A Feasibility Study on Flappy Eggs in Barangay Mesaoy

8/10/2019 A Feasibility Study on Flappy Eggs in Barangay Mesaoy

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A FEASIBILITY STUDY ON FLAPPY EGGS IN BARANGAY MESAOY, NEWCORELLA, DAVAO DEL NORTE

Presented to

The Faculty of the College of Business Administration EducationUM Tagum College

Tagum City

In partial Fulfillment of theRequirements for the Degree of Bachelor of Science in

Business Administration

LOVELY B. ANGELMIR JOHN W. APOGAIREEN F. BULADACORACHEL JANE S. LUNA

JERSON P. PALERARMARIE JOY R. PARALLAG

ELSANTO V. SANTOS

October 2014


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Chapter 1

INTRODUCTION

Objective of the Study

The objective of this study is to determine the feasibility of egg wholesale

and retail in Mesoy, New Corella, Davao del Norte. It specifically aims to:

know the strengths and weaknesses of the proposed business;

study the competitiveness of the business in the chosen location;

determine the characteristics and the distribution of the product;

identify the possible supply, demand and technical support of the

business;

inquest the proper management position of the business; and

Analyze the financial strength of the business.

Methodology

The proponents used survey and interview methods in conducting the

study. This is to obtain reliable information about the demand and supply of eggs

in the Brgy. Mesaoy, New Corella, Davao del Norte. The question given during

the survey, in which the residents were asked directly to state their opinions and

suggestions, provide conclusive evidence supporting a vast demand of eggs.


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Scope and Limitations of the study

This study focused primarily on the four major aspects of business which

includes the marketing, technical/production, organization management and

financial aspect. The proponents consider the data gathered but only to the

limited extent, because the competitor ceases to give the details of the

information. The proposed business deals with marketing that limits competition

regarding in the price of eggs that should be affordable for both middle and lower

income bracket level earners. In terms of technical and production aspect it is not

hard to purchase those eggs and materials because it is available within Tagum

City and Davao City. In an organization it is important to require an employee or

a worker that is capable to run a business. It is also wise to have a flawless

management that contribute successful path of the business. This aspect plays

an important role when it comes to scope and limitations because it occupies the

outflow of the capital. The gaining profit of the business should exceed the

expenses so that the business will continue to operate in a long period of time

and still provide good qualities of eggs to the consumers.


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Chapter 2

EXECUTIVE SUMMARY

Brief description of the Project

The proposed business is a sole proprietorship. It offers a quality and

cheapest fresh eggs and hygienic that suite to the needs of the consumers. The

business is accessible to the residents where the market itself is reachable both

for store retail and individual household consumers of Barangay Mesaoy. The

quality of eggs and their stability during storage are highly observed to maintain

the good quality of the eggs.

The plan involving distribution, product positioning, pricing, promotion and

marketing research will be conservatively and judiciously implemented.

.Profile of Proponents

Paler , Jerson BSBA-Financial Mgt.Prk.4,Mesaoy, New

Corella, Davao del Note

Luna, Rachel Jane BSBA-Financial Mgt.Prk. Durian Pangi Maco,

Compostela Valley

Buladaco, Aireen BSBA-Financial Mgt.

Prk. 4a Aurora

Compostela, Comval

Province

Ang, Lovely BSBA-Marketing Mgt.

Prk. Gementiza Brgy.

Visayan Village Tagum

City

Apog, Elmir John BSBA-Marketing Mgt.

Blk. 23 Lot 01 RTU

Village Apokon, TagumCity

Parallag, Armarie Joy BSBA-Marketing Mgt.Prk. SantanBrgy. Visayan

Village Tagum City

Santos, Elsanto BSBA-Marketing Mgt.Prk. Aquarius, Visayan

Village Tagum City


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Contribution to the Economy

The proposed business will contribute to local economy by bringing growth

and innovation to the community in which the business will be established. It will

realize distinct benefits such as providing employment opportunities to people

who may not be employed by larger businesses, discretionary income in the

community and tax income to get government as transfer payment for the

neighborhood securities, medications, education and public highways which the

people in the community will be benefited. These are some of the benefits that

the household sector and government sector that obtain from the business.


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Location of the Business

The propose site is at Barangay. Mesaoy, New Corella, Davao del Norte. It

is very accessible to the customers of the said barangay because it is the heart

Barangay. Mesaoy, New Corella, Davao del Norte. Figure 1 shows the

proponents location on the business.

Market Area

The market area of the business covers the entire Barangay. Mesaoy,

New Corella, Davao del Norte.

Main Customers

The market area of the business covers those households and sari-sari

store owners who are engage in retailing of eggs particularly the constituents of

Barangay. Mesaoy.


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Figure 1

Proposed Business Location


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Total Demand

Reflected in the Table 1 is the historical demand of eggs for the past 3

years in Barangay Mesaoy. The proponents conservatively assume 73% of the

target market. Every household consume 2 dozen of eggs per month. In year 1,

the total historical demand is 32,868, in year 2 are 35,320 and in year 3 37,983.

As shown in the table, there is an increasing demand of eggs in the past three

years.

Table 1

Historical Demand of Eggs (In Dozen)

YearNo. of

Households

Expected

Target Market

(73%)

No. of dozen

consume/month

Total

Demand

In Dozen

2011 1,876 1,369 2 32,868

2012 2,016 1,472 2 35,320

2013 2,168 1,583 2 37,983


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Projected Demand

Reflected in Table 2 is the projected demand of eggs for the next three

(3) years. The proponents used the moving average method. The demands of

eggs have increased yearly. In the year 1, the total anticipated number of eggs is

37,983 meanwhile in the year 2 is 39,882 and in the year 3 is 41,876 these

figures indicate continued increase thus, it implies potential validity of the

proposed business.

Table 2

Projected Demand of Eggs (In Dozen)

Year Based year

Average

percentage

increase

Projected Demand

(In dozen)

1 37,983 2% 38,743

2 39,882 2% 40,680

3 41,876 2% 42,714


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Historical Supply

As per survey that been gathered, there is no immediate competitor for

the proposed business in Barangay Mesaoy. Thus, Flappy eggs competitors are

outside Barangay Mesaoy, which is the reason that the proponents did not

consider them anymore as competitor.

Projected supply in table 3 shows to compute the projected supply of the

propose business. The proponents consider the projected demand as the basis

of the proposed business production capacity.

It can be gleaned in the table that the proposed business can assume a

market share of 3% at the total projected demand. This 3% share as the propose

business production capacity.

Table 3

Selling Capacity

Year Projected

Demand

Market share

Selling

Capacity

(In-Dozen)

1 38,743 7% 2,712

2 39,518 8% 3,161

3 40,308 8% 3,224


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Selling Price

Reflected in Table 4 is the historical price of the eggs in accordance to its

size in per tray, dozen and pieces in 2014.

Table 4

Selling Price

CHICKEN EGG

ParticularsSelling Price per

Tray

Selling Price per

Dozen

Selling Price per

Piece

Small P129.00 P50.00 P4.50

Medium P135.00 P54.00 P5.00

Large P157.50 P63.00 P5.25

X-Large P147.00 P60.00 P5.75

Jumbo P156.00 P64.00 P6.00


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Projected Price

Shown in Table 5, 6 and 7 is the price of eggs per tray, per dozen and per

pieces. Furthermore, as the interview and survey conducted, the price of eggs is

assumed to increase by an average amount of P 0.35 per year. The increase of

eggs is not considered because an egg is one of the basic needs of man.

Table 5Projected Selling Price

Year 1

CHICKEN EGG

Particulars Selling Price per

Tray

Selling Price per

Dozen

Selling Price per

Piece

Small P142.50 P57.00 P4.75

Medium P157.50 P63.00 P5.25

Large P165.00 P66.00 P5.50

X-Large P180.00 P72.00 P6.00

Jumbo P167.50 P75.00 P6.25


Year 2

CHICKEN EGG


Tray

Selling Price per

Dozen

Selling Price per

Piece

Small P150.00 P60.00 P5.00

Medium P165.00 P66.00 P5.50

Large P172.50 P69.00 P5.75

X-Large P187.50 P75.00 P6.25

Jumbo P195.00 P78.00 P6.50


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Year 3

CHICKEN EGG


Tray

Selling Price per

Dozen

Selling Price per

Piece

Small P157.50 P63.00 P5.25

Medium P172.50 P69.00 P5.75

Large P180.00 P72.00 P6.00

X-Large P187.50 P75.00 P6.25

Jumbo P195.00 P78.00 P6.50


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Sales Forecast

Reflected in Table 8 it shows the sales projected forecast in-tray for the

year 1 which the total is P175,122.00. Projected sales in tray has 25% equivalent

share in selling capacity. To get the total quantity of the trays, we multiply

projected demand to equivalent per share of 25% then multiply to 12 since the

selling capacity is in dozen, the result is divided to 30 because in tray it have 30

pieces of eggs.

Table 8

Projected Sales-Year 1(In-Tray)

Particulars %per shareQuantity(per tray)

Selling Priceper tray

TOTAL

Small 5% 54 142.50 7,695.00

Medium 7% 76 157.50 11,970.00

Large 6% 65 165.00 10,725.00

X-Large 4% 44 180.00 7,920.00

Jumbo 3% 32 167.50 5,528.00

Total 25% 271 P 43,838.00


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The Table 9 shows the projected sales forecast in dozen for the year 1.

We simply multiply the projected demand to equivalent share which is 44% to

selling capacity per year.

Table 9

Projected Sales -Year 1

(In-Dozen)

Particulars %per shareQuantity

(per dozen)Selling Price(per dozen)

TOTAL

Small 13% 353 57.00 20,121.00

Medium 10% 271 63.00 17,073.00

Large 9% 244 66.00 16,104.00

X-Large 7% 190 72.00 13,680.00

Jumbo 5% 136 75.00 10,200.00

Total 44% 1193 P 77,178.00


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Table 10 it shows the projected sales forecast in pieces for the year 1.

The computation in getting the total quantity in pieces, we simply multiply the

equivalent share which is 31% to selling capacity year 1 and multiply it to 12 to

get per pieces of eggs.

Table 10

Projected Sales -Year 1

(In-Piece)


(per piece)Selling Price(per piece)

TOTAL

Small 8% 2,604 4.75 12,369.00

Medium 9% 2,929 5.25 15,377.00

Large 7% 2,278 5.50 12,529.00

X-Large 5% 1,627 6.00 9,762.00

Jumbo 2% 651 6.25 4,069.00

Total 31% 10,089 P 54,106.00


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Table 11 shows the projected sales forecast in tray for the year 2. The

total projected sale was P214,471.00. In calculating the total quantity in-tray it

was the same computation in year 1 but the selling capacity used is in the year 2

is assumed to increase by 5% from year 1.

Table 11

Projected Sales-Year 2

(In-Tray)



TOTAL

Small 5% 63 150.00 9,450.00

Medium 7% 89 165.00 14,685.00

Large 6% 76 172.50 13,110.00

X-Large 4% 51 187.50 9,563.00

Jumbo 3% 38 195.00 7,410.00

Total 25% 317 P 54,218.00


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The computation was the same with the previous projected sales in dozen in the

year 1. We simply multiply the projected demand to equivalent share which is

44% to selling capacity per year.

Table 12


(In-Dozen)


(per dozen)Selling Price

per dozenTOTAL

Small 13% 41160.00

24,660.00

Medium 10% 31666.00

20,856.00

Large 9% 28469.00

19,596.00

X-Large 7% 22175.00

16,575.00

Jumbo 5% 15878.00

12,324.00

Total 44% 1,390 P 94,011.00


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Table 13 shows the projected sales forecast of eggs in piece for the year

2. The computation in getting the total quantity in pieces, we simply multiply the



Table 13


(In-Piece)


(per piece)Selling Price

per piece TOTAL

Small 8% 3,035 5.00 15,175.00

Medium 9% 3,414 5.50 18,777.00

Large 7% 2,655 5.75 15,266.00

X-Large 5% 1,897 6.25 11,856.00

Jumbo 2% 759 6.50 5,168.00

Total 31% 11,759 P 66,242.00


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Table 14 shows the projected sales forecast in tray for the year 3. The

total projected sale was P 226,908.00. In calculating the total quantity in-tray it

was the same computation in year 2 but the selling capacity used is in the year 2

is assumed to increase by 5% from year 2.

Table 14


(In-Tray)



TOTAL

Small 5% 65 157.50 10,238.00

Medium 7% 91 172.50 15,698.00

Large 6% 78 180.00 14,040.00

X-Large 4% 52 187.50 9,750.00

Jumbo 3% 39 195.00 7,605.00

Total 25% 325 P 57,331.00


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The computation was the same with the previous projected sales in dozen in the

year 2. We simply multiply the projected demand to equivalent share which is

44% to selling capacity per year.

Table 15


(In-Dozen)


(per dozen)Selling Price

per dozenTOTAL

Small 13% 422 63.00 26,586.00

Medium 10% 324 69.00 22,356.00

Large 9% 291 72.00 20,952.00

X-Large 7% 227 75.00 17,025.00

Jumbo 5% 162 78.00 12,636.00

Total 44% 1,426 P 99,555.00


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Table 16 shows the projected sales forecast of eggs in piece for the year

3. The computation in getting the total quantity in pieces, we simply multiply the



Table 16


(In-Piece)


(per piece)Selling Price

per pieceTOTAL

Small 8% 3,114 5.25 16,349.00

Medium 9% 3,504 5.75 20,148.00

Large 7% 2,725 6.00 16,350.00

X-Large 5% 1,946 6.25 12,163.00

Jumbo 2% 771 6.50 5,012.00

Total 31% 12,060 P 70,022.00


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Summary of Sales

Presented in the Table 17 was the summary of projected sales forecast in

tray, dozen and pieces of eggs were calculated based on the production

capacity in the year 1, 2, and 3.

Table 17

Summary of Sales

Particulars Year 1 Year 2 Year 3

In-Tray 43,838 54,218 57,331

Dozen 77,178 94,011 99,555

Pieces 54,106 66,242 70,022

Total P 175,122.00 P 214,471 P 226,908


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Marketing Strategy

Promotional Measures and Marketing

Marketing is the primary tool in establishing the business because this will

help your business to be known by the customers. The marketing strategy that

the proponents agreed on is to distribute fliers before the launching in the

opening of the business. For the customers awareness about the business that

were planning to put up in the said locations. And also if the business is open,

the proponents decided to give freebies upon purchasing of the products like: for

every purchase of 4 trays of eggs the customer will receive a plastic tray for free

and for every purchase of 10 trays of eggs the customer can avail a two percent

(2%) discount

Distribution Strategy

The proponents agreed that the strategy is direct distribution because for

us as beginners in this business we want to assure that the product are well

distributed to the customers; since the business starts at small, there is no

middlemen involve and the proponents will directly take the product to the

customer with free delivery charge.

Pricing Strategy

Pricing strategy is one of the major things to consider when it to prices.

Customers will always prefer a cheaper and the assurance that the product are in

good quality. The proponent will makes sure to give the most affordable and the

best quality of eggs and the prices will base according to their sizes.


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Marketing Budget

Promotional Expense

The proponents also consider the budget in promoting the business. It will

start at P 1,500.00 and assumed to increase by 5% as the years pass by. The

calculation in getting the increase of the promotional expense yearly is to multiply

P1, 500.00 to 5% and the product is added in the principal amount of the

promotional expense.

Table 18

Promotional Expense

Year Amount

1P 1, 575.00

2 1, 654.00

3 1, 737.00


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Chapter 4

PRODUCTION PLAN

PRODUCTION ASPECT

This chapter identifies the overall aspects of operations involving the

production process of the firm. It is necessary to determine the flow of operations

within a business.

Production Process

A production process generally involves the use of raw materials,

machinery, and manpower to provide a product. It is a process of a product or

services takes in order for it to become ready for the customer in the barangay

Mesaoy. The production process of the proposed business; first is the egg

collections that are purchased into some poultry industry. Second is the quality

control that specifies inspection of those eggs with cracks and damage should be

removed from the customers purchasing lines. Then the delivery of the product

from the supplier to the store. Then the preparation of the eggs by putting cold

water and laundry detergent, then wipe the stain continuously using sanding

sponge or loofah then put the eggs to the bucket with towel and let it dry and

ready for display. Then the customer will select the egg of their choice then pay it

to the cashier then the worker will pack it properly for the convenient and safety

of the product.


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Furniture and Fixtures

Table 20 shows the detailed furniture and fixture needed for the

operation and has an estimated life in 3 years. It assumed after 3 years its cost

will increase 5% after full depreciation and another Furniture and Fixtures will be

acquired.

Table 20

Furnitures and Fixtures and Appliance

Particulars Quantity Unit Cost Total Cost

DeliveryEquipment

1 P75,000.00 P75,000.00

Appliances

Electric Fan 1 3,000.00 3,000.00

Cellphone 1 600.00 600.00

Sub-Total P3,600.00 P3,600.00

Furnitures and

Fixtures

Table 1 P1,500.00 P1,500.00

Chairs 4 300.00 1,200.00

Display Table 1 800.00 800.00

Sub-total P3,600.00 P5,500.00

Grand-Total P82,200.00 P84,100.00


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Figure 2

Selling Process

Purchase of Products

(from supplier)

Delivery of products

(from supplier to our store)

Preparation of the products

Displaying of the products

Selling of the products


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Depreciation

Table 21 shows the schedule of depreciation for the fixed asset. As per

assumption the life of the assets are dependent on its kind of assets. The

proponents use the straight line method of depreciation.

Table 21

Depreciation Schedule of Furniture and Fixtures and Appliances

Particulars Amount

Estimat

ed Life

of

Assets

Year 1 Year 2 Year 3

Delivery P75,000.00 8 P9,375.00 P9,375.00 P9,375.00

Equipment

Appliances

Electric Fan 3,000.00 3 1,000.00 1,000.00 1,000.00

Cell phone 600.00 3 200.00 200.00 200.00

Sub-Total P3,600.00 P1,200.00 P1,200.00 P1,200.00

Furnitureand

Fixtures:

Table 1,500.00 3 500.00 500.00 500.00

Chairs 1,200.00 3 400.00 400.00 400.00

Display

Table800.00 3 267.00 267.00 267.00

Display

Shelves2,000.00 5 400.00 400.00 400.00

Sub-Total P5,500.00 P1,567.00 P1,567.00 P1,567.00

Total P84,100.00 P12,142.00 P12,142.00 P12,142.00


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Sources of Furniture & Fixtures and Appliances

The supplier these furniture & fixture for the projected business are

available in the locality of Tagum City.

Planned Selling Capacity

Presented in Table 22 is the proposed production capacity of the

business. The proponents assume the production capacity based on the capital

set up of this kind of business.

Table 22

Planned Selling Capacity

YearSelling Capacity Per

month(Tray)Month Total

1 240 12 2,880

2 252 12 3,024

3 265 12 3,175

Terms and Condition of purchase Equipment

The proponents had decided that the purchase equipment will be paid

through cash. The proponents and the owner of the purchased equipment had

agreed that equipment should have a warranty from the day it was acquire.

Store Lay-out

Figure 3 shows the proposed store layout of the proposed business.


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Figure 3

Store Layout


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Cost of Purchase

Reflected in Table 23 is the cost of purchase from the different suppliers.

The proposed business purchases the eggs by tray to take advantage at the

discount. It is assumed to increase by 5% per year.

Table 23

Purchases (eggs) Distributor Price

ParticularsCost per tray (30 eggs/tray)

Year1 Year 2 Year 3

Small 80.00 84.00 88.00

Medium 85.00 89.25 93.70

Large 95.00 99.75 104.75

XL 105.00 110.25 115.75

Jumbo 115.00 120.75 127.00

Annual Purchase Cost

Table 24, 25 & 26 shows the projected annual cost of eggs.

Table 24

Annual Purchase cost-Year 1

Particulars % shareQuantity

(per year)

Cost per

TrayTotal

Small 22% 239 80.00 19,120.00

Medium 30% 325 85.00 27,625.00

Large 25% 271 95.00 25,745.00

XL 13% 141 105.00 14,805.00

Jumbo 10% 109 115.00 12,535.00

Total 100% 931 P480.00 P 99,830.00


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Table 25

Annual Purchase Cost- Year 2

Particular % per shareQuantity

(per year)

Cost per

TrayTotal

Small 22% 278 84.00 P23,352.00

Medium 30% 379 89.25 33,826.00

Large 25% 316 99.75 31,521.00

X.L 13% 164 110.25 18,081.00

Jumbo 10% 126 120.75 15,215.00

Total 100% 1,263 P504.00 P121,995.00

Table 26Annual Purchase Cost- Year 3

Particular % per shareQuantity

(per year)

Cost per

TrayTotal

Small 22% 285 P88.00 P25,122.00

Medium 30% 389 93.70 36,476.00

Large 25% 324 104.75 33,981.00

X.L 13% 169 115.75 19,526. 00

Jumbo 10% 130 127.00 16,480.00

Total 100% 996 P529.20 P131,585.00


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Inventory

Inventory every year is assumed to have a percentage of 1/8% or

equivalent to 0.00125 of spoilage eggs.

Table 27Inventory Year 1

Particulars Purchases Sold SpoilageEnding

Inventory

Cost of

Ending

Inventory

Small 19,120.00 18,929 23 168 P384

Medium 27,625.00 27,349 34 242 589

Large 25,745.00 25,488 32 225 618

XL 14,805.00 14,657 18 130 389Jumbo 12,535.00 12,410 16 110 410

Total

Table 28

Inventory Year 2


Inventory

Cost of

Ending

InventorySmall 23,352.00 23,118 29 205 P431.00

Medium 33,826.00 33,488 42 296 665.00

Large 31,521.00 31,206 39 276 689.00

XL 18,081.00 17,900 22 159 438.00

Jumbo 15,215.00 15,063 19 133 404.00

Total


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Table 29

Inventory Year 3


Inventory

Cost of

Ending

Inventory

Small 25,122.00 24,871 31 220 481.00

Medium 36,476.00 36,111 45 320 743.00

Large 33,981.00 33,641 42 298 670.00

XL 19,526. 00 19,331 24 171 494.00

Jumbo 16,480.00 16,315 20 145 453.00

Total

Operating Expense

Salaries and Wages

Table 30 represents the manpowers requirements of the business. The

proponents assumed that in every month the employer will receive (a monthly)

their pay (of) in accordance to their assign work. The cashier will receive a

monthly pay of P 3,000.00. The helpers will be receiving P 2,500.00 each or total

of P 5,500.00 equivalent to P 30,000.00.

Table 30

Salaries Expense

Particulars No. of Workers Rate per monthTotal Amount

per year

Worker 1 P 2,500.00 P 30,000.00

Cashier 1 3,000.00 36,000.00

Total 2 P 5,500.00 P 66,000.00


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Projected Salaries Expense

Presented on the Table 31 are the projected salaries and wages. It is to

increase by 5% in the next succeeding year.

Table 31

Projected Salaries and Wages

Year Total Amount

1 P 66,000.00

2 69,300.00

3 72,765.00

Supplies Expense

Table 32 shows the expense to be incurred. As projected the proposed

business will be spending a total cash of P 22,200.00.

Table 32

Supplies Expense

Particulars Quantity Unit Cost Annual Cost

Broom 2 P 45.00 P 90.00

Dustpan 1 45.00 45.00

Trashcan 1 90.00 90.00

Calculator 1 300.00 300.00

Record Book 1 100.00 100.00

Cellophane (Smooth) 100 pack 12.00 1,200.00

Cellophane (Sando bag) 100 pack 45.00 4,500.00

Newspaper 10 bundle 50.00 500.00

Tie box 5 roll 55.00 275.00

Egg tray 3,000 5.00 15,000.00

Total P 747.00 P22,200.00


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Projected Supplies Expense

Table 33 is the projected supplies expense for the next 3 years. It is

assume to be increased by 5%.

Table 33

Projected Supplies Expense

Year Total Amount

1 P 22,200.00

2 23,310.00

3 24,246.00

Meal Allowance

. Presented on Table 34 is the proposed meal allowance of P30.00 per

day or a total of P 2,700.00 per month or P 32,400.00 per year. If is further

assumed to increase by 5% per year

Table 34

Meal Allowance

Year Total Amount

1 P 32,400.00

2 34,020.00

3 35,721.00


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Utility Expense

Table 35 shows the components of utility expense. Furthermore, the

proponents assume a 5% increase. Table 34 shows the projected utility expense

in the next 3 years of operations.

Table 35

Utility Expense

Utility Source Cost per monthTotal Cost in

Year 1

Power Supply Daneco P400.00 P4,800.00

Water Supply Water District 200.00 2,400.00

Communication Sun 350.00 4,200.00

Total P950.00P11,400.00

Projected Utility

Table 36 shows the projected utility expense per year increase of 5% from

power supply, water supply and communication system.

Table 36

Projected Utility Expense

Year Amount

1 P13,800.00

2 14,490.00

3 15,215.00


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Repair and Maintenance

The equipment and maintenance must be maintained to be able to

function normally. Repair and maintenance expected to increase by 5% per year.

Table 37

Repair and Maintenance

Year Amount

1 P14,400.00

2 15,120.00

3 15,876.00

Business Permit

The proponents conducted an interview to the licensing division of New

Corella. As per information the amount to be paid by the proposed business will

be P 3,500.00 in the initial year. However, in the year or two, it is assumed to

increase P300.00 per year.

Table 38

Business Permit

Year Amount

1 P3,500.00

2 3,800.00

3 4,100.00


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Transportation Expense

The estimated transportation expenses of the proponents per month is

P1,800.00 per month or equivalent to P 21,600.00 per year. It is assume that it

will increase by 5% in the next succeeding year.

Table 39

Transportation Expense

Year Amount

1 P21,600.002 22,680.00

3 23,814.00

Rent Expense

The rental expense of the stall is P 3,000.00 per month or an equivalent of

P36,000.00 yearly. The proponents expected that there will be an increase for

the succeeding year by 10%. Table 40 presents the details.

Table 40

Rent Expense

Year Amount

1 P36,000.00

2 39,600.00

3 43,560.00


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Summary of Expense

Reflected in Table 41 is the summary of the operating expense in the

year 1,2 and 3.

Table 41

Summary of Operating Expense

Particulars Year 1 Year 2 Year 3

Depreciation P12,142.00 P12,142.00 P12,142.00

Salary and wages 66,000.00 69,300.00 72,765.00

Supplies and Materials 22,200.00 23,310.00 24,476.00

Meal Allowance 32,400.00 34,020.00 35,721.00

Utility Expense 13,800.00 14,490.00 15,215.00

Repair and Maintenance 14,400.00 15,120.00 15,876.00

Business Permit 3,500.00 3,800.00 4,100.00

Transportation Expense 21,600.00 22,680.00 23,814.00

Rent Expense 36,000.00 39,600.00 43,560.00

Promotional Expense 1,500.00 1,575.00 1,654.00

Total P232,542.00 P236,037.00 P249,323.00


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The worker is responsible for customer care, assists customers by

carrying items, upon request, to cashier area or to customers vehicle; as well as

provides courteous, efficient and attentive service in a timely manner by

welcoming customers.

The cashier responsibility are as follows; first is to greet the customers

entering into organization, handling all the cash transaction of an organization,

receive payment by cash, checking daily cash accounts, guiding and solving

queries of customer.


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Figure 4

Organizational Structure

MANAGER /OWNER

WORKERCASHIER

BOOKEEPER


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Business Experience and Qualifications of the Entrepreneur

Success of the business requires a good idea, consistent hard work and

a bit of luck. The entrepreneur who organized the business marketing and

finance can be taught and learned, but the true entrepreneur understands that

the proof is in the product. A degree in just about anything proves you can stick

to a task, but your ability to sell yourself and your ideas is must.


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Chapter 6

Financial Plan

The owner will invest the amount of P200.000 came from the savings.

Major Assumption

1. Market share is assumed to be 5% of the total unsatisfied demand per

year.

2. Salaries and Wages are projected to increase 10% per annum.

3. Utility is assumed to increase by 5% per year.

4. Repair and Maintenance is assumed to increase 5% per year.

5. Supplies expense is assumed to increase by 5% per year.

6. Business Permit is assumed to be P3, 500.00 on the initial year and is

assumed to increase by 10% in the next succeeding year.

7. Transportation expense is assumed to increase by 5% per year.

8. Meal Allowances for the crew is set at P32, 400.00 per year and

assumed to increase 5%.

9. Expected 5% increase per year to the Rent expense

10. Furniture and Fixture have a life span of 3 years.

11.Tools and Equipment have an estimated life of 8 years for the Multicab and 3

years for the other equipment.

12. It is estimated that the purchase price will increase by 5% each year.


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13. Drawing is 40% of the net income.

14. It is estimated that the inventory of eggs that are considered spoiled is 1/8%

or 0.00125.


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A Feasibility Study on Flappy Eggs in Barangay Mesaoy

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