A BUSINESS PLAN OF GIA’S WHITE CHOCO BAR LOCATED AT

PUROK 1 CABINUANGAN, NEW BATAAN DAVAO DE ORO

Presented to

The Faculty of Entrepreneurship

Department Davao De Oro State College

New Bataan Branch New Bataan, Davao

de Oro, Philippines

In Partial Fulfillment

Of the Requirements for the

Degree Bachelor of Science in

Entrepreneurship

ALVIN JR. H. BRUSE

DONNA S. HERNALI
GEORGIA AMABELLE C. TA-ALA
LELITH H. SARAGA
SHEKINAH T. HANGGAM
June 2023

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 ACKNOWLEDGMENT

The proponents are deeply grateful to everyone who helped us complete this
project. Without their help, we would not have been able to do it.

First, we thank God for His blessings and for giving us the perseverance and
patience to overcome the challenges we faced. We know that we could not have
finished our business plan without His grace.

We are also grateful to our subject instructor, Mrs. Wendy Mae Dulos, for her
support, wise counsel, and commitment to excellence. She inspired us to
become better students and entrepreneurs.

We are thankful to our advisor, Ms. Rizel Pelicano, for her steadfast support and
guidance throughout the development of our business plan. Her expertise,
insights, and feedback were invaluable to us. We are grateful for the countless
hours she spent reviewing our work, answering our questions, and providing us
with helpful suggestions.

We are also grateful to Mr. Ernan S. Leal for his perseverance, skills, and
knowledge, which were essential in securing the financial aspects of our
business plan.

We appreciate the help of Mr. Arsenio Manudsod Jr. in editing and correcting
the grammar of our business plan. His proficiency in grammar contributed to the
professional and error-free quality of our manuscript.

We are also grateful to everyone who took the time to fill out our survey
questionnaire. Your participation was essential to the completion of our business
plan.

Finally, we want to express our gratitude to our loved ones for their unwavering
financial assistance, as well as their physical, mental, and emotional support. We
are immensely grateful for their generosity and support.

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 TABLE OF CONTENTS
CONTENT Page

Acknowledgment…………………………………………………………i

Table of Content………………………………………………………….ii

List of Tables ………………………………………………………vii

List of Figures…………………………………………………………….viii

List of Appendices………………………………………………………. xi

Approval sheet……………………………………………………………1

Executive Summary……………………………………………………...2

CHAPTER I

 Brief description of the project…………………………………....3

 Profile of Entrepreneur………………………………………….…4

 Project Contribution to Economy…………………………………4

Introduction

 Objectives of the project…………………………………………..6

 Methodology………………………………………………………..7

 Scope and Limitations of the study………………………………8

General Company Profile

 Vision……………………………………………………………….11

 Mission……………………………………………………………..11

 Goals……………………………………………………………….11

 Enterprise Objectives……………………………………………..11
  Business Philosophy……………………………………………...12
ii
 Business Size……………………………………………………...13

 Legal Forms of Ownership……………………………………….13

CHAPTER II

Marketing Plan

 Marketing Aspect………………………………………………….14

 Description of the Product………………………………………..15

 Proposed Location…………………………………………….…..16

 Market Area…………………………………………………….…..17

 Target Market………………………………………………………17

 Historical Demand………………………………………………....18

 Projected Demand…………………………………………………18

 Historical Supply…………………………………………………...19

 Projected Supply…………………………………………………...19

 Supply and Demand Analysis………………………………….…20

 Market Share………………………………………………….........20

 Competitive Analysis and Landscape …………………….….….20

 SWOT Analysis……………………………………………..……....22

 Marketing Strategy………………………………………………….23

 Product Strategy……………………………………………..……..23

 Promotional Strategy……………………………………….….…..24

 Pricing Strategy………………………………..……………………26
  Distribution Strategy………………………….………………..……28

 Sales Forecast…………………………………..……………….….28

 Marketing Budget……………………………………………………29 iii

CHAPTER III

Production Plan

 Production Process………………………………………………. 30

 Step-By-Step Process in producing Taro Doughnut Balls….…30

 Property Plant and Equipment……………………………….…..31

 Depreciation of Property, Plant, and Equipment…………….…34

 Repairs and Maintenance…………………………………….…..35

 Factory/Store Equipment……………………………………….…35

 Store/Factory Layout………………………………………….…...36

 Rent/Lease Expense………………………………………….…...37

 Raw Materials and Its Costs……………………………………...38

 Raw Materials Availability………………………………………...39

 Inventory Management……………………………………………39

 Utilities Expense…………………………………………………...40

 Cost of Labor…………………………………………………….…41

 Labor Availability………………………………………………..….41

 Other Factory Overhead……………………………………..……44

 Quality Control………………………………………………….….42

 Innovation…………………………………………………….…….42
  Value Addition…………………………………………………..….42

 Production Cost……………………………………………..……..43

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CHAPTER IV

Organization and Management Plan

 Form of Business………………………………………………….44

 Organizational Structure………………………………………….44

 Business Experience and Qualification of the Entrepreneur…45

 Office Furniture and Fixture……………………………………...45

 Depreciation of Office Furniture and Fixture…………………...47

 Administrative Expense...…………………………………………48

 Permits and Licenses……………………………………………..48

 Pre-Operating Activities…………………………………………..49

CHAPTER V

Financial Plan

 Capitalization Requirements……………………………………..50

 Total Project Cost…………………………………………………50

 Major Assumptions………………………………………………..50

 Projected Financial Statements………………………………….51

 Breakeven Point (BEP)…………………………………………...52

 Return On Investment (ROI)……………………………………..65

 Payback period…………………………………………………….66
  Financial Ratios and Analysis…………………………………….66

 Horizontal Analysis………………………………………………...68

 Vertical Analysis…………………………………………………...72

 Project Feasibility………………………………………………….77

Environmental And Social Impact Analysis…………………………78 v

REFERENCES……………………………………………………………..80

APPENDICES………………………………………………………………81
 LIST OF FIGURES

FIGURE Page

1 Gia's White Choco Bar 15

2 Vicinity Map 16

3 Gia’s White Choco Bar Flyers 24

4 Tarpaulin of Gia’s White Choco Bar 25

5 Facebook Page of Gia’s White Choco Bar 25

6 Distribution Strategy 28

7 Production Process 30

8 Step 1 in making Gia's White Choco Bar 31

9 Step 2 in making Gia's White Choco Bar 31

10 Step 3 in making Gia's White Choco Bar 32

11 Step 4 in making Gia's White Choco Bar 33

12 Step 5 in making Gia's White Choco Bar 32

13 Step 6 in making Gia's White Choco Bar 33

14 Step 7 in making Gia's White Choco Bar 33

15 Step 8 in making Gia's White Choco Bar 33

16 Floor Plan 33

17 Front Perspective 37

18 Organizational Structure 45

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7
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 LIST OF TABLES

TABLE Page

1 Profile of Entrepreneur 3

2 Historical Demand for Gia's White Choco Bar 18

3 Projected Demand for Gia's White Choco Bar 18

4 Historical Supply for Gia's White Choco Bar 19

5 Projected Supply for Gia's White Choco Bar 19

6 Supply and Demand Analysis of 20

Gia's White Choco Bar

7 Market Share of Gia's White Choco Bar 20

8 Competitor Analysis/Landscape 21

9 SWOT Analysis 21

10 Pricing Strategy 26

11 Sales Forecast for Gia's White Choco Bar 28

12 Marketing Budget 29

13 Property, Plant, and Equipment and its Cost 34

14 Schedule of Depreciation 34

15 Repairs and Maintenance 35

16 Store Equipment and Materials 35

17 Rent/Lease Expense 37

18 Raw Material for Gia's White Choco Bar 38

19 Raw materials availability 39

20 Utilities Expense 40

21 Cost of Direct Labor 41

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22 The production cost of Gia's White Choco Bar 43

23 Qualification of Personnel 46

24 Office Furniture and Fixture 47

25 Schedule of Depreciation of Office Equipment 48

26 Supplies Expense 48

27 Pre-Operating Activities and Expenses 49

28 Total Projected Cost 50

29 Projected Statement of Financial Performance 52

30 Projected Statement of Cash Flow 53

31 Projected Statement of Changes in Equity 54

32 Projected Statement of Financial Position 55

33 Notes 56

34 Fixed Cost 62

35 Variable Cost 62

36 Unit Produced 62

37 Allocated Fixed Costs 63

38 Allocated Variable Costs 63

39 Sales Per Unit 63

40 Contribution Margin Per Unit 63

41 Breakeven Point (In Units) for 2023 63

42 Breakeven Point (In Units) for 2024 64

43ix Breakeven Point (In Units) for 2025 64

44 Gross profit margin Ratio 67

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 45 Operating Profit Margin Ratio 67

46 Net Profit Margin Ratio 67

47 Horizontal Analysis of Projected Statement of 68

Financial Performance

48 Horizontal Analysis of Projected Statement of 69

Financial Position

49 Horizontal Analysis of Projected Statement of 70

Cash Flow

50 Horizontal Analysis of the Projected Statement of 71

Changes in Equity

51 Vertical Analysis of Projected Statement of 72

Financial Performance

52 Vertical Analysis of Projected Statement of 73

Financial Position

53 Vertical Analysis of Projected Statement of 74

Cash Flow

54 Vertical Analysis of Projected Statement of 75

Changes in Equity

55 Ratio Analysis 76

LIST OF APPENDICES

APPENDIX

A. Certificate of Approval 81

B Barangay Cabinuangan Population Data 82

C Survey Questionnaire 85
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D Request Letter to Barangay Cabinuangan 87

E Endorsement 88

F Certificate of Exemption from Ethics Review 89

G Cost Pricing Strategy 90

H Summary of Survey Questionnaire 91

I Notes 92

J Historical Demand for Gia's White Choco Bar 98

K Projected Demand for Gia's White Choco Bar 98

L Historical Supply for Gia's White Choco Bar 98

M Projected Supply for Gia's White Choco Bar 99

N Supply and Demand Analysis of 99

Gia's White Choco Bar

O Market Share of Gia's White Choco Bar 100

P Sales Forecast for Gia's White Choco Bar 100

Q Financial Analyst Certificate 101

R Proprietors’ Basic Information 102

xi

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 EXECUTIVE SUMMARY

Gia's White Choco Bar is a business that produces sweet treats with a
unique flavor. Their "Cacao White Chocolate" is a delicious snack food made
with cacao butter and milk, and it is sealed and kept fresh for up to 6 months
using a plastic wrapper and food-grade foil.

The business aims to please its customers, offer reasonable prices, turn a
profit, and benefit the community by providing opportunities for people looking for
extra income and students of legal age looking to earn money. They will also be
using a 24/7 online ordering system, which will allow customers to place orders
at any time and receive them by the following morning.

The business is located in New Bataan, where cacao is one of the most
popular and important products. The proponents decided to create this type of
white chocolate in order to help farmers make money when they sell their cacao
beans to them and to provide customers with a novel white chocolate product.

A descriptive quantitative approach was used to research the business

plan. This means that the activity of the subject was observed and described
without being influenced in any way. A total of 11,598 respondents were
surveyed, and 372 were included in the sample for this group in all areas. The
proponents chose this method based on the accessibility and proximity of the
respondents.

The Return on Investment (ROI) for GIA'S WHITE CHOCOLATE BAR in

year one (2023) is calculated to be 29.08%. This means that for every PHP 1
invested in the business, the net income earned is PHP 2. This shows a positive
return, meaning that the business was profitable and yielded significant profits
relative to its initial investment.

In general, a shorter payback period indicates a faster return on

investment and lower risk. This data helps businesses determine the feasibility
and profitability of a project and make sound investment decisions. However, for
a more complete analysis, other financial criteria should be considered in
addition to the payback period.

2
Brief Description Of The Project

Gia's White Choco Bar is a business that sells sweet treats with a unique

flavor. Their "Cacao White Chocolate" is a delicious snack food made with cacao

butter and milk, and it is sealed and kept fresh for up to 6 months using a plastic

wrapper and food-grade foil. The business aims to provide affordable prices,

satisfy customers, make a profit, and help the community by providing

opportunities for people looking for extra income and students of legal age

looking to earn money. They will also be using a 24/7 online ordering system,

which will allow customers to place orders at any time and receive them by the

following morning. The business is located in New Bataan, where cacao is one of

the most popular and important products. The proponents decided to create this

type of white chocolate in order to differentiate it from regular chocolate and to

provide customers with a novel white chocolate product.

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 Profile of the Entrepreneur

Table 1: Entrepreneur’s Profile

NAM EDUCATIONAL ADDRESS

E BACKGROUND

/WORK
EXPERIENCE
Donna S. Hernali College Purok 12
Cabinuangan, New
-Davao De Oro State College Bataan, Davao De Oro
Province
New Bataan Branch
Bachelor of Science

In Entrepreneurship

Experience:
-Cashier and Sales Lady in
Bright Star Hardware at
Nabunturan, Davao De Oro

Project Contributions to The Economy

Developing and improving the local community and economy are also

important to Gia's White Choco Bar. This business has the potential to have a

significant positive impact on the economy. In order to support community

development projects, Gia's White Choco Bar will pay its fair share of taxes,

provide job opportunities for unemployed residents of New Bataan, and help

small cacao farmers and suppliers in the barangay of Cabinuangan, New Bataan.

This is because Gia's White Choco Bar will buy cacao butter from them.
4
 INTRODUCTION

Gia's White Choco Bar is a new brand of white chocolate made with cacao

butter, milk, and sugar. It will be sold online and in outlet stores. The company

aims to create a community of people who care about quality white chocolate

and simple ingredients, where delicious taste and shelf life are preserved, and

where the company is committed to the goal of less but better. Most people enjoy

eating sweet snacks, especially chocolate. People in New Bataan are looking for

affordable white chocolate. This paper proposes the idea of providing the

community with a convenient and affordable sweet food snack. Gia's White

Choco Bar's primary objective is to form exclusive partnerships with some stores

in New Bataan. The goal is to create a sense of exclusivity so that brand loyal

customers will visit the store to purchase their white chocolate.

The proponents intend to attract and engage potential customers via

social media as well as in-store. They also intend to complete their tasks as soon

as possible. This business gains a competitive advantage by providing customer

support and by maintaining constantly active social media accounts, which allows

customers to respond at any time and receive their order by the morning of the

next day. The researchers considered food innovation as a business because

modern culture values both innovation and healthy living. By incorporating new

ingredients, food that was formerly unhealthy can now be made healthier. The

researchers are aware that social media is one of the greatest and easiest ways

to market, and that young people are its most ardent users. With this in mind, the

5
researchers chose to build a business booth at Davao de Oro Stage College that

would be close to national and large institutions.

Cacao is one of the most widely used and important products in the

Municipality of New Bataan, so the study's backers came up with this kind of

business concept. In order to help farmers profit from selling their cacao beans to

us and to offer our customers a new type of white chocolate product here in New

Bataan, they decided to produce this kind of product. The proponent chose

Cacao Chocolate Bar as the product because the raw supplies are readily

available in the New Bataan area. The company wants to provide consumers

with wholesome, reasonably priced snacks and will help the squash growing

industry expand. The purpose of this paper is to evaluate the business's viability

or marketability. This will be successful with careful planning, market research,

and implementation; this will allow for the calculation of risk and the development

of appropriate tactics.

To draw attention to the product and spread the word that it is available in

the market, researchers printed advertisements, such as tarpaulins, and social

media platforms. Everybody may learn how to make Gia's White Choco Bar, and

there won't be a shortage because all the components are always available in

town. Cacao Chocolate Bar is a sole proprietorship run by Donna S. Hernali with

a Php 21,807 starting capital. Additionally, this study demonstrates that the

suggested company is well capable of surviving and succeeding in the cutthroat

world of food innovation.

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Objective of the project

The following are the objective of the Gia’s White Choco Bar project:

1. To assess the interest of the residents of Barangay Cabinuangan, New

Bataan, Davao Oro in Gia's White Choco Bar.

2. To use the information gathered to develop manufacturing, marketing,

and financial plans that will help the business succeed.

3. To produce accurate forecasts of opportunities and threats.

Methodology

The business plan will use a descriptive quantitative research method.

This means that the researchers will observe and describe the target market

without interfering with it. The goal of a descriptive study is to accurately and

systematically describe a population, situation, or phenomenon. Unlike

experimental research, the researchers in a descriptive study only observe and

measure the variables (Mccombes, 2019).

The researchers will use survey questionnaires to gather data and

determine the demand and supply analysis. The questionnaires will contain

questions and choices that are relevant to the business and its products. The

target market will be the respondents. The first step in the survey process was to
7
submit a letter to the program head, who is the BP survey questionnaire validator

of this course as well as the Bachelor of Science Entrepreneurship office,

requesting permission to distribute the survey questionnaires. The participants

were reminded of the study's goal, research procedures, expected benefits, their

right to withdraw from the study at any time, and confidentiality protection.

Moreover, researchers used the Raosoft calculator and random sampling

method to determine the sample size. The total population of respondents is

11,598, therefore the sample size for this population across all sections will be

372. The researchers chose this technique because it is accessible and

convenient for them. Lastly, the researchers used the following statistical tools to

analyze the data collected: frequency and percentage will be used to determine

the demographic profile of the respondents.

Scope and limitation

The respondents of the study were working-class individuals), working and

parent residents of Barangay Cabinuangan, New Bataan, Davao de Oro, college

students of Davao de Oro State College, and senior high school students of New

Bataan Senior High School. A target market is a small group of potential

customers who are likely to buy a product or service (in this case, people who

work and study in the barangay). The survey also included competitors, which

are businesses in the same area that sell the same product as Gia's White

Chocolate Bar. The respondents were not selected based on status, gender, or

8
age, as the product is intended for everyone. Other nearby barangays were not

included in this business startup in order to focus on a small scale and determine

the flow of business and products

CHAPTER 1

GENERAL COMPANY PROFILE

Gia's White Choco Bar was named after the main ingredient, cacao butter,

and the product type, white chocolate. It is made with milk and has any design.

The business will sell white chocolate bars. The proponents chose to produce

white chocolate because the ingredients are readily available in the market and it

benefits the cacao plant retailers. Good business production is the most

important factor in establishing a successful business.

The "Cacao White Chocolate" will be available at Gia's White Choco Bar

store. The store is open Monday through Saturday from 8:00 AM to 5:00 PM and

is located at Purok 1, Poblacion, Cabinuangan, New Bataan, Davao de Oro

Public Market. It is located in the center of the Public Market, so customers can

easily see it. The business will be managed by third-year students taking up

Bachelor of Science in Entrepreneurship at Davao de Oro State College. The

group has the right knowledge and skills to handle every business process. The

business is located in Barangay Cabinuangan, New Bataan, Davao de Oro

because it is more accessible to the target market and the source of raw

materials.

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Vision

To produce best and tastiest chocolate in the locality of Davao de Oro.

Mission

To provide best and affordable products that offers best customer services.

Goal

The following are the goals of the Gia’s White Choco Bar:

1. To increase sales by expanding production to reach more customers

and introducing new varieties.

2. To maintain and improve product quality by using fresh, high-quality

ingredients and continuously improving the production process.

3. To increase brand awareness and customer loyalty by funding social

media advertising campaigns that highlight the unique flavor and health

benefits of Gia's White Choco Bar.

Enterprise Objectives

The enterprise objectives are as follows:

1. To increase sales by 5% each month.

2. To develop a marketing, production, and financial plan for a new

business within three months.

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3. To achieve a profit of at least 5% within two to three years by

increasing sales, effectively controlling costs, and continuously

improving the efficiency of manufacturing processes.

4. To foster innovation and product development by conducting

continuous research, creating new flavors and product variations, and

responding to the evolving needs and preferences of customers.

5. To provide delicious and nutritious nuggets that promote health and

fitness. We want to educate our customers about the health benefits of

squash and how our product can support a healthy lifestyle.

6. To achieve a profit of at least 5% within two to three years by

increasing sales, effectively controlling costs, and continuously

improving the efficiency of manufacturing processes.

7. To foster innovation and product development by conducting

continuous research, creating new flavors and product variations, and

responding to the evolving needs and preferences of customers.

8. To provide delicious and nutritious nuggets that promote health and

fitness. We want to educate our customers about the health benefits of

squash and how our product can support a healthy lifestyle.

11
Business Philosophy
Quality

The company is dedicated to using premium ingredients ensuring

that production procedures adhere to the highest standards of quality and

safety. Gia’s White Chocolate Bar strive to produce goods that meets the

customer’s satisfaction.

Innovation

The company is dedicated to fostering an environment that values

innovation. In the fiercely competitive food industry, staying on top of trends is

crucial for staying relevant. To satisfy the growing demands and preferences of

the clients, the company will continue to keep investigating and creating new

flavors and product variations as the company’s guiding principle is to offering

wholesome meals that may help people live better lives.

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 Business Size

The company is classified as a Micro Enterprise because it will only

employ 5 people during its first operation and will serve a small portion of

the market.

Legal Form of Ownership

The proposed company will be registered as a sole proprietorship

under the name Donna S. Hernali. The simplest, oldest, and most common

type of business ownership is sole proprietorship. This type of business is

simple to run and organize for the owner.

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 CHAPTER II

MARKETING PLAN

A marketing plan is a written strategy for selling a new business's products

or services. It shows how serious the company is about competing by outlining

strategies and plans to increase market share and attract customers. Gia's White

Choco Bar plans to conduct a comprehensive marketing campaign to maximize

its visibility in the target market. The proponents are initially targeting young and

adult people in Cabinuangan, who are more likely to appreciate the product's

innovation

MARKETING ASPECT

Many existing businesses, such as chocolate sellers, exist in Davao de

Oro, particularly in New Bataan, because chocolate is a popular product in New

Bataan, and many people enjoy naturally made chocolate. Marketing aspects of

selling chocolate include determining the product's variety, scanning the

operating environment for SWOT analysis, and creating financial forecasts.

Fortunately, no cacao white chocolate is currently available in the municipality.

The proponents seize this opportunity and eventually break into the market. The

proponents affirm that in order to have more customers, there’s a need to try

innovative ways and strategies. This serves the proponents to go upward and

improve their product.

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Description of the Product

Gia's White Choco Bar is a treat made with cacao butter. The company

uses cacao butter as its distinctive trademark to create white chocolate. This

snack satisfies everyone's cravings and is in high demand after eating salty

meals because it can satiate buyers and consumers. Cacao white chocolate has

a competitive advantage over its rivals because it is natural, affordable, and can

be produced with innovation and quality.

Figure 1. 18 grams White Chocolate

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Proposed Location

The proposed business location is at Purok 1, Cabinuangan Poblacion,

New Bataan, Davao de Oro Public Market, as shown on the map below. This

location offers a great opportunity to attract new customers in a thriving and

growing neighborhood. The proponents are confident that this location will allow

the business to establish a strong market presence and have a significant impact

on the community due to the high demand for its products and services, easy

access to major transportation routes, ample parking, and favorable

demographics.

GIA’S WHITE
CHOCO BAR

Figure 2. Vicinity Map

The red pin in the image is the proposed location of their physical store and

production area. It is located at Purok 1, (Poblacion) Cabinuangan, New

Bataan, Davao de Oro.

16
Market Area

This section includes the Target market, Historical Demand, Projected

Demand, Historical Supply, Projected Supply, Supply and Demand

Analysis, and the market share of the Cacao White Chocolate business.

a. Target Market

The target market for Cacao White Chocolate is the residents of New

Bataan, Davao de Oro, including the eight (8) Puroks of Purok 1A, Purok 2,

Purok 3A, Purok 3B, Purok 4, Purok 4A, Purok 4B, and Purok 14. The

proponents also considered college students of Davao de Oro State College,

especially those enrolled in the Entrepreneurship course, and senior high school

students of New Bataan Senior High School as part of the target market. No

selection of status, gender, or age will be done during the selection of

respondents, as the product is offered to everyone. Other accessible/nearby

barangays are not included in this business startup to determine the flow of

business and products, as it will only focus on a small-scale business.

17
 Historical Demand

Table 2. Historical Demand of Gia’s White Choco Bar

NUMBER OF
YEAR POPULATION PURCHASES TOTAL DEMAND
PERMONTH

2020 11,410 78 881,462

2021 11,368 78 878,217

2022 11,598 78 895,986

The projected number of purchases per month is 78.

*Population Source- Barangay Cabinuangan, New Bataan, Davao

de Oro

Projected Demand

Table 3. Projected Demand of Gia’s White Choco Bar

BASE AVERAGE % PROJECTED

YEAR
YEAR INCREASE DEMAND

2023 895,986 10% 982,977

2024 982,977 10% 1,078,415

2025 1,078,415 10% 1,183,120

The projected demand of Gia’s White Choco Bar is 10%
increase every year

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 Historical Supply

Table 4. Historical Supply of Gia’s White Choco Bar

COMPETITOR 2023 2024 2025

7eleven 21,600 22,680 23,814

Wawangstore 10,560 10,877 11,203

M.A ponilar 11,880 12,236 12,603

Total Historical 44,040 45,793 47,621

Supply

Projected Supply

Table 5. Projected Supply of Gia’s White Choco Bar

YEAR BASE YEAR AVERAGE %

PROJECTED
INCREASE
SUPPLY
2023 47,620 4% 49,518
2024 49,518 4% 51,491
2025 51,491 4% 53,543
The projected supply of Gia’s White Choco Bar is 4% increase every year

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Supply and Demand Analysis

Table 6. Demand and Supply Analysis

UNSATIS
YEAR DEMAND SUPPLY
FIED
DEMAND
HISTORICAL
2020 881,462 44,040 837,422
2021 878,217 45,793 832,424
2022 895,986 47,620 848,366
PROJECTED
2023 982,977 49,518 933,460
2024 1,078,415 51,491 1,026,924
2025 1,183,120 53,543 1,129,577

Market Share

Table 7. Market Share of Gia’s White Choco Bar

UNSATISFIED PRODUCTION MARKETSHARE

YEAR DEMAND CAPACITY
2023 933,460 50,400 5.40%
2024 1,026,924 55,440 5.40%
2025 1,129,577 66,528 5.89%

Given the production capacity versus the unsatisfied demand, market share

is calculated resulting in a low market share for the proposed business in

the market area. This is the result of considering the business's available

resources.

20
Competitor Analysis/Landscape

Table 8. Competition Analysis

Presented in table 8 the competition analysis of Gia’s White Choco Bar to

its indirect competitors.

Name Name of Name of

Competitor Competitor
FACTOR ofyour Strength Weaknesses
Busines
s Gia’s Wang 7/11
White and Wena Convenience
Choco Store Store
Bar
Products White \ Goya Goya
Chocolat
e
Price Low \ Low Low

Quality High \ High Quality High Quality

Quality

Stability Unstable \ Stable Stable

Expertise Innovate \ Selling Selling

Company Good \ Good Good

Reputatio
n
Location Public \ Purok 2 Public Market
Market

Appearance Attractive \ Attractive Attractive

Sales Method Social \ Social selling Social selling

selling

Advertising Social \ Social Media Social Media

Media

21
 MARKETING PLAN

This part includes the marketing objectives, marketing strategies,

marketing mix, and sales forecast.

Marketing Objectives

The following are the Marketing Objectives of Gia’s White Choco Bar Business.

• Develop marketing tactics that will attract t h e customers' attention

and encourage them to buy the product.

• To build good reputation in the market by offering premium products

at competitive prices.

• Increase sales monthly by 3.99% while increasing market share by 15% in

the next three years.

22
SWOT Analysis

The purpose of this study is to determine the internal strengths and

weaknesses of the proposed business as well as its external opportunities

and threats.

Table 9. SWOT Analysis

Strength Weaknesses

- Because there are no other

chocolate bars manufactured from - Weak customer relationship
cacao on the market, the company’s - Lack of experience
main ingredient is unique.
- A variety of tastes. - The Choco Bar concept might be
- Low cost of manufacture. simple fo others to copy.
- Reasonable price.
- Simple Production technique.

 Opportunity  Threats

- New product in the market. - Competitors who might take

- Social Media Presence. advantage of the product’s
- Chance to innovate existing product. innovation or the firm’s
- Big market marketing strategies to boost
- Strong demand their own competitiveness.
- May have the potential to receive - Uncertainly around a new
government export subsidies. product’s launch.

23
Marketing Strategies

Product Strategies

The proposed business will use wrapper materials as packaging so

that customers can bring it with them whenever they want. White chocolate

is good and suitable for young and adult people with limited budget

because it is affordable. The proposed business will provide value snacks

at a low price that is affordable to customers.

Promotional Strategies

The proposed business will use different strategies to promote their

product. In reaching the target customers, a combination of marketing

techniques will be utilized.

The proponent will be marketing the product in the following ways:

 Distributing flyers one week before the Grand Opening.

24
 Figure 3. Gia’s White Choco Bar Flyers

•Tarpaulin a traditional form of advertising will enable the company to

reach a larger audience and generate quick interaction and

transactions. This business move may result to increase the sales.

Figure 4. Tarpaulin of Gia’s White Choco Bar

Facebook page a social media platform will help the business to

reach out the target audience and build relationships with them by

connecting with customers and interacting with each other by

personal message, offering key information about the business,

products, services, and company’s activities.

25
 Figure 5. Facebook Page of Gia’s White Choco Bar
Pricing Strategy

The business owner chose to modify the cost pricing strategy because raw

materials are readily available at low cost, making the product cost-effective. This

approach is intended to persuade more people to purchase because it is

satisfying and affordable.

Table 10. Price

Product Raw Material Quantity TOTAL COST

DIRECT MATERIALS

Butter Cacao 2kg ₱150.00

Cowbell Condense 6pcs ₱76.20
Salt 1kg ₱25.00
Alaska Powdered Milk 7pcs ₱57.00
Corn starch 1kg ₱90.00

26
Total (Direct Materials) ₱ 398.20

INDIRECT MATERIALS

PACKAGING

MATERIAL

Printable Sticker Paper 200 pcs ₱360.00

Packaging 1 pack ₱132.00

Total (Indirect Materials) ₱492.00

Total (Direct Materials & Indirect ₱ 890.2

Materials)
Number Of Units Produced 200

Total Unit Cost Pricing 50% Markup Marginal

cost= 2

Cost per piece: 3.28

Selling Price ₱ 5.00

Cost Mark-
Product Price
per upper
piece piece
GIA’S WHITE
₱ 5.00 ₱ 3.28 ₱ 2.00
CHOCO BAR
Cost Mark-
Product Price
per upper
piece piece
GIA’S WHITE
₱ 5.00 ₱ 3.28 ₱ 2.00
CHOCO BAR

27
Distribution Strategy

The direct method of distributing of the product to its consumer will be used

by the company. This distribution channel will be used by Gia’s Cacao

White Chocolate to reach the market as depicted in the picture below.

Figure 6. Distribution Strategy

Sales Forecast

Table 11. Sales Forecast

2023 2024 2025

Unsatisfied
933,460 1,026,924 1,129,577
Demand
Market share 5.40% 5.40% 5.89%
Production
50,400 55,440 66,528
Capacity
Percentage of
98.6% 98.6% 98.6%
Estimated Sales
Sales in Units
49,694.00 54,663.00 65,597.00

28
 Price 5.00 6.00 7.00

Gross Sales ₱248,470.00 ₱327,978.00 ₱459,179.00

As shown in Table 11, the sales forecast is calculated by multiplying

the projected production capacity by the projected price.

Marketing Budget

Table 12. Marketing Budget

COST Total Cost Tota Total

PARTICULAR Specificatio QUANT
PER 2023 l Cost
S n I TY
UNIT Cos 2025
t
202
4
FLYERS 10 pcs/ P1 2 10 20 -- --
TARPAULIN S ₱100 ₱200.0 ₱200. ₱200.00
2x3 2
(2x3) . 00 0 00
LOAD 20 4 960 960 960
₱1,180.0 ₱1,160. ₱1,160.0
TOTAL
0 00 0

29
 Chapter III

RODUCTION PLAN

This chapter explains the step-by-step process of making the Gia’s

White Choco Bar. In addition, it presents the ingredients, equipment, store,

layout, raw materials, and cost.

Production Process

The production of the Gia’s White Choco Bar business product will take 3

hours to accomplish. The figure below shows the flow of the production.

PURCHASE OF RAW MATERIALS PRODUCTION

SELLING PACKAGE AND SEALING

Figure 7. Production Process

The following ingredients above can make a total of 40 packs all in all.

30
Step-by-Step Process
Below are the steps on how to make the product.

I. Ingredients
Step 1: Prepare the following ingredients:

II. Instructions

Step 2: Roast and mix the cacao beans in 27 minutes

31
Step 3: Peel the cacao beans and then crushed to make powder.

Step 4: Steam in 30 minutes then squeeze to extract the Cocoa.

Step 5: Filter the Cocoa gradually with a tissue to extract the butter,
then place it in a frying pan to begin cooking.

32
Step 6: Combine 1/2 cup cornstarch, 2 cans condensed milk, 350
grams powdered milk, and a pinch of salt in a frying pan over low
heat.

Step 7: Weighed in at 18 grams, placed in a silicon mold, and

allowed to harden for 24 hours.

Step 8: For packing, the food is wrapped in foil and then

wrapped in paper
and made this available for sale.

33
Property Plant and Equipment
Presented in Table 13 below is the Property, Plant, and equipment that will

be used in the business. There are only three (3) major equipment that will

satisfy the production of the business

Table 13. Property, Plant, and Equipment, and its Cost

Particulars Unit cost Quantity Total Cost

PRODUCT COSTS
Digital Weighing ₱250.00 1 ₱250.00
Scale
Store Fixtures ₱1,500.00 1 ₱1,500.00
Gas Stove ₱500.00 1 ₱500.00
TOTAL P2,250.00

Depreciation of Property, Plant, and Equipment

Presented in Table 14 are the Depreciation property, plants & equipment,

and estimated useful life. The proponents consider useful life based on the

observation of the said equipment.

Table 14. Schedule of Depreciation

DEPRECIATION EXPENSE
PPE COST USEFUL Total Total
Total Cost
LIFE Cost Cost
2021
2022 2023
PRODUCT COSTS
DIGITAL
₱250.00 10 ₱25.00 ₱25.00 ₱25.00
WEIGHING SCALE
STORE FIXTURES ₱1,500.00 5 ₱300.00 ₱300.00 ₱300.00
Gas Stove ₱500.00 5 ₱100.00 ₱100.00 ₱100.00

34
 TOTAL DEPRECIATION
₱425.00 ₱425.00 ₱425.00
EXPENSE( PRODUCT COST)
*Depreciation=Cost-Residual Value (0)/Estimated Life
Repairs and Maintenance
Table 15 illustrated the Repair and Maintenance cost every year. The

proponents assumed that ten percent (10%) of the cost is allocated for

repairs and maintenance.

Table 15. Repairs and Maintenance

Year Total cost

2022
₱ 237.50
2023 ₱ 237.50
2024 ₱ 237.50

Factory Equipment

Table 16 lists the store equipment, considering their relative prices based on

interviews at the nearest store where the items are available. The table also

shows the quantities needed for production.

Table 16. Sources of Equipment

Equipment Specifications Purchase Name Of Terms Of

Price/Est. Supplier Purchase
Market
Or If
Value
Donor Applicable
Digital Mettler ₱250.00 Shopee Cash
Weighing
Scale

35
 STORE Public Cash
- ₱1,500.00
FIXTURES Market
Gas stove ₱500.00 Shopee Cash

Factory/Store Layout
The business is operated on a small parcel of space where a modified stall

of a kiosk-type display will be made. Presented in the table below is figure

of the front and side views of the said proposed kiosk.

A. Floor Plan

Figure 16 Floor Plan

36
 B. Front Perspective

Figure 17 Front Perspective

Rent/Lease Expense
The proposed business will not rent a commercial space but will instead have a

kiosk-type display, for which a special tariff will be paid. Table 17 shows the

monthly and annual expenses for this.

Table 17. Rent/Lease Expenses

Rate Total Number of 2023 2024 2025

months
₱1000 ₱1000 ₱12 ₱12,000 ₱12,720 ₱13,483

37
Raw Materials and their Cost

Table 18 shows the raw materials and their cost. Raw materials, also known as

ingredients for this particular business, are classified into two types: direct and

indirect.

Table 18. Raw Materials

No.
Quantit Unit of
Raw of UNIT Total Total Cost
y ( in a Measureme
Material week COS Cost Per 2023
week) nt
s s per T Month
mont
h
Butte KGS 4 ₱150.00 ₱2,400.0 ₱28,800.0
r 4 0 0
Caca
o
Cowbell pcs 4 76.2 3,048.00 ₱36,576.0
Condens 10 0 0
e
Salt 2 KGS 4 25.0 200.00 ₱2,400.00
0
Alaska pcs 4 57.0 2,052.00 ₱24,624.0
Powdere 9 0 0
d Milk
Corn KGS 4 90.0 720.00 ₱8,640.00
starch 2
0
Total ₱8,420.0 ₱101,040.00
0

38
Raw Materials Availability.
Table 19 explains that classification refers to materials used in the

production process and whether they will be used as direct or indirect material.

Table 19. Raw Materials Availability

Raw Materials Purchase Name Of Terms Of

Purchase
Price / Est. Supplier
Market (If applicable)
Value
Butter Cacao ₱120.0 Public Market Cash
0
Cowbell Polinar store Cash
₱76.20
Condense
Salt ₱5.00 Polinar store Cash
Alaska Powdered Polinar store Cash
₱57.00
Milk
Corn starch ₱5.00 Polinar store Cash
Printable Sticker Shopee Cash
₱360.0
Paper 0

Packaging ₱132.0 Shopee Cash

0

Inventory Management

The management of the planned business will conduct a monthly inventory of its

equipment, products, and raw materials. Additionally, we monitor the production

process to ensure even higher product quality, and we perform a monthly product

inventory. This inventory will be reviewed regularly by the proponents and

adjusted for expansion and seasonal demand.

39
Utilities Expense

The proponents of the proposed business determine two parts of utilities to

be paid. Table 20 below presented the utility expenses intended for product

and period cost.

Table 20. Utilities Expenses

Particulars Source Basis Rate Total (per Total (per

month) year)

Period Cost

Electricity Kilowatt ₱400 ₱400 ₱4,800

Nordeco per Hour
Water Random ₱300 ₱300 ₱3,600
Water Per
Refiller Container
Total ₱8,400

40
Cost of Labor

Table 21 presented the direct labor cost which consists of salary, benefits,

and required pay to personnel involved in the production process.

Table 21. Cost of Labor

Position No. Of Rate Per No. Of Wage Per Annual

Employee Day Working Month Cost Of
Days Per Wages
Month
Salaries- 1 ₱250.00 21 ₱5,250.00 ₱63,000.00
Production
Worker
TOTAL ₱63,000.00

Labor Availability

A college degree or other higher educational background, such as a

baccalaureate or master's degree, is not necessary for the workforce that the firm

needs. The company's management simply requires individuals who are reliable,

hardworking, eager to learn, and of legal working age. This will make it easier for

local residents who are still in school to earn money by working at the company.

41
Other Factory Overhead

Quality Control
The work processes and other necessary preparations are improved

to ensure that the products are of high quality. In order to identify errors in

operational outputs, quality control include inspecting the production

process, training for the staff, setting benchmarks for product quality, and

product testing.

Innovation.

The proponents gather information on how to make the products more

appealing and develop ideas for combining them on one plate to improve the

efficiency and profitability of the business's products and services.

Value Added Product (for Agricultural Products).

The company will use paper aluminum, which is less expensive,

recyclable, and easier to open than paper or bottles. The proponents saw this as

adding value to the product, as it became a competitive advantage for the firm to

prosper and because the product is the first on the market.

Cost of Production

The cost of labor, including benefits and the distribution of 13th

month pay, as well as the identification of factory overheads, are all

included in the production cost of the business. These costs can be direct

or indirect.

42
Production Cost

Table 22. Production Cost

Particulars Year 1 Year 2 Year 3

Direct Material ₱101,040.00 ₱111,144.00 ₱133,372.80

Direct Labor 63,000.00 66,150.00 69,457.50

Factory 9,065.00 10,922.00 11,468.10

Overhead

Total ₱173,105.00 ₱188,216.00 ₱214,298.40

43
 CHAPTER IV

ORGANIZATION AND MANAGEMENT PLAN

This chapter presents the form of business, the organizational

structure, the staffing requirements, pre-operating activities and expenses,

and the administrative cost of the business.

Form of Business

Gia's White Choco Bar "Cacao White Chocolate" will be set up as a sole

proprietorship, with Donna S. Hernali as the sole owner and operator,

giving her total control over the company. All aspects of the business,

including finances, marketing, and production, will be under the complete

control of the owner.

Some of the important documents that must be processed in order to

register and get a business permit Business are Name Registration

Certificate, Tax Identification Number (TIN), Mayor's/Barangay's Business

Permit, Barangay Micro Business Enterprise, and FDA/ECC (Environmental

Compliance Certificate) .

44
Organizational Structure

The manager of the proposed company, who is also the cashier and owner

of the company, is in charge of the management. The production team,

right down to his or her job, is in charge of making the product.

Manager/Cashier

Production Staff

Figure 18. Organizational Structure

Business Experience and Qualification of the Entrepreneur

The company will be owned and operated by Donna S. Hernali, a current

BS Entrepreneurship student at Davao de Oro State College (DDOSC).

She has also worked as a clerk in the past and is computer literate. In order

to handle her cacao business, she learned management, leadership, and

planning skills as she pursued her education.

Qualification of Personnel

Table 23 shows the qualification of personnel assigned in the administrative

section of the proposed business. The manager who is also the owner of

the business will also be the company’s cashier.

45
Position Qualification Responsibility Salary

Responsibility

Manager/Cashier A graduate of any Responsible and P 200/Month

business-related liable for all

course or have operations at the

experience in store.

dealing or handling

business.

Production staff At least on high Responsible for P 250/Month

school graduate or production and

college with basic manufacturing of

knowledge of the product, the

Cacao choco bar one who usually

processing monitor the

outcome and

availability of

ensuring enough

and complete for

the production.

46
Office Layout

The company's office is connected to the outlet shop and the manufacturing

facility to reduce rent costs. It is located in Purok 1, Barangay Cabinuangan, New

Bataan, Davao de Oro, at the New Bataan Public Market. A corporate office is a

crucial area for storing and managing documents.

Office Furniture and Fixtures

Office furniture and Fixture are important things in running the office.

Presented in Table 24 are furniture needed in the selling activities.

Table 24. Proposed Office Equipment

Equipment Specifications Qty Purchase Name Of Terms Of

Price/Est. Supplier Purchase
Market
Or If
Value
Donor Applicable
Tables Plastic 2 ₱450.00 Sally Cash
Store/Public
Market

47
 Chairs Monoblock 2 ₱200.00 Sally Cash
Store/Public
Market

Depreciation of Furniture and Fixtures

Presented in Table 25 below is the schedule of the depreciation of furniture

and fixture that has a big part in the selling activities.

Table 25. Schedule of Depreciation of Office Equipment

Particulars Total Cost Estimated Depreciation

Useful Life
Year 1 Year 2 Year 3
Tables ₱900.00 5 ₱180.00 ₱180.00 ₱180.00
Chairs ₱400.00 3 ₱133.33 ₱133.33 ₱133.33
Total ₱313.33 ₱313.33 ₱313.33

Supplies Expenses

In Table 26, supplies expenses are divided into two categories: office supplies

and cleaning supplies. Office supplies are considered outright expenses under

the materiality principle.

Table 26: Supplies Expense

Particulars Quantity Unit Total Cost

Cost
Office Supplies
Calculator 1 150 150
Ball pen 2 20 20
Journal 1 18 18
Notebook 1 20 20

48
 Total 208
Kitchen Supplies
Apron 2 30.00 ₱60.00
Chopping board 1 50.00 ₱50.00
Hairnet 2 17.50 ₱35.00
Gloves 1 50.00 ₱50.00
Mask 1 50.00 ₱50.00
Knife 1 45.00 ₱45.00
Ladle 1 15.00 ₱15.00
Mixing Bowl 1 65.00 ₱65.00
Steamer 1 120.00 ₱1,440.00
broom 1 30.00 ₱360.00
Dishwashing paste 6 7.00 ₱42.00
Steel wool 2 10.00 ₱20.00
Dustpan 1 50.00 ₱50.00
Total ₱2,282.00

Pre-operating Activities and Expenses

Table 27 below illustrated the pre-operating activities which are identified

and allocated with the cost to be incurred prior to the implementation of the

proposed business.

Table 27: Pre-Operating Activities and Expenses

Particulars 2023
Permits and Licenses
1,661.00
Office Supplies
208.00
TOTAL
1,869.00

49
 CHAPTER V

FINANCIAL PLAN

This section of the business plan will discuss the source of the venture's

initial investment and its financial requirements. It will also state the projection of

financial data to prepare projected financial statements, such as a projected

income statement, projected balance sheet, projected cash flows, break-even

point (BEP), return on investment (ROI), financial ratios and analysis, and project

feasibility.

Capitalization Requirement

Upon the capitalization of the proposed business, the business will have an initial

investment of ₱30,000.00 that will be used to operate and manage the business.

Total Project Cost

Table 28. Total Project Cost

GIA’S WHITE CHOCO BAR

Start-up Cost and
Capitalization For
the Period Ended
20x1-20x3
CAPITAL
REQUIREMENT

PRE-OPERATING EXPENSES ₱1,869.00

CAPITAL ASSET 3,550.00

PRODUCTION COST( 1
MONTH) 14,425.42
TOTAL INITIAL
PROJECTED COST ₱19,844.42
REMAINING CASH ON ₱10,155.58
HAND

CAPITAL INVESTED ₱30,000.00

50
Major Assumptions

1. Sales Sales are based on full production capacity. To

determine the selling price

2. Production Operates at full capacity

3. Selling price Selling Price will be inceased by 1 peso annually.
4. Inventories Raw materials Inventory 20% based on the total
materials available for use
5. Factory Total factory overhead will be computed and
overhead allocated based on the number of units produced.
6. Direct labor Total direct labor will be computed and allocated
based on the number of units produced.
7. Salaries and COOK-Product cost
Wages 5,250.00
Cashier- Period costs
4,200.00
Increase per year
5%
8. Depreciation Straight Line Method; useful life estimated by
Expense proponents Depreciation PPE used in production
charged to Overhead
9. Repairs and Percentage on PPE
Maintenance 5%
and charged as expenses
10. Permits and Local and BIR Registration forms part of the pre-
licenses operating expenses
Percentage Tax of Gross Sales
3%
11. Withdrawals There will be 5,000 pesos withdrawals every year
12. Utilities 2% of increase per year
expense
% of increase
per year
13. Kitchen 5% of increase per year
supplies
expense
14. Rent Expenses 6% of increase per year

Product Name Cost per Mark Up Selling Price

piece
GIA’S WHITE ₱3.28 ₱2.00 ₱5.00
CHOCO BAR

51
 Projected Income Statement

A. Income Statement

GIA’S WHITE CHOCO BAR

Statement of Financial Performance
For the Projected Years 2023,2024, and
2025
N 2023 2024 2025
ot
e
Sales 1 ₱248,47 ₱327,97 ₱459,17
0.00 8.00 9.00
Less: Cost of Sales 2 152,897. 182,153. 208,640.
00 60 16
Gross Profit ₱95,573. ₱145,82 ₱250,53
00 4.40 8.84
Less: Operating
Expenses
Selling Expenses
Marketing Expenses 3 1,180.00 1,160.00 1,160.00
Salaries and Wages 4 50,400.0 52,920.0 55,566.0
0 0 0
Total Selling Expenses 51,580.0 54,080.0 56,726.0
0 0 0

Administrative Expenses
Depreciation Expense- 5 ₱738.33 ₱738.33 ₱738.33
PERIOD
Repairs and Maintenance 6 237.50 237.50 237.50
Kitchen supplies expense 7 2,282.00 2,396.10 2,515.91
Permits and Licenses 8 1,661.00 1,195.83 1,231.21
Rent Expense 9 12,000.0 12,720.0 13,483.0
0 0 0
Utilities Expense 10 8,400.00 8,568.00 8,739.36
Office Supplies Expense 11 2,496.00 ₱2,496.0 ₱2,496.0
0 0
Total Administrative 27,814.8 28,351.7 29,441.3
Expenses 3 6 1
TOTAL OPERATING 79,394.8 82,431.7 86,167.3
EXPENSES 3 6 1
Income Before Tax ₱16,178. ₱63,392. ₱164,37
17 64 1.53
Provision Percentage Tax 12 7,454.10 9,839.34 13,775.3
7
NET INCOME ₱8,724.0 ₱53,553. ₱150,59
7 30 6.16
Table 29. Projected Statement of Financial Performance

52
 B. Cash Flow Statement

GIA’S WHITE CHOCO BAR

Statement of Cash Flows
For the Projected Years 2023,2024,
and 2025
Statement of Cash Flows
Cash Flows from Operating 2023 2024 2025
Activities
Net Income ₱8,724. ₱53,55 ₱150,59
07 3.30 6.16
Depreciation 738.33 738.33 738.33
Increase/Decrease in (20,208 (6,062. (5,658.2
Inventories .00) 40) 4)
Increase/Decrease in Liabilities ₱621.1 ₱198.7 ₱328.00
8 7
Net Cash flows from operating (10,124 48,428. 146,004.
activities .43) 00 25
Cash Flows from Investing
Activities
Equipment Acquisition (3,550.
00)
Net Cash flows from investing (3,550. - -
activities 00)
Cash Flows from Financing - - -
Activities
Initial investment 19,844.
42
Withdrawals (5,000. (5,000. (5,000.0
00) 00) 0)
Net Cash flows from financing 14,844. (5,000. (5,000.0
activities 42 00) 0)
Net Cash Flows 1,170.0 43,428. 141,004.
0 00 25
Beginning Cash Balance 10,155. 11,325. 54,753.5
58 58 8
Ending Cash Balance ₱11,32 ₱54,75 ₱195,75
5.58 3.58 7.83
Table 30. Projected Statement of Cash Flow

53
 C. Changes in Equity Statement

GIA’S WHITE CHOCO BAR

Statement of Changes in Owner's Equity
For the Projected Years 2023,2024, and
2025
Statement of Changes in Equity
2023 2024 2025
Capital (Beg.) ₱30,00 ₱33,72 ₱82,277.
0.00 4.07 37
Add: Net Income 8,724.0 53,553. 150,596.
7 30 16
Total 38,724. 87,277. 232,873.
07 37 53
Less: (5,000. (5,000. (5,000.0
WITHDRAWAL 00) 00) 0)
Capital (End) ₱33,72 ₱82,27 ₱227,87
4.07 7.37 3.53
Table 31. Projected Statement of Changes in Equity

54
 Projected Balance Statement

GIA’S WHITE CHOCO BAR

Statement of Balance Statement
For the Projected Years
2023,2024, and 2025
Statement of Financial
Position
ASSETS 2023 2024 2025
Current Assets
Cash ₱11,32 ₱54,75 ₱195,75
5.58 3.58 7.83
Raw materials Inventory 20,208. 26,270. 31,928.6
00 40 4
Total Current Assets ₱31,53 ₱81,02 ₱227,68
3.58 3.98 6.47
Noncurrent Assets

Property and equipment 2,811.6 2,073.3 1,335.01

(net) 7 4
Total Noncurrent Assets 2,811.6 2,073.3 1,335.01
7 4
TOTAL ASSETS ₱34,34 ₱83,09 ₱229,02
5.25 7.32 1.48
LIABILITIES AND
OWNER'S
EQUITY
LIABILITIES
Current Liabilities
Accrued Taxes 621.18 819.95 1,147.95
Total Current Liabilities 621.18 819.95 1,147.95
TOTAL LIABILITIES ₱621.1 ₱819.9 ₱1,147.9
8 5 5
OWNER'S EQUITY
Capital, Ending ₱33,72 ₱82,27 ₱227,87
4.07 7.37 3.53
TOTAL LIABILITIES ₱34,34 ₱83,09 ₱229,02
AND OWNER'S 5.25 7.32 1.48
EQUITY
Table 32. Projected Statement of Balance Statement

55
 Notes to Financial Statements

For the Projected Years 2023, 2024, and 2025

NOTE 1 Total Sales
RODUC P P P
NAME Unit 2023 Units 2024 Units 2025
s

GIA’S
WHIT
E
49,69 5 ₱248,470.0 54,66 6 ₱327,978.0 65,59 7 ₱459,179.0
CHOC
4 0 3 0 7 0
O
BAR

NOTE 2 Statement of Cost of Goods Sold

GIA’S WHITE CHOCO BAR

Statement of Cost of Goods
Sold For the Projected
Years 2023-2025
2023 2024 2025
Raw Materials Inventory, ₱0.00 ₱20,208.00 ₱26,270.40
beginning
Add: Purchases direct materials ₱101,040.0 ₱111,144.0 ₱133,372.8
0 0 0
Total Direct Materials Available 101,040.00 131,352.00 159,643.20
for use
Less: Raw Materials Inventory, 20,208.00 26,270.40 31,928.64
ending
Total Direct Materials Used 80,832.00 105,081.60 127,714.56
Direct Labor (Cook) 63,000.00 66,150.00 69,457.50
Overhead ₱9,065.00 10,922.00 11,468.10
Total Cost of Goods 152,897.00 182,153.60 208,640.16
Manufactured & Sold

56
 NOTE 3 Marketing Expenses

COS Total Tota Total

PARTICULAR Specificatio QUANT
T Cost l Cost
S n I TY
PER 2023 Cost 2025
UNIT 2024
FLYERS 10 pcs/ P1 2 10 20 -- --
TARPAULIN S ₱100 ₱200.0 0 ₱200.0 ₱200.00
2x3 2
(2x3) . 00 0
LOAD 20 4 960 960 960
₱1,180.0 ₱1,160. ₱1,160.0
TOTAL
0 00 0
NOTE 4 Salary and Wages (5% increase rate)

NO. OF
WA
RAT WORKI GE
POSITI E NG Total Total Cost Total Cost
PER
ON PER DAYS MON Cost 2022 2023
DA PER 2021
MONT TH
Y
H
COOK 250 21 5,250 63,000.00 66,150.00 69,457.50
TOTAL
DIRACT
LABOR
- ₱63,000.00 ₱66,150.00 ₱69,457.50
PRODU
CT
COST
S

Cashier 200 21 4,200 50,400.00 52,920.00 55,566.00

TOTAL
LABOR
-
PERIOD
COSTS 50,400.00 52,920.00 55,566.00

LABO
R ₱113,400.00 ₱119,070.00 ₱125,023.50
COSTS

57
 NOTE 5 Depreciation Expense

DEPRECIATION EXPENSE
COST USEFUL Total Total
PPE Total Cost
LIFE Cost Cost
2021
2022 2023
PRODUCT COSTS
DIGITAL
₱250.00 10 ₱25.00 ₱25.00 ₱25.00
WEIGHING SCALE
STORE FIXTURES ₱1,500.00 5 ₱300.00 ₱300.00 ₱300.00
Gas Stove ₱500.00 5 ₱100.00 ₱100.00 ₱100.00
TOTAL DEPRECIATION
₱425.00 ₱425.00 ₱425.0
EXPENSE( PRODUCT COST)
0

Particulars Total Cost Estimated Depreciation

Useful Life
Year 1 Year 2 Year 3
Tables ₱900.00 5 ₱180.00 ₱180.00 ₱180.00
Chairs ₱400.00 3 ₱133.33 ₱133.33 ₱133.33
Total ₱313.33 ₱313.33 ₱313.33

Particulars Depreciation
Year 1 Year 2 Year 3
PPE ₱425.00 ₱425.00 ₱425.00
Office Equipmen8 ₱313.33 ₱313.33 ₱313.33

TOTAL ₱738.33 ₱738.33 ₱738.33

Note 6 Repair and Maintenance

Year Total cost

58
 2022
₱ 237.50
2023 ₱ 237.50
2024 ₱ 237.50

NOTE 7 Kitchen Supplies Expense (5% of increase per year)

Total Total Total

Specifica Cost Cost Cost
Costs Qua Unit
tions n Cos 2021 2022 2023
tity t
KITCHEN
SUPPLIES
EXPENSE
S
plain, ₱60.00 ₱63.00 ₱66.15
Apron 2 30.00
cotton
₱50.00 ₱52.50 ₱55.13
Chopping board plastic 1 50.00
₱35.00 ₱36.75 ₱38.59
Hairnet black 2 17.50
plastic/
₱50.00 ₱52.50 ₱55.13
Gloves cellopha 50.00
ne 1
₱50.00 ₱52.50 ₱55.13
Mask cotton 1 50.00
stainless ₱45.00 ₱47.25 ₱49.61
Knife set 1 45.00
₱15.00 ₱15.75 ₱16.54
Ladle stainless 1 15.00
₱65.00 ₱68.25 ₱71.66
Mixing Bowl stainless 1 65.00
₱1,440.0 ₱1,512.0 ₱1,58
Steamer stainless 1 120.00 0 0 7.60
₱360.00 ₱378.00 ₱396.90
Broom stick 1 30.00
smart ₱42.00 ₱44.10 ₱46.31
Dishwashing paste 6 7.00
paste
scotch ₱20.00 ₱21.00 ₱22.05
Steel wool brite 2 10.00
₱50.00 ₱52.50 ₱55.13
Dustpan plastic 1 50.00
Total KITCHEN ₱2,282.0 ₱2,396.1 ₱2,51
SUPPLIES 0 0 5.91
EXPENSES

59
Note 8 Permits and Licenses

Permits and Licenses (specify)

Particula 2023
rs
Local Tax

Cedula 105

Barangay Clearance 100

Police Clearance 100

MPDC Office 100

MENRO 100

MHO 500

MEO 100

Fire Safety Inspection 6

DTI 50

total Local Tax ₱1,161.

00
BIR Registration ₱500

TOTAL ₱1,661.
00

NOTE 9 Rent Expense

Rate Total Number of 2023 2024 2025
months
₱1000 ₱1000 ₱12 ₱12,000 ₱12,720 ₱13,483
There is a 6 percent increase every year

60
NOTE 10 Utilities Expense

Total Total Total

UTILITIES
Cost Cost Cost
EXPENSES
MONTHLY 2023 2024 2025
ELECTRICITY 400 4800 4896 4993.92
WATER 300 3600 3672 3745.44
₱8,400.00 ₱8,568.00 ₱8,739.36
There is a 2 percent increase every year

Note 11 Office Supplies

Particulars Quantity Unit Total Cost

Cost
Office Supplies
Calculator 1 150 150
Ball pen 2 20 20
Journal 1 18 18
Notebook 1 20 20
Total 208

Note 12 Provision Percentage Tax

PRODUCT NAME 2023 2024 2025

GIA’S WHITE CHOCO ₱248,470.00 ₱327,978.00 ₱459,179.00

BAR
Provision Percentage
Tax 7,454.10 9,839.34 13,775.37
Percentage Tax of Gross Sales 3%

61
Breakeven Point (BEP)

The breakeven point (BEP) is essential for GIA’S WHITE CHOCOLATE

BAR because it helps determine the sales volume needed to cover costs

and make a profit. It informs pricing decisions, risk assessment, financial

planning, and performance evaluation. Understanding the BEP is crucial for

assessing profitability and making informed business decisions.

Breakeven Point Analysis

Table 34. Fixed Cost

Schedule 1: Fixed Costs 2023 2024 2025

Marketing expenses 51,580.00 54,080.00 56,726.00
Salaries and Wages 50,400.00 52,920.00 55,566.00
Depreciation Expense-PERIOD 738.33 738.33 738.33
Utilities Expense 8,400.00 8,568.00 8,739.36
Repairs and Maintenance 237.50 237.50 237.50
Total 111,355.83 116,543.83 122,007.19

Table 35. Variable Cost

Schedule 2: Variable Costs 2023 2024 2025

Kitchen supplies expense 2,282.00 2,396.10 2,515.91
Permits and Licenses 1,661.00 1,710.83 1,762.15
Provision Percentage Tax 7,454.10 8,445.43 10,143.59
Office Supplies Expense 2,496.00 2,496.00 2,496.00
Direct Materials 50,520.00 80,832.00 107,102.40
Direct Labor 63,000.00 66,150.00 69,457.50
Tota 127,413.10 162,030.36 193,477.55
l

Table 36. Units Produced

Product name 2023 2024 2025

Gia’s White Chocolate Bar 49,694.0 54,663.00 65,597.00
0

62
 Units Produced 49,694.00 54,663.00 65,597.00

Table 37. Allocated Fixed Costs

ALLOCATED FIXED COSTS

PRODUCT NAME 2023 2024 202

5

GIA’S WHITE CHOCO 111,355.83 116,543.83 122,007.19

BAR
FIXED COST 111,355.83 116,543.83 122,007.19

Table 38. Allocated Variable Cost

ALLOCATED VARIABLE COSTS

PRODUCT NAME 2023 2024 202
5
GIA’S WHITE CHOCO 127,413.10 162,030.36 193,477.55
BAR
VARIABLE COST 127,413.10 162,030.36 193,477.55

Table 39. Sales Price Per Unit

SALES PRICE PER UNIT

PRODUCT NAME 202 2024 202
3 5
GIA’S WHITE CHOCO ₱5 ₱5 ₱5
BAR

Table 40. Contribution Margin Per Unit

CONTIBUTION MARGIN PER UNIT

PRODUCT NAME 202 202 202
3 4 5
GIA’S WHITE CHOCO ₱3 ₱2 ₱2
BAR

63
Breakeven Point (In Units)
Table 41. Breakeven Point (In Units) for 2023

ALLOCATE CONTIB BREA BREA

D FIXED U TION K K
EXPENSES MARGIN EVEN EVEN
PER POINT POINT
UNIT ( IN ( SALE
UNITS) S)
PRODUCT NAME 2023
GIA’S WHITE CHOCO ₱111,355.83 ₱3 43028 ₱221,67
BAR 7.79
TOTAL ₱111,355.83

Table 42. Breakeven Point (In Units) for 2024

ALLOCATE CONTIB BREA BREA

D FIXED U TION K K
EXPENSES MARGIN EVEN EVEN
PER POINT POINT
UNIT ( IN ( SALE
UNITS) S)
PRODUCT NAME 2024
GIA’S WHITE CHOCO ₱116,543.83 ₱2 54760 ₱278,86
BAR 2
₱116,543.83

Table 43. Breakeven Point (In Units) for 2025

ALLOCAT CONTIB BREA BREA

E D FIXED U TION K K
EXPENSE MARGIN EVEN EVEN
S PER POINT POINT
UNIT ( IN ( SALE
UNITS) S)
PRODUCT NAME 2025
GIA’S WHITE CHOCO ₱122,007.1 ₱2 64819 ₱313,18
BAR 9 9.92
₱122,007.1
9

64
Return On Investment (ROI)

The Return on Investment (ROI) is a financial metric that helps GIA’S

WHITE CHOCOLATE BAR to measure the profitability and efficiency of its

investment.

ROI = Net income / Cost of investment x 100

Wherein: Net Income ₱8,724.07, Cost of investment = ₱30,000.00

Therefore:

ROI = ₱8,724.07 / ₱30,000.00 x 100

ROI = 29.08 %
The Return on Investment (ROI) for GIA’S WHITE CHOCOLATE BAR in

year one (2023) is calculated to be 29.08%. This means that for every ₱1

invested in the business, the net income earned is ₱29.08%. It displays a

positive return, implying that the business was lucrative and yielded

considerable profits relative to its initial investment.

Payback period

Payback period = Initial Investment/Cash Flow

The payback period is an important metric for GIA’S WHITE

CHOCOLATE BAR as it provides insight into the time required to

recover the initial investment.

Wherein: Initial Investment = ₱30,000.00, Cash Flow = ₱11,325.58

Therefore:

Payback Period = ₱30,000.00, / ₱11,325.58

65
Payback Period = 2.65 Year

In the case of GIA’S WHITE CHOCOLATE BAR, the payback period is

around 0.49 years, or approximately 28.56 months. In general, a shorter

payback period signifies a faster return on investment and lesser risk. This

data assists firms in determining the feasibility and profitability of a project

and making sound investment decisions. However, for a more complete

examination, other financial criteria should be considered in addition to the

payback period.

66
Financial Ratios and Analysis Profitability Ratio

The Profit Margin Ratio is a financial ratio that measures the profitability of

NB Pride Gourmet Pastil by comparing its gross profit to its net sales. It

indicates the portion of each sales peso that represents GIA’S WHITE

CHOCOLATE BAR profit after deducting the cost of goods sold.

Table 44. Gross Profit Margin Ratio

Gross Profit Margin Ratio

Gross Profit Margin
Gross Profit Net Sales
Ratio
2023 ₱95,573.00 152897.00 0.63%
2024 ₱145,824.40 182153.60 0.80%
2025 ₱250,538.84 208640.16 1.20%

Table 45. Operating Profit Margin Ratio

Operating Profit Margin Ratio

Operating Profit Margin
Operating Profit Net Sales
Ratio
2023 79,394.83 152897.00 0.52%
2024 82,431.76 182153.60 0.45%
2025 86,167.31 208640.16 0.41%

Table 46. Net Profit Margin Ratio

Net Profit Margin Ratio

Net Profit Net Sales Net Profit Margin Ratio
2023 ₱8,724.07 152897.00 0.06%
2024 ₱53,553.30 182153.60 0.29%
2025 ₱150,596.16 208640.16 0.72%

67
Horizontal Analysis of the Projected Financial Performance of GIA’S WHITE
CHOCO BAR

GIA’S WHITE CHOCO BAR

Statement of Financial Performance Horizontal Analysis
For the Projected Years 2023,2024, and 2025
STATEMENT OF FINANCIAL PERFORMANCE HORIZONTAL
ANALYSIS
2023 2024 2025 2024 2025

Sales
₱248,470.0 ₱327,978.00 ₱459,179.00 32% 40%
0

Less: Cost of Sales

19.13% 14.54%
152897.00 182153.60 208640.16

Gross Profit
₱95,573.00 ₱145,824.40 ₱250,538.84 34% 71.81%

Less: Operating
Expenses
Selling Expenses
Marketing Expenses 1180.00 1160.00 1160.00 1.69% 0%
Salaries and Wages 50,400.00 52,920.00 55,566.00 5% 5%
Total Selling Expenses 51,580.00 54,080.00 56,726.00 3% 4.89%
Administrative Expenses
Depreciation Expense- ₱738.33 ₱738.33 ₱738.33 0% 0%
PERIOD
Repairs and 237.50 237.50 237.50 0% 0%
Maintenance
Kitchen supplies 2,282.00 2,396.10 2,515.91 5% 5.25%
expense
Permits and Licenses 1,661.00 1,195.83 1,231.21 28.01% 2.96%
Provision Percentage 7,454.10 9,839.34 13,775.37 32% 40%
Tax
Rent Expense 12,000.00 12,720.00 13,483.00 6% 6%
Utilities Expense 8400 8568 8739.36 2% 2%
Office Supplies 2,496.00 2,496.00 2,496.00 0% 0%
Expense
Total Administrative
Expenses 35,268.93 38,191.10 43,216.68 8.29% 13.16%
TOTAL OPERATING 86,848.93 92,271.10 99,942.68 6.24% 8.31%
EXPENSES
NET INCOME
₱8,724.07 ₱53,553.30 ₱150,596.16 513.86 181.21
% %

Table 47. Horizontal Analysis of Projected Statement of Financial Performance

68
Horizontal Analysis of the Projected Statement of Financial Position of
GIA’S WHITE CHOCO BAR

GIA’S WHITE CHOCO BAR

Statement of Financial Position Horizontal
Analysis
For the Projected Years 2023,2024, and
2025
STATEMENT OF FINANCIAL POSITION HORIZONTAL
ANALYSIS
ASSETS
Current Assets 2023 2024 2025 2024 2025
Cash 11325.58 54,75 195,757. 383. 257.5
3.58 83 45% 3%
Raw Materials 20,208.0 26,27 31,928.6 30% 21.54
Inventory 0 0.40 4 %
Total Current 31,533.5 81,02 227,686. 61% 181.0
Assets 8 3.98 47 1%
Noncurrent
Assets
Property and 2811.67 2073. 1335.01 26.26 35.61
equipment (net) 34 % %
Total Noncurrent 2,811.67 2,073. 1,335.01 26.2 35.61%
Assets 34 6%
TOTAL Assets 34,345.2 83,09 229,021. 141.9 175.6
5 7.32 48 5% 1%
LIABILITIES AND OWNER'S EQUITY
LIABILITIES
Current Liabilities
Accrued Taxes 621.18 819.9 1147.95 32% 40%
5
Total Current 621.18 819.9 1,147.95 32% 40%
Liabilities 5
TOTAL 621.18 819.9 1,147.95 32% 40%
Liabilities 5
OWNER'S EQUITY
Capital, Ending 33724.17 82277 227873. 143. 176.9
.37 53 97% 6%
TOTAL
Liabilities and 34,345.3 83,09 229,021. 141. 175.6
Owner's Equity 5 7.32 48 95% 1%

Table 48. Horizontal Analysis of Projected Statement of Financial Position

69
Horizontal Analysis of the Projected Statement of Cash Flow of GIA’S
WHITE CHOCO BAR

GIA’S WHITE CHOCO BAR

Statement of Cash Flows
For the Projected Years 2023,2024,
and 2025
Statement of Cash Flows
Cash Flows from 2023 2024 2025 2024 2024
Operating
Activities
Net Income ₱8,724.0 ₱53,553. ₱150,596 513.86 181.2
7 30 .16 % 1%
Depreciation 738.33 738.33 738.33 0% 0%
Increase/ (20,208.0 (6,062.40 (5,658.24 70.00 6.67
Decrease in 0) ) ) % %
Inventories
₱621.18 ₱198.77 ₱328.00 68% 65.02
Increase/ %
Decrease in
Liabilities
(10,124.4 48,428.0 146,004. 578.33 201.4
Net Cash flows 3) 0 25 % 9%
from operating
activities
Cash Flows from
Investing Activities
Equip (3,550.00 100% 0%
ment )
Acquis
ition
Net Cash flows (3,550.00 - - 100% 0%
from investing )
activities
Cash Flows from - - -
Financing
Activities
Initial investment 19,844.4
2
Withdrawals (5,000.00 (5,000.00 (5,000.00
) ) )
14,844.4 (5,000.00 (5,000.00 133.68 0%
Net Cash flows 2 ) ) %
from financing
activities
Net Cash Flows 1,170.00 43,428.0 141,004. 3611.8 224.6
0 25 1% 9%
Beginning Cash 10,155.5 11,325.5 54,753.5 11.52 383.4
Balance 8 8 8 % 5%
Ending Cash ₱11,325. ₱54,753. ₱195,757 383.45 257.5
Balance 58 58 .83 % 3%
70
Horizontal Analysis of the Projected Statement of Changes in Equity of
GIA’S WHITE CHOCO BAR

GIA’S WHITE CHOCO BAR

Statement of Changes in Owner's Equity
For the Projected Years 2023,2024, and
2025
Statement of Changes in
Equity
2023 20 2025 2024 2025
24
Capital (Beg.) ₱30,00 ₱33,724. ₱82,277. 12.41 143.9
0.00 07 37 % 7%
Add: Net 8,724.0 53,553.3 150,596. 513.8 181.2
Income 7 0 16 6% 1%
Total 38,724. 87,277.3 232,873. 125.3 166.8
07 7 53 8% 2%
Less: (5,000. (5,000.0 (5,000.0 0% 0%
WITHDRAWAL 00) 0) 0)
Capital (End) ₱33,72 ₱82,277. ₱227,87 143.9 176.9
4.07 37 3.53 7% 6%

Table 50. Horizontal Analysis of the Projected Statement of Changes in Equity

71
Vertical Analysis of the Projected Financial Performance of GIA’S
WHITE CHOCO BAR
GIA’S WHITE CHOCO BAR
Statement of Financial Performance Vertical Analysis
For the Projected Years 2023,2024, and 2025
2023 2024 2025
Sales 100
₱248,470. 100 ₱327,978.0 100% ₱459,179. %
00 % 0 00

Less: Cost of 152897.0 162.5 182153.60 180.0 208640.1 220.0

Sales 0 1% 6% 6 8%
Gross Profit ₱95,573.0 38.4 ₱145,824.4 44.46% ₱250,538. 54.56
0 6% 0 84 %

Less: Operating Expenses

Selling
Expenses
Marketing 1180.00 0.47 1160.00 0.35% 1160.00 0.25
Expenses % %
Salaries and 50,400.00 20.28 52,920.00 16.14 55,566.00 12.1
Wages % % 0%
Total Selling 51,580.00 21% 54,080.00 16% 56,726.00 12%
Expenses
Administrative
Expenses
Depreciatio 738.33 0.30 738.33 0.23% 738.33 0.16
n % %
Expense
PeRI
OD
Repairs and 237.50 0.10 237.50 0.07% 237.50 0.05
Maintenance % %
Kitchen 2,282.00 0.92 2,396.10 0.73% 2,515.91 0.55
supplies % %
expense
Permits and 1,661.00 0.67 1,195.83 0.48% 1,231.21 0.50
Licenses % %
Provision 7,454.10 3.00 9,839.34 3.00% 13,775.37 3.00
Percentage % %
Tax
Rent Expense 12,000.00 4.83 12,720.00 3.88% 13,483.00 2.94
% %
Utilities 8,400.00 3.38 8,568.00 2.61% 8,739.36 1.90
Expense % %
Office Supplies 2,496.00 1.00 2,496.00 0.76% 2,496.00 0.54
Expense % %
Total
Administrative 35,268.93 14.19 38,191.10 11.64 43,216.68 9.41
% % %
Expenses
TOTAL
OPERATING 86,848.93 34.95 92,271.10 28.13 99,942.68 21.77
% % %
EXPENSES

72
 NET INCOME ₱8,724.07 3.5% ₱53,553.30 16% ₱150,596.16 33%

Table 51. Vertical Analysis of Projected Statement of Financial Performance

Vertical Analysis of the Projected Statement of Financial Position of GIA’S

WHITE CHOCO BAR

GIA’S WHITE CHOCO BAR

Statement of Financial Position Vertical
Analysis
For the Projected Years 2023,2024, and
2025
ASSETS 2023 2024 202
5
Cash 11,325.5 33% 54,753.5 66% 195,757. 85%
8 8 83
Raw Materials 20,208.0 59% 26270.4 32% 31928.64 14%
Inventory 0
Total Current Assets 31,533.5 92% 81,023.9 98% 227,686. 99%
8 8 47
Noncurrent Assets
Property and 2811.67 8% 2073.34 2% 1335.01 1%
equipment (net)
Total Noncurrent 2,811.67 8% 2,073.34 2% 1,335.01 1%
Assets
TOTAL Assets 34,345.2 100% 83,097.3 100% 229,021. 100%
5 2 48
LIABILITIES AND OWNER'S EQUITY
LIABILITIES
Current Liabilities
Accrued Taxes 621.18 1.81 819.95 1% 819.95 0.36%
%
621.18 1.81 819.95 1% 819.95 0.36%
Total Current %
Liabilities
TOTAL Liabilities 621.18 1.81 819.95 1% 819.95 0.36%
%
OWNER'S EQUITY
Capital, Ending 33724.1 98.19 82277.3 99.01 227873.5 99.64
7 % 7 % 3 %
TOTAL LIABILITIES 34,345.2 100% 83,097.3 100% 228,693. 100%
AND OWNER'S 5 2 48
EQUITY

Table 52. Vertical Analysis of Projected Statement of Financial Position

73
Vertical Analysis of the Projected Statement of Cash flow of GIA’S
WHITE CHOCO BAR
Table 53. Vertical Analysis of Projected Statement of Cash Flow

GIA’S WHITE CHOCO BAR

Statement of Cash Flows
For the Projected Years 2023,2024, and 2025
Statement of Cash Flows
Cash Flows from 2023 2024 2025
Operating
Activities
Net Income ₱8,724.07 86% ₱53,553.30 111% ₱150,596.16 103%

Depreciation 738.33 7% 738.33 2% 738.33 1%

(20,208.00) 3253% (6,062.40) 3050%(5,658.24) 1725%
Increase/Decrease in
Inventories
Increase/Decrease in ₱621.18 6% ₱198.77 0% ₱328.00 0%
Liabilities
(10,124.43) 100% 48,428.00 100% 146,004.25
Net Cash flows from 100%
operating activities
Cash Flows from Investing
Activities
Equipment Acquisition (3,550.00) 100% 0% 100%

Net Cash flows from (3,550.00) 100% - -

investing
activities
Cash Flows from - - -
Financing
Activities
Initial investment 19,844.42 1.34 0%
0%
Withdrawals (5,000.00) 34% (5,000.00) 0% (5,000.00)
0%
Net Cash flows from 14,844.42 100% (5,000.00) 0% (5,000.00) 0%
financing
activities
Net Cash Flows 1,170.00 10% 43,428.00 79% 141,004.25
72%
Beginning Cash Balance 10,155.58 90% 11,325.58 21% 54,753.58
28%
Ending Cash Balance ₱11,325.58 100% ₱54,753.58 100% ₱195,757.83 100%

74
Vertical Analysis of the Projected Statement of Changes in
Equity of GIA’S WHITE CHOCO BAR
Table 54. Vertical Analysis of Projected Statement of Changes in Equity

GIA’S WHITE CHOCO BAR

Statement of Changes in Owner's Equity
For the Projected Years 2023,2024, and 2025
Statement of Changes in
Equity
2023 2024 2025
Capital (Beg.) ₱30,000. 77% ₱33,724. 39% ₱82,277.3 35%
00 07 7
Add: Net Income 8,724.07 23% 53,553.30 61% 150,596.1 65%
6
Total 38,724.07 100 87,277.37 100 232,873.5 100
% % 3 %
Less: (5,000.00 0% (5,000.00 0% (5,000.00) 0%
WITHDRAWAL ) )
Capital (End) ₱33,724. 100 ₱82,277. 100 ₱227,873. 100
07 % 37 % 53 %

75
 BALANCE SHEET RATIOS: Stability
(Staying Power)
Current
1
Current
81,023.98 Assets 31,533.58 5076% 227,686.47
9882% Current 19834%
819.95 Liabilities 621.18 1,147.95
Quick
2
Cash +
54753.575 Accts. Rec. 11325.575 195757.8276
819.95 6678% Current 1823% 17053%
Liabilities 621.18 1,147.95
Debt-
3 to-
Total
Worth 621.18
819.95 Liabilities 1,147.95
82,277.37 0.9966% 0.5038%
Net Worth 33,724.07 2% 227,873.53

INCOME STATEMENT RATIOS:

Profitability (Earning Power)
Gross
4
Margin
145,824.40 Gross Profit 95,573.00 38% 250,538.84

327,978.00 44% Sales 248,470.00 459,179.00 55%

Net
5 Margin
Net Profit
53553.3 AfterTax 8724.07 150,596.16

327,978.00 16% Sales 248,470.00 4% 459,179.00 33%

ASSET MANAGEMENT RATIOS:

Overall Efficiency Ratios
6

327,978.00 Sales- Sales 248,470.00 788% 459,179.00

405%
to- Total 202%
81,023.98 Assets Assets 31,533.58 227,686.47
Return
7
on
Net Profit
Assets 8,724.07
53,553.30 After Tax 25% 150,596.16
Total
83,097.32 64% Assets 34,345.25 229,021.48 66%
Return
on
8 Invest
ment Net Profit
53553.3 After Tax 8,724.07 29% 150,596.16
179% Initial 502%
30,000.00 Investment 30,000.00 30,000.00

Table 55. Ratio Analysis

76
 PROJECT FEASIBILITY

The project feasibility is based on the financial ratios and statements as

on the Return on Assets, Return Equity Current Ratio computed by Net

income divided revenues, net income divided Owner's Equity, and

Current Assets divided Current Liabilities. As a result, the feasibility of

the business shows high percentage since there is a positive output in

the forecast.

77
 ENVIRONMENTAL AND SOCIAL IMPACT ANALYSIS
The socioeconomic contribution of this study will be advantageous to

both the government and society. This section shows that the company's

goals include improving human wellbeing in addition to just earning a profit.

The three (3) sub- sections that deal with socio-economic study are

displayed in this study. This includes the business's impact on employment,

tax revenue, and other socioeconomic factors.

Employment Contributions

The proposed business creates a working strategy so that staff

members can benefit from its employment opportunities and raise the

employment rate. In order to make worker transactions simple, the

corporation will house local employees in exchange for paying their travel

and lodging expenses.

Contribution to the Government Economy

The Gia's White Chocolate Bar will go through a lot of formalities

before starting its official operations. The business will acquire all the legal

paperwork necessary to support the growth of our economy, and it will be

compelled to pay back the government's tax expenses. Additionally, the

business must follow the government's tight health regulations, particularly

during this outbreak. The government's capacity to fund improvements in

public health, education, and other areas will be significantly impacted by

the amount of taxes that will be collected.

78
Other Socio-Economic Concerns

Gia's White Chocolate Bar is a flexible type of company that provides

opportunities for everyone who wants to launch a similar company. It also aims to

inspire others to use their own originality to achieve their long-term goals.

Because the company wants to make its products accessible to everyone, it has

priced them affordably.

79
 REFERENCES
Olaitan, A., & Bhat, A. (2000). Questionnaires: Definition, Advantages &
Examples. QuestionPro. doi:10.1002/1522-5371(200010)10:5<527::AID-
BES2>3.0.CO;2-O
McCombes, S. (2019, October 10). Descriptive research: Definition, types,
methods & examples. Scribbr. Retrieved from
https://www.scribbr.com/methodology/descriptive-research/ doi:
10.1155/2019/3443842.

80
Appendix A – Certificate of Approval

81
Appendix B – Population of Data In Barangay Cabinuangan

82
83
84
Appendix C – Survey Questionaire

85
86
Appendix D. Certificate of Approval

87
Appendix E. Endorsement

88
Appendix F. Certificate of Exemption From Ethics Review

89
Appendix G- Cost Pricing Strategy

Product Raw Material Quantity TOTAL COST

DIRECT MATERIALS

Butter Cacao 2kg ₱150.00

Cowbell Condense 6pcs 76.20
Salt 1kg 25.00
Alaska Powdered Milk 7pcs 57.00
Corn starch 1kg 90.00
Total (Direct Materials) ₱ 398.20

INDIRECT MATERIALS

PACKAGING

MATERIAL

Printable Sticker Paper 200 pcs ₱360.00

Packaging 1 pack ₱132.00

Total (Indirect Materials) ₱492.00

Total (Direct Materials & Indirect ₱ 890.2

Materials)
Number Of Units Produced 200

Total Unit Cost Pricing 50% Mark up

Marginal cost= 2

Cost per piece: 3.28

Selling Price ₱ 5.00

90
Appendix H - Summary of Survey Questionnaire

91
Appendix I – Notes To Financial Statements
For the Projected Years 2023,
2024, and 2025 NOTE 1 Total Sales
RODU P P P
C Unit 2023 Units 2024 Units 2025
NAME s

GIA’
S
WHIT
49,69 5 ₱248,470. 54,66 6 ₱327,978. 65,59 7 ₱459,179.0
E
4 00 3 00 7 0
CHO
CO
BA
R

NOTE 2 Statement of Cost of Goods Sold

GIA’S WHITE CHOCO BAR

Statement of Cost of Goods
Sold For the Projected
Years 2023-2025
2023 2024 2025
Raw Materials Inventory, ₱0.00 ₱20,208.00 ₱26,270.40
beginning
Add:Purchases direct materials ₱101,040.0 ₱111,144.0 ₱133,372.8
0 0 0
Total Direct Materials Available 101,040.00 131,352.00 159,643.20
for use
Less: Raw Materials Inventory, 20,208.00 26,270.40 31,928.64
ending
Total Direct Materials Used 80,832.00 105,081.60 127,714.56
Direct Labor (Cook) 63,000.00 66,150.00 69,457.50
Overhead ₱9,065.00 10,922.00 11,468.10
Total Cost of Goods 152,897.00 182,153.60 208,640.16
Manufactured & Sold

92
NOTE 3 Marketing Expense

COST Total Tota Total

PARTICUL Specificat QUANT
PER Cost l Cost
A RS i on I TY
UNIT 2023 Cost 2025
2024
FLYERS 10 pcs/ 2 10 20 -- --
P1
TARPAULIN ₱100. ₱200.0 0 ₱200.0 ₱200
2x3 2
S (2x3) 00 0 .00
LOAD 20 4 960 960 960
₱1,180.0 ₱1,160. ₱1,160.0
TOTAL
0 00 0
NOTE 4 Salary and Wages (5% increase rate)

NO. OF
RAT WAGE Total Total Cost Total
POSITION E WORKIN
PER Cost 2022 Cost
G DAYS
PER MONT 2021 2023
PER
DAY H
MONTH
COOK 250 21 5,250 63,000.00 66,150.00 69,457.50
TOTAL
DIRACT
LABOR- ₱63,000.00 ₱66,150.00 ₱69,457.50
PRODUC
T COSTS

200 21 4,200 50,400.00 52,920.00 55,566.00

Cashier
TOTAL
LABOR
- 50,400.00 52,920.00 55,566.00
PERIO
D
COSTS
LABO
R ₱113,400.00 ₱119,070.00 ₱125,023.50
COST
S

93
NOTE 5 Depreciation Expense

DEPRECIATION EXPENSE
COST USEFUL
PPE LIFE Total Total
Total Cost
Cost Cost
2021
2022 2023
PRODUCT COSTS
DIGITAL
₱250.00 10 ₱25.00 ₱25.00 ₱25.00
WEIGHING SCALE
STORE FIXTURES ₱1,500.00 5 ₱300.00 ₱300.00 ₱300.00
Gas Stove ₱500.00 5 ₱100.00 ₱100.00 ₱100.00
TOTAL DEPRECIATION
₱425.00 ₱425.00 ₱425.00
EXPENSE( PRODUCT COST)

Particulars Total Cost Estimated Depreciation

Useful Life
Year 1 Year 2 Year 3
Tables ₱900.00 5 ₱180.00 ₱180.00 ₱180.00
Chairs ₱400.00 3 ₱133.33 ₱133.33 ₱133.33
Total ₱313.33 ₱313.33 ₱313.33

Particulars Depreciation
Year 1 Year 2 Year 3
PPE ₱425.00 ₱425.00 ₱425.00
Office ₱313.33 ₱313.33 ₱313.33
Equipmen8
TOTAL ₱738.33 ₱738.33 ₱738.33

94
Note 6 Repair and Maintenance

Year Total cost

2022
₱ 237.50
2023 ₱ 237.50
2024 ₱ 237.50

NOTE 7 Kitchen Supplies Expense (5% of increase per year)

Total Total Total

Specifica
Costs Quan Unit Cost Cost Cost
tions
tity Cost 2021 2022 2023
KITCHEN
SUPPLIES
EXPENSES
plain, ₱60.00 ₱63.00 ₱66.15
Apron 30.00
cotton 2
₱50.00 ₱52.50 ₱55.13
Chopping board plastic 50.00
1
₱35.00 ₱36.75 ₱38.59
Hairnet black 17.50
2
plastic/
₱50.00 ₱52.50 ₱55.13
Gloves cellophan 50.00
e 1
₱50.00 ₱52.50 ₱55.13
Mask cotton 50.00
1
stainless ₱45.00 ₱47.25 ₱49.61
Knife 1 45.00
set
₱15.00 ₱15.75 ₱16.54
Ladle stainless 15.00
1
₱65.00 ₱68.25 ₱71.66
Mixing Bowl stainless 65.00
1
₱1,440.00 ₱1,512.00 ₱1,58 7.60
Steamer stainless 120.00
1
₱360.00 ₱378.00 ₱396.90
Broom stick 1 30.00
smart ₱42.00 ₱44.10 ₱46.31
Dishwashing paste 6 7.00
paste
scotch ₱20.00 ₱21.00 ₱22.05
Steel wool 2 10.00
brite
₱50.00 ₱52.50 ₱55.13
Dustpan plastic 50.00
1
Total KITCHEN ₱2,282.00 ₱2,396.10 ₱2,51 5.91
SUPPLIES
EXPENSES

95
Note 8 Permits and Licenses

Permits and Licenses (specify)

Particula 2023
rs
Local Tax

Cedula 105

Barangay Clearance 100

Police Clearance 100

MPDC Office 100

MENRO 100

MHO 500

MEO 100

Fire Safety Inspection 6

DTI 50

total Local Tax ₱1,161.

00
BIR Registration ₱500

TOTAL ₱1,661.
00

96
NOTE 9 Rent Expense

Rate Total Number of 2023 2024 2025

months
₱1000 ₱1000 ₱12 ₱12,000 ₱12,720 ₱13,483
There is a 6 percent increase every year

NOTE 10 Utilities Expense

Total Total Total

UTILITIES
Cost Cost Cost
EXPENSES
MONTHLY 2023 2024 2025
ELECTRICITY 400 4800 4896 4993.92
WATER 300 3600 3672 3745.44
₱8,400.00 ₱8,568.00 ₱8,739.36
There is a 2 percent increase every year

Note 11 Office Supplies

Particulars Quantity Unit Total Cost

Cost
Office Supplies
Calculator 1 150 150
Ball pen 2 20 20
Journal 1 18 18
Notebook 1 20 20
Total 208
Note 12 Provision Percentage Tax
PRODUCT NAME 2023 2024 2025

GIA’S WHITE CHOCO ₱248,470.00 ₱327,978.00 ₱459,179.00

BAR
Provision Percentage
Tax 7,454.10 9,839.34 13,775.37
Percentage Tax of Gross Sales 3%

97
Appendix J– Historical Demand

NUMBE
YEAR POPULAT R OF TOTAL
ION PURCH DEMAND
ASES
PER
MONTH

2020 11,410 78 881,462

2021 11,368 78 878,217

2022 11,598 78 895,986

Appendix K– Projected Demand

BASE AVERAGE % PROJECTED

YEAR
YEAR INCREASE DEMAND

2023 895,986 10% 982,977

2024 982,977 10% 1,078,415

2025 1,078,415 10% 1,183,120

APPENDIX L– HISTORICAL SUPPLY

COMPETITOR 2020 2021 2022

7ELEVEN 21,600 22,680 23,81

4
WAWANG
10,560 10,877 11,20
STORE
3

98
M.A PONILAR 11,88 12,23 12,60
0 6 3
TOTAL
HISTORICA 44,04 45,79 47,62
L SUPPLY 0 3 1

Appendix M– Projected Supply

YEAR BASE YEAR AVERAGE %

PROJECTED
INCREASE
SUPPLY
2023 47,620 4% 49,518
2024 49,518 4% 51,491
2025 51,491 4% 53,543

APPENDIX N– SUPPLY AND DEMAND ANALYSIS

UNSATIS
YEAR DEMAND SUPPLY
FIED
DEMAND
HISTORICAL
2020 881,462 44,040 837,422
2021 878,217 45,793 832,424
2022 895,986 47,620 848,366
PROJECTED
2023 982,977 49,518 933,460
2024 1,078,415 51,491 1,026,924
2025 1,183,120 53,543 1,129,577

99
Appendix O – Market Share

UNSATISFIED PRODUCTION MARKETSHARE

YEAR DEMAND CAPACITY
2023 933,460 50,400 5.40%
2024 1,026,924 55,440 5.40%
2025 1,129,577 66,528 5.89%

Appendix P– Sale Forecast

Unsatisfied
933,460 1,026,924 1,129,577
Demand
Market share 5.40% 5.40% 5.89%
Production
50,400 55,440 66,528
capacity
Percentage of
98.6% 98.6% 98.6
estimated sales %
Sales in units
49,694.00 54,663.00 65,597.00

Price
5.00 6.00 7.00

Gross Sales
₱248,470.00 ₱327,978.00 ₱459,179.00

100
Appendix Q – Financial Analyst Certificate

101
102
Alvin Jr. H. Bruse
PERSONAL DATA

Name: Alvin Jr. H. Bruse

Address: P-4 San Roque, New Bataan, Davao De Oro
Birthdate: June 14,2002
Status: Single
Father’s Name: Alvin A. Bruse Sr.
Mother’s Name: Delisa H. Bruse
Maiden: Hilicame

EDUCATIONAL BACKGROUND

Primary level: Lower Bala Elementary School

Secondary level: Bantacan National High School

Tertiary level: Davao De Oro State College

EMPLOYMENT HISTORY

None

103
Donna S. Hernali
PERSONAL DATA

Name: Donna S. Hernali

Address: Purok 12 Cabinuangan New Bataan, Davao De Oro
Birthdate: November 22,1999
Status: Single
Father’s Name: None
Mother’s Name: Felicitas Melchor
Maiden: Hernali
EDUCATIONAL BACKGROUND

Primary level: Cabinuangan Central Elementary School

Secondary level: New Bataan National High School

Tertiary level: Davao De Oro State College

EMPLOYMENT HISTORY

Saleslady/ Cashier

104
Georgia Aamabelle C. Ta-ala
PERSONAL DATA

Name: Georgia Aamabelle C. Ta-ala

Address: Purok 4-A Cabinuangan New Bataan, Davao De Oro
Birthdate: July 02, 2001
Status: Single
Father’s Name: Armando E. Ta-ala (Deceased)
Mother’s Name: Annabell C. Ta-ala (Deceased)
Maiden: Annabell N. Café
EDUCATIONAL BACKGROUND

Primary level: Cabinuangan Central Elementary School

Secondary level: New Bataan National High School

Tertiary level: Davao De Oro State College

EMPLOYMENT HISTORY

None

105
Lelith H. Saraga
PERSONAL DATA

Name: Lelith H. Saraga

Address: P-11, Cabinuangan, New Bataan, Davao de Oro
Birthdate: March 24, 1997
Status: Single
Father’s Name: Tito D. Saraga
Mother’s Name: Letecia H. Saraga
Maiden: Hayag

EDUCATIONAL BACKGROUND

Primary level: Cabinuangan Central Elementary School

Secondary level: Emar Human and Environmental

Tertiary level: Davao De Oro State College

EMPLOYMENT HISTORY

Saleslady/ Service Crew and Cashier

106
Shekinah T Hanggam
PERSONAL DATA

Name: Shekinah T hanggam

Address: Purok 12 Cabinuangan New Bataan
Birthdate: January 30,2002
Status: single
Father’s Name: Arnais Hanggam
Mother’s Name: Aurora Hanggam

EDUCATIONAL BACKGROUND

Primary level: Pong pong Elementary School

Secondary level: New Bataan National High School

Tertiary level: Davao De Oro State College

EMPLOYMENT HISTORY

None

107