27% who prefer 5:01 pm – 7:00 pm and 26% of them who
prefer 7:01 pm – 9:00 pm.
90 Q5 : What day would you most frequently

80 purchase a pizza? (Check all that apply )
70
60
50
40
30
20
10
0
Monday Tuesday Wednesday Thursday Friday Saturday
Figure 13 Preferred Day of Respondents to Purchase Pizza
Table 11
Preferred Day of Respondents to Purchase Pizza
Monday 11 6%
Tuesday 16 9%
Wednesday 12 7%
20
PIZZA BOMB GROUP 2
Thursday 10 5%
Friday 51 28%
Saturday 82 45%
TOTAL 182 100%
As shown in Figure 13 and Table 11, majority of the respondents select more the
one preferred day to purchase pizza. As a result, there are 182 responses that
were gathered. Most of the respondents prefer to eat every Saturday with 45%
and Friday with 28%.
10% 8%
11% Less than 5 minutes
5 to 10 minutes
24% 47% 11 to 15 minutes
16 to 20 minutes
20 minutes and above
Q6: How long are you willing to wait to

get your order?
Figure 14 Time Respondents Are Willing to Wait for their Order
Table 12
Time Respondents Are Willing to Wait for their Order
Less than 5 minutes 8 9%
5 to 10 minutes 45 46%
11 to 15 minutes 23 24%
16 to 20 minutes 11 11%
20 minutes and above 10 10%
TOTAL 97 100%
Figure 14 and Table 12 illustrates how long the respondents can wait their order.
9% can wait for about less than 5 minutes, 46% can wait for 5 to 10 minutes,
24% can wait for 11 to 15 minutes, 11% can wait for 16 to 20 minutes and 10% of
them can wait for 20 minutes and above.
21
PIZZA BOMB GROUP 2
Yes
No
100%
Q7: Are you willing to try our pizza bomb?
Figure 15 Willingness of Respondents to Try Pizza Bomb
Table 13
Willingness of Respondents to Try Pizza Bomb
Yes 100 100%
No 0 0%
TOTAL 100 100%
As shown in Figure 15 and Table 13, 100% of the respondents are willing to try
pizza bomb.
80 Q8: Which flavor/s are you willing to try? (Select three ).

70
60
50
40
30
20
10
0
Pepperoni Vegetarian Three – Cheese Pork and Breakfast Pizza
(Mushroom) Chicken (Ham , Egg and
Barbecue Cheese)
Figure 16 Pizza Bomb’s Flavors that Respondents Are Willing to Try
Table 14
Pizza Bomb’s Flavors that Respondents Are Willing to Try
22
PIZZA BOMB GROUP 2
Pepperoni 63 25%
Vegetarian (Mushroom) 45 18%
Three – Cheese 76 30%
Pork and Chicken 36 14%
Barbecue
Breakfast Pizza (Ham, 35 13%
Egg and Cheese)
TOTAL 255 100%
Figure 16 and Table 14 shows the preference of the respondents as to the flavor
of the pizza. Most of them select more than one flavor. There are 25% who prefer
pepperoni, 18% who prefer vegetarian (mushroom), 30% who prefer three –
cheese, 14% who prefer pork and chicken barbecue and 13% who prefer
breakfast pizza (ham, egg and cheese).
Q9: How many pizza bombs are you willing to eat in one seating?
14%
51% 1 – 3 pizza bombs

35% 5 – 6 pizza bombs
7 or more pizza bombs
Figure 17 Number of Pizza Bombs Consumed by Respondent in One

Seating
Table 15
Number of Pizza Bombs Consumed by Respondent in One Seating
1 – 3 pizza bombs 51 51%
5 – 6 pizza bombs 35 35%
7 or more pizza bombs 14 14%
TOTAL 100 100%
23
PIZZA BOMB GROUP 2
Figure 17 and Table 15 illustrate the number of pizza bombs can consume by
respondent in one seating. To sum up, 51% of the respondents can consume 1 –
3 pizza bombs. And, 5 – 6 pizza bombs and 7 or more pizza bombs got 35% and
14%, respectively.
Q10: How much money are you willing to spend on this product?
9% 18%
21%
Php 50– 80
Php 81– 100
Php 101 - 150
52% Php 151– 200
Figure 18 Average Spending of Respondents on a Regular Order of

Pizza Bombs
Table 16
Average Spending of Respondents on a Regular Order of Pizza Bombs
Php 50 – 80 18 18%
Php 81 – 100 52 52%
Php 101 - 150 21 21%
Php 151 – 200 9 9%
TOTAL 100 100%
Figure 18 and Table 16 show that most of the respondents are in favor with the
cheapest price available. To conclude, 18% are willing to pay Php 50 – 80 and
52% are for Php 81 – 100 while the remaining 30% are willing to pay for Php 101
– 200.
24
PIZZA BOMB GROUP 2
0%
Yes
No
100%
Q1 1: Do you usually eat with

a companion/s?
Figure 19 Whether or Not Respondents Eat with Companion/s
Table 17
Whether or Not Respondents Eat with Companion/s
Yes 100 100%
No 0 0%
TOTAL 100 100%
From the data gathered that Figure 19 and Table 17 presenting, 100% of the
respondents usually eat with companion/s.
Q1 2: With whom do you usually go outside to eat?
3% 6%
15% 37% Family
Friends
Partner
39% Workmates
Schoolmates
Figure 20 Companions of Respondents When Eating Outside
Table 18
Companions of Respondents When Eating Outside
25
PIZZA BOMB GROUP 2
Family 37 37%
Friends 39 39%
Partner 15 15%
Workmates 3 3%
Schoolmates 6 6%
TOTAL 100 100%
As presented in Figure 20 and Table 18, most of the respondents usually go
when eating outside with their family, friends or partner.
90 Q13: What service do you prefer? (You may

80 check more than one).
70
60
50
40
30
20
10
0
Dine – In Delivery Take - Out
Figure 21 Preferred Service of Respondents
Table 19
Preferred Service of Respondents
Dine – In 79 45%
Delivery 43 25%
Take - Out 53 30%
TOTAL 175 100%
The respondents were given a choice to choose whichever applies to their
preference. Figure 21 and Table 19 illustrates the preferred service of
respondents. 58% of the respondents select more than one preferred service.
There are 45% who prefer to eat inside the fast food store, 25% who prefer
delivery and 30% who prefer taking out their food.
26
PIZZA BOMB GROUP 2
Figure 22 Respondent’s Amenities to Consider When Choosing Fast

Food Store
Table 20
Respondent’s Amenities to Consider When Choosing Fast Food Store
Appearance of the shop 71 16%
Accessibility of the shop 75 17%
Ambiance of the shop 76 17%
Complimentary services (internet 47 11%
connection, free use of electric sockets)
Customer involvement in the product 27 6%
(do-it-your-own)
Sanitation of the shop 84 19%
Spacious area of the shop 53 13%
Others 3 1%
TOTAL 436 100%
Figure 22 and Table 20 show the respondent’s amenities to consider when
choosing fast food store. Most of the respondents select more the one amenity.
There are 16% who consider the appearance of the shop, 17% are for
accessibility, 17% are for ambiance of the shop, 11% are for complimentary
services, 6% are for customer involvement in the product, 19% are for sanitation
of the shop, 13% are for spacious are of the shop. However, there is 1% who
consider fast service, free taste and clean restroom.
27
PIZZA BOMB GROUP 2
80% Q15: What kind of marketing strategies appeal to you most? (Rank the
70% following from 1 being the lowest and 6 being the highest).
60%
50%
40%
30%
20%
10%
0%
Social Media/ Radio Television Promotions Print Ads
Internet Broadcasting Commercials
6 5 4 3 2 1
Figure 23 Rankings of Respondent’s Preferred Marketing Strategies
Table 21
Rankings of Respondent’s Preferred Marketing Strategies
Response Rank
6 5 4 3 2 1 Total
Social Media/ Internet 54% 23% 10% 5% 4% 4% 100%
Radio Broadcasting 4% 3% 2% 3% 19% 69% 100%
Television Commercials 4% 22% 24% 22% 22% 6% 100%
Promotions 17% 22% 33% 16% 8% 4% 100%
Print Ads 1% 8% 14% 30% 36% 11% 100%
Word of Mouth 20% 22% 17% 24% 11% 6% 100%
Figure 23 and Table 21 illustrate the rankings of respondent’s preferred
marketing strategies. Social media/internet is the most preferred marketing
strategies which comprises of 54% while radio broadcasting is the least preferred
marketing strategies which comprises of 69%.
Supply Survey Result
Presented below are the results of the survey conducted regarding the
direct and indirect competitors of the proposed business.
28
PIZZA BOMB GROUP 2
Q1: Location of the Business
13%
27% Espana
60% Morayta
Others
Figure 24 Location of the Business
Table 22
Location of the Business
España 2 13%
Morayta 4 27%
Others 9 60%
TOTAL 15 100%
As presented in Figure 24 and Table 22, 15 establishments were chosen as its
direct and indirect competitors that are near the target area. Two establishments
are in the area of España, four from Morayta and nine from other places
surrounding the proponent’s target area.
Q2: How long have you been in the business?
6% 7% 1-2 years
20% 3-4 years
67% 5-6 years
7-8 years
9 years & above
29
PIZZA BOMB GROUP 2
Figure 25 Number of Years in the Business
Table 23
Number of Years in the Business
1 – 2 years 10 67%
3 – 4 years 3 20%
5 – 6 years 1 6%
7 – 8 years 1 7%
9 years & above 0 0%
TOTAL 15 100%
Figure 25 and Table 23 show the number of years in the business of each
respondents. 67% has been operating for 1-2 years, 20% for 3-4 years, and 6%
for 5-6 years. No competitors have been operating for 9 years and above.
7%
6% None
33%
1-2 business
27%
3-4 business
27%
5-6 business
7 & above business
Q3: When you started, how many competitors do you have?
Figure 26 Number of Competitors During the Start of the Business
Table 24
Number of Competitors During the Start of the Business
None 1 6%
1 – 2 businesses 1 7%
30
PIZZA BOMB GROUP 2
7 businesses & above 5 33%
TOTAL 15 100%
Figure 26 and Table 24 show the number of competitors during the start of the
business of the proponent’s competitors. One respondent answered that they
have no competitors yet when they started their business while the range 3-4 and
5-6 businesses have equal respondents of four each. The remaining five
respondents answered that they already have 7 and above business competitors
when they started their business.
13% None
33%
1-2 business
7% 47%
3-4 business
5-6 business
7 & above business
Q4: In the succeeding years, how many competitors are
added per year?
Figure 27 Number of Competitors Added per Year
Table 25
Number of Competitors Added per Year
None 2 13%
7 businesses & above 5 33%
31
PIZZA BOMB GROUP 2
TOTAL 15 100%
Figure 27 and Table 25 displays the number of competitors added per year.
13% responded that there are no added competitors to their business per year,
47% have 1-2 competitors added per year, 7% have 5-6 business added per year
and the remaining 33% responded that 7 businesses and above are added per
year as their competitors.
13% 20% 8-10 hours
27% 11-13 hours

14-16 hours
40%
17-19 hours
20-24hours
Q5: How many hours do you operate in a day?
Figure 28 Number of Hours Operating in a Day
Table 26
Number of Hours Operating in a Day
8 – 10 hours 3 20%
11 – 13 hours 6 40%
14 – 16 hours 4 27%
17 – 19 hours 2 13%
20 – 24 hours 0 0%
TOTAL 15 100%
Figure 28Figure 28 and Table 26 displays the operating hours per day of the
respondents wherein 20% operates between 8-10 hours, 40% operates between
11-13 hours, 27% operates between 14-16 hours, and 13% operates between
17-19 hours. No respondents are operating for 20-24 hours a day.
32
PIZZA BOMB GROUP 2
27%
1-3 days
4-6 days
73%
7 days
Q6: How many days do you operate in a week?
Figure 29 Number of Days Operating in a Week
Table 27
Number of Days Operating in a Week
1 – 3 days 0 0%
4 – 6 days 4 27%
7 days (every day) 11 73%
TOTAL 15 100%
Figure 29 and Table Figure 29 and Table 27 depicts the number of days the
respondents are operating in a week. 27% of the respondents operate 4-6 days a
week while the 73% of the respondents operate every day.
9 Q7: On what days do you have the most number of

8 customers?
7
6
5
4
3
2
1
0
Figure 30 Days with the Greatest Number of Customers
33
PIZZA BOMB GROUP 2
Table 28
Days with the Greatest of the Number of Customers
Monday 4 14%
Tuesday 5 17%
Wednesday 5 17%
Thursday 3 10%
Friday 8 28%
Saturday 2 7%
Sunday 2 7%
TOTAL 29 100%
Figure 30 and Table 28 represents the days wherein competitors have the
greatest number of customers. 28% says that Friday is the day of the week with a
huge number of customers, with Tuesdays and Wednesdays trailing at 17%.
Saturdays and Sundays were the lowest, each only having 2%.
8 Q8: n what days do you have the least number of
7 customers?
6
5
4
3
2
1
0
Figure 31 Days with the Least Number of Customers
Table 29
Days with the Least Number of Customers
Monday 1 6%
Tuesday 0 0%
Wednesday 0 0%
Thursday 4 25%
Friday 1 6%
Saturday 7 44%
34
PIZZA BOMB GROUP 2
Sunday 3 19%
TOTAL 16 100%
Figure 31 and Table 29 depicts the days with the least number of
customers, with 44% of the respondents agreeing on Saturday, while less
asserted that it falls every Mondays and Fridays of the week.
12 Q9: On what time of the day do you have the most numb
er
of customers?
10
0
Dawn Morning Afternoon Evening Midnight
Figure 32 Time of the day with the Greatest Number of Customers
Table 30
Time of the Day with the Greatest Number of Customers
Dawn 0 0%
Morning 3 15%
Afternoon 10 50%
Evening 7 35%
Midnight 0 0%
TOTAL 20 100%
Figure 32 and Table 30 shows 50% of the respondents say that Afternoon is the
time of the day with the greatest number of customers, while Evening trailed with
a 35% of respondents’ choice, and Morning with the least, garnering only 15%.
35
PIZZA BOMB GROUP 2
7 Q10: On what time of the day do you have the least nu mber
of customers?
6
0
Dawn Morning Afternoon Evening Midnight
Figure 33 Time of the Day with the Least Number of Customers
Table 31
Time of the Day with the Least Number of Customers
Dawn 1 6%
Morning 6 38%
Afternoon 4 25%
Evening 5 31%
Midnight 0 0%
TOTAL 16 100%
Figure 33 and Table 31 provided the time of the day with the least number of
customers. Morning ranked 1st with 38% of the respondents, while Dawn placed
at the last with only 6%.
16 Q11: Who is your target market/s? (Check as

14 many as possible)
12
10
8
6
4
2
0
Student Professionals Families
Figure 34 List of their Target Market
Table 32
36
PIZZA BOMB GROUP 2
List of their Target Market
Student 15 58%
Professionals 6 23%
Families 5 19%
Others 0 0%
TOTAL 26 100%
Figure 34 and Table 32 gave the list of competitor’s target market. Based on
surveys conducted, 15 out of 26 or 58% of the respondents claimed that they are
heavily targeting Students for their market, followed by 23% from Professionals,
and lastly Families with 19% of the total target market.
20%
0-50 pcs.
13% 51-100 pcs.

54%
101-150 pcs.
13% 151-200 pcs.
200 pcs. and above
Q12: On average, how many units of your pr oduct do

you sell per day?
Figure 35 Units Sold per Day
Table 33
Units Sold per Day
0 – 50 pcs. 3 20%
51 – 101 pcs. 2 13%
101 – 150 pcs. 0 0%
151 – 200 pcs. 2 13%
200 pcs. & above 8 54%
TOTAL 15 100%
37
PIZZA BOMB GROUP 2
Figure 35 and Table 33 depicts the number of units sold per day and from the
data gathered, 54% of the respondents revealed that they have sold 200 pcs.
and above per day, followed by a response of 0-50 pcs. sold of about 20%, and
lastly equaling 13% represents 51-101 pcs. and 151-200 pcs. sold per day.
DEMAND ANALYSIS
Presented below is the list of target universities and colleges within
University belt and their respective student population from Academic Years 2015
up to 2019. Also, included in such list is the projected population of the students
in the next five (5) years.
Table 34
Historical Student Population
SCHOOL 2015 2016 2017 2018 2019 TOTAL
Far Eastern University –
Manila 24,611 21,235 18,806 19,273 18,683 102,608
FEU – Institute of
Technology 9,081 10,715 6,439 6,411 7,303 39,949
Philippine School of
Business Administration 1,365 1,371 1,377 1,327 1,175 6,615
– Manila
University of the East –
Manila 17,071 13,732 12,376 11,020 10,536 64,735
University of Santo
44,748 41,614 38,711 37,821 31,193 194,087
Tomas
TOTAL 96,876 88,667 77,709 75,852 68,890 407,994
Source: Commission on Higher Education
Table 34 shows the population of the students within the University belt.
The chosen universities and colleges are Far Eastern University – Manila, FEU –
Institute of Technology, Philippine School of Business Administration – Manila,
University of the East – Manila, and University of Santo Thomas. As observed,
the population of the student is decreasing until 2020 due to the implementation
of K12 Program where there were few freshmen enrollees for two (2) consecutive
38
PIZZA BOMB GROUP 2
years leaving a gap in the student population. Due to the implication of the gap,
two different methods were used in computing the projected population for the
next five (5) years.
Table 35
Projected Student Population
SCHOOL 2020 2021 2022 2023 2024 TOTAL
Far Eastern University –
17,201 25,710 25,324 25,196 25,153 118,584
Manila
FEU – Institute of
6,859 7,857 8,292 8,437 8,486 39,931
Technology
Philippine School of
Business Administration 1,228 1,483 1,452 1,442 1,438 7,043
– Manila
University of the East –
8,903 17,105 16,873 16,796 16,770 76,447
Manila
University of Santo
27,804 43,605 44,049 44,197 44,247 203,902
Tomas
TOTAL 61,995 95,760 95,990 96,068 96,094 445,907
Table 35 illustrates the projected population of the universities and
colleges within the University belt. In determining the projected population, the
proponents used the arithmetic straight-line method for 2020. Such method is
computed using the formula below.
𝒀𝒄 = 𝒂 + 𝒀𝒊 − 𝟏
𝒀𝒏 − 𝒀𝒄
𝒂=
𝑵−𝟏
Where:
Yc = Initial Value
Yn = Final Value
N = Numbers
Yi = Value for the past years
On the other hand, the projected population for 2021 is the average of the
student population during 2013 to 2015, and for the year 2022 to year 2024, is
39
PIZZA BOMB GROUP 2
the average of the student population during 2014 up to 2015 and the projected
population of the previous year.
Table 36
Determination of Frequency
A B C D
(A ÷ 100) (B x C)
Number of Number of % of Total
Frequency
Respondents Times per Year Sample
1 – 3 times a
82 104 82% 85
month
4 – 6 times a
16 260 16% 42
month
7 – 9 times a
2 416 2% 8
month
10 times or
0 650 0% 0
more a month
TOTAL 100 1,430 100% 135

A = Based on the demand survey results of: “How often do you eat pizza?” B =
Number of times (to avail in a year). Ranges are computed on an average basis.
C = Respondents who answered ÷ Total number of respondents
D = Number of times (to avail in a year) x Percentage of Total Sample
40
PIZZA BOMB GROUP 2
Table 37
Historical Demand
A B C D E F G H I J
(B x C) (D x E) (F x G) (H x I)
%
Population Capable of Market
% of % of
Historical Based on Availing Capable Availing Historical
Year Target Willing Frequency
Population Target the Buyers the Demand
Market to Try
Market Product Product
2015 96,876 97% 93,970 100% 93,970 100% 93,970 135 12,685,950
2016 88,667 97% 86,007 100% 86,007 100% 86,007 135 11,610,945
2017 77,709 97% 75,378 100% 75,378 100% 75,378 135 10,176,030
2018 75,852 97% 73,576 100% 73,576 100% 73,576 135 9,932,760
2019 68,890 97% 66,823 100% 66,823 100% 66,823 135 9,021,105
B = Based on historical population from 2015 to 2019
C = Based from the survey results of: “Do you eat pizza?” (See Table 7)
D = Historical Population x Percentage of Target Market
E = Based from the survey results of: “Weekly spending allowance for food” (See Table 6)
[52% + 30% + 11% + 6% + 1%]
F = Population Based on Target Market x Percentage Capable of Availing the Product
G = Based from the survey results of: “Are you willing to try our pizza bomb?” (See Table 13)
H = Capable Buyers x Percentage of Willing to Try
I = Based on the computation of Frequency (See Table 36)
41
PIZZA BOMB GROUP 2
J = Market Availing the Product x Frequency
Table 38
Projected Demand
A B C D E F G H I J
(B x C) (D x E) (F x G) (H x I)
% Capable Market
% of Population % of
Projected of Availing Capable Availing Projected
Year Target Based on Willing Frequency
Population the Buyers the Demand
Market Target Market to Try
Product Product
2020 61,995 97% 60,135 100% 60,135 100% 60,135 135 8,118,225
2021 95,760 97% 92,887 100% 92,887 100% 92,887 135 12,539,745
2022 95,990 97% 93,110 100% 93,110 100% 93,110 135 12,569,850
2023 96,068 97% 93,186 100% 93,186 100% 93,186 135 12,580,110
2024 96,094 97% 93,211 100% 93,211 100% 93,211 135 12,583,485
B = Based on historical population from 2020 to 2024
C = Based from the survey results of: “Do you eat pizza?” (See Table 7)
D = Historical Population x Percentage of Target Market
E = Based from the survey results of: “Weekly spending allowance for food” (See Table 6)
[52% + 30% + 11% + 6% + 1%]
F = Population Based on Target Market x Percentage Capable of Availing the Product
G = Based from the survey results of: “Are you willing to try our pizza bomb?” (See Table 13)
H = Capable Buyers x Percentage of Willing to Try
42
PIZZA BOMB GROUP 2
I = Based on the computation of Frequency (See Table 36)

J = Market Availing the Product x Frequency
43
PIZZA BOMB GROUP 2
SUPPLY ANALYSIS
Table 39
Historical Supply
HISTORICAL SUPPLY
Average Number of Number of Competitors
YEAR Customers Per Year Per Year Historical Supply Per Year
2015 77,693 5 388,464

2016 88,881 8 711,047
2017 126,419 13 1,643,443
2018 123,204 15 1,848,065
2019 104,751 19 1,990,271
TOTAL 520,948 60 6,581,291
Source: Survey conducted to competitors
Table 39 shows the historical supply beginning 2015 to 2019. The figures were derived by multiplying the average
number of customers per year by the corresponding number of competitors for such year.
The average number of customers and the number of competitors per year is computed and supported by the next
table.
Table 40
Average Customer Per Year
A verage Customer Per Year
Direct Competitors Average Sales per year
44
PIZZA BOMB GROUP 2
2015 2016 2017 2018 2019

Pizza hut - - 90,247.93 99,272.73 109,200.00
Yellow cab 49,723.38 54,695.72 60,165.29 66,181.82 72,800.00
Shakey’s - - 90,247.93 99,272.73 109,200.00
Domino’s - 82,043.57 90,247.93 99,272.73 109,200.00
Greenwich - - 15,041.00 16,545.00 18,200.00
Total Sales (Supply) 49,723.38 136,739.29 345,950.08 380,545.01 418,600.00
Divided by number of
1 2 6 8 9
competitors for this year
Average customers per
49,723 68,370 57,658 47,568 46,511
year
A verage Customer Per Year

Average Sales per year
Indirect Competitors
2015 2016 2017 2018 2019
Wing Vibe 49,723.38 54,696.72 60,165.29 66,181.82 72,800.00
24 Chicken - - 60,165.29 66,181.82 72,800.00
Everything but Cheese - - 60,165.29 66,181.82 72,800.00
Route 88: Bike Cafe - - 30,082.64 33,090.91 36,400.00
Heaven’s Touch Cuisine 49,723.38 54,696.72 60,165.29 66,181.82 72,800.00
MF Cheeze Tea - - 15,041.32 16,545.45 18,200.00
Boorock Cafe 12,430.84 13,673.93 15,041.32 16,545.45 18,200.00
Meat up - - 60,165.29 66,181.82 72,800.00
Chick and Fins - - 90,247.93 99,272.73 109,200.00
Chickenville Diner and Cafe - - 30,083.00 33,091.00 36,400.00
45
PIZZA BOMB GROUP 2
Total Sales (Supply) 111,877.60 123,067.37 481,322.66 529,453.64 582,400.00
Divided by number of
competitors for this year 4 6 7 7 10
Average customers per

27,969 20,511 68,760 75,636 58,240
year
Table 41
Projected Supply
Projected supply (Yc) a
Year a b x bx + bx + cx2
2020 1,471,762 434,063 (2) (868,126) 292,628
2021 1,471,762 434,063 (1) (434,063) 959,947
2022 1,471,762 434,063 0 0 1,471,762
2023 1,471,762 434,063 1 434,063 1,828,073
2024 1,471,762 434,063 2 868,126 2,028,880
Table 41 shows the projected supply for the next five years (years 2020 to 2024). The trend shows to have an increase in
supply. The projection was based from the historical supply of the competitors for the last five years with the use of
Statistical Parabolic Method. Data used were directly obtained from the historical values (Table 39). Formula used is
𝑌𝑐 = 𝑎 + 𝑏𝑥 + 𝑐𝑥2
Where:
46
PIZZA BOMB GROUP 2
Yc = projected supply a
= aggregate mean
b = rate of variability of historical data
x = years from the median year
𝑎
𝑁(∑ 𝑥4) − (∑ 𝑥2) put values
∑ 𝑥𝑦
𝑏
𝑁(∑ 𝑥2𝑦) − (∑ 𝑥2)(∑ 𝑦)
4
𝑐= ) − (∑ 𝑥2)2
𝑁(∑ 𝑥
Table 42
Historical Values
HISTORICAL VALUES
YEAR Y X X2 X4 XY X2Y
2015 388,464 -2 4 16 (776,928.00) 1,553,856.00
2016 711,047 -1 1 1 (711,047.00) 711,047.00
47
PIZZA BOMB GROUP 2
2017 1,643,443 0 0 0 - -
2018 1,848,065 1 1 1 1,848,065.00 1,848,065.00
2019 1,990,271 2 4 16 3,980,542.00 7,961,084.00
TOTAL 6,581,291 0 10 34 4,340,632.00 12,074,052.00
The table presents the historical value starting 2015 to 2019. Statistical Parabolic was the projection model utilized
by the proponents since it produced the least standard deviation among projection model available. For a detailed
computation, see Appendix section.
DEMAND GAP
Historical Demand-Supply Analysis
Table 43
Historical Demand-Supply Analysis
A B C (A - B)
Year
Historical Demand Historical Supply Historical Demand Gap
2015 12,685,950 388,464 12,297,486
2016 11,610,945 711,047 10,899,898
2017 10,176,030 1,643,443 8,532,587
2018 9,932,760 1,848,065 8,084,695
2019 9,021,105 1,990,271 7,030,834
The table shows the computation of the historical demand gap from year 2015-2019.
A = based on computation on historical demand
48
PIZZA BOMB GROUP 2
B = based on computation on historical supply
C = Historical Demand Gap (Historical Demand - Historical Supply)
Projected Demand-Supply Analysis
Table 44
Projected Demand-Supply Analysis
A B C D E F G
(A – B) (C / A) (B + E) (E / F)
Year Projected
Projected Projected Projected Demand Annual Market Size Market
Total Total Demand Gap % Capacity Share %
Demand Supply Gap per year
2020 8,118,225 292,628.00 7,825,597 96% 134,784 427,412 32%
2021 12,539,745 959,947.00 11,579,798 92% 148,262 1,108,209 13%
2022 12,569,850 1,471,762.00 11,098,088 88% 163,089 1,634,850 10%
2023 12,580,110 1,828,073.00 10,752,037 85% 179,398 2,007,471 9%
2024 12,583,485.00 2,028,880 10,554,605 84% 197,337 2,226,217 9%
A = based on computation of projected total demand
B = based on computation of projected total supply
C = Projected Demand Gap (Projected Demand – Projected Supply)
D = Demand gap % (Projected Demand Gap / Projected Total Demand)
E = based on computation of capacity
F = Market Size (Projected Total Supply + Projected Annual Capacity per Year)
49
PIZZA BOMB GROUP 2
G = Market Share % (Projected Annual Capacity per Year / Market Size) Determination of Capacity
Table 45
Determination of Capacity
H
A B C D E (C*D) F(E*312) G I J (F*I)
(G*312)
No. of Pizza Estimated
Time
Year Total Bomb Maximum Maximum Normal Normal % of Projected
Required No. of
Operating produced Capacity Capacity Capacity Capacity Capacity Annual
per Cycle Cycles/Batch
Hours per per Day per Year per Day per Year Availed Capacity
(in hours)
Cycle/Batch
72
2020 1.33 8 6 1,296 404,352 432 134,784 33% 134,784
units/batch
72
2021 1.33 8 6 1,296 404,352 475 148,262 37% 148,262
units/batch
72
2022 1.33 8 6 1,296 404,352 523 163,089 40% 163,089
units/batch
72
2023 1.33 8 6 1,296 404,352 575 179,397 44% 179,397
units/batch
72
2024 1.33 8 6 1,296 404,352 632 197,337 49% 197,337
units/batch
Note: Pizza bomb will operate for 26 days in a month and for 12 months in a year
18 units/tray x 4 trays = 72 units/batch 2020 = 33% x 134,784 = 44,478; 2021 = 148,262 x 37% = 54,857 so on
The table shows how the projected annual capacity of the business was computed. The proposed business can
produce 72 units per batch and based on the normal capacity, six cycles are to be conducted in a day. The normal
capacity per day in producing pizza bomb is 432. The proponents estimated that the normal capacity per year will
increase by 10%.
50
PIZZA BOMB GROUP 2
SWOT A NALYSIS
STRENGTHS WEAKNESSES
▪ Offers non-traditional ▪ New to the market
pizza ▪ Serves high calories food
▪ Offers lower prices than
competitors
SWOT
OPPORTUNITIES THREATS
▪ Near to U-belt area ▪ High number of
▪ No competitor has competitors
offered a pizza in a ▪ Wider food substitute
spherical form such as burger, fries, and
▪ Accessibility of the donuts
location ▪ Rising cost of ingredients
Figure 36
SWOT Analysis
PRODUCT PRICING
Table 46
Comparison of Pizza Prices
51
PIZZA BOMB GROUP 2
Average Prices (in

Business Name
peso)
Pizza Hut 419
Greenwich 350
Yellow Cab Pizza Co. 699
Domino’s 349
Lot’s A Pizza 220
Shakey’s Pizza Parlor 507
Big Guys! Pizza 428

*Prices are based on Large-sized Pizza that is good for 3-4 person.
Table 47
Proposed Pricing for Pizza Bomb
Three-Cheese Pepperoni Vegetarian
Direct Material 13.45 13.13 8.59

Direct Labor 1.64 1.64 1.64
Variable Manufacturing Overhead 0.97 0.97 0.97
Fixed Manufacturing Overhead 2.50 2.50 2.50
Total Production Cost 18.56 18.24 13.70
% Mark-up on cost 20% 20% 20%
Sales Price (net of VAT) 22.27 21.88 16.44
VAT 12% 12% 12%
Price per Pizza Bomb 24.95 24.51 18.41
Selling Price per Serving (3 pieces) 75 74 55
The selling price of the pizza bomb was determined by analysis of few factors
such as direct materials, direct labor, manufacturing overhead, and indirect
competitors. It was determined that the appropriate mark-up on our product is
52
PIZZA BOMB GROUP 2
twenty percent (20%) that will result in an average price as compared to our
indirect competitors.
MARKETING PROGRAM, MIX AND STRATEGIES

Product
Since customers today are searching for a food which is unique in its form,
the proponents decided to create a pizza which is round and bite-sized with
flavors bursting inside instead of the traditional pizza which is mostly cut
triangular with toppings above. Pizza Bomb comes with different flavors such as
Pepperoni,
Vegetarian, and Three-Cheese which would cater each customer’s taste buds
whether for breakfast, lunch, merienda or just plain snacks.
Price
Pizza Bomb offers its products with an affordable price considering several
factors such as product quality and factors that consider consumer’s preferences.
Pizza Bomb applies Cost-plus pricing in setting the price where the cost is
determined first, and a mark-up is added in order to cover the cost and provide a
profit.
Promotion
One of the major factors to have a successful business is an effective promotion.
Eye-catching promotions draw the attention of potential customers to the
business and will be curious on the products or services they offer. Through
promotion, the information concerning the product or services that the business
provides will spread right through the target market and potential customers.
53
PIZZA BOMB GROUP 2
● In-Store Advertising - Posters and banners will be displayed and
strategically posted on the walls and door of the store. The posters will
feature recommendations and bundle discount promos which provides
alternative flavors and more information on the product and its price.
● Flyers - Flyers will be handed out to the potential customers within the
target market area. The flyers will contain visual presentation of the
product offered and the store. It will be handed out near the universities in
the university-belt area during the first month of operations.
● Social Media - The proponents will create a page or account on different
social networking sites such as Facebook, Twitter and Instagram that will
promote the business, post special discounts and promos, and other
events. It will be regularly updated to keep the customers as well as the
potential customers informed about the promos and events of the
business.
Place
Considering the target market of the proponents, the place of business is
strategically located within the university-belt at 930 Lerma St., Zone 041,
Sampaloc, Manila, 1008 Metro Manila. The business will take advantage to
market the thousand students within the area. The store will be designed to have
a student-friendly ambiance that will easily entice the target market.
People
Employees can be an internal competitive advantage a business can have over
other competitors which can inherently affect the business’ position in the
marketplace. The proponents will hire strictly in accordance with the policies of
54
PIZZA BOMB GROUP 2
the business in order to lower the cost in training the employees. In addition,
every tasks and responsibilities assigned to the employees must be done
appropriately and diligently since their service will reflect the image of the
business itself.
III.
MANAGEMENT
ASPECT
Form of Business Organization
Pizza Bomb is a Sole Proprietorship form of business solely owned and
exclusively managed by one person. It is easy to form, subject to few formal
business requirements, complete control and decision-making power over the
business of the sole proprietor.
Legal Requirements and Steps to Register the Business
Step 1 - Register a business name with Department of Trade and Industry to
acquire DTI Certificate of Registration

55
PIZZA BOMB GROUP 2
a. Prepare at least three (3) Business name
b. Check on DTI website the availability of proposed business name
c. If available, proceed to DTI business registration online
d. Fill out the online registration form
e. Pay the corresponding fees based on scope of business
i. Registration fee must be paid within 5 calendar days from the
date of online application ii. Cost: P500 (City/Municipality) and
additional P15 for documentary stamp tax
f. Claim the Certificate of Business Name Registration at the nearest
DTI Office or download it for printing
Step 2 - Register with the Barangay to acquire Barangay Certification of
Registration
a. Go to the Barangay where the business is located to fill out an
application
b. In addition to application form, submit the following supporting
documents:
i. DTI Certificate of Business Registration ii.
Two (2) valid IDs iii. Proof of
residence (Contract of Lease)
c. Claim the Barangay Certificate of Registration
i. Cost: P500
Step 3 - Register the business in the Mayor’s Office
56
PIZZA BOMB GROUP 2
a. Go to the Municipal office where the business is located and secure
an application
b. Submit the completed application form together with the following:
i. DTI Certificate of Registration ii. Original Barangay
Business Clearance iii. Lease Contract iv. Public
Liability Insurance SPA for Authorized Representatives with
I.D.
c. Pay for the corresponding fees and wait for the releasing of the
business permit and licenses
i. The fees vary depending on the local government unit
(city/municipality) issuing the mayor’s permit
Estimates:
P900 sanitary permit fee + 0.2% of capital for licenses fee
P2000 permit fee for businesses engaged in retail
P2500 garbage collection fee
P360 occupational fee
P905 occupational police clearance/health clearance
P1500 plumbing inspection fee
P850 electrical inspection fee
P500 building permit fee
P400 sign board permit fee
Step 4 - Register the business in the Bureau of Internal Revenue (BIR)
57
PIZZA BOMB GROUP 2
a. Prepare requirements provided in the Checklist of Documentary
Requirements (CDR) before going to the RDO having jurisdiction over
the place of business or residence of the taxpayer.
BIR Form No. 1901 (Registration Form)
i. Any identification issued by an authorized government body
(e.g. Birth Certificate, passport, driver’s license, Community Tax
Certificate) that shows the name, address and birth date of the
applicant; ii. Photocopy of Mayor’s Business Permit; or Duly
received Application for Mayor’s Business Permit, if the former is
still in process with the LGU; and/or Professional Tax Receipt/
Occupational Tax Receipt issued by the LGU; or DTI Certificate iii.
Proof of Payment of Registration Fee (RF) (if with existing
TIN or applicable after TIN issuance)

iv. BIR Form No. 1906; (Select an Accredited Printer)
v. Final & clear sample of Principal Receipts/ Invoices;
b. Secure a queuing number for the New Business Registrants
Counter (NBRC).
c. Submit duplicate copies of the following, together with the complete
documentary requirements per CDR:
i. Signed CDR; ii. Filled out Application for
Registration (BIR Form No.
1901/1903, whichever is applicable) iii. Accomplished BIR Form
0605 for payment of registration fee.
58
PIZZA BOMB GROUP 2
d. In case the taxpayer has an existing TIN, but is not registered with
the RDO, the taxpayer shall apply for a transfer of registration by
accomplishing BIR Form No. 1905.
e. Once called for payment, pay the registration fee and/or other tax
liabilities or penalties on registration to the NBRC or New Business
Registrant Officer.
Registrants with existing TIN have the option to pay the registration
fee before going to the BIR through any of the following payment
channels by accomplishing the BIR Form 0605 under Alphanumeric Tax
Code-RF:
i. Authorized Agent Banks (AABs); ii. e-
Payment channels of AABs; and iii. Mobile
payment through GCash.
f. Claim the Certificate of Registration (COR), auto-approved
Authority to Print (ATP), and “Ask for Receipt” Notice from the
NBRC upon approval together with the e-Receipt as proof of
payment of the Registration Fee and/or other tax liabilities or
penalties.
After securing these documents, new business registrants may
proceed with the registration of books of account within 30 calendar
days from the date of registration.
g. Sign the log sheet provided to confirm receipt of the COR and ATP.
59
PIZZA BOMB GROUP 2
h. Accomplish the Standard Taxpayer Feedback System and drop at
the designated drop box.
i. Attend the scheduled taxpayer’s initial briefing to be conducted by
the concerned RDO for new business registrants in order to know
their rights, duties/responsibilities, and tax compliance.
Cost:
P500 Annual Registration Fee
P15 Certification Fee
P15 Documentary Stamp
P600 Special Books
P4000 Print receipts and invoices at the print shops
accredited by the BIR
Step 5 - Secure an application of authorization for License to Operate (LTO) and
Certificate of Product Registration (CPR)

a. Download the integrated application form used for both License and
Registration applications, as well as amendments and other
certification form ww2.fda.gov.ph.
b. Fill up the application form correctly. The application form has six
parts: 1) General Information, 2) Establishment Information, 3)
Product Information, 4) Supporting Information, 5) Sources and
Clients, and 6) Applicant Information.
c. Send an email to [email protected]. Send an email to
[email protected]. In the XLS application form, the worksheet 'Email'
composes the subject and body of the email that should be sent to
60
PIZZA BOMB GROUP 2
[email protected]. Copy and paste the appropriate fields onto the
email. Include CCs as needed. The XLS or XLSX file should not be
attached but it will be required during submission. Any attachment
will lead to rejection of schedule request. Up to ten applications in a
single email are acceptable.
d. Within two working days, a Document Tracking Log (DTL) is sent
with a schedule for submission.
e. Pay the fees either at Land Bank Branches or at the main FDA
cashier.
i. Cost: P4000 (x 1% Legal Research Fee)
f. Check if all requirements are in order. The following are the
requirements:
i. Information as to activity(ies) of establishment ii.
Notarized Accomplished Petition Form
iii. ID picture of Owner/Authorized Representative iv.
DTI Business Registration
v. Notarized valid Contract of Lease of the space/building occupied
if the space/bldg. is not owned; If not, copy of Transfer Certificate
Title (TCT) vi. Vicinity Map (office and/or warehouse) vii. Floor
Plan/Layout with dimension (office and/or warehouse) viii. List of
Products/category/activity ix. Facsimile of proposed product label,
compliant with FDA standards
g. Submit the requirements on the date of schedule.
61
PIZZA BOMB GROUP 2
h. Wait for the releasing of the LTO and CPR.
Step 6 - Employer’s registration to Social Security System
a. Within 30 days of employment, employers must submit the SSS
coverage of an employee.
b. Accomplish and submit the following requirements
·Employer Registration – SSS Form R-1, registration may be done
through the SSS website
·Employment Report – R-1A
·DTI or SEC Certificate
·Mayor’s Permit and Barangay Clearance

·Main documents such as baptismal, birth certificate, driver’s
license, Passport, Professional Regulation Commission (PRC)
Card or
Seaman’s Book.
Step 7 - Register at PhilHealth
a. Register through the Philippine Business Registry (PBR). Once
registered in this system, they will no longer be required to submit
documents. However, if the employer fails to register through the PBR,
a DTI Registration document (for sole proprietorship) shall be
submitted.
b. Register employees by submitting the following to any PhilHealth
Office:
62
PIZZA BOMB GROUP 2
i. Employer Data Record (ER1) Form (in duplicate) ii. PhilHealth
Membership Registration Form (PMRF) for each employee (in
duplicate)
c. After processing, the employer will be issued the following:
i. PhilHealth Employer Number (PEN) ii. Certificate of Registration
(required to be displayed
inconspicuous area of the office) iii. PhilHealth
Identification Number (PIN) iv. Member Data Record
(MDR) of registered employees Step 8 - Register at
HDMF/PAG-IBIG
a. Register with the Fund through any of the following modes:
i. Register thru the Philippine Business

Registry
(PBR)/Integrated Business Registration (IBR) Facility; or
ii. Submit to Members Services Office (MSO)/Members
Services Branch (MSB) servicing counter duly accomplished
Employer’s Data Form (EDF, HQP-PFF-002) and required
supporting documents:
1. Specimen Signature Form (SSF, HQP-PFF-003)
2. Proof of business existence:
- SSS Certification (if already registered with SSS)
- Business Permit/Mayor’s Permit
- Department of Trade and Industry (DTI) COR
63
PIZZA BOMB GROUP 2
b. The Pag-IBIG Branch will notify the Employer of the Pag-IBIG

Employer ID Number, if applicable.
Registration Fees
Department of Trade and Industry P 515

(DTI)
Barangay Permit P 500
Mayor's Permit P 9,915
Bureau of Internal Revenue (BIR) P 5,130
Bureau of Food and Drug P 4,000

Administration (BFAD)
Total P 20, 060

Table 48
Summary of Registration Fees
64
PIZZA BOMB GROUP 2
Project's Timetable (Gantt Chart)

Figure 37 Project’s Timetable
75
PIZZA BOMB GROUP 2
Organizational Chart
Manager
Accountant
Bookkeeper Baker Cashier Crew Crew
Figure 38 Organizational Chart
Manpower Requirements
• Manager
Qualifications:
o 25 to 40 years old
o Candidate must be a holder of bachelor’s degree in
Business, Management, or related field o At least two years of
experience in store management o Excellent communication,
interpersonal, leadership, coaching, and conflict resolution skills.
Job Description and Functions:

Being executives, Managers have an overall responsibility in the
oversight and administration of the daily operations of the business.
They ensure that sound business relationships are established as well
as the attainment of organizational goals and objectives.
Core duties and responsibilities:
67
PIZZA BOMB GROUP 2
o Oversee daily operations o Establish a communication line
among customers and employees that caters to feedbacks and
suggestions for improvement.
o Develop and implement policies aligned with organizational goals
that employees had to adhere to.
o Resolve internal conflicts and disputes to the benefit of all
concerned.
o Approve purchase requisition form for inventories and send
purchase order to chosen supplier.
o Prepare and send checks signed by the owner for payment to
suppliers and other related expenses
• Baker
Qualifications:
o 25 to 40 years old o Candidate must be a graduate of Bread and
Pastry Production NC II under Technical Education and Skills
Development Authority
(TESDA) or equivalent o At least one-year work related
experience in baking or related industry
Head Baker prepares pizza bombs for customers. His/her
responsibilities include working early in the morning to weigh flour and
68
PIZZA BOMB GROUP 2
other ingredients to prepare dough and bake all types of pizza bombs
offered by the store.
o Two hours before the start of operation, he/she needs to start
preparing pizza dough.
o Always ensure high standard of cleanliness and hygiene in work
area (e.g. clean production machinery and equipment and kitchen
supplies before use).
o Monitor neat and orderly work area; ensure kitchen safety by
maintaining floors free of slip and trip hazards, removing waste
materials and other fire hazards.
o Prepare all raw materials and kitchen supplies required for baking
in preparing dough and mixing various ingredients.
o Monitor and ensure exact measurement of all ingredients for
different types of pizza bombs.
o Responsible for inventory management o Adjust oven
temperature to ensure proper baking.
• Accountant
Qualifications:
o Candidate must be a Certified Public Accountant o
Must be 22- 40 years of age o At least one (1) year working
69
PIZZA BOMB GROUP 2
o 30 years old and above full/wide experience o
Strong attention to detail and good analytical skills o
Deadline-Oriented o Must have good communication skills
Accountant maintains financial transactions of the entire
company. He is also responsible for analyzing trends, cost, revenues,
financial commitments and obligations.
o Verify and reconcile transactions monthly o Prepare
the set of financial records of the company monthly o
Prepare budget forecasts o Provide technical support and
advice o Reconciles financial discrepancies by collecting
and analyzing account information o Complies with federal,
state, and local financial legal requirements by studying
existing and new legislation, enforcing adherence to
requirements, and advising management on needed
actions.
• Bookkeeper
Qualifications: o At least 1-year experience in the field of Accounting
and Finance o Proficiency in MS Excel o Good communication
skills
70
PIZZA BOMB GROUP 2
o Capable of working independently, with high attention to detail and
accuracy of information o Excellent work ethics and attitude
Bookkeeper records everyday financial transactions of the entire
company. He is also responsible in making monthly financial reports
for the company.
o Receive and record invoices, receipts and payments to the ledger o
Ensure that all check issuances are properly signed and documented
o Verify recorded transactions and report irregularities to
management o Update and maintain payroll information of employee
o Provide documents to government for compliance purposes o
Record checks for payment of suppliers and other related expenses
to be signed by the owner
• Cashier
Qualifications:
o 20 to 35 years old o At least a high school graduate o Must have
one-year work experience as cashier o Good physical condition o
Basic math and computer skills o Ability to handle transactions
accurately and responsibly o Experience with developing a
constructive working and
71
PIZZA BOMB GROUP 2
interpersonal relationships with colleagues and customers.
o Active listening and courteous approach to resolving complaints.
Cashier checks prices and quantities for accuracy. He also collects
and processes payments. He is usually involved in use of cash registers
or related equipment.
o Take customer’s order
o Accept and collect payments of the customers o Dispense correct
change o Provide a receipt to every customer o Respond
customer’s questions regarding products and service o Take a
tally of the funds in the cash register at the beginning and end of
each shift.
• Crew/Delivery Man
Qualifications:
o 20 to 35 years old o Candidate must possess at least a High
School Diploma o Preferably Male o With Driver’s License and 2
years of experience in driving 2-wheel motorcycle o Able to work
under pressure
o Great and cheerful personality o Flexible in work schedule
72
PIZZA BOMB GROUP 2
Crew/Deliveryman serves the needs of the customers and keeps
the area clean and tidy. He also delivers food to the customer’s
location. Core duties and responsibilities: o Handle guests’ concerns
and complaints professionally and calmly
to resolve problems according to restaurant policy.
o Deliver the ordered food within the allotted delivery time o Ensure
restaurant cleanliness daily by cleaning tables, sweeping and
mopping floors, washing and sanitizing kitchen utensils, and servicing
restrooms.
73
Salary scale
Employee's Share Employer's Share Total
Employer
Hourly Daily Monthly Net
Tax Share
Rate Rate Salary Amount
SSS PhilHealt SSS PhilHealt
HDMF HDMF
(4%) h (8%) h
1,076.9
Manager 134.62 28,000.00 1,120 385 100 825.73 25,569.27 2,270 385 100 2755
2
Baker 81.73 653.85 17,000.00 680 233.75 100 15,986.25 1,390 233.75 100 1,723.75
-
Bookkeeper 96.15 769.23 20,000.00 800 275 100 18,825.00 1,630 275 100 2,005
-
Cashier 62.50 500.00 13,000.00 520 178.75 100 12,201.25 1,050 178.75 100 1,328.75
-
Crew 1 62.50 500.00 13,000.00 520 178.75 100 12,201.25 1,050 178.75 100 1,328.75
-
Crew 2 62.50 500.00 13,000.00 520 178.75 100 12,201.25 1,050 178.75 100 1,328.75
-
Total 500.00 4,000.0 104,000.00 4,160.00 1,430.00 600.00 825.73 96,984.27 8,440.00 1,430.00 600.0 10,470.00
0 0
*26 working days Table 49
Salary Scale
Computation and Notes:
o All computations are counterchecked with the DOF Tax Calculator (http://taxcalculator/dof/gov/ph/).
o The annual salary of all the employees is below the minimum taxable income except the manager wherein the
tax due is computed using the graduated tax table.
- SSS is 12% of the monthly salary. It computed using the SSS Contribution Table.
83
PIZZA BOMB GROUP 2
o Employee’s Share (4% of the monthly salary not exceeding P20,000)
o Employer’s Share (8% of the monthly salary credit not exceeding P20,000 + EC of P10.00 for salaries less
than P 15,000 or P30.00 for salaries P15,000 and above)
- PhilHealth (2.75%) split equally to employer and employee
- HDMF (2% the employee and 2% for the employer at P5,000 monthly compensation (thus, if monthly
compensation of an employee exceeds P5,000, the employee contribution and employer counterpart will remain at
Php100). Other benefits
● 13th Month Pay
● SSS, PhilHealth and HDMF (PAG-IBIG) Benefits

84
PIZZA BOMB GROUP 2
Work time schedule
BookkeeperTable 50
Work Time Schedule
Organizational Policies
• Recruitment Policy
To provide equal opportunity for employment to all applicants, the
company engages in recruitment and selection practices in accordance with
applicable employment laws. These contain policies and procedures which
shall be strictly implemented to create a good working environment for
employees and a good service provided to customers.
The recruitment and selection practices of the company are the following:
1. The manager must form a person specification and job description in
line with the post and in observance of the organization's goals and
objectives.
2. The company will post job vacancies around the business area and
post online advertisements on the company's social media page.
77
PIZZA BOMB GROUP 2
3. Applicants who met minimum criteria for the job position must send
their resumes through the company's email provided in the job vacancy
post.
4. The owner will evaluate the submitted resumes of job applicants
which includes a background check.
5. Those applicants who qualified in the resume screening will be
contacted and scheduled for an interview with the owner.
6. The applicants will be selected based on their qualifications,
experience, and abilities without any kind of discrimination.
7. Applicants who successfully passed the interview process will be
contacted and informed.
8. To ensure the reliability of the hired applicants, they are required to
submit NBI Clearance and Medical Certificate.
9. Hired applicants will undergo orientation to be introduced to their
new working environment and be familiarized about company policies,
procedures, and operations.
• Employment Policy
A. Probationary Period o Newly hired employees for a permanent
position will be placed in an employee probationary period within five
(5) months from the date the employee started working. They will be
given consistent feedback and coaching to have the chance to learn
their new job and improve.
78
PIZZA BOMB GROUP 2
o The probationary period will allow the owner the time to assess the
employee’s qualifications, performance, and general suitability to
successfully meet position requirements and standards prior to
granting full employee status.
o At the end of the probationary period, the owner will determine if
the employee should be retained in the organization. The services
of an employee who has been engaged on a probationary basis
may be terminated when he fails to qualify as a regular employee
in accordance with reasonable standards made known by the
employer at the time of his engagement.
B. Regularization o Employees who can work after their probationary
period shall be considered regular employees.
o Regular employees are protected against abrupt termination and
cannot be terminated without valid reasons.
• Resignation & Dismissal
A. Voluntary Termination o The employee has the right to resign from
his work provided he must submit a written resignation letter to the
company a month prior its effectivity. As to the general manager, the
effectivity of the resignation will be until the replacement manager
starts to avoid interruption of the operations.
o The employee must not be engaged or employed to another
company with a similar pizza industry within a period of two (2)
years.
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PIZZA BOMB GROUP 2
B. Involuntary Termination o The company may terminate the
employee for violation of the company’s policies, serious misconduct,
poor work performance, frequent absences without notification, fraud
or willful breach of trust, or any reason that does not violate
applicable laws.
• Compensation and Benefits Policy o Monthly Salary
- Employees of the Pizza Bomb are entitled to a monthly salary, half of
which to be given on the 20 th of the month and the other half
receivable by the employee on the 5th of the subsequent month. o
Overtime Pay
- Pizza Bomb entitles all of its employees to an additional
compensation when they render services beyond their eight-hour
shift. On a regular working day, overtime pay is equivalent to:
Overtime Pay (OT Pay) = [(Daily rate/8 hrs.) * 125%] * Number of hours
rendered
o Premium Pay (Holiday Pay)
National Regular Holidays
January 1, 2019, Tuesday - New Year's Day

April 9, 2019, Tuesday - Araw ng Kagitingan
April 18, 2019 - Maundy Thursday
April 19, 2019 - Good Friday
May 1, 2019, Wednesday - Labor Day
June 12, 2019, Wednesday - Independence Day
August 12, 2019, Monday - Eid'l Adha
August 26, 2019, Monday - National Heroes' Day
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PIZZA BOMB GROUP 2
November 30, 2019, Saturday - Bonifacio Day

December 25, 2019, Wednesday - Christmas Day
December 30, 2019, Monday - Rizal Day
- Employee’s regular workday
▪ If unworked - employee shall be paid 100% of his/her daily
rate – (Daily Rate x 100%)
▪ If worked - employee shall be paid 200% of his/her daily rate
for the eight (8) hours – (Daily Rate x 200%)
▪ Excess of 8 hours – plus 30% of the hourly rate on the said
day.
- Employee’s rest day
▪ If unworked - employee shall be paid 100% of his/her daily
rate
▪ If worked - employee shall be paid 100% of his/her daily rate
for the first eight (8) hours plus 30% of 200%
▪ Excess of 8 hours – plus 30% of the hourly rate on the said
day.
National Special (Non-working) Holidays
February 5, 2019, Tuesday – Chinese New Year

February 25, 2019, Monday – EDSA Revolution Anniversary
April 20, 2019, Saturday – Black Saturday
August 21, 2019, Wednesday – Ninoy Aquino Day
May 13, 2019, Monday – Philippine Election Day
November 1, 2019, Friday – All Saint’s Day
December 8, 2019, Sunday – Feast of Immaculate
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PIZZA BOMB GROUP 2
Conception of Mary
December 31, 2019, Tuesday – Last Day of the Year
Special Days
November 2, 2019, Saturday – All Souls’ Day
December 24, 2019, Tuesday - Christmas Eve
- If unworked
▪ No pay, unless there is a favorable company policy, practice
or collective bargaining agreement (CBA) granting payment
of wages on special days, even if unworked.
- If worked
▪ First eight (8) hours – plus 30% of the daily rate of 100%
▪ Excess of eight (8) hours – plus 30% of the hourly rate on the
said day
- Falling on the employee’s rest day and if worked
▪ First eight (8) hours – plus 50% of the daily rate of 100%
▪ Excess of eight (8) hours – plus 30% of the hourly rate on the
said day.
o Employees of Pizza Bomb are also entitled to Parental Leave that
covers both Maternity Leave and Paternity leave guaranteed with
one hundred five (105) days of paid maternity leave credits and with
seven
(7) days transferable to fathers. Employees who have worked with
the company for at least one year are entitled to SSS, HDMF and
PhilHealth benefits which is to be deducted from their salary.
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PIZZA BOMB GROUP 2
o Any work-related injury shall be reported to the employer

immediately.
The company will be liable for all expenses to be paid.
• Policy on Attendance
A. Punctuality
Punctuality demonstrates respect for co-employees and is an
important quality that is expected from employees as the employment
includes shift work. Tardiness is discouraged as it will affect the business.
o Employees are expected to be present for work on time on the
scheduled workdays.
o Employees are given a fifteen (15) minute grace period. Any excess
beyond the given grace period will subject to salary deduction.
o Employee must notify the manager at least one hour in advance if
he/she expects to be late.
o Only three (3) tardiness is allowed per month. In case of excess in the
given limit will subject the employee to disciplinary action.
B. Absences o Leave of Absence slip shall be submitted a week before
the day of leave. The Leave of Absence shall be approved by the
manager. o If the employee is an hour late, it will be considered as
absent.
o Employees can have only three (3) absences per month. Excess of
three (3) absences will subject the employee to suspension of two (2)
days without pay.
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PIZZA BOMB GROUP 2
o Three (3) unnotified absences without Leave of Absence will subject
the employee to termination.
o The baker and assistant baker are not allowed to take absence on the
same day.
C. Under-time and Overtime o Working less than the scheduled working
hours is considered undertime. The employee must notify the manager if
he/she will work undertime. The under-time hours shall be deducted from
the salary of the employee concerned.
o Working more than the scheduled working hours is considered
overtime. The employee should justify the reason for over-time to be
approved by the manager. Employees shall receive a basic salary
equivalent to the hours they have to render for that day, except
overtime they are subject to OT rates.
D. Vacation Leave and Sick Leave o Employees are entitled to five (5)
days of vacation leave and five (5) days of sick leave per year. Unused
vacation and sick leave cannot be converted to cash and considered
expired. The employee shall notify the manager a week prior to the date
of his vacation leave to prevent the interruption of the business. The
employees shall immediately notify the manager when he/she is sick. The
employee can only avail of the sick in genuine cases of sickness.
o The sick leave shall be filed together with a medical certificate. o
The vacation leave shall be scheduled and approved by the
manager.
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PIZZA BOMB GROUP 2
E. Emergency leave / Unscheduled leave o Emergency leave should be
due to personal illness, injury or medical emergency or death, illness,
injury, medical emergency or urgent matter of an immediate family
member.
o Employee shall be entitled to emergency leave in case of urgent and
unanticipated matters. Employees are entitled to a maximum of ten
(10) days of emergency leave per year. Unused emergency leave is
considered expired.
o The employee availing the emergency leave or his representative
shall notify the manager within the day. Failure to notify the manager
will be considered an absence.
o Emergency leave form shall be filed upon return to work and shall be
approved by the manager.
o In case of unscheduled leave, the employee shall notify the manager
ahead of his/her work schedule of work. Unscheduled leave is
equivalent absence.
F. Paternity and maternity leave o Paternity leave is granted to all

married male employees for seven
(7) working days up to four (4) child birth including miscarriage of legitimate
spouse to be availed within sixty (60) days from delivery/miscarriage.
o For filing of paternity leave, he should notify the general manager
together with medical or birth certificate for first (1 st) time claimant
and a copy of marriage contract.
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PIZZA BOMB GROUP 2
o Maternity leave benefit is granted to female employees for a period
of one hundred five (105) days for live childbirth, regardless of the
mode of delivery, and additional of fifteen (15) days paid leave if the
female employee qualifies as a solo parent under Republic Act No.
8972, or the “Solo Parent’s Welfare Act of 2000”. In cases of
miscarriage or emergency termination of pregnancy, sixty (60) days
maternity leave with full pay shall be granted. In cases of live
childbirth, an additional maternity leaves of thirty (30) days, without
pay, can be availed of, at the option of the female employee.,
provided that the employer shall be given due notice.
o Employed female employees shall receive full pay which consists of
(i) SSS maternity benefit computed based on their average salary
and (ii) salary differential to be paid by the employer.
o Due notice to the employer must be in writing and must be given at
least forty-five (45) days before the end of the female employee’s
maternity leave. However, no prior notice shall be necessary in the
event of medical emergency, but the subsequent notice shall be
given to the employer.
G. Holiday o If the employee is called to work during regular holidays,
he/she will be paid an additional compensation equivalent to their basic
salary pay plus an additional one hundred percent (100%). (Daily rate *
200%) o For overtime work during regular holidays, he/she will be
paid an additional compensation equivalent to their basic salary pay per
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PIZZA BOMB GROUP 2
hour during regular holidays plus an additional thirty percent (30%)
provided that their overtime is authorized by the general manager.
(Daily rate * 200%) + (130% * number of hours worked) o If the
employee did not work during special holidays, the ―no work, no pay
principle will be applied.
o If he/she is called to work during special holidays, they are paid an
additional compensation equivalent to their basic salary pay plus an
additional thirty percent (30%). (Daily rate * 130%) o For overtime
work during special holidays, he/she will be paid an additional
compensation equivalent to their basic salary pay per hour during
special holidays plus an additional thirty percent (30%) provided
that their overtime is authorized by the general manager.
(Daily rate * 130%) + (Hourly rate * 130%)
• Employee Conduct & Work rules
These rules of conduct are purposefully made to ensure orderly operations
and provide a safe work environment, as well as to protect the business and
employees’ rights and information. Each employee is expected
to abide by these policies while on company premises.
This list is not inclusive of all forms of behavior that are unacceptable in
the workplace. Not following these policies is considered as a breach of rules
of conduct which may result in imposition of fine and suspension or
termination of employment.
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PIZZA BOMB GROUP 2
o Customer Service Policy – The success of a business depends on the
customers. To provide excellent customer service, the business aims to
give high quality service to its customers. Each employee must treat its
customers politely. It includes acting professionally in assessing and
addressing customer complaints.
o Confidentiality Agreement – Every company has intellectual property
right. Patent, trademarks, trade secrets, and copyrights are the four main
types of intellectual property of a business. Employees must not disclose
any proprietary information like ideas, plans and intangible assets.
o Privacy Policy – Every individual has a right to be free from interruption
of the public regarding his or her personal matters. This company restricts
the public from accessing any information about each employee.
o Use of Business Assets – Tangible business assets like machinery and
equipment, production tools, supplies and ingredients are exclusively or
primarily for business use.
o Cell Phone Usage – Employees are prohibited from using their cell
phones during work hours. It is to avoid distractions from doing their tasks.
Mobile phone of each employee should always be in silent mode and is
only allowed to be used during break time and for emergencies.
o Anti-harassment Policy – This company strives to promote a safe and
fair work environment. Each employee, regardless of the position, must be
treated with respect and decency. Discriminatory, sexual, personal,
physical, power, psychological and any other types of harassment will not
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PIZZA BOMB GROUP 2
be tolerated by the company. The General Manager is responsible to act if
an employee reported about experiencing harassment in the workplace.
o Smoking and Vape Free Policy – Smoking is prohibited within workplace
premises. The company imposes a sanction to employees caught
smoking during work hours and even during break time if within workplace
premises.
o Alcohol and Drug Policy – Employees are prohibited from working under
the influence of alcohol and illegal drugs. Possessing and soliciting of
alcohol and illegal drugs within workplace premises are also not allowed.
Sanction will be imposed to those employees that will be caught under the
influence of alcohol. While those illegal drugs user employees are required
to rehabilitate themselves.
o Workplace Gambling Policy – Any types of gambling are prohibited
during work hours and even during break time if within workplace
premises.
o Weapon and Firearms Policy – Employees are prohibited from
possessing dangerous and unauthorized materials, such as firearms,
explosives and weapons, in the workplace.
o Vandalism Policy – Vandalism is an intentional act which causes
damage to the company's property. All employees are not allowed to write
anything on the company’s walls.
• Dress Code and Hygiene
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PIZZA BOMB GROUP 2
One of the key factors to impress customer is the employee’s good
physical appearance. In the professional world, the first impression will last.
It’s important to dress well and maintain hygiene. Employees must comply
regarding personal hygiene, attire and appearance of Pizza Bomb.
o Hair – Hair must be neat and well groomed. Sideburns, mustaches,
and beards should be neatly trimmed.
o Make-Up – Light and natural make-up is fine. o Fragrance – No
heavily scented perfumes, colognes and lotions. o Nails – Clean
and trimmed fingernails.
o Jewelry – Limited jewelry and no dangling or large hoop jewelry that
may create a safety hazard to self or others.
o Tattoos – Tattoos should not be visible to customers during work
hours. Small and not offensive tattoos are subject to owner’s
approval.
o Hygiene – Maintain personal cleanliness by bathing daily. Oral
hygiene required. Use deodorant to minimize body odors.
o Clothing – Clothing must be presentable, clean and fit

appropriately.
Must wear polo shirt with its company’s logo and plain black trousers.
Rubber shoes or black, whichever is more comfortable.

• Safety, Cleanliness, Health and Sanitation
Pizza Bomb always ensure that safety and cleanliness are
both implemented. Well-organized workplace can prevent
food
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PIZZA BOMB GROUP 2
contamination, accidents and injuries. It is desirable to work in safe and
protected atmosphere. Pizza Bomb is responsible to look out for everyone’s
protection. Employees should conform to the following regulations:
o Each employee must ensure the cleanliness of their work area.
o Do not use broken equipment and must be routinely inspected to
ensure if these are working efficiently.
o Wear the right safety equipment. o Reduce workplace environment
stress.
o Awareness about the surrounding hazards.
List of major and minor offenses and sanctions
Table 51
Minor Offenses and Sanctions
Minor Offenses Sanction
Attendance
▪ Under-time without prior notice

An employee who has
▪ Unjustified employee overtime
committed any minor offense is
subject to disciplinary action or
sanctions as follows:
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PIZZA BOMB GROUP 2
Employee Conduct and Work Rules
▪ Uncourteous and unprofessional · 1st offense – Oral/Verbal
display of behavior among customers Warning
and co-workers. · 2nd offense – Written
▪ Misuse of work equipment and tools Reprimand
for personal use. · 3rd offense – Suspension
▪ Use of mobile phones and other
electronic gadgets during work hours. An accumulation of three (3)
▪ Inflicting harm, harassment, as well as minor offenses shall be
promoting offensive and discriminatory equivalent to one major.
practices among workplace.
▪ Use of cigarettes, cigars, e-cigarettes
and vape within work premises.
▪ Insubordination and disrespect against

fellow employees, employers, and
customers.
Dress Code and Hygiene
▪ Non-compliance with hygiene and
dress code policy
▪ Wearing incomplete and improper
uniform inside the work premises
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PIZZA BOMB GROUP 2
Safety, Cleanliness, Health and Sanitation
▪ Failure to maintain cleanliness of the
work area, as well as the wash area
▪ Improper and untimely garbage
disposal
▪ Failure to clean used kitchen
equipment and tools after closing hours
Table 52
Major Offenses and Sanctions
Major Offenses Sanction
Attendance Any of the following sanction
▪ Logging in/out for another co-worker; applies depending on the
allowing another co-worker to log gravity and seriousness of the
in/out on one’s behalf offense committed after due
process
and prior notice:
1. Suspension
Placing the employee on
temporary non-paid status for
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PIZZA BOMB GROUP 2
Employee Conduct and Work Rules six (6) days for disciplinary
▪ Use of derogatory and offensive reasons
language, intimidation and threat
against customers 2. Dismissal
▪ Disclosure of confidential proprietary Termination of employment of
information, as well as personal the employee for committing an
information of employees extremely serious violation of
▪ Serious misconduct or company’s rules and regulation

willful
or grave misconduct.
disobedience by the employee such as
sexual harassment, violence, and

No reinstatement shall be
threats
granted to a dismissed
▪ Reporting to work under the influence
employee/s.
of alcohol beverages and prohibited
drugs including, but not limited to,
shabu, marjuana, etc.
▪ In possession of alcoholic beverages
and illegal drugs including, but not
limited to shabu, marjuana, etc.
▪ Engaging in gambling and other illegal

activities during work hours and within
the workplace premises
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PIZZA BOMB GROUP 2
▪ Possession of dangerous weapons
and firearms
▪ Intentional damage and vandalism
▪ Theft, fraud, embezzlement, or other
proven acts of dishonesty
▪ Crimes committed against employer,
co-worker, and customers within the
establishment
▪ Gross and habitual neglect of duty
Dress Code and Hygiene
▪ Non-compliance with the dress code for

three (3) times will result to major
offense
Safety, Cleanliness, Health and Sanitation
▪ Misuse of equipment which resulted to
endangering fellow employees and
customers
▪ Possession of dangerous and
unauthorized weapons such as
firearms and explosive in the
workplace
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PIZZA BOMB GROUP 2
Internal Control
Putting internal controls will help the business set the tone of the
environment it will have. Being lax on work, not following the set of rules and
regulations, and other fraudulent actions can be minimized, if not avoided
completely. It will generally lessen different risks that may happen in the
business. It will also aid in making the working process efficient, accurate
and effective. Following are the set of internal controls the business will put
into place:
• Physical controls
- CCTVs will be placed, and have a good view of the counter, office,
working/baking area and the entrance.
- A fire extinguisher will be installed in the preparation and dining area.
- A bundy clock will be used for monitoring and timekeeping.
• Financial controls o Cash receipts,

Receivable and sales
- Cashiers are tasked to collect customer payments for dine-in
transactions. Reconciliation of the amounts collected, and
amount of sales will be made before the cashier leave and
finishes his/her shift.
- Cashier’s shortages/overages up to the amount of 20 pesos will
be considered tolerable.
- Overages will be recorded and treated as miscellaneous
income.
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PIZZA BOMB GROUP 2
- Shortages outside the threshold will be charged against the
cashier.
- Collections by the deliveryman should be given to the cashier.
Upon remittance, cashier is tasked to check if the amount
remitted is correct.
- Discrepancy from amount remitted should be charged to the
deliveryman.
- Sales are recorded by the bookkeeper based from the sales
invoice collected from the baker
o Cash/Check disbursements and Purchases o Creation of
purchase order can only be done when there is approved
requisition form by the manager o The manager is tasked to
procure from the supplier with the highest bid o Manager
should prepare and send checks signed by the owner as
payment to suppliers and other related expenses o A Petty
Cash fund will be established to cover changes and small
amount of expenses and should be under the custody of the
cashier
o Payroll
o The time recorded in the bundy clock should be first confirmed
with the use of CCTV record.
o Payroll is done by the bookkeeper twice a month.
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PIZZA BOMB GROUP 2
o Along with the actual salary, a detailed pay slip/pay stub is
given to the employees for counterchecking o Salary and its
corresponding pay slip is placed inside a mini envelope
• Inventory controls
o A critical level for Inventory and Supplies is established o
When there is non-availability of products, crews should check
and report to the manager the reason thereof o The baker
should alert and report to the manager once production
inventory and supplies reached the minimum level o Procured
supplies and inventory are received and counted by the crews.
Crews should compare the received items with the approved
requisition form. Discrepancies will be reported to the manager
to contact the supplier o Bookkeeper will record purchases
based on invoices that will be sent by the suppliers if there are
no discrepancies o Inventory and/or supply count should be
done semi-annually.
Actual and Estimated inventory should not vary by much.
• Other controls
o The manager will strictly monitor the crews and staffs o
Unsuccessful deliveries are reported to the management o
Segregation of recording, approving and custodianship is
implemented
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PIZZA BOMB GROUP 2
IV.
TECHNICAL
ASPECT
99
GROUP 2
PIZZA BOMB
Purchase Process
Start
Inventory Check:
Low Inventory
(10 mins)
Purchase Baker prepares

Requisition Requisition
Form (1 min)
No End
Approved by
Manager
Manager prepares
check for payment
Yes to supplier (2 mins)
Selection of
Purchase
Supplier and
Order
Prepare Purchase
Order (4 mins ) Yes
Match
Receiving Purchase Order
Report 00 and goods
Send Purchase received? No
Order to Supplier
(2 mins )
Supplier Crew r eceive and

delivers the Inspect goods
goods (1 day ) (10 mins )
Inform
supplier
about
discrepancy
Figure 39 (5 mins )
Purchase Process
Debit Memo
(2 mins)
GROUP 2
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PIZZA BOMB
Figure 39 shows the process of buying goods. Figure 39 shows the process of
buying goods. The purchase process of Pizza Bomb will start by the checking of
the baker if the inventory reached its minimum level. If so, he will prepare a
purchase requisition form and submit it to the manager. The manager should
have an approval first before issuing and sending a purchase order to the chosen
supplier. The company will then wait until the supplier delivers the goods. The
crew then receives and inspects the goods and if there are any discrepancies
between the purchase order and the goods received, the supplier should be
notified for the replacement and send a debit memo. On the other hand, if there
are no discrepancies, the manager will pay the supplier through check
disbursement signed by the owner while the accountant records the financial
transactions.
GROUP 2
109
PIZZA BOMB
Pre-production Process
Dough Preparation Filling Preparation
START
Three-Cheese:
Slice cheddar, parmesan
and mozzarella cheese into
cubes. Prepare as well dried
Take a large bowl and basil, oregano and marinara
add altogether plain sauce. (4 mins)
flour, milk powder,
powder sugar, salt,
instant yeast. (2 mins) Vegetarian:
Chop red onions, bell
pepper, and button
mushroom. Place on
Transfer the combined separate containers dried
ingredients on the mixer oregano, dried basil and
in order to mix well. Add garlic powder. (4 mins)
melted butter and warm
milk to the mixture.
(5 mins) Pepperoni:
Prepare pepperoni,
marinara and black
pepper altogether. Dice
Knead it for 9 minutes mozzarella cheese.
until a perfect dough is (3 mins)
ready.
(9 mins)
Total Pre -
production Process
Cover it and let it rest
Time: 60 mins
for 30 minutes.
Figure 40
Pre-production Process
GROUP 2
110
PIZZA BOMB
Production Process
Start
Preheat the oven for 45 minutes.
Press each half of the dough into a circle

with a thumb.
Mix the marinara sauce, fried Mix marinara, sautéed Mix marinara, parmesan,
pepperoni, and mozzarella mushroom, bell pepper and red mozzarella, and cheddar
cheese for the Pepperoni onion with mozzarella cheese for cheese for the Three -Cheese
filling. [15 minutes (18 pizza the Veggie filling. [15 minutes (18 filling. [15 minutes (18 pizza
pizza bombs/set )] bombs/set)]
bombs/set)]
Mix 9 tbsp of butter, 6 garlic cloves,

salt and pepper, and 3 tbsp of Italian
Seasoning and add it all to the top of
pizza bombs. [15 mins ]
Bake the 3 sets of pizza bombs for 20 minutes .
Is there No Store the pizza bombs to food

an order? warmer.
Yes
Figure 41
Produ ction Process Serve it in the counter.
End
GROUP 2
111
GROUP 2
PIZZA BOMB
Selling Process
GROUP 2
Figure 42 Selling Process
112
PIZZA BOMB GROUP 2
The selling process may be done through going to the physical store or by calling the
landline number of the business. The process starts when a customer falls in line near
the counter and chooses what product flavor they will order. The cashier will immediately
ask and confirm their order. Before charging the customers, the cashier will confirm and
ask the baker if the said flavor is available. Unavailability of the product will lead to a
finished transaction unless the customer chose to opt for other available products.
Cashier will also ask the customer if the food will be for dine in or take-out. Plastic
bag/s will be included for take-out transactions. The cashier will punch in the transactions
based on the sales order created. Doing so will result in the production of a receipt and a
sales invoice. The receipt will then be given to the customer while the sales invoice will
be collected by the crew and will be given to the baker. He will then prepare the orders
based on the invoice received while the cashier collects the payment from the customer.
Orders then will be prepared and be given to the customer. Delivery of the goods will
signify the end of the transaction. The sale transaction will be recorded by the
bookkeeper based on the sales invoice recovered from the baker. The update and
recording of inventory will be done periodically.
Another way of ordering is through landline. It almost has the same process as the
typical in-store purchases. The main difference is the medium the customers used in
ordering and the addition of actual delivering process to the location of the customer who
ordered. Unsuccessful deliveries will be reported to the manager. Actions to be done are
based on a case to case basis that is to be decided by the manager. After the
preparation of the order/s, the product will be given to the deliveryman along with the
receipt.
Successful delivery is considered to happen when the deliveryman delivered the food
safely and on time. Collections will be made by the deliveryman that will be remitted by
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PIZZA BOMB GROUP 2
him to the cashier. Remitted cash should be checked by the cashier and be compared
based in the Sales order left at the cashier’s area. Discrepancies will be charged to the
deliveryman. This is to ensure the proper collection process.
Table 53
Production Schedule
MONDAY TO SATURDAY
Pre-production Dough Preparation
Measuring of ingredients 11:00 AM - 11:03 AM
Mixing of ingredients 11:03 AM - 11:08 AM
Kneading 11:08 AM - 11:17 AM
Resting of dough and Preparation of filling 11:17 AM - 11:47 AM
Cutting and Grating 11:51 AM – 12:00 AM
Production Pizza Bomb Preparation
Batch 1
Pre-heating of oven 12:00pm-12:45pm
Pressing the dough into flat circle 12:01pm-12:12pm
Spreading the sauce 12:12pm-12:20pm
Putting of filling 12:20pm-12:38pm
Greasing of bombs 12:39pm-12:40pm
Baking 12:40pm-1:00pm
Batch 2
Batch 3
Batch 4
Batch 5
108
PIZZA BOMB GROUP 2

Bat ch 6
The Pizza Bomb is scheduled to open from Monday – Saturday, from 1:00
in the afternoon until 9:00 in the evening, having a total of 8-hours operation time.
The manager working hours will be from 11:00AM to 9:00PM, where he will be
having three sets of break time.
109
PIZZA BOMB GROUP 2
Production Capacity
Total Operation Time (8 hours * 60 minutes) 480 min.

Pre – production Time 60 min.
Production Time 60 min.
Completion time per cycle 120 min.
Number of cycles per day 6 batch
Units produced per cycle 72 pizza
Total units produced per day (72 pizza*6 batch) 432 pizza
110
PIZZA BOMB GROUP 2
Production Capacity Table for Pizza Bomb

A B C D E
Pizza bomb per
Pizza Bombs No. of No. of Pizza Bomb per
cycle
per tray tray/s cycle day (C x D)
(A x B)
18 4 72 units 6 432 units
Table 55
Production Capacity Table for Pizza Bomb
The working process of pizza will commence at 11:00AM and end by 8:00PM
with baker start the pre–production process at 11:00 AM to 12:00 PM and
working 6 hours in making of pizza bomb. The baker will take his lunch break at
3:00PM to 4:00PM. Moreover, 4 trays will be produced, and each tray consists of
18 pizza bombs. As a result, per cycle will make 72 pizza bombs. As computation
shown above, it can make 6 cycle per day which can produce for a total of 432
pizza bombs.
Manpower Schedule/Shifting
Time Baker Crew 1 Crew 2 Cashier
11:00AM – 12:00NN Time In Time In
12:01PM – 1:00PM Time In Time In
1:01PM – 2:00PM
2:01PM – 3:00PM
3:01PM – 4:00PM BREAK TIME BREAK TIME
4:01PM – 5:00PM BREAK TIME BREAK TIME
5:01PM – 6:00PM
6:01PM – 7:00PM
7:01PM – 8:00PM Time Out Time Out
8:01PM – 9:00PM Time Out Time Out
Table 56
Manpower Schedule/Shifting
Business Location
111
PIZZA BOMB GROUP 2
Figure 43
Vicinity Map
Figure 44
Facade of the Building
The business will be established at Zone 041, 930 Lerma St, Sampaloc,
Manila, 1008 Metro Manila. It is located within the University Belt, a subdistrict in
Manila where there is a high concentration of colleges and universities in the city.
Floor Plan of the Business
112
PIZZA BOMB GROUP 2
The site is a one-stored building with a size of 3.6 meters by 8.7 meters
(3,600mm x
8,700mm).
Figure 45
Floor Plan
113
PIZZA BOMB GROUP 2
Figure 46
Overview
Figure 47
Store Area
114
PIZZA BOMB GROUP 2
Figure 48
Production Area
Figure 49
Overview
115
PIZZA BOMB GROUP 2
Property, Plant and Equipment
Table 57
Production Machinery and Equipment
Unit Total Cost Total Annual
Estimated Required Unit Cost Total Cost Input VAT net of VAT Depreciation
Name Image
useful life (in peso) (in pesos) (in pesos)
(per piece) (in pesos) (in pesos)
Oven
4 Plan has capacity
STATIONARY GAS
OVEN. 10 1 65,000.00 65,000.00 6,964.29 58,035.71 5,803.57
Model – 2DG2
SN: 2MWSD3LK
Purchased: 11/26/19
Mixer
Spiral Mixer 8 kg.
flour Capacity 10 1 17,000.00 17,000.00 1,821.43 15,178.57 1,517.86
SN: 02169832
Purchased: 11/28/19
Refrigerator
Single Door, Smart
Inverter
Semi-Automatic
Defrost
Moist Balance
Crisper
Dimension 10 1 14,500.00 14,500.00 1,553.57 12,946.43 1,294.64
525x1295x555mm
Model - LG
GRY331SLZ
SN:
4TFBM3V5
Purchased: 11/26/19
116
PIZZA BOMB GROUP 2
Gas stove
SN: SKU296918689
PH-501562502 10 1 2,269.00 2,269.00 243.11 2,025.89 202.59
Purchased: 12/6/19
TOTAL 98,769.00 10,582.39 88,186.61 8,818.66
Table 58
Production Furniture and Fixtures
Total
Unit Total Cost Annual
Estimated Unit Cost Total Cost Input VAT
Name Image Required net of VAT Depreciatio
(per piece) (in pesos) n
(in pesos)
Cooling Rack
40 Planchas Rack -
2
Columns, 20 15 1 1,400.00 1,400.00 150.00 1,250.00 83.33
Planchas
/ Column
Purchased: 12/4/19
Prep Table
49.5 x 27 x 7 inches;
53 pounds Model:
SUNCOO item# 15 1 6,862.00 6,862.00 735.21 6,126.79 408.45
6886730
Purchased: 12/4/19
Cabinet
90x 40x 185cm,
Model: RF FREY 15 1 8,399.00 8,399.00 899.89 7,499.11 499.94
RFFC04
Purchased: 12/4/19
TOTAL 16,661.00 1,785.11 14,875.89 991.73
117
PIZZA BOMB GROUP 2
Table 59
Office Machinery and Equipment
Estimated Unit Cost Total Cost (in Input VAT
Name Image Required net of VAT Depreciation
useful life (in peso) pesos) (in pesos)
Bundy Clock
Up to 1,000
fingerprints/ 200,000
transactions.
10 1 8,000.00 8,000.00 857.14 7,142.86 714.29
SN: 59867499
Purchased: 11/29/19
Laptop
Core I3
Ram: 4GB
15.60-inch 5 1 28,495.00 28,495.00 3,053.04 25,441.96 5,088.39
Hard Disk: 1TB
SN: 68998886
Purchased: 11/30/19
Printer
Print Speed: 19ppm
Capacity: 100 sheets
Quality: 600 x 600 dpi 5 1 4,990.00 4,990.00 534.64 4,455.36 891.07
SN: 75295886
Purchased: 11/30/19
Cordless Phone
1.4” Black-lit LCD
Display, 20-station
10 1 1,575.00 1,575.00 168.75 1,406.25 140.63
Caller ID
SN: 65825794
Purchased: 11/30/19
118
PIZZA BOMB GROUP 2
CCTV
1.0 Megapixel
Up to 720 Res.
True Day/Night 5 1 1,300.00 1,300.00 139.29 1,160.71 232.14
Ip66 Weatherproof
SN: 56435685
Purchased: 12/3/19
Air Conditioner
Cooling: 9800kJ/hW
Digital Inverter
Fast Cooling
10 1 18,500.00 18,500.00 1,982.14 16,517.86 1,651.79
SN: 76625GZ9
Purchased: 12/6/19
TOTAL 62,860.00 6,735.00 56,125.00 8,718.30
Table 60
Office furniture and fixtures
Estimated Required Unit Cost Total Cost Input VAT net of VAT Depreciation
Name Image
Office Table
(90W x 45D x75H
20 1 1,823 1,823 195.32 1,627.68 81.38
cm)
Purchased: 12/2/19
Swivel Chair
10 1 1,418 1,418 151.93 1266.07 126.61
Purchased: 12/2/19
119
PIZZA BOMB GROUP 2
Drawer
(40W x 56D x 65H) 20 1 3,100 3,100 332.14 2,767.86 138.39
Purchased: 12/2/19
Bulletin Board
(120x 90 cm) 10 1 1,950 1,950 208.93 1,741.07 174.11
Purchased: 12/2/19
Chair 10 1 514 514 55.07 458.93 45.89

Purchased: 12/2/19
Total 8,805.00 943.39 7,861.61 566.38
Table 61
Store machinery and equipment
Name Image Required net of VAT Depreciation
Cash register
Veissen VS-
ECR02
SN: 6EYXHTQW
10 1 13,990.00 13,990.00 1,498.93 12,491.07 1,249.11
Purchased:
12/1/19
120
PIZZA BOMB GROUP 2
Food warmer
1.94kw220v
(66x44x63.5cm)
15 1 13,000.00 13,000.00 1,392.86 11,607.14 773.81
SN: 54N2NRMS
Purchased:
12/1/ 19
Air Conditioner
Cooling:
9800kJ/hW
Digital Inverter
10 1 18,500.00 18,500.00 1,982.14 16,517.86 1,651.79
Fast Cooling
SN: A35XW8AE
Purchased:
12/1/19
CCTV
1.0 Megapixel
Up to 720 Res.
True Day/Night 5 4 1,300.00 5,200.00 557.14 4,642.86 928.57
SN: 56435685
Purchased:
12/3/ 19
Digital Menu
Board
(32in Display)
20 1 28,000.00 28,000.00 3,000.00 25,000.00 1,250.00
SN: 6APPVAK8
Purchased:
12/1/19
Trash Can
Purchased: 5 1 185.00 185.00 19.82 165.18 33.04
12/7/19
121
PIZZA BOMB GROUP 2
Motorcycle
Fuel Tank
Capacity(L): 3.7
Weight(kg): 95.0
L*W*H(mm): 1,820
15 1 63,900.00 63,900.00 6,846.43 57,053.57 3,803.57
x 675 x 1,050
Purchased:
12/3/19
Helmet
Shell Type: ABS
Step-style 7 mode
shield leveling
Extra soft Cheek 5 1 599.00 599.00 64.18 534.82 106.96
and temporal
plush
Purchased:
12/3/19
Total 143,374.00 15,361.50 128,012.50 9,796.85
Table 62
Store furniture and fixtures
Total
Unit Total Cost Annual
Name Image Required net of VAT Depreciatio
(per piece) (in pesos) n
(in pesos)
Checkout
Counter
L1300*W600*
10 1 19,197.00 19,197.00 2,056.82 17,140.18 1,714.02
H900mm
Purchased:
12/3/19
122
PIZZA BOMB GROUP 2
Tables
Purchased: 10 3 3,199.00 9,597.00 1,028.25 8,568.75 856.88
12/2/ 19
Couch
Purchased: 10 1 3,680.00 3,680.00 394.29 3,285.71 328.57
12/2/ 19
Chairs
Purchased: 10 8 514.00 4,112.00 440.57 3,671.43 367.14
12/2/19
Total 36,586.00 3,919.93 32,666.07 3,266.61
Table 63
Production Tools
Unit Total Input Total Cost net of
Unit
Name Image Cost (in Cost (in VAT (in VAT (in pesos)
Required
peso) pesos) pesos)
Measuring cups 2 66.33 132.66 14.21 118.45

(per set)
Measuring
spoon 2 76.95 153.90 16.49 137.41
(per set)
Baking sheet 6 250.00 1,500.00 160.71 1339.29
123
PIZZA BOMB GROUP 2
Pastry brush 4 55.95 223.80 23.98 199.82
Glass bowls 3 58.33 174.99 18.75 156.24
Tongs 2 99.95 199.90 21.42 178.48
Knives 2 1,299.75 2,599.50 278.52 2,320.98
Scissors 1 176.75 176.75 18.94 157.81
Electronic Digital
1 128.00 128.00 13.71 114.29
Weighing Scale
Chopping board 1 279.00 279.00 29.89 249.11
Total 5,768.40 618.04 5,150.36
124
PIZZA BOMB GROUP 2
Table 64 Office
Tools
Total
Total Cost net of
Unit Cost Cost Input VAT
Name Image Unit Required VAT
(in peso) (in (in pesos)
(in pesos)
pesos)
Cash Box 1 585 585.00 62.68 522.32
Manual
1 pc. 250.00 250.00 26.79 223.21
Calculator
Scissors 2 pcs. 15.00 30.00 3.21 26.79
Cutter 1 pc. 20.00 20.00 2.14 17.86
Tape
1 pc. 60.00 60.00 6.43 53.57
Dispenser
125
PIZZA BOMB GROUP 2
Sharpener 2 pcs. 5.00 5.00 0.54 4.46
Stapler 1 pc. 70.00 70.00 7.50 62.50
Puncher 1 pc. 58.00 58.00 6.21 51.79
Total 1,078.00 115.50 962.50
Table 65
Store Tools
Unit Total Input
Total Cost net of
Unit Cost Cost VAT
Name Image VAT
Required (in (in (in
(in pesos)
peso) pesos) pesos)
Mop 1 290.00 290.00 31.07 258.93
Dustpan 1 70.00 70.00 7.50 62.50
126
PIZZA BOMB GROUP 2
Broom 2 150.00 300.00 32.14 267.86
Total 660.00 70.71 589.29
Table 66 Kitchen
Supplies
Total Cost net
Unit Unit Cost Total Cost Input VAT of VAT
Name Image
Required (in peso) (in pesos) (in pesos)
(in pesos)
Rubber
gloves 2 56.00 112.00 12.00 100.00
(per set)
Disposable
Gloves 4 35.00 140.00 15.00 125.00
(50 pcs/box)
Plastic wrap
2 275.00 550.00 58.93 491.07
(per roll)
Kitchen towel 6 30.00 180.00 19.29 160.71
Potholder 48 5.00 240.00 25.71 214.29
127
PIZZA BOMB GROUP 2
Parchment
60 70.00 4,200.00 450.00 3,750.00
paper
Smart
Dishwashing 12 39.75 477.00 51.11 425.89
Paste
Hairnet (100
2 179.00 358.00 38.36 319.64
pcs. /set)
Total 6,145.00 658.39 5,486.61
Table 67
Office Supplies
Total Input
Unit Total Cost net of
Unit Cost VAT
Name Image Cost VAT
Required (in (in
(in peso) (in pesos)
pesos) pesos)
Pencil
1 94.75 94.75 10.15 84.60
(12 pcs.)
Ballpen 20 5.00 100.00 10.71 89.29
Short Bond
1
Paper 155.00 155.00 16.61 138.39
(per ream)
128
PIZZA BOMB GROUP 2
Long Bond
1
Paper 185.00 185.00 19.82 165.18
(per ream)
Staple wire 2 40.00 80.00 8.57 71.43
Eraser 2 6.00 12.00 1.29 10.71
Scotch Tape 2 12.00 24.00 2.57 21.43
Small
Envelope 7 20.00 140.00 15.00 125.00
(25 pcs)
Short Brown
12 2.00 24.00 2.57 21.43
Envelope
Long Brown
12 4.00 48.00 5.14 42.86
Envelope
Paper Clips
1 12.00 12.00 1.29 10.71
(per box)
129
PIZZA BOMB GROUP 2
Columnar
2 36.00 72.00 7.71 64.29
Notebook
Short Folder 1
100.00 100.00 10.71 89.29
(10 pcs.)
Long Folder
1 120.00 120.00 12.86 107.14
(10 pcs.)
Rubber
Bands 1 50.00 50.00 5.36 44.64
(per box)
Petty Cash
Vouchers 1 70.00 70.00 7.50 62.50
(10 pads)
Binder Clips
1 40.00 40.00 4.29 35.71
(24 pcs)
Timecards
1 80.00 80.00 8.57 71.43
(100 pcs.)
Permanent
4 20.00 80.00 8.57 71.43
Marker
130
PIZZA BOMB GROUP 2
Glue 1 23.00 23.00 2.46 20.54
Total 1,509.75 161.76 1,347.99

Table 68 Store
Supplies
Unit Total Input
Total Cost net of
Unit Cost Cost VAT
Name Image VAT
Required (in peso) (in (in
(in pesos)
pesos) pesos)
Pre-cut table
napkin 24 88.75 2,130.00 228.21 1,901.79
1000 sheets (5”x5”)
Cash Register
12 68.00 816.00 87.43 728.57
Rolls
Paper bag 24710 0.34 8,401.40 900.15 7,501.25
Alcohol 3 151.75 455.25 48.78 406.47
131
PIZZA BOMB GROUP 2
Microfiber Wiping
96 15.00 1,440.00 154.29 1,285.71
Cloths
Trash Bags
2 300.00 600.00 64.29 535.71
(100 pcs.)
Mini Tray 20218 1.50 30,327.00 3,249.32 27,077.68
Paper Bucket
824 55.00 45,320.00 4,855.71 40,464.29
30pcs/set
24 10.00 240.00 25.71 214.29

Toothpick
Total 89,729.65 9,613.89 80,115.76
Table 69
Leasehold Improvements
Estimated Required Unit Cost Total Cost Input VAT net of VAT Amortization
Name Image
Interior
10 32 250.00 8,000.00 857.14 7,142.86 714.29
Flooring
132
PIZZA BOMB GROUP 2
Interior Walls 10 20 200.00 4,000.00 428.57 3,571.43 357.14
Restroom
10 2 7,500.00 15,000.00 1607.14 13,392.86 1339.29
Accessories
Electric
Lighting 10 2 2,000.00 4,000.00 428.57 3,571.43 357.14
Fixtures
Sink 10 1 2,850.00 2,850.00 305.36 2,544.64 254.46
Glass Door 10 1 7,000.00 7,000.00 750.00 6,250.00 625
Ceiling Works 10 32 300.00 9,600.00 1,028.57 8,571.43 857.14
Door 10 2 1,900.00 3,800.00 407.14 3,392.86 339.29
Total 54,250.00 5,812.5 48,437.5 4,843.75
133
PIZZA BOMB GROUP 2
Product Cost
Direct Materials Requirement
DIRECT MATERIAL FOR DOUGH

ITEMS UNIT MEASUREMENT QUANTITY UNIT COST Amount
Yeast Grams 266 0.44 P117.04
Butter Grams 3200 0.20 640.00
Flour Kilograms 25.6 29.20 747.52
Milk Powder Kilograms 1.6 210 336.00
Powdered Sugar Grams 266 0.11 29.26
Iodized Salt Grams 133 0.04 5.32
239.99 1,875.14
Total Cost 1875.14
Total Units Produced 432
Cost per Unit 4.34
Cost per Unit (net of input vat) 3.88
Table 70
Direct Material for Dough
DIRECT MATERIALS FOR THREE-CHEESE

ITEMS UNIT MEASUREMENT QUANTITY UNIT COST AMOUNT
Cheddar Cheese Kilograms 1 0.21 210.00
Parmesan Cheese Kilograms 1 0.31 310.00
Mozzarella Cheese Kilograms 1 0.32 320.00
Marinara Sauce Grams 709 0.47 333.23

Dried basil Grams 36 1.60 57.60
Dried Oregano Grams 72 0.70 50.40

GROUP 2
134
PIZZA BOMB
Garlic Powder Grams 36 0.85 30.60
4.46 1311.83
Total Cost 1311.83
Total Units 144

Produced
Cost per Unit 9.11
Cost per Unit (net of nput vat) 8.13

i
Table 71
Direct Material for Three-Cheese
DIRECT MATERIALS FOR VEGETARIAN

UNIT QTY REQ PER UNIT TOTAL COST PER
ITEMS MEASUREMENT DAY COST DAY
Red Onion Grams 250 0.08 20.00
Bell Pepper Grams 100 0.30 30.00
Button
Mushroom Grams 750 0.12 90.00
Marinara
Sauce Grams 709 0.47 333.23
Dried oregano Grams 72 0.70 50.40
Garlic powder Grams 36 0.85 30.60
Dried Basil Grams 36 1.60 57.60
4.12 611.83
Total Cost 611.83
Cost per Unit 4.25

Table 72
Direct Material for Vegetarian
141
PIZZA BOMB GROUP 2
DIRECT MATERIALS FOR PEPPERONI

ITEMS UNIT MEASUREMENT QUANTITY UNIT COST AMOUNT
Pepperoni Grams 288 0.33 95.04
Marinara Sauce Grams 709 0.47 333.23

Mozzarella Cheese Grams 750 1.08 810.00
Black pepper Grams 45 0.60 27.00
2.48 1265.27
Total Cost 1265.27
Cost per Unit 8.79
Table 73
Direct Material for Pepperoni
136
PIZZA BOMB
GROUP 2
Direct Labor Cost

Employee's Share Net Employer's Share Total
Hourly Daily Monthly Employer
SSS PhilHea HDM Tax Amoun SSS PhilHea HDM
Rate Rate Salary share
(4%) lt h F t (8%) lt h F
Manage 134.6 1,076. 28,000.0 825.7 24,961.
1,120 385 100 2,270 385 100 2755
r 2 92 0 3 67
653.8 17,000.0 15,986. 1,723.7
Baker 81.73 680 233.75 100 1,390 233.75 100
5 0 - 25 5
Bookkee 18,825.
769.2 20,000.0
p 96.15 800 275 100 - 00 1,630 275 100 2,005
3 0
er
500.0 13,000.0 12,201. 1,328.7
Cashier 62.50 520 178.75 100 1,050 178.75 100
0 0 - 25 5
500.0 13,000.0 12,201. 1,328.7
Crew 1 62.50 520 178.75 100 1,050 178.75 100
0 0 - 25 5
500.0 13,000.0 12,201. 1,328.7
Crew 2 62.50 520 178.75 100 1,050 178.75 100
0 0 - 25 5
4,000. 104,000. 4,160. 600. 96,376. 8,440. 600. 10,470.
500.0 00 00 00 1,430.0 00 825.7 6 00 1,430.0 00 00
Total
0 0 3 0
7
Table 74
Monthly Salary Scale
Total Direct Pizza Bomb

Hours worked Direct Labor
Employee Hourly Rate Labor Cost per Produced per
per day Cost per Unit
Day Day
Baker 88.54 8 708.32 432 1.64
Total 88.54 8 708.32 432 1.64
Table 75
PIZZA BOMB
Total Direct Labor Cost
143
Schedule of Overhead and Expenses
Indirect Material
F (E*B)
A B C D E
Unit Cost (In Peso) Require

Required Unit Per Total Cost
Items d Per
Per Day Per Meal Per Day
Piece
Pack
200 sheets 1000
Table Napkin sheets 79.241 2 0.16 31.70
Paper Bag 79 pieces 1 0.30 23.70
Mini Tray 65 pieces 1 piece 1.3393 1 1.34 87.05
Paper Bucket
79 pieces 30 pieces 49.108 1 1.64 129.32
Toothpick 200 pieces 300 pieces 214.3 1 0.71 142.86
Total 3.99 414.63
Production days in a year 312
Total Annually 129,364.13

Table 76
Indirect Material
Depreciation
Depreciable Annually Production Selling Admin
Production Machinery and
8,818.66 8,818.66 - -
Equipment
Production Furniture and
1,826.06 1,826.06 - -
Fixture
Office Machinery and
8,718.30 - - 8,718.30
Equipment
Office Furniture and
520.49 - - 520.49
Fixtures
Store Machinery and
6,395.24 - 6,395.24 -
Equipment
139
PIZZA BOMB GROUP 2
Store Furnitures and
3,266.61 - 3,266.61 -
Fixtures
TOTAL 29,545.36 10,644.72 9,661.85 9,238.79
Table 77
Depreciation
Rent
Area Percentage Monthly Annually
Production 31%
9.75 sqm 6,200 74,400
Area
Store Area 19.26 sqm 62% 12,400 148,800
Office Area 2.31 sqm 7% 1,400 16,800
TOTAL 31.32sqm 20,000 240,000
Table 78
Rent
Repairs and Maintenance

Percentag
Area Area Monthly Annually
e
Production Area 9.75 sqm 31% 113.91 1,366.89
Store Area 19.26 sqm 62% 227.82 2,733.78
Office Area 2.31 sqm 7% 25.72 308.65
TOTAL 31.32 sqm 367.44 4,409.33
Table 79
Utility – Electricity
Production Area 9.75 sqm 31% 4,151.76 49,821.43
Store Area 19.26 sqm 62% 8,303.57 99,642.86
Office Area 2.31 sqm 7% 937.5 11,250
TOTAL 31.32 sqm 13,392.86 160,714.29
Table 80
Utility-Electricity
Utility – Water Bill
140
Production Area 9.75 sqm 31%
553.57 6,642.86
Store Area 19.26 sqm 62% 1,107.14 13,285.71
Office Area 2.31 sqm 7% 125 1,500
TOTAL 31.32 sqm 1,785.71 21,428.57
Table 81
Utility-Water Bill
Utility – Telecommunications
- -
Store Area 19.26 sqm 62% 240.68 2,888.20
Office Area 2.31 sqm 7% 27.17 326.09
TOTAL 31.32 sqm 267.86 3,214.29
Table 82
Utility- Telecommunications
Utility – Gas
725.45 8,705.36
Store Area 19.26 sqm 62% - -
Office Area 2.31 sqm 7% - -
TOTAL 31.32 sqm 725.45 8,705.36
Table 83
Utility-Gas
141
PIZZA BOMB GROUP 2
Indirect Labor
Employee Monthly Salary Overhead Expense
Manager 28,000.00 8,400.00 19,600.00
Bookkeeper 20,000.00 0.00 20,000.00
Accountant 8,000 0.00 8,000.00
Cashier 13,000.00 0.00 13,000.00
Crew 1 13,000.00 3,900.00 9,100.00
Crew 2 13,000.00 3,900.00 9,100.00
Monthly Total 95,000.00 16,200.00 78,800.00
Yearly Total 1,140,000.00 194,400.00 945,600.00
Table 84
Indirect Labor
Share of Employer
Phil
Employee SSS HDMF Total Overhead Expense
Health
Manager 2,270.00 385.00 100.00 2,755.00 826.50 1,928.50
Bookkeeper 1,630.00 275.00 100.00 2,005.00 0.00 1,630.00
Baker 1,390.00 233.75 100.00 1,723.75 0.00 1,723.75
Cashier 1,050.00 178.75 100.00 1,328.75 0.00 1,328.75
Crew 1 1,050.00 178.75 100.00 1,328.75 398.62 930.13
Crew 2 1,050.00 178.75 100.00 1,328.75 398.62 930.13
Monthly
8,440.00 1,430.00 600.00 10,470.00 1,623.74 8,471.26
Total
Yearly
101,280.00 17,160.00 7,200.00 124,320.00 19,484.88 101,655.12
Total
Table 85
Share of Employer
Total Cost Total Cost Total Cost (per
Overheads
(Per Day) (per month) year)
Indirect Materials 414.63 10,780.34 129,364.13
Indirect Labor 623.08 16,200 194,400
Total 1,037.71 26,980.34 323,764.13
Units Produced (432
432 11,232 134,784
per day)
Variable Overhead
2.40
per Unit
Table 86
List of Variable Overhead
142
PIZZA BOMB GROUP 2
List of Fixed Overhead

Total Cost Total Cost Total Cost
Overheads
(per day) (per month) (per year)
Rent 238.46 6,200 74,400
Utilities 208.88 5,430.80 65,169.64
Repairs and Maintenance 7.82 203.41 2,440.88
Depreciation 31.44 817.53 9,810.39
Share of Employer 61.18 1,590.73 19,088.80
Total 547.79 14,242.47 170,910
Days in a year 312
Fixed Overhead per day 547.79
Table 87
List of Fixed Overhead
Manufacturing Overhead Cost

ITEMS ANNUALLY
Indirect Material 129,364.13

Indirect Labor 194,400
Rent 74,400
Utilities 65,169.64
Repairs and Maintenance 2,440.88
Depreciation 9,810.39
Share of Employer 19,088.80
Total Overhead Cost 494,673.77
Months in a year 12
TOTAL OVERHEAD PER MONTH 41,222.81
Units produced per month 11,232
Overhead per Unit 3.67
Table 88
Manufacturing Overhead Cost
143
PIZZA BOMB GROUP 2
V.
FINANCIAL
ASPECT
GENERAL FINANCIAL ASSUMPTIONS
1. The basis of preparation of financial statements shall be in accordance with
Philippine Accounting Standards (PAS 1) – Presentation of Financial
Statements.
2. Projections are made for 5 years from 2020 to 2024.
3. Pizza Bomb is a VAT-Registered sole proprietorship.
4. 3.1% inflation rate shall be assumed every year.
5. Accrual basis of accounting shall be the basis of preparation of financial
records and statements except for cash flow information.
Cash
1. Cash is stated at face amount. Cash includes petty cash fund, change
fund, cash on hand and cash in bank.
144
PIZZA BOMB GROUP 2
2. Cash shall be maintained at ₱30,000 per year which is composed of petty
cash fund, change fund, cash on hand and cash in bank.
3. Petty Cash Fund is established at ₱10,000 under the imprest fund system
and will be replenished when the remaining balance has reached its 20%
of the established amount.
4. 20% of cash is on hand of Pizza Bomb, while the remaining 80% will be
deposited in the bank after deducting petty cash fund and change fund.
5. Change Fund of ₱2,000 will be established to be used exclusively for
change.
Inventory
1. Inventory is valued at the lower of cost and net realizable value in
accordance with PAS 2.
2. First-in First-out (FIFO) method of inventory valuation shall be used.
3. Inventory shall be valued at acquisition cost net of Input VAT.
4. Beginning Inventory per year shall be equal to two (2) weeks of

production.
Supplies
1. 100% of the supplies will be consumed in a year.
2. Ending inventory of supplies for the year shall include 10% of the next
year's required supplies.
1. It shall be carried at cost less accumulated depreciation and impairment
under the Cost Model in accordance with PAS 16.
145
PIZZA BOMB GROUP 2
2. Straight Line Depreciation Method shall be used in computing the
depreciation and amortization expense every year.
3. It shall be disposed when fully depreciated and gain or loss on disposal
shall be included in profit or loss.
4. The determination of estimated useful life will be dependent on the age of
the asset when purchased, how frequently the asset is used and
environmental conditions of the business.
1. Repairs and Maintenance expenditures for machinery and equipment shall
be 5% of the cost per year, subject to 3.1% inflation rate. It shall be
allocated to factory overhead (31%), selling expenses (62%) and
administrative expenses (7%).
Payment of Expenses and Other Payables
1. Utilities expense shall be paid as it becomes due. It shall be allocated to
factory overhead (31%), selling expenses (62%) and administrative
expenses (7%).
2. Rent may be paid until 15th of the following month. Business is expected
not to pay cash until obligations are due. Initial payment includes payment
of rent for the current month, one-month advance and two months security
deposit.
3. Salaries shall be paid to all employees every 15 th and last day of the
month.
4. Professional fees shall be based on a fixed fee worth ₱8,000 every month.
146
PIZZA BOMB GROUP 2
5. Value Added Tax shall be paid within 25 days following the close of the
taxable quarter.
6. Accounts payable are due 30 days from the date of purchase
7. The business will hold payment until the payable is due.
Purchases
1. All purchases will be paid in check upon receipt of purchase invoice from
the suppliers.
2. Purchase of raw materials inventory will be made when it has reached its
25% of total inventory.

3. Purchase of drinks shall be done every two weeks and shall increase by
10% every year. Drinks shall be accounted for as part of cost of sales,
particularly finished goods.
4. Spoiled raw materials shall be assumed to be normal loss and shall be
accounted for as part of cost of sales. It is estimated to be 3% of direct
materials.
5. 20% of production tools shall be replaced each year and such tools shall
be accounted for as part of cost of sales.
6. Purchase of all supplies shall be done every year in order to meet the
respective ending balances at year end.
Allocation of Cost
1. The salary of the manager shall be allocated 70% to administrative
expenses and 30% to overhead.
147
PIZZA BOMB GROUP 2
2. The salary of baker shall be allocated to direct labor, while the employee
benefits of all employees shall be allocated to general, selling and
administrative expense.
3. The salary of accountant shall be expensed outright.
4. The salary of the cashier shall be allocated to selling expenses while the
salaries of the two crews shall be allocated to 30% overhead and 70%
selling expense.
5. Rent expense shall be allocated to factory overhead (31%), selling
expenses (62%) and administrative expenses (7%). Allocation of rent
expense is based on the dimension of Production Area, Store Area and
Office Area.
Sales
1. All sales are on cash
2. Projected sales will be based on the normal capacity, which will increase
by 10% every year.
3. Total sales shall be assumed to be 34% for Pepperoni, 25% for Vegetarian
and 41% for Three-Cheese.
148
PIZZA BOMB GROUP 2
CHART OF ACCOUNTS
ASSETS 115 Leasehold Improvements
115- Accumulated Amortization-
Current Assets
1 Leasehold Improvements
100 Cash and Cash Equivalents 116 Other Non-Current Assets
100- Cash on Hand 116- Security Rent Deposit
1 1
100- Cash in Bank 116- Production tools
2 2
100- Petty Cash Fund 116- Office Tools
3 3
100- Change Fund 116- Store Tools
4 4
101 Inventories LIABILITIES
101- Raw Materials Current Liabilities
1
Finished Goods (Bottled
101-
200 Account Payable
2
Water)
102 Prepayments 201 Salaries Payable
102- Kitchen Supplies 202 Rent Payable
1
102- Store Supplies 203 Other Payables
2
102- Office Supplies 203- Utilities Payable
3 1
102- Prepaid Rent 203- Payable to SSS
4 2
106 Input VAT 203- Payable to PhilHealth
3
Non-current Assets 203- Payable to HDMF
4
Property, Plant, and 203-
108 Payable to EC
Equipment 5
Production Machinery and 203-
109 Withholding Tax Payable
Equipment 6
Accumulated Depreciation-
109-
Production Machinery and 204 VAT Payable
1
Equipment
Production, Furniture, and
110 CAPITAL
Fixtures
110- Accumulated Depreciation- 300 Faustino, Capital
149
PIZZA BOMB GROUP 2
Production, Furniture and

1
Fixtures
111 301 Faustino, Drawings
Equipment
111- Income and Expense
Office Machinery 302
1 Summary
and Equipment
112 Office Furniture and Fixtures
112-
1
Office Furniture and Fixtures
Store, Machinery, and
113
Equipment
113-
Store Machinery,
1
and Equipment
114 Store Furniture and Fixtures
114-
1
Store Furniture and Fixtures
REVENUE
400 Sales Revenue
401 Miscellaneous Income
EXPENSES
500 Cost of Sales
501 Salaries and Wages Expense
502 Store Supplies
503 Kitchen Supplies
504 Office Supplies
505 Depreciation- Production
machinery and equipment
506 Depreciation- Production
Furniture and Fixtures
507 Depreciation- Office Machinery,
and Equipment
508 Depreciation - Office Furniture,
and Fixtures
509 Depreciation - Store Machinery,
and Equipment
150
PIZZA BOMB GROUP 2
510 Depreciation- Store Furniture,

and Fixtures
511 Amortization- Leasehold
Improvements
512 Rent Expense
513 Transportation Expense
515 Repairs and Maintenance
516 Advertisement and Promotion
517 Professional Fee
518 Taxes and Licenses
519 Miscellaneous Expense
514 Utilities Expense
514-1 Electricity
514-2 Water
514-3 Telecommunications
514-4 Gas
PIZZA BOMB
Total Project Cost
Current Assets Amount

Kitchen Supplies 457.22
Office Supplies 112.33
Store Supplies 6,999.80
Prepaid Rent 40,000.00
Input Vat 46,511.34
Total Current Assets ₱ 94,080.69
Non-Current Assets
Property, Plant and Equipment 376,165.18
Production Tools 2,308.17
Office Tools 962.50
Store Tools 589.29
Security Deposit 20,000.00
Total Non-Current Assets ₱ 400,025.14
Pre-Operating Expenses
Licenses & Fees 22,080.00
Hiring expense 1,500.00
151
PIZZA BOMB GROUP 2
Advertising Expense 18,000.00

Transportation Expense 7,000.00
Total Pre-Operating Expenses 48,580.00
TOTAL PROJECT COST ₱ 542,685.83
Less: Investment 1,000,000.00
Ending Balance, Cash ₱ 457,314.17
INVESTMENT OF THE OWNERS
With the current asset and net worth, the sole proprietor of Pizza Bomb,
Andrew John Faustino, will invest a capital of ₱1,000,000.
FORM OF FINANCING
The business, as a sole proprietorship, would get its financing from the personal
funds of the sole proprietor. This will be used for starting the operations of the
business, including payment of legal requirements, administration costs, rental
fees, and other costs that would be needed to finance the production and
marketing of the business.
152
PIZZA BOMB GROUP 2
PIZZA BOMB
Pre-operating Statement of Cash Flows For
the Year 0
(All amounts in nearest Philippine Peso)
Cash Flows from Operating Activities Note Amount

Cash prepaid for rent 40,000.0
0
Cash paid for purchase of supplies 8,477.6
7
Cash paid for licenses and fees 22,080.0
0
Cash paid hiring expense 1,500.0
0
Cash paid for advertising expense 18,000.0
0
Cash paid for transportation expense 7,000.0
0
Net Cash Outflow from Operating Activities 97,057.6
7
Cash Flows from Investing Activities

Acquisition of property, plant and equipment 421,305
Cash paid for purchase for production tools 2,585.1

5
Cash paid for purchase for office tools 1,078.0
0
Cash paid for purchase for store tools 660.0
0
Cash paid for security rent deposit 20,000.0
0
Net Cash Outflow from Investing Activities 445,628.1
6
Cash Flows from Financing Activities
Net Cash Inflow from Financing Activities 1,000,000.0
0
Ending balance, Cash 457,314.1
7
153
PIZZA BOMB GROUP 2
PIZZA BOMB
Pre-operating Statement of Financial Position
For the Year 0
(All amounts in nearest Philippine Peso)
ASSETS Note Amount

Current Assets
Cash and Cash Equivalents 457,314.1
7
Inventories 49,981.5
8
Prepayments 47,569.3
5
Other Current Asset 52,509.1
3
Total Current Assets 607,374.2
3
Non- Current Assets
Property, Plant and Equipment 376,165.1
8
Other Non-Current Assets
23,859.96
Total Non-Current Assets 400,025.1
3
TOTAL ASSETS 1,007,399.3
7
LIABILITIES
Accounts Payable 55,979.3
7
TOTAL LIABILITIES 55,979.3
7
OWNER’S EQUITY
Faustino, Capital 951,420.0
0
TOTAL LIABILITIES AND EQUITY 1,007,399.3
7
154
PIZZA BOMB GROUP 2
Current assets = 94,080.69

Non-current asset = 400,025.14
Cash = 457,314.17
----------------
Capital, end year 0 951,420
==========
BREAKEVEN ANALYSIS
Three-Cheese 2020 2021 2022 2023 2024

Selling Price 30.00 30.93 31.89 32.88 33.90
Variable Cost 12.07 12.33 12.60 12.89 13.19
Contribution Margin 17.93 18.60 19.29 19.99 20.70
Sales Mix 20.50% 20.50% 20.50% 20.50% 20.50%
Weighted Average of CM 3.68 3.81 3.95 4.10 4.24
Breakeven in units 35,622.65 34,439.34 33,302.37 32,222.50 31,195.12
Pepperoni 2020 2021 2022 2023 2024

Selling Price 30 30.93 31.889 32.88 33.90
Variable Cost 12.07 12.33 12.60 12.89 13.19
Sales Mix 17% 17% 17% 17% 17%
Vegetarian 2020 2021 2022 2023 2024

Selling Price 30 30.93 31.89 32.88 33.90
Variable Cost 12.07 12.33 12.60 12.89 13.19
Sales Mix 12.50% 12.50% 12.50% 12.50% 12.50%
155
PIZZA BOMB GROUP 2
Bottled water 2020 2021 2022 2023 2024

Selling Price 20 20.62 21.26 21.92 22.60
Variable Cost 15.90 16.34 16.81 17.29 17.78
Sales Mix 50% 50% 50% 50% 50%
156
Pizza Bomb
PROFIT OR LOSS PROJECTION
Revenues
7,299,567.8
Revenues 4,412,571.43 5,004,297.26 5,675,373.52 6,436,441.11 6
4,412,571.43 5,004,297.26 5,675,373.52 6,436,441.11 7,299,567.8

Total Revenue 6
Direct Costs
4,223,478.4
Cost of Sales 2,818,779.50 3,107,733.23 3,434,691.80 3,804,694.57 8
2,818,779.50 3,107,733.23 3,434,691.80 3,804,694.57 4,223,478.4

Total Direct Costs 8
1,593,791.93 1,896,564.03 2,240,681.72 2,631,746.54 3,076,089.3

Gross Profit 8
Operating expenses
86,950.36 94,648.59 103,120.43 112,423.99 122,641.8

Supplies 8
Salaries
157
PIZZA BOMB GROUP 2
849,600.00 849,600.00 849,600.00 849,600.00 849,600.0
0
165,600.00 165,600.00 165,600.00 165,600.00 165,600.0

Rent 0
128,892.86 132,888.54 137,008.08 141,255.33 145,634.2

Utilities (Communication, Light and Water) 5
For the Year Ended: Note 2020 2021 2022 2023 2024
Advertising and Promotions 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Transportation Expense 4,500.00 4,639.50 4,783.32 4,931.61 5,084.49
Repairs and maintenance 5,432.92 5,774.99 5,954.01 6,138.59 6,328.88
Professional fees 96,000.00 96,000.00 96,000.00 96,000.00 96,000.00
Taxes and Licenses Fees 21,065.00 21,065.00 21,065.00 21,065.00 21,065.00
240,283.07 241,108.80 241,108.80 241,108.80 241,108.8

Other Expenses 0
1,613,324.21 1,626,325.41 1,639,239.65 1,653,123.32 1,668,063.2

Total Operating Expenses 9
Earnings Before Interest, Taxes, Depreciation and

Amortization (EBITDA) (19,532.28) 270,238.61 601,442.07 978,623.22 1,408,026.0
9
Depreciation, Amortization and Interest
158
Depreciation and Amortization (OPEX) 27,191.89 27,191.89 27,191.89 27,191.89 27,191.89
Interest expense - - - - -
Total Depreciation, Amortization and Interest 27,191.89 27,191.89 27,191.89 27,191.89 27,191.89
(46,724.17) 243,046.72 574,250.18 951,431.33 1,380,834.2

NET INCOME (LOSS) BEFORE TAX 0
TAX RATE* - - - - -
INCOME TAX EXPENSE (BENEFIT)
1,380,834.2
PROFIT OR (LOSS) (46,724.17) 243,046.72 574,250.18 951,431.33 0
PIZZA BOMB
STATEMENT OF CHANGES IN EQUITY
For the Year: Pre-operating 2020 2021 2022 2023 2024
EQUITY
2,673,424.0
Beginning of The Year 1,000,000.00 951,420.00 904,695.83 1,147,742.55 1,721,992.74 7
Additional Investments - - - - - -
Withdrawals - - - - - -
Profit or Loss (Including Project - 1,380,834.2
Expenses in Pre-operation) 48,580.00 (46,724.17) 243,046.72 574,250.18 951,431.33 0
TOTAL EQUITY END OF THE 4,054,258.2

YEAR 951,420.00 904,695.83 1,147,742.55 1,721,992.74 2,673,424.07 7
159
PIZZA BOMB GROUP 2
160
PIZZA BOMB
STATEMENT OF FINANCIAL POSITION PROJECTION
As of End of: 2020 2021 2022 2023 2024
ASSETS
Current Assets
Invest your
cash to earn 5,933,955.7
Cash and cash equivalents more. *good
1,682,450.73 2,684,065.97 4,083,162.31 6
cash
management
1,029,584.00
Inventories 9,996.32 10,095.95 10,198.68 10,304.59 10,413.78
Prepayments 49,464.86 50,312.04 51,242.40 52,264.19 53,386.60
Other Current Asset - - - - -
1,089,045.17 1,742,858.73 2,745,507.04 4,145,731.09 5,997,756.1

Total current assets 4
Non-Current Assets

327,727.68 327,727.68 327,727.68 327,727.68 327,727.6
8
Less: Accumulated Depreciation and
Amortization 32,158.53 64,317.05 96,475.58 128,634.11 160,792.6
3
Leasehold Improvements 48,437.50 48,437.50 48,437.50 48,437.50 48,437.50
Less: Amortization
4,843.75 9,687.50 14,531.25 19,375.00 24,218.75
161
PIZZA BOMB GROUP 2
Other Non-Current Assets 23,874.27 23,888.67 23,903.15 23,917.73 23,932.40
319,443.42 287,299.29 255,155.25 223,011.30 190,867.4

Total Non-Current Assets 5
1,408,488.59 2,030,158.02 3,000,662.30 4,368,742.39 6,188,623.5

TOTAL ASSETS 8
LIABILITIES
Current Liabilities
821,703.4
Accounts Payable 328,025.21 394,600.10 529,949.61 672,118.80 8
636,467.2
Salaries Payable 83,465.48 229,819.43 358,557.48 493,910.27
2
Rent Payable
20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Vat Payable
19,503.00 22,062.92 25,491.40 29,265.39 33,613.81
52,799.07 215,933.02 344,671.08 480,023.86 622,580.8

Other Payables 1
503,792.76 882,415.46 1,278,669.56 1,695,318.32 2,134,365.3

Total Current Liabilities 2
TOTAL LIABILITIES
503,792.76 882,415.46 1,278,669.56 1,695,318.32 2,134,365.3
162
2
EQUITY
904,695.83 1,147,742.55 1,721,992.74 2,673,424.07 4,054,258.2

Faustino, Capital 7
904,695.83 1,147,742.55 1,721,992.74 2,673,424.07 4,054,258.2

TOTAL EQUITY 7
TOTAL LIABILITIES AND

EQUITY 1,408,488.59 2,030,158.02 3,000,662.30 4,368,742.39 6,188,623.5
8
PIZZA BOMB
STATEMENT OF CASH FLOWS
For the Year Ended: 2020 2021 2022 2023 2024
Operating activities
8,175,516.0
Cash received from customers 4,942,080.00 5,604,812.93 6,356,418.34 7,208,814.04 0
Less:
Cash paid for rent 209,000.00 228,000.00 228,000.00 228,000.00 228,000.00
Cash paid for purchase of supplies
99,507.37 106,955.27 116,536.88 127,059.28 138,616.00
Cash paid for purchase of raw materials 3,712,620.4
2,084,609.33 2,543,632.14 2,885,394.36 3,273,007.38
and finished goods 5
Cash paid for purchase of indirect
materials 129,364.06 133,374.35 137,508.95 141,771.73 146,166.65
Cash paid to employees 1,220,144.80 1,170,826.9
163
PIZZA BOMB GROUP 2
1,170,826.94 1,170,826.94 1,170,826.94 4
Remittance to SSS
138,600.00 151,200.00 151,200.00 151,200.00 151,200.00
Remittance to PhilHealth
31,460.00 34,320.00 34,320.00 34,320.00 34,320.00
Remittance to HDMF
13,200.00 14,400.00 14,400.00 14,400.00 14,400.00
Cash paid for EC
1,320.00 1,440.00 1,440.00 1,440.00 1,440.00
Cash paid for operating expenses
259,733.66 283,884.39 291,256.79 298,857.74 306,694.31
Taxes paid
182,395.01 284,392.01 324,401.05 369,319.48 420,926.06
6,325,210.4
Total operating activities 4,369,334.23 4,952,425.09 5,355,284.97 5,810,202.55 1
164
PIZZA BOMB GROUP 2
Net operating activities 572,745.77 652,387.84 1,001,133.37 1,398,611.49 1,850,305.59
Investing activities
487.8
Capital expenditures - 475.94 - 478.90 - 481.86 - 484.85 - 6
487.8
Total investing activities - 475.94 - 478.90 - 481.86 - 484.85 - 6
Financing activities
Long-term debt/financing - - - - -
Capital contribution - - - - -
Withdrawals - - - - -
Total financing activities - - - -

-
Net Cash flow During the Year 572,269.83 652,866.73 1,001,615.24 1,399,096.34 1,850,793.4
5
Beginning cash balance 457,314.17 1,029,584.00 1,682,450.73 2,684,065.97 4,083,162.3

1
Ending cash balance 1,029,584.00 1,682,450.73 2,684,065.97 4,083,162.31 5,933,955.7

6
165
PIZZA BOMB GROUP 2
Supplementary Notes
Note 1: Cash
and Cash Schedule Preoperating 2020 2021 2022 2023 2024
Equivalent
Cash on hand 45,719.76 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00
Petty cash fund 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Change fund 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Cash in
bankchecking 399,594.41 999,584.00 1652,450.73 2,654,065.97 4,053,162.31 5,903.955.76
account
TOTAL 457,314.17 1,029,584.00 1,682,450.73 2,684,065.97 4,083,162.31 5,933,955.76
Note 2: Inventory Schedule Pre-operating 2020 2021 2022 2023 2024

Raw Materials 7 33,911.18 6,782.24 6,782.24 6,782.24 6,782.24 6,782.24
Finished Goods (Drinks) 8 16,070.40 3,214.08 3,313.72 3,416.44 3,522.35 3,631.54
TOTAL 49,981.58 9,996.32 10,095.95 10,198.68 10,304.59 10,413.78
Note 3: Prepayments Schedule Pre-operating 2020 2021 2022 2023 2024

Kitchen Supplies 9 457.22 565.67 583.20 601.28 619.92 639.14
Office Supplies 10 112.33 138.98 143.29 147.73 152.31 157.03
Store Supplies 11 6,999.80 8,760.21 9,585.55 10,493.39 11,491.96 12,590.43
Prepaid Rent 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00
Total 47,569.35 49,464.86 50,312.04 51,242.40 52,264.19 53,386.60
Note 4: Other Current Schedule Pre-operating 2020 2021 2022 2023 2024
166
PIZZA BOMB GROUP 2
Assets
Input Vat 19, 20 &
52,509.13 295,184.50 335,472.55 375,716.03 421,188.25 472,582.47
21
Total 52,509.13 295,184.50 335,472.55 375,716.03 421,188.25 472,582.47
Note 5: Property, Plant Preoperating

Schedule 2020 2021 2022 2023 2024
and Equipment
Production Machinery
88,186.61 88,186.61 88,186.61 88,186.61 88,186.61 88,186.61
and Equipment
Less: Accumulated
Depreciation-
Production 12 - 8,818.66 17,637.32 26,455.98 35,274.64 44,093.30
Machinery and
Equipment
Carrying Amount:
Production
88,186.61 79,367.95 70,549.29 61,730.63 52,911.96 44,093.30
Machinery and
Equipment
Production Furnitures
14,875.89 14,875.89 14,875.89 14,875.89 14,875.89 14,875.89
and Fixtures
Less: Accumulated
Depreciation-
13 - 991.73 1,983.45 2,975.18 3,966.90 4,958.63
Production
Furnitures and Fixtures
Carrying Amount:
Production
14,875.89 13,884.17 12,892.44 11,900.71 10,908.99 9,917.26
Furnitures and
Fixtures
56,125.00 56,125.00 56,125.00 56,125.00 56,125.00 56,125.00
Equipment
Less: Accumulated 14 - 8,718.30 17,436.61 26,154.91 34,873.21 43,591.52
167
PIZZA BOMB GROUP 2
Depreciation-Office
Machinery and
Equipment
Carrying Amount:
Office Machinery and 56,125.00 47,406.70 38,688.39 29,970.09 21,251.79 12,533.48
Equipment
Office Furniture and
7,861.61 7,861.61 7,861.61 7,861.61 7,861.61 7,861.61
Fixtures
Less: Accumulated
Depreciation-Office 15 - 566.38 1,132.77 1,699.15 2,265.54 2,831.92
Carrying Amount:
Office Furniture and 7,861.61 7,295.22 6,728.84 6,162.46 5,596.07 5,029.69
Fixtures
Store Machinery and
128,012.50 128,012.50 128,012.50 128,012.50 128,012.50 128,012.50
Equipment
Less: Accumulated
Depreciation-Store
16 - 9,796.85 19,593.69 29,390.54 39,187.38 48,984.23
Machinery and
Equipment
Carrying Amount:
Store Machinery and 128,012.50 118,215.65 108,418.81 98,621.96 88,825.12 79,028.27
Equipment
Store Furniture and
32,666.07 32,666.07 32,666.07 32,666.07 32,666.07 32,666.07
Fixtures
Less: Accumulated
Depreciation-Store 17 - 3,266.61 6,533.21 9,799.82 13,066.43 16,333.04
Carrying Amount: Store
32,666.07 29,399.46 26,132.86 22,866.25 19,599.64 16,333.04
TOTAL 327,727.68 295,569.15 263,410.63 231,252.10 199,093.57 166,935.04
168
PIZZA BOMB GROUP 2
Note 6: Leasehold Preoperatin

Schedule 2020 2021 2022 2023 2024
Improvements g
Leasehold Improvements 48,437.50 48,437.50 48,437.50 48,437.50 48,437.50 48,437.50
Less: Accumulated
18 - 4,843.75 9,687.50 14,531.25 19,375.00 24,218.75
Amortization
Carrying Amount:
48,437.50 43,593.75 38,750.00 33,906.25 29,062.50 24,218.75
Leasehold Improvement
TOTAL 48,437.50 43,593.75 38,750.00 33,906.25 29,062.50 24,218.75
Preoperatin
Note 7: Liabilities Schedule 2020 2021 2022 2023 2024
g
Utilities Payable - 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00
Payable to SSS 35 - - 12,600.00 12,600.00 12,600.00 12,600.00
Payable to PhilHealth 36 - - 2,860.00 2,860.00 2,860.00 2,860.00
Payable to HDMF 37 - - 1,200.00 1,200.00 1,200.00 1,200.00
Payable to EC 38 - - 120.00 120.00 120.00 120.00
Withholding Tax Payable - 825.73 825.73 825.73 825.73 825.73
TOTAL - 17,825.73 34,605.73 34,605.73 34,605.73 34,605.73
Note 8: Preoperating
Sales Schedule 2020 2021 2022 2023 2024
Revenue
Sales 5 - 4,942,080.00 5,604,812.93 6,356,418.34 7,208,814.04 8,175,516.00
Output VAT - 529,508.57 600,515.67 681,044.82 772,372.93 875,948.14
Total Sales
- 4,412,571.43 5,004,297.26 5,675,373.52 6,436,441.11 7,299,567.86
net of VAT
Note 9: Cost Preoperatin

Schedule 2020 2021 2022 2023 2024
of Sales g
Direct Materials
169
PIZZA BOMB GROUP 2
Beginning of the
7 - 33,911.18 6,782.24 6,782.24 6,782.24 6,782.24
year
Purchases
7 33,911.18 1,383,576.27 1,599,880.78 1,814,424.80 2,057,739.16 2,333,681.98
during the year
Total Raw
Materials 7 33,911.18 1,417,487.45 1,606,663.02 1,821,207.03 2,064,521.40 2,340,464.22
Available for Use
End of year 7 33,911.18 6,782.24 6,782.24 6,782.24 6,782.24 6,782.24
Cost of direct
- 1,410,705.21 1,599,880.78 1,814,424.80 2,057,739.16 2,333,681.98
material used
Direct Labor 204,000.00 204,000.00 204,000.00 204,000.00 204,000.00
Factory
Overhead
Variable
Manufacturing
OH
Indirect Material 129,364.06 133,374.35 137,508.95 141,771.73 146,166.65
Indirect labor 194,400.00 194,400.00 194,400.00 194,400.00 194,400.00
Fixed
Manufacturing
OH
Rent 74,400.00 74,400.00 74,400.00 74,400.00 74,400.00
Utilities 65,169.64 67,189.90 69,272.79 71,420.25 73,634.27
Repairs and
2,440.88 2,594.56 2,674.99 2,757.92 2,843.41
maintenance
Depreciation 9,810.39 9,810.39 9,810.39 9,810.39 9,810.39
Share of
19,088.80 19,088.80 19,088.80 19,088.80 19,088.80
Employer
Total Factory
494,673.77 500,857.99 507,155.92 513,649.08 520,343.52
Overhead
Total production
2,109,378.98 2,304,738.78 2,525,580.71 2,775,388.24 3,058,025.51
cost
170
PIZZA BOMB GROUP 2
Finished Goods,
- 16,070.40 3,214.08 3,313.72 3,416.44 3,522.35
Beginning
Purchases 16,070.40 655,672.32 758,178.33 859,850.04 975,155.94 1,105,924.35
Finished Goods
16,070.40 671,742.72 761,392.41 863,163.76 978,572.38 1,109,446.70
Available for Sale
Less: Finished
16,070.40 3,214.08 3,313.72 3,416.44 3,522.35 3,631.54
Goods, Ending
Finished Goods
- 668,528.64 758,078.69 859,747.32 975,050.03 1,105,815.15
Sold
Production tools 461.63 464.50 467.38 470.27 473.19
Spoilage 40,410.24 44,451.26 48,896.39 53,786.03 59,164.63
Total Cost of
2,818,779.50 3,107,733.23 3,434,691.80 3,804,694.57 4,223,478.48
Sales
Note 10: Payroll and Preoperatin

Schedule 2020 2021 2022 2023 2024
Related Expenses g
Manager 306,831.2 306,831.2 306,831.2 306,831.2
29 306,831.24
4 4 4 4
Baker 191,835.0 191,835.0 191,835.0 191,835.0
29 191,835.00
0 0 0 0
Bookkeeper 225,900.0 225,900.0 225,900.0 225,900.0
29 225,900.00
0 0 0 0
Cashier 146,415.0 146,415.0 146,415.0 146,415.0
29 146,415.00
0 0 0 0
Crew 1 146,415.0 146,415.0 146,415.0 146,415.0
29 146,415.00
0 0 0 0
Crew 2 146,415.0 146,415.0 146,415.0 146,415.0
29 146,415.00
0 0 0 0
Professional Fee 96,000.00 96,000.00 96,000.00 96,000.00 96,000.00
13th month 104,000.0 104,000.0 104,000.0 104,000.0
34 104,000.00
0 0 0 0
BIR 39 9,083.07 9,908.80 9,908.80 9,908.80 9,908.80
171
PIZZA BOMB GROUP 2
SSS 35 92,840.00 92,840.00 92,840.00 92,840.00 92,840.00

PhilHealth 36 17,160.00 17,160.00 17,160.00 17,160.00 17,160.00
HDMF 37 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00
EC 38 660.00 720.00 720.00 720.00 720.00
Total 1,490,754. 1,491,640. 1,491,640 1,491,640 1,491,640
31 04 .04 .04 .04
Note 11: Utilities Preoperating

Schedule 2020 2021 2022 2023 2024
Expense
Electricity 44 180,000.00 185,580.00 191,332.98 197,264.30 203,379.50
Water 45 24,000.00 24,744.00 25,511.06 26,301.91 27,117.27
Heat (Gas) 47 9,750.00 10,052.25 10,363.87 10,685.15 11,016.39
Telecommunication 46 3,600.00 3,711.60 3,826.66 3,945.29 4,067.59
Total 217,350.00 224,087.85 231,034.57 238,196.65 245,580.74
Note 12: Rent Preoperating

Schedule 2020 2021 2022 2023 2024
Expense
Rent Expense 42 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00
Total 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00
Preoperatin
Note 13: Tax and Licenses Schedule 2020 2021 2022 2023 2024
g
DTI Certificate of Registration 515.00 - - - - -
Barangay Certification of
500.00 - - - - -
Registration
Capital for licenses fee 2,900.00 2,900.00 2,900.00 2,900.00 2,900.00 2,900.00
Permit fee for businesses
2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
engaged in retail
Garbage collection fee 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
Occupational fee 360.00 360.00 360.00 360.00 360.00 360.00
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PIZZA BOMB GROUP 2
Occupational police
905.00 905.00 905.00 905.00 905.00 905.00
clearance/health clearance
Plumbing inspection fee 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Electrical inspection fee 850.00 850.00 850.00 850.00 850.00 850.00
Building permit fee 500.00 500.00 500.00 500.00 500.00 500.00
Sign board permit fee 400.00 400.00 400.00 400.00 400.00 400.00
Annual Registration Fee 500.00 500.00 500.00 500.00 500.00 500.00
Certification Fee 15.00 15.00 15.00 15.00 15.00 15.00
Documentary Stamp 15.00 15.00 15.00 15.00 15.00 15.00
Special Books 600.00 600.00 600.00 600.00 600.00 600.00
Print receipts and invoices at
4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
the print shops
License to Operate and
Certificate of Product 4,020.00 4,020.00 4,020.00 4,020.00 4,020.00 4,020.00
Registration
Total 22,080.00 21,065.00 21,065.00 21,065.00 21,065.00 21,065.00
Note 14: Transportation Preoperatin

Schedule 2020 2021 2022 2023 2024
Expense g
Transportation Expense 4,500.00 4,639.50 4,783.32 4,931.61 5,084.49
Total 4,500.00 4,639.50 4,783.32 4,931.61 5,084.49
Note 15: Supplies Preoperatin

Schedule 2020 2021 2022 2023 2024
Expense g
Kitchen Supplies Expense - 5,486.61 5,656.69 5,832.05 6,012.84 6,199.24
Office Supplies Expense - 1,347.99 1,389.78 1,432.86 1,477.28 1,523.08
Store Supplies Expense - 80,115.76 87,602.12 95,855.52 104,933.87 114,919.56
Total - 86,950.36 94,648.59 103,120.43 112,423.99 122,641.88
173
PIZZA BOMB GROUP 2
Note 16: Repairs and Preoperating

Schedule 2020 2021 2022 2023 2024
Maintenance Expense
Repairs and Maintenance 8,818.66 9,092.04 9,373.89 9,664.48 9,964.08
Expense
Total 8,818.66 9,092.04 9,373.89 9,664.48 9,964.08
Preoperating
Note 17: Other Expenses Schedule 2020 2021 2022 2023 2024
Petty Cash Fund 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Replenishment
Total 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Note 18: Depreciation and Preoperating

Schedule 2020 2021 2022 2023 2024
Amortization
Depreciation
Production Machinery and
12 - 8,818.66 8,818.66 8,818.66 8,818.66 8,818.66
Equipment
Production Furnitures and
13 - 991.73 991.73 991.73 991.73 991.73
Fixtures
14 - 8,718.30 8,718.30 8,718.30 8,718.30 8,718.30
Equipment
Office Furniture and Fixtures 15 - 566.38 566.38 566.38 566.38 566.38
Store Machinery and
16 - 9,796.85 9,796.85 9,796.85 9,796.85 9,796.85
Equipment
Store Furniture and Fixtures 17 - 3,266.61 3,266.61 3,266.61 3,266.61 3,266.61
Total Depreciation Expense - 32,158.53 32,158.53 32,158.53 32,158.53 32,158.53
Amortization
Leasehold Improvements 18 - 4,843.75 4,843.75 4,843.75 4,843.75 4,843.75
Total Amortization Expense - 4,843.75 4,843.75 4,843.75 4,843.75 4,843.75
Total Amortization and
- 37,002.28 37,002.28 37,002.28 37,002.28 37,002.28
Depreciation Expense
174
PIZZA BOMB GROUP 2
Note 19: Advertisement Preoperatin

Schedule 2020 2021 2022 2023 2024
Expense g
Advertisement Expense 18,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Total 18,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
175
Financial Analysis
PIZZA BOMB
Financial Analysis
2020 2021 2022 2013 2024
Liquidity Ratios
Current Ratio 3.47 9.86 16.27 24.24 33.88

Acid Test Ratio 3.25 9.55 15.97 23.95 33.59
Working Capital 724,810.93 1,888,843.38 3,356,815.60 5,268,404.58 7,684,157.9
8
Solvency Ratios
Debt Ratio 0.22 0.09 0.06 0.04 0.03

Debt-to-Equity Ratio 0.28 0.10 0.06 0.04 0.03
Profitability Ratios
Operating Profit Margin 0.00 0.05 0.11 0.15 0.19

Return on Asset -0.03 0.10 0.15 0.17 0.17
Return on Equity -0.04 0.11 0.16 0.17 0.18
Return on Investment -0.03 0.10 0.15 0.17 0.17
Return on Sales -0.01 0.05 0.10 0.15 0.19
Activity Ratios
Asset Turnover 3.25 2.08 1.48 1.12 0.90

Inventory Turnover 93.99 309.35 338.48 371.13 407.70
Payback Period 1.45
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PIZZA BOMB GROUP 2
VI.
SOCIOECONO
MIC ASPECT
o Description of the Industry
Food is and always has been a necessity of life. It can be concluded that food
will be the highest percentage of consumption in individual’ income. Due to its
always in demand, food is one of the largest industries in the world. Additionally,
Filipinos are food-lover, this is why the situation in this industry is extremely
competitive with regard to price, taste, wide variety of offered flavors and
innovation of product. o Production
Pizza Bomb will be using equipment such as oven and refrigerator that
have an impact on the environment. To minimize the harmful effects, the
business will implement activities such as proper waste disposal, avoiding use of
plastics, water and paper consumption management, and electricity
conservation.
o Employment
The establishment of Pizza bomb will create job opportunities to
individuals and help lessen the unemployment rate in the country. The business
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PIZZA BOMB GROUP 2
will hire the qualified applicants who will contribute in achieving the objectives
and goals of the business. They will receive the proper compensation and
benefits.
o Taxes
Pizza bomb ensures that it will comply and pay the taxes to the
government to contribute in increasing the funds to finance government activities.
The taxes that will be collected by the government will be used for the
infrastructure project, public service, and other government programs. The
payment of taxes will benefit not only the citizens but as well as the economy of
the country.
o Health Matters
Pizza Bomb is not all about generating profit but also it has social
responsibility to the public. Nowadays, consumers start to be health conscious.
The business will not only provide meat but also vegetarian products for
nutritional purposes. The business also assures the compliance with the
standards imposed by the government. As a food industry, Pizza bomb will
initiate to ensure the supply of the ingredients are fresh and in best condition.
Furthermore, since human resources are essential for the business, the
company will provide benefits to the employee’s health and wellness. Pizza
bomb will ensure that employees are not overworked and work – related stress
which can be result of sickness.
178
PIZZA BOMB GROUP 2
VII.
APPENDICES
APPENDIX A DEMAND QUESTIONNAIRE
Institute of Accounts, Business, and Finance
Department of Accountancy
Dear Sir/Madam,
Good day! We, Accountancy students of Far Eastern University – Manila, are
currently conducting a feasibility study as partial fulfillment of the requirement of
the course Management Consultancy. We are trying to gather data that will be
helpful to determine the feasibility of our proposed business, Pizza Bomb - a
round, bite-sized pizza with flavors bursting inside.
In this regard, we respectfully request for your participation and it will only take a
few minutes of your time to accomplish this questionnaire. Rest assured that
your answer will be used for academic purposes only and will be treated with
utmost confidentiality. Thank you for your cooperation.
Proponents of the Business
I. Profile of the Respondent
Name: (optional) ________________________

School: ___________________
Direction: Kindly put a check mark (✓) in the parenthesis that corresponds to
your answer.
Gender: { } Male { } Female
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PIZZA BOMB GROUP 2
Age:
{ } 16 – 19 years old { } 24 – 27 years old
{ } 20 – 23 years old { } 28 -31 years old
Sources of Income:
{ } Allowance / “Baon” { } Savings
{ } Salary { } Others, please specify: _________
{ } Business Income
Weekly spending allowance for food
{ } Php 500 - Php 1,000 { } Php 2001 - Php 2,500
{ } Php 1,001 - Php 1,500 { } Above Php 2,500
{ } Php 1,501 - Php 2,000
II. Survey Questions

Direction: Put a check mark {✓} in the box that corresponds to your answer.
1. Do you eat pizza?
{ } Yes { } No (If no, proceed to Question #7)
2. What qualities do you consider in buying pizza? (You may check more than
one)
{ } Taste/ Flavor { } Appearance of the product/presentation
{ } Wide variety of offered flavors { } Serving size
{ } Affordable price { } Innovation of the product
{ } Nutritional Value { } Others, specify:_________
3. How often do you eat pizza?
{ }1 - 3 times a month { } 7 - 9 times a month
{ } 4 - 6 times a month { } 10 times or more in a month
4. What time of day would you most likely purchase a pizza? (Check all that
apply)
{ } 1:00pm - 3:00 pm { } 5:01 pm - 7:00 pm
{ } 3:01pm - 5:00 pm { } 7:01 pm - 9:00 pm
5. What day would you most frequently purchase a pizza? (Check all that
apply)
{ } Monday { } Thursday
{ } Tuesday { } Friday
{ } Wednesday { } Saturday
6. How long are you willing to wait to get your order?
{ } less than 5 minutes { } 16 to 20 minutes
{ } 5 to 10 minutes { } 20 minutes and above
{ } 11 to 15 minutes
7. Are you willing to try our pizza bomb?
{ } Yes { } No (If no, proceed to Question #11)
8. Which flavor/s are you willing to try? (Select three).
{ } Pepperoni { } Pork and Chicken Barbecue
{ } Vegetarian (Mushroom) { } Breakfast Pizza (Ham, Egg and
Cheese)
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PIZZA BOMB GROUP 2
{ } Three-Cheese
9. How many pizza bombs are you willing to eat in one seating?
{ } 1-3 pizza bomb
{ } 5-6 pizza bomb
{ } 7 or more pizza bomb
10. How much money are you willing to spend on this product?
{ } Php 50-80 { } Php 101-150
{ } Php 81-100 { } Php 151-200 11.
Do you usually eat with a companion/s?
{ } Yes { }No (If no, proceed to Question #13)
12. With whom do you usually go outside to eat?

{ } Family { } Partner { } Schoolmates
{ } Friends { } Workmates
13. What service do you prefer? (You may check more than one).
{ } Dine – in { } Delivery { } Take – out
14. What amenities do you seek in a fast food store? (Please check as many).
{ } Appearance of the shop
{ } Accessibility of the shop
{ } Ambiance of the shop
{ } Complimentary services (internet connection, free use of electric sockets)
{ } Customer involvement in the product (do-it-your-own)
{ } Sanitation of the shop
{ } Spacious area of the shop Others,
specify: ____________
15. What kind of marketing strategies appeal to you most? (Rank the following
from 1 being the lowest and 6 being the highest).
___ Social Media/Internet ___ Print Ads (Newspapers, Magazine,
___ Radio Broadcasting Flyers, Billboard, etc.)
___ Television Commercials ___ Word of Mouth
___ Promotion (Free taste, ___ Others (please specify)
Discounts, Coupons, etc.) ____________
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PIZZA BOMB GROUP 2
Appendix B
SUPPLY SURVEY QUESTIONNAIRE

Institute of Accounts, Business, and Finance
Dear Sir/Madam,
Good day! We, Accountancy students of Far Eastern University – Manila, are
currently conducting feasibility study as partial fulfillment of the requirement of
the course Management Consultancy. We are trying to gather data that will be
helpful to determine the feasibility of our proposed business, Pizza Bomb - a
round, bitesized pizza with flavors bursting inside.
In this regard, we respectfully request for your participation and it will only take a
few minutes of your time to accomplish this questionnaire. Rest assured that
your answer will be used for academic purposes only and will be treated with
utmost confidentiality. Thank you for your cooperation. Proponents of the
Business
Business Name: __________________________________________

Directions: Please put a check mark on the box that corresponds to
your answer.
1. Location of the Business
{ } España { } Morayta
{ } Others, please specify: _______________
2. How long have you been in the business?

{ } 1-2 years { } 5-6 years { } 9 years & above
{ } 3-4 years { } 7-8 years
3. When you started, how many competitors do you have?

{ } None { } 3-4 businesses { } 7 businesses & above
{ } 1-2 businesses { } 5-6 businesses
4. In the succeeding years, how many competitors are added per year?
{ } None { } 3-4 businesses { } 7 businesses & above
{ } 1-2 businesses{ } 5-6 businesses
5. How many hours do you operate in a day?

{ } 8-10 hours { } 14-16 hours { } 20-24 hours
{ } 11-13 hours { } 17-19 hours
6. How many days do you operate in a week?

{ } 1-3 days { } 4-6 days { } 7 days
182
PIZZA BOMB GROUP 2
(everyday)
7. On what days do you have the most number of customers?

{ } Monday { } Thursday { } Sunday
8. On what days do you have the least number of customers?

{ } Monday { } Thursday { } Sunday
9. On what time of the day do you have the most number of customers?
{ } Dawn { } Afternoon { } Midnight
{ } Morning { } Evening
10. On what time of the day do you have the least number of customers?
{ } Dawn { } Afternoon { } Midnight
{ } Morning { } Evening
11. Who is your target market/s? (Check as many as possible)

{ } Students { } Families
{ } Professionals { } Others, please specify:
__________________
12. On average, how many units of your product do you sell per day?
{ } 0-50 pieces { } 101-150 pieces { } 200 pieces and above
{ } 51-100 pieces { } 151-200 pieces
Appendix C: Supporting Computations
Computation of Projected Student Population of Far Eastern University-Manila for

2020-2024
Year Y A Yi-1 Yc
2015 24,611
2016 21,235 -1,482 24,611 20,165
2017 18,806 -1,482 23,129 18,683
2018 19,273 -1,482 21,647 17,201
2019 18683 -1,482 20,165 15,719
2020 -1,482 15,719 14,237

183
PIZZA BOMB GROUP 2
2021 -1,482 14,237 12,755
2022 -1,482 12,755 11,273
2023 -1,482 11,273 9791
2024 -1,482 9,791 8,309
*Yc = a + Yi – 1
𝑌𝑐 = initial value
𝑌𝑛−𝑌𝑐
(2015) n = number of A=
years
𝑛−
𝑌𝑛 = projected student 1
population (2020)
A=
𝑌𝑖 = value for the previous year
A= -1,482
Computation of Projected Student Population of Far Eastern University- Manila for

2020-2024
Projected Population
Year Population 2020 2021 2022 2023 2024

2013 26,866
2014 25,652 17,201
2015 24,611
2016 21,235 25,710 25,324 25,196 25,153
2017 18,806
2018 19,273
184
PIZZA BOMB GROUP 2
Computation of Projected Student Population of

FEU-Institute of Technology for
2020-2024
Year Y A Yi-1 Yc
2015 9,081
2016 10,715 -444.5 9,081 7,747.5
2017 6,439 -444.5 8,636.5 7,303
2018 6,411 -444.5 8,192 6,858.5
2019 7,303 -444.5 7,747.5 6,414
ss
2020 -444.5 6,414 5,969.5
2021 -444.5 5,969.5 5,525
2022 -444.5 5,525 5,080.5
2023 -444.5 5,080.5 4,636
2024 -444.5 4,636 4,191.5
*Yc = a+ Yi – 1
𝑌𝑐 = initial value (2015)
n = number of years A=𝑌𝑛 −𝑌𝑐v
𝑌𝑛 = projected student 𝑛−1
population (2020)
𝑌𝑖 = value for the previous year A=
A= -444.5
Computation of Projected Student Population of FEU-Institute of Technology for

2020-2024
Year Population
2020 2021 2022 2023 2024
2013 6,551
2014 7,939 6,859
2015 9,081
2016 10,715 7,857 8,292 8,437 8,486
2017 6,439
2018 6,411
185
PIZZA BOMB GROUP 2
Philippine School of Business

Administration – Manila for 2020-2024
Year Y A Yi-1 Yc
2015 1,365
2016 1,371 -47.5 1,365 1,222.5
2017 1,377 -47.5 1,317.5 1,175
2018 1,327 -47.5 1,270 1,227.5
2019 1,175 -47.5 1,222.5 1,180
2020 -47.5 1,180 1,132.5

2021 -47.5 1,132.5 1,189
2022 -47.5 1,189 1,141.5
2023 -47.5 1,141.5 1,194
2024 -47.5 1,194 1,146.5
𝑌𝑐 = initial value *Yc = a + Yi – 1

(2015) n = number of
𝑌𝑛−𝑌𝑐
years
A=
population (2020)
𝑌𝑖 = value for the previous year 1,175−1,365
A= 5−1
A= -47.5
Computation of Projected Student Population of Philippine School of Business

Administration – Manila for 2020-2024
Year Population
2020 2021 2022 2023 2024
2013 1,577
2014 1,508 1,228
1,483 1,452 1,442 1,438
2015 1,365
186
PIZZA BOMB GROUP 2

2016 1,371
2017 1,377
2018 1,327
University of the East – Manila for

2020-2024
Year Y A Yi-1 Yc
2015 17,071
2016 13,732 -1,633.75 17,071 12,169.75
2017 12,376 -1,633.75 15,437.25 10,536
2018 11,020 -1,633.75 13,803.5 8,902.5
2019 10,536 -1,633.75 12,169.75 7,268.75
2020 -1,633.75 7,268.75 5,635

2021 -1,633.75 5,635 4,001.25
2022 -1,633.75 4001.25 2367.5
2023 -1,633.75 2367.5 733.75
2024 -1,633.75 733.75 -900
𝑌𝑐 = initial value (2015) *Yc = a + Yi – 1 n =

number of years 𝑌𝑛−𝑌𝑐 𝑌𝑛 = projected student
A= 𝑛−1
population (2020) 𝑌𝑖 = value for the previous year
10,536−17,071
A=
5−1
A= -1,633.75
Computation of Projected Student Population of University of the East – Manila for

2020-2024
Year Population
2020 2021 2022 2023 2024
2013 17,800
2014 16,444 8,903
17,105 16,873 16,796 16,770
2015 17,071
187
PIZZA BOMB GROUP 2

2016 13,732
2017 12,376
2018 11,020
University of Santo Tomas for

2020-2024
Year Y A Yi-1 Yc
2015 44,748
2016 41,614 -3,388.75 44,748 34,581.75
2017 38,711 -3,388.75 41,359.25 31,193
2018 37,812 -3,388.75 37,970.5 27,804.25
2019 31,193 -3,388.75 34,581.75 24,415.5
2020 -3,388.75 24,415.5 21,026.75

2021 -3,388.75 21,026.75 17,638
2022 -3,388.75 17,638 14,249.25
2023 -3,388.75 14,249.25 10,860.5
2024 -3,388.75 10,860.5 7,471.5
𝑌𝑐 = initial value *Yc = a + Yi – 1

(2015) n = number of
𝑌𝑛−𝑌𝑐
years
A=
population (2020) 𝑌𝑖 = value for the previous year
31,193−44,748
A=
5−1
A= -3,388.75
Computation of Projected Student Population of University of Santo Tomas for

2020-2024
Year Population Projected Population
188
PIZZA BOMB GROUP 2

2020 2021 2022 2023 2024
2013 42,271
2014 43,795 27,804
2015 44,748
2016 41,614 43,605 44,049 44,197 44,247
2017 38,711
2018 37,812
189
PIZZA BOMB GROUP 2
Payroll Computation
190
PIZZA BOMB GROUP 2
Appendix D: Business Forms

DTI Business Name Registration Sole Proprietorship Application Form
191
PIZZA BOMB GROUP 2
192
PIZZA BOMB GROUP 2
193
PIZZA BOMB GROUP 2
Mayor’s Permit
194
PIZZA BOMB GROUP 2
195
PIZZA BOMB GROUP 2
BIR Form 1901 – Application for Registation
196
PIZZA BOMB GROUP 2
197
PIZZA BOMB GROUP 2
198
PIZZA BOMB GROUP 2
199
PIZZA BOMB GROUP 2
BIR Form 0605 – Payment Form
200
PIZZA BOMB GROUP 2
BIR Form 1906 – Application for Authority to Print Receipts and Invoices
201
PIZZA BOMB GROUP 2
202
PIZZA BOMB GROUP 2
Food and Drug Administration
203
PIZZA BOMB GROUP 2
204
PIZZA BOMB GROUP 2
205
PIZZA BOMB GROUP 2
SSS Employer Registration
206
PIZZA BOMB GROUP 2
SSS Employment Report

207
PIZZA BOMB GROUP 2
Phil Health Employer Data Record
208
PIZZA BOMB GROUP 2
209
PIZZA BOMB GROUP 2
PhilHealth Member Registration Form
210
PIZZA BOMB GROUP 2
211
PIZZA BOMB GROUP 2
PAG-IBIG Employer’s Data Form
212
PIZZA BOMB GROUP 2
213
PIZZA BOMB GROUP 2
CURRICULUM
VITAE
214
CACEY JEAN F. BAUI
• Blk.13 Lot 15 Villa Luisa North, Bagumbong, Caloocan City
• +63 995 259 3583
• [email protected]
EDUCATIONAL BACKGROUND
Present Far Eastern University

Nicanor Reyes Street, Sampaloc, Manila
2018 Far Eastern University

Bachelor of Science in Business Administration - Major in Internal Auditing
2014 Bagumbong High School

Rainbow Village, Bagumbong, Caloocan City
AWARDS AND ACHIEVEMENTS
• Academic Scholar
2014 – 2015
215
PIZZA BOMB GROUP 2
ALYANNA L. CRUZ
• 169-A Gov. Pascual St., Sipac Navotas City
• +63 905 117 3812
• [email protected]


Bachelor of Science in Business Administration major in Internal Auditing
2014 St. James Academy

Rizal Ave Ext, Malabon
2014 – 2015
• Civil Service Exam Pass
216

2014
Good Shepherd Academy
Poblacion II, Victoria, Oriental Mindoro
2010
San Narciso Elementary School
San Narciso, Victoria, Oriental Mindoro

• Civil Service Exam Passer
217
PIZZA BOMB GROUP 2
Presen Far Eastern University
t Nicanor Reyes Street, Sampaloc, Manila

2018 Nicanor Reyes Street, Sampaloc, Manila
Manila High School

2014
Intramuros, Manila
Mandili II Elementary School

2010
Candaba, Pampanga

2014 – 2015
218
PIZZA BOMB GROUP 2


2014 St Joseph School of Lawang Bato

Lawang bato, Valenzuela City
219
PIZZA BOMB GROUP 2

2014 Escuela De San Dionisio

San Dionision, Parañaque City
Don Galo Elementary School

2010
Don Galo, Parañaque City
220
PIZZA BOMB GROUP 2
1st term, AY 2015-2016


2014 Notre Dame of Greater Manila

East Grace Park, Caloocan, 1403 Metro Manila, Philippines
• Entrance Scholarship - FEU CAT

Far Eastern University - Manila
221
PIZZA BOMB GROUP 2
2014-2015 (1st term)
• Loyalty Awardee
Notre Dame of Greater Manila
2014
222


2013 Holy Cross College

Santa Ana, Pampanga
2009 Sta. Ana Central School Santa Ana,

Pampanga PIZZA BOMB GROUP 2


2014 Parañaque National High School – Baclaran

Baclaran Parañaque City
223
• Champion
DOTA 2 JPIALYMPICS – IABF
Olivarez College 2017
• 1st Runner Up
DOTA 2 JPIALYMPICS – IABF
Marikina Sports Center 2018
TRAININGS AND SEMINARS ATTENDED
Student Apprenticeship Program

Far Eastern University – Manila
2017
Know the Impact, Importance of Action

2014
Bloomberg Orientation
2017
224

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Far Eastern University

Nicanor Reyes St. Sampaloc, Manila

In Partial Fulfillment of the

Baui, Cacey Jean F.

Faustino, Lovely Queenie J. Lorete, Joshua Blaw G. Mongcal, Fe Diana A.

RODOLFO M. LEDESMA, CPA, MBA

Approved by THE PANEL OF EXAMINERS on Oral Examination on December 11,

Accepted in partial fulfillment of the requirements for the degree Bachelor of

EARL JOSEPH BORGOÑA, CPA, MBA, CFMP, LLB

the following people:

by guiding us in enhancing the content of the study.

contributions, by taking time and effort in answering the demand survey

inputs to the supply survey questionnaire which provided valuable information.

throughout the study.

To the proponents’ families for always encouraging and providing

continuous financial and moral support.

and for endless blessings bestowed upon us.

• Background of the Study ........................................................................ 2

• Business Name/Logo ............................................................................. 3

• Brief Description of the Product .............................................................. 3

• Form of Business Organization .............................................................. 4

• Business Location .................................................................................. 4

• Statement of the Problem ....................................................................... 5

• Investment Cost ..................................................................................... 7

• Mode of Financing .................................................................................. 7

II. Marketing Aspect

• Market Description ................................................................................. 9

• Target Market ....................................................................................... 11

• Sampling Area ...................................................................................... 12

• Sampling Size ...................................................................................... 12

• Sampling Method ................................................................................. 14

• Survey Results ..................................................................................... 15

• Demand Analysis ................................................................................. 47

• Supply Analysis .................................................................................... 53

• Demand Gap ........................................................................................ 58

• SWOT Analysis .................................................................................... 62

• Product Pricing ..................................................................................... 63

III. Management Aspect

• Form of Business Organization ............................................................ 67

• Legal Requirements and Steps to Register the Business .................... 67

• Project Time Table (Gantt Chart) ………….………………………….......76

• Organizational Chart ............................................................................ 77

• Manpower Requirements ..................................................................... 77

• Organizational Policies ......................................................................... 86

• Internal Control ................................................................................... 105

IV. Technical and Production Aspect

• Purchase Process .............................................................................. 109

• Pre-production Process ...................................................................... 111

• Production Process ............................................................................ 112

• Selling Process/Flowchart Description ............................................... 113

• Store and Office Schedule ................................................................. 116

• Production Capacity Table Description ....................................... 117-118

• Business Location .............................................................................. 119

• Façade of the Building ........................................................................ 119

• Vicinity Map ........................................................................................ 119

• Floor Plan of the Business ................................................................. 120

• Property, Plant and Equipment .......................................................... 123

• Product Cost ...................................................................................... 141

• Direct Materials Requirement ............................................................. 141

• Direct Labor Cost ............................................................................... 144