Frugies Smoothies Production Manuscript

Western Mindanao State University
Department of Industrial and Management Engineering

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Feasibility Study on Mixed Fruit and Vegetable Smoothie Production

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ACKNOWLEDGEMENT

This feasibility study would not be made possible without the guidance and love of our
ALMIGHTY GOD. It is true that the harder the struggle, the more glorious the triumph. We, the
FRUGIES group is truly overwhelmed and proud that finally our sacrifices and hardships in complying this
feasibility study as the requirement for accomplishing our course as an Industrial and Management
Engineering student had turned out successfully.
To our family, thank you for the support and understanding. We used to come home late, tired,
sleepy and sometimes out of mind that were not even able to help in the household chores but rather
leaving our bedrooms messy and untidy and our things left unfixed. Thank you so much for the trust and
considerations and all out support.
We would also like to acknowledge the kindness of our beloved best friends who were sincerely
and eagerly involved in helping us to make this study easier. Thank you so much APYUGON FAMILY for
everything, specially to our humble and reliable friend Mr. Cresente Baynos, a.k.a Bossing for
welcoming us to his apartment and allowing us to have our fruit combinations experiment in order for
us to come up with the best and unique combinations of fruit smoothie as our proposed product in this
study. To our classmates who have never doubted our product and stayed loyal in consuming and
buying our product. And of course to the ever supportive IME faculties, thank you for believing in our
capabilities and for inspiring and pushing us to our limits.

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TABLE OF CONTENTS

I PROJECT SUMMARY

1. Introduction------------------------------------------------------------------------------------------------------- 1
2. Project Title---------------------------------------------------------------------------------------------------------2
3. Type of Business Organization---------------------------------------------------------------------------------2
4. Project Proponents/Researchers------------------------------------------------------------------------------2
5. Project Location---------------------------------------------------------------------------------------------------2
6. Estimated Total Project Cost-----------------------------------------------------------------------------------2
7. Mission and Vision------------------------------------------------------------------------------------------------3
8. Short Term Objective and Long Term Objective-----------------------------------------------------------3

9. Specific Objective-------------------------------------------------------------------------------------------------4

10. Limitations and Scope of the Study--------------------------------------------------------------------------5
11. Highlights of the Study------------------------------------------------------------------------------------------6
12. Methodology------------------------------------------------------------------------------------------------------6
13. Leadership Strategy---------------------------------------------------------------------------------------------6

II ORGANIZATION AND MANAGEMENT ASPECT

14. Form of Ownership---------------------------------------------------------------------------------------------7
15. Organizational Structure--------------------------------------------------------------------------------------8
16. Personnel Functions and Qualifications-------------------------------------------------------------------9
17. Feasibility Study Timetable----------------------------------------------------------------------------------16
18. Feasibility Study Gantt chart---------------------------------------------------------------------------------18

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III MARKET ASPECT

19. Product Description-------------------------------------------------------------------------------------------20
20. Target Demand-------------------------------------------------------------------------------------------------20
21. Historical Data--------------------------------------------------------------------------------------------------21
22. Projected Population------------------------------------------------------------------------------------------21
23. Demand Analysis-----------------------------------------------------------------------------------------------22
24. Projected Demand---------------------------------------------------------------------------------------------22
25. Supply Analysis--------------------------------------------------------------------------------------------------23
26. Historical Data of Supply--------------------------------------------------------------------------------------24
27. Projected Supply------------------------------------------------------------------------------------------------24
28. Demand and Supply Analysis---------------------------------------------------------------------------------25
29. Supply, Market Share and New Gap for School Year 2013-2014-----------------------------------26
30. Supply, Projected Market Share and New Gap for School Year 2014-2015----------------------27
35. Product Selling Price------------------------------------------------------------------------------------------32
36. Market Program and Strategy-----------------------------------------------------------------------------33

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IV TECHNICAL ASPECT

37. The Product------------------------------------------------------------------------------------------------------35
A. Nutrition Facts of Fruits and Vegetables---------------------------------------------------------36
38. Product Ingredients--------------------------------------------------------------------------------------------38
39. The Manufacturing Process---------------------------------------------------------------------------------45
40. Qualitative Flow Diagram-----------------------------------------------------------------------------------49
41. Quantitative Flow Diagram----------------------------------------------------------------------------------50
42. Production Capacity and Operation Schedule-----------------------------------------------------------53
43. Equipments------------------------------------------------------------------------------------------------------53
44. Utensils and Materials----------------------------------------------------------------------------------------54
45. Store Location---------------------------------------------------------------------------------------------------55
46. Stall layout-------------------------------------------------------------------------------------------------------56
47. Raw Materials for Gelatin-------------------------------------------------------------------------------------57
48. Raw Materials for Verdi Smoothie--------------------------------------------------------------------------57
49. Raw Materials for CAO Smoothie --------------------------------------------------------------------------58
50. Raw Materials for Pia-Banana Smoothie----------------------------------------------------------------58
51. Utilities------------------------------------------------------------------------------------------------------------59
52. Waste Disposal Procedure-----------------------------------------------------------------------------------60
53. Labor Requirement--------------------------------------------------------------------------------------------60
54. Safety and Maintenance-------------------------------------------------------------------------------------61
55. Total Production Cost-----------------------------------------------------------------------------------------61

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V SOCIO-ECONOMIC ASPECT
56. Agricultural-------------------------------------------------------------------------------------------------------62
57. Job Opportunities----------------------------------------------------------------------------------------------63
58. Standard of Living----------------------------------------------------------------------------------------------64
59. Healthy Living--------------------------------------------------------------------------------------------------65
60. Environmental Considerations------------------------------------------------------------------------------67
61. Government----------------------------------------------------------------------------------------------------68
VI FINANCIAL ASPECT
62. Financial Basis--------------------------------------------------------------------------------------------------69
63. Total Project Cost----------------------------------------------------------------------------------------------70
64. Pre-operating Expenses Breakdown------------------------------------------------------------------------71
65. Working Capital-------------------------------------------------------------------------------------------------71
66. Monthly Cash Flow Statement from November 2013 to March 2014-----------------------------72
67. Monthly Income Statement from November 2013 to March 2014---------------------------------73
68. Monthly Balance Sheet from November 2013 to March 2014 -------------------------------------74
69. Frugies Smoothies Production Monthly Cost of Goods Sold Schedule
November 2013 to March 2014------------------------------------------------------------------------75

70. Frugies Smoothies Production Direct Material Schedule
November 2013 to March 2014-----------------------------------------------------------------------76

71. Financial Analysis for Actual Financial Statement------------------------------------------------------77
72. Test of Profitability--------------------------------------------------------------------------------------------77
a. Gross Profit Margin-----------------------------------------------------------------------------------77

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b. Net Profit Margin--------------------------------------------------------------------------------------78
73. Assets Turnover------------------------------------------------------------------------------------------------79
a. Total Assets Turnover---------------------------------------------------------------------------------79
74. Test of Capital Investment -----------------------------------------------------------------------------------80
a. Return on Investment---------------------------------------------------------------------------------80
b. Payback Period------------------------------------------------------------------------------------------81
75. Break-even Analysis--------------------------------------------------------------------------------------------82
76. Cost Structure and Operating Leverage-------------------------------------------------------------------83
77. Financial Assumption------------------------------------------------------------------------------------------84
78. Frugies Smoothies Production Projected Annual Cash Flow Statement
SY 2013-2014 to SY 2018-2019-------------------------------------------------------------------------85
79. Frugies Smoothies Production Projected Annual Income Statement
SY 2013-2014 to SY 2018-2019------------------------------------------------------------------------86
80. Frugies Smoothies Production Projected Annual Balance Sheet
SY 2013-2014 to SY 2018-2019------------------------------------------------------------------------87
81. Frugies Smoothies Production Projected Annual Cost of Goods Sold
SY 2013-2014 to SY 2018-2019------------------------------------------------------------------------88
82. Frugies Smoothies Production Projected Annual Direct Material Schedule
SY 2013-2014 to SY 2018-2019------------------------------------------------------------------------89
83. Financial Analysis for Projected Financial Statement-------------------------------------------------90
84. Test of Profitability--------------------------------------------------------------------------------------------90
a. Gross Profit Margin-----------------------------------------------------------------------------------90
b. Net Profit Margin------------------------------------------------------------------------------------91

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85. Assets Turnover------------------------------------------------------------------------------------------------92
a. Total Assets Turnover---------------------------------------------------------------------------------92
86. Test of Capital Investment -----------------------------------------------------------------------------------93
a. Return on Investment---------------------------------------------------------------------------------93
b. Payback Period------------------------------------------------------------------------------------------94
87. Break-even Analysis--------------------------------------------------------------------------------------------95
88. Cost Structure and Operating Leverage-------------------------------------------------------------------96

VII CONCLUSION
89. Conclusions and Recommendations-----------------------------------------------------------------------97

VIII SENSITIVITY ANALYSIS
90. Sensitivity Analysis---------------------------------------------------------------------------------------------98
91. 1
st
Strategy-------------------------------------------------------------------------------------------------------99
92. 2
nd
Strategy-----------------------------------------------------------------------------------------------------101
93. 3
rd
Strategy------------------------------------------------------------------------------------------------------104
94. Sensitivity Conclusion----------------------------------------------------------------------------------------105

VIII ANNEXES

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Introduction
Fruit and Vegetable Juice is a non-alcoholic beverage and is primarily made of extracted
and blended fruits and vegetables concentrates. Popular in Western countries, where people
usually make it at their homes with a juicer machine or they purchase it in cans, in bottles and
freshly made in restaurants for convenience.
In the Philippines it can be purchased on some restaurants that offer this kind of
beverage. It became popular nowadays because people are now being conscious about health
and wellness and for diet reasons. Working people, mothers with active children and students
are always looking for a quick, tasty, healthy alternative for lunch or a mid-afternoon infusion of
energy. These are the reasons that make it a potential product to be introduced in the market.
As more people continue to turn toward natural and wholesome food and drinks. Fruit
and vegetable juice have great potential for providing a healthy, refreshing and nutritious drink.
Frugies, a mixed fruit and vegetable smoothie, the proposed product that the
researchers will introduce in the market, were the target market are the students,
administrative staffs and faculty members of Western Mindanao State University main campus.
Frugies is a product that the students can afford to buy, a smoothie that has a lot of nutrients
that young and old people will benefit and will surely love. In a stressful and hectic schedule of
students, Frugies would be the best drink that could boost their immune system against
sickness. The researcher decided to produce smoothie instead of juice as an innovation to the
usual juices that are commonly offered.
Frugies contains Malunggay, a vegetable known to be A miracle tree and a powerful
anti-cancer and rich in anti oxidant that slows the aging process.

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Project Title:
A Project Feasibility Study on Mixed Fruits and Vegetable Smoothie Production
Proposed Name of Firm: Frugies Smoothies Production
Type of Business Organization: Sole Proprietorship
Project Proponents/Researchers:
Arranguez, Princess D.
Dinaga, Raquel F.
Librada, Maribeth
Repollo, Maricar T.
Reyes, Kate Kathelyn L.
Usman, Rashida H.

Project Location: The proposed project location will be at Western Mindanao State University
Campus A, located at Normal Road, Baliwasan, Zamboanga City

Total Project Cost: The project cost is Php9,436.21

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Mission
Frugies Smoothies Production, as a source of healthy mixed fresh fruit and vegetable
smoothie, adhere strict implementation of safety methods for consumers concern and to
promote further development of manufacturing operations to ensure customers satisfaction.

Vision
To achieve the highest standard desired and required in the production operation of
mixed fresh fruit and vegetable fruit drinks that will make Frugies Smoothies Production
products acceptable in Zamboanga City and also competitive in the national market.
Objectives
To be the leading producer of mixed fresh fruit and vegetable smoothies in Zamboanga
City and be more competitive in the market.

Short Term Objectives
To develop and maintain a good relationship with the consumers and the people of
To provide staff and students of Western Mindanao State University a healthy drink
To be the number one producer of fruit and vegetable smoothie

Long Term Objectives
To be one of the most successful and most influential healthy drink producers in
Zamboanga City
To be an excellent company here in the Philippines that will expand its business in the
other parts of the country and become the pride of Zamboanga City
To be nationally and globally competitive in producing an excellent smoothie products

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Specific Objectives
Marketing Aspect
To ensure that the product will be promoted in a good way in which it can penetrate the
market
To determine the competitive advantage of the product
To be more creative in attracting customers
To guarantee that the chosen promotional campaigns will not only benefit the company
but also the customers who will purchase the product

Management Aspect
Focus on needs of our consumers
Get out into the market, listen, observe, and learn
Determine the factors that create demand for our product, and forecasting its potential
demand
Focus on execution in the marketplace every day
To attain the companys aim and purpose
To focus on the employees, their jobs, benefits and salaries, and tasks that will be done
before starting the business

Technical Aspect
To get rid of uncertainties in operation and production
To scheme the overall process in the production
To ensure the safety and benefits of the customers

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Socio Economic Aspect

To discuss the benefits of all the stakeholders involved in the operation of the business.
To have an environmental friendly procedure.
To showcase the ability of the workforce of the students of Industrial and Management
Engineering

Financial Aspect
To have gain information about the financial status of the business
To be able to figure out how the business deals with the trend of demand and supply
within the circulation of the business.
To assure that the business is profitable and feasible.

Limitations and Scope of the Study
The study focuses on the establishment of mixed fruit and vegetable smoothie
production in Zamboanga City. Five aspects were presented in this study which includes the
Organizational and Management Aspect, the Marketing Aspect, the Technical Aspect, the Socio-
Economic and the Financial Aspect.
The proposed product will be sold at Western Mindanao State University targeting the
students, faculty members and administrative personnel of the Tertiary, Secondary and
Elementary Education Department both from campus A and B. The product will be made to
order which the researchers company will also focus on exclusive supplying of smoothies for
the different student activities through the organization officers.

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Highlights of the Study
Fresh mixed fruit and vegetable smoothie is not the usual drink that the researchers will
introduce in the market, were the market are the students, faculty members and administrative
personnel, in that case the study has an edge on promoting healthy lifestyle and the habit on
drinking healthy fresh mixed fruit and vegetable smoothie daily that begins in the school. The
researchers assures that the taste of the product will be more exciting and suits the taste of
each customers, were one of the ingredients is vegetable.

The customers will surely be curious of what will be the taste of the product and make
the product trend in the market.

Methodology
The study was conducted with the use of primary and secondary data. Primary data
were obtained by conducting surveys to the target market were the researchers gathered
reliable data and by conducting interviews to every canteen within the vicinity. While the
secondary data were gathered from reliable sources such as NFRI, DAR, DOST, MISTO.

Leadership Strategy
The researchers used the leadership strategy were process of strategic leadership begins
with people. Managing change through uncertainty requires strategic leaders who possess and
communicate a clear path of direction and alignment within their workgroups to achieve the
desired outcomes.

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Form of Ownership
The proposed business will be a Sole Proprietorship type of business. The owner will be
the manager of the business. This type of business is easy to set-up because of the following
advantages:
Ease in business commencement
Absolute control
Avoidance of double taxation
Ease in business dissolution

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Figure 1.1 Organizational Structure
The proposed business has 10 positions. But it will be handled by 6 individuals in actual
operation for the mean time due to financial capability; some positions will be handled by a
single person.

Manager
Production
Supervisor
Receiving
Personnel
Production
Crew
Finance
Supervisor
Accountant
Purchasing
Officer
Cashier
Sales and
Marketing
Supervisor
Promotional and
Advertising Staff
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Personnel Functions and Qualifications
In the field of business before it starts to operate, Human Resource management
perform recruitment and selection of new employees who are qualified for the job description
but for the mean time the manager will be in charge of the hiring, since the manager is also the
owner of the business. The business will be handled by 6 individuals. The qualified positions and
description that are listed in the organizational structure are divided into six (6) persons. For
the mean time, as a new contributor in the field of business, the researchers will be the one
who will handle and take over the positions. All six members will be work six times a week
during the initial run of the business. As the business grows, it will employ necessary number of
individuals that the company needs. They will be hired according to the qualifications
prescribed position.

1. One person will assume the role of Manager/Production Supervisor. Specifically his/her
roles are as follows:

Manager - is a person who manages the work of others in order to run a business
efficiently and make a large profit. He or she should have working knowledge of the
areas under her, and may be a specialist in one or more. She manages everything that
goes in and out of the company. She has the sole right for overall management of the
authority and has the control to all personnel in the plant. She must also be responsible
in keeping, recording and filling out papers and confidential documents of the company.

Qualifications:
Must be a graduate of any business related course such as (BS Industrial
Management Engineering, BS Management, BS Business Administration)
Female/Male, preferably 25-35 years of age.
At least two years experience in manufacturing and service industry.

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Production Supervisor - is the one responsible to oversee the day-to-day
operations in the company and as well as manages workers on production line.
She monitors the means of production to ensure that they are operating
smoothly, and they check the products for defects and as well as determining
quality control standards.

Qualifications:
Must be a graduate of any business related course.
Female, preferably 25-35 years of age.
Expertise on integral planning, product design, purchasing processes
and production scheduling.
Must have at least two years of working experience in the related field.

2. One person will assume the role of Production Crew/Receiving Personnel. Specifically
his/her roles are as follows:

Production Crew is in charge of preparing smoothie before it goes out to the
customers. Specific duty vary, but typically include clearing off and setting
Juicers/Blenders, stocking supplies and as well as washing or cleaning the
juicers/blenders and utensils.

Qualifications:
Must have a High School Diploma.
Male/Female, preferably 25-30 years old.
Must have at least one year experience in related field
With good moral character
Health Certificate from CHO (City Health Office)

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Receiving Personnel - is responsible for the verification and recording of raw
materials and generally review purchase order.

Qualifications:
Must have a High School Diploma
Able to demonstrate basic math and organizational skills.
Must have an experience in customer service or inventory
checking positions
With Good moral Character

3. One person will assume the role of Finance Supervisor/Production Crew. Specifically
Finance Supervisor is responsible for maintaining financial, accounting,
administrative and personnel services in order to meet legislative requirements
and support municipal operations. Finance Supervisor must administer and
monitor the financial system in order to ensure that the municipal finances are
maintained in an accurate and timely manner.
Qualifications:
Certified Public Accountant
Female, preferably 25-35 years of age
With at least 2 years of working experience in the related field
Must have computer skills including the ability to operate
computerized accounting, spreadsheet and word processing
programs at a highly proficient level
Must possess cultural awareness and sensitivity.
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Qualifications:
Must have a High School Diploma.
Must have at least one year experience in related field.
With good moral character.

4. One person will assume the role of Accountant/Receiving Personnel. Specifically
Accountant is responsible for analyzing financial information and prepare
financial reports such as compiling and analyzing financial information to
prepare entries to accounts, such as general ledger accounts, documenting
business transactions. Accountant analyzes financial information detailing assets,
liabilities, capital, and prepares balance sheet, profit and loss statement, and
other reports to summarize current and projected company financial position,
using calculator or computer.
Qualifications:
Certified Public Accountant
Female, preferably 25-35 years of age.
With at least 2 years of working experience in the related field
Must possess analytical skills in order to analyze certain
discrepancies on a balance sheet or income statement
Detail oriented-- Accountants have to compile a lot of figures to
construct balance sheets and income statements. Having the
ability to compile a lot of information and then interpret the
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meaning is something an accountant will have to do on a regular
basis.
Good Computer Skills.
Must possess good moral character.
Receiving Personnel is responsible for the verification and recording of raw
materials and generally review purchase order.
Qualifications:
Able to demonstrate basic math and organizational skills.
Must have an experience in customer service or inventory checking
positions
With Good moral Character

5. One person will assume the role of Sales and Marketing Officer/Production Crew.
Specifically his/her roles are as follows:
Sales and Marketing Officer is the one responsible in marketing framework for
successful positioning, promoting and distributing the products for the
profitability of the business.
Qualifications:
Must be a graduate of any four year related business course
Female, preferably 25-35 years of age
With at least 2 year working experience in related field
Good communication skills
Must possess pleasing personality

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Qualifications:
Male/Female, preferably 25-30 years old

6. One person will assume the role of Purchasing Officer/Promotional and Advertising
Staff/Production Crew. Specifically his/her roles are as follows:
Purchasing Officer is the one responsible at some level for buying or approving
the acquisition of goods and services needed by the company. The position
responsibilities may be the same as that of a buyer or purchasing agent, or may
include wider supervisory or managerial responsibilities. A Purchasing Manager
may oversee the acquisition of materials needed for production, general supplies
for offices and facilities, equipment, or construction contracts. Purchasing Officer
seeks reliable vendors or suppliers to provide quality goods at reasonable prices.
Qualifications:
Must possess a four-year degree in any Business related course
Female/ Male, preferably 25-30 years of age
Minimum of 2 years of experience in related field
Must have excellent interpersonal and negotiation skills, as
her/his role is to receive the best possible product at the best
possible price
Should have great communication skills, both orally and in writing
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Should possess exceptional management skills, as she may
oversee a team of people

Promotional and Advertising Staff is the one responsible for planning and
directing advertising policies and programs or produce collateral materials, such
as posters, contests, coupons, or give-away, to create extra interest in the
purchase of a product or service for a department, an entire organization, or on
an account basis.
Qualifications:
Must be a graduate of any business related course
Female/male, preferably 23-35 of age
With 1-2 years working experience in the field of marketing
Good communication skills
Pleasing personality
Qualifications:
Male/Female, preferably 25-30 years old

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Table 1.1 Feasibility Study Timetable and Gantt chart
Project Timetable
Activities for 1
st
Semester Date No. of weeks
A. Grouping of members,
assigning tasks, meeting
among members of the group
June 15 June 29 2
B. Gathering data of the given
study, conducting survey,
presentation of data gathered

June 29 - July 20

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C. Preliminary presentation,
Reviewing/Revising the draft
presentation and consultation
July 21 July 27 1
D. Re-conducting survey and
evaluating the result on
market aspect, Preliminary
presentation of prototype
July 28 - August10 2
E. Presentation of prototype per
combination
July 11- July 17 1
F. Computing of data, gathering
data for Organizational and
management, Technical
aspect, presentation of O and
M and Technical aspect

July 18 - August 24

1
G. Consultation of 2 aspects,
gathering additional data
August 25 -
September 8
2
H. Revision of organizational and
management and technical
aspect
September 9-
October 15
5

I. Finalization and presentation
of 3 aspects

October 16 October
27

2
J. Enrolment

October 28 - November
19

--
K. Opening of business operation

November 20
February 22

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L. Discussion and drafting on
financial statement for the
month of November and
discussion on sensitivity
analysis.

November 21
December 6

2
M. Submission and evaluation of
month of November.
Discussion on socio-economic
and SWOT analysis orientation

December 7 - 20

2
N. Presentation of Expo materials
(Brochures, layout and costing)

December 21January 3

2
O. Submission and evaluation of
month of December.

January 4 - 10

1
P. SWOT analysis presentation
and submission of financial
statement for the month of
January.

January 11 February 4

4
Q. Submission of Manuscript for
final presentation.

February 5 24

3

R. Preparation for the final
presentation

February 25 - 28

1
S. Final presentation to the
faculty and submission of
thesis manuscript for Expo use

March 1 6

1
T. IME Expo 2014 and
preparation for the business
evaluation.

March 7 - 14

1
Table 1.1 shows the activities for the school year 2013-2014

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Activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
A
B
C
D
E
F
G
H
I

Scheduled Activity
s

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Work Finished
Table 1.2 Gantt chart of the Time Table
Presented
s
Legend:
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Activity 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
J
K
L
M
N
O
P
Q
R
S
T

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Product Description
Fruit and Vegetable Juice is a non-alcoholic beverage popular in Western countries,
where people can purchase it in aluminum cans, in bottles and freshly made in restaurants.
In the Philippines it can be purchased on some restaurants that offer this kind of
beverage. It became popular nowadays because people have increase awareness on health and
wellness. Some are even very particular with the food they eat and beverage they drink. The
researchers have decided to make it into smoothie instead of just a plain juice which makes it a
potential viable product to be sold in the market.

The Target Demand
The target demand of this study is the people of Campus A and Campus B of Western
Mindanao State University which comprises of the students, members of the faculty and
administrative personnel. There are about 19,171 individuals from Campus A and Campus B
combined from school year 2013-2014.
The products will be sold in an ordering basis where the seller makes and prepares the
products while the customer waits, through a stall situated inside the campus where it is easily
be accessible.

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HISTORICAL DATA

Table 2.1 Population of Western Mindanao State University (Year 2008 2013)

SCHOOL YEAR POPULATION
2008-2009 15,827
2009-2010 17,358
2010-2011 17,645
2011-2012 17,257
2012-2013 17,332
Source: MISTO WMSU
Table 2.1 shows the historical data of enrollees who enrolled from 2008-2013 of the target university.
The data will be used in projecting the population for the next five years.

Table 2.2 Projected Actual Population

SCHOOL YEAR
PROJECTED
POPULATION
2013-2014 19,171
2014-2015 18,247
2015-2016 18,538
2016-2017 14,490
2017-2018 15,075
2018-2019 19,411

Table 2.2 shows the projected population of the target university from 2013-2014 to 2018-2019. The
population is computed using the four methods of projection and the projected values are taken from
the method which has the least standard deviation which yields the realistic output. The population from
school year 2013-2014 to 2015-2016 remains the same because only school year 2016-2017 until 2018-
2019 affected in the new curriculum of K to 12 program wherein no new freshmen are enrolled in the
said school year. (Refer to annex A from table 1.0 to table 5.2)

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DEMAND ANALYSIS

Fig 2.1 Annual Per Capita Consumption of juice in the Philippines

Fig 2.1 shows the annual per capita consumption of juice in the Philippines based from Euromonitor. The
data will be used to compute the projected demand of Western Mindanao State University.

Table 2.3 Projected Demand for Juice within the vicinity of WMSU

SCHOOL YEAR PROJECTED POPULATION
ANNUAL PER CAPITA
CONSUMPTION (L)
PROJECTED
DEMAND (L)
2013-2014 19,171 1 19,171.00
2014-2015 18,247 1 18,247.00
2015-2016 18,538 1 18,538.00
2016-2017 14,490 1 14,490.00
2017-2018 15,075 1 15,075.00
2018-2019 19,411 1 19,411.00
Table 2.3 shows the computation of the projected demand for juice within the vicinity of Western Mindanao State
University by means of multiplying the total projected population per year to the annual per capita consumption
which is 1 liter. The projected demand will be used to determine the total volume of juice that the university is
consuming.

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SUPPLY ANALYSIS
There are currently 16 present canteens that sell Juice beverage within the vicinity of
Western Mindanao State University.

Table 2.4 Present Supply within the vicinity of Western Mindanao State University
CANTEEN/OWNER'S NAME WEEKLY SUPPLY (L) DAILY SUPPLY (L)
Janny Bee 1.985 0.331
Shanes Fastfood 2.262 0.377
Maimona Majid 11.000 1.833
Magsayo Store 3.358 0.560
Oliver 32.938 5.490
Pilang Cervantes 23.386 3.898
Flavours 17.854 2.976
Emanual Canteen ( Jane D. Baroquillo) 18.000 3.000
WMSU Coop Canteen #8 (April Delos Reyes) 32.125 5.354
Antonieta Dumen 4.180 0.697
Social Work Canteen (Ester Carpizo) 12.700 2.117
Islamic Canteen (Arnalyn Ibrahim) 11.020 1.837
Forestry Canteen (Ginton Michael O. Locson) 3.320 0.553
Merciana 83.000 13.833
Mercedes Domocol 17.825 2.971
WMSU Coop #3 2.250 0.375
TOTAL 277.203 46.201
GRAND TOTAL (year) 10,949.530 10,949.530

Table 2.4 shows the total volume supply of juice in the vicinity of Western Mindanao State University. The data
was then computed in terms of weekly supply with a total volume of 277.203 L per week and was converted into
daily supply by dividing the weekly supply by 6. The total volume of juice in a year for the supply is 10,949.530 L
per year which is obtained by multiplying the weekly supply by 39.5 and 237 for the daily supply.

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Table 2.5 Historical Data of Supply within the vicinity of Western Mindanao State University
SCHOOL YEAR YEARLY GROWTH RATE YEARLY SUPPLY (L)
1990-2009 - 4,205.86
2009-2010 4% 4,368.08
2010-2011 17% 5,093.86
2011-2012 22% 6,203.46
2012-2013 22% 7,589.45
2013-2014 44% 10,949.53

Table 2.5 shows the details of the yearly supply of canteens within the vicinity of WMSU since 1990 until
the present. The data will serve as the historical supply of the target university which was obtained by
subtracting the present year to the previous year divided by the previous year by using the growth rate.
Refer to annex A Table 5.3 for the computation.

Table 2.6 Projected Supply
SCHOOL YEAR PROJECTED SUPPLY (L)
2013-2014 8,072.91
2014-2015 8,933.17
2015-2016 9,793.42
2016-2017 10,653.68
2017-2018 11,513.93
2018-2019 12,374.19

Table 2.6 shows the projected supply which is based on the computation using Statistical Straight Line
method which yields the realistic output. (See ANNEX A table 5.3 to table 6.4.1 for computation of
projected supply)
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Table 2.7 Demand and Supply Analysis

SCHOOL YEAR
PROJECTED
DEMAND (L)
PROJECTED SUPPLY
(L)
GAP (L)
2013-2014 19,171.00 8,072.91 11,098.09
2014-2015 18,247.00 8,933.17 9,313.83
2015-2016 18,538.00 9,793.42 8,744.58
2016-2017 14,490.00 10,653.68 3,836.32
2017-2018 15,075.00 11,513.93 3,561.07
2018-2019 19,411.00 12,374.19 7,036.81

Table 2.7 shows the volume of the unsatisfied demand or the gap per school year. The projected supply
is subtracted from the projected demand to identify the unsatisfied demand. The unsatisfied demand
will be used in determining the market share of the company. The demand-supply analysis is from
school year 2013-2014 to 2018-2019.
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Figure 2.2 Supply, Market Share and New Gap for School Year 2013-2014

Figure 2.2 shows the total demand of 19,171.00 L for the school year 2013-2014. The supply for this school year is
8,072.91 L and the unsatisfied demand is 11,098.09 L. The company will get 1,759.73 L of the total demand which
leaves 9,866.36 L as the new gap. The companys market share is base from the capacity of the company provided
in Table 3.1 page 53.

42%
9%
49%
Total Demand of 19,171.00 L
Supply (8,072.91 L)
Market Share(1,759.73 L)
New Gap (9,338.36 L)
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Figure 2.3 Supply, Projected Market Share and New Gap for School Year 2014-2015

Figure 2.3 shows the total demand of 18,247.00 L for the school year 2014-2015. The supply for this school
year is 8,933.17 L and the unsatisfied demand is 9,313.83 L. The company will get 2,652.92 L of the total
demand which leaves 6,660.91 L as the new gap. The companys market share is base from the capacity of
the company provided in Table 3.1 page 53.

49%
15%
36%
Supply (8,933.17)
Market Share (2,652.92 L)
New Gap (6,660.91 L)
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Figure 2.4 shows the total demand of 18,538.00 L for the school year 2015-2016. The supply for this
school year is 9,793.42 L and the unsatisfied demand is 8,744.58 L. The company will get 3,546.11 L of
the total demand which leaves 5,198.47 L as the new gap. The companys market share is base from the
capacity of the company provided in Table 3.1 page 53.

53%
19%
28%
Supply (9,793.42 L)
New Gap (5,198.47 L)
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demand which leaves -602.99 L as the new gap or no gap at all because the market share is higher than the
gap. The companys market share is base from the capacity of the company provided in Table 3.1 page 53.

68%
28%
-4%
Supply (10,653.68 L)
New Gap (-602.99 L)
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year is 11,513.93 L and the unsatisfied demand is 3,561.07. The company will get 5,332 L of the total
demand which leaves -1,771.43 L as the new gap or no gap at all because the market share is higher than
the gap. The companys market share is base from the capacity of the company provided in Table 3.2 page
53.

62%
29%
-11%
Supply (11,513.93 L)
Market Share (5,332.5L)
New Gap (-1,771.43 L)
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demand which leaves 811.12 L as the new gap. The companys market share is base from the capacity of the
company provided in Table 3.2 page 53.

64%
32%
4%
Supply (12,374.19 L)
New Gap (811.12 L)
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Table 2.7 Product Selling Price

Verdi Smoothie
Amount
CAO Smoothie
Amount
Pia-Banana
Smoothie
Amount
Production cost per unit P15.70 P16.40 P11.28
Markup P 4.30 (21.50%) P 3.60 (18%) P 8.72 (43.60%)
Selling price per cup P20 P20 P20

Table 2.7 shows the selling price per cup, it is based from the production cost. The mark up is 21.50% for
Verdi smoothie, 18% for CAO smoothie and Pia-banana smoothie 43.60% were the profit is P4.30 for
Verdi smoothie,P3.60 for CAO smoothie and P8.72 for Pia-Banana smoothie.

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Market Program and Strategy
As a new contributor in the business industry the market strategy will be applied to the
students, administrative staff and faculty member were school is the best location to start with,
because now a days people are already outspoken and involved on what is happening in the
society specially the young once in terms of things that are unusual like our product Mixed
Fruit and Vegetable Smoothie. In that case our product will be easily known in the university
and also outside the campus.
Product
Mixed fruit and vegetable smoothie contains 250ml of smoothie per cup, the product
are new to the target location so it is not difficult to market and the quality of the product
are rest assured to be safe to consume.

Promotion

The company believes and is confident on the capability of Promotional and Advertising
Staff who plans and secures the implementation of the promotional activities. One of which
is the establishment of partnership between school organizations aiming to be the official
supplier of healthy drinks for their activities. This helps a lot because some students want to
try the product but has no means to afford to buy it, so through organizations they can have
it for free. The following are other promotional activities that the company will do:

Online Advertisement

The company saw the potential of online advertisement through social
media websites such as Facebook and Twitter and will take advantage of it.
There will be a creation of a company account for the product. This will not only
introduce the product easily on the market through social media, but also people
can give feedbacks or testimonials about the product and the different tastes.
The researchers had created a Facebook page for the company
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(https://www.facebook.com/frugies?ref=br_rs) where customers can make a call
regarding the product and will answer their complaints promptly and make
consumers happy, whenever possible, with a speedy apology, a refund, and a
discount on future purchases or an exchange. Sharing of photos with information
can also be helpful by creating an appeal to the target clients.

Personal Endorsement

These are the following personal endorsement can be use to market the
product, first is the Words of Mouth and by building personal relation to
customers in verbal form. Through giving free taste of the product, possible
consumers can give testimonials about it and provide information to the others.
Second is by building personal relation to customers, it can help to gain
customers trust to the company.

Tarpaulins and Brochures

Tarpaulin is a very useful tool to catch the attention of the market. The
material is durable and can be used repeatedly. The information about the
company and the products can be published through tarpaulins.
People want printed material to take home and read at their leisure. It
can direct them to the web page provided, but a brochure adds a personal
touch, tells the prospect what the product or service can do for them and why
they should buy from you. Brochures also support other advertising, direct mail,
online promotions, and can be used as a sales tool by distributors. In short, a
good brochure sells.
The actual cost of tarpaulin the researchers had used is Php 133.00 in
which the size is 2x3 ft while the brochure cost Php 20.00 per piece in which the
size is 8.5 x 11 inches.
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The Product
Mixed Fruit and Vegetable Smoothie is primarily made of fresh fruits and vegetable
blended together. It is rich in nutrients that have unique healthy promoting compounds,
vitamins and minerals that are essential for optimum health, benefiting for the body, such as
vitamin A, protein, vitamin C, anti-oxidants, potassium and iron. One cup (250ml) per serving of
Mixed Fruit and Vegetable Smoothie can give 30 vitamins and minerals to supply the nutrients
needed of the body.
Frugies a product name has a volume of 250ml which is equivalent to 1 cup. The
product has three combinations of smoothies which are the Apple-Orange Smoothie with
Malunggay gelatin, Apple-Carrots-Orange Smoothie with Malunggay gelatin, and the Banana-
Pineapple Smoothie with Malunggay Gelatin. The 3 combination were added with evaporated
milk and a little of refined sugar to make it more suitable to the customers taste.
Smoothies will stay fresh in the refrigerator for up to 3 hours, but it will lose some
nutrients as it sits in the fridge, the ideal temperature for the smoothie to last for 3 hour is
(4C-6C) but if smoothie expose to a normal room temperature it can only last for about 30
minutes. It will not also taste as fresh after the first 3 hours and water separation may occur.
Personally, the researcher dont like the way smoothies taste after the said time.

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Figure 3.1 Nutrition Facts of Fruits and Vegetables

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Continuation of Figure 3.1 Nutrition Facts of Fruits and Vegetables
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1. Apple-Orange Smoothie with Malunggay Gelatin (Verdi Smoothie)
The ingredients are Fuji Apple, Orange juice extract, ice cubes, refined sugar,
evaporated milk, and Malunggay gelatin as the additive. The ingredients for the Malunggay
gelatin are Malunggay broth, Buko Pandan flavored Gelatin powder, water, refined sugar and
evaporated milk.
The nutritional facts that the Apple-Orange Smoothie with Malunggay gelatin can
provide are iron, calcium, potassium, manganese, magnesium, vitamin A, vitamin B, vitamin C,
folate, thiamin and protein.
2. Apple-Carrots-Orange Smoothie with Malunggay Gelatin (CAO Smoothie)
The ingredients for the second combination on smoothie are Fuji Apple, Carrot juice
extract, Orange juice extract, ice cubes, refined sugar, evaporated milk, and Malunggay gelatin
as the additive.
The nutritional facts that Apple-Carrots-Orange Juice with Malunggay gelatin can
provide are calcium, potassium, iron, manganese, magnesium, vitamin A, vitamin B, vitamin C,
folate, thiamin, beta-carotene and protein.
3. Banana-Pineapple Smoothie with Malunggay Gelatin (Pia-Banana Smoothie)
The ingredients for the smoothie were ripe Banana, Pineapple , ice cubes, refined sugar,
and evaporated milk and Malunggay gelatin as the additive.
The nutritional facts that the Banana-Pineapple Smoothie with Malunggay gelatin can
provide are potassium, magnesium, manganese, fiber, vitamin A, vitamin B1, vitamin C,
calcium, foliate, iron and protein.

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Product Ingredients
The study came up with three different kinds of products with four different kinds of
fruits and two different kinds of vegetables to be mixed.
Apple Orange Smoothie with Malunggay Gelatin (Verdi Smoothie)
1. Apple fruit
The apple is the pomaceous fruit of the apple tree, species Malus domestica in the rose
family (Rosaceae). It is one of the most widely cultivated tree fruits, and the most widely
known of the many members of genus Malus that are used by humans. Apples grow on
small, deciduous trees. Specifically, the researcher had used the Fuji Apple because it has a
very long shelf life compared to other apples, even without refrigeration. It also contains
between 911% sugars by weight but still nutritious.
2. Orange fruit
An orange is a type of citrus fruit which people often eat. Oranges are a very good source
of vitamins, especially vitamin C. Orange juice is an important part of many
people's breakfast. The "sweet orange", which is the kind that is most often eaten today,
grew first in Asia but now grows in many parts of the world. The researchers have used
Ponkan in its product because of its more orangy taste.

3. Malunggay leaves
Moringa also known as the Miracle Tree is a multipurpose plant, were the leaves, pods,
fruits, flowers, roots and bark of the tree can be utilized. It is also referred to as Drumstick
Tree by the Britishers. In the Philippines, they are referred to as malunggay or
malungay. Others refer to moringa as horseradish tree, benzolive tree, kelor, marango,
mlonge, moonga, nbday, saijhan, sajna or Ben oil tree. Moringa leaves contain: seven
times the vitamin C in oranges, four times the Calcium in milk, four times the vitamin A in
carrots, two times the protein in milk and three times the Potassium in bananas.

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4. Buko Pandan Flavored Gelatin powder
Gelatin (or gelatin, from Latin: gelatus = stiff, frozen) is a translucent, colorless, brittle
(when dry), flavorless solid substance. The researchers have used the flavored powdered
gelatin, specifically Buko-Pandan flavor, because it gives an appealing taste in our products.
These can be purchased in any grocery stores.

5. Refined sugar
Sugar is one of the most popular sweeteners used today. From baked goods to
beverages, this all-purpose sweetener has been a favorite for centuries. Sugar is the
crystallized sucrose extracted from sugarcane . After harvesting the sugarcane or sugar
beets, the juice is extracted and boiled down to remove moisture. As the moisture
diminishes, the natural sucrose in the juice begins to crystallize. The crystallized sugar is
removed, leaving other extracts behind in the form of molasses.
6. Evaporated Milk
Evaporated milk, also known as dehydrated milk, is a shelf-stable canned milk product
with about 60% of the water removed from fresh milk. It differs from sweetened condensed
milk, which contains added sugar. The researchers have used the canned evaporated milk
that can be purchased in any grocery stores.
7. Ice cubes
An ice cube is a small, roughly cube-shaped piece of ice (frozen water), conventionally
used to cool beverages. Ice cubes are sometimes preferred over crushed ice because they
melt more slowly; they are standard in mixed drinks that call for ice, in which case the drink
is said to be "on the rocks."

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Apple Carrot Orange Juice with Malunggay Gelatin (CAO Smoothie)
1. Apple fruit
The apple is the pomaceous fruit of the apple tree, species Malus domestica in the rose
family (Rosaceae). It is one of the most widely cultivated tree fruits, and the most widely
known of the many members of genus Malus that are used by humans. Apples grow on
small, deciduous trees. Specifically, the researcher had used the Fuji Apple because it has a
very long shelf life compared to other apples, even without refrigeration. It also contains
between 911% sugars by weight but still nutritious.

2. Orange fruit
An orange is a type of citrus fruit which people often eat. Oranges are a very good
source of vitamins, especially vitamin C. Orange juice is an important part of many
people's breakfast. The "sweet orange", which is the kind that is most often eaten today,
grew first in Asia but now grows in many parts of the world. The researchers have used
Ponkan in its product because of its more orangy taste.
3. Carrot
Carrots are popular root vegetable that are easy to grow in sandy soil. They are resistant
to most pests and diseases, and are a good late season crop that can tolerate frost. Not all
carrots are orange; varieties vary in color from purple to white. The researchers have used
the orange-colored carrot variety.

4. Malunggay leaves
Moringa also known as the Miracle Tree is a multipurpose plant, were the leaves, pods,
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5. Buko Pandan Flavored Gelatin powder
6. Refined Sugar
Sugar is one of the most popular sweeteners used in American kitchens today. From
baked goods to beverages, this all-purpose sweetener has been a favorite for centuries.
Sugar is the crystallized sucrose extracted from either sugarcane. After harvesting the
sugarcane or sugar beets, the juice is extracted and boiled down to remove moisture. As the
moisture diminishes, the natural sucrose in the juice begins to crystallize. The crystallized
sugar is removed, leaving other extracts behind in the form of molasses.

7. Evaporated Milk

8. Ice cubes
is said to be "on the rocks."

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Banana Pineapple Smoothie with Malunggay Gelatin (Pia-Banana Smoothie)
1. Ripe Banana
A banana is an edible fruit produced by several kinds of large herbaceous flowering
plants of the genus Musa. In some countries, bananas used for cooking may be
called plantains. The fruit is variable in size, color and firmness, but is usually elongated and
curved, with soft flesh rich in starch covered with a rind which may be green, yellow, red,
purple, or brown when ripe. The researcher used Latundan banana.

2. Pineapple fruit
Pineapple is a wonderful tropical fruit having exceptional juiciness, vibrant tropical
flavor and immense health benefits. Pineapple contains considerable calcium, potassium,
fiber, and vitamin C. It is low in fat and cholesterol.

3. Malunggay leaves
Moringa also known as the Miracle Tree is a multipurpose plant, as the leaves, pods,
4. Buko Pandan Flavored gelatin powder

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4. Refined Sugar
Sugar is one of the most popular sweeteners used in American kitchens today. From
baked goods to beverages, this all-purpose sweetener has been a favorite for centuries.
Sugar is the crystallized sucrose extracted from sugarcane. After harvesting the sugarcane or
sugar beets, the juice is extracted and boiled down to remove moisture. As the moisture
diminishes, the natural sucrose in the juice begins to crystallize. The crystallized sugar is
removed, leaving other extracts behind in the form of molasses.

5. Evaporated Milk

6. Ice cubes
is said to be "on the rocks.

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Manufacturing Process
The manufacturing process of mixed fruit and vegetable smoothie is in made to order
basis with 3 different combinations. The process of preparing the fruit and vegetable smoothie
is by extracting the juice from the fruit and vegetable specifically the orange and carrot, and
blending it together with other fruits adding Malunggay gelatin as an additive. The smoothie
will be put into 8oz cups with plastic lid cover for food safety and straw.
1. Apple-Orange Smoothie with Malunggay Gelatin (Verdi Smoothie)
a. Washing
Wash the 232.5g of fuji apple as well as the 300 g of ponkan orange to remove the
dirt, pesticide or else the chemicals present. Do not use hot nor freezing water in order to
retain the freshness of fruits.
b. Peeling
After washing, use your hands in peeling the ponkan orange because it has a thicker
skin compare to the other fruit. Make sure to wash your hands before doing it. Ponkan
compose of 60% skin.
c. Slicing
Hold apple so that stem is facing straight up while apple is on top of a cutting board. Cut
the peeled fuji apple which is 232.5 grams in weight into a medium size. Use a sharp knife
to create the size slices of your choosing by slicing each large slice into the upward, rounded
section of the apple pieces, so that it would be easy for the blender to blend it.
d. Extracting
Presses are the usual and traditional method of removing juice from the fruit. By the use
of Imarflex extractor, the residues and juice will be separated. The researchers can extract
the 300g of ponkan which will result to a 75.28 g of juice and 74.91% residues.
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e. Mixing / Blending
After the extraction and slicing/cutting process, 75.28 g of ponkan orange and slices of
apples are mixed together in the blender. Pour it with 150 ml evaporated milk, 150 grams of
refined sugar and 452 ml of ice cubes to produce 1 pitcher of smoothie. In order to get an
equal taste, stir it using tablespoon or stirring rod.
f. Filling
It is the process of bringing the mixed juice into the container. The container is made up
of 250 ml plastic slushy cup.

g. Adding gelatin
For a good and healthy taste, add 75g of malunggay gelatin in a 1 cup of smoothie.

2. Apple-Carrot-Orange Smoothie with Malunggay Gelatin (CAO Smoothie)

a. Washing
Wash all raw fruits such as 232.5 g of fuji apple and 300 g of ponkan orange and 150
g of carrot to remove the dirt, pesticide or else the chemicals present on it. Use colander in
washing the needed raw materials. Do not use hot nor freezing water in order to retain the
freshness of fruits and vegetable. The researcher may also use brush but not too rough for a
certain veggies such as carrot, which have been growing in soil. Make sure there isn't any dirt
or other items left on fruits or vegetable.

b. Peeling
After washing, use knife or peeler to take out the skin of the carrot, unlike on the
ponkan orange fruit because it has its thinner peel, just used your hands in peeling the
ponkan. Make sure to wash your hands before doing it. Hence, carrot contains 14.29% of
skin and 60% of skin and seeds for orange.
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c. Slicing
Cut the apples into medium size, to ensure it will make the blender machine to blend it
easily, slice all the large sizes. Cut the peeled carrots into medium size to make sure it will fit
in the juice extractor machine. Use a sharp knife in slicing the 232.5 g of apple, 128.6 g of
carrot.
d. Extracting
Presses are the usual and traditional method of removing juice from fruit and vegetable
materials. By the use of Imarflex extractor, the residues and juice will be separated. The
researchers can extract the 300 g of ponkan that will result to a 75.28 g of juice and 74.91%
residues. In addition, by pressing the 150 g of carrot we could come up with 37.86% residues
and 93.21 g of concentrated carrot juice.
e. Mixing / Blending
After the extraction process, mix the 75.28 g of ponkan orange juice and 93.21 g of
concentrated carrot juice unto the blender together with the sliced apple. Pour it with 150
ml evaporated milk, 150 g of refined sugar and 358 ml of ice cubes to produce 1 pitcher of
smoothie. In order to get an equal taste, stir it using tablespoon or stirring rod.
f. Filling
g. Adding gelatin
For a good and healthy taste, add 75g of malunggay gelatin in every 1 cup of smoothie.

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3. Banana-Pineapple Smoothie with Malunggay Gelatin (Pia Banana Smoothie)

a. Washing
Wash the 550 g of ripe latundan banana fruits and 110 g of pineapple in order to
remove the dirt present on it. Do not use hot nor freezing water in order to retain the
freshness of fruits. The researcher may also use brush for cleaning the outside part of the
pineapple. Make sure there isn't any dirt or other items left on fruits.
b. Peeling
After washing, use a sharp knife or peeler to take out the skin of the pineapple.
Otherwise, use your hands in peeling the skin of the banana. Pineapple consists of 10% peel
and 54.42 % for the skin of banana. Make sure to wash your hands before doing it.
c. Slicing
Cut the peeled 110 g of pineapple and 550 g of banana into a medium size, just to
ensure it will easily blend into the blender machine. Use a sharp knife in slicing the fruits.
d. Mixing / Blending
Mix and blend the 88g of pineapple with 250.69g of sliced banana. Add the 150 ml
evaporated milk, 150g of refined sugar and 412 ml of ice cubes to produce 1 pitcher of
smoothie. In order to get an equal taste, stir it using tablespoon or stirring rod.
d. Filling

e. Adding gelatin
For a good and healthy taste, add 75 g of malunggay gelatin in a 1 cup of smoothie.

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Figure 3.2 Qualitative Flow Diagram

Washing
Peeling Cutting
Filling Blending Extracting
Adding gelatin
Finished Product
( Smoothie )
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Apple-Orange Smoothie with Malunggay Gelatin (Verdi Smoothie)
Figure 3.3 Quantitative Flow Diagram

Input Process Output

Apple (232.5g)
Orange (300g)

Washing
(535.5g)
Peeling/slicing
Apple (223.2g)
Orange (120g)
Extracting
Orange (75.28g)
Blending (1,500g)
Apple (223.2g)
Orange (75.28g)
Evaporated Milk(150mL)
Gelatin (450g)
Sugar (150g)
Ice/cold water (452mL)
Skin & Seed
Apple (4%)
Orange (60%)
Residue
Orange
(74.91%)
Finished Product
(1,500mL)/250mL
=6 cups
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Apple-Carrot-Orange Smoothie with Malunggay Gelatin (CAO Smoothie)

INPUT PROCESS OUTPUT

Apple (232.5g)
Orange (300g)
Carrot (150g)

Washing
(682.5g)
Peeling/slicing
Apple (223.2g)
Orange (120g)
Carrot (128.6g)
Extracting
Orange (75.28g)
Carrot (93.21g)
Mixing/Blending
(1,500g)
Carrot (93.21g)
Apple (223.2g)
Orange (75.28g)
Evaporated Milk(150mL)
Gelatin (450g)
Sugar (150g)
Ice (358 mL)

Apple (4% seeds)
Carrot (14.29%Skin)
Orange (60%Skin)
Residue
Orange (74.91%)
Carrot (37.86%)
Finished Product
(1,500mL)/250mL
=6 cups
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Banana-Pineapple Smoothie with Malunggay Gelatin (Pia-Banana Smoothie)

INPUT PROCESS OUTPUT

Banana (550g)
Pineapple (110g)

Washing
(660g)
Peeling (338.69g)
Banana (250.69g)
Pineapple (88g)

Mixing (1,500g)
Banana (250.69g)
Pineapple (88g)

Evaporated Milk
(150mL)
Gelatin (450g)
Sugar (150g)
Ice/cold water (412mL)
Skin & Seed
Banana (54.42%)
Pineapple (20%)

Finished Product
(1,500ml)/250ml
=6 cups
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Production Capacity and Operation Schedule
The present percent capacity of production is based on the maximum capacity of juice
produced in the year 2013-2014. The manufacturer can produce 15 pitchers, 90 cups, 22.5 L per
production. The table shown below has an assumption of 10% increase per annum. Percent
utilization of 10% increase per annum was based from the projected population increase every
school as the population increase the percentage of utilization must also increase where the
researcher can produce output of 10% from the full capacity utilization.
Table 3.1 Full Capacity Utilization
Projected Years
Full Capacity Utilization
(in glass of 0.25 L in a year)
% Utilization
Production Output
(in cup of 0.25 L)
Present 21,330 33% 7,038.90
2014-2015 21,330 49.75% 10,611.67
2015-2016 21,330 66.5% 14,184.45
2016-2017 21,330 83.25% 17,757.23
2017-2018 21,330 100% 21,330.00
2018-2019 21,330 116.75% 24,902.78
Table 3.1 shows the production capacity 16.75% per annum (see ANNEX B computation 1 for full capacity)

Equipment
The table shows the equipment needed for the proposed business. To lessen the input
cost, the other tools will be note as a donated asset. (See ANNEX C table 1 for more details of
equipment)
Table 3.2
Table Summary for the cost of equipment required for the operation
Description Quantity Unit price Unit Cost
Juice extractor 1 P 1,550.00 1 P 1,550.00
Blender 1 2,205.00 1 2,205.00
Total P 3,755.00
Table 3.2 shows the cost of equipment used in the production of Frugies.

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Utensils and Material
The table shows the utensil and material needed for the proposed business. To lessen
the input cost, the other tools will be note as a donated asset. (See ANNEX C table 2 for more
details of utensils and materials)

Table 3.3 The summary for utensils and materials needed for the operation
Description Quantity Unit price Unit (pcs) Cost
Plastic cup 50 pcs P 58.50 50 P 58.50
Lid 100 pcs 65.00 100 65.00
Plastic straw 1 pack (100 pcs) 18.00 100 18.00
Measuring cup 3 pcs 30.00 1 90.00
Knife 1 33.00 1 33.00
Cooler 1 1,100.00 1 1,100.00
Small basin 1 13.75 1 13.75
Chopping board 1 55.00 1 55.00
Total P 1,433.25
Table 3.3 shows the utensils and materials needed in the operation and its cost.

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Store Location
The target location of the proposed business is in Western Mindanao State University
because it would be easy for the researchers to market the product named Frugies , the
specific location of the stall in the school will be in the College of Engineering and Technology
grounds.
Figure 3.5 Stall location of the proposed business

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Stall Layout
It shows the floor store/stall layout where selling will be done, it has a width of 3.5 feet
and a length of 4 feet. The entrance/exit (1.5 ft) where perishable goods will be loaded and
unloaded and counter top set for customers ordering area is (2ft x 4ft). The storage for the
tools, equipment and other materials will be the space or area below the counter top (2 ft x 4 ft
x 3 ft) and (1ft x 1ft) chair for the personnel.
Figure 3.6 Production layout of the business

TOP VIEW

FRONT VIEW
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Table 3.4 Raw Materials for Gelatin

Raw Material Quantity Unit price Unit Cost
Gelatin powder 24g (1pack) P 10.00 Per 24g (1pack) P 10.00
Malunggay 10g 5.00 Per 10g 5.00
Refined sugar 56g 46.00 Per 1000g (1kl) 2.50
Evaporated milk 62.5ml 34.50 Per 370ml 5.80
Distilled water 1,400ml 10.00 Per 6000ml 2.33
Total P 25.63
Table 3.4 shows the cost of gelatin produce per 1pack of powdered gelatin which weighs 1,518g when turns to
solid. (See ANNEX C table3 for more details of raw materials)

Table 3.5 Raw Materials for Verdi Smoothie

Raw material Quantity Unit price Unit Cost
Apple 232.5g P 15.00 Per 157g(1pc) P 22.20
Orange 300g 10.00 Per 150g(1pc) 20.00
Evaporated milk 150mL 24.50 Per 370 ml (1can) 9.92
Gelatin w/ malunggay 450g 25.63 Per 1,518g 7.59
Refined sugar 150g 46.00 Per 1000kg (1kl) 6.90
Ice/Distilled water 452mL 10.00 Per 6,000ml (6L) 0.75
TOTAL P 67.36
Table 3.5 shows the total cost of the Verdi Smoothie wherein P67.36 can produce 1.500 L (1pitcher) or equivalent
to 6 cups. (See ANNEX C table 3 for more details of raw materials)

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Table 3.6 Raw Materials for CAO Smoothie

Apple 232.5g P 15.00 Per 157g (1pc) P 22.21
Carrot 150g 70.00 Per 1000g (1kl) 10.50
Orange 300g 10.00 Per 150g (1pc) 20.00
Evaporated milk 150ml 24.50 Per 370ml (1can) 9.93
Gelatin w/ maluggay 450g 25.63 Per 1,518g 7.59
Ice/Distilled water 358ml 10.00 Per 6,000ml (6L) 0.60
TOTAL P 77.73
Table 3.6 shows the total cost of CAO Smoothie wherein P77.73 can produce 1.5 L (1pitcher) or equivalent to 6
cups. (See ANNEX C table3 for more details of raw materials)

Table 3.7 Raw Materials for Pia Banana Smoothie

Banana 550g P 15.00 Per 1000g (1kl) P 8.25
Pineapple 110g 55.00 Per 1000g (1kl) 6.05
Evaporated milk 150ml 24.50 Per 370ml (1can) 9.93
Gelatin w/ maluggay 450g 25.63 Per 1,518g 7.60
Ice/Distilled water 412ml 10.00 Per 6,000ml (6L) 0.69
TOTAL P 39.42
Table3.7 shows the total cost of the Pia Smoothie were in P39.42 can produce 1,500 L (1pitcher) or equivalent to
6 cups (See ANNEX C table3 for more details of raw materials)

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71

Utilities
The proposed business operates will be in Western Mindanao State University, it is
considered to be a production location. Power supply is from Zamboanga City Electric
Cooperative (ZAMCELCO). The Kw/h rate power consumption of public building consumers like
WMSU is Php 7.2421 and the water supply will be from refilling station which is Php 10/6L is
the minimum while the transportation vehicle will be a jeep which is the minimum fare is Php
5.00 from Baliwasan to downtown and vice versa a total of Php 10.00 for the fare.
Table 3.8
Power Consumption per operation
Machine Kw Hour Rate/kwhr Cost

Juice Extractor

.25

5 secs

P 7.2421

P 0.01
Blender .25 16 mins P 7.2421 0.48
Total P 0.49
Table 3.8 shows the total amount consumption of electricity per production of juice

Table 3.9
Water Consumption per operation
Description Consumption (liter) Price/Refill Cost
Distilled water 6 P 10 P 10
Total P 10
Table 3.9 shows the total consumption of water per operation

Table 3.10
Transportation Cost per operation
Description Fare Rate No.of ride Cost
Jeep P 5 2 P 10
Total P 10
Table 3.10 shows Transportation cost for purchasing raw materials per operation

Table 3.11
Rental Cost per day
Description Rent per day No.of days Cost
Blender P 5 30 P 150
Total P 150
Table 3.11 shows the rental cost of the machine per month.

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Waste Disposal Procedure
Decomposable and non-decomposable wastes are expected to be generated
from the operation such as plastic cups, plastic straw and cellophanes for non-decomposable
and wastes from peeled fruits and vegetables for decomposing. Disposal of these
Decomposable and non-decomposable wastes materials will undertake proper waste
management practice. These wastes will be disposed to trash cans or garbage cans for proper
waste disposal.
Labor Requirement
There will be 3 workers required per operation but the company will employ 6
personnel, they will work 8 hours a day with 1 hour lunch break excluded to the total work
hours for the day, 6x a week or 24days in a month in alternating days depending on the
scheduled given by the management. Labor cost is in per hour basis wherein the workers
receive Php 32.50 per hour. But due to lack of financial capability to hire required personnel the
business will be run by the six (6) researchers and also will be handled the other positions.

Table 3.12
Labor Requirement for the operation
Labor required
No. of labor
required
No. of
hour
No. of
production/month
Minimum
Wage per
hour
Projected
labor cost
Production crew
2 8 24 P 32.50 P 12,480.00
Cashier
1 8 24 P 32.50 6,240.00
TOTAL P 18,720.00
Table 3.12 shows the total labor cost per operation in 1 month and minimum wage per hour.

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Safety and Maintenance
The prior concern of this study is the safety of the employees and customers, food
safety procedure implied on this study by using sanitizer, hair net and apron to avoid food
contamination.

Table 3.13
Safety Gear Requirement for the Production Crew
Personnel No. of personnel No. of hair net No. of mask No. of Apron
Production crew 6 6 6 6
Total 6 6 6 6
Table 3.13 shows the total safety gear requirement for the personnel.
Table 3.14
Cost of Safety Gear for the Production Crew
Description Quantity Unit price Cost
Hair net 6 P 8.00 P 60.00
Mask 6 P10.00 60.00
Apron 6 P 43.00 258.00
Total P 378.00
Table 3.14 shows the total cost of safety gears for the personnel.

Table 3.15
Total Production Cost
Cost
Verdi Smoothie
Amount
CAO Smoothie
Amount
Pia-Banana
Smoothie
Amount
Raw materials P 68.25 P 72.45 P 41.72
Direct labor 8.67 8.67 8.67
Rent expense & utilities 8.86 8.86 8.86
LPG 1.50 1.50 1.50
Packaging expense 2.55 2.55 2.55
Production cost P89.83/6cups P94.03/6cups P63.3/6cups
Production cost per unit P14.88 P15.67 P10.88
Table 3.15 The production cost is dependent on the raw materials being used, since the business is made to order
basis the researchers prefer to use minimal backup volume of smoothies in pitcher to avoid higher cost in
production, were Verdi Smoothie, Cao Smoothie and Pia-Banana Smoothie can equally produced 6 cups.

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74

75

75

Socio-Economic
Socio-Economic impact is designed to assist communities in making decisions that promote long-term capability including
economic prosperity, a healthy community and social well-being. Frugies Smoothies Production will affect the income as a result it
will benefit the community and the people. Also, the company can help the local producers i n considering the use of locally
manufactured raw materials and labor.
Table 4.1
Impact Benefits Measures
Agricultural

The demand for local fruits and vegetables
will increase; as the project develops usage
of raw materials will contribute in increasing
the demand in terms of agricultural planting.
Local farmers are considered as one supplier
in local business that made the economys
status in progressed and help farmers
increase production and income.
Crops
Based from the Bureau of Agricultural
Statistics, the percent growth of crops
last 2012 was 4.15% and was decreased
by 0.09% in year 2013.
Farmer
Based from NSCB number of employed
persons in agriculture remained almost
constant since 2004 by 10,775.

Shows the crops as one of the raw materials use in producing
the product and its quantity. Where the average price for Apple
is P 15.00 each, Orange which is P 10.00 each, Carrots which is
P70.00 per kilo, Malunggay leaves which is P5.00 per bundle,
Banana which is P 20.00 per kilo and Pineapple which is P55.00
per kilo.

As the growth rate per production output of Frugies Smoothies
Production increases the demand for crops from agricultural
sector also increases which gives the local farmers the chance
to sell fresh produced direct to the company.
Crops Unit Price
Apple (Fuji) 157g P 15.00
Orange (Ponkan) 150g P 10.00
Malunggay leaves 10g P 5.00
Carrot 1000g P 70.00
Banana (Latundan) 1000g P 20.00
Pineapple 1000g P 55.00

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Job Opportunities

Business opens an opportunity to the
community where there are unemployed
people. As the study development
continues it will expand into different
places that need manpower to operate the
business.

Table shows the number of employees required based on the projected capacity of the
business. Where the Manager, Production Supervisor, Finance Supervisor, Sales and
Marketing Supervisor, Accountant, and Promotional and Advertising Staff has not
increased in the number of employees because the position only requires only one
employee.
Labor
Required
S.Y.
2013 -2014
S.Y.
2014- 2015
S.Y.
2015- 2016
S.Y.
2016- 2017
S.Y.
2017- 2018
Manager 1 1 1 1 1
Production
Supervisor
1 1 1 1 1
Finance
Supervisor
1 1 1 1 1
Sales and
Marketing
Supervisor
1 1 1 1 1
Accountant 1 1 1 1 1
Promotional
and
Advertising
Staff
1 1 1 1 1
Purchasing
Officer
1 2 2 3 3
Production
Crew
2 3 4 5 6
Cashier 1 2 3 4 5
Receiving
Personnel
1 1 2 2 2
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77

Standard of Living
Frugies Smoothie Production produces a
good quality product and is therefore aims
to produce a good and standard living. The
company believes that every person
deserves to live a better life for it is one of
the key to a progressive country. The
company pays its personnel. The table
below shows the actual and projected
salary to be given by the company to its
personnel.

Data was based from the assumption on the number of labor required for the succeeding
school years. The salary of production crew, cashier, receiving personnel was based from the
minimum wage per hour under DOLE amounting of P33 which shall be increased by 4% in S.Y
2014-2015 and by S.Y 2017-2018 the salary amounting of P142,200 that shall be
compensate. Manager and Production Supervisor, Finance Supervisor, Accountant, Sales and
Marketing, Promotional and Advertising Staff shall received the minimum salary of P 267 per
day and shall increased by 4% in S.Y 2014-2015 and by S.Y 2017-2018 the salary amounting of
P 243,093 shall be compensate.

Labor
required
S.Y.
2013-2014
S.Y.
2014- 2015
S.Y.
2015- 2016
S.Y.
2016- 2017
S.Y.
2017- 2018
Manager/
Production
Supervisor
P 63,279 P 88,591 P 124,027 P 173,638 P 243,093
Finance
Supervisor
P 63,279 P 88,591 P 124,027 P 173,638 P 243,093
Accountant P 63,279 P 88,591 P 124,027 P 173,638 P 243,093
Sales and
Marketing
P 63,279 P 88,591 P 124,027 P 173,638 P 243,093
Promotion
al and
Advertising
Staff
P 63,279 P 88,591 P 124,027 P 173,638 P 243,093
Production
crew/
Receiving
personnel
P 47,400 P 70,500 P 94,000 P 118,500 P 142,200
Cashier P 47,400 P 70,500 P 94,000 P 118,500 P 142,200
Total
cost
P 411,195

P 583,955

P 808,135

P 1,105,190

P 1,499,865

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78

Healthy Living

One of the major causes of death is having
a poor lifestyle habit, recent studies shows
that heart attack is the number one cause
of continuous growth death cases in the
society. As young ages involved in vices it
includes smoking, drinking and eating
unhealthy foods. The researchers
concerned, initiate the natural remedies on
daily practice in consuming healthy drinks
and eliminate unhealthy diet where it
helps to the society.

The smoothies produced by the company
having malunggay gelatin as an add-ons is
made of powdered gelatin mixed with
extracted malunggay juice.
The company has operated four (4)
months. The following shows the
feedbacks of the customers after
purchasing and consuming the product.
The customers felt energized and
refreshed
The customers were satisfied by the
taste that made them

Nutrients Description
Nutrient
value
Percentage
Calcium
It is essential to the formation
of bones and teeth.
13mg 1.3%
Vitamin A
Vitamin A is important to the
health of the outer layer of
cells in the skin and organs.
58 IU 2%
Vitamin C
A water-soluble vitamin found
in fruits and leafy vegetables or
made synthetically and used as
antioxidant. Helps boost
immune system.
47.8mg 80%
Potassium
Potassium is necessary for the
heart, kidneys and other
organs to work normally.

109mg 2.5%
Iron
Human body uses iron to carry
oxygen from the lungs to the
rest of the body. The iron in
hemoglobin, a substance found
in blood, does that job. The
iron combined with oxygen in
hemoglobin also gives blood its
red color. Helps prevent
anemia.

0.29mg 3.5%
65
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79

Protein

Proteins build and repairs body
tissues, from hair and
fingernails to muscles. Proteins
also fight infection and carry
oxygen from the lungs to the
rest of the body.
0.54g 1%
Zinc
Is an essential mineral that is
naturally present in some
foods, added to others, and
available as a dietary
supplement.
0.12mg 1%
-Data was based on USDA National Nutrient Data Base

-Based on the respondents who have taken or drink the Frugies Smoothies
have experienced good digestion, feel energized, feel lighter or less stressful,
glowing skin, improves mental ability.
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80

Environmental
Considerations

Global warming is one of the main
issues that the world is experiencing.
Most of the pollution came from
industries, factories and corporations
that use machineries and equipments.
Frugies smoothie production will assure
that production of smoothie will not
damage or harm the environment. The
company will make sure that the wastes
generated from smoothie production
are properly disposed where the
biodegradable and non-biodegradable
are segregated.

WASTE DISPOSAL
Frugies Smoothie Production
produces both Bio and Non-
biodegradable wastes. The company
ensures that the wastes are properly
disposed by segregating the
Biodegradable and Non-biodegradable.
The company will not consider burning
of waste since it can harm the
environment particularly the ozone
layer, thus contribute to the global
warming. The wastes from the company
will be collected by the garbage truck
and will be disposed at the proper
dumpsite.

Category Item Unit
Non-biodegradable
Cup 50 pcs
Straw 100 pcs
Lid 100pcs
Biodegradable
Skin
Carrot (14.29%)
Orange (60%)
Banana (54.42%)
Pineapple (20%)
Seed Apple (4%)
Residue
Orange (20.8%)
Carrot (27.5%)
Pineapple
(49.74%)

Category Item Description
Converted from
Non-biodegradable
to Biodegradable
Paper Cup
Slushy disposable
paper cup with a
volume of 250ml
Paper Lid
A plain round
diposable paper
lid to cover cup
Paper Straw
A 0.5diameter
disposable paper
straw
New method shall apply to help the environmental issues cause by solid waste.
From converting Non-biodegradable to biodegradable use of cup, lid and straw.
The company wants to implement the usage of biodegradable packaging as
soon as the company sees the income increases or once it is already established
because usage of paper packaging needs high investment.
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81

Table 4.1 shows the Socio-economic impact of Frugies Smoothies Production
Government
Frugies Smoothie Production does not
only aim to produce a healthy drink and
improve consumers daily habits by
drinking healthy drinks and products.
But also aim to help improve and
develop the country. The company
ensures to pay the right taxes to help
support the development and
implementation of the government
plans in improving the country

Tax Expense
S.Y.
2014 - 2015
S.Y.
2015 - 2016
S.Y.
2016 - 2017
S.Y.
2017 - 2018
S.Y.
2018 - 2019
P 3,956.55 P 4,985.51 P 5,472.73 P 6343.78 P 7,338.26

Data was based from the projected income statement S.Y. 2014 until 2019
where the business taxable income is over P 30,000 from S.Y. 2014 until 2019
and shall be tax of P 2,500 + 15% of the excess over P 30,000 amounting to
P 3,956.55 for S.Y 2014-2015 and for SY 2015-2016 amounting of P 4,985.51
and P 5,472.73 for S.Y 2016-2017, for S.Y 2017-2018 amounting to P6,343.78
and for S.Y 2018-2019 amounting to P 7,338.26 where it signifies that the
company is improving or progressing as well as the taxes paid is also
increasing.

If Taxable Income is: Tax Due is:
Not over P 10,000 5%
Over P 10,000 but not over
P 30,000
P 500 + 10% of the excess over
P 10,000
Over P 30,000 but not over P
70,000
P 2,500 + 15% of the excess over P
30,000
Over P 70,000 but not over P
140,000
P 8,500 + 20% of the excess over P
70,000
Source: Bureau of Internal Revenue under Philippines Taxation Law.

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82

(Actual Financial Statement)

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83

Financial Basis:
1. The Total Project Cost of the business is Php 9,436.21.
2. The working capital for the first month production is Php 2,246.66.
3. The selling price for each product is Php 20.00.
4. The Depreciation expenses are computed using the straight Line Method
5. The Sales crew allowance is Php 50.00 per day.
6. The disposable gloves are declared as an operating supply since it will be replaced on a
monthly basis.
7. The rent expense for blender is Php 150.00 per month.
8. The Juicer is assumed to have a life expectancy of three years and declared as book
value in the Total Project Cost.
9. The Stall is assumed to have a life expectancy of three years.
10. The equity in the Cash Flow Statement during the Pre operating period is Php 8,506.21
instead of Php 9,436.21 since the juicer costing Php 930.00 that was declared i n the
Total Project Cost is a donated asset.
11. Pre operating expenses include the free taste expenses, Business Permit, Tarpaulin
and as well as the electric installation. This expense is not declared in the Balance Sheet
since this is only an expense needed to initiate the business.

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84

FRUGIES SMOOTHIES PRODUCTION
TOTAL PROJECT COST
Table 5.1
Total Project Cost
Investment Equity
Stall

P1,700.00
Juicer *

930.00
Operating Supplies
Disposable Gloves

32.00
Tools and Supplies
Hairnet

47.50
Face Mask

50.00
Ice Chest

140.00
Utensils

241.50
Record Book

16.00
Ball pen

5.00
Pre - Operating Expenses

4,027.55
Working Capital

2,246.66
Total Project Cost

P9,436.21

Table 5.1 shows the total project cost of Frugies Smoothies Production which is Php 9,436.21 that is
needed to start up the business. The Pre Operating Expenses and Working Capital are computed.
*at book value

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85

PRE OPERATING EXPENSES BREAKDOWN
Table 5.2
PRE-OPERATING EXPENSES
Cost
Free Taste Expenses P 1,869.55
Electric Installation 1,810.00
Certificate of Business Registration 215.00
Tarpaulin 133.00
Total P 4,027.55

Table 5.2 shows the Breakdown of Expenses during the pre operating period. This includes for the
prototype presentation per product as an introductory. See Annex D table 4 for the breakdown of the free
taste expenses.
WORKING CAPITAL
Table 5.3
WORKING CAPITAL
Direct Material
CAO
Carrot P 18.50
Apple 210.00
Orange 84.00
Pia Banana
Pineapple 70.00
Banana 52.50
Verdi
Apple 210.00
Orange 84.00
Malunggay Gelatin 70.00
Evaporated Milk 308.00
Sugar 140.00
Ice 140.00
Direct Labor 350.00
Packaging Expense 237.51
Overhead 13.65
Rent Expense for Blender 150.00
LPG Expense 10.50
Fare 98.00
Total Working Capital P 2,246.66
Table 5.3 shows the breakdown of working capital costing Php 2,246.66 that was used to generate
income.
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86

MONTHLY CASH FLOW STATEMENT
From November 2013 March 2014
Table 5.4
CASH FLOW STATEMENT
2013 2014
TOTAL
PRE-OPERATING NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
CASH IN - FLOWS

Sales P - P 3,651.00 P 7,034.00 P5,694.00 P7,092.00 P2,343.00 P25,814.00
Equity 8,506.21 - - - - - -
Total Cash In-Flows 8,506.21 3,651.00 7,034.00 5,694.00 7,092.00 2,343.00 25,814.00
CASH OUT - FLOWS

-
Stall 1,700.00 - - - - - -
Pre-operating tools & Supplies

-
Disposable Gloves 32.00 - 32.00 32.00 32.00 32.00 128.00
Hairnet 47.50 - - - - - -
Face Mask 50.00 - - - - - -
Utensils 241.50 - - - - - -
Ice Chest 140.00 - - - - - -
Record Book 16.00 - - - - - -
Ball Pen 5.00 - - - - - -
Direct Materials - 1,852.50 3,497.04 2,337.50 3,432.50 1,117.00 12,236.54
Direct Labor - 350.00 750.00 650.00 850.00 400.00 3,000.00
Packaging Expense - 526.00 829.00 591.00 805.50 282.00 3,033.50
Rental Fee for Blender - - 150.00 150.00 150.00 40.00 490.00
LPG Expense - 10.50 19.50 19.50 25.50 12.00 87.00
Fare - 51.00 91.00 91.00 170.00 80.00 483.00
Overhead - - - - - - -
Selling Expenses - - - 30.00 - 80.00 110.00
Pre - operating Expenses 4,027.55 - - - - - -
Personal Drawings - - - - - - -
Total Cash Out-Flows 6,259.55 2,790.00 5,368.54 3,901.00 5,465.50 2,043.00 19,568.04
Net Cash Flows 2,246.66 861.00 1,665.46 1,793.00 1,626.50 300.00 6,245.96
Add: Cash Beginning Balance - 2,246.66 3,107.66 4,773.12 6,566.12 8,192.62 2,246.66
Cash Ending Balance P 2,246.66 P 3,107.66 P4,773.12 P6,566.12 P8,192.62 P8,492.62 P8,492.62

Table 5.4 shows the actual flow of cash from the Pre Operating period which is Php 2,246.66 to the next
succeeding months. This indicates the difference between the Cash In Flows which include the operating sales of
the business and equity to the total Cash Out Flows which include all the expenses to operate the business.
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87

MONTHLY INCOME STATEMENT
Table 5.5

2013 2014
TOTAL
NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
Sales P3,651.00 P7,034.00 P5,694.00 P7,092.00 P2,343.00 P25,814.00
Less: Sales Discount - - - - - -
Sales Return - - - - - -
Net Sales 3,651.00 7,034.00 5,694.00 7,092.00 2,343.00 25,814.00
Less: Cost of Goods Sold 2,790.00 5,336.54 3,839.00 5,433.50 1,931.00 19,330.04
Gross Income 861.00 1,697.46 1,855.00 1,658.50 412.00 6,483.96
Less: Selling Expenses - - 30.00 - 80.00 110.00
Depreciation Expenses 73.05 73.05 73.05 73.05 73.05 365.25
Accrued Advertising& Reg. Expense 805.51 805.51 805.51 805.51 805.51 4,027.55
Accrued Pre-operating tools & supplies 106.40 106.40 106.40 106.40 106.40 532.00
Operating Supplies - 32.00 32.00 32.00 32.00 128.00
Net Income P (123.96) P 680.50 P 808.04 P 641.54 P (684.96) P 1,321.16

Table 5.5 shows the actual monthly income of Frugies Smoothies Production from the month of November to the
month of March that was generated by subtracting the Cost of Goods Sold, selling expenses and depreciation
expenses from the monthly net sales of the business. See Table 5.7 for the Schedule of Cost of Goods Sold.

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88

MONTHLY BALANCE SHEET
Table 5.6
BALANCE SHEET
2013 2014
PRE -
OPERATING
Current Asset

Cash P 2,246.66 P 3,107.66 P 4,773.12 P 6,566.12 P8,192.62 P8,492.62
Accounts Receivables - - - - - -
Registration & Advertisement 4,027.55 3,222.04 2,416.53 1,611.02 805.51 -
Operating tools & Supplies 532.00 425.60 319.20 212.80 106.40 -
Raw Materials Inventory - - - - - -
Finished Goods Inventory - - - - - -
TOTAL CURRENT ASSET P 6,806.21 P 6,755.30 P 7,508.85 P8,389.94 P9,104.53 P8,492.62
Fixed Assets

Stall 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00
Juicer 930.00 930.00 930.00 930.00 930.00 930.00
TOTAL FIXED ASSET 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00
Less: Accum. Dep. of Juicer - 25.83 51.66 77.49 103.32 129.15
Accum. Dep. of Stall - 47.22 94.44 141.66 188.88 236.10
Book Value of Fixed Assets 2,630.00 2,556.95 2,483.90 2,410.85 2,337.80 2,264.75
TOTAL ASSETS P 9,436.21 P9,312.25 P9,992.75 P10,800.79 P11,442.33 P10,757.37

Current Liabilities

Accounts Payable - - - - - -
TOTAL CURRENT LIABILITIES - - - - - -
Long Term Liability - - - - - -
TOTAL LIABILITIES - - - - - -
Capital/Beginning Equity

Donated Equity 930.00 930.00 930.00 930.00 930.00 930.00
Capital Contribution 8,506.21 8,506.21 8,506.21 8,506.21 8,506.21 8,506.21
Total Capital/Beginning Equity 9,436.21 9,436.21 9,436.21 9,436.21 9,436.21 9,436.21
Net Income - (123.96) 556.54 1,364.58 2,006.12 1,321.16
Less: Drawing - - - - - -
Ending Capital 9,436.21 9,312.25 9,992.75 10,800.79 11,442.33 10,757.37
Total Liability and Owner's Equity P 9,436.21 P 9,312.25 P 9,992.75 P 10,800.79 P 11,442.33 P10,757.37
Table 5.6 shows the monthly Balance sheet of Frugies Smoothies Production which includes the Total Liability and
Owners Equity of the business and as well as the Total Assets from November 2013 to March 2014.
74
89

89

MONTHLY COST OF GOODS SOLD SCHEDULE
Table 5.7

2013 2014
TOTAL
Direct Material 1,852.50 3,497.04 2,337.50 3,432.50 1,117.00 12,236.54
Direct Labor 350.00 750.00 650.00 850.00 400.00 3,000.00
Prime Cost 2,202.50 4,247.04 2,987.50 4,282.50 1,517.00 15,236.54
Add: Packaging Expense 526.00 829.00 591.00 805.50 282.00 3,033.50
Rent Expense for Blender - 150.00 150.00 150.00 40.00 490.00
Add: Overhead Cost - - - - - -
Add:LPG Expense 10.50 19.50 19.50 25.50 12.00 87.00
Add: Fare 51.00 91.00 91.00 170.00 80.00 483.00
Production Cost 2,790.00 5,336.54 3,839.00 5,433.50 1,931.00 19,330.04
Add: Finished Goods
(Beginning) Inventory
- - - - - -
Cost of Good Available for
Sale
2,790.00 5,336.54 3,839.00 5,433.50 1,931.00 19,330.04
Less: Finished Goods
(Ending) Inventory
- - - - - -
Cost of Goods Sold 2,790.00 5,336.54 3,839.00 5,433.50 1,931.00 19,330.04

Table 5.7 shows the monthly prime cost and production cost of Frugies Smoothies Production which
includes all the raw materials needed in the production and including the Direct Labor. See Table 5.8 for the
Schedule of Raw Materials.

75
90

90

MONTHLY DIRECT MATERIAL SCHEDULE
From November 2013 to March 2014
Table 5.8

Direct Materials
2013 2014
TOTAL
CAO

Carrot P 40.00 P 15.00 P - P - P - P 55.00
Apple 143.00 200.00 - - - 343.00
Orange 50.00 72.00 - - - 122.00
Pia Banana

-
Pineapple 410.00 445.00 180.00 115.00 20.00 1,170.00
Banana 195.00 380.00 182.00 100.00 50.00 907.00
Verdi

-
Apple 130.00 547.00 460.00 980.00 280.00 2,397.00
Orange 50.00 302.00 230.00 485.00 186.00 1,253.00
Malunggay Gelatin 86.50 178.50 137.00 185.50 65.50 653.00
Evaporated Milk 335.00 641.54 473.25 759.00 229.50 2,438.29
Sugar 224.00 387.00 359.25 444.00 111.00 1,525.25
Ice 189.00 329.00 316.00 364.00 175.00 1,373.00
Total P 1,852.50 P 3,497.04 P 2,337.50 P 3,432.50 P 1,117.00 P 12,236.54

Table 5.8 shows the total monthly Direct Material Schedule of Frugies Smoothies Production
from the month of November 2013 to the month of March 2014.

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91

91

Financial Analysis

The financial Analysis measures the projects profitability, liquidity, cash solvency and
stability. It is a systematic way of determining the financial aspect of the project. Through this,
the interpretation of the financial statements will determine the projects strength and
weakness.

A. Test of Profitability
1. Gross Profit Margin

=

100

Gross Profit Ratio reveals the profit left over from operations after all variable costs
have been subtracted from revenues. In essence, it reveals the efficiency of the production
process in relation to the prices and unit volumes at which products are sold.

Frugies Smoothies Production
Monthly Gross Profit Margin
Table 5.9
MONTHLY GROSS PROFIT MARGN
2013 2014
Gross Profit P 861.00 P 1,697.46 P 1,855.00 P 1,658.50 P 412.00
Net Sales 3,651.00 7,034.00 5,694.00 7,092.00 2,343.00
Gross Profit Ratio 0.24 0.24 0.33 0.23 0.18

Table 5.9 shows that Frugies Smoothies Production was able to generate a gross profit of 24 centavos for the
month of November, 24 centavos for the month of December, 33 centavos for the month of January, 23 centavos
for the month of February and 18 centavos for the month of March out of the one peso sale from November 2013
to March 2014.

77
92

92

2. Net Profit Margin

=

100
The net profit margin, also known as net margin, indicates how much income net income a
company makes with total sales achieved.

Monthly Net Profit Margin
Table 5.10

MONTHLY NET PROFIT MARGIN
2013 2014
Net Profit P (123.96) P 680.50 P 808.04 P 641.54 P (684.96)
Net Sales 3,651.00 7,034.00 5,694.00 7,092.00 2,343.00
Net Profit Margin (0.03) 0.10 0.14 0.09 (0.29)

Table 5.10 shows the monthly net profit margin of Frugies Smoothies Production. This means that the business
was able to generate a net profit of -3 centavos for the month of November, 10 centavos for the month of
December, 14 centavos for the month of January, 9 centavos for the month of February and-29 centavos for the
month of March out of the one peso sale from November 2013 to January 2014.

78
93

93

B. Assets Turnover
1. Total assets turnover

=

100
The Total assets turnover indicates the amount of sales a company makes out of its total assets.
This indicates how efficiently a firm is using its assets in generating sales.

Monthly Assets Turnover
Table 5.11
MONTHLY TOTAL
ASSETS TURNOVER
2013 2014
Sales

P3,651.00

P7,034.00

P5,694.00

P7,092.00

P2,343.00
Total Assets

9,312.25

9,992.75

10,800.79

11,442.33

10,757.37
Total Assets Turnover 39% 70% 53% 62% 22%

Table 5.11 shows the Total Assets Turnover of Frugies Smoothies Production. This means that the business was
able to generate a sale of 39 centavos for the month of November, 70 centavos for the month of December, 53
centavos for the month of January, 62 centavos for the month of February and 22 centavos for the month of
March out of the one peso assets from November 2013 to January 2014.

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94

94

C. Test of Capital Investment
1. Return on Investment
=

100
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an
investment. It is one way of considering profits in relation to capital invested.

Return on Investment (Actual Monthly Financial Investment)
Table 5.12

Average Monthly Income 264.23
Total Investment

9,436.21
Return on Investment 3%

Table 5.12 shows that the business has an average return on investment of 3% out of the total project
cost based on actual monthly financial statement.

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95

95

2. Payback Period
=

The length of time required to recover the cost of an investment. The payback period of a given
investment or project is an important determinant of whether to undertake the position or project,
longer payback periods are typically not desirable for investment positions.

Payback Period (Actual Monthly Financial Statement)
Table 5.13
Total Project Cost 9,436.21
Average Monthly Income 264.23
Payback Period 35.71

Table 5.13 shows that the total project cost of Frugies Smoothies Production is Php 9,436.21 which can be
recovered in 35.71 (35 months and 18 days) or 3 (35.71 months / 12months operation per year) years.

81
96

96

A. Break even Analysis

An analysis to determine the point at which revenue received equals the costs associated
with receiving the revenue. Break-even analysis calculates what is known as a margin of safety,
the amount that revenues exceed the break-even point. This is the amount that revenues can
fall while still staying above the break-even point.

Break even Analysis (Actual Monthly Production)
Table 5.14
ACCOUNT TITLE
2013 2014
Fixed Costs

Rent Expense P - P 150.00 P 150.00 P 150.00 P 40.00
Depreciation Expense 73.05 73.05 73.05 73.05 73.05
Accrued Advertising& Registration
Expense
805.51 805.51 805.51 805.51 805.51
Accrued Pre-operating tools &
supplies
106.40 106.40 106.40 106.40 106.40
TOTAL P 984.96 P 1,134.96 P1,134.96 P1,134.96 P1,024.96

Variable Costs

Direct Materials 10.15 9.94 8.21 9.68 9.53
Pre - operating tools & Supplies - 0.09 0.11 0.09 0.30
Selling Expense - - 0.11 - 0.70
Packaging Expense 2.88 2.36 2.08 2.27 2.41
LPG Expense 0.06 0.06 0.07 0.07 0.10
Fare 0.28 0.26 0.32 0.48 0.68
Labor Cost 1.92 2.13 2.28 2.40 3.41
TOTAL 15.29 14.84 13.18 14.99 17.14

Contribution Margin 4.71 5.16 6.82 5.01 2.86

Break - Even in Cups 209.12 219.95 166.42 226.54 358.95
Break - Even in Pesos P 4,182.42 P 4,399.07 P 3,328.33 P4,530.78 P7,178.92

Table 5.14 shows the number of cups that Frugies Smoothies Production has sold in order to attain Break Even in
which no Profit or Loss is shown. This means that the Business should have sold 209.12 cups in November, 219.95
cups in December, 166.42 cups in January, 226.54 cups in February and 358.95 cups in March.

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97

A. Cost Structure and Operating Leverage

Cost Structure (Actual Monthly Production)
Table 5.15

2013 2014
Sales 3,651.00 100% 7,034.00 100% 5,694.00 100% 7,092.00 100% 2,343.00 100%
Variable Expense 2,790.00 76% 5,218.54 74% 3,751.00 0.66 5,315.50 0.75 2,003.00 85%
Contribution
Margin
861.00 24% 1,815.46 26% 1,943.00 0.34 1,776.50 0.25 340.00 15%
Fixed Expense 984.96 27% 1,134.96 16% 1,134.96 0.20 1,134.96 0.16 1,024.96 44%
Net Profit (123.96) -3% 680.50 10% 808.04 14% 641.54 9% (684.96) -29%

Table 5.15 shows the monthly cost structure of Frugies Smoothies Production. The computed contribution margin
and net income will be use as a basis for computing the monthly operating leverage factor of the business.

Operating Leverage Factor (Actual Monthly Production)
Table 5.16

CONTRIBUTION MARGIN NET INCOME OPERATING LEVERAGE FACTOR
November 861.00 (123.96) (6.95)
December 1,815.46 680.50 2.67
January 1,943.00 808.04 2.40
February 1,776.50 641.54 2.77
March 340.00 (684.96) (0.50)

Table 5.16 shows the monthly operating leverage factor of Frugies Smoothies Production. This shows the extent to
which the business uses fixed costs in the cost structure and the ability to generate an increase in net income
when sales revenue increases.

Percentage Change in Net Income (Actual Monthly Production)
Table 5.17

PERCENTAGE INCREASE IN SALES
REVENUE
OPERATING
LEVERAGE FACTOR
PERCENTAGE CHANGE IN NET INCOME
November 40% (6.95) -277.8%
December 40% 2.67 106.7%
January 40% 2.40 96.2%
February 40% 2.77 110.8%
March 40% (0.50) -19.9%
Table 5.17 shows the monthly percentage change in net income of Frugies Smoothies Production by multiplying
the monthly percentage increase in sales revenue to the monthly operating leverage factor (see Table 5.16 for the
computation of operating leverage) of the business.
83
98

98

(Projected Financial Statement)

99

99

Financial Assumptions:

1. The basis for projecting the annual sales for the School Year 2013 2014 to School Year
2017 2018 is the actual monthly sales generated during the four months operation.
2. The Projected yearly increase in sales is based on the yearly growth rate of the
production capacity in the full capacity utilization. See table 3.1 for details.

84
100

100

PROJECTED ANNUAL CASH FLOW STATEMENT
S.Y 2013 -2014 to S.Y. 2018 -2019
Table 5.18
CASH FLOW
STATEMENT
S.Y.
2014-2015
S.Y.
2015 - 2016
S.Y.
2016 - 2017
S.Y.
2017 - 2018
S.Y.
2018 - 2019
CASH IN - FLOWS

Sales P159,276.83 P213,430.95 P266,788.69 P320,146.43 P374,571.32
Equity - - - - -
Total Cash In-Flows 159,276.83 213,430.95 266,788.69 320,146.43 374,571.32
CASH OUT - FLOWS

Stall - - 5,738.00 - -
Juicer - - 5,231.00 - -
Operating tools
&Supplies
Disposable Gloves 384.00 384.00 384.00 384.00 384.00
Hairnet 99.00 103.00 107.00 111.00 115.00
Face Mask 104.00 108.00 112.00 116.00 120.00
Utensils - - 362.25 - -
Ice Chest - - 210.00 - -
Record Book 34.00 36.00 38.00 40.00 42.00
Ball Pen 72.00 84.00 96.00 108.00 120.00
Direct Materials 44,345.22 59,422.60 74,278.25 89,133.89 104,286.66
Direct Labor 10,872.00 14,568.48 18,210.60 21,852.72 25,567.68
Packaging Expense 10,993.40 14,731.16 18,413.95 22,096.73 25,853.18
Rental Fee for Blender 1,775.76 2,379.52 2,974.40 3,569.28 4,176.05
LPG Expense 315.29 422.49 528.11 633.73 741.47
Fare 1,750.39 2,345.52 2,931.90 3,518.28 4,116.39
Selling Expenses 398.64 534.18 667.72 801.27 937.48
Income Tax Payment - 3,956.55 4,985.51 5,472.73 6,343.78
Salary Expense 47,400.00 70,500.00 94,000.00 118,500.00 142,200.00
Pre - operating
Expenses
Total Cash Out-Flows P 118,543.70 P169,575.49 P 229,268.68 P 266,337.64 P 315,003.69
Net Cash Flows 40,733.13 43,855.46 37,520.01 53,808.79 59,567.63
Add: Cash Beginning
Balance
8,492.62 49,225.75 93,081.20 130,601.22 184,410.01
Cash Ending Balance P 49,225.75 P 93,081.20 P 130,601.22 P 184,410.01 P 243,977.64

Table 5.18 Shows the Projected annual cash flow of Frugies Smoothies Production from School Year 2013 2014
to School Year 2018 2019.
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101

101

PROJECTED ANNUAL INCOME STATEMENT
S.Y. 2013 2014 to S.Y. 2018 - 2019
Table 5.19

S.Y.
2014 - 2015
S.Y.
2015 - 2016
S.Y.
2016 - 2017
S.Y.
2017 - 2018
S.Y.
2018 - 2019
Sales 159,276.83 213,430.95 266,788.69 320,146.43 374,571.32
Less: Sales Discount - - - - -
Sales Return - - - - -
Net Sales 159,276.83 213,430.95 266,788.69 320,146.43 374,571.32
Less: Cost of Goods Sold 70,052.06 93,869.76 117,337.20 140,804.64 164,741.43
Gross Income 89,224.77 119,561.19 149,451.49 179,341.79 209,829.89
Less: Selling Expenses 398.64 534.18 667.72 801.27 937.48
Salary Expense 47,400.00 70,500.00 94,000.00 118,500.00 142,200.00
Advertising &
Registration Expense
- - - - -
Pre-operating tools
& supplies
- - - - -
Operating Supplies 693.00 715.00 1,309.25 759.00 781.00
Earnings before tax and
depreciation
40,733.13 47,812.01 53,474.52 59,281.52 65,911.41
Less: Depreciation Expenses 1,022.78 1,241.97 3,656.33 3,656.33 3,656.33
Earnings before tax 39,710.35 46,570.04 49,818.18 55,625.19 62,255.08
Tax Expense 3,956.55 4,985.51 5,472.73 6,343.78 7,338.26
Net Income 35,753.80 41,584.53 44,345.46 49,281.41 54,916.82

Table 5.19 shows the computation for the projected annual income statement of Frugies Smoothies Production
from School Year 2013 2014 to School Year 2018 - 2019. It shows the possible Annual Net Income that the
company can generate. See Table 5.21 For the Schedule of Cost of Goods Sold.

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102

PROJECTED ANNUAL BALANCE SHEET
S.Y. 2013 2014 to S.Y. 2018 - 2019
Table 5.20

BALANCE SHEET
S.Y.
2014 - 2015
S.Y.
2015 - 2016
S.Y.
2016 - 2017
S.Y.
2017 - 2018
S.Y.
2018 - 2019
Current Asset

Cash P49,225.75 P93,081.20 P130,601.22 P184,410.01 P243,977.64
Accounts Receivables - - - - -
Registration & Advertisement - - - - -
Operating tools & Supplies - - - - -
Raw Materials Inventory - - - - -
Finished Goods Inventory - - - - -
TOTAL CURRENT ASSET P49,225.75 P93,081.20 P130,601.22 P184,410.01 P243,977.64
Fixed Assets

Stall 1,700.00 1,700.00 5,738.00 5,738.00 5,738.00
Juicer 930.00 930.00 5,231.00 5,231.00 5,231.00
TOTAL FIXED ASSET P2,630.00 P2,630.00 P10,969.00 P10,969.00 P10,969.00
Less: Accum. Dep. of Juicer 490.82 930.00 1,743.67 3,487.33 5,231.00
Accum. Dep. of Stall 897.21 1,700.00 1,912.67 3,825.33 5,738.00
Book Value of Fixed Assets 1,241.97 - 7,312.67 3,656.33 -
TOTAL ASSETS P50,467.72 P93,081.20 P137,913.88 P188,066.34 P243,977.64

Current Liabilities

Income Tax Payable 3,956.55 4,985.51 5,472.73 6,343.78 7,338.26
TOTAL CURRENT LIABILITIES 3,956.55 4,985.51 5,472.73 6,343.78 7,338.26
Long Term Liability - - - -

TOTAL LIABILITIES 3,956.55 4,985.51 5,472.73 6,343.78 7,338.26
Capital/Beginning Equity

Donated Equity 930.00 930.00 930.00 930.00 930.00
Capital Contribution 8,506.21 8,506.21 8,506.21 8,506.21 8,506.21
Total Capital/Beginning Equity 9,436.21 9,436.21 9,436.21 9,436.21 9,436.21
Net Income 37,074.96 78,659.49 123,004.95 172,286.36 227,203.17
Less: Drawing - - - - -
Ending Capital 46,511.17 88,095.70 132,441.16 181,722.57 236,639.38
Total Liability and Owner's Equity P50,467.72 P93,081.20 P137,913.88 P188,066.34 P243,977.64

Table 5.20 shows the projected Annual Balance sheet of Frugies Smoothies Production which includes the Total
Liability and Owners Equity of the business and as well as the Total Assets from School Year 2013 - 2014 to School
Year 2018 2019.

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103

103

PROJECTED ANNUAL COST OF GOODS SOLD SCHEDULE
S.Y. 2013 2014 to S.Y. 2018 -2019
Table 5.21

S.Y. 2014 - 2015 S.Y. 2015 - 2016 S.Y. 2016 - 2017 S.Y. 2017 - 2018 S.Y. 2018 2019
Direct Material P 44,345.22 P 59,422.60 P 74,278.25 P 89,133.89 P 104,286.66
Direct Labor 10,872.00 14,568.48 18,210.60 21,852.72 25,567.68
Prime Cost 55,217.22 73,991.08 92,488.85 110,986.61 129,854.34
Add: Packaging Expense 10,993.40 14,731.16 18,413.95 22,096.73 25,853.18
Add: Rent Expense for
Blender
1,775.76 2,379.52 2,974.40 3,569.28 4,176.05
Add: LPG Expense 315.29 422.49 528.11 633.73 741.47
Add: Fare 1,750.39 2,345.52 2,931.90 3,518.28 4,116.39
Production Cost 70,052.06 93,869.76 117,337.20 140,804.64 164,741.43
Add: Finished Goods
(Beginning) Inventory
- - - - -
Cost of Good Available for
Sale
70,052.06 93,869.76 117,337.20 140,804.64 164,741.43
Less: Finished Goods
(Ending) Inventory
- - - - -
Cost of Goods Sold P 70,052.06 P93,869.76 P117,337.20 P140,804.64 P164,741.43

Table 5.21 shows the prime cost and the production cost of Frugies Smoothies Production which includes all the
raw materials needed in the production and including the Direct Labor. See Table 5.22 for the Schedule of Raw
Materials.

88
104

104

PROJECTED ANNUAL DIRECT MATERIAL SCHEDULE
S.Y.2013 -2014 to S.Y. 2018 - 2019
Table 5.22

Direct Materials
S.Y. 2014 - 2015 S.Y. 2015 - 2016 S.Y. 2016 2017 S.Y. 2017 - 2018 S.Y. 2018 - 2019
CAO

Carrot P 199.32 P 267.09 P 333.86 P 400.63 P 468.74
Apple 1,243.03 1,665.66 2,082.08 2,498.49 2,923.24
Orange 442.13 592.45 740.56 888.68 1,039.75
Pia Banana - - - - -
Pineapple 4,240.08 5,681.71 7,102.13 8,522.56 9,971.40
Banana 3,286.97 4,404.54 5,505.67 6,606.81 7,729.96
Verdi - - - - -
Apple 8,686.73 11,640.22 14,550.27 17,460.32 20,428.58
Orange 4,540.87 6,084.77 7,605.96 9,127.15 10,678.77
Malunggay Gelatin 2,366.47 3,171.07 3,963.84 4,756.61 5,565.23
Evaporated Milk 8,836.36 11,840.73 14,800.91 17,761.09 20,780.47
Sugar 5,527.51 7,406.86 9,258.57 11,110.29 12,999.04
Ice 4,975.75 6,667.51 8,334.38 10,001.26 11,701.48
TOTAL P 44,345.22 P 59,422.60 P 74,278.25 P 89,133.89 P 104,286.66

Table 5.22 shows the total Projected Annual Direct Material Schedule of Frugies Smoothies Production from
School Year 2013 2014 to School Year 2018 2019.

89
105

105

Financial Analysis

The financial Analysis measures the projects profitability, liquidity, cash solvency and
stability. It is a systematic way of determining the financial aspect of the project. Through this,
the interpretation of the financial statements will determine the projects strength and
weakness.

A. Test of Profitability
1. Gross Profit Margin

=

100

Gross Profit Ratio reveals the profit left over from operations after all variable costs
have been subtracted from revenues. In essence, it reveals the efficiency of the production
process in relation to the prices and unit volumes at which products are sold.

Annual Projected Gross Profit Margin
Table 5.23
ANNUAL GROSS PROFIT
MARGIN
S.Y.
2014-2015
S.Y.
2015-2016
S.Y.
2016-2017
S.Y.
2017-2018
S.Y.
2018 2019
Gross Profit P89,224.77 P119,561.19 P149,451.49 P179,341.79 P209,829.89
Net Sales 159,276.83 213,430.95 266,788.69 320,146.43 374,571.32
Gross Profit Ratio 56% 56% 56% 56% 56%

Table 5.23 shows the Annual Projected Gross Profit of Frugies Smoothies Production. This means that the business
can generate a gross profit of 56 centavos for the School Year 2014 2015, 56 centavos for the School Year 2015
2016, 56 centavos for the School Year 2016 2017, 56 centavos for the School Year 2017 2018 and 56 centavos
for the School Year 2018 2019 out of the one peso sale from School Year 2013 2014 to School Year 2018 - 2019.

90
106

106

2. Net Profit Margin

=

100
The net profit margin, also known as net margin, indicates how much income net income a
company makes with total sales achieved.

Annual Projected Net Profit Margin
Table 5.24
ANNUAL NET PROFIT
MARGIN
S.Y.
2014-2015
S.Y.
2015-2016
S.Y.
2016-2017
S.Y.
2017-2018
S.Y.
2018 - 2019
Net Profit P 35,753.80 P 41,584.53 P 44,345.46 P 49,281.41 P 54,916.82
Net Sales 159,276.83 213,430.95 266,788.69 320,146.43 374,571.32
Net Profit Margin 22% 19% 17% 15% 15%

Table 5.24 shows the Annual Projected Net Profit of Frugies Smoothies Production. This means that the business
can generate an income of 22 centavos for the School Year 2014 2015, 19 centavos for the School Year 2015
2016, 17 centavos for the School Year 2016 2017, 15 centavos for the School Year 2017 2018 and 15 centavos
for the School Year 2018 2019 out of the one peso sale from School Year 2013 2014 to School Year 2018
2019.

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107

107

B. Assets Turnover
1. Total assets turnover

=

100
The Total assets turnover indicates the amount of sales a company makes out of its total assets.
This indicates how efficiently a firm is using its assets in generating sales.

Annual Projected Assets Turnover
Table 5.25
ANNUAL TOTAL ASSETS
TURNOVER
S.Y 2014-2015 S.Y. 2015-2016 S.Y. 2016-2017 S.Y 2017-2018 S.Y 2018 - 2019
Sales P159,276.83 P213,430.95 P266,788.69 P320,146.43 P374,571.32
Total Assets 50,467.72 93,081.20 137,913.88 188,066.34 243,977.64
Total Assets Turnover 316% 229% 193% 170% 154%

Table 5.25 shows the Annual Projected Total Assets Turnover of Frugies Smoothies Production. This means that the
business can generate a sale of 3 pesos and 16 centavos for the School Year 2014 - 2015, 2 pesos and 29 centavos
for the School Year 2015 2016, 1 peso and 93 centavos for the School Year 2016 2017, 1 peso and 70 centavos
for the School Year 2017 2018 and 1 peso and 54 centavos for the School Year 2018 2019 out of the one peso
sale from School Year 2013 2014 to School Year 2018 2019.

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108

108

C. Test of Capital Investment
1. Return on Investment
=

100
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an
investment. It is one way of considering profits in relation to capital invested.

Return on investment (Projected Annual Financial Statement)
Table 5.26

Projected Annual Income

45,176.40
Total Investment

9,436.21
Return on Investment 479%

Table 5.26 shows that the business has an average return on investment of 479% of the total project
cost based on the computed actual annual projected financial statement.

Conclusion:
Based on the computation shown in Table 5.12 from the average Monthly income of
Php 264.23 it can be assumed that the average annual income is Php 3,170.76 (Php 264.23 x 12
months). Also, from the computation shown in Table 5.26 the projected annual income is Php
45,176.40 and it shows a big difference that affects the ROI of the business. The average annual
income has an ROI of 34% while the ROI of the projected annual income is 479%. The big
difference had occurred due to the increase of yearly capacity in the production.

Action Plan:
With the big difference of ROI between the average annual income and projected
annual income the Frugies Smoothies Production should follow the addressed yearly increase in
the utilization of production output or exceed the 100% full capacity utilization in order to
attain higher percentage of ROI.
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2. Payback Period
=

The length of time required to recover the cost of an investment. The payback period of a given
investment or project is an important determinant of whether to undertake the position or project,
longer payback periods are typically not desirable for investment positions.

Payback Period (Annual Projected Financial Statement)
Table 5.27
Total Project Cost 9,436.21
Average Annual Income 45,176.40
Payback Period 0.21

Table 5.27 shows that the total project cost of Frugies Smoothies Production is Php 9,436.21 which can be recovered in
0.21 years or 2.88 (0.24 years x 12months operation per year) months or 2 months and 14 days.

Conclusion:
Based from the Payback period presented in Tables 5.13 and 5.27 the actual monthly
payback is 35 months and 18 days while the projected monthly payback is 2 month and 14
days. There is a difference of 33 months, and the invested capital will be returned in less than a
year for the projected annual income.

Action Plan:
In order to attain the 2 months and 14 days payback period the Frugies Smoothies
Production must increase the monthly income by conducting a marketing strategy in order to
increase the number of cups being sold.

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110

C. Break even Analysis

An analysis to determine the point at which revenue received equals the costs associated
with receiving the revenue. Break-even analysis calculates what is known as a margin of safety,
the amount that revenues exceed the break-even point. This is the amount that revenues can
fall while still staying above the break-even point.

Break even Analysis (Annual Projected Production)
Table 5.28
ACCOUNT TITLE S.Y. 2014 - 2015 S.Y. 2015 - 2016 S.Y. 2016 - 2017 S.Y. 2017 - 2018 S.Y. 2018 - 2019
Fixed Costs

Rent Expense P 1,775.76 P 2,379.52 P 2,974.40 P 3,569.28 P 4,176.05
Depreciation Expense 1,022.78 1,241.97 3,656.33 3,656.33 3,656.33
Salary Expense 47,400.00 70,500.00 94,000.00 118,500.00 142,200.00
TOTAL 50,198.54 74,121.49 100,630.73 125,725.61 150,032.38

Variable Costs

Direct Materials 5.57 5.57 5.57 5.57 5.57
Operating Supplies 0.09 0.07 0.10 0.05 0.04
Selling Expense 0.05 0.05 0.05 0.05 0.05
Packaging Expense 1.38 1.38 1.38 1.38 1.38
LPG Expense 0.04 0.04 0.04 0.04 0.04
Fare 0.22 0.22 0.22 0.22 0.22
Direct Labor Cost 1.37 1.37 1.37 1.37 1.37
Tax Expense 0.50 0.47 0.41 0.40 0.39
TOTAL 9.21 9.16 9.13 9.07 9.06

Contribution Margin 10.79 10.84 10.87 10.93 10.94

Break - Even in Cups 4,651.10 6,836.21 9,259.16 11,499.71 13,710.18
Break - Even in Pesos P 93,022.07 P 136,724.26 P 185,183.11 P 229,994.23 P 274,203.70

Table 5.28 shows the number of cups that Frugies Smoothies Production must sell in order to attain Break Even
in which no Profit or Loss is shown. This means that the Business must sell 4,651 cups in the School Year 2014
2015, 6,836.21 cups in the School Year 2015 2016, 9,259.16 cups in the School Year 2016 2017, 11,499.71 cups
in School year 2017 2018 and 13,710.18 cups in School Year 2018 2019.

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111

D. Cost Structure and Operating Leverage

Cost Structure (Annual Projected Production)
Table 5.29

S.Y. 2014 2015 S.Y. 2015 - 2016 S.Y. 2016 - 2017 S.Y 2017 2018 S.Y. 2018 - 2019
Sales 159,276.83 100% 213,430.95 100% 266,788.69 100% 320,146.43 100% 374,571.32 100%
Variable Expense 73,324.49 46% 97,724.93 46% 121,812.50 46% 145,139.41 45% 169,622.12 45%
Contribution Margin 85,952.34 54% 115,706.02 54% 144,976.19 54% 175,007.02 55% 204,949.20 55%
Fixed Expense 50,198.54 32% 74,121.49 35% 100,630.73 38% 125,725.61 39% 150,032.38 40%
Net Profit 35,753.80 22% 41,584.53 19% 44,345.46 17% 49,281.41 15% 54,916.82 15%

Table 5.29 shows the Annual Projected cost structure of Frugies Smoothies Production. The computed
contribution margin and net income will be use as a basis for computing the Projected Annual operating leverage
factor of the business.

Operating Leverage Factor (Annual Projected Production)
Table 5.30

CONTRIBUTION MARGIN NET INCOME OPERATING LEVERAGE FACTOR
S.Y. 2014 - 2015 85,952.34 35,753.80 2.40
S.Y. 2015 - 2016 115,706.02 41,584.53 2.78
S.Y. 2016 - 2017 144,976.19 44,345.46 3.27
S.Y. 2017 - 2018 175,007.02 49,281.41 3.55
S.Y. 2018 - 2019 204,949.20 54,916.82 3.73

Table 5.30 shows the monthly operating leverage factor of Frugies Smoothies Production. This shows the extent to
which the business uses fixed costs in the cost structure and the ability to generate an increase in net income
when sales revenue increases.

Percentage Change in Net Income (Annual Projected Production)
Table 5.31

PERCENTAGE INCREASE IN SALES REVENUE OPERATING LEVERAGE FACTOR PERCENTAGE CHANGE IN NET INCOME
S.Y. 2014 - 2015 40% 2.40 96.2%
S.Y. 2015 - 2016 40% 2.78 111.3%
S.Y. 2016 - 2017 40% 3.27 130.8%
S.Y. 2017 -2018 40% 3.55 142.0%
S.Y. 2018 - 2019 40% 3.73 149.3%

Table 5.31 shows the projected annual percentage change in net income of Frugies Smoothies Production by
multiplying the annual percentage increase in sales revenue to the actual operating leverage factor (see Table 5.30
for the computation of operating leverage) of the business.
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112

113

113

Conclusions and Recommendations
A. Major Findings and Conclusion
The study was thoroughly evaluated based from the different aspects of the research
and it is concluded that Frugies Smoothies Production in actual fact is feasible in the market
once the business knows how to hit the desires of the consumers.
The business was not able to expand their market beyond the College of Engineering
and Technology grounds to other colleges or outside the vicinity of Western Mindanao State
University due to limited investment. From the equity of the business the researchers were able
to generate sufficient profit. Along with the feedbacks of the consumers with regards of the
product, it clearly shows that there is a greater chance of improvement particularly if the
marketing strategies are expanded.
The net income per product may vary to the number of cups being sold per day, the
higher the cups being sold, the higher the ROI will be but if the company did not meet the
target sales per day there will be a loss on profit due to the expenses incurred.

B. Recommendation

Strategic plan in marketing the product is very important in this study, critical points are
need to overcome like perishable goods, lapses of smoothies if it will not be sold before the
given holding time and the competitor.
Company should keep on researching and be updated about the consumer demands
especially when it comes to smoothies. Company should also be creative and be specific about
the details of the product from the quality of its taste to the packaging to attract consumers
and meet the consumers demand.
The company should not only focus on gaining profit but also must help the personnel
to be motivated, optimistic and effective through providing seminars, training and activities
that will boost their skills.
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114

115

115

SENSITIVITY ANALYSIS
Frugies was established in Western Mindanao State University last November 19, 2013.
In four months of selling, the business had encountered some constraints in place, promotion
and in the price itself that can affect the sales and profitability of the business. By applying
marketing strategy, it allows the researcher to assess the impact of changes in sales as well as
to increase profitability and a tool to determine which necessary output of the said strategies
are to be relevant in decision-making and provide conclusion and optimum solution of the
problem. These are the three (3) constraints that the business had encountered and the
marketing strategies used in every constraint:
1
st
THE PLACE
Strategy: EXPANSION OF THE MARKET PLACE

2
nd
THE PROMOTION
Strategy: BROCHURE DISTRIBUTION

3
rd
THE PRICE
Strategy: DECREASE IN PRICE

1
st
THE PLACE
The location of the stall is in the front of the College of Engineering and Technology
where the engineering students are usually passing by. The other colleges dont know the
product and the place is not ideal to catch the attention of the consumer. The researcher
decided to expand the market place of the business.

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116

Strategy: EXPANSION OF THE MARKET PLACE
By placing the stall in one place to another, in a place where in most of the people
would pass by without focusing the area of engineering alone, the sales would possibly increase
by 10% yearly. Moreover the price is now P20.00 for all flavors in which it is much affordable to
the students of Western Mindanao State University. In fact, by using this strategy the sales
increases by 100% monthly which is based on the actual income statement as shown in Table
7.1.
Table 7.1

2013 2014
TOTAL
Sales 3,651.00 7,034.00 5,694.00 7,092.00 2,343.00 25,814.00
Less: Sales Discount
- -

-
-

-

-
Sales Return
- -

-
-

-

-
Net Sales 3,651.00 7,034.00 5,694.00 7,092.00 2,343.00 25,814.00
Less: Cost of Goods
Sold 2,790.00 5,336.54 3,839.00

5,433.50

1,931.00 19,330.04
Gross Income 861.00 1,697.46 1,855.00 1,658.50 412.00 6,483.96
Less: Selling Expenses - - 30.00 - 80.00 110.00
Depreciation
Expenses 73.05 73.05 73.05

73.05

73.05 365.25
Accrued Advertising&
Registration Expense 805.51 805.51 805.51 805.51 805.51 4,027.55
Accrued Pre-
operating tools &
supplies 106.40 106.40 106.40 106.40 106.40 532.00
Operating Supplies
- 32.00 32.00

32.00

32.00 128.00
Net Income
(123.96) 680.50 808.04 641.54 (684.96) 1,321.16
Table 7.1 shows the computation for the monthly income statement of Frugies Smoothies Production from
November 2013 to March 2014.

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117

ADJUSTED MONTHLY INCOME STATEMENT
Table 7.2

2013 2014
TOTAL
Sales P7,302.00 P14,068.00 P11,388.00 P14,184.00 P4,686.00 P51,628.00
Less: Sales Discount - - - - - -
Net Sales
7,302.00 14,068.00
11,388.00 14,184.00 4,686.00 51,628.00
Less: Cost of Goods
Sold 5,580.00 10,673.08 7,678.00

10,867.00

3,862.00 38,660.08
Gross Income
1,722.00 3,394.92
3,710.00 3,317.00 824.00 12,967.92
Less: Selling
Expenses - -

30.00
-

80.00 110.00
Depreciation
Expenses 73.05 73.05 73.05

73.05

73.05 365.25
Accrued
Advertising&
Registration
Expense 805.51 805.51 805.51 805.51 805.51 4,027.55
Accrued Pre-
operating tools &
supplies 106.40 106.40 106.40 106.40 106.40 532.00
Operating Supplies - 32.00 32.00 32.00 32.00 128.00
Net Income
P 737.04 P 2,377.96 P2,663.04 P2,300.04 P(272.96) P7,805.12
Table 7.2 It shows the possible monthly Net Income that the company can generate in which it has an increase in
sales by 100% and cost of the good sold for the expansion of market place.
ORIGINAL-ADJUSTED NET PROFIT MARGIN
TABLE 7.3

ACTUAL NET
INCOME P (123.96) P 680.50 P 808.04 P 641.54 P (684.96)
ADJUSTED NET
INCOME 737.04 2,377.96 2,663.04 2,300.04 (272.96)
INCREASE
700% 249% 230% 259% 60%
Table 7.3 shows the increase of net income monthly.
Conclusion:
With the use of the strategy, the tables shown above shows that theres an increase in
sales by 300% monthly by getting the average increase net income.
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118

2
nd
THE PROMOTION
Frugies is not well-known to the students, staffs and faculty of WMSU. They have no
idea about the product and what are its benefits to them. The purpose of promotion in a
business is to raise awareness about a product in the market. It assists to business in generating
more profits by increasing sales. It is also have a strategy used by organizations to increase their
reputation and create a brand name. The researchers had decided to develop the promotion of
its products.

Strategy: BROCHURE DISTRIBUTION
One of the most common marketing strategies is the distribution of brochure. By doing
this, people away from the selling area will know that there is an existing mixed fruit and
vegetable smoothie in the market. If ever they are willing to buy they could contact the concern
sales person for the delivery of the product although it takes time for the operation. Otherwise,
this could vary the sales and also the selling expense.
The researchers compare the average sales and net profit in November and December
2013 (where the distribution of brochure has not yet happen) to the average sales and net
profit in February and January 2014 where the researchers had started doing this strategy.

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119

From November 2013 February 2014
Table 7.4

2013 2014
TOTAL
Sales
3,651.00 7,034.00
5,694.00 7,092.00 2,343.00
25,814.0
0
Less: Sales Discount
- -
- - -
-
Net Sales
3,651.00 7,034.00
5,694.00 7,092.00 2,343.00
25,814.0
0
Less: Cost of Goods
Sold 2,790.00 5,336.54 3,839.00

5,433.50

1,931.00
19,330.0
4
Gross Income 861.00 1,697.46 1,855.00 1,658.50 412.00 6,483.96
Less: Selling
Expenses - -
30.00 - 80.00
110.00
Depreciation
Expenses 73.05 73.05 73.05

73.05

73.05 365.25
Accrued
Advertising&
Registration Expense 805.51 805.51 805.51 805.51 805.51 4,027.55
Accrued Pre-
operating tools &
supplies 106.40 106.40 106.40 106.40 106.40 532.00
Operating Supplies
- 32.00 32.00

32.00

32.00 128.00
Net Income (123.96) 680.50 808.04 641.54 (684.96) 1,321.16
Table 7.4 shows the computation for the monthly income statement of Frugies Smoothies Production from
November 2013 to February 2014.
.The average sales in November and December 2013:
=
+
2

=
3,651.00 +7,034.00
2

Average Sales = P 5,342.50

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120

120

The average sales in January and February 2014:
=
+
2

=
5,694.00 +7,092.00
2

Average Sales = P 6,393.00
The average net income for November and December 2013:
=
+
2

=
123.96 + 680.50
2

Average net income = P 278.27
The average net income for January and February 2014:
=
+
2

=
808.04 + 641.54
2

Average net income=P 724.79
AVERAGE SALES AND NET INCOME
November 2013-December 2013 and January 2014-February 2014
TABLE 7.5
Average Sales Average Net Income
November- December P 5,342.50 P 278.27
January- February 6, 393.00 724.79
Increase in % 19.7 160.5
Table 7.5 shows the increases of sales and the net income.

Conclusion:
The average sales increase 19.7% and 160.5% for the net income when the distribution
of brochures is implemented starting on January 2014.
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121

3
rd
THE PRICE
A business can use a variety of pricing strategies when selling a product. The Price can
be set to maximize profitability for each unit sold or from the market overall. It can be used to
defend an existing market from new entrants, to increase market share within a market or to
enter a new market. Businesses may benefit from lowering or raising prices, depending on the
needs and behaviors of customers and clients in the particular market. Finding the right pricing
strategy is an important element in running a successful business.
Strategy: DECREASE IN SELLING PRICE
FRUGIES had decrease in price cost per unit from P26.00 down to P20.00 by changing
the packaging material, by using the most affordable packaging. The researchers decided to
change in economical package to decrease in price since the target market is students that
usually does not mind the packaging but the product itself.
The researchers compute the average sales in November and December to compare the
sales if it is increasing or decreasing. Since the price cost per unit for the month of November is
P26.00 and P20.00 for December.

AVERAGE SALES in November 2013 and December 2013
TABLE 7.6
November December
Sales P 3,651.00 P 7,034.00
No. of operating days 7 13
Average sales P 521.57 P 541.08
Table 7.6 shows the average sales in November and December.
Conclusion:
The average sales in December are greater than the average sales in November. Since
the decrease in price cost per unit is being implemented in the month of December and
increase in sales by 3.7%.
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122

Sensitivity Conclusion:
Based on the computation shown above, the 1
st
strategy which is the EXPANSION OF
THE MARKET PLACE has the greatest net income among the three marketing strategies. It
increases the sales 300% monthly.

105
123

123

124

124

ANNEX A
Below table 1 to 5.2 shows the computation of the projected population of Western
Mindanao State University relates to table 2.2, Page 21 under marketing aspect.

HISTORICAL DATA OF RETURNEE STUDENTS
Table 1.0
SCHOOL YEAR POPULATION
2008-2009 13
2009-2010 58
2010-2011 18
2011-2012 22

COMPUTATION FOR THE PROJECTION OF RETURNEE STUDENTS

Table 1.1

Arithmetic Straight Line
SY Y A Yi-1 Yc Y-Yc (Y-Yc)^2
2008-2009 13 -- -- -- 0 0
2009-2010 58 3.00 13.00 16.00 42 1,764.00
2010-2011 18 3.00 16.00 19.00 -1 1.00
2011-2012 22 3.00 19.00 22.00 0 -

1765
= 18.79

Table 1.1.1
Projected Values
SY A Yi-1 Yc
2012-2013 3.00 22.00 25
2013-2014 3.00 25.00 28
2014-2015 3.00 28.00 31
2015-2016 3.00 31.00 34
2016-2017 3.00 34.00 37
2017-2018 3.00 37.00 40

125

125

Table 1.2
Arithmetic Geometric Curve
SY Y
%increase
(decrease)
Yi+1 1+r Yc Y-Yc (Y-Yc)^2
2008-2009 13 -- 4 1.75 2 11 115
2009-2010 58 346.15 7 1.75 4 54 2,916
2010-2011 18 -68.97 13 1.75 7 11 112
2012-2012 22 22.22 -- -- 0 -- --

299.41

3,143
= 25

Table 1.2.1
PROJECTED POPULATION
SY Yi-1 (1+r) Yc
2012-2013 22.22 1.749 39
2013-2014 38.86 1.749 68
2014-2015 67.94 1.749 119
2015-2016 118.80 1.749 208
2016-2017 207.72 1.749 363
2017-2018 363.20 1.749 635

Table 1.3
Statistical Straight Line
SY Y x x^2 Xy b a Yc Y-Yc (Y-Yc)^2
2008-2009 13 1 1 13.00 6.20 34.60 28.40 -15.40 237.16
2009-2010 58 2 4 116.00 6.20 34.60 22.20 35.80 1,281.64
2010-2011 18 3 9 54.00 6.20 34.60 16.00 2.00 4.00
2011-2012 22 4 16 88.00 6.20 34.60 9.80 12.20 148.84

111 10 30 271.00

76.40

1,671.64
= 18.28

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126

Table 1.3.1
Projected Values
SY A B Yc
2012-2013 34.60 (6.20) 5 4
2013-2014 34.60 (6.20) 6 (3)
2014-2015 34.60 (6.20) 7 (9)
2015-2016 34.60 (6.20) 8 (15)
2016-2017 34.60 (6.20) 9 (21)
2017-2018 34.60 (6.20) 10 (27)

Table 1.4
Statistical Parabolic
SY Y x x^2 x^4 xy x^2y a b c Yc
Y-
Yc
(Y-Yc)^2
2008-2009 13 -3 9.00 81 -39.00 117 24.72 -0.65 -0.63 20.9952381 -8 63.9238
2009-2010 58 -1 1.00 1 -58.00 58 24.72 -0.65 -0.63 24.74285714 33 1,106.0376
2010-2011 18 1 1.00 1 18.00 18 24.72 -0.65 -0.63 23.44285714 -5 29.6247
2011-2012 22 3 9.00 81 66.00 198 24.72 -0.65 -0.63 17.0952381 5 24.0567

111

20.00 164 -13 391

1,223.6428
= 15.64

Table 1.4.1
Projected value

a B x C x^2 Yc
2013-2014 24.72 -0.65 6 -0.63095 36 (2)
2014-2015 24.72 -0.65 8 -0.63095 64 (21)
2015-2016 24.72 -0.65 10 -0.63095 100 (45)
2016-2017 24.72 -0.65 12 -0.63095 144 (74)
2017-2018 24.72 -0.65 14 -0.63095 196 (108)

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127

HISTORICAL DATA OF TRANSFEREE STUDENTS
Table 2.0
HISTORICAL DATA
SY Y
2008-2009 31
2009-2010 65
2010-2011 69
2011-2012 1
2012-2013 4

COMPUTATION FOR THE PROJECTION OF TRANSFEREE STUDENTS
Table 2.1
Arithmetic Geometric Curve
Historical Values
SY Y %increase
(decrease)
Yi+1 1+r Yc Y-Yc (Y-Yc)^2
2008-2009 31 -- 1 1.79 0 31 937
2009-2010 65 109.68 1 1.79 1 64 4,135
2010-2011 69 6.15 2 1.79 1 68 4,591
2011-2012 1 -98.55 4 1.79 2 (1) 2
2012-2013 4 300.00 -- -- 0 -- --
317.28 9,665
=44
Table 2.1.1
Projected Values
SY Yi-1 (1+r) Yc 31
2013-2014 4 1.793 7 65
2014-2015 7.17 1.793 13 69
2015-2016 12.86 1.793 23 1
2016-2017 23.06 1.793 41 4
2017-2018 41.36 1.793 74

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128

Table 2.2
Statistical Straight Line
SY Y x x^2 Xy b a Yc Y-Yc (Y-Yc)^2
2008-2009 31 1 1 31.00 (11.80) 69.40 57.60 -26.60 707.56
2009-2010 65 2 4 130.00 (11.80) 69.40 45.80 19.20 368.64
2010-2011 69 3 9 207.00 (11.80) 69.40 34.00 35.00 1,225.00
2011-2012 1 4 16 4.00 (11.80) 69.40 22.20 -21.20 449.44
2012-2013 4 5 25 20.00 (11.80) 69.40 10.40 -6.40 40.96
170.0 15 55 392.00 159.60 2,791.60

Table 2.2.1
Projected Values
SY A B Yc
2013-2014 69.40 (11.80) (1)
2014-2015 69.40 (11.80) (13)
2015-2016 69.40 (11.80) (25)
2016-2017 69.40 (11.80) (37)
2017-2018 69.40 (11.80) (49)

Table 2.3
Statistical Parabolic
SY Y x x^2 x^4 Xy x^2y a B c Yc Y-Yc (Y-Yc)^2
2008-2009 31 -4 16.00 256 -124.00 496 53.14 -590.00 -2.39 38 -7 56
2009-2010 65 -2 4.00 16 -130.00 260 53.14 -590.00 -2.39 55 10 93
2010-2011 69 0 0.00 0 0.00 0 53.14 -590.00 -2.39 53 16 251
2011-2012 1 2 4.00 16 2.00 4 53.14 -590.00 -2.39 32 -31 961
2012-2013 4 4 16.00 256 16.00 64 53.14 -590.00 -2.39 -9 13 162
170 40.00 544 -236 824 1,509
= 17.37

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129

Table 2.3.1
Projected value
a B x C x^2 Yc
2013-2014 53.14 -5.9 6 -239,286 36 (68)
2014-2015 53.14 -5.9 8 -239,286 64 (147)
2015-2016 53.14 -5.9 10 -239,286 100 (245)
2016-2017 53.14 -5.9 12 -239,286 144 (362)
2017-2018 53.14 -5.9 14 -239,286 196 (498)

HISTORICAL DATA OF FOURTH YEAR STUDENTS

Table 3.0

School Year Population
2008-2009 169.00
2009-2010 196.00
2010-2011 219.00
2011-2012 218.00
2012-2013 251.00

COMPUTATION FOR THE PROJECTION OF FOURTH YEAR STUDENTS
Table 3.1
Arithmethic Straight Line: YC= a+Yi-1
School Year Population A Yi-1 Yc Y-Yc (Y-Yc)
2008-2009 169.00 0.00 0.00 0.00
2009-2010 196.00 20.50 169.00 189.50 6.50 42.25
2010-2011 219.00 20.50 189.50 210.00 9.00 81.00
2011-2012 218.00 20.50 210.00 230.50 -12.50 156.25
2012-2013 251.00 20.50 230.50 251.00 0.00 0.00
Total 279.50
=7.48

130

130

Table 3.1.1
Projected value
School Year A Yi-1 Yc
2013-2014 196.00 20.50 217
2014-2015 196.00 216.50 413
2015-2016 196.00 412.50 609
2016-2017 196.00 608.50 805
2017-2018 196.00 804.50 1,001

Table 3.2
Arithmetic Geometric Curve: Yc= Yi+1/1+r
School Year population %increase Yi+1 1+r Yc Y-Yc (Y-Yc)
2008-2009 169.00 - 16,141.68 1.000 15,763.36 -15,594.36 243,184,044.32
2009-2010 196.00 16.0 16,529.08 1.000 16,141.68 -15,945.68 254,264,700.70
2010-2011 219.00 11.7 16,925.78 1.000 16,529.08 -16,310.08 266,018,775.87
2011-2012 218.00 -0.5 251.00 1.000 245.12 -27.12 735.34
2012-2013 251.00 15.1
Total 42.4 Total 763,468,256.22
=10.6

Table 3.2.1
Projected value
School Year Yi+1 1+r Yc
2013-2014 251.00 1.000 251
2014-2015 251.00 1.000 251
2015-2016 251.00 1.000 251
2016-2017 251.00 1.000 251
2017-2018 251.00 1.000 251

131

131

Table 3.3
Statistical Straight Line: Yc= a+bx
School Year population X X XY a B Yc Y-Yc (Y-Yc)
2008-2009 169.00 1 1 169 154.80 18.60 173.40 -4.40 19.36
2009-2010 196.00 2 4 392 154.80 18.60 192.00 4.00 16.00
2010-2011 219.00 3 9 657 154.80 18.60 210.60 8.40 70.56
2011-2012 218.00 4 16 872 154.80 18.60 229.20 -11.20 125.44
2012-2013 251.00 5 25 1,255 154.80 18.60 247.80 3.20 10.24
Total 1,053 15 55 3,345

Total 241.60
=6.93

Table 3.3.1
Projected value
School Year A b X Yc
2013-2014 154.80 18.6 6 266
2014-2015 154.80 18.6 7 285
2015-2016 154.80 18.6 8 304
2016-2017 154.80 18.6 9 322
2017-2018 154.80 18.6 10 341

Table 3.4
Statistical Parabolic: Yc= a+bx+cx
School Year population X X X XY XY a b c Yc Y-Yc (Y-Yc)
2008-2009 169.00 -4 16 256 -676 2,704 212.31 9.30 -0.21 172 -3 7
2009-2010 196.00 -2 4 16 -392 784 212.31 9.30 -0.21 193 3 10
2010-2011 219.00 0 0 0 0 0 212.31 9.30 -0.21 212 7 45
2011-2012 218.00 2 4 16 436 872 212.31 9.30 -0.21 230 -12 145
2012-2013 251.00 4 16 256 1,004 4,016 212.31
Total 1,053 40 544 372 8,376 207
=333.49

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Table 3.4.1
Projected value
2013-2014 54.25 4,047.75 4,102
2014-2015 54.25 4,102.00 4,156
2015-2016 54.25 4,156.25 4,211
2016-2017 54.25 4,210.50 4,265
2017-2018 54.25 4,264.75 4,319

Computation for the projection of first year college students
Table 4.1
School Year population %increase Yi+1 1+r Yc Y-Yc (Y-Yc)
2008-2009 3,885 - 16,141.68 1.000 15,763.36 -11,878.36 141,095,421.44
2009-2010 4,241 9.2 16,529.08 1.000 16,141.68 -11,900.68 141,626,177.02
2010-2011 4,335 2.2 16,925.78 1.000 16,529.08 -12,194.08 148,695,636.58
2011-2012 4,638 7.0 4,102.00 1.000 4,005.86 632.14 399,601.77
2012-2013 4,102 -11.6
Total 6.8 Total 431,816,836.82
=9293.19

Table 4.1.1
Projected value
2013-2014 4,102.00 1.000 4,102
2014-2015 4,102.00 1.000 4,102
2015-2016 4,102.00 1.000 4,102
2016-2017 4,102.00 1.000 4,102
2017-2018 4,102.00 1.000 4,102

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Table 4.2
School Year population X X XY a b Yc Y-Yc (Y-Yc)
2008-2009 3,885 1 1 3,885 3,990.90 83.10 4,074.00 -189.00 35,721.00
2009-2010 4,241 2 4 8,482 3,990.90 83.10 4,157.10 83.90 7,039.21
2010-2011 4,335 3 9 13,005 3,990.90 83.10 4,240.20 94.80 8,987.04
2011-2012 4,638 4 16 18,552 3,990.90 83.10 4,323.30 314.70 99,036.09
2012-2013 4,102 5 25 20,510 3,990.90 83.10 4,406.40 -304.40 92,659.36
Total 21,201 15 55 64,434

Total 243,442.70
=220.65

Table 4.2.1
Projected value
School Year A b X Yc
2013-2014 3,990.90 83.1 6 4,490
2014-2015 3,990.90 83.1 7 4,573
2015-2016 3,990.90 83.1 8 4,656
2016-2017 3,990.90 83.1 9 4,739
2017-2018 3,990.90 83.1 10 4,822

Table 4.3
School Year population X X X XY XY a b C Yc Y-Yc (Y-Yc)
2008-2009 3,885 4 16 256 15,540 62,160 4,460.20 41.55 -28.13 3,849 36 1,296
2009-2010 4,241 -2 4 16 -8,482 16,964 4,460.20 41.55 -28.13 4,270 -29 818
2010-2011 4,335 0 0 0 0 0 4,460.20 41.55 -28.13 4,465 -130 16,952
2011-2012 4,638 2 4 16 9,276 18,552 4,460.20 41.55 -28.13 4,436 202 40,885
2012-2013 4,102 4 16 256 16,408 65,632 4,460.20

Total 21,201

40 544 32,742 163,308

59,951
=109.5

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134

Table 4.3.1
Projected value
School Year a B X c X Yc
2013-2014 4,465 42 6 -28.13 36 3,702
2014-2015 4,465 42 8 -28.13 64 2,998
2015-2016 4,465 42 10 -28.13 100 2,068
2016-2017 4,465 42 12 -28.13 144 914
2017-2018 4,465 42 14 -28.13 196 (466)

PROJECT ED POPULATION FOR SCHOOL YEAR 2013-2014
Table 5.1

School Year Projected Population
2013-2014 19,171
2014-2015 18,247
2015-2016 18,538
2016-2017 14,490
2017-2018 15,075
2018-2019 19,411

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COMPUTATION FOR THE ACTUAL PROJECTED POPULATION FOR THE SCHOOL YEAR 2016-2017
TO 2017-2018
Table 5.2

2016-2017 2017-2018

projected population of wmsu 18,829 19,120
Add projected 4th high school 322 663
Less projected first year college 4,739 4,822
Add Transferee 41 74
Add Returnee 37 40

Total 14,490 15,075

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136

Historical data of supply within the vicinity of Western Mindanao State University in Litres

Table 5.3 Shows the computation of the historical data of supply in WMSU which relate to table
2.5 under marketing aspect
Canteen/Owner's Name
1990-
2009
2009-
2010
2010-
2011
2011-
2012
2012-
2013
2013-
2014
Growth
Rate
(%)
Janny Bee - 0.065 0.098 0.147 0.221 0.331 0.50
Shanes Fastfood 0.295 0.310 0.326 0.342 0.359 0.377 0.05
Maimona Majid 0.307 0.438 0.627 0.897 1.282 1.833 0.43
Magsayo Store 0.004 0.011 0.029 0.079 0.210 0.560 1.67
Oliver - - - - - 5.490 -
Pilang Cervantes

2.256 2.707 3.248 3.898 0.20
Flavours - - - - - 2.976 -
Emanual Canteen ( Jane D.
Baroquillo)
1.863 2.049 2.254 2.479 2.727 3.000 0.10
WMSU Coop Canteen #8
(April Delos Reyes)
- - - - 3.206 5.354 0.67
Antonieta Dumen - - - 0.484 0.581 0.697 0.20
Social Work Canteen (Ester
Carpizo)
1.355 1.693 2.117 0.25
Islamic Canteen (Arnalyn
Ibrahim)
- - - 1.342 1.570 1.837 0.17
Forestry Canteen (Ginton
Michael O. Locson)
0.017 0.035 0.069 0.138 0.277 0.553 1.00
Merciana 13.833 13.833 13.833 13.833 13.833 13.833 -
Mercedes Domocol 1.194 1.433 1.719 2.063 2.476 2.971 0.20
WMSU Coop #3 0.233 0.256 0.282 0.310 0.341 0.375 0.10
TOTAL 17.746 18.431 21.493 26.175 32.023 46.201

GRAND TOTAL
4,205.862 4,368.083 5,093.855 6,203.456 7,589.445 10,949.534

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137

Computation for the Projection of Supply

Below are table 6.1 to table 6.4.1 shows the computation for projected supply which relate to
table 2.6 under marketing aspect.
Table 6.1
Arithmethic Straight Line: YC= a+Yi-1
School Year SUPPLY a Yi-1 Yc Y-Yc (Y-Yc)
2008-2009 4,206 0.00 0.00 0.00
2009-2010 4,368 845.90 4,205.86 5,051.76 -683.68 467,414.92
2010-2011 5,094 845.90 5,051.76 5,897.66 -803.80 646,086.40
2011-2012 6,203 845.90 5,897.66 6,743.55 -540.09 291,699.91
2012-2013 7,589 845.90 6,743.55 7,589.45 0.00 0.00
Total 1,405,201.23
=530.13

Table 6.1.1
Projected Value
2013-2014 845.90 6,743.55 7,589
2014-2015 845.90 7,589.45 8,435
2015-2016 845.90 8,435.35 9,281
2016-2017 845.90 9,281.25 10,127
2017-2018 845.90 10,127.14 35,433

138

138

Table 6.2
School Year SUPPLY %increase Yi+1 1+r Yc Y-Yc (Y-Yc)
2008-2009 4,206 - 4,843.43 1.1615 4,169.97 35.89 1,287.74
2009-2010 4,368 3.9 5,625.64 1.1615 4,843.43 -475.35 225,953.74
2010-2011 5,094 16.6 6,534.18 1.1615 5,625.64 -531.78 282,789.13
2011-2012 6,203 21.8 7,589.45 1.1615 6,534.18 -330.72 109,375.68
2012-2013 7,589 22.3
Total 64.6 Total 619,406.29
=351.9

Table 6.2.1
Projected Value
2013-2014 7,589.45 1.162 8,815
2014-2015 8,815.15 1.162 10,239
2015-2016 10,238.79 1.162 11,892
2016-2017 11,892.36 1.162 13,813
2017-2018 13,812.97 1.162 44,759

Table 6.3
School Year SUPPLY X X XY A b Yc Y-Yc (Y-Yc)
2008-2009 4,206 1 1 4,206 2,911.37 860.26 3,771.63 434.23 188,555.69
2009-2010 4,368 2 4 8,736 2,911.37 860.26 4,631.89 -263.81 69,593.61
2010-2011 5,094 3 9 15,282 2,911.37 860.26 5,492.14 -398.28 158,628.55
2011-2012 6,203 4 16 24,814 2,911.37 860.26 6,352.40 -148.94 22,182.53
2012-2013 7,589 5 25 37,947 2,911.37 860.26 7,212.65 376.80 141,975.23
Total 27,461 15 55 90,985 Total 580,935.60
=340.86

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139

Table 6.3.1
Projected Value
School Year A B X Yc
2013-2014 2,911.37 860.256 6 8,072.91
2014-2015 2,911.37 860.256 7 8,933.17
2015-2016 2,911.37 860.256 8 9,793.42
2016-2017 2,911.37 860.256 9 10,653.68
2017-2018 2,911.37 860.256 10 11,513.93
2018-2019 2,911.37 860.256 11 12,374.186

Table 6.4
School Year SUPPLY X X X XY XY a b C Yc Y-Yc (Y-Yc)
2008-2009 4,206 -4 16 256 -16,823 67,294 5,087.66 430.13 50.56 4,176 30 885
2009-2010 4,368 -2 4 16 -8,736 17,472 5,087.66 430.13 50.56 4,430 -62 3,790
2010-2011 5,094 0 0 0 0 0 5,087.66 430.13 50.56 5,088 6 38
2011-2012 6,203 2 4 16 12,407 24,814 5,087.66 430.13 50.56 6,150 53 2,841
2012-2013 7,589 4 16 256 30,358 121,431 5,087.66
Total 27,461 40 544 17,205 231,011 7,555
=38.86

Table 6.4.1
Projected Value
School Year A b X c X Yc
2013-2014 5,088 430 6 50.56 36 9,489
2014-2015 5,088 430 8 50.56 64 11,765
2015-2016 5,088 430 10 50.56 100 14,445
2016-2017 5,088 430 12 50.56 144 17,530
2017-2018 5,088 430 14 50.56 196 21,019

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140

ANNEX B
COMPUTATION 1: Shows the computation of full capacity which relate to table 3.1, Page 50
under technical aspect
FULL CAPACITY COMPUTATION

365 Days
less: 61 days (2 months)-summer break
less: 9 holidays from (June 2013 - February 2014)
less: 16 days Christmas Break (Dec.13-Jan.5)
less: 42 Sundays from (June 2013 - March 2014)
1 School Year = 237 days

(90cups/day) X (237 days)
= 21,330 cups per year per juicer

Per cup is equivalent to 250 mL:
21,330 cups per year x 250 mL
5,332,500 ml per year
1,000ml

FULL CAPACITY=5,332.5L per year or 21,330 cups

141

141

ANNEX C

Table 1 Shows the Equipment use in operation which relate to table 3.2, Page 50 under
Technical aspect
Name of Supplies &
Materials
Specification Quantity
Supplier
Price

Imarflex Juice Extractor
IM-3180

Power source 220V/60Hz,
Power consumption-
250W, Capacity- 50g,
Weight- 5.3kg

1 units

Sulit.com

1,600

3D Blender
Two speeds and
a pulse setting
Easy grip rotary
dial
High quality 2L
glass jar (1.5L
effective liquid
capacity)
Powerful 250 W
motor

1 unit Sulit.com 2, 205.00

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142

Table 2 Shows the Tools and material use in operation which relate to table 3.3, Page 51 under
technical aspect

Name of Supplies &
Materials
Specification Quantity
Supplier
Price
Slushy Cups w/ Straw
Thicker grade clear plastic
slush cups, 8oz or 250ml
slush cups

Cups 50
pcs. per 1
pack,
Lid 100pcs
& straw
100pcs

Southway
square,
Gateway,
Shop O
rama

Cup = 58.50
Lid = 65
Straw = 18

Total = 141.50

Ice Chest
48 qrt. 1 unit

El Bonito

1,100.00
Chopping board
35cm x 24cm
Non-toxic, non-stick, stain
resistant polyethylene
chopping board
1 unit El Bonito 55.00
Knife
Serrated Paring Knife
Blade length: 10 cm
Handle Material: RED
POLYPROLYLENE
Length: 206 mm
Width: 22 mm
Height:15 mm

143

143

Basin

Material: Plastic
Basin degree transparent: not
transparent
Press: circle shape choice

Table 3 Shows the Raw materials prices and supplier which relate to table 3.4 to table 3.7, Page
54 to Page 55 under technical aspect

Raw material Specification supplier Unit Price

Apple

Fuji
Rolands Fruitsatand (Magay market)
Teresas Fruitstand (Sta.cruz market)
Columbres (Guiwan market)

157g

15.00

Orange

Ponkan

150g

10.00

Refined Sugar

Sweet pack
OK department store

1kg

46

Gelatin powder

Crystal pandan
OK department store

1 pack (24g)

10

Milk
Alaska
evaporada
OK department store

370ml

24.50

Malunggay
leaves

Fresh green
leaves

Per 10g

5

Carrot

Fresh carrot

Per 1000g
(1kl)

70

Distilled water

Distilled

Ellys Baliwasan refilling station

6L

10

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144

ANNEX D
TABLE 4 Shows the Marketing program Breakdown Expenses for Smoothies relates to table
5.2 under financial aspect
PRE-OPERATING EXPENSES
Cost (Php)
Raw Materials
CAO
Carrot P 16.00
Apple 187.50
Orange 210.00
Pia Banana
Pineapple 206.25
Banana 80.00
Verdi
Apple 187.50
Orange 210.00
Malunggay Gelatin 105.00
Evaporated Milk 213.45
Sugar 107.35
Ice 60.00
Packaging Expense 286.50
Electric Installation 1,810.00
Certificate of Business Registration 215.00
Tarpaulin 133.00
Total P 4,027.55

145

145

ANNEX E
SWOT Analysis
In determining the business strategies, researchers have implemented the use of a
SWOT analysis to develop a list of the factors most crucial to the success of Frugies. These
factors are broken down into External (Opportunities, Threats) their relevance to Frugies
success and projected onto a list of manageable key factors from which business strategies
were derived.
STRENGTHS
1. First of its kind
There is no other smoothie store in the area that sells mixed fruit and vegetable
smoothies, so the product will be new to the market, attracting a new healthy market of the
on-the-go people.
2. Affordable price
Employees as well as students and elementary pupils can come up with the
money for buying the smoothies.
3. Freshness of product
Since the company is producing its product in a made to order basis, the
customers could take in newly extracted and blended fruit-vegetable smoothie.
4. Word of mouth
One of the most credible forms of advertising because people who don't stand to
gain personally by promoting something put their reputations on the line every time they
make a reference. Thus, satisfied customers would tell the people how they like the
smoothies so by doing that it could increase the company sales. In fact, the company makes
its products based on its customers wants.
5. Location
The companys stall is located at Western Mindanao State University, at the
entrance of the College of Engineering and Technology where there is a chance for students
and employees to get a quick and easy but nutritious smoothie.

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146

WEAKNESSES
1. Perishable commodity
Will not have many outlets around to get people to know the business and product.
There is only one stall in the area, by limiting the number of stall it will also limit the number
of customers the company can gain.
2. Going into an already existing market
There is already a number of outlet that offer similar products. the company just have to
hope that by serving healthy products with fresh ingredients, its business will stand out to
people rather than other alternatives.

OPPORTUNITIES
1. Bringing Healthy Drinks to the University
Compare with all soda drinks, fresh fruit and vegetable mixed smoothie will be healthier
for people especially students. The 100% fresh fruit and vegetable smoothie are a smart
addition to any well-balanced diet, providing vitamins and minerals like potassium, vitamin C
and folic acid. The product is also a convenient way for adults and children to help reach the
recommended number of daily serving of fruits and vegetables.

2. To move with the current social and lifestyle changes
In terms of lifestyle, students will change their drinking routine of beverages. Instead of
soda drinks they will able to purchase the product because of its taste and the health
benefits of fruit and vegetable smoothies

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147

THREATS
1. Misinformation about the products on health effects
Misinformation about the product questions the safety of mixed fruit and vegetable
smoothie if it will not ruin their digestive system that will result to loose bowel movement
(LBM).
Action Plan:
To ensure that the companys product is safe to the health of the consumer, it
must have a proof that will certify the safety in taking in the smoothies like DOST-FNRI
certificate or other food laboratory research.
2. Weather changes
The most relevant threat to the success of Frugies is the bad weather cycle when its
rainy season, which will affect the sales. Sales of smoothies peaks in summer months and
drops substantially during rainy months.
3. Power interruption
One of the constraints of a Frugies is a power interruption. The product purchases
through a made to order basis but it will be a loss if there is no electricity.
4. Unstable price of raw materials
The price of raw materials is based on seasonality. It is inconvenient if the price
increases.

Conclusion:
Using a basic SWOT analysis, the major internal and external factors were taken into
consideration and applied to create strategic plans that aim to take advantage of opportunities
and strengths, while preventing threats and weaknesses.

148

148

Annex F

These pictures shows the documentation of actual performance of the business

149

149

1. How many times do you operate in a week?
Everyday
Three times a week
Six times a week
Other (please specify) ____________________

2. Which of the following beverages do you sell?
Water
Carbonated drinks
Juice
Fruit shake
Coffee
Others (please specify) ____________________
3. For water dispenser, how many days does a five (5) gallon
of water last? __________
4. For bottled water,how many bottles were you able to sell
per day?
Small _____
Medium ____
Big ____
(Please specify how many mL each)
5. For carbonated drinks, how many bottles were you able to
sell per day?
8oz________
12oz______
1L_________

6. For juice (plastic cups), how many cups were you able to
sell per day?
Small_________
Medium______
Large________
7. For bottled juice, how many bottles were you able to sell
per day?
Small_________
Medium_______
Large_________

_______Juice
_______Fruit shake
_______Coffee

OBJECTIVE:

To determine the supply of beverages in Western Mindanao State University and to determine the Growth Rate.

Name of business: __________________________ Date: _____________
Owners Name: _____________________________

8. For fruit shake, how many cups were you able to sell per day?
Small _____
Medium_____
Large______
9. For coffee, how many cups were you able to sell per day?
Small_______
Medium______
Large_____
Questions to find the growth rate:
1. When was your business
started?_________________________
2. How many cases/bottles/cups were you able to sell per
day?
_______Water
_______Carbonated drinks
3. Is there an increase of your supply for beverages per
day?
Yes
No
If yes, please specify how many cases/bottles_________
4. Estimate how many percent increase every year
________

Signature:________________________________

College of Engineering and Technology
SURVEY SHEET FOR THE PROMOTION OF FRUIT-VEGETABLE SMOOTHIES

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