Executive Summary

Business Name

The proponents have chosen to name the business as Red Strings. Red string

means destiny. The invisible strings were tied on our hands connected to someone and in

the future we will find them. We and our business are meant for each other, we believe

that its destiny who grouped us accordingly to the string tied on our hands. The string of

our bonds might get tangled or stretch but it can never be broken. May the time passed

by, but the sweetness of our bonds will remain as our anchor.

We believed that it is not only us (ourselves) the main reason why we are con-

verged but also our ideas, abilities, skills, it has many to do once being combined. That

red strings is not outside us, there are also inside ourselves.

Name of the Product

The proponents have decided to create a product which will be named as

Kangkawayan Pizza. The product name is Kangkawayan Pizza because the pizza is a

combination of kangkong leaves and bamboo shoots as its toppings that will make it

more delicious and nutritious. We decided to name our product as a combined name of

the two main ingredients so that it will be distinct from the other pizza products.
Logo

The logo emphasized that the main ingredients of the product are Water Spinach

(Kangkong) and Bamboo Shoot (labong) which means not just delicious but most im-

portantly good for our health. It will be attractive to the customers because most of them

are health conscious. They are looking for a food that will not just full their stomach but

importantly will nourish their health. It is really good for the health of the customers, be-
cause this ingredients are good for weight management, good for the heart, controls cho-

lesterol, fights cancer, strengthen your immune system. It is also good for diabetic person

and it contains anti-oxidants.

Tagline

Ang Pizzang naKANGKAbusog na naKANGKAlusog.

The proponents came up with this tagline because every single process of produc-

tion we make sure that it wont harm their health but rather will be good for their health

and fills the stomach of the customers. Perfect in the sense that the customer will have its

satisfaction in every bite and have all the safety measures they want to expect from a cer-

tainly delicious product.

Location

The proponents chose Rioferio Road, Arellano Street Dagupan City as the location

of the business. It is one of the street nearly Nepo Mall. It was then observed by the pro-

ponents that this location is accessible to the target market and potential customers. Good

location will tell the proponents how well the business will perform and will also determine

the businesss success in the future.

Type of Business Organization

The business will be in the form of sole proprietorship where one person vests

ownership. Sole Proprietorship is the most common and simplest form of business or-
ganization. It is not subject to much government regulation, and is relatively simple to

manage and control.

Long-range Objectives

To have another variety of flavors of some other pizza versions for 1 to 2 years.

Expansion not only in Dagupan City, but also to other parts of Pangasinan

(Calasiao, Mangaldan, Binmaley and Lingayen), and also to the whole Ilocos

Region)

Increase 50% in production of Kangkawayan Pizza in Pangasinan in 3 to 5 years.

Significant Features

The Kangkawayan Pizza is classifying to be in the food industry, this is concerned

with processing, preparing, preserving, distributing and serving foods. It will be form of

sole proprietorship.

A unique food recipe will be distributed and provided by the proponents to the

students. Kangkawayan Pizza is a new style of pizza, using of Kangkong Leaves and its

stem and Bamboo Shoot on its toppings, this product is unique in way that the dough of the

pizza is a filled with Kangkong leaves, and kangkong Stem & Bamboo Shoot will be the

toppings of the pizza.

 Chapter 1

INTRODUCTION

One of the popular foods in the world is pizza. Many have tried innovating its

texture especially the taste and the varieties of its toppings. Pizza demand in the Philip-

pines is continuously growing. The 2015 statistic shows that the market share of pizza

industry in Asia comprises of 8.23%. (Statistica.com 2015)

Pizza comes from the Italian word pizzaire which means to pock or to pluck. It

was invented in Naples, Italy which is made of tomatoes, mozzarella cheese and basil.

The first name of Pizza was Margherita Pizza, after the Queen of Italy, Margherita Teresa

Giovanni. (Katia Amore, 2011)

In the latter half of the 19th century, pizza migrated to America with the Italians.

By the turn of the century, the Italian immigrants had begun to open their own bakeries

and were selling groceries as well as pizza. Gennaro Lombardi opened the first true U.S.

pizzeria in 1905 at 53 1/3 Spring Street in New York City, a part of town known as Lit-

tle Italy. Following World War II, veterans returning from the Italian Campaign after

being introduced to Italy's native cuisine proved a ready market for pizza in particular.

Since then pizza consumption has exploded in the U.S. pizza chains such as Domino's,

Pizza Hut, and Papa John's, pizzas from take and bake pizzerias and chilled and frozen

from supermarkets, make pizza readily available nationwide. It is so ubiquitous; thirteen

percent (13) of the U.S. Population consumes pizza on any given day. (FSRG, 2014)
 In the Philippines, the first pizzeria was located at the Greenhills Shopping Center

in Metro Manila since 1971. It was introduced by Mrs. CresildaTuares. She established

the first Greenwich Pizza chain in 1971. The small over-the-counter shop was in metro

Manila inside Greenhills Shopping Center, otherwise known as Greenhills Commercial

Center, a large mall with indoor and outdoor shops. Between 1971 and 1994, the

Greewich Pizza brand expanded to 50 branches. (Ordinario, Cai U, 2006)

In Pangasinan, there are almost hundreds of pizza chains that were established.

This includes the most commonly known pizza chains such as Greenwich, Pizza Hut,

Shakeys and many more. On the other hand, because of its demand to the Pangasinense,

several Pangasinense Entrepreneurs have established their own. Pizza is somehow expen-

sive, so they set a price of their pizza economically for the Pangasinense. Cha-chas

Pizza is one of the examples of a small-time pizza chain. In Other places there also has

been established pizza store like Purple Plate Pizza in Alaminos City, and also Giorgios

Pizzeria located at Arellano St. Dagupan City. Pangasinense really loves pizza during si-

esta time or during break times especially in work and school.

Kangkong is often referred to as a poor mans cabbage. It is an edible water plant

that commonly found in the backyards. It is actually called water spinach or ipomoea

agautica. It is popular in South-East Asia most especially here in the Philippines. Kang-

kong or water spinach is high in carotenoids, including lutein and pro-vitamin A, calcium

and iron. (Juvy S. Liwliw)

Bamboo shoots or commonly known as Labong are edible shoots that is used in

numerous Asian dishes and broth such as ginataang labong, dinengdeng and atchara.
Bamboo shoots are high in dietary fiber that is good for digestion, lose-weight friendly, it

helps in healing ulcers, have been known to be effective against respiratory disorders.

Recently, it was just discovered according to the research studies, that phytosterols and

phytonutrients found in bamboo shoots are ideal for dissolving harmful LCD cholesterol in

the body. (M.A. Caromano)

People often buy pizza because of its taste and its different toppings such as ham,

sausages, cheese and many more. Kangkong and labong are often ignored in the market

now because they say its cheap, but cheap doesnt mean to have bad quality. Besides, it is

very nutritious and very helpful in many ways. Pizza is a well-known favorite food of

Filipinos. Innovating and creating a pizza out of these vegetables will lessen the cost of

putting expensive ingredients of it. Creating and introducing a veggie-type pizza like

KangKawayan will help benefit lot of people since the ingredients of it are not too costly.

Kangkawayan Pizza is another innovation of Pizza wherein you dont have to

worry about your diet. Its not the common pizza you always see around. The difference is

that the ingredients are often found in our backyards that are not so expensive. This Pizza is

different from other pizza in that its main ingredients are Bamboo shoot and Kang-

kong/water spinach. Though we can describe this as a kind of cheap vegetables, its nutrient

contents are very rich distinctly from other known vegetables. As you eat this pizza, your

health is primarily benefited. We can merely think of thing initially when we once see it,

but it is better to look for its hidden contents. Thats why we chose to consider these so

called cheap because that cheap term is ironic from the meaning. It means cheap out-

side but rich inside.

 Chapter 2

MARKET FEASIBILITY

Product Description

Kangkawayan Pizza is a vegetarian meal; it is a perfect food for health con-

scious people as well as the children. It is unique from the other pizzas because its dough

is mixed with chopped kangkong leaves and its topping is made of bamboo shoots or la-

bong and the chopped stems of kangkong. Kangkong has a high nutritional value that

contains low calory level, protein, calcium, iron, vitamin A, and vitamin C that can help

boost the health of the body. According to Nirmala Chongtham, Madho Singh Bhisht and

Sheena Haorongbam from Punjab University in Chandigarh, India, bamboo shoots are

rich in various nutrients. It helps in losing weight and strengthens the immune system.

The pizza has also ingredients, tomato sauce that is rich in lycopene that helps fight can-

cer, ham that has high level of protein, and cheese that is rich in calcium which help in

bone health.
SWOT Analysis & SWOT Matrix of the Product / Market

Strengths:

1. Unique flavor of pizza

2. Good image among children

3. Not too expensive as compared to other pizza chains

4. Excellent service

5. Healthy benefits of it

Weakness:

1. Unknown in the market

2. Lack of modern marketing approaches

3. Few outlets

4. High fats

5. Minimal staff turnover

Opportunities:

1. Can be introduced to fast food chains

2. Lot of untapped rural market and rising income levels

3. Could lead to economic development

4. It can be ventured to other locations

Threats:

1. Strong competitors

2. Constancy of features of pizza

3. Concern among people for fast food items on health

4. Customers volatility of satisfaction

Target Market

The proponents will give attention to provide the needs of different kinds of stu-

dents of Colegio de Dagupan and also others who are looking for delicious, affordable

and new style of pizza to satisfy their hunger.

Table 2.1 Distribution of Students per school department of Colegio de Dagupan
Male Female Total
SBA 211 498 709
SASTE 108 420 528
SITE 508 287 795
SOE 560 155 715
SIHM 217 297 514
SHSC 69 85 154
TOTAL 1673 1742 3415

Demand Analysis

To determine the demand of the product, the proponents conducted a survey with

360 respondents.

Table 2.2 Profile target Customers (Age)

N Minimum Maximum Mean
360 17 25 21

The table shows that the minimum age of the respondents is 17, and maximum of

25. Therefore, the mean age of the respondents is 21.

Table 2.3 Profle of Target Customers (Sex)

Sex Frequency Percentage
Male 130 36.1
Female 230 63.9
Total 360 100.0

The table above shows the demographic profile of the respondents surveyed. They

are classified as to gender. The percentage for male is 36.1 and 63.9 for female.
Table 2.4 Profile of the Respondents as to allowance per week
Daily Allowance Frequency Percentage
1500 Above 63 17.5
1000 1500 76 21.1
500 1000 120 33.3
500 Below 101 28.1
Total 360 100.0

The table shows the range of allowance per week of the respondents. Majority of

the respondents has a weekly allowance of Php500 to Php 1,000 or 33.1 % of the whole.

Table 2.5 Consumption

Response Frequency Percentage
Yes 348 96.7
No 12 3.3
Total 360 100.0

Table 2.5 shows if the respondents are eating or buying pizza. Majority of the re-

spondents are eating pizza which has 96.7% of the total.

Table 2.6 Buying Behavior of the Students

Frequency Percentage
Everyday 28 7.8
Twice a Week 88 24.4
Weekly 112 31.1
Others 132 36.7
Total 360 100.0

The table shows how the respondents buy or eat pizza. It shows that the respond-

ents are eating pizza weekly which is 31.1 % of the whole while 36.7 % of the total re-

sponded the Others which means maybe monthly, twice a month or never.
Table 2.7 Flavor of Pizza the Respondents Commonly Buy
Flavor Frequency Percentage
Ham and Cheese 125 34.7
Hawaiian Overload 152 42.2
Pepperoni 50 13.9
Beef Mushroom 31 8.6
Others 2 .6
Total 360 100.0

Table 2.7 shows the flavor of pizza the respondents commonly buy. The demand

for Hawaiian Overload got the highest percentage which is 42.2% of the whole.

Table 2.8 Spending Behavior of the Respondents

Price Frequency Percentage
10 15 159 44.2
15 20 74 20.6
20 Above 127 35.3
Total 360 100.0

The table above shows how the respondents spend for the pizza they commonly

buy. Most of the respondents, 44.2% of the total, buy pizza with the price of Php10 to

Php15.00 and 35.3 % of the respondents buy pizza with the price of Php20 above.

Table 2.9 Common place where the respondents buy pizza

Place Frequency Percentage
Sidewalk 73 20.3
Food Cart 79 21.9
Stalls 66 18.3
Mall 92 25.6
Restaurant 44 12.2
Others 6 1.7
Total 360 100.0
 Table 2.9 shows that 25.6% of the respondents buy pizza at the Mall. Food Cart

and Sidewalk follows with 21.9% and 20.3% respectively.

Table 2.10 Consumption of Kangkong

Response Frequency Percentage
Yes 322 89.4
No 38 10.6
Total 360 100.0

The table above shows if the respondents are eating kangkong or water spinach.

Majority of the respondents are eating kangkong which is 89.4% of the whole.

Table 2.11 Consumption of Bamboo Shooot

Response Frequency Percentage
Yes 334 92.8
No 26 7.2
Total 360 100.0

Table 2.11 answers the question if the respondents are eating bamboo shoots.

92.8% or majority of the respondents are eating bamboo shoots.

Table 2.12 Willingness of the respondents in buying Kangkawayan Pizza

Response Frequency Percentage
Yes 340 94.4
No 20 5.6
Total 360 100.0

The table shows the willingness of the respondents in buying kangkawayan pizza.

It shows that 94.4% of the respondents are willing to buy the product kangkawayan pizza.
Table 2.13 Willingness of the Respondents buy Kangkawayan Pizza at specific price
Price Frequency Percentage
10 212 58.9
15 80 22.2
20 47 13.1
20 Above 21 5.8
Total 360 100.0

Table 2.11 shows that 58.9% of the respondents are willing to buy pizza with the

price of Php10.00 while 22.2% of the respondents are willing to price kangkawayan pizza

at a price of Php15.00.

Table 2.14 Behavior of the respondents in buying Kangkawayan Pizza

Frequency Percentage
Everyday 92 25.6
twice a week 122 33.9
once a week 146 40.6
Total 360 100.0

Table 2.14 shows that 40.6% of the respondents are going to buy Kangkawayan

Pizza every day, 33.9% for twice a week and 25.6% of the respondents will buy

Kangkawayan Pizza.

Table 2.15 Recommendation of Kangkawayan pizza to others

Response Frequency Percentage
Yes 345 95.8
No 15 4.2
Total 360 100.0
 The table above shows the willingness of the respondents to refer the product.

Majority of the respondents are willing to refer the product Kangkawayan Pizza.

Table 2.16 Perception of the Respondents for Kangkawayan Pizza in different terms of
Mean
Aroma 3.36
Taste 3.43
Texture 3.45
Appearance 3.50

Table 2.16 shows how the respondents are satisfied with Kangkawayan Pizza in

terms of aroma, taste, texture and appearance. The table shows that the respondents are

SATISFIED for Kangkawayan Pizza.

Projection Demand

In order to measure the present demand for Kangkawayan Pizza the data used was

based on the survey conducted.

Table 2.17 Annual Demand Sample for Kangkawayan Pizza

Times of Con-
Frequency sumption in a Price Annually
month
Once a day 92 20 Php12.00 264,960
Twice a week 122 8 12.00 140,544
Thrice a week 146 2 12.00 84,096
Annual Demand
489,600
Projected Demand = Total Population x Annual Demand Sample / Sample

Population

Annual Demand = 3,563 x 489,600 / 360

= Php 4,845,680.00

Based on the gathered information and data of the proponents, Table 2.11 shows

the flow of the Demand sample the respondents to the product where in it gives an aver-

age consumption of the product and how respondents tend to buy the product. The total

demand sample is Php 489,600 annually or yearly which shows the buying behavior of

the respondents.

Table 2.18 Yearly Projected Demand

Year Projected Demand
2017 4,845,680.00
2018 4,942,593.60
2019 5,041,445.47
2020 5,142,274.35
2021 5,245,119.87

From the formula given, the proponents derived with 4,845,680.00 the demand

projection since the annual increase of the population of Colegio de Dagupan is (assum-

ing the 2%). In order to get the next year projected demand, the proponents computed the

yearly demand by multiplying the projected demand to (1.02%).

Supply Analysis

The proposed product has no reliable data on the supply of a new product to be

offered in the market. In addition, the proposed product is in line in snack category. The

location of the business on the other hand, has already had its existing suppliers, direct

competitors and indirect competitors of the proposed product such as Burger Stalls, Ba-

nana Cue Stalls, Fishball Stalls, and Street Foods Stalls.

From the formula

Supply = Daily Sales x 360 days

Table 2.19Annual Sales of Direct Competitors

Direct Competitors Daily Sales Annual Sales
GREENWICH Php3,325.00 Php1,197,000.00
PIZZA HUT 6,493.75 2,337,750.00
SHAKEYS 3,737.50 1,345,500.00
YELLOWCAB PIZZA 9,333.50 3,360,060.00
CHA CHAS PIZZA 1,112.50 400,500.00
Total Php10,931.25 Php8,640,810.00

Table 2.20 Annual Sales of Indirect Competitors

Indirect Competitors Daily Sales Annual Sales
Burger Stalls Php1,500 Php540,000
Banana Cue Stalls 1,200 432,000
Fishball Stalls 800 288,000
Street Foods Stalls 1,000 360,000
Total Php4,500 Php1,620,000

Based on the given Table 2.20 by using the given, Table shows the daily and an-

nual sales of the indirect competitors of the proposed business. Using the formula, the

proponents derived with the supply Php 1,620,000.

Factors Affecting Market

Demand

Taste and Preferences. The consumers tastes and preferences affect the demand

for a particular product. Peoples tastes may change overtime. There are various factors

that can cause changes to a persons preference. These factors have dynamic state. Con-

stancy to this factor would not give a better contribution to the business. Concurrently

work with this factor in order to not materially hinder the main goal.

Price. The price of a product is one of the most important factors which influence

the buying behavior of a costumer. Substantially, customers look first at the price and the

quality as well. Even a quality product is rarely being patronized when the price is not

afforded by them. The most denominated factor in the buying behavior is the customers

ability to pay. It should be carefully set, not just basing in the main goal of the business

but especially in the customers satisfaction.

Price Expectation. Often, customers expect for a higher price when the prod-

ucts/services is convincing and is distinct from others. A customer is smart in the way

that they will grab the opportunity to purchase more when they know the price is afforda-

ble and is limited. When costumers anticipate the increase of price of Kangkawayan pizza

the next day, they will buy more today. So, the demand for Pizza increases. It is inversely

in nature, when the customers know about the increase price in the next day then they

will buy more now. So the proper supply and production of a product is affected that it

contributes to the unexpected increase of a product.

Supply

Production cost. The supply depends on the customers demand. Higher produc-

tion means higher cost to be incurred, so a tendency to lower profit. But when you got

many sales, it will cover the incurred cost. Many companies are competitively doing

techniques in order to surpass the other companies, and concurrently they forget that it is

already surpassing their ideal cost, that would forgo profit.

Prices of goods and services. Prices of Goods and Services are not merely affect-

ing the supply, but most importantly it affects the generation of profits. The setting of the

prices is another difficult topic in that we must make sure that aside from covering

enough the incurred costs, it must also adhere to the customers ability to pay. Price af-

fects the buying behavior of the customers so it should not be the last thing to be con-

fronted.

Price Study

The part of the study serves as guide or basis for the proponents to decide for the

price that they are going to offer their product. The proponents come up with the price of

P12.00.

We consider the three factors which are the price of competitors, the production

cost and the conducted survey regarding on the price that they are willing to spend in

buying Kangkawayan Pizza.

Table 2.21 Price Study for Direct Competitors
Direct Competitor Product (per slice) Price
Greenwich ( Classic Pizza) Hawaiian Php 21.875
Ham and Cheese 20.5
Pepperoni 24.125

Pizza Hut Hawaiian 46.875

Cheese 51.125
Bacon Supreme 31.875

Shakeys Pepperoni 28.00

Hawaiian 28.00
Classic Cheese 18.75

Yellow Cab Pepperoni 40.00

Hawaiian 40.00
Cheese 106.67

Table 2.22 Price Study for Indirect Competitors

Business Name Product Price
Burger Stalls Plain Burger Php 12.00
Burger with Egg 20.00
Burger, Ham and Cheese 22.00
Banana Cue Stalls Banana Cue 8.00
Camote Cue Stalls Camote Cue 8.00
Fishball Stalls Fishball .50/piece
Kikiam 1.00
Street Foods Stalls Nuggets 5.00
Kwek-Kwek 2.50
Calamaries 4.00
Atay 3.00

The table shown above is the different prices of direct and indirect competitors of

Kangkawayan Pizza, wherein the difference of the prices are very competitive in indirect

competitors. In comparison, the price of Kangkawayan Pizza is Php 10.00, and belongs to

the low price that the target market can afford.

Sales Forecast

Table 2.23Projected Sales for 5 years

Year Annual Sales
2017 432,000
2018 440,640
2019 449,452.8
2020 458,441.856
2021 467,610,6931

The Table 2.14 shows the data determining the annual increase of supply and

projected supply of Kangkawayan Pizza from year 2017-2021. The proponents adopted

the same which is 2% increase annually.

Market Share

The proponents used the Pareto Principle or also known as the 80-20 rule, the law

of the vital few, and the principle factor scarcity. The 80% represents the major players in

the market, while the 20% of it represents the minor players.

Table 2.24Market Share

Year Annual Sales Annual Demand
2017 432,000 4,845,680.00
2018 440,640 4,942,593.60
2019 449,452.8 5,041,445.47
2020 458,441.856 5,142,274.35
2021 467,610,6931 5,245,119.87
 In order to compute for the market share, the proponents used the formula:

Market Share = Annual Sales / Projected Demand x 100 %

Where:

Annual Sales = Number of Pcs per day x Php. 12.00 x 5 x 4 x 12

= 150 x 12.00 x 5 x 4 x 12

Annual sales = P 432,000.00

Projected Demand = P 4,845,680.00

Market Share = (432,000/ 4,845,680) x 100 = 8.92%

% of Unsatisfed Demand = Unsatisfed Demand / Demand

= (4,845,680.00-8,640,810.00)/4,845,680.00

=78.32%

The proponents computed their market share and come up to 8.92% out of 20%

minor players in the market.

Market Share (8.92%)

Unsatisfied Demand (78.32)

Competitor's Share (12.76)

Figure 2.1 Market Share

Marketing Programs and Strategies

Product

Figure 2.2 Logo and Packaging of Kangkawayan Pizza

Kangkawayan Pizza is a unique innovation of pizza wherein the dough itself is

mixed with kangkong leaves and the toppings are has a kangkong stems and bamboo
shoots. Aside of ham and cheese, Hawaiian overload, pepperoni, etc. the kangkawayan

pizza is new trend and/or idea on how you will cook the kangkong and bamboo shoots.

The proponents want the customer to be encouraged and make response by trying it.

The proponents used the paper packaging that can be recycled and may help the

environment. The packaging has a printed image which are the business name Red

Strings, product name Kangkawayan Pizza, tagline Ang Pizzang naKangkabusog na

naKangkalusog, and the logo itself.

Price

Setting price of a product was one of important factor in selling new product. Be-

cause in this way you would see if how consumers will responds. The proponents set the

Kangkawayan Pizzas price at Php. 12.00 so that it can provide the cost used, since Red

Strings is new in the industry. And also a competitive pricing that will contest the selling

price of the competitors, nevertheless these will be subjected to change depending on the

prices of the raw materials in the market which will be used in the production.

Table 2.25 Computation for the Price of Kangkawayan Pizza

Computation Result
Raw Materials 145,736/ 12 / 20 / 150 4.04
Labor 200 / 150 1.33
Overhead 2.56

Cost of Goods Sold 7.93

Mark-Up * 1.5
Selling Price Php. 11.89 or Php. 12.00
Place

Products pass through several hands before they came up to the consumers for

personal use. But in some cases, producers sell their products directly to consumers

without involving any intermediaries, which is called direct channel. The proponents will

use the direct channel at Dagupan area in which the producers sell their goods and ser-

vices directly to the consumers. There are no middlemen present between the producers

and consumers. The business may sell directly to the consumers through own retail

stores.

CONSUMERS

Figure 2.1 Distribution Channel

Promotion

Promotion is the strategy or the activities to influence people when making deci-

sion to buy. One form of promotion is through advertising. The proponents will advertise

the Kangkawayan Pizza in a form of Tarpaulin and through Social Media to inform the

consumers directly about the newly innovated pizza.

Figure 2.4 Kangkawayan Pizza Sample Tarpaulin

Figure 2.5 Kangkawayan Pizza Social Media Page

 Chapter 3

TECHNICAL FEASIBILITY

Production Process

Production process refers to the transformation or conversion of the raw materials

input into finish product or output.

Kangkawayan Pizza Recipe

Ingredients

For the Dough For the toppings

3 cups All purpose flour Tomato Sauce

teaspoon Yeast Ketchup

1 tablespoon Sugar Ham

2 pinch Salt Cheese

1 cup Water Stripped Bamboo Shoots

Chopped kangkong leaves Chopped kangkong stems

White onions
Utensils

Rolling pin measuring cup

Knife Measuring spoon

Chopping board Tupperware

Casserole Bowl

Plate Oven Toaster

Pizza Pan Strainer

Paddle
Procedures

1. Gather the needed materials.

2. Prepare the ingredients for the pizza dough.

3. Wash the kangkong and bamboo shoots.

4. After washing the bamboo shoots, boil it in casserole for 5-10 minutes and put a small

amount of salt.
5. While waiting for the bamboo shoots to be cooked, chop the kangkong leaves and the

stems into small pieces, and cut the onions into rings.

6. After chopping, prepare the needed things for the crust.

7. Mix all the dry ingredients, the all purpose flour, yeast, sugar and salt in a mixing

bowl.
8. Add water.

9. Mix together until well blended for about 1 minute.

10. Pour some flour, if needed, to handle.

11. Mix the dough with the chopped kangkong leaves.

12. Roll the dough by the use of rolling pin and transfer it on the pizza pan.

13. Top the dough with the tomato sauce, ketchup, ham,onion rings, bamboo shoots and

the cheese.
14. Put the pizza pan in the oven toaster and let it cook for 7 minutes until the crust is

brown and the cheese already melts.

15. Put the cooked pizza into plate.

 Figure 3.1 shows the step by step process in making Kangkawayan Pizza. The

proponents bought the Kangkong and the bamboo shoots in Dagupan Centro Mart Mar-

ket. The materials such as the rolling pin, bowl, measuring cup, measuring spoon, knife,

chopping board and the oven toaster were used in making the Kangkawayan Pizza. After

that, the ingredients were washed and the bamboo shoots were boiled for the toppings.

After preparing the dough in a pizza pan, put the toppings. Cook it in the oven toaster for

about 7 minutes until the crust becomes brown and when the cheese already melts.
Figure 3.1 Production process

Start

Gathering the raw materials

Preparing the ingredients

Washing and boiling of kangkong and bamboo shoots for ten minutes

Chop the ingredients

Measuring and Mixing of the dry ingredients for the dough

Rolling of the dough with the chopped kangkong leaves

Adding of the toppings and baking for ten minutes

End
Service process

Figure 3.2 shows the service process of Kangkawayan Pizza on how the business

will serve the customers. The proponents will smile and greet their customers and ask for

their order. Next is, preparing their orders, service proper and wait for their payments.

Lastly, customers had their orders and serve properly.

Figure 3.2 Service Process

Start

Smile and greet the customers

before asking for their orders

Preparing their orders

Give the orders

Service proper

Payments

End
Business Location

The business location will be in Rioferio Road, Arellano Street Dagupan City

Pangasinan. This location is very desirable because it accessible to our main target maket.

Figure 3.3 Map of Pangasinan

Figure 3.4 Map of Dagupan City

Figure 3.5 The Vicinity Map of the Proposed Business

Operation Size and Schedule

The Proponents intended to produce one hundred pieces (100 pcs.) of Kangka-

wayan pizza per day; this is base from the half of the respondents in the survey who an-

swered that they are willing to buy Kangkawayan Pizza. The Business will open Monday

to Friday at 8:00 to 5:00 pm located at Rioferio Road, Arellano St. Dagupan City.

Table 3.1Operation Schedule of the Business

Days Time
Monday Friday 08:00 a.m. 05:00 p.m.

Table 3.3 Operating Production of Kangkawayan Pizza

Daily Weekly Monthly Yearly
Average of 150 pcs. 750 pcs 3000 pcs 36,000 pcs
Food Stall

The allotted budget for the Food Stall of the said business is Php. 7,000.00. the

cost of the food stall will be provided by the proponents.

Size: 3m x 1.5m

Scale Used: 1:100 mts

Plate 3.1 Food Stall (Perspective)

Plate 3.2 Food Stall (Front Elevation)
Plate 3.3 Food Stall (Floor Plan)
Plate 3.4 Food Stall (Left-Side Elevation)
Plate 3.5 Food Stall (Right-Side Elevation)
Plate 3.6 Food Stall (Rear Elevation)
Table 3.3 Rent Expense
Price Daily Monthly Yearly
Cost Php. 200.00 Php. 200.00 Php. 4,000.00 Php. 48,000.00

Equipment
Table 3.4 Kitchen Utensils and Equipment
Equipment Quantity Unit Cost Total

Oven 1 Php 8,000.00 Php 8,000.00

Display Case
1 1,000.00 1,000.00

Rolling Pin 1 100.00 100.00

Bowl 2 50.00 100.00

Measuring Cup 1 50.00 50.00

Pizza Pan 2 100.00 200.00

Caserole 1 200.00 200.00

Single Burner 1 400.00 400.00

Strainer 1 30.00 30.00

Chopping 1 30.00 30.00
Board

Knife 2 35.00 70.00

Paddle 2 20.00 40.00

Plate 2 20.00 40.00

Spoon 2 15.00 30.00

Pizza Shovel 1 50.00 50.00

Total Php 10,

340.00

These are the equipment needed in making the pizza dough and of the toppings.

The equipment are expected to have a useful life of five years. The materials will be

bought at Novo, Unitop, Lim Pan and ________.

Furniture and Fixtures

Table 3 .5 Furniture and Fixture

Description Fixture Quantity Unit Price Total
Monoblock
chairs 3 Php 250.00 Php 750.00

Total Php 750.00

The proponents will be using furniture and fixture in the operation of the

business. The proponents will provide monoblock chairs for the customers which will be

bought at Pangasinan Marketing.

Supplies/Inventories

Table 3 .6 Raw Materials (For dough)

Raw Mate- Quan- Unit Cost Daily Weekly Monthly Yearly
rials tity

I bunch Php 10.00 Php Php 50.00 Php 200.00 Php 2,400.00
10.00
Water Spin-
ach

3 kg 90.00 270.00 1,380.00 5,400.00 64,800.00

Flour

100 50.00 50.00 250.00 1,000.00 12,000.00

grams
Active Yeast
 30 ml 11.00 11.00 55.00 220.00 2,640.00

Vegetable
Oil

100 5.40 5.40 27.00 108.00 1,296.00

grams

Salt
Total Php 83,
136.00

Table 3.6 shows the raw materials in the production of the dough. The breakdown

for the daily, monthly and yearly cost is also illustrated. The total cost of all ingredients

for the dough is Php 83, 136.00.

Table 3.7 Raw Materials (For Toppings)

Raw Materials Quan- Unit Daily Weekly Monthly Yearly
tity Cost

1 shoot Php30.0 Php30.0 Php150.0 Php600.0 Php7,200.00

0 0 0 0
Bamboo Shoots

1 bundle 10.00 10.00 50.00 200.00 2,400.00

Water Spinach

kilo 40.00 40.00 200.00 800.00 9,600.00

 Onion

1 40.00 40.00 200.00 800.00 9,600.00

Tomato Sauce

1 pack 70.00 70.00 350.00 1,400.00 16,800.00

Cheese

1 50.00 50.00 250.00 1,000.00 12,000.00

Ham
Total Php57,600.0
0

Table 3.6 and3.7 shows the raw materials in making the dough and for the top-

pings. The tables also show the tabulation on daily, monthly and yearly expenses in the

production of pizza. The total cost for the toppings in yearly basis is Php57,600, and for

the dough is Php 83,136.00. The total cost of raw materials in terms of year is

Php 140, 736.00

Packaging
Table 3.8 Packaging
Quantity Unit Cost Monthly Yearly

20 Php 6.00 Php 2,400.00 Php 28,800.00

Pizza Box

1 pack 0.245 490.00 8,880.00

 Paper Bag

1 pack 15.00 300.00 3,600.00

Tissue Paper
Total Php 38,280.00

Table 3.8 shows the packaging cost of the product Kangkawayan Pizza.

The annual cost of the packaging is Php 38,280.00.

Office Supplies
Table 3.9 Office Supplies
Items Quantity Unit Cost Monthly Yearly

2 Php 6.00 Php 12.00 Php 144.00

Ball pen

1 75.00 75.00 75.00

Record Book
Total Php 219.00

Table 3.9 shows the cost of office supplies that is used in the recording of

data. The annual cost is Php 219.00.

Production Supplies

Table 3.10 Production Supplies

Description Quantity Unit Cost Monthly Yearly

2 25.00 50.00 600.00

Plastic Gloves

3 10.00 30.00 360.00

Hair Net

1 40.00 40.00 480.00

Apron

2 20.00 40.00 480.00

Pot Holder

2 10.00 20.00 240.00

Kitchen rug

1 50.00 50.00 600.00

Kitchen Towel

3 10.00 30.00 360.00

Face Mask
Total 165.00 260.00 3,120.00

Table 3.10 shows the yearly cost of the production supplies of Kangkawayan Piz-

za which is Php 3,120.00.

Cleaning Materials

Table 3.11 Cleaning Materials

Materials Quantity Unit Cost Monthly Yearly

1 Php60.00 Php60.00 Php120.00

Broom

1 pack 50.00 25.00 300.00

Garbage Bag

2 60.00 120.00 120.00

Garbage Bin

1 70.00 70.00 70.00

Dust Pan

Dishwashing 1 25.00 25.00 300.00

Liquid

Sponge

2 20.00 40.00 480.00

Total 285.00 340.00 1,390.00

 Table 3.11 shows the yearly cost of cleaning materials involving in the production

of the kangkawayan pizza which the total cost is Php 1, 390.00

Utilities

Water

The water will be supplied by Dagupan Water District. The supply of water is

needed for the production of food and for cleaning purposes.

Gas

Gas tank is needed for cooking and baking purposes worth of Php 500.00 monthly

budgeted and the supplier would be PR Gas.

Table 3.14 Utilities

Specification Supplier Monthly Yearly

Water Dagupan Water Php 200.00 Php 2,400.00

District

Gas PR Gaz 500.00 6,000.00

Total Php 8,400.00

Transportation

The proponents set a budget of Php320.00 a month for the transportation in buy-

ing the raw materials for production.

Manpower Requirement

Table 3.13 Manpower Requirements

Description Monthly Yearly

Service Crew Basic Pay 4,000.00 48,000.00

SSS Contribution 141.31 1,695.72

PhilHealth Contribution 100.00 1,200.00

TOTAL 4,241.31 50,895.72

The table 3.13 shows the manpower requirements of the business. The business

needs a crew. The workers are committed to work eight hours a day. The working hour is

from 8:00 am-5:00 pm, Mondays to Fridays.

Advertising Cost

Table 3.13 Advertising Cost

Description Quantity Unit Cost Monthly Yearly
Tarpaulin 2 Php 120.00 Php 240.00 Php 240.00
Total Php 240.00
Table 3.13 shows the cost of advertising of the Kangkawayan Pizza. The propo-

nents will use tarpaulin which annual cost is P240.00.

Waste Disposal Management

It is always important to consider the proper management of waste in the area of

business. Proper segregation of biodegradable and non-biodegradable really matters.

Since its a production of a food, we need to keep the environment clean because germs

and bacteria are all the way growing when something in the environment is not orderly
segregated. Productions of foods involve being in a wet environment, bacteria and germs

are more viably growing here so we need to get more concern to this matter. Foods are

somehow not safe from this so we need to assure our prospective customer.

The proponents will apply the rules and regulations on waste segregation to make

sure of proper sanitation.

 Chapter 4

ORGANIZATION AND MANAGEMENT FEASIBILITY

Nature and Form of Business

The Red Strings Kangkawayan Pizza will be considered as manufacturing

business that will produce its own product.

The proposed business will be registered in the Barangay Micro Business Enter-

prises (BMBEs) also known as the Republic Act 9178 of 2002, refers to any business

entity or enterprise engaged in the production, processing or manufacturing of products or

commodities, including agro-processing, trading and services, whose total assets includ-

ing those arising from loans but exclusive of the land on which the particular business

entity's office, plant and equipment are situated, shall not be more than Three Million

Pesos (P3,000,000.00). All BMBEs shall be exempt from income tax for income arising

from the operations of the enterprise.

The proposed business will be in the form of sole proprietorship where one person

vests ownership. Sole Proprietorship is the most common and simplest form of business

organization. It is not subject to much government regulation, and is relatively simple to

manage and control.

Legal Requirements

In setting up the business, it is essential to comply with the legal require-

ments for formality and operation of the business. This includes the following:

Table 4.1 Organization Cost

Description Cost

Business Permit P 681.84

Barangay Permit 50.00

Mayors Permit 638.14

BIR Registration 500.00

DTI Permit 200.00

BMBE Fee 1,000.00

Sanitary Permit 100.00

Total P 3,169.98

Organizational Structure

Organizational structure describes the administrative and functional structure of

the organization. An organizational structure defines how activities such as task allocation,

coordination and supervision are directed toward the achievement of organizational aims.
It can also be considered as the viewing glass or perspective through which individuals see

their organization and its environment.

CREW

Human Resource Management

The figure shows the job analysis for crew of the proposed business.

Job Title: Crew

Job Purpose:

Job Description:

Responsible for Customer Service

Responsible in preparing the food

Responsible in setting up the stall

Responsible in cleaning up the stall

Maintains cleanliness and Hygiene

Job Specification:

At least High School Graduate

Male or female
 18-35 years old

With pleasing personality

Physically fit

Responsible and can handle pressure

Salary: P 200.00/day

Benefits:

PhilHealth

Social Security System (SSS)

Management Style

Red String will be having a participative or democratic management style. A

democratic leadership style is a very open. A democratic style allows the employee to take

part in decision making therefore everything is agreed upon by the majority. The com-

munication is extensive in both directions (from employees to leaders and vice versa).

This style can be particularly useful when complex decisions need to be made that require

a range of specialist skills. From the overall businesss point of view, job satisfaction and

quality of work will improve, and participatory contributions from subordinates will be

much higher.

With this kind of working environment there will be a smooth flow of work and

the relationship between the manager/owner and the employee.

Project Time Table

The figure shows the Gantt Chart of the Feasibility Activities and Pre-Operating

Activities done from the first week of July.

Pre-Operating Activities July August September October November

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1. Business Proposals

2. Construct a business

name (logo, product name,

tagline)

3. Determine the type of

business organization

4. Surveying Raw Materi-

als

5. Identify the indirect

and direct competitors

6. Measure the market

share

7. Create a marketing

programs and strategies

8. Acquiring of equipment

of furniture and fixtures

9. Purchasing of supplies

10. Designing organiza-

tional chart and other as-
pects of organizational
feasibility

11. Procurement of prod-

ucts

12. Start of business op-

eration
 Chapter 5

FINANCIAL FEASIBILITY

Financial Feasibility is an assessment of financial aspect of the proposed business.

It quantifies the results of marketing, technical, management, taxation and legal phase of

the project study. It considers many things such as major assumptions, projected financial

statements and the analysis of the financial projections.

Major Assumptions

1. The business will be in the form of sole proprietorship.

2. The business will be registered as Barangay Micro Business Enterprises and is

exempted to tax.

3. Legal requirements (organizational costs) include business permit, mayors per-

mit, sanitary permit, DTI permit and BIR permit.

4. The working days of the operation of the business will be five (5) days.

5. Selling and administrative expenses include fixed cost like depreciation expense (a

noncash expense), utilities expense, salaries expense, and advertising expense and

rent expense.

6. The project will be using a five year projection method.

7. The project will be using a five year projection method.

8. The selling price will be Php12.00 per slice of pizza and will be fixed throughout

the five year projection.

9. Sales increase by 2% every year.

10. Depreciation method used is a straight line method with a useful life of 5 years

with no salvage value.

11. 150 slices of pizza will be produced everyday from Monday-Friday.

12. All sales and purchases are on a cash basis.

13. Salaries expense includes fringe benefits (e.g. SSS, PhilHealth)

14. The owner is allowed to withdraw on the first year amounted to Php10,000.00 and

an increase of Php5,000.00 every year.

15. The Effective Interest rate to be used is 12%.

 Initial Capital Requirement
KangKawayan Pizza

Description Cost

Raw Materials (weekly) Php2,932.00

Kitchen Utensils and Equipment 10,340.00
Furniture and Fixture 750.00
Food Cart 7,000.00
Organization Cost 3,169.98
Production Supplies 260.00
Office Supplies 87.00
Cleaning Materials 340.00
Advertising Cost 240.00
Rent (monthly) 4,000.00
Transportation 320.00
Packaging (Weekly) 797.50
Php30,236.48

Source of Financing

Cash Contribution Php 30, 236.48

As show above, the proposed business will have an initial investment of

Php 30, 236.48 that covers the working capital fixed assets. The source of financing will

be the cash contribution that will be divided equally among the proponents.
 Total Projected Cost
Kangkawayan Pizza

Fixed Assets Cost

Kitchen Utensils and Equipment 10,340.00
Furniture and Fixtures 750.00
Food Cart 7,000.00

Working Capital
Product Cost 140,736.00
Organization Cost 3,169.98
Supplies 4,729.00
Advertisement 240.00
Utilities 8,400.00
Transportation Cost 3,840.00
Rent 48,000.00
Salary 50,895.72
Packaging 38,280.00
Total Project Cost 316,380.70
 Projected Financial Statement

Red Strings Kangkawayan Pizza

Projected Statement of Comprehensive Income
For the Years Ended December 31, 2017-2021

2017 2018 2019 2020 2021

Sales 432,000.00 440,640.00 449,452.80 458,441.86 467,610.69

Less: Cost of Goods
Sold 140,736.00 143550.72 146421.734 149350.169 152337.1725

Profit 291,264.00 297,089.28 303,031.07 309,091.69 315,273.52

Less: Operating
Expenses

Salaries Expense 50,895.72 50,895.72 50,895.72 50,895.72 50,895.72

Organization Cost 3,169.98 3,119.98 3,119.98 3,119.98 3,119.98

Advertising Cost 240.00 240.00 240.00 240.00 240.00

Supplies Expense 4,729.00 4,729.00 4,729.00 4,729.00 4,729.00

Transportation Ex-
pense 3,840.00 3,840.00 3,840.00 3,840.00 3,840.00

Utilities Expense 8,400.00 8,400.00 8,400.00 8,400.00 8,400.00

Rent Expense 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00

Packaging Expense 38,280.00 38,280.00 38,280.00 38,280.00 38,280.00

Depreciation Ex-
pense 3,618.00 3,618.00 3,618.00 3,618.00 3,618.00
Total Operating
Expense 161,172.70 161,122.70 161,122.70 161,122.70 161,122.70

NET INCOME Php130,091.30 Php135,966.58 Php141,908.37 Php147,968.99 Php154,150.82

 Red Strings Kangkawayan Pizza
Projected Statement of Cash Flows
For the Years Ended December 31, 2017-2021
2017 2018 2019 2020 2021

Cash Flows from

Operating Activities
Cash Receipts from
Customers 432,000.00 440,640.00 449,452.80 458,441.86 467,610.69
Cash Paid for
Product Cost 140,736.00 143,550.72 146,421.73 149,350.17 152,337.17
Salaries Expense 50,895.72 8,400.00 8,400.00 8,400.00 8,400.00
Organization Cost 3,169.98 3,119.98 3,119.98 3,119.98 3,119.98
Production Supplies 3,120.00 3,120.00 3,120.00 3,120.00 3,120.00
Office Supplies 219.00 219.00 219.00 219.00 219.00
Cleaning Supplies 1,390.00 1,390.00 1,390.00 1,390.00 1,390.00
Packaging Supplies 38,280.00 38,280.00 38,280.00 38,280.00 38,280.00
Advertising Cost 240.00 240.00 240.00 240.00 240.00
Transportation Cost 3,840.00 3,840.00 3,840.00 3,840.00 3,840.00
Utilities Expense 8,400.00 50,895.72 50,895.72 50,895.72 50,895.72
Rent Expense 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Net Cash Flow from
Operating Activities 133,709.30 139,584.58 145,526.37 151,586.99 157,768.82

Cash Flows from

Investing Activities
Purchase of Fixed
Assets 18,090.00
Net Cash Flow from
Investing Activities 18,090.00

Cash Flow from

Financing Activities
Investment by the
Owner 30,236.48
Withdrawal by the
Owner 10,000.00 -15000.00 (20,000.00) (25,000.00) (30,000.00)
Net Cash Flows
from Financing
Activities 20,236.48 (15,000.00) (20,000.00) (25,000.00) (30,000.00)
Net cash Flow 135,855.78 124,584.58 125,526.37 126,586.99 127,768.82
Cash Balance
beginning of the
year 135,855.78 260,440.36 385,966.73 512,553.71
Cash Balance end of Red
the year 135,855.78 260,440.36 385,966.73 512,553.71 640,322.53 Strin
gs
Kangkawayan Pizza
Projected Statement of Financial Position
For the Years Ended December 31, 2017-2021

2017 2018 2019 2020 2021

Current Assets
Cash 135,855.78 260,440.36 385,966.73 512,553.71 640,322.53
Kitchen Equipment,
net 8,272.00 6,204.00 4,136.00 2,068.00 -
Furniture,net 600.00 450.00 300.00 150.00 -
Food Cart, net 5,600.00 4,200.00 2,800.00 1,400.00 -
Total Assets 150,327.78 271,294.36 393,202.73 516,171.71 640,322.53

Tax Payable
Owners Equity
Owners Capital 150,327.78 271,294.36 393,202.73 516,171.71 640,322.53
Total Owners Equity 150,327.78 271,294.36 393,202.73 516,171.71 640,322.53

Red Strings Kangkawayan Pizza

Projected Statement Changes in Owners Equity
For the Years Ended December 31, 2017-2021

2017 2018 2019 2020 2021

Beg. Owner's Capital 150,327.78 271,294.36 393,202.73 516,171.71
Initial Investment 30,236.48
Profit for the Year 130,091.30 135,966.58 141,908.37 147,968.99 154,150.82
Withdrawal by the
Owner 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00
End. Owner's Capital 150,327.78 271,294.36 393,202.73 516,171.71 640,322.53

Financial Analysis
1. Break-even point

This analysis shows us the enough revenue to cover the incurred costs of

Production. But the Enough revenue should not be aimed all the time, we should

also aim for a profit other than the Break-even point.

Computation:

Break-even in unit = Fixed costs/ Contribution margin per unit

= 161,172.70/ {12 (140,736/ 36000)}

= 161,172.70/ 8.09

= 19,920.82 units.

By producing 19,920.82 units, the incurred costs can be covered sufficiently.

Break-even in Pesos = Fixed costs/ Contribution Margin ratio

= 161,172/ ( 432,000 140,736) / 432,000

= 161,172/ 67.42%

= 239,056.66 Pesos.

2. Return on Investment (ROI)

 This analysis signifies the return for investment that is income generated every

operation.

Formula:

ROI = Net income/ net investment

= 130,091.30/ 316,380.70

=0.41%

Return on Investment is 41%, it means that investment gains compare favorably

to investment costs, so it should be undertaken.

3. Payback Period

This states how long the capital invested shall be recovered from the yearly cash flow

generated.

Computation:

Payback Period = net investment (annual) cash inflow

Year Annual Cash Flow Cumulative Cash Flow

0 - (316,380.70)
1 135,855.78 (180,524.92)
2 125,734.58 (54,790.34)
3 125,476.37 70,686.03
4 127,736.99 57,049.97
5 127,718.82 70,668.85

As we can see above, even just in more than two years, we can already recover

our investment, the computation is presented below:

54,790.34/ 125,476.37 = .44 then add (+) the two (2) years.

= 2.44

The payback period is 2.44 years, the investment recovery is at short term only.

4. Net Present Value

This analysis considers the annual cash flow to compute for the present value. If

the Net Present Value is Positive, the Project is undertaken, the Payback period is s also

taken for consideration whether to go with the establishment of the business.

Computation:

Cash Flow (Annually) Present Value Factor Present Value

135,855.8 0.89 121,299.82

125,734.58 0.80 100,343.84

125,476.37 0.71 89,311.60

127,736.99 0.64 81,179.16

127,718.82 0.57 72,471.09

Total Present Value 464,496.51

Present Value Computation:

Present Value 464,496.51
Net Investment (Annual) (316,380.70)
__________
148,115.81

Since the Net Present Value is positive, we should establish the business.
NOTES

1. SALES

Daily Weekly Monthly Annualy

Units Sold 150 750 3000 36000
Selling Price 12.00 12.00 12.00 12.00
Projected Sales (Year 1) 1,800.00 9,000.00 36,000.00 432,000.00

Projected Sales= Units Sold x Selling Price x (1+ rate of increase)

*An annual increase of 2% in sales will be incurred

Year Projected Sales

1 432,000.00
2 440,640.00
3 449,452.80
4 458,441.86
5 467,610.69

NOTE 2 - Cost of Goods Sold

Raw Materials (Production for 150 servings)

For Dough
Unit
Raw Materials Quantity Cost Daily Weekly Monthly Yearly

Water Spinach 1 10 10.00 50.00 200.00 2,400.00

Flour 3 90 270.00 1,350.00 5,400.00 64,800.00

Active Yeast 1.00 50 50.00 250.00 1,000.00 12,000.00

Vegetable Oil 1 11 11.00 55.00 220.00 2,640.00

Salt 1 5.4 5.40 27.00 108.00 1,296.00

Total 346.40 1732 6928 83136
Raw Materials for Toppings
Raw Mate- Unit
rials Quantity Cost Daily Weekly Monthly Yearly
Bamboo
Shoots 1 30.00 Php30 Php150 Php600 Php7200
Water
Spinach 1 10.00 10 50 200 2400
Onion 0.5 80.00 40 200 800 9600
Tomato
Sauce 1 40.00 40 200 800 9600
Cheese 1 70.00 70 350 1400 16800
Ham 1 50 50 250 1000 12000
TOTAL Php240 Php1200 Php4800 Php57600

TOTAL
Raw Ma-
terials Php586.40 Php2,932.00 Php11,728.00 Php140,736.00

Cost Per
Unit 3.90933333 19.5466667 78.1866667 938.24

Note 3 - Organization Cost

Description Cost
DTI (Renewable every 5 yrs) Php200.00
BIR 500.00
Barangay Clerance 50.00
Business Permit 681.84
Bmbe 1000.00
Business Permit
Mayor's Permit 638.14
Sanitary 100
Total 3,169.98
NOTE 4 SALARIES EXPENSE

Description Monthly Yearly

Service Crew Basic Pay 4,000.00 48,000.00

SSS Contribution 141.31 1,695.72

PhilHealth Contribution 100.00 1,200.00

TOTAL 4,241.31 50,895.72

NOTE 5 Advertising Cost

Description Quantity Unit Cost Amount

Tarpaulin 2 Php120.00 Php240.00
TOTAL Php240.00

NOTE 6 SUPPLIES EXPENSE

Production Supplies
Description Quantity Unit Cost Monthly Yearly
Plastic Gloves 2 Php25.00 Php50.00 Php600.00

Hair Net 3 10.00 30.00 360.00

Apron 1 40.00 40.00 480.00

Pot Holder 2 20.00 40.00 480.00

Kitchen Rug 2 10.00 20.00 240.00

Kitchen Towel 1 50.00 50.00 600.00

Face Mask 3 10.00 30.00 360.00

TOTAL Php165.00 Php260.00 Php3,120.00
Office Supplies
Items Quantity Unit Cost Monthly Yearly
Ballpen 2 Php6.00 Php12.00 Php144.00
Record Book 1 75.00 75.00 75.00
Php87.00 Php219.00

Cleaning Materials
Materials Quantity Unit Cost Monthly Yearly
Broom 1 Php60.00 Php60.00 Php120.00
Garbage Bag 1 50.00 25.00 300.00
Garbage Bin 2 60.00 120.00 120.00
Dust Pan 1 70.00 70.00 70.00
Dishwashing Liquid 1 25.00 25.00 300.00
Sponge 2 20.00 40.00 480.00
TOTAL Php285.00 Php340.00 Php1,390.00

NOTE 7 Packaging

Packaging Quantity Unit Cost Daily Weekly Monthly Yearly

Pizza Box 20 6.00 120.00 600.00 2,400.00 28,800.00
Paper Bag 1 24.50 24.50 122.50 490.00 5,880.00
Tissue 1 15.00 15.00 75.00 300.00 3,600.00
TOTAL 45.50 159.50 797.50 3,190.00 38,280.00

NOTE 8 Utilities

Specification Monthly Yearly

Water 200.00 2,400.00
Gas 500.00 6,000.00
TOTAL 700.00 8,400.00
NOTE 9 Transportation Cost

Daily Weekly Monthly Yearly

Transportation Cost Php 16.00 Php 80.00 Php 320.00 3,840.00
Total Php 16.00 Php 80.00 Php 320.00 Php3,840.00

NOTE 10 Rent Expense

Rent Expense Price Daily Weekly Monthly Yearly

Cost 200 200 1000 4000 Php48,000.00

NOTE 11 Depreciation

Depreciation
Cost Useful Life Expense
Fixed Asset
Kitchen Utensils and Equip 10,340.00 5 2,068.00
Furniture and Fixture 750.00 5 150.00
Food Cart 7,000.00 5 1,400.00
TOTAL Php3,618.00

Fixed Asset 2017 2018 2019 2020 2021

Kitchen Utensils and
Equipment 8,272.00 6,204.00 4,136.00 2,068.00 0.00
Furniture and Fixture 600.00 450.00 300.00 150.00 0.00
Food Cart 5,600.00 4,200.00 2,800.00 1,400.00 0.00
 Chapter 6

SOCIO ECONOMIC FEASIBILITY

Social Responsibility

The Red Strings social responsibilities are to provide safe, clean, healthy and

affordable food (pizza) to the customers. The business is bound to observe cleanliness in

order not to affect the environment whenever doing a production. It is also bound to

promote entrepreneurship and to provide toppings to build a stable state of

Entrepreneurship in the country.

Social Contribution

One of the primary contributions of the business is to provide additional

employment and business to people.

The businesss trades is an essential factor for the economys stability, it is done

through providing compensation income to the employees and especially by paying

permits which is viewed as tax in which the government used it in their specific

expenditure investment.