FRUIT COOKIES

Presented by:

ADELINE E. ESPENOCILLA

EDEN O. DIALOGO

1
 TABLE OF
CONTENTS

CONTENT PAGE
Cover Page i

Table of Contents ii

Executive Summary 1
Vision, Mission, Objectives
Brief Description of the Business 2

MARKET PLAN 3

Business Model and Value Proposition 8

Figure 1 Value Proposition Canvas
Product/Service: The Uses and Users 11

Market Size and Potential 12

Table 2 Historical, Present and Projected Number 13

Competitors Analysis
14
Competitive Advantage 17

Marketing and Communication 19

Channel of Distribution 20
SWOT ANALYSIS 21

TECHNICAL PLAN 22

Operations Plan 23

Production Process 26

Production Volume and Schedule

2
 28
Raw Materials Requirements and Resources 29
Machineries, Tools and Utensils 30
Unit Production Cost 33

THE ORGANIZATIONAL PLAN 34

Forms of Business Organization 35

Business Vision, Mission and Goals 35

Internal Organization Structure 37

Personnel or Workforce 37

Manpower Compensation Scheme 29

3
EXECUTIVE SUMMARY

4
EXECUTIVE SUMMARY

Project Title : Fruit Cookies

Business Name : FC COMPANY

Proponent : Adeline E. Espenocilla

Eden O.Dialogo

Location : Rizal St. Brgy Pinontingan, Gubat,

Sorsogon

Form of Business Operation : Partnership

Nature of Business : Food Manufacturing

VISION

To be a leading brand of Fruit Cookies here in the Municipality of Gubat Sorsogon.

MISSION

Provide high quality Fruit Cookies innovations and assure the satisfaction of our

Sorsogon consumers.

OBJECTIVES

5
 ⮚ To serve quality product that should satisfy the customer needs

⮚ Promote brand identity through engaging with franchise

⮚ To promote and introduce Fruit Cookies in the locality of Gubat

⮚ To help local farmers by supplying the raw materials of brands

⮚ Continues innovation and research new ideas

⮚ Maintain good relationship with customers, consumers, stakeholders and

suppliers

BRIEF DESCRIPTION OF THE BUSINESS

The proposed product is Fruit Cookies that are good for the health of anyone

because fruit cookies contain apples, carrots, and bananas. We also add mango and pili

nut toppings on it. The fruits that we add can help our body for regulation of tissues

organs. Apple contains vitamin C and various antioxidants. Mango is a low-calorie, great

source of vitamin A and C. Banana is rich in Potassium low in sodium which is an

important component of a heart healthy diet. Mango, Apple and Banana is high in fiber

which is good for our blood circulation. Carrot is rich in antioxidants, and it contains

Vitamin A and beta-carotene. Pili is rich in nutrients like proteins and minerals to support

your bones.

6
 The main target customer of Fruit Cookies are the six households selected in the

barangay of municipality of Gubat, Sorsogon these are the Pinontingan, Balud Del

Norte, Balud Del Sur, Luna Candol, Manook, Panganiban, Paradijon and Cota na Daco.

To quantify the demand for the proposed product the available data of household

population of Gubat, Sorsogon from the year 2021 to 2022. From the year 2021 the

population is about 3,153 and 3,229 from this present year. The business will be

introduced to the market through the use of social media platforms like facebook page

because it is the best way to market the product. The word of mouth promotional will be

used also to convince people to buy the product.

The working schedule to be conducted is six hours a day and twenty four days a month.

Working hours will start 10:00 am - 12:00 am and will resume at 1:00 pm - 3:00 pm. The

working days will be Monday to Saturday and Sunday is a free day for work. The

proponent will serve as the manager and will hire two employees that will be needed in

the operation of the business.

The form of business organization of Fruit Cookies will be a partnership that will be

managed by two people. The business will operate together with the owner and the one

worker in the production. It is easy to organize and establish if the owner has the freedom

in decision making.

The final product is sweet, soft, aromatic (with fruit aroma), brown color and crunchy

because of the pili nut toppings on it. It takes 3 hours maximum of 100 pcs per batch, in

one day the total of 200 pcs of production per day.

7
 The FC COMPANY provides healthy and a good quality product for our customers.

The business proposal is composed of two founders; Eden O. Dialogo and Adeline E.

Espenocilla. Each member has a specific job in which they bring a different level of

experience and skill. Eden O. Dialogo is a TVL student majoring in Home Economics

and is in baking. She has experience in making pastries when she was in senior high

school. Adeline E. Espenocilla is a General Academic Strand student, she has skill in

terms of drawing. She is in charge of design of packaging, labeling and logos in the

product.

MARKET PLAN

8
 Table 1

BUSINESS MODEL CANVAS

Key Key Activities Value Proposition Customer Customer

Partners Relationship Segments

-Baking -Baking product -Healthy food Trust -Small business

Items
-Pricing and selling -Suites for all age -Service -Household
supplier
product people
-Loyalty -Employees
-Local
-Promote eating -Unique ingredients
farmers -Approachable
healthy foods
-Affordable prices
-Create the product Owner
that will help the -Healthy Cookies
-Kindness
community with a lot of
nutritional benefits
-Cookies fruits
flavor

Key Resources Channels

-Good Quality -Social media

Ingredients platforms

- quality tools and -Word of mouth

machinery

9
 - sustainable -Physical Store
budget
-Fb-page
-Leadership skills,
talented workers
and staff

Cost Structure Revenue Streams

-Advertisement -Free taste

-Labor - freshly made and customs made to order

-Production

-Raw Materials

-Rent

-Farmers

-Municipal Permit

- License

Figure 1

Value Proposition Canvas

FRUIT COOKIES

Value Proposition Customer Profile

10
 Gain Creators
Gains
Serve good quality
Nutritional benefits
Good quality Good innovation Build a unique design
A good packaging Unique ingredients Good service to
and services the customer
Pains
Product & Service Creative design and Quality and quantity
good packaging
Freshly made Cookies
Good interaction to the
customer Expected taste

Pain Relievers Customer Job Service

Trust and loyalty Customer satisfaction
of customer
Delicious taste
Maintain cleanliness
in the area
Affordable price to the
customer

THE PRODUCT: ITS USES AND USERS

The proposed product is named Fruit Cookies. A cookie combination of fruits and

vegetables that serve as a flavoring. The goal of the proposed product is to give nutritious

snacks for the family which is healthy and good for their health. The ingredients of this

product are apple, banana, carrot and we add mango and pili nut toppings on it.

The Fruit Cookies will be sold at a net weight of 4.5 g per pc. The product is

composed of mango, banana, pili nut and other fruits. Brown Sugar, Egg Condensed milk

and other ingredients. This product can be served as snacks, breakfast, and midnight

snacks. The proposed product will be more likely recognized in and out of Gubat.

MARKET SIZE AND POTENTIAL

11
 The main target customers of Fruit Cookies are the eight (8) households selected in
the barangay of municipality of Gubat, Sorsogon. To quantify the demand for the
proposed product the available data of household population of Gubat, Sorsogon from the
year 2021 to 2022. From the year 2021 the population is about 3,153 and 3,229 from this
present year. There will be a 2.4 % percent growth rate annually.

Table 2

Historical, Present and Projected Numbers of Household in

the Municipality of Gubat, Sorsogon

Historical Present Projected

Barangay
2020 2021 2022 2023 2024 2025 2026

Pinontingan 287 294 301 308 315 323 331

Balud Del 456 464 475 486 498 510 522

Norte

Balud Del Sur 271 277 284 291 298 305 312

Luna Candol 549 562 575 589 603 617 632

Manook 319 327 335 343 351 359 368

Panganiban 513 526 539 552 565 579 593

Paradijon 300 302 309 316 324 332 340

Cota na Daco 391 401 411 441 452

Total 3,086 3,153 3,229 3,306 3,385 3,466 3,550

Source: PHILIPPINE STATISTICS AUTHORITY (REGION V)

MUNICIPAL PLANNING DEVELOPMENT (MPDO)

Table 3

12
 Present and Projected Target Market for Fruit Cookies

Year Prospective Percentage of Target Market

Number of the Willingness
Household to Buy

2022 3,229 84% 2,712

2023 3,306 84% 2,777

2024 3,385 84% 2,843

2025 3,466 84% 2, 911

2026 3,550 84% 2, 982

Table 4 shows the number of times does customers consumed fruit cookies per day,
number of individual who are willing to buy the product per day, and the total consumed
product per day

TABLE 4

NUMBER OF WILLINGNESS TO BUY PER CAPITAL CONSUMPTION

No. of times does No. of Individual who are Total Consumed product
Customer Consumed Willing to Buy per Day
Cookies per Day

Once 200 200

Twice 70 140

Thrice 30 90

Total 300 430

The total and consumption of fruit cookies in Municipality of Gubat was 203,728 for the
monthly and for the yearly reached at 2,444,736 respectively.

TABLE 1

VOLUME OF SUPPLY OF COMPETING ESTABLISHMENT

13
 Daily Weekly Monthly Annual
Competitors Product Line
Supply Supply Supply Supply

Manda’s Bakery Bread and 3,000 21,000 84,000 1,008,000

Pastry

Special toasted
3N Bakery 2,576 18, 032 72, 128 865,536
siopao

Lolo Aday Bread and

1,650 11, 550 46,200 554, 400
House Bakery pastry

Fattys Cookies,
50 350 1,400 16,800
Cupcakes

Total 7, 276 50, 932 203, 728 2,444, 736

Table 2 shows the projected supply of competing products that increase by 5% annually.

Table 2

Projected Supply of Competing Products

5% increase annually (assumption)

Year Total Supply

2022 2,444, 736

2023 2,566, 973

2024 2,695,322

2025 2,830,088

2026 2,971,592

The market share was derived by dividing the production volume and total supply by
100%. The market share shows the contribution of proposed projects in the existing
market.

Table 3
14
 Market Share

Year Total Supply Production Market Share

Volume

2022 2,444, 736 57,600 2.4 %

2023 2,566, 973 86,400 3.4%

2024 2,695,322 129,600 4.8%

2025 2,830,089 194,400 6.9%

2026 2,971,593 291,456 9.8%

The projected volume determines the sales of a business in terms of volume over a future
period and fruit cookies will have 2% anticipated spoilage.

Table 4

Project Sales Volume

Year Projected Volume Allowance for Projected Sales

Spoilage Volume

2%

2022 57,600 1,152 56,448

2023 86,400 1,728 84,672

2024 129,600 2,592 127,008

2025 194,400 3,888 190,5112

2026 291,456 5,829 285,627

Figure 2: Business Logo

15
Figure 3: Product Logo

Figure 4: Product Label

16
As a starting business it is difficult to introduce new products in the market. The

proposed product will use kinds of promotional strategies that will also exert a large

amount of effort for the customer to be aware of the new product. Table 5 shows the

advertisement costs.

Table 5

Expenses for Promotional Activity

Medium Plan Cost

Promotional Material Posters 500 pesos

Social Media Facebook 1000 pesos

Total 1,500pesos

Figure 5 shows the channel of distribution the producer has the preference to directly sell
the product to the end users.

Figure 5

Channel Distribution

PRODUCER

END USERS 17
 TABLE 6

SWOT ANALYSIS

STRENGTHS WEAKNESSES

-Nutritional Product -Seasonality Business

-Affordable Price -Lack of Financial Resources

-Healthy product in the market that will -Competitors in the market

try of our customers

-Contains of Healthy nutrients

OPPORTUNITIES THREATS

-Contributes in the community -Local Complaint Cost

-Local brand -Market Competitors

-Help Local Farmers -Changing customer needs

-It will serve as snack

18
 TECHNICAL PLAN

Production Process

19
 The product is Fruit Cookies which are made of fruits which are mango, carrots,

and apples. Buying of raw materials and ingredients, preparation of tools and buying

equipment. Mix the 1/4 brown sugar with 250 g butter, 2 tsp vanilla and 2 add egg. Mix 2

kl All Purpose Flour,1 cup grated carrot, 2 pcs apple, 2 pcs mango, 2 pcs of bananas and

1 cup Pili Nut, 2tsp baking powder, 2tsp baking soda, 1 cup condensed milk and 2tsp oil

then mix it. Add the mixed sugar and mix flour together. Make a cookie dough from a

small circle. Put it in the tray. Put in the oven for 18 minutes. Wait until it is baked.

Display the final product. The final product which is Fruit Cookies with soft and crunchy

flavor pili nut and mango toppings. It takes 3 hours maximum 100 pcs per batch, 2

batches the total of 200 pcs of production per day.

Figure 6

Actual Product

Figure 6

20
THE PRODUCT: PLAN BASED COOKIES

21
Production Volume and Schedule

The Production:

The working schedule to be conducted is six hours a day and twenty four days a month.

Working hours will start at 9:00 am – 11:00 am and will resume at 1:00 pm - 3:00 pm.

The working days will be Monday to Saturday and Sunday is a free day for work.

The final product is sweet, soft, aromatic (with fruit aroma), brown color and crunchy

because of the pili nut toppings on it. It takes 3 hours maximum of 100 pcs per batch, in

one day the total of 200 pcs of production per day.

22
RESPONSIBLE ACTORS/STAFF

Name of job/tasks Description Name of personnel

Buyer of materials and Responsible for buying the Adeline Espenocilla
ingredients needed ingredients
Preparation of tools, The one who prepares the Eden Dialogo
equipment and ingredients needed materials,
measuring the wet/dry
ingredients for making the
product
Mixing of all the The one who made the Rotating assignment of
ingredients needed product task
Put the finish product in Responsible for preparing Eden Dialogo
the tray the product before baking
Put in the oven for 30 The one who responsible Rotating assignment of
minutes for cooking in the product task
Timer/ setting alarm The one who sets alarm Adeline Espenocilla
when to remove the
cookies in the oven
Dishwasher/ dishwashing Responsible for washing Adeline Espenocilla
the dishes and equipment
that is needed
Displaying of final Placing the finish the Eden Dialogo
product product inside the display
area
Cashier The one who keeps/ Eden Dialogo
collects the money needed.
the one who receive the
cash paid by the customers
Cleaning the workplace Responsible for cleaning Rotating assignment of
area the area, dispose the task
garbage, keep the materials

23
OUTPUTS AND PERFORMANCE INDICATORS

*Fruit cookies are baked with a flat sweet texture with pili nut and mango toppings, in

storing our product we make sure that put it in a dry place.

* The size, texture, taste and smell of our product can satisfy your cookie craving.

POTENTIAL PROBLEMS AND PREVENTIVE MEASURE

Lack of interest Make an alternative way/ put some

uniqueness to your product, so that your
customers will have an interest in buying
it.
Rapidly spoilage Proper storage of the product
Extreme weather condition Look for alternative areas to continue our
operation, securing the supply for our
product.

OUTPUTS AND PERFORMANCE INDICATORS

Performance Indicators Outputs

Taste 50% sweet

Smell 100% aromatic (with fruit aroma)

Texture 50 % Crunchy, 50 % Soft

Color 100% brown color

Number of Pieces 200 pcs per day

24
PRODUCT/SERVICE DELIVERY

The strategy of proponents in selling the product is first through welcoming the

customers. Before introducing our product we first introduce ourselves if they are

comfortable then we can give them the menu so that they choose what pastry and drink

they want. Once the customer chooses a product they will thank them and continue to

entertain them while for the product to be served the customer payment will be given to

the cashier by the waiter to assist the customers right after giving to them the receipt.

QUALITY CONTROL

How will you ensure quality control in your operations/production process?

*Using PPE in making the product such as gloves, hairnet, apron etc.

*Before starting it is important the sanitation such as washing hands and as well as the

materials and equipment to be used.

*Having the availability of carrots in the market so that we would not encounter

problems in making our product.

* Properly storing the left ingredients, materials and equipment are washed before storing

it

* The procedure should not change so that the quality of the product does not change

also.

25
Table 6 shows the target production volume of the product that increases 50% annually in

production.

TABLE 6

Target Production Volume of the Product

50% increase annually in production

Year Production Production Production Production

Volume/ Day Volume/ Week Volume/Month Volume/ Year

2022 200 1,200 4,800 57,600

2023 300 1,800 7,200 86,400

2024 450 2,700 10,800 129,600

2025 675 4,050 16,200 194,400

2026 1,012 6,072 24,288 291,456

26
Table 7 shows the volume and total cost of raw materials per day, per week, per month
and per year.

TABLE 7

RAW MATERIALS AND REQUIREMENTS

Source: Gubat Public Market

27
Table 8 shows the packaging materials and product is packed in a transparent box
containing ten (10) pieces at two hundred pesos per box together with ribbon and product
sticker.

TABLE 8
Packaging Materials Requirement

Description Unit/ Cost Cost/ Day Cost/ Week Cost/Month Cost/ Year

Box 20 pcs /6.00 120.00 720.00 2,280.00 27,360.00

Ribbon 10 yard/ 100.00 600.00 2,400.00 28,800.00

10.00

Product 20 pcs/5.00 100.00 600.00 2,400.00 28,800.00

Sticker

Total 320.00 1,920.00 7,080.00 84,960.00

Jeaness Supermarket, Dianna Store

Table 9 shows the list of tools and utensils needed as well as its unit cost and total cost.

TABLE 9

LIST OF TOOLS AND UTENSILS AND PRODUCTION SUPPLY

ITEMS QUANTITY UNIT COST TOTAL COST

Spatula 1 pc 105.00 105.00

Baking Tray 2 pcs 95.00 190.00

Oven Gloves 2 pcs 140.00 280.00

Bowl 2 pcs 45.00 90.00

Measuring Cup 1 set 50.00 50.00

(Dry Ingredients)

Plate 3 pcs 43.00 129.00

28
 Apron 2 pcs 130.00 260.00

Hairnet 2 pcs 20.00 40.00

Wire Whisk 2 pcs 110.00 220.00

Wax Paper 5 pcs 5.00 25.00

Sifter/Strainer 1 pc 99.00 99.00

Rubber Scraper 2 pcs 48.00 96.00

Tongs 2 pcs 25.00 50.00

Hand Towel 2 pcs 25. 00 50.00

Total 1,704.00

Source: CAI Trading, Dianna Store, LCC, Shopee

Table 10 shows the equipment and machinery needed as well as its quantity, unit cost,
life span and depreciation.

TABLE 10

EQUIPMENT AND MACHINES

ITEMS QUANTITY TOTAL LIFE SPAN DEPRECIATION

COST

Convection 1 4,599.00 5 years 919.80

Oven

Weighing Scale 1 196.00 5 years 39.20

Fire 1 1,300
Extinguisher

Total 6,095.00 950

Source: Shopee

Table 11 shows the furniture and fixtures needed for the business as well as its quantity,
unit cost, total cost, estimated life span and depreciation.
29
 TABLE 11

FURNITURE AND FIXTURES

ITEMS QUANTITY UNIT TOTAL ESTIMATE DEPRECIATION

COST COST D LIFE

Tables 2 pcs 3,000.00 6,000.00 4 years 1,500.00

Stand 1 pc 1,000.00 1,000.00 3 years 333.33

Fan

Mono 3 pcs 200.00 600.00 2 years 300.00

black
Chair

Total 4,200.00 13,000.00 2,133.33

Source: Cai Trading, Kier Enterprise

Figure 7. Packaging

Table 12 shows the needed housekeeping supplies as well as its quantity and total cost.

Table 12

HOUSEKEEPING SUPPLIES

30
 Particulars Quantity Unit Cost Total Cost

Garbage Bag 4 packs 70.00 280.00

Soft Broom 1 pc 120.00 120.00

Trash Bin 2 pcs 100.00 200.00

Rug Mat 2 pcs 30.00 60.00

Dust Pan 1 pc 50.00 50.00

Total 370.00 710.00

Source: Cai Trading, Kier Enterprises

Table 13 shows the utility requirements needed and its estimated consumption cost.

TABLE 13

UTILITIES REQUIREMENT

Utility Consumptions

Monthly Annual Cost

Fuel (LPG) 1,300.00 15,600.00

Electricity 276.37 3,316.44.00

Water 500.00 6,000.00

Total 2,076.37 24,916.44.00

Table 14 shows manpower the requirements and its estimated consumption cost.

TABLE 14

MANPOWER REQUIREMENT

31
 No. of Salary
Employee

Daily Monthly Yearly

Production 1 350.00 8.400.00 100,800.00

Manager

Baker 1 325.00 1,950.00 23,400

Helper 1 310.00 1,860.00 22,320

Total 3 985.00 12,210.00 146,520

Fruit Cookies

Unit Production Cost

(One Month Operation)

Direct Materials 17,039.00

Direct Labor 15,240.00

Packaging Materials 7,080.00

Add. Operating Expense PHP 39,359.00

Administrative Salary 8,400.00

Promotional Expense 1,500.00

Fringe Benefits 4,804.00

Transportation Expense 480.00

Rent Expense 5,000.00

Utility Expense 2,076.37 PHP 22,260.37

Total Production Cost PHP 61,619.37

32
Divide: Production Volume per Month 4,800 pcs

Unit Production Cost PHP 12.84

Add. Mark up (55%) 7.062

Unit Selling Price PHP 19.90 or 20

33
 THE ORGANIZATIONAL PLAN

Form of Business Organization

34
 A Partnership will be established for the intended business. The owner of the firm

who will manage it should have knowledge and skills in running a business with the help

of one employee. The manager will provide all the orders directly to the personnel in

order to ensure the operation’s success. It is the most basic type of ownership, in which

the two owners will manage the company. The owner bears responsibility and profit. The

manager has the authority to make decisions.

INTERNAL ORGANIZATIONAL STRUCTURE

FIGURE 8

ORGANIZATIONAL CHART

PERSONNEL OR WORKPLACE
35
Production Manager

The duties and responsibility of a baker are as follow:

● The one who is responsible for the production process, activities, operations and

schedule to ensure stock levels remain adequate.

● Qualifications:

● Male and Female

● 20 years old and above

● Resourceful and hardworking

● Physically and mentally fit

● Have a desire to produce consistent and delicious products

● Can handle pressure

Baker

The duties and responsibility of a baker are as follow:

● Determine the right amounts and types of ingredients required for making

cookies.

36
 ● Obtain ingredients, and following recipes in order to combine and mix them.

● Ensure that the right quantities of ingredients

● Observe cookies as they are being cooked in order to ensure that they don’t burn,

or remain raw.

● Ensure that all ingredients and supplies required for baking cookies are available

at all times.

Job Qualification

● Male and Female

● 20 years old and above

● Physically and mentally fit

● Have a desire to produce consistent and delicious products

● Be able to follow recipes and have good math skills

● Have a positive and service oriented attitude

● Be neat, organized and have attention to detail

37
 Table 15

Compensation Scheme (Administrative)

Position Required Regular Salary

Administrative Daily Monthly Yearly
Manager 1 350.00 8,400.00 100,800
Total 1 350.00 8,400.00 100,800

Table 16

Compensation scheme

Personnel Numbers of Daily rate Weekly rate Monthly rate

workers
Baker 1 325.00 1,950.00 7,800
Assistant Baker 1 310.00 1,860.00 7,440
Total 2 635.00 3,810.00 15,240

Table 17
Fringe Benefits

Positio No. SSS Phil. Pag- Monthly SSS Phil. Pag- Yearly
n Health ibig total Health ibig Total
Manage 1 1,115. 252.00 336.00 1,703.00 13,380.0 3,024.00 4,032.0 20,436
r 00 0 0 .00
Baker 1 1,050. 234.00 312.00 1,596.00 12,600.0 2,808.00 3,744.0 19,152
00 0 0 .00
Helper 1 985.0 223.00 297.00 1,505.00 11,820.0 2,678.00 3,564.0 18,062
0 0 0
Total 3 3,150. 709.00 945.00 4,804.00 37,800.0 8,510.00 11,340. 57,650
00 0 00 .00

Table 18 shows the needed office furniture and fixtures as well as its total cost, and
depreciation

38
 Table 18

Office furniture and fixtures

Items Quality Unit cost Total cost Estimated Depreciation

life
Fluorescent 2pcs 100.00 200.00 3 years 33.33
bulb
Dish cabinet 1pc 800.00 800.00 5years 160.00

Total 9 pcs 1,000.00 193.33

Source: Shopee, Kier Enterprises

Table 19 shows the office supplies needed for the business.

Table 19
Office supplies requirements

Particulars Quantity Unit cost Total cost

Ball pen 5pcs 7.00 35.00
Pencil 5pcs 8.00 40.00
Calculator 1pc 200.00 200.00
Stapler 1pc 45.00 45.00
Staple wire 4 boxes 5.00 20.00
Band paper(long) 1 rim 235.00 235.00
Band paper( short) 1 rim 200.00 200.00
Receipt 5pads 25.00 125.00
Total - - 900.00
Source: Dianna Store, Flora Store

39
 Figure 9

Floor Plan

40
 Figure 10

Plant Location

41
 Figure 11

Building Perspective

42
FINANCIAL PLAN

43
Financial Assumption

1. Working capital in the total Project Cost is computed in one month's operation.
2. Total fixed cost is computed 3% total working capital and total pre-operating
expense.
3. Sales return and allowances and sales discount assumed to increase 2% of sales.
4. Direct material, direct labor, and utility cost is assumed to increase 3% annually.
5. Production volume is assumed to increase 50% annually.
6. Administrative salaries are assumed to increase 5% annually.
7. Housekeeping, production supply and office supplies are assumed to increase 2%
annually.
8. Packaging materials, promotional expense transportation expense is assumed to
increase 2% annually.
9. Office supply is assumed to increase 2% annually.
10. Sales return and allowance is assumed to increase 2% of gross sales and sales
discount is 2% of depreciation.
11. Income tax is based on the tax table imposed by the bureau of internal revenue.

44
Fixed Asset/ Start-Up Expense List

Working Capital Requirements

Working Capital ( One Month)

Direct Cost

Direct Materials 17, 039.00

Direct Labor 15,840.00

Total Production Cost 32,879.00

Add: Operating Expenses

Packaging Expenses 7,080.00

Promotional Expenses 1,500.00

Fringe Benefits 4,804.00

Administrative Salary 8,400.00

Rent Expense 5,000.00 PHP 26,784.00

Total Operating Expense PHP 59,663.00

45
 FRUIT COOKIES
Total Projected Cost

A. Fixed Assets
Equipment and Machine 6,095.00
Furniture and Fixtures 13,000.00
Tools and Utensils 1,704.0
0
Office Furniture and Fixtures 900.00

Total Fixed Assets PHP.

21,699.00
B. Working Capital (1 Month)

Direct Materials 17,039.

00
Direct Labor 15,240.
00
Transportation Expense 480.00

Packaging Expense 7,080.0

0
Administrative Salary 8,400.0
0
Fringe Benefits 4,804.0
Housekeeping Supplies 0
710.00
Rent Expense 5,000.00
Utility Expense 2,076.37
Promotional Expense 1,500.00

Total Working Capital PHP.

62,329.37
C. Pre-Operating Expense

Registration 2,00
0
Renovation 15,0
00

46
 Preparation of PFS 2,00
0
1,500
Permits and License

Total Pre-Operating Expense PHP.

20,500.00

Sub-Total PHP
104,528.37
FRUIT COOKIES

Projected Income Statement

for the Year Ended 2022-2022

Account Titles 2022 2023 2024 2025 2026
Gross Sales 1,128,960 1,693,44 2,540,160 3,810,240 5,712,54
0 0
Less: Sales Return & Allowances 22,579.20 33,868.8 50,803. 76,204.80 114,250.80
Sales Discount (2%) 22,579.20 0 20 76,204.80 114,250.80
33,868.8 50,803.
0 20

Net Sales 1,083,801. 1,625,702 2,438,553 3,657,830 5,484,038.4

60 .40 .60 .40 0
Less: Cost of Goods Sold
Direct Materials (3%) 187,272 192,890. 198,676 204,63 210,776.
16 .86 7.17 29
Direct Labor (3%) 182,880 188,366. 194,017.3 199,837.9 205,833.05
40 9 1
Packaging Materials (2%) 84,960 86,659.2 88,392. 90,160.23 91,963.4
0 38 3
Utility Expense (3%) 24,916.44 25,663.9 26,433. 28,043.6
3 85 27,226.87 8
Total Cost of Goods Sold 480,028.4 493,579.6 507,520.4 521,862.1 536,616.45
4 9 8 8
Gross Income 603,773.16 1,132,122 1,931,033 3,135,968 4,947,421.9
.71 .12 .22 5
Less: Operating Expense
Office Supplies (2%) 10,800 11,016 11,236.3 11,461. 11,690.2
2 05 7
Furniture and Fixtures 2,133.33 2,176 2,219.52 2,263.9 2,309.19
(2%) 1

47
Housekeeping Supplies (2%) 8,520 11,016 11,236.3 11,461. 11,690.2
2 05 7
Promotional Expenses 1,500 1,530 1,560.6 1,591.8 1,623.65
(2%) 0 1
Administrative Salary 100,800 105,840 111,132 116,688.6 122,523.03
(5%) 0
Transportation Expense (2%) 5,760 5,875.20 5,992.7 6,112.5 6,234.80
0 5
Fringe Benefits 57,650 57,650 57,650 57,650 57,650
Depreciation 1,143.33 1,143.33 1,143.3 1,143.3 1,143.33
3 3
License and Permits 1,500 1,500 1,500 1,500 1,500
Rent Expense 60,000 60,000 60,000 60,000 60,000
Pre-Operating Expense 20,500
Total Operating Expense 270,307 255,421 267,452.74 273,896.59
261,298.68
Net Income Before Tax 333,466.16 876,701.71 1,669,734.4 2,868,515.4 4,673,525.36
4 8
Less: Income Tax 59,339.58 171,367.56 324,758.36 556,105.90 903,905.01
Sales Tax (3%) 10,003.98 26,301.05 50,092.03 86,055.46 140,205.76
Net Income 264,122.60 679,033.10 1,294,884.05 2,226,354.12 3,629,414.59

48
 Projected Cash Flow Statement
For the Year Ended 2022-2026

Cash flow Pre- 2022 2023 2024 2025 2026

operations

Owners’ equity 104,528.37

Cash Sales 1,083,801.60 1,625,702.4 2,438,553.60 3,657,830.4 5,484,038.40

0 0

Total Cash Inflow 104,528.37

Cash Outflow

Fixed Assets

Equipment 6,095
and Machines

Furniture and 13,500

Fixtures

Tools and 1,704

Utensils

Office and 900

Furniture

Production and
Operating Expense

Direct 187,272 192,890.16 198,676.86 204,637.17 210,776.29

Materials

Direct Labor 182,880 188,366.40 194,017.39 199,837.91 205,833.05

Packaging 84,960 86,659.20 88,392.38 90,160.23 91,963.43

Materials

Utility expense 24,916.44 25,663.93 26,433.85 27,226.87 28,043.68

Administrative 100,800 105,840 111,132 116,688.60 122,523.03

salary

49
 Transportation 5,760 5,875.20 5,992.70 6,112.55 6,234.80
Expense

Fringe 57,650 57,650 57,650 57,650 57,650

Benefits

Office Supplies 10,800 11,016 11,236.32 11,461.05 11,690.27

Housekeeping 8,520 11,016 11,236.32 11,461.05 11,690.27

Supplies

Rent Expense 60,000 60,000 60,000 60,000 60,000

Promotional 1,500 1,530 1,560.60 1,591.81 1,623.65

Expense

License and 1,500

Permits

Income Tax 59,339.58 171,367.56 324,758.36 556,105.90 903,905.01

Pre-operating Expense 20,500

Total Cash Outflow 36,398 784,398 917,874.45 1,091,086.78 1,342,933.14 1,711,933.48

Net Cash Inflow 46,455 299,403.58 707,827.95 1,347,466.82 2,314,897.26 3,772,104.92

Cash Balance Beg. 46,455 345,858.58 1,053,686.53 2,401,153.35 4,716,050.61

Cash Balance, End. 46,455 345,858.58 1,053,686.53 2,401,153.35 4,716,050.61 8,488,155.53

50
 Projected Balance Sheet For The Year 2022-2026
ASSETS 2022 2023 2024 2025 2026

Current Asset

1,083,801.6 1,625,702.4 2,438,553.6 3,657,830.4 5,484,038.4

Cash 0 0 0 0 0

Account Receivable 54190.08 81285.12 121927.68 182891.52 274201.92

Total Current Assets 1,137,991.68 1,706,987.52 2,560,481.28 3,840,721.92 5,758,240.32

Equipment 6,095 6,095 6,095 6,095 6,095

Furniture and Fixture 13,500 13,500 13,500 13,500 13,500

Tools and Utensils 1,704 1,704 1,704 1,704 1,704

Office Furniture and Fixture 900 900 900 900 900

Total Fixed Assets 22,199.00 22,199.00 22,199.00 22,199.00 22,199.00

Less: Accumulated Depreciation 7,735 7,890 8,048 8,209 8,373

Net Book Value 14,464.00 14,309.00 14,151.00 13,990.00 13,826.00

TOTAL ASSETS 1,152,455.68 1,721,296.52 2,574,632.28 3,854,711.92 5,772,066.32

LIABILITY AND OWNER'S EQUITY

Income Tax Payable 59,339.58 171,367.56 324,758.36 556,105.90 903,905.01

Total Liability 59,339.58 171,367.56 324,758.36 556,105.90 903,905.01

Owner's Equity

1,093,116.1
104,528.37
Capital 0 1,549,928.96 2,249,873.92 3,298,606.02

Add: Net Income 1,047,927.31 628,180.42 1,024,703.32 1,604,838.00 2,473,460.30

Total Owner's Equity 1,152,455.68 1,721,296.52 2,574,632.28 3,854,711.92 5,772,066.32

TOTAL LIABILITIES AND OWNER 'S EQUITY 1,152,455.68 1,721,296.52 2,574,632.28 3,854,711.92 5,772,066.32

51
FINANCIAL ANALYSIS

A financial analysis refers to assessment liability, stability and profitability of the business or project. It is a
confidential consideration of the many factors which affect the present and future of the financial position of the enterprise
being studied, to lead a decision of any pertinent purpose, such as credit application, security investment or purchases.

Table 21

Financial Ratio

Year Net Income Net Sales

264,122.60 1,083,801.60

2022

679,033.10 1,625,702.40

2023

1,294,884.05 2,438,553.60

2024

2,226,354.12 3,657,830.40

2025

3,629,414.59 5,484,038.40

2026

8,093,808.46 14,289,926.40

Total

Average Net Income = 8,093,808.46

5

= 1,618,762
5
52
 = 323,752

It shows that the financial performance of the company is good having (323,752) as the average net income.

Average Net Sales = 14,289,926.40

5

= 2,857,985
5

= 571,597
For five years business operation the average net sales is (571,597) it is the amount of sales generated by a
company after the deduction of return and allowances for damage and any discount allowed.

A. Return on Investment

= Average Net Income x 100%

Total Project Cost

= 8,093,808.46 x 100%

104,528.37

= 7,743.17 %

The monetary benefits derived from having spent money on a business. The (7,743.17%) return on investment means that
the proposed business is profitable.

B. Cash Payback Period

53
 = Total Project Cost
Average Net Income
= 104,528.37
323,752
= 0.32 x 12=3.84
= .84 x 30 = 25.2

Cash Payback Period (CPP) = 2 years and 3 months, 2 days

C. Return on Sales

Return on Sales = Average Net Income x100%

Average Net Sales

= 323,752

571,597

= 0.57x 100%

Return on Sales = 57%

The measure is helpful to management, providing insight into how much profit is being produced per pesos of
sales. As with many ratios, it is best to compare a company’s ROS overtime to look for trends and compare it to
other companies in the industry. An increasing ROS includes the company is growing more efficiently, while a
decreasing ROS could be a signal looming for financial troubles.

RISK AND SENSITIVITY ANALYSIS

The risk and sensitivity analysis is an important character that entrepreneurs must possess to be a risk taker. Some
of the risks identified by the proponent are the technical risk, market risk, manpower risk and financial risk.

BREAK- EVEN POINT ANALYSIS

Break-even analysis is cost accounting and capital budgeting to evaluate projector product lines in terms of
volume and profitability relationships.

Break-even Point Sales Volume

Production Volume: 57,600
Unit Selling Price: PHP 20.00

Particular Amount Fixed Cost Variable Cost

54
Cost of Sale

Direct Materials 182,272 182,272

Packaging Materials 84,960 84,960

Direct Labor 182,880 182,880

Overhead Cost

Rent Expenses 60,000 60,000

Administrative Salary 100,800 100,800

Utility Cost 24,916.44 24,916.44

Depreciation Expenses 1,143 1,143

Permits and Licenses 1,500 1,500

Total 638,472 188,360 450,112

1. UNIT VARIABLE COST

Total Variable Cost = 450,112

Sales Volume 57,600
=7.81 or 8

2. BREAK-EVEN POINT SALES VOLUME

Total Fixed Cost X 100% = 188,360 = 188,360 = 3,087.87

Unit Selling Price – Variable Cost 20-81 61

3. BEP Selling Price = Total Fixed Cost + Variable Cost

Projected Sales Volume

= 188,360+ 450,112

57,600

= 233,372

55
 57,600

=4

Sensitivity Analysis

It shows the analysis of income statements concerning the possible changes or the possible situation that may be
encountered in the business operation. Re- computation of some accounts will show if a business will survive
through different scenarios.

The proponent uses the year 2021 as the base year for the re- computation of income statements in the year 2022.
The proponent cited 3 situations that may occur for the next year. For the first situation, it is assumed that a 10%
decrease in the costs of goods sold results in higher income. Second situation assumes that there is a 5% increase in
the operating expenses resulting in lower income. In the third situation, it is assumed that there is a 5% decrease in
net sales results to higher income.

Particulars Normal Situation 1 Situation 2 Situation 3

1,083,801.6
Net Sales 0 1,116,315 1,116,315 1,116,315
Less: COGS 480,028.44 494,429.29 494,429.29 494,429.29
Gross Sales 1,128,960 621,855.71 621,855.71 621,855.71
Less: OE 270,307 270,307 278,416.21 286,768.70
Net Income Before
Tax 333,466.16 351,548.71 343,439.50 335,087.01
Income Tax Payable 59,339.58 59,339.58 59,339.58 59,339.58

Net Income 8,093,808.6 410,888 402,779 394,427

56
SOCIO - ECONOMIC
STUDY

57
Socio-Economic Impact

A business venture not only means to grow and contribute to earn a reasonable profit just to survive, but also to
provide good and profitable products for society needs. Business is a major contributor to the economic growth in
the country. One of the goals of this business is to help local farmers by supplying the raw materials. The presence
of business in a community creates employment, contribute to the development of the community.

Business is a risk taking venture. The presence of the business or establishment in a community creates
employment, contributing to the development of the community through tax payment. And also enhances the social
life of people.

The proposed business will help the economy through the help of the product in the market and gaining
employment that will address the increasing demand for the employment.

58
APPENDICES

59
 Schedule 1
Survey Questionnaire
Name (Optional):
Date:
Age:
Gender: (_) M (_) F
Address:
Survey Questionnaire
Instruction: Please answer what is being asked and put a check (/) on the space you choose in
the questions provided.

1. Which of the following cookies you usually eat?

(_) Chocolate chip cookies (_) Chip Ahoy Cookies

(_) Eggnog Cookies (_) Fruit Cookies

2. How much is your budget per piece?

(_) PHP 12 (_) PHP 17

(_) PHP 15 (_) PHP 20

3. How much is your budget per box contained 12 pieces of cookies?

(_) PHP 120 (_) PHP 130

(_) PHP 150 (_) PHP 140

4. How frequent do you buy cookies?

(_) Everyday (_) once a week

(_) Twice a week (_) thrice a week

5. Where do you usually buy a cookies?

(_) Bakery (_) supermarket

(_) Sari-sari Store (_) if others please specify_______

6. In one piece of cookies, which packaging do you prefer?

(_) Paper bag (_) Plastic bag

7. In one dozen of cookies, which packaging do you prefer?

(_) Boxes (_) plastic bag (_) Paper bag
60
8. Are you willing to buy a Fruit Cookies?
(_) Yes (_) No

Schedule 2
Computation of total Respondents and Survey
84% willingness to buy the product “Fruit Cookies”

Formula n= N

1+ (.05)2

N= 3,229

1 + 3,229 (0.0025)

= 3, 229

1 + 8.0725

= 3,229

9. 0725

= 356 total of respondent

N= no. of willingness to buy x 100 %

Total respondent

= 300 x 100 %

356

= 0.843 x 100%

84 % willingness to buy the product “Fruit Cookies”

61
Area No. of household No. of Respondents No. of willing to
buy the product
Yes No
Pinontingan 301 63 29 5
Balud Del 475 30 26 8
Norte
Balud Del Sur 284 52 31 6
Luna Candol 575 45 39 7
Manook 335 40 42 9
Panganiban 539 34 45 4
Paradijon 309 33 35 8
Cota na Daco 411 59 53 9
Total 3,229 356 300 56

Schedule 3

Computation of Average per Capita Consumption

Average per Capita Consumption= Total Annual Consumption

No. of person who said “Yes”

Average per Capita Consumption= 430 x 12

300

Average per Capita Consumption= 5,160

300

Average per Capita Consumption= 17.2

62
 Schedule 4

Computation of Gross Sales

Year Sales Volume Sales Price Gross Sales

2022 56,448 20 1,128,960
2023 84,672 20 1,693,440
2024 127,008 20 2,540,160
2025 190,5112 20 3,810,240
2026 285,627 20 5,712,540

Schedule 5

Computation of Account Receivable

Particular 2022 2023 2024 2025 2026

Gross Sales 1,128,960 1,693,440 2,540,160 3,810,240 5,712,540
Less: Sales 22,579.20 33,868.80 50,803.20 76,204.80 114,250.80
Returns
and
Allowances
Sales 22,579 33,869 50,803 76,205 114,251
Discount
Net Sales 1,083,801.6 1,625,702.40 2,438,553.60 3,657,830.40 5,484,038.40
0
Multiply
by: %
A/R 54190.08 81285.12 121927.68 182891.52 274201.92

Schedule 6

Computation of Cash Sales

Particular 2022 2023 2024 2025 2026

Gross Sales 1,128,960 1,693,440 2,540,160 3,810,240 5,712,540
Less: Sales 22,579.20 33,868.80 50,803.20 76,204.80 114,250.80
Returns
and
Allowances
Sales 22,579 33,869 50,803 76,205 114,251
Discount
Net Sales 1,083,801.6 1,625,702.40 2,438,553.60 3,657,830.40 5,484,038.40
0
54,190.08 81285.12 121,927.68 182,891.52 274,201.92
63
Less: A/R
Cash Sales 1,029,611.52 1,544,417.28 2,316,625.92 3,474,938.88 5,209,836.48
 Schedule 7

Computation of Electrical Consumption

Formula:

Kwh= wattage

100 x No. of hours x No. of items

Consumption/ day= Kwh/day x rate per Kwh

Consumption/ Month= Kwh/day x rate per hour x No. of days used

Fluorescent Bulb (40 watts)

= 40 watts/ 1000 x 2 (units) x 20 days= 12.8 kw/h

Stand Fan (80 watts)

= 80 watts/1000 x 1 (units) x 20 days= 12.8 kw/h

Consumption/ month =12.8 kw/h + 12.8 kw/h

= 25.6 kw/h x 10.7956

= 276.37

64
 Schedule 8

SSS Contribution

65
 Schedule 9

Phil Health Contribution

Schedule 10

Pag- ibig Contribution

66
67
68
69