Professional Documents
Culture Documents
Bossing's Pizza Pagenumber
Bossing's Pizza Pagenumber
Bossing's Pizza Pagenumber
INTRODUCTION
Pizza is
oven-baked
flat
bread
generally
topped
with tomato
was
safeguarded
in
the European
Union as
commonly
used
in
pizza
preparation,
such
Chapter II
PROJECT SUMMARY
There are five kinds of flavor offered by the proposed business namely:
Cheese and Cheese Pizza, Sausage Pizza, Hawaiian Pizza, Beef Burger
Pizza and Mushroom Pizza. The finished product pizza will be place in a
(7
b. Technical Feasibility
The product of the proposed business would have five different flavors.
The pizza in the box is served hot to the customers. The proposed business
hour of the proposed location would be from 4:00 am to 5:30 pm. The people
in the market of the proposed location tend to do marketing as early as 3:00
am.
The pizzas are made at home and frozen before delivering to the
business location. The delivery schedule would be from 3:00 am. The
schedule for the acquisition of additional direct material is made once every
month. The acquisitions of the fixed assets are made upon pre-operation
months of the proposed business.
c. Financial Feasibility
The proposed business financial analysis shows an increasing trend on
profitability ratio of net income over sales. It shows that the business as it
grows is ongoing. There is less than a year on the payback period of the total
project cost invested by the owner. The financial statements also show that
there is 154% on the return on investment after five years.
d. Management Feasibility
The management of the proposed business will be operated by the owner
itself his/her employees. There are 2 saleslady/man and at the same time the
delivery person of the proposed business. One kitchen staff is required to
prepare the pizzas.
5
F. Socio-Economic Contribution
The proposed business would probably benefit the economic status of the
proposed location through the additional investments of the proposed
company. It will also benefit the people for the additional employment and
additional income. The employer who is the owner will also benefit from this
study to see the feasibility of the proposed business to the proposed location
and the projected income and profitability ratio of the company. This could be
an additional source of income for the employer. Thus, this business could be
an example for a small business with a continuous income.
Chapter III
MARKET STUDY
A. Product Description
The Bossings Pizza product will have five different kinds of
flavors namely the Cheese and Cheese Pizza, Sausage Pizza, Hawaiian
Pizza, Beef Burger Pizza and Mushroom Pizza. This is a solo pizza for
each kind of flavor. If the customer will buy one kind of flavor of pizza,
the pizza will be cooked for 10 to 15 minutes in the oven and will be
placed on a box before serving to the customer. Thus, the product is a
hot pizza on a a (7 (18cm)) 7 1/8 x 7 1/8 x 1 3/4 or in a (15
(39cm) ) 15 1/8 x 15 1/8 x 1 pizza box. The main customers of the
business are not only the people of Kapatagan but also the people in
the neighboring area such as in Maranding, Lala. The main purpose of
the business is to promote new taste of pizza with an affordable
amount.
B. Demand
Though the product, pizza, is not new for the people of
Kapatagan, there is a less of promotion for the product since the pizza
that being sold-out to the market was ready made and is served not
hot. The people of Kapatagan has known and tasted pizza (homemade
pizza) with an ordinary pizza bread top with hotdog, pineapple chunks
and tomato sauce. Thus, the people are still looking for a new pizza
with a better quality of taste and with affordable price.
According to the latest survey of the researchers, there is one
homemade pizza owner who delivers pizza to five different areas in
Kapatagan. One of which is in RM Pharmacy, and the four areas will be
located in the main market area. These pizza were sliced into six equal
parts and being sold-out to the market. The main users of pizza will be
the travelers, students, workers and others. The competitor pricing
strategy and its actual sales were shown below price were shown
below.
Table 1. Competitors Pizza Sales
Particulars
Sliced pizza
Whole Pizza
(Solo)
Total
Price
15.00
60.00
75.00
Total Pizzas
Sold
120
20
Sales per
day
1,800.00
1,200.00
3,000.00
C. Supply
Since the proposed location of the proposed Bossings Pizza is a
crowded area, it is assumed that there will be an increase on demand.
In Kapatagan particularly in RM Pharmacy Pizza Stall as one of the
major producers of pizza in the proposed location,
D. Competitive Position
Solo Pizza
38
38
38
38
38
E. Marketing Program
Bossings Pizza product will be placed to a (7 (18cm)) 7 1/8 x 7 1/8 x 1
small box with the logo of the business. And each 4 pizzas will be placed
on a (15 (39cm)) 15 1/8 x 15 1/8 x 1 bigger box with the same logo of the
business. This is other way of promoting the business. The business upon
opening will not use the freebies promos such as free mugs or t-shirts of have
a caravan. The other promotion of the Bossings Pizza will be by flyers and by
recorded advertisement of the business for a lesser expense. Theres no need
9
Chapter IV
TECHNICAL STUDY
A. The Product
The proposed business will manufacture pizzas with five different kind of
flavor. These pizzas are homemade ready to cook pizzas that is served hot to
10
the customers which is good also for the body. The table below shows the
ingredients of the pizza.
Table 3. Ingredients of Bossings Pizza
Hawaiian Pizza
Mushroom Pizza
Sausage Pizza
B. Production Process
The process on how to make the Bossings Pizza should remain
confidential in this study to retain the trade secret of the company. The figure
below shows the service process of the proposed business to the customers.
Figure 1. Service Process of Bossings Pizza
11
Homemade
Pizzas
Delivery of the
Pizzas to the
Business Location
Frozen Pizzas
Customer's
Choice of Pizza
Customer's
Feedback in
Suggestion Box
(Optional)
Serving the
Product to the
Customer
Placing the
cooked pizza in a
box.
Future
Improvement of
the Business
C. Production Schedule
The proposed business hour for the proposed Bossings Pizza Business is
from 4:00 am to 5:30 pm. The people in the market of the proposed location
tend to do marketing as early as 3:00 am. The pizzas are made at home and
frozen before delivering to the business location. The delivery schedule would
be from 3:00 am. Assumed that every day, the business can produce 90
uncooked pizza that totaled for 2520 pizzas per month.
D. Tools, Machinery and Equipment
The table below shows the tools, machinery and equipment needed by the
proposed business and its annual depreciation.
Table 4. Tools, Machinery, Equipment
Particulars
Baker's Stove
Qty.
1
Brand/Description
La Germania
12
Total
Cost
17,000.00
Annual
Dep.
1,700.00
and Oven
Dough Mixer
Cooking pan
Cutting Board
Mugs and
Glasses
Plates and
Bowl
Kitchen
utensils
Roller knead
Cooler
Freezer
Trays
Cutlery
containers
Water
Dispenser
*Cleaning
Tools
Garbage
Containers
Wipers
2,000.00
200.00
800.00
160.00
100.00
20.00
15
Novo Brand
200.00
40.00
10
140.00
28.00
200.00
40.00
1
1
150.00
500.00
30.00
100.00
1
2
27,500.00
250.00
2,750.00
50.00
150.00
30.00
600.00
60.00
1 Set
2
1
Novo Brand
ACL water dispenser (cold
water)
50.00
2
4
Novo Brand
Non-cotton wipers
Total
E. Plant Location
Figure 2. Location Map and Lay-out
13
200.00
50.00
49,840.0
0
5,258.0
0
14
G. Food Stall
The food stall of the business is rented in an amount of Php50.00 per day
in a total of Php18, 250.00 annually. A payment for goodwill is made since the
food stall was owned by the Local Government amounted to Php 20, 000.00.
Its dimension is 2X4 meter including its front row and back row.
H. Direct Materials
The purchased of direct materials includes the raw materials needed in
making the pizza, packaging materials for the packaging of the product and
cleaning materials for the maintenance of sanitation in the business. The
direct materials purchased are assumed to be a fixed charge. Raw materials
are acquired once a month. The unit cost of each pizza flavor was not shown
to retain the trade confidentiality. The assumptions were shown below.
Particulars
15
Total Cost
Raw Materials
Sub-total
Cleaning Materials
Packaging Materials
Flour
Pizza Sauce
Cheese
Sausage
Grind Beef
Mushroom in can
Ham
Pineapple chunks
Garlic
Eggs
Margarine
Oil
Condiments
Dishwashing soap
Pizza Box 7 (18cm)) 7 1/8 x 7 1/8 x 1
with logo
Pizza Box (15 (39cm)) 15 1/8 x 15 1/8 x
1 with logo
Tie Box
Sub-total
Total Direct Materials
9,600.00
300.00
2,400.00
840.00
400.00
520.00
400.00
1,100.00
60.00
468.00
1,500.00
1,512.00
500.00
19,600.00
100.00
10,000.00
3,880.00
120.00
14,000.00
33,700.00
I. Operating Costs
Though the proposed location water supply for washing is available
and is free for every rented stall, to make it more safe for the customers, the
company will provide a water refill supply. The nearest water refill station is in
ACD Drinking water Refill Station that would worth Php25.00 for every refill.
Assumed that the water refill is thrice a week worth Php 75.00. . Delivery
expense is Php 50.00 per day. Pryce gas tank is worth Php 1,350.00 and Php
650.00 for refill. Electricity is assumed to worth Php 630.00 per month.
Electricity increase by 1% every year as well as the water refill, delivery and
gas refill expense.
J. Waste Disposal System
16
The
proposed
company
will
segregate
their
waste
through
non-
Chapter V
17
MANAGEMENT STUDY
Manager
1
Deliveryman/Storeke
eper
1 Kitchen Staff
18
company
Kitchen Staff- bakes the pizza and monitor the direct materials
availability
Storekeeper/Delivery man- serve the customers and delivers the pizza
from the main production to the business location
C. Labor Requirements
Table 6. Labor Requirements
Particulars
Required
Requirements
Personn
Salary per
Total Salary
month
per year
Php 5,000.00
Php 60,000.00
Php 3,000.00
Php 36,000.00
Php 6,000.00
Php 72,000.00
el
1
Manager
Owner of the
company and
knows how to
manage the
Kitchen Staff
business.
Knows how to
bake pizza and
willing to work.
No disease.
Preferably male;
Storekeeper/
man/Deliver
drive single
y man
motor; 20-25
years old
Total
Php
168,000.00
19
D. Time Table
Table 7. Time Table of the Business
Month
1
Particulars
Acquisition of fixed assets and direct
materials; completion of legal forms of the
business.
Installation of different equipment.
Sampling Promotion.
Start of the business
20
Month
2
Month
3
1 2 3 4 1 2 3 4 1 2 3 4
Chapter VI
FINANCIAL STUDY
Equity
(Sched. 2)
Vehicle (Single Motor) Sched. 3
Sub-total
Working Capital:
Operating Cost
Direct Materials (Sched. 4)
Goodwill expense- Food Stall
Sub-total
Total
Total
49,840.00
40,000.00
89,840.00
2,000.00
33,700.00
20,000.00
55,700.00
145,540.00
B. Sources of Financing
An assumption that the owner invested worth Php 150,000.00 as cash on
hand was used in this study.
21
The business bought a vehicle (single motor) for the delivery goods
from plant to business location worth Php 40, 000.00 with an annual
=
Useful Life
Year 1
1,046,976.
00
Year 2
1,072,512.0
0
Year 3
1,098,048.
00
Year 4
1,123,584.0
0
Year 5
1,149,120.0
0
618,187.33
603,770.60
612,869.99
621,970.49
631,072.14
9,258.00
9,258.00
9,258.00
9,258.00
9,258.00
419,530.6
7
459,483.4
0
475,920.0
1
492,355.5
1
508,789.86
300,032.32
119,498.3
5
308,203.84
151,279.5
6
316,375.36
159,544.6
5
324,546.88
167,808.6
3
22
332,718.40
176,071.46
Preoperation
Year 1
Year 2
Year 3
Year 4
Year 5
0.00
150,000.00
150,000.0
0
1,046,976.0
0
0.00
1,046,976.
00
1,072,512.0
0
0.00
1,072,512.
00
1,098,048.0
0
0.00
1,098,048.
00
89,840.00
0.00
0.00
0.00
0.00
0.00
33,700.00
2,000.00
370,700.00
474.00
37,910.00
405,400.00
174.00
37,321.60
405,400.00
174.00
37,434.32
405,400.00
174.00
37,548.16
405,400.00
174.00
37,663.14
0.00
0.00
168,000.00
18,250.00
168,000.00
18,250.00
168,000.00
18,250.00
168,000.00
18,250.00
168,000.00
18,250.00
20,000.00
0.00
0.00
3,100.00
0.00
2,585.00
0.00
2,585.00
0.00
2,585.00
0.00
2,585.00
0.00
145,540.0
0
4,460.00
300,032.32
308,203.84
316,375.36
324,546.88
332,718.40
898,466.32
148,509.68
939,934.44
132,577.56
948,218.68
149,829.32
956,504.04
167,079.96
964,790.54
184,329.46
0.00
4,460.00
152,969.68
285,547.24
435,376.56
602,456.52
23
1,123,584.0
0 1,149,120.00
0.00
0.00
1,123,584.
1,149,120.
00
00
4,460.00
152,969.68
285,547.24
24
435,376.56
602,456.52
786,785.98
Year 2
Year 3
Year 4
Year 5
152,969.
68
35,946.6
7
188,916
.35
285,547.
24
63,906.6
7
349,453.
91
435,376.
56
82,880.0
0
518,256
.56
602,456.
52
92,866.6
7
695,323
.19
786,785.
98
93,866.6
7
880,652
.65
49,840.0
0
40,000.0
0
89,840.
00
9,258.00
80,582.
00
269,498
.35
49,840.0
0
40,000.0
0
89,840.0
0
18,516.0
0
71,324.0
0
420,777.
91
49,840.0
0
40,000.0
0
89,840.
00
27,774.0
0
62,066.
00
580,322
.56
49,840.0
0
40,000.0
0
89,840.
00
37,032.0
0
52,808.
00
748,131
.19
49,840.0
0
40,000.0
0
89,840.
00
46,290.0
0
43,550.
00
924,202
.65
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
150,000.
00
0.00
119,498.
35
269,498
.35
269,498.
35
0.00
151,279.
56
420,777.
91
420,777.
91
0.00
159,544.
65
580,322
.56
580,322.
56
0.00
167,808.
63
748,131
.19
748,131.
19
0.00
176,071.
46
924,202
.65
269,498
.35
420,777.
91
580,322
.56
748,131
.19
924,202
.65
Assets
Current Assets
Cash
Direct Materials
Inventory
Total Current
Assets
Non-Current
Assets
Tools, Machinery
and Equipment
Vehicle (Single
Motor)
Sub-Total
Less: Accumulated
Depreciation
Total Non-Current
Assets
Total Assets
Liabilities
Tax Payable
Total Liabilities
Owner's Equity
Cap., Beg.
Add. Investment
Add: Net Income
Cap., End
Total Liabilities
and Owner's
Equity
25
D. Financial Analysis
a. Return on Investment
Return on Investment=Ave. Annual Net Income/Total Investments X
100%
Table 11. Return on Investment
Year
1
2
3
4
5
Total Net Income
Divided by Critical
Asset Life
Average Net Income
Total Project Cost
Return on
Investment
Net Income
119,498.35
151,279.56
159,544.65
167,808.63
176,071.46
774,202.65
5
154,840.53
145,540.00
106.39
The table above shows that after five years there is 106.39% on return
of investment. Thus, there is a gain generated in the proposed business. This
also means that the business is favorable for additional branches of the
proposed business in the neighbor provinces after five years.
26
b. Payback Period
Table 12. Payback Period
Year
1
2
3
4
5
Total Project Cost
Less Cummulative
Total where investment
is to be recovered
Total amount to be
recovered
Divided by Net
Income+Dep.
Where the investment
is recovered
Quotient
Years
Months(Multiplied by
12)
Payback Period
Net
Income+
Depreciatio
n
128,756.35
160,537.56
168,802.65
177,066.63
185,329.46
145,540.00
Cummulati
ve Total
128,756.35
169,795.56
187,318.65
204,840.63
222,361.46
Payback
Period
128,756.35
16,783.65
128,756.35
0.13
1.56
Less than a
year
-1
The payback period shows that the total project cost can be recovered
with less than one year. Thus, it ascertains that the proposed business is
worth pursuing.
27
Year 1
119,498.35
1,046,976.
00
Year 2
151,279.56
1,072,512.
00
Year 3
159,544.65
1,098,048.
00
Year 4
167,808.63
1,123,584.
00
Year 5
176,071.46
1,149,120.
00
11.41
14.11
14.53
14.94
15.32
The net income shows the profitability ratio of the proposed business on
income after deduction of all expenses including the income tax expense to
the sales revenue of the proposed business. It shows an increasing trend of
ratio. Thus, the business as it grows is ongoing.
28
E. Schedules
Schedule 2. Tools, Machinery and Equipment
Particulars
Baker's Stove and Oven
Dough Mixer
Cooking pan
Cutting Board
Mugs and Glasses
Plates and Bowl
Kitchen utensils
Roller knead
Cooler
Freezer
Trays
Cutlery containers
Water Dispenser
Cleaning Tools
Total
Total Costs
17,000.00
2,000.00
800.00
100.00
200.00
140.00
200.00
150.00
500.00
27,500.00
250.00
150.00
600.00
250.00
49,840.00
Annual
Dep.
1,700.00
200.00
160.00
20.00
40.00
28.00
40.00
30.00
100.00
2,750.00
50.00
30.00
60.00
50.00
5,258.00
EUL
10
10
5
5
5
5
5
5
5
10
5
5
10
5
Particulars
Vehicle
Total
Cost
40,000.00
40,000.00
EUL
10
Annual
Dep.
4,000.00
4,000.00
Year 1
3,600.0
0
Year 2
3,636.0
0
29
Year 3
3,672.3
6
Year 4
3,709.0
8
Year 5
3,746.1
7
8,500.0
0
7,560.0
0
18,250.
00
37,910.
00
7,800.0
0
7,635.6
0
18,250.
00
37,321.
60
7,800.0
0
7,711.9
6
18,250.
00
37,434.
32
7,800.0
0
7,789.0
8
18,250.
00
37,548.
16
7,800.0
0
7,866.9
7
18,250.
00
37,663.
14
Particular
s
Raw
Materials
Cleaning
Materials
Packaging
Materials
Total
Preoperatio
n
19,600.0
0
Year 1
215,600.
00
Year 2
235,200.0
0
Year 3
235,200.0
0
Year 4
235,200.0
0
Year 5
235,200.0
0
100.00
14,000.0
0
33,700.0
0
1,100.00
154,000.
00
370,700.
00
2,200.00
168,000.0
0
405,400.0
0
2,200.00
168,000.0
0
405,400.0
0
2,200.00
168,000.0
0
405,400.0
0
2,200.00
168,000.0
0
405,400.0
0
Year
1
300.0
0
90.00
84.00
474.0
0
Year 2
Year 3
Year 4
Year 5
0.00
90.00
84.00
0.00
90.00
84.00
0.00
90.00
84.00
0.00
90.00
84.00
174.00
174.00
174.00
174.00
Year 1
Year 2
Year 3
Year 4
Year 5
33,700.0
0
370,700.
00
35,946.67
405,400.0
0
63,906.67
405,400.0
0
82,880.00
405,400.0
0
92,866.67
405,400.0
0
30
Purchased
Direct
Materials
Available
Less: Direct
Materials
Used
Direct
Materials
Inventory,
End
404,400.
00
441,346.6
7
469,306.6
7
488,280.0
0
498,266.6
7
368,453.
33
377,440.0
0
386,426.6
7
395,413.3
3
404,400.0
0
35,946.6
7
63,906.67
82,880.00
92,866.67
93,866.67
Annual Revenue
31
Particulars
Direct Materials
Inventory, Beg.
Add: Direct
Materials
Purchased
Direct Materials
Available
Less: Direct
Materials
Inventory,End
Direct Materials
Used
Add: Labor/
Administrative
Exp.
Rent Expense
Goodwill ExpenseFood Stall
Year 1
33,700.0
0
Year 2
35,946.6
7
Year 3
63,906.6
7
Year 4
82,880.0
0
Year 5
92,866.6
7
370,700.
00
404,400.
00
405,400.
00
441,346.
67
405,400.
00
469,306.
67
405,400.
00
488,280.
00
405,400.
00
498,266.
67
35,946.6
7
368,453.
33
63,906.6
7
377,440.
00
82,880.0
0
386,426.
67
92,866.6
7
395,413.
33
93,866.6
7
404,400.
00
168,000.
00
18,250.0
0
20,000.0
0
39,910.0
0
168,000.
00
18,250.0
0
168,000.
00
18,250.0
0
168,000.
00
18,250.0
0
168,000.
00
18,250.0
0
0.00
37,321.6
0
0.00
37,434.3
2
0.00
37,548.1
6
0.00
37,663.1
4
2,585.00
174.00
621,970.
49
2,585.00
174.00
631,072.
14
Operating Costs
Permits And
Licenses
3,100.00 2,585.00 2,585.00
Office Supplies
474.00
174.00
174.00
Cost of Goods
618,187. 603,770. 612,869.
Sold
33
60
99
Schedule 10. Income Tax Expense Summary
Particulars
Income Before
Tax
Less: Basic
Amount
Excess
Multiply: Tax
Percentage
Sub-Total
Add: Basic Tax
Income Tax Due
Year 1
1,046,976
.00
500,000.0
0
546,976.0
0
Year 2
1,072,512
.00
500,000.0
0
572,512.0
0
Year 3
1,098,048
.00
500,000.0
0
598,048.0
0
Year 4
1,123,584
.00
500,000.0
0
623,584.0
0
Year 5
1,149,120
.00
500,000.0
0
649,120.0
0
0.32
175,032.3
2
125,000.0
0
300,032.3
2
0.32
183,203.8
4
125,000.0
0
308,203.8
4
0.32
191,375.3
6
125,000.0
0
316,375.3
6
0.32
199,546.8
8
125,000.0
0
324,546.8
8
0.32
207,718.4
0
125,000.0
0
332,718.4
0
32
Tax Due is
5%
500+10% of the excess over 10,000
2,500+15% of the excess over
30,000
8,500+20% of the excess over
70,000
22,500+25% of the excess over
140,000
50,000+30% of the excess over
250,000
125,000+32% of the excess over
500,000
Over 500,000.00
Year 1
Year 2
Year 3
Year 4
Year 5
2,450.00
2,450.00
2,450.00
2,450.00
2,450.00
515.00
75.00
0.00
75.00
0.00
75.00
0.00
75.00
0.00
75.00
10.00
10.00
10.00
10.00
10.00
50.00
3,100.00
50.00
2,585.00
50.00
2,585.00
50.00
2,585.00
50.00
2,585.00
33
Amount
250.00
300.00
300.00
500.00
50.00
50.00
1,000.00
2,450.0
0
34
35