Rb Biscuit Co. Funding Request

RB BISCUIT CO.RB BISCUIT CO.

ENTERPRISE ENHANCEMENT PLAN

&

FUNDING REQUEST

Small Business CorporationInWent

Center for Small EntrepreneursSeptember 2008

RG BISCUIT CO.

1. Executive Summary

RB Biscuit Co. is an offshoot of a previous business in the hard biscuit industry. The proponent and main owner, Roque Belgado, had previously been in the native hard biscuit business for 8 years. However, because of certain circumstances the business was closed down. Looking for a new partner, Belgado, was able to restart the business under RB Biscuit Co.

The new company just produce one product, Paborita. It is a native hard biscuit, circular in shape with a diameter of approximately 1¼ inches and around half an inch thick. It is baked in a brick oven thus giving it a very distinct taste. RB Biscuit Co. prides itself that the taste of its Paborita is 1 to 2 notches higher than competition. The hard biscuit is packed at 12 pcs. per plastic pack. Each pack is sold at a very affordable price of P10.00.

RB Biscuit Co. is located in Sta. Rosa Laguna. Its Paborita biscuit is now sold in the provinces of Laguna, Batangas and Cavite, and in Metro Manila. The company sells to snack food wholesalers in public markets. The wholesalers, in turn, sell to retailers (sari-sari stores and vendors), who then sells to the consuming public. In Metro Manila, RB Biscuit Co. has a distributor who covers the whole of the National Capital Region.

Over the past 2 years, Belgado has been able to grow RB Biscuit Co. to a sales volume of over P8 million by tapping its old customers. Market demand is growing but the company is unable to serve the requirement because of lack of working capital.

RB Biscuit Co. plans to make a bold move to increase production and sales from the current 3,000 bags per month to 5,600 bags per month in the next 12 months. At the 3,000 bag level, production is only at 50%-60% capacity. RB Biscuit Co. would like to operate at the maximum capacity of 5,800 bags per month on one shift. Except for direct material costs, other expenses of the company will not drastically increase by scaling up production from 3,000 bags per month to 5,600 bags per month within the next 12 months. Thus RB Biscuit Co. foresees increasing profits from P0.16 million per annum at present to P1.25 million in the next 12 months.

Further, RB Biscuit Co. has targeted to increase production and sales to 11,000 bags per month to generate sales of P30 million in three years. This can be done by increasing production, opening new markets, and

Sample Enterprise Enhancement PlanRB Biscuit Co. 2

introducing a new product. The key to RB Biscuit Co.’s realization of its 3-year goal is increasing capacity immediately. But lack of funds is the stumbling block. As such, RB Biscuit Co. is trying to secure a P500,000 loan to be used for working capital to scale up production.

2. Business Concept

Native biscuits started from the local “panaderya” or bakery. These panaderyas started with baking breads such as pan de sal, pan de limon, etc. To maximize use of the oven, the panaderyas or bakeries started developing other baked food and snack items such as ensaymada, pan de coco, monay, etc. These further expanded to baking of hard native biscuits such as galletas, paborita, ogoy or ogoy-ogoy, apas, etc.

Over time and with the intention of focusing on a market niche, bakeries concentrated on just certain products. Some bakeries completely stopped making bread and just baked various cookies and biscuits. Because of financial constraints many small bakeries decided to produce one or two products only. These small bakeries grew in number. But this generated some positive effects. With just producing a limited number of products, the bakery was able to improve the quality of the product. And with its expertise in just baking and selling a few products, these small bakeries were able to lower their costs and ultimately the selling price.

RB Biscuit Co. is one of these small bakeries currently producing just one product, Paborita, a hard biscuit.

3. Description of the Business

RB Biscuit Co. is an offshoot from a previous business. Roque Belgado and his cousin, Joselito Villania, started a hard biscuit bakery business in 1998 in Sta Rosa, Laguna. The bakery was set up in the lot owned by Joselito Villania.

They produced basically two kinds of hard biscuits only, Paborita and Ogoy-Ogoy (or Ogoy). Paborita is a circular biscuit around 1½ inches in diameter and about half an inch thick. Ogoy-ogoy is a rectangular biscuit ½ inch wide, around 2 inches long and half an inch thick and topped with brown sugar. Both Paborita and Ogoy are snack foods enjoyed by children and adults alike.

The hard biscuit business of Belgado and Villania grew. From Sta. Rosa, Laguna, the cousins started distributing the biscuits to other Laguna towns and then to neighboring provinces, reaching up to Metro


Manila. Villania was responsible for production, while Belgado handled marketing. The biscuits were sold in volume to wholesalers, who in turn sell the biscuits to retailers such as sari-sari stores or vendors.

The hard biscuits the pair baked tasted very good which is the reason for its growth. The secret to the good taste, aside from the mixture, was in the baking. While most of the biscuit makers now use LPG ovens, Belgado & Villania still baked their biscuits in a brick oven which gives it a very distinct taste.

In 2004, Villania became very sick. He could not oversee production properly and as the months past he fell deep into debt. With production being erratic, the business started incurring losses. Finally in 2005, the cousins agreed to shut down the business.

Seeing the potential of the business, Belgado started looking for other partners. He felt that with his seven years in the business and with properly trained staff he can handle already both production and marketing. Belgado was able to convince a long-time friend, Rodolfo Santiago to invest in the business. Santiago infused some capital and agreed to lend the business a loan.

In 2007, Belgado and Santiago set-up and registered RB Biscuit Co. It was decided to just make the Paborita biscuit first and just expand as the years go by. Belgado hired a good baker and kneader to ensure that the taste of the previous Paborita biscuit is replicated. He then visited all their former wholesalers and distributors, was able to convince them and was able to get orders. He also started opening up new markets. The company now sells the Paborita biscuit in Laguna, Batangas and Cavite. The company has a distributor who was given the right to solely distribute the product in Metro Manila.

The Paborita is packed in plastic bags at 12 pcs. per pack. It is then packed in big plastic bags at 30 packs per bag. The biscuit is sold to wholesalers at P7.50 per pack or P225 per bag. The biscuit is sold retail at P10.00 per pack.

The bakery is operating only at around 50%-60% capacity. Belgado sees that the company can sell in other municipalities and even possibly move south east to Quezon and Bicol areas. The company plans to increase production by 40% within the next 12 months.

4. Vision of the Business

In three years, RB Biscuit Co. sees itself to be delivering hard biscuits from Metro Manila, through the Southern Tagalog region and then into


the Bicol area. It will retain its distribution method of selling to wholesalers in public markets or assigning distributors in certain localities. This way it does not need to maintain its own extensive sales force.

RB Biscuit Co. also intends to increase the number of biscuits it produces. Aside from the Paborita, the company intends to produce already the Ogoy-ogoy. The baking process is basically the same. The only difference is that brown sugar is sprinkled on the Ogoy-ogoy prior to baking.

RB Biscuit Co. is targeting to increase its sales volume from the current P8 million to P30 million in three years, with a net income objective of P2.6 million. The company sees the potential for growth especially in these hard times. Because of rising costs of most products, consumers are now more “Peso”-conscious. They are looking for cheaper products and substitutes but which will give them almost the same value and satisfaction. RB Biscuit Co. projects that , as long as wheat flour prices do not drastically increase, it can maintain its low selling price. With its good taste and low price, RB Biscuit Co. projects that its sales will continually increase.

To be able to realize this 3-year vision of RB Biscuit Co. it needs to expand operations at once. However, currently RB Biscuit Co. does not have enough funds to purchase additional equipment and for the needed increased working capital. As such, the company is trying on securing a P500,000 loan from a financial institution. When the business increases its production and sales capacity, the cash flow will be very positive as will be shown at the latter part of this Enterprise Enhancement Plan. However, in order to be able to achieve this positive cash flow, additional funds have to be infused to be able to scale up production immediately.

5. Marketing Plan

RB Biscuit Co. is duplicating the business model employed by Belgado and Villania in their previous partnership. This has proven to be successful before, and the company does not see problems in replicating the previous business.

a. Product

Although the facilities of RB Biscuit Co. can produce a variety of biscuits, it decided to just produce one product first, the Paborita hard biscuit. The reasons for this move are:


- the company’s production staff has already mastered the process;

- the company does not have the facilities to produce the more expensive biscuits; and

- the company is targeting the bigger C-D-E market.

However, RB Biscuit Co. sees that it is now time to produce also Ogoy-ogoy. The mixture and baking process of both Paborita and Ogoy-ogoy is basically the same.

Paborita is a circular biscuit around 1½ inches in diameter and about half an inch thick. Ogoy-ogoy is an elongated biscuit ½ inch wide, around 2 inches long and half an inch thick and sprinkled at the top with brown sugar.

The biscuits are packed at 12 pcs. per pack. Then 30 packs are placed in a big plastic bag. These are sold in bags to wholesalers and retailers. The company does not sell by the pack.

Both products will be positioned as a cheap yet delicious snack food. Previous feedback received that it was good with coffee or soft drinks.

There are over a dozen bakeries making Paborita, but most of these do not distribute the product extensively. In the Metro Manila and Southern Tagalog area, RB Biscuit Co.’s main competitors are Zee Bakery in Batangas, Pedro Co from Mindoro and Variety Snacks from Bulacan.

Zee Bakery and Pedro Co sells a variety of bakery products aside from the hard biscuits. Variety Snacks produces only hard biscuits. Zee Bakery and Pedro Co uses an LGP oven and RB Biscuit Co. does not see them as much of a threat in terms of taste and quality of the biscuit. Variety Snack uses a brick oven, but feedback from wholesalers in the public markets, the perception is that RB Biscuit Co.’s Paborita tastes better. Another major difference between RB Biscuit Co.’s Paborita and that of Variety Snacks is the size of the product and packaging. Variety Snacks’ Paborita is larger at around 2 inches. Further, RB Biscuit Co.’ packs Paborita in 50 grams, while Variety Snacks packs their biscuit in 80 grams.

b. Price


The Paborita and Ogoy-ogoy biscuits of RB Biscuit Co. shall be retailed at P10.00 per pack. The recommended pricing scheme is as follows:

For WholesalersPer Pack Per Bag

Factory price 7.50 225.00Wholesaler’s mark-up .75 22.50Price to retailers 8.25 247.50Retailer’s mark-up 1.75 52.50Retail Price 10.00 300.00

For DistributorsPer Pack Per Bag

Factory price 7.50 225.00Distributor’s mark-up .25 7.50Price to wholesaler 7.75 232.50Wholesaler’s mark-up .50 15.00Price to retailers 8.25 247.50Retailer’s mark-up 1.75 60.00Retail Price 10.00 300.00

The retail prices of RB Biscuit Co.’s competitors are as follows:

- Zee Bakery - P8.00/pack (50 grams)- Pedro Co - P10.00/pack (50 grams)- Variety Snacks - P15.00/pack (80 grams)

RB Biscuit Co. does not assess Zee Bakery and Pedro Co as serious threats because of product quality. Their biscuits are baked in LPG ovens and the taste is not as good as biscuits baked in a brick oven. Variety Snack is more of the major competitor. Effectively Variety Snack’s biscuit costs P0.1875 per piece, while that of RB Biscuit Co. is P0.20 per piece. However, it is assessed that it would be lighter for a consumer to shed off P10 for a snack versus P15. Thus, RB Biscuit Co. decided that it will not match Variety Snack’s packaging size.

c. Place

RB Biscuit Co. does not sell retail to the general public. Instead the Paborita is sold in bags of 30 packs to wholesalers and distributors. In the provinces of Laguna, Batangas and Cavite,


there are wholesalers in public markets. There is no exclusivity for a wholesaler. Thus in a public market there can be more than one wholesaler of the Paborita. If a particular wholesaler asks for exclusivity, RB Biscuit Co. assesses the potential of the particular market and gives the wholesaler a weekly quota.

Retailers, such as sari-sari stores and snacks vendors, buy the biscuit from the wholesaler also on a per bag basis. The retailers then sell directly to the public.

In Sta. Rosa, Laguna, retailers can buy directly from the company at the factory price of P225/bag pick-up. This does not affect the wholesalers in Sta. Rosa, Laguna because the biscuits are delivered to the wholesalers, whereas the retailer has to spend for transportation to pick up the bags of biscuits.

For Metro Manila, a distributor was assigned. The distributor has exclusive rights to sell in Metro Manila. RB Biscuit Co. does not sell to the wholesalers in the public markets in Metro Manila. The distributor in Metro Manila distributes to the wholesalers at his own expense. Aside from the Paborita of RB Biscuit Co., the distributor also carries various snack food items.

d. Promotion

The company does not do any promotion. The wholesalers are requested to tell retailers to tell the consumers to just serve the Paborita in replacement for sandwiches in funerals and gatherings. It comes out cheaper.

6. Sales Plan

Currently, RB Biscuit Co.’s monthly sales volume is only 3,000 bags. The brick oven and production capacity can produce a maximum of 5,824 bags per month in one 8-hour shift. The potential maximum production capacity of RB Biscuit Co. is 17,471 bags per month operating at three shifts. At P225 per bag, maximum potential sales of RB Biscuit Co. is P3.9 million per month or P47 million per year.

At its current production volume, RB Biscuit Co.’s profits is only P160,000 per year. However, at full capacity, profitability can be as high as P3.4 million per year. ANNEX A shows the Sales and Costs Plan for RB Biscuit Co.’s current production and sales volume of 3,000 bags per month. ANNEX B shows the profitability picture at a production and sales volume of 5,824 bags per month.


This is the sales objective of RB Biscuit Co., to increase sales from the current 3,000 bags of Paborita per month to 5,600 bags per month on a combination of Paborita and Ogoy-ogoy for the first year.

The oven is currently being used at only 50%-60% capacity. At present, there are only 5-8 baking cycles per day, whereas the oven can be run for 14-16 baking cycle per 8-hour day. There is still a lot of oven capacity to accommodate the projected 40% increase in production. Thus there will be no major investment required.

The production staff of RB Biscuit Co. are paid on a daily basis based on an 8-hour work, even if there are only 5-8 baking cycles per day. The workers are paid the full 8 hours wages but effectively providing only 4 hours of work. Thus the increase in production capacity will also not drastically increase production staff salaries and wages.

RB Biscuit Co. has an ambitious plan of producing and selling 11,000 bags per month of Paborita and Ogoy-ogoy in three years. This will result in a annual sales volume of P30 million. ANNEX C details the sales expansion program of RB Biscuit Co. for the next three years.

7. Production

To produce Paborita, wheat flour, sugar, yeast and a little cooking oil is mixed in a heavy duty, industrial-type mixer. The Paborita mixture is allowed to set for a few minutes then is passed to the kneader so that the desired consistency is reached for the whole mixture. The Paborita mixture passes through the kneader a number of times then laid on the cutting table. A cutting die is used so that in one cut 192 pcs. are made. The excess mixture is sent back to the kneader.

The formed Paborita rounds are then laid out on baking trays. The baking trays match the cutting dies such that each baking tray accommodates 192 pcs. A little cooking oil is wiped on the baking trays prior to laying of the Paborita rounds.

The trays are then placed in the brick oven for baking. The oven can accommodate 30 trays in one baking cycle. The Paborita is then baked for 20 minutes. Wood is used as fuel and this gives RB Biscuit Co.’s Paborita a distinctive taste. The mixer, the person who operates the mixer, is also the baker.

When baked, the Paborita are placed in biscuit bins were it is cooled then packed in small plastic packs at 12 pcs. per pack. The Paborita packs are then placed in a big plastic bag at 30 packs per bag. The Paborita bags are then stored for the next delivery.


ANNEX D shows the Business Process Workflow of the Paborita business.

8. Business Requirements

a. Staffing and Costs

The Production Section of the business shall have a total of 9 employees. The Production Supervisor and 8 workers.

The Administration and Sales Section is headed by Gina Belgado, the wife of Roque Belgado. She has a staff of 5 employees.

Roque Belgado is President of the company.

The staffing compliment of the business and the salary schedule is shown in ANNEX E.

The staff costs will not drastically increase even if production in increased from 3,000 bags per month to 5,600 bags per month. Actually the current production staff is overpaid. Actual work done is only about 4-5 hours but they are still paid for an 8-hour day.

b. Business Organization

The organizational structure of RB Biscuit Co. is very simple and lean. This is shown below.


PresidentRoque Belgado

Administration & Sales ManagerGina Belgado

Production SupervisorJose Icayan

Secretary/ Admin Clerk

Bookkeeper

Driver / Sales

Delivery Helper Packers (3)

Assistant Kneader

Kneader/ Cutter

Mixer/ Baker

Roque Belgado, as President, has general management responsibility. Though the Sales function is directly under the Administration & Sales Manager, Roque Belgado shall be deeply involved in Marketing. He will principally be responsible for opening new markets.

Gina Belgado, the Administration and Sales Manager, shall be responsible for the office.

Jose Icayan, who was the baker in the previous bakery of Belgado with his cousin, will be responsible for production.

c. Equipment

The company‘s equipment and other assets, exclusive of the land, are enumerated in ANNEX F, including the value for each. The critical equipment for RB Biscuit Co. is the brick oven. The oven structure itself is good for 10 years. However, every 3-5 years the brick lining have to be replaced depending on the use of the oven and this is a substantial investment. The current oven’s bricks are still good for another 2 years.

d. Space Requirement

The bakery, where RB Biscuit Co. is presently operating, was the facility used when Belgado and Villania were still partners. Belgado offered to buy the land and the bakery within the property. The loan provided by Rodolfo Santiago was used to buy the land and all the physical structures, including the brick oven.

The bakery layout is shown in ANNEX G.

The lot still has some empty and unused space. If business demand increases drastically, the bakery can be expanded with the construction of another brick oven.

e. Other Costs


Utility

Stockman/ Bagger

Sealer/ Packer

The Projected Other Costs (operating costs) of the business for the next 12 months is shown in ANNEX H. The major operating expenses are power, gas/delivery and taxes & licenses. In the direct material costings, the water used as direct material is for the biscuit mixture. The water in Other Costs is for equipment & facilities washing and human cleansing use.

f. Business Inputs

The projected raw material (business inputs) requirements for the next 12 months are enumerated in ANNEX I. The raw material requirements are based on the increasing production during the year. The major raw material component is the wheat flour and the wood used as fuel in the brick oven.

g. Material Costs

The costs of the business inputs enumerated in (f) above is shown in ANNEX J.

h. Depreciation

The depreciation computation of the company’s physical assets is shown in the depreciation table in ANNEX K.

i. Interest Cost

The company has a P1.5 million loan from Rodolfo Santiago. This carries an interest of 15% per annum and payable over a 3-year period. Twenty one (21) amortizations have already been paid by RB Biscuit Co. and only 15 months remain. The interest costs and amortization computation table for the next 12 months is shown in ANNEX L.

8. Sales and Costs Plan

The Sales and Costs Plan (or Projected Income Statement) of RB Biscuit Co. for the next 12 months is shown in ANNEX M. Based on the Sales and Costs Plan, the company is targeting to increase production and sales to 5,600 bags per month of Paborita and Ogoy-ogoy. The projected revenues for the next 12 months is P14 million which will earn a projected net profit of around P1.25 million. This is expected to be realized with almost all expenses not drastically increasing except for direct materials.

9. Cash Flow Plan


The Cash Flow Plan for the next 12 months is shown in ANNEX N. Based on the cash flow plan, the business will not experience funds problem for its operations provided that it can scale up production and sales immediately with the infusion of around P500,000 in funds.

The achievement of the cash flow plan, aside from increasing sales, is based on collection efficiency. The company has not really experienced major collection problems, mainly because of its one-up/one-down delivery and collection policy. Products delivered on the first week have to be paid by the next delivery. If the client does not pay for the previous weeks’ orders, the products for the second week are not given to him.

10. Conclusion - Intent

Based on the evaluation of the market, the business has potential to generate more profits. However, this is premised on scaling up production and sales immediately. Clients’ demand has been increasing but RB Biscuit Co. lacks the funds to be able to increase production at once. Other wholesalers in current public markets that the company serves have been asking that RB Biscuit Co. also deliver to them. Further, the company assesses that it can penetrate other public markets in other municipalities or cities.

Secondly, the company plans to start making a second product, the Ogoy-ogoy biscuit. The technology for producing Ogoy-ogoy is basically the same as in the Paborita production. Further, since RB Biscuit Co. already has the distribution set-up for its Paborita, the Ogoy-ogoy will just piggy-back on this distribution system.

It is the intention of RB Biscuit Co. to borrow P500,000 to fund this expansion program. Given the funds, the company can immediately scale up production and serve the increasing market. Once the increased sales are realized, RB Biscuit Co. will be very cash positive as shown in the Cash Flow Plan. The main reason it is experiencing cash flow problems is because it is operating below capacity. Once production capacity is optimized, then much cash will flow in.

ANNEX O shows the amortization table for a P500,000 loan at an interest of 12% p.a. and payable over a 2-year period. RB Biscuit Co.’s Cash Flow Plan shows that the company can easily pay for the monthly installments of P23,000. Further, the sales and costs plan also shows that it can absorb the interest on the loan.


RB Biscuit Co. knows that it can grow and expand. All it needs is a little credit facility to move forward.


ANNEX A

RB BISCUIT CO.

SALES & COSTS PLAN - PABORITA - CURRENT OPERATIONS

Month

1 2 3 4 5 6 7 8 9 10 11 12 Annual

Sales:

Quantity-Paborita (bags) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Quantity-Ogoy-ogoy (bags) 0 0 0 0 0 0 0

Wholesale Price per Bag 225 225 225 225 225 225 225 225 225 225 225 225

TOTAL SALES 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 8,100,000

Direct Material Costs - Paborita 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 3,647,293

Direct Material Costs - Ogoy-ogoy - - - - - - 0

Direct Labor Costs 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 665,440

TOTAL DIRECT COSTS 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 4,312,733

GROSS MARGIN 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 3,787,267

Indirect Costs

Staff Costs 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 878,560

Other Costs 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 726,000

Depreciation 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 1,858,480

TOTAL INDIRECT COSTS 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 3,463,040

NET PROFIT BEFORE FINANCING 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 324,227

Interest Costs 9,373 8,840 8,301 7,754 7,201 6,641 6,074 5,500 4,919 4,331 3,735 3,131 75,801

NET PROFIT FROM OPERATIONS 17,646 18,179 18,718 19,265 19,818 20,378 20,945 21,519 22,100 22,688 23,284 23,887 248,426

Provision for Income Tax 6,176 6,363 6,551 6,743 6,936 7,132 7,331 7,532 7,735 7,941 8,149 8,361 86,949

NET PROFIT 11,470 11,816 12,167 12,522 12,881 13,245 13,614 13,987 14,365 14,747 15,135 15,527 161,477


ANNEX B

RB BISCUIT CO.

SALES & COSTS PLAN - PABORITA - ONE-SHIFT MAXIMUM CAPACITY

Month

1 2 3 4 5 6 7 8 9 10 11 12 Annual

Sales:

Quantity-Paborita (bags) 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 69,888

Quantity-Ogoy-ogoy (bags) 0 0 0 0 0 0 0

Wholesale Price per Bag 225 225 225 225 225 225 225 225 225 225 225 225

TOTAL SALES 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 1,310,400 15,724,800

Direct Material Costs - Paborita 397,246 397,246 397,246 397,246 397,246 397,246 397,246 397,24

6 397,246 397,24

6 397,24

6 397,24

6 4,766,952

Direct Material Costs - Ogoy-ogoy - - - - - - 0

Direct Labor Costs 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 919,944

TOTAL DIRECT COSTS 473,90

8 473,90

8 473,90

8 473,90

8 473,90

8 473,90

8 473,908 473,90

8 473,908 473,90

8 473,90

8 473,90

8 5,686,896

GROSS MARGIN 836,49

2 836,49

2 836,49

2 836,49

2 836,49

2 836,49

2 836,492 836,49

2 836,492 836,49

2 836,49

2 836,49

2 10,037,904

Indirect Costs

Staff Costs 92,911 92,911 92,911 92,911 92,911 92,911 92,911 92,911 92,911 92,911 92,911 92,911 1,114,928

Other Costs 108,20

8 108,20

8 108,20

8 108,20

8 108,20

8 108,20

8 108,208 108,20

8 108,208 108,20

8 108,20

8 108,20

8 1,298,496

Depreciation 189,07

3 189,07

3 189,07

3 189,07

3 189,07

3 189,07

3 189,073 189,07

3 189,073 189,07

3 189,07

3 189,07

3 2,268,880

TOTAL INDIRECT COSTS 390,19

2 390,19

2 390,19

2 390,19

2 390,19

2 390,19

2 390,192 390,19

2 390,192 390,19

2 390,19

2 390,19

2 4,682,304

NET PROFIT BEFORE FINANCING 446,30

0 446,30

0 446,30

0 446,30

0 446,30

0 446,30

0 446,300 446,30

0 446,300 446,30

0 446,30

0 446,30

0 5,355,600

Interest Costs 9,373 8,840 8,301 7,754 7,201 6,641 6,074 5,500 4,919 4,331 3,735 3,131 75,801

NET PROFIT FROM OPERATIONS 436,92

7 437,46

0 437,99

9 438,54

6 439,09

9 439,65

9 440,226 440,80

0 441,381 441,96

9 442,56

5 443,16

9 5,279,799

Provision for Income Tax 152,92

5 153,11

1 153,30

0 153,49

1 153,68

5 153,88

1 154,079 154,28

0 154,483 154,68

9 154,89

8 155,10

9 1,847,930

NET PROFIT 284,003

284,349

284,700

285,055

285,414

285,778 286,147

286,520 286,898

287,280

287,667

288,060 3,431,869



ANNEX C

RB BISCUIT CO.CUSTOMERS & SALES

PABORITA Current Sales - PABORITA Year 1 Target Sales - PABORITA Year 2 Target Sales - PABORITA Year 3 Target Sales – PABORITA

CUSTOMERS / OUTLETS

Bags/ Wk

Bags/ Mo

Price/ Bag

Sales/ Mo.

Bags/ Wk

Bags/ Mo

Price/ Bag Sales/ Mo.

Bags/ Wk

Bags/ Mo

Price/

Bag Sales/ Mo. Bags/

WkBags/

MoPrice/ Bag Sales/ Mo.

LAGUNA LAGUNA

1Sta. Rosa (factory) 100 400 225

90,000 1

Sta. Rosa (factory) 120 480 225 108,000 130 520 225 117,000 140 560 225 126,000

2 Biñan 60 240 225 54,00

0 2 Biñan 70 280 225 63,000 80 320 225 72,000 90 360 225 81,000

3 Cabuyao 80 320 225 72,00

0 3 Cabuyao 90 360 225 81,000 100 400 225 90,000 110 440 225 99,000

4 Calamba 80 320 225 72,00

0 4 Calamba 90 360 225 81,000 100 400 225 90,000 110 440 225 99,000

5 San Pablo 40 160 225 36,00

0 5 San Pablo 50 200 225 45,000 60 240 225 54,000 70 280 225 63,000

6 Los Baños 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

7 Alaminos 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

Total-Laguna 360

1,440

Total-Laguna 460 1,840 414,000 530 2,120 477,000 600 2,400 540,000

BATANGAS BATANGAS

6Batangas & Lipa City 90 360 225

81,000 8

Batangas & Lipa City 100 400 225 90,000 120 480 225 108,000 130 520 225 117,000

7 Sto. Tomas 60 240 225 54,00

0 9 Sto. Tomas 70 280 225 63,000 80 320 225 72,000 90 360 225 81,000

8 Tanauan 20 80 225 18,00

0 10 Tanauan 30 120 225 27,000 30 120 225 27,000 40 160 225 36,000

11 San Juan 0 225 0 20 80 225 18,000 30 120 225 27,000

12 Ibaan 0 225 0 20 80 225 18,000 30 120 225 27,000Total-

Batangas 170 680 Total-

Batangas 200 800 180,000 270 1,080 243,000 320 1,280 288,000

CAVITE CAVITE

9 Carmona 40 160 225 36,00

0 13 Carmona 50 200 225 45,000 60 240 225 54,000 70 280 225 63,000

10 GMA 40 160 225 36,00

0 14 GMA 50 200 225 45,000 60 240 225 54,000 70 280 225 63,000

11 Trece Martires 20 80 225 18,00

0 15Trece Martires 30 120 225 27,000 40 160 225 36,000 50 200 225 45,000

12 Silang 20 80 225 18,00 16 Silang 30 120 225 27,000 40 160 225 36,000 50 200 225 45,000


0

17 Naic 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

18 Indang 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

19 Alfonso 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

Total-Cavite 150 480 Total-Cavite 190 760 171,000 260 1,040 234,000 330 1,320 297,000

METRO MANILA

METRO MANILA

13 Jun Villania 100 400 225 90,00

0 20 Jun Villania 120 480 225 108,000 150 600 225 135,000 180 720 225 162,000

MINDORO

21 Calapan 0 225 0 0 225 0 30 120 225 27,000

22Puerto Galera 0 225 0 0 225 0 30 120 225 27,000

Total -

Mindoro 0 0 0 0 0 0 60 240 54,000

QUEZON

23 Sariaya 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

24 Tiaong 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

25 Candelaria 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

26 Lucena 10 40 225 9,000 20 80 225 18,000 30 120 225 27,000

Total-

Quezon 40 160 36,000 80 320 72,000 120 480 108,000

CAMARINES NORTE

27 Sta. Elena 0 225 0 20 80 225 18,000 30 120 225 27,000

28 Labo 0 225 0 20 80 225 18,000 30 120 225 27,000

29 Daet 0 225 0 20 80 225 18,000 30 120 225 27,000

Total-Cam

Norte 0 0 0 60 240 54,000 90 360 81,000

TOTAL 780 3,000 675,00

0 TOTAL 1,010 4,040 909,000 1,350 5,400 1,215,000 1,700 6,800 1,530,000

ANNUAL SALES - PABORITA 8,100,000 10,908,000 14,580,000 18,360,000


OGOY-OGOY Current Sales - OGOY-OGOY Year 1 Target Sales-OGOY-OGOY Year 2 Target Sales-OGOY-OGOY Year 3 Target Sales-OGOY-OGOY

CUSTOMERS / OUTLETS

Bags/ Wk

Bags/ Mo

Price/ Bag

Sales/ Mo.

Bags/ Wk

Bags/ Mo

Price/ Bag Sales/ Mo.

Bags/ Wk

Bags/ Mo

Price/

Bag Sales/ Mo. Bags/

WkBags/

MoPrice/ Bag Sales/ Mo.

LAGUNA LAGUNA

1Sta. Rosa (factory) 1

Sta. Rosa (factory) 50 200 225 45,000 70 280 225 63,000 90 360 225 81,000

2 Biñan 2 Biñan 30 120 225 27,000 50 200 225 45,000 60 240 225 54,000

3 Cabuyao 3 Cabuyao 30 120 225 27,000 50 200 225 45,000 60 240 225 54,000

4 Calamba 4 Calamba 30 120 225 27,000 50 200 225 45,000 60 240 225 54,000

5 San Pablo 5 San Pablo 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

6 Los Baños 0 225 0 20 80 225 18,000 30 120 225 27,000

7 Alaminos 0 225 0 20 80 225 18,000 30 120 225 27,000

Total-Laguna Total-

Laguna 160 640 144,000 290 1,160 261,000 370 1,480 333,000

BATANGAS BATANGAS

6Batangas & Lipa City 8

Batangas & Lipa City 50 200 225 45,000 70 280 225 63,000 90 360 225 81,000

7 Sto. Tomas 9 Sto. Tomas 30 120 225 27,000 40 160 225 36,000 50 200 225 45,000

8 Tanauan 10 Tanauan 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

11 San Juan 0 225 0 10 40 225 9,000 20 80 225 18,000

12 Ibaan 0 225 0 10 40 225 9,000 20 80 225 18,000Total-

Batangas Total-

Batangas 100 400 90,000 160 640 144,000 220 880 198,000

CAVITE CAVITE

9 Carmona 13 Carmona 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

10 GMA 14 GMA 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

11 Trece Martires 15Trece Martires 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

12 Silang 16 Silang 20 80 225 18,000 30 120 225 27,000 40 160 225 36,000

17 Naic 0 225 0 10 40 225 9,000 20 80 225 18,000

18 Indang 0 225 0 10 40 225 9,000 20 80 225 18,000

19 Alfonso 0 225 0 10 40 225 9,000 20 80 225 18,000

Total-Cavite Total-Cavite 80 320 72,000 150 600 135,000 220 880 198,000

METRO MANILA

METRO MANILA


13 Jun Villania 20 Jun Villania 60 240 225 54,000 80 320 225 72,000 120 480 225 108,000

MINDORO

21 Calapan 0 225 0 0 225 0 30 120 225 27,000

22Puerto Galera 0 225 0 0 225 0 30 120 225 27,000

Total -

Mindoro 0 0 0 0 0 60 240 54,000

QUEZON

23 Sariaya 0 225 0 10 40 225 9,000 20 80 225 18,000

24 Tiaong 0 225 0 10 40 225 9,000 20 80 225 18,000

25 Candelaria 0 225 0 10 40 225 9,000 20 80 225 18,000

26 Lucena 0 225 0 10 40 225 9,000 20 80 225 18,000

Total-

Quezon 0 0 0 40 160 36,000 80 320 72,000

CAMARINES NORTE

27 Sta. Elena 0 225 0 10 40 225 9,000 20 80 225 18,000

28 Labo 0 225 0 10 40 225 9,000 20 80 225 18,000

29 Daet 0 225 0 10 40 225 9,000 20 80 225 18,000

Total-

Cam Norte 0 0 0 30 120 27,000 60 240 54,000

TOTAL TOTAL 400 1,600 360,000 750 3,000 675,000 1,130 4,520 1,017,000

ANNUAL SALES - OGOY-OGOY 4,320,000 8,100,000 12,204,000

GRAND TOTAL - BAGS 1,410 5,640 2,100 8,400 2,830 11,320

GRAND TOTAL - MONTHLY SALES 1,269,000 1,890,000 2,547,000

GRAND TOTAL - ANNUAL SALES 15,228,000 22,680,000 30,564,000


ANNEX D

RB BISCUIT CO.

BUSINESS PROCESS WORKFLOW

Sample Enterprise Enhancement PlanRB Biscuit Co.

MarketingPlanning:Prod PlanPurchasing

Mixing KneadingCutting & Lay out

Packing & PackagingBaking

Delivery Collection

P r o d u c t i o n / O p e r a t I o n s

A d m i n i s t r a t i o n / M a n a g e m e n t

22

ANNEX E

STAFF COSTS

STAFF REQUIREMENT STAFF COSTS

No. Designation QualificationBasic Salary Per Month

SSS, PH, PI(12% of Basic)

13th

Month PayTotal Salary Per Month

Total Salary Per Year

Production Staff1 Production Supv. 12,000 1,440 1,000 14,440 173,2802 Mixer/Baker 10,000 1,200 833 12,033 144,4003 Kneader/Cutter 7,800 936 650 9,412 112,9444 Asst. Kneader 6,500 780 542 7,848 94,1725 Packers (3) 15,600 1,872 1,300 18,798 225,5766 Sealer/Packer 5,720 686 477 6,909 82,9097 Stockman/Bagger 5,980 718 498 7,222 86,663

TOTAL 76,662 919,944

Administration & Marketing Staff1 President 30,000 3,600 2,500 36,100 433,2002 Admin & Sales Mgr. 20,000 2,400 1,667 24,067 288,8003 Sec/Admin Clerk 7,280 874 607 8,786 105,4354 Bookkeeper 7,280 874 607 8,786 105,4355 Utility 5,720 686 477 6,909 82,9096 Driver/Sales 6,500 780 542 7,848 94,1727 Delivery Asst. 5,200 624 433 6,283 75,400

TOTAL 98,779 1,185,351

TOTAL STAFF COSTS 175,441 2,105,295


ANNEX F

EQUIPMENT

CURRENT ADDITIONAL EQUIPMENT NEEDED

Type of Equipment Specifications Qty Unit Cost Cost QtyUnit Cost Cost

PRODUCTION

Mixer 50 kg cap., single offset rotary blade, 2 Hp motor, 220v, 1Ø 1 43,000 43,000

Kneading Machine 50 kg cap., single roller type, 1 Hp motor, 220v, 1Ø 1

50,000

50,000

Cutting dies - Paborita Stainless Steel, 1.25"Ø per out, 12x16 outs 4

8,000

32,000 4

10,000

40,000

Cutting dies - Ogoy-ogoy Stainless Steel, 0.5"x2.0" per out, 24"x11", 256 outs 4 8,000

32,000

Brick Oven Brick Type, wood fired, 12' x 12' oven area, 3 levels 1

80,000

80,000

Oven Paddle Wood, 12' long 2 8

00 1,6

00

Kneading Table 3'x8', stainless steel tabletop 1 12,0

00 12,0

00

Packing Table 4'x8', enameled tabletop 1 8,0

00 8,0

00

Tray Carts 15"x20", 5 levels, square mech, w/ caster wheels 20

4,500

90,000 10

5,000

50,000

Baking Trays 18" x 24", Aluminum 60 550 33,000 30 700 21,000

Biscuit Bin 2'x2'x1', enameled sheets, w/ caster wheels 5

4,000

20,000 4

5,000

20,000

Sealing Machine Induction type, 12", foot-triggered 1 17,000 17,000

Sub-Total 386,600 163,000STORAGE ROOM

Storage Rack Constructed on 3 sides of storage room. 1 25,000 25,000

Push cart Heavy duty type 1 1,800 1,800

Sub-Total 26,800 SALES

Delivery Van Isuzu closed van, second hand 1 280,000 280,000 Push cart Heavy duty type 1 1,800 1,800

Sub-Total 281,800 ADMINISTRATION

Airconditioning unit Window type, 1.5 Hp 1 16,000 16,000

Sub-Total 16,000 FURNITURE & FIXTURES

Executive Table 2 1,300 2,600 Clerical Table 2 800 1,600 Office chairs 4 350 1,400 Conference Table & 4 chairs 1 3,500 3,500 Visitors Chairs 4 250 1,000 Filing Cabinet 1 6,000 6,000

Sub-Total 16,100 TOTAL 727,300 163,000


ANNEX G

BAKERY LAYOUT

Sample Enterprise Enhancement PlanRB Biscuit Co.

Office Storage Room

RacksR

acks

Racks

Kne

adin

g &

Cut

ting

Ta

ble

Brick Oven

Kneader

Pac

king

Tab

le

Mixer

WashArea

Open Space for Future Expansion

Dri

vew

ay

Biscuit Bin

Tray Carts

25

ANNEX H

OTHER COSTS

Month

Inputs 1 2 3 4 5 6 7 8 9 10 11 12 Annual

Power 20,000 20,000 20,00

0 20,00

0 20,00

0 20,00

0 20,00

0 20,00

0 20,00

0 20,00

0 20,00

0 20,00

0 240,00

0

Water 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 60,00

0

Gas / Delivery 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 30,00

0 360,00

0

Transportation 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 8,00

0 96,00

0

Repairs & Maintenance 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 60,00

0

Taxes & Licenses 22,50

0 22,50

0 22,50

0 23,40

0 23,40

0 23,40

0 24,30

0 24,30

0 24,30

0 25,38

0 25,38

0 25,38

0 286,74

0

Office Supplies 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 4,00

0 48,00

0

Representation 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 60,00

0

Miscellaneous 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 5,00

0 60,00

0

Total 104,50

0 104,50

0 104,50

0 105,40

0 105,40

0 105,40

0 106,30

0 106,30

0 106,30

0 107,38

0 107,38

0 107,38

0 1,270,74

0


ANNEX I

BUSINESS INPUTS

Q u a n t i t y P e r M o n t h Per Year

1 2 3 4 5 6 7 8 9 10 11 12Production/sales – Paborita

(bags)3.700 3.700 3.700 3,800 3,800 3,800 3,900 3,900 3,900 4,040 4,040 4,040

Inputs Price/UnitWheat Flour (kg) 32.00/kg 6,167 6,167 6,167 6,333 6,333 6,333 6,500 6,500 6,500 6,733 6,733 6,733 77,200 Wheat Flour Knead (kg)

32.00/kg987 987 987 1,013 1,013 1,013 1,040 1,040 1,040 1,077 1,077 1,077 12,352

White Sugar (kg) 42.00/kg 370 370 370 380 380 380 390 390 390 404 404 404 4,632 Cooking Oil (li) 86.84/li 62 62 62 63 63 63 65 65 65 67 67 67 772 Yeast (gm) 0.7/gm 1,233 1,233 1,233 1,267 1,267 1,267 1,300 1,300 1,300 1,347 1,347 1,347 15,440 Water (li) 1.05/li 1,850 1,850 1,850 1,900 1,900 1,900 1,950 1,950 1,950 2,020 2,020 2,020 23,160 Plastic Bag-small (pcs) 0.25/pc 111,000 111,000 111,000 114,000 114,000 114,000 117,000 117,000 117,000 121,200 121,200 121,200 1,389,600 Plastic Bag-big (pcs) 1.20/pc 123 123 123 127 127 127 130 130 130 135 135 135 1,544 Label (pcs) 0.15/pc 111,000 111,000 111,000 114,000 114,000 114,000 117,000 117,000 117,000 121,200 121,200 121,200 1,389,600 Wood (cum) 400/cum 185 185 185 190 190 190 195 195 195 202 202 202 2,316

Production/sales – Ogoy-ogoy (bags)

1,300 1,300 1,300 1,400 1,400 1,400 1,500 1,500 1,500 1,600 1,600 1,600

Inputs Price/UnitWheat Flour (kg) 32.00/kg 2,167 2,167 2,167 2,333 2,333 2,333 2,500 2,500 2,500 2,667 2,667 2,667 29,000 Wheat Flour Knead (kg)

32.00/kg347 347 347 373 373 373 400 400 400 427 427 427 4,640

White Sugar (kg) 42.00/kg 130 130 130 140 140 140 150 150 150 160 160 160 1,740 Brown Sugar (kg) 38.00/hg 520 520 520 560 560 560 600 600 600 640 640 640 6,960 Cooking Oil (li) 86.84/li 22 22 22 23 23 23 25 25 25 27 27 27 290 Yeast (gm) 0.7/gm 433 433 433 467 467 467 500 500 500 533 533 533 5,800 Water (li) 1.05/li 650 650 650 700 700 700 750 750 750 800 800 800 8,700 Plastic Bag-small (pcs) 0.25/pc 39,000 39,000 39,000 42,000 42,000 42,000 45,000 45,000 45,000 48,000 48,000 48,000 522,000 Plastic Bag-big (pcs) 1.20/pc 43 43 43 47 47 47 50 50 50 53 53 53 580 Label (pcs) 0.15/pc 39,000 39,000 39,000 42,000 42,000 42,000 45,000 45,000 45,000 48,000 48,000 48,000 522,000 Wood (cum) 400/cum 65 65 65 70 70 70 75 75 75 80 80 80 870


ANNEX J

MATERIAL COSTS

M a t e r i a l C o s t s P e r M o n t h Per Year

1 2 3 4 5 6 7 8 9 10 11 12Production/sales 3.700 3.700 3.700 3,800 3,800 3,800 3,900 3,900 3,900 4,040 4,040 4,040 46,320

Inputs - PaboritaWheat Flour 197,333 197,333 197,333 202,667 202,667 202,667 208,000 208,000 208,000 215,467 215,467 215,467 2,470,400Wheat Flour (Kneading) 31,573 31,573 31,573 32,427 32,427 32,427 33,280 33,280 33,280 34,475 34,475 34,475 395,264White Sugar 15,540 15,540 15,540 15,960 15,960 15,960 16,380 16,380 16,380 16,968 16,968 16,968 194,544Cooking Oil 5,355 5,355 5,355 5,500 5,500 5,500 5,645 5,645 5,645 5,847 5,847 5,847 67,042Yeast 863 863 863 887 887 887 910 910 910 943 943 943 10,808Water 1,947 1,947 1,947 2,000 2,000 2,000 2,053 2,053 2,053 2,126 2,126 2,126 24,379Plastic Bag (small) 27,750 27,750 27,750 28,500 28,500 28,500 29,250 29,250 29,250 30,300 30,300 30,300 347,400Plastic Bag (big) 148 148 148 152 152 152 156 156 156 162 162 162 1,853Label 16,650 16,650 16,650 17,100 17,100 17,100 17,550 17,550 17,550 18,180 18,180 18,180 208,440Wood 74,000 74,000 74,000 76,000 76,000 76,000 78,000 78,000 78,000 80,800 80,800 80,800 926,400

Total Paborita 4,692,850

Production/sales 1,300 1,300 1,300 1,400 1,400 1,400 1,500 1,500 1,500 1,600 1,600 1,600 17,400

Inputs – Ogoy-ogoyWheat flour 69,333 69,333 69,333 74,667 74,667 74,667 80,000 80,000 80,000 85,333 85,333 85,333 928,000Wheat flour used in kneading 11,093 11,093 11,093 11,947 11,947 11,947 12,800 12,800 12,800 13,653 13,653 13,653 148,480White sugar 5,460 5,460 5,460 5,880 5,880 5,880 6,300 6,300 6,300 6,720 6,720 6,720 73,080Brown sugar 19,760 19,760 19,760 21,280 21,280 21,280 22,800 22,800 22,800 24,320 24,320 24,320 264,480Cooking oil 1,882 1,882 1,882 2,026 2,026 2,026 2,171 2,171 2,171 2,316 2,316 2,316 25,184Yeast 303 303 303 327 327 327 350 350 350 373 373 373 4,060Water 684 684 684 737 737 737 789 789 789 842 842 842 9,158Plastic Bag (small) 9,750 9,750 9,750 10,500 10,500 10,500 11,250 11,250 11,250 12,000 12,000 12,000 130,500Plastic Bag (big) 52 52 52 56 56 56 60 60 60 64 64 64 696Label 5,850 5,850 5,850 6,300 6,300 6,300 6,750 6,750 6,750 7,200 7,200 7,200 78,300Wood 26,000 26,000 26,000 28,000 28,000 28,000 30,000 30,000 30,000 32,000 32,000 32,000 348,000

Total Ogoy-ogoy 2,027,338

TOTAL 6,720,188


ANNEX K

DEPRECIATION TABLE

CURRENT ADDITIONAL EQUIPMENT NEEDED

Investment Item Value

Yrs. Of

UseAnnual

Depreciation Total QtyUnit Cost Value

Yrs. Of

UseAnnual Dep'n

PRODUCTION

Mixer 43,000 5 8,600

Kneading Machine 50,000 5 10,000

Cutting dies - Paborita 32,000 3 10,667

Cutting dies - Ogoy-ogoy - 4 10,000 40,000 3 13,333

Brick Oven 80,000 10 8,000

Oven Paddle 1,600 2 800

Kneading Table 12,000 5 2,400

Packing Table 8,000 5 1,600

Tray Carts 90,000 5 18,000 10 5,000 50,000 5 10,000

Baking Trays 33,000 5 6,600 30 700 21,000 5 4,200

Biscuit Bin 20,000 3 6,667 4 5,000 20,000 3 6,667

Sealing Machine 17,000 5 3,400

76,733 34,200

STORAGE ROOM

Storage Rack 25,000 5 5,000

Push cart 1,800 5 360

5,360

SALES

Delivery Van 330,000 5 66,000

Push cart 1,800 5 360

66,360

ADMINISTRATION

Airconditioning unit 16,000 5 3,200 3,200

FURNITURE & FIXTURES

Executive Table 2,600 5 520

Clerical Table 1,600 5 320

Office chairs 1,400 5 280 Conference Table & 4 chairs 3,500 5 700

Visitors Chairs 1,000 5 200

Filing Cabinet 6,000 5 1,200

3,220

TOTAL 154,873 131,000 34,200


ANNEX L

INTEREST COSTS

Month

Product 1 2 3 4 5 6 7 8 9 10 11 12

FAMILY LOAN:PrincipalInterest rateInterest costInstallment

BANK LOANPrincipal 500,000 481,463 462,741 443,832 424,733 405,444 385,962 366,285 346,411 326,338 306,065 285,589 Interest rate 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12%Interest cost 5,000 4,815 4,627 4,438 4,247 4,054 3,860 3,663 3,464 3,263 3,061 2,856 Installment 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537

OTHER LOANSPrincipal 749,826 707,201 664,043 620,346 576,102 531,305 485,949 440,025 393,527 346,448 298,781 250,518 Interest rate 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%

Interest cost 9,373 8,840 8,301 7,754 7,201 6,641 6,074 5,500 4,919 4,331 3,735 3,131 Installment 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998

TOTALSDEBT SERVICE

Installment 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 Interest cost 14,373 13,655 12,928 12,193 11,449 10,696 9,934 9,163 8,383 7,594 6,795 5,987


ANNEX M

SALES AND COSTS PLAN

Month1 2 3 4 5 6 7 8 9 10 11 12 Annual

Sales: Paborita (bags) 3,700 3,700 3,700 3,800 3,800 3,800 3,900 3,900 3,900 4,040 4,040 4,040 46,320Ogoy-ogoy (bags 1,300 1,300 1,300 1,400 1,400 1,400 1,500 1,500 1,500 1,600 1,600 1,600 17,400Wholesale Price per Bag 225 225 225 225 225 225 225 225 225 225 225 225TOTAL SALES 1,125,000 1,125,000 1,125,000 1,170,000 1,170,000 1,170,000 1,215,000 1,215,000 1,215,000 1,269,000 1,269,000 1,269,000 14,337,000

Direct Material Costs-Paborita 374,861 374,861 374,861 384,992 384,992 384,992 395,123 395,123 395,123 409,307 409,307 409,307 4,692,850Direct Material Costs-Ogoy-ogoy 151,468 151,468 151,468 163,119 163,119 163,119 174,771 174,771 174,771 186,422 186,422 186,422 2,027,338Direct Labor Costs 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 919,944

Total Direct Cost 602,990 602,990 624,773 624,773 624,773 646,556 646,556 646,556 672,391 672,391 672,391 7,640,132 11,952,351

GROSS MARGIN 522,010 522,010 522,010 545,227 545,227 545,227 568,444 568,444 568,444 596,609 596,609 596,609 6,696,868

Indirect CostsStaff Costs 98,779 98,779 98,779 98,779 98,779 98,779 98,779 8,779 98,779 98,779 98,779 98,779 1,185,351Other Costs 104,500 104,500 104,500 105,400 105,400 105,400 106,300 106,300 106,300 107,380 107,380 107,380 1,270,740Depreciation 15,756 15,756 15,756 15,756 15,756 15,756 15,756 15,756 15,756 15,756 15,756 15,756 189,073TOTAL INDIRECT COSTS 219,035 219,035 219,035 219,935 219,935 219,935 220,835 220,835 220,835 221,915 221,915 221,915 2,645,165

NET PROFIT BEFORE FINANCING 302,974 302,974 302,974 325,291 325,291 325,291 347,609 347,609 347,609 374,693 374,693 374,693 4,051,704

Interest Costs 14,373 13,655 12,928 12,193 11,449 10,696 9,934 9,163 8,383 7,594 6,795 5,987 123,15

0

NET PROFIT FROM OPERATIONS 288,601 289,320 290,046 313,099 313,843 314,596 337,675 338,446 339,226 367,099 367,898 368,706 3,928,554

Provision for Income Tax 101,010 101,262 101,516 109,585 109,845 110,108 118,186 118,456 118,729 128,485 128,764 129,047 1,374,994

NET PROFIT 187,591 188,058 188,530 203,514 203,998 204,487 219,489 219,990 220,497 238,615 239,134 239,659 2,553,560


ANNEX N

CASH FLOW PLAN

1 2 3 4 5 6 7 8 9 10 11 12

1 Cash at the Beginning of the month 53,908 533,093 675,027 816,706 972,634 ,128,302 1,283,707 ,453,351 ,622,725 1,791,826 1,978,256 2,164,407

2 Cash in from sales 1,125,000 1,125,000 1,125,000 1,170,000 1,170,000 1,170,000 1,215,000 1,215,000 1,215,000 1,269,000 1,269,000 1,269,000

3 Any other cash in 500,000

4 TOTAL CASH IN 1,678,908 1,658,093 1,800,027 1,986,706 2,142,634 2,298,302 2,498,707 2,668,351 2,837,725 3,060,826 3,247,256 3,433,407

5 Cash out for direct costs

- Direct Materials 526,328 526,328 526,328 548,111 548,111 548,111 569,894 569,894 569,894 595,729 595,729 595,729

- Direct Labor 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662

Total Cash Out for Direct Costs 602,990 602,990 602,990 624,773 624,773 624,773 646,556 646,556 646,556 672,391 672,391 672,391

6 Cash out for indirect costs

- Staff Costs 98,779 98,779 98,779 98,779 98,779 98,779 98,779 98,779 98,779 98,779 98,779 98,779

- Other Costs 104,500

104,500

104,500

105,400

105,400

105,400

106,300

106,300

106,300

107,380

107,380

107,380

- Loan Installment 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535

Total Cash Out for Indirect Costs 278,814

278,814

278,814

279,714

279,714

279,714

280,614

280,614

280,614

281,694

281,694

281,694

7 Any other cash out - Taxes 101,010

101,262

101,516

109,585

109,845

110,108

118,186

118,456

118,729

128,485

128,764

129,047

- Equipment 163,000 -

Total Any Other Cash Out 264,010

101,262

101,516

109,585

109,845

110,108

118,186

118,456

118,729

128,485

128,764

129,047

8 TOTAL CASH OUT 1,145,815

983,066

983,321

1,014,072

1,014,332

1,014,596

1,045,356

1,045,626

1,045,899

1,082,570

1,082,849

1,083,132

9 Cash at the end of the month 533,093 675,027 816,706 972,634 1,128,302 1,283,707 1,453,351 1,622,725 1,791,826 1,978,256 2,164,407 2,350,274


ANNEX O

INTEREST & INSTALLMENT ON NEW LOAN

BANK LOAN

Loan Amount 500,000 500,000

Interest Rate 12% 0.01

Period 24 24

Amortization ($23,536.74) 23,537

Period 0 1 2 3 4 5 6 7 8 9 10 11 12

Start Balance 500,000 481,463 462,741 443,832 424,733 405,444 385,962 366,285 346,411 326,338 306,065 285,589

Amortization 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537

Interest 5,000 4,815 4,627 4,438 4,247 4,054 3,860 3,663 3,464 3,263 3,061 2,856

Principal 18,537 18,722 18,909 19,098 19,289 19,482 19,677 19,874 20,073 20,273 20,476 20,681

End Balance 500,000 481,463 462,741 443,832 424,733 405,444 385,962 366,285 346,411 326,338 306,065 285,589 264,908

Period 13 14 15 16 17 18 19 20 21 22 23 24

Start Balance 264,908 244,020 222,924 201,616 180,096 158,360 136,407 114,234 91,840 69,221 46,377 23,304

Amortization 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537

Interest 2,649 2,440 2,229 2,016 1,801 1,584 1,364 1,142 918 692 464 233

Principal 20,888 21,097 21,308 21,521 21,736 21,953 22,173 22,394 22,618 22,845 23,073 23,304

End Balance 244,020 222,924 201,616 180,096 158,360 136,407 114,234 91,840 69,221 46,377 23,304 0


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