1

CORPORATE BUSINESS PLAN

KAMISETA NI JULIO

I. BUSINESS DESCRIPTION

Kamiseta ni Julio is a tailoring shop that offers customized shirt, polo short, and

basketball uniforms. It has been in the industry for almost forty-four (44) years, which was

established in the year 1975 by Mr. Julio Lozada, located at 279 P. Burgos St.,

Tacloban City with only one (1) sewing machine, producing quality products such as

barong, school and company uniforms , etc. After the Typhoon Yolanda, the shop was

relocated to P. Gomez St, but unfortunately it was gutted by fire and returned back to P.

Burgos St.

Presently, Kamiseta ni Julio is one of the leading tailoring shop in Tacloban

City, offering customized shirt, polo shirts, school uniforms, office uniforms, and sports

uniforms such as basketball uniforms with unique and stylish designs. It offers sublimation

and embroidery for its customized products. Other products offered are tarpaulin printing

and printed coffee mugs.

It maintains a store at the corner of Avenida Veteranos and Paterno St. for the

display, storage of finished products, accepting and releasing orders of customers; while

the production area is located at Brgy. Cogon, San Jose, Tacloban City.

II. INDUSTRY ANALYSIS

An industry analysis evaluates the given industry and the companies involved in it.

As part of a corporate plan, it seeks to establish how a company can gain an advantage in
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an industry by understanding the industry’s history trends, companies, products, and

customer bases.

Therefore, in the foregoing industry analysis, the tailoring industry as earlier

described would be the center of this analysis.

Tacloban City is the center of trade and industries in the Eastern Visayas Region.

And as such, the tailoring industry has a rightful place in the economy. Customers from

different municipalities and cities of the Province of Leyte and Samar come to Tacloban

City for their tailoring needs. Throughout the year, uniforms for school, offices,

establishments, and for sports such as basketball uniforms are very such in demand. As

per counting, there are only about six (6) similar establishments that can cater to this

demand.

Kamiseta ni Julio has the distinct advantage over the other competitors because of

its long and wide experience in the industry. Moreover, it is the only tailoring shop with

sublimation machine. Sublimation printing is a printing method for transferring images

onto a substrate usually a cloth material. It involves the use of digital printer to produce

mirrored images on paper that has been specially coated with a transfer material.

The SWOT analysis would provide Kamiseta ni Julio with an opportunity to

examine the internal strengths and weaknesses the company must address. It also allows

them to examine the opportunities presented to Kamiseta ni Julio as well as potential

threats.
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SWOT ANALYSIS

STRENGTH

1. Kamiseta ni Julio is the leading customized printing and tailoring store in Tacloban

City.

2. It is known in the Provinces of Leyte and Samar.

3. It has been operating for a long time.

4. It is widely known in providing quality products.

5. The shop is accessible to customers.

WEAKNESS

1. It does not accept orders on-line.

2. It does not deliver finished products of customers.

OPPORTUNITIES

1. Changes in the buying trend.

2. Still growing market.

THREATS

1. Unstable economic condition.

2. New customized printing shops in the market.

3. Competitors
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III. MARKETING PLAN

The backbone of every business is the marketing plan. The market is the source

of revenues. Thus, market estimates are the basis for all other projections like volumes,

profitability, etc. Any miscalculation can prove disastrous to the entire project. The

market plan consists in the step-by-step analysis of several elements to answer the

question “Will all the intended customers buy what you expect them to buy?”

These elements are the product/service description, target market, demand and

supply, both historical and projected, and the marketing program. The marketing plan is

carried out to determine the extent to which the goods and services to be generated by the

business are needed or demanded and to design the appropriate marketing strategies that

will help ensure that the business outputs will reach and be accepted by the end users.

1. Product/Service Description

The available products are customized, sublimated, and embroidered Polo

Shirt, T-Shirt, Jerseys for all kinds of sports, and coffee mugs. Customers can choose

from existing designs for the shirts or can provide their own design. Tarpaulin

printing is likewise available

2. Target Market

The primary target market of the business are employees from the private

establishments/public offices and basketball players from schools and barangays, not

only in Taclobn City but other municipalities in the Province of Leyte and Samar. The

secondary target market are individual walk-in customers.

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3. Demand

The demand analysis involves the estimation of the needs for the particular

good or service to be generated by the business. It involves the identification and

analysis of demand determinants, which are factors that influence the level of demand

for a particular good or service, estimation of past and present demand, and projection

of future demand. The demand for sublimated T-shirts and jerseys for basketball are

high throughout the year. Basketball tournaments are ayear round experience whether

school or barangay tournaments. .

Tacloban City and its neighboring municipalities in the Province of Leyte

and Samar have experienced high demand of uniforms from schools and also for the

year round basketball tournaments in schools and barangays. For purposes of

computation, only the basketball jerseys, polo shirt, and T-Shirts are assumed in this

plan. This is concurred and confirmed by school officials and barangay officials.

a) Historical Demand

The historical demand was taken from the National Statistics Office. As

shown in Table 1 on the next page , the historical demand of the products gradually

increased.
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Table 1
HISTORICAL DEMAND

NO. OF
YEAR PRODUCT UNITS
2014 Basketball Jersey 1,167
Polo Shirt 830
T-Shirt 898
2015 Basketball Jersey 1,435
Polo Shirt 888
T-Shirt 970
2016 Basketball Jersey 1,607
Polo Shirt 968
T-Shirt 1,055
2017 Basketball Jersey 1,425
Polo Shirt 1,113
T-Shirt 1,150
2018 Basketball Jersey 1,596
Polo Shirt 1,209
T-Shirt 1,303

Table 1
HISTORICAL DEMAND

NO. OF
YEAR PRODUCT UNITS
2014 Basketball Jersey 1,167
Polo Shirt 830
T-Shirt 898
2015 Basketball Jersey 1,435
Polo Shirt 888
T-Shirt 970
2016 Basketball Jersey 1,607
Polo Shirt 968
T-Shirt 1,055
2017 Basketball Jersey 1,425
Polo Shirt 1,113
T-Shirt 1,150
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2018 Basketball Jersey 1,596

Polo Shirt 1,209
T-Shirt 1,303

Table 2
. PROJECTED DEMAND

NO. OF
YEAR PRODUCT UNITS
1 Basketball Jersey 1,703
Polo Shirt 1,304
T-Shirt 1,404
2 Basketball Jersey 1,811
Polo Shirt 1,399
T-Shirt 1,506
3 Basketball Jersey 1,918
Polo Shirt 1,493
T-Shirt 1,607
4 Basketball Jersey 2,025
Polo Shirt 1,588
T-Shirt 1,708
5 Basketball Jersey 2,132
Polo Shirt 1,683
T-Shirt 1,809

4. Supply
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Supply is what complements demand. The determination of supply is crucial in this

plan. This portion talks about the supply of Basketball Jerseys, Polo Shirts,

and T-Shirts in general for the next five (5) years. Supply projections are made to

meet the demand.

a) Historical Supply .

The Historical Supply of the products were gathered from the National

Statistics Office. The Historical Supply for the past five (5) years is illustrated

on the next page.:

Table 3
. HISTORICAL SUPPLY

NO. OF
YEAR PRODUCT UNITS
2014 Basketball Jersey 912
Polo Shirt 686
T-Shirt 749
2015 Basketball Jersey 960
Polo Shirt 780
T-Shirt 797
2016 Basketball Jersey 1,044
Polo Shirt 857
T-Shirt 830
2017 Basketball Jersey 1,065
Polo Shirt 902
T-Shirt 856
2018 Basketball Jersey 1,111
Polo Shirt 950
T-Shirt 921

b) Projected Supply
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Supply is what complements demand for supply tells the quantity of

Basketball Jersey, Polo Shirt, and T-Shirts which will be supplied at various

prices. The Projected Supply will be based on the Historical Supply. However, the

major factor that would lead to more supply is the manpower capacity. The

Projected Supply is shown on Table 4. The Arithmetic Straight Line Method

computation is shown in Annex 2.

Table 4
. PROJECTED SUPPLY

NO. OF
YEAR PRODUCT UNITS
1 Basketball Jersey 1,161
Polo Shirt 1,016
T-Shirt 964
2 Basketball Jersey 1,211
Polo Shirt 1,082
T-Shirt 1,007
3 Basketball Jersey 1,260
Polo Shirt 1,148
T-Shirt 1,050
4 Basketball Jersey 1,310
Polo Shirt 1,214
T-Shirt 1,093
5 Basketball Jersey 1,360
Polo Shirt 1,280
T-Shirt 1,136
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4. Demand – Supply Analysis

This portion of the plan focuses on the relationship between supply and demand

and its significance. The historical data may not be the single biggest factor in

determining actual demand. Supply will be determined by the actual output capacity.

The forecasts and projection of sales and market share is also a determining factor in

initiating the business. There is an obvious wide demand gap and supply gap as

presented on the next page.

.
Table 5
. DEMAND-SUPPLY ANALYSIS

DEMAND
PROJECTED PROJECTED & SUPPLY
YEAR PRODUCTS DEMAND SUPPLY GAP
1 Basketball Jersey 1,703 1,161 542
Polo Shirt 1,304 1,016 288
T-Shirt 1,404 964 440
2 Basketball Jersey 1,811 1,211 600
Polo Shirt 1,399 1,082 317
T-Shirt 1,506 1,007 499
3 Basketball Jersey 1,918 1,260 658
Polo Shirt 1,493 1,148 345
T-Shirt 1,607 1,050 557
4 Basketball Jersey 2,025 1,310 715
Polo Shirt 1,588 1,214 374
T-Shirt 1,708 1,093 615
5 Basketball Jersey 2,132 1,360 772
Polo Shirt 1,682 1,280 402
T-Shirt 1,809 1,136 673
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. From the first year up to the last year, the demand exceeds supply. Certain

threats are unavoidable and competitors are considered as threats. Knowing that such

fact exists, there is an opportunity to focus the marketing efforts towards capturing and

converting the stagnant demand into profitable market shares. This means being able to

anticipate what fellow competitors in the industry might do given their limitations.

Demand itself is a threat. As time goes by, there is great possibility for demand to

either increase or perish, When these happen, there must be a quick response. During

these instances, smart marketing decisions must be made in order to keep up with the

competition.

5. Market Share

The market share refers to the basic marketing idea of projected demand is

equal to the actual demand. Such notion rarely or if not does not actually exist in real

situations. In the event of such situation, marketing strategies such as increasing and

decreasing demand is applicable. Described on the next is a table showing the market

share of the business.

Table 6
. MARKET SHARE

PROJECTED PROJECTED MARKET

YEAR PRODUCT DEMAND PRODUCTION SHARE (%)
1 Basketball Jersey 1,703 1,170 68.70
Polo Shirt 1,304 1,000 76.69
T-Shirt 1,404 970 69.09
2 Basketball Jersey 1,811 1,287 71.07
Polo Shirt 1,399 1,100 78.63
T-Shirt 1,506 1,067 70.85
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3 Basketball Jersey 1,918 1,416 73.83

Polo Shirt 1,493 1,210 81.04
T-Shirt 1,607 1,174 73.06
4 Basketball Jersey 2,025 1,558 76.94
Polo Shirt 1,588 1,331 83.82
T-Shirt 1,708 1,291 75.59
5 Basketball Jersey 2,132 1,713 80.34
Polo Shirt 1,683 1,464 86.98
T-Shirt 1,809 1,420 78.50

The above table shows that the market share of Basketball Jersey, Polo

Shirt, and T-Shirt still has a market during the five-year projected period. This gives the

business 74.18% for Basketball Uniforms, 81.43% for Polo Shirts and 73.42% for

T-Shirt market share. However, the capacity to supply limits the ability to cater to

the entire demand

6. Competition

Kamiseta ni Julio has the edge over six (6) competitors in Tacloban City

since it has been existing for more than forty (40) years and has built up its

customers through the years. These are the following:

COMPETITOR
1. Ladenjoy Garments
2. Saito Graphics Enterprise
3. YOKS Printahan
4. Icore Graphics and Design
5. Transfer It
6. JIPPSI Enterprise
ADDRESS
Brgy. 51-A, Real-Arellano Sts., Tacloban City
147 Sto. Niño St., Brgy. 28, Tacloban City
168 Salazar St., Tacloban City
218 Salazar St., Brgy. 43-A, Tacloban City
National Highway, Marasbaras, Tacloban City
Pericohon-Real Sts., Brgy. 63-A, Tacloban City
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8. Marketing Strategy

Kamiseta ni Julio will adopt an aggressive and active stance in its marketing

approach. The following shall be adopted:

a) As a support system, the management will organize a marketing division within

its organizational structure to do the following:

b) Establish a systematic marketing system within the office by conducting market

study, development of market policies, and monitoring and control systems; and

c) Conduct a research study to develop a competitive and profitable marketing mix

and approach;

The four (4) P’s of marketing or marketing mix has to be considered in

preparing the marketing program. These are controllable variables that influences

the behavior of targeted end-users. The first P product or project description was

earlier described.

a) Pricing

The pricing determines the acceptance of the product by the market. The

prices of the Basketball Jersey, Polo Shirts, and T-Shirts are based on the

combination of cost-based pricing, which includes material cost, handling cost,

overhead cost, labor cost, demand-based pricing, and competition based pricing.

It should always be affordable.

The prices of the products are as follows:

1. Basketball Jersey Set P1,200

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2. Polo Shirt 850

3. T-Shirt 650

Kamiseta ni Julio pricing objectives are two-fold, cost and value based. The

pricing must remain reasonable and competitive. The company’s focus is to

maximize the sales through volume pricing. The pricing techniques include odd

pricing and bulk purchase by the customer. Its value proposition is to provide best

quality of clothing and customized products with a reasonable and competitive

pricing.

The prices of the products are a little bit higher in view of their quality and

exclusiveness associated with the brand. Management foresee the customers’

willingness to pay the prices of the products in view of the perceived value and

quality guarantee that comes with all the products.

b) Place

The store outlet is located at the heart of Tacloban City at the corner of

Avenida Veteranos and P. Paterno St. This is very accessible to customers since it is

along a busy National Road.

c) Promotion

Variety of promotion/advertisements will be undertaken such as tarpaulins

to be placed in areas near schools and along National Roads approved by the City

Government. Radio advertisements will be pursued and leaflets will likewise be

printed.
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An effective promotion and communication takes into consideration the

following:

 The decision as to what should be said, how, when, whose and when rests

on who the audience is;

 Can be classified as to personal channels including advocates, experts, social

 entities, or non-personal channels including newspapers, radio, television,

billboards, etc.

 The message should stimulate and impact on the needs; and

 The choice of communication should consider credibility, trustworthiness and

likeability.

Table 7
. PROMOTION AND ADVERTISEMENT

NO. OF UNIT
PARTICULARS UNITS UNIT COST AMOUNT
Radio 30 Spots P350 P 10,500
Tarpaulin 12 Units 450 5,400
Leaflets 5 Reams 650 3,250
TOTAL P 19,150

IV. PRODUCTION/OPERATIONAL PLAN

Production planning is the administrative process that takes place within a

manufacturing business and that involves making sure that sufficient raw materials, staff
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and other necessary items are procured and ready to create finished products according to

the schedule specified.

A production plan serves as a guide for the company’s production activities. It

establishes and sequence activities which must be carried out to achieve a production

target, so that all staff involved are aware of who needs to what, when, where and how.

 Product/Service Specification

The table below shows the product/service specification of Kamiseta ni Julio.

Table 8
. PRODCT/SERVICE SPECIFICATIION

PRODUCT SPECIFICATION
Basketball Jersey Customized Printing, Embroidery
Sublimated
Polo Shirt Customized Printing, Embroidery
Sublimated
T-Shirt Customized Printing, Embroidery
Sublimated

 Production Process (Process Flow)

 Basketball Uniform

Table 9 on Basketball Uniform on the next page shows the step by step

process of making fully sublimated basketball uniform.

Table 9
BASKETBALL UNIFORM

STEPS DESCRIPTION
Choose the design Choosing the design of basketball uniform such as jersey
background color, jersey fabric, style of jersey
Sublimation printing of After all the design is finished, it will be sent to the
the design production area for sublimation printing. The design is
printed on sublimation paper in a mirrored fashion. All
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parts that make up the uniforms are printed - front, back

of jersey; left and right side of the shorts.
Cutting of jersey fabrics Cutting of fabrics based on the pattern made for the
Transfer design of the jersey. The cut parts of the fabric are used
accordingly to the printed modelling. It is in the transfer
that the process of sublimation takes place, and for this a
a textile calendar is used. In it, the cut pieces are placed
on the prints, printed on the sublimation paper, one by
one, in order to ensure that no part of the fabric stays
outside the print area. As they pass through the thermal
cylinder of the calendar, the thermal transfer occurs
where the sublimation ink pigments change from the
solid state directly to the gaseous state, making the
transfer of the mirrored to the fabric. On the exit mat, the
cut fabrics leave already printed and can be collected
on the back of the calendar.
Preparation In the preparation phase, the pieces are separated and
sent to the sewing machines, where they are assembled.
Assembling The cut parts are assembled by sewing. That is when
the jersey shirts and shorts began to take shape

 Polo Shirt

Table 10 on the next page shows the production process involve in making

customized Polo Shirt.

Table 10
. POLO SHIRT PRODUCTION

STEPS DESCRIPRION
Placket making It is usually used as opening in necklines, sleeve
cuffs, waist bands of pants and shirts.
Placket matching with front Matching the placket to the other part.
Placket attaching with front Attaching the placket to the other part.
Placket top stitch Sew placket by top stitching
Placket tuck Closing the end part of the placket
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Matching (front and back part) Same design

Shoulder joint with shoulder top Joining the shoulder joint to shoulder tap
Shoulder top stitch Sew shoulder
Attach collar Attach collar to the neck
Collar back top stitch Sew collar back by top stitching
Neck piping Decorate the edges of the neck
Sleeve hem joint with sleeve Sew the folded edges of the neck
Sleeve joint with the body Joining the sleeve to body
Bottom hem Sew the bottom hem
Edging side seam Joining two pieces of fabric together face-to-face
by sewing through both pieces
Sleeve outside top stitch Sew sleeve from the outside
Bottom hole A slit or loop though which a button is passed
Bottom positioning Put or arrange buttons
Bottom attaching Attaching buttons to the front placket

 T-shirts

Table 11 on the next page shows the production process involve in making

customized T-Shirt.

Table 11
T-SHIRT PRODUCTION

STEPS DESCRIPTION
Making design In making the design for the customized t-shirts, the
customer can choose, instruct the layout artist for the
design of the t-shirt.
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Choosing T-shirt The customer will choose type of t-shirt fabrics and color.
Sublimation After the design of the t-shirt is finalized, it will be sent
printing to the production area for sublimation printing
Arrangement for
printing After choosing the type of fabric and color of t-shirt, the
arrangement for printing takes place. First the t-shirt will
be placed in the press machine so that the wrinkle and
moisture in t-shirt is removed and print the design
straight.
Transfer design to t-shirt First, pre-het press to 375' - 400'F temperature
Place the printed design on the t-shirt.
Press the sublimation paper for 2 to 3 minutes.
As the electric press machine is heating the sublimation
paper at the time, ink and garment react with each other.
When heated to high temperature, ink converts into gas
and pores of t-shirt is open, allowing the gas to enter. As
it removes heat, pores of t-shirt close up trapping the ink
inside of the item. So it gets the final design on the -shirt.

• Facilities and Equipment (Include Plant Layout)

 Machineries and Equipment

Table 12 on the next page shows the machineries and equipment used in the

operation and production of the Kamiseta ni Julio.

Table 12
. MACHINERIES AND EQUIPMENT

PARTICULARS DESCRIPTION
Machineries
Sewing Machines Used to fabricate clothing products.
Lock Stitch Sewing Machine The lock stitch uses 2 threads-upper and lower. It
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is so named because upper and lower, lock or

Button Hole Sewing Machine
Cutting Machine
Sublimation Machine
Embroidery Machine
Pressing Machine
Computer Set
entwine together in a hole in the fabric which they
pass through.
Used in sewing the raw edges of button hole.
Used in cutting the fabrics into different shapes.
A computerized printing machine which uses heat
to transfer dye onto fabric.
This creates pattern in fabrics.
Used in the final stage of production process
before releasing to customers.
Used in creating customized design of products,

Equipment
Shelves and Racks Used for displaying finished products and also for
keeping raw materials.
Hangers Used in displaying products.
Mannequins Attractive way of displaying products.

 Store Layout

Figure 1 on the next page shows the facility layout of the outlet store of

Kamiseta ni Julio. The outlet store serves as the receiving of customers order and

distribution of product to the customer. The outlet store also serves as the showroom for

the sample designs of products.

Figure 1
. STORE LAYOUT
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 Production Management

Production management is responsible for the operations, planning and control

of industrial processes to ensure smooth at the required level. Techniques of production

management are employed in service as well as in manufacturing industries. It is a

similar in level and scope to other specialties such as marketing, human resource and

financial management. .

In manufacturing operations, production management include responsibility for

product and process design, planning and control issues involving capacity and quality,

and organization and supervision of the work force.

• Location
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The outlet store of Kamiseta ni Julio is located at Brgy. 49, Corner Avenida

Veteranos & Paterno Sts. Tacloban City, while the production area is located at Brgy.

Cogon, San Jose, Tacloban City.

V. ORGANIZATIONAL/MANAGEMENT PLAN

1. Basic Considerations

The management plan is concerned with how the project would be executed

and operated by whom, in order to establish responsibility and accountability. The

establishment of an efficient organization and management structure is one of the most

important decisions that a project proponent must consider. The organization and

management indicate which entities are responsible for various aspects of project

execution and operation and if these have adequate powers, staffing, equipment and

finance to undertake various functions.

2. Type of Business Organization

The Kamiseta ni Julio is a family business, registered as sole proprietorship in

the name of Julio S. Lozada. His wife, Bernardita and his son, Keith assist him, the

former taking care of the financial and personnel aspect of the business, while the

latter as graphic designer. Mr. Lozada supervises the workers at the production area.

The shop already established a name in the industry not only here in Tacloban but also

in nearby towns and province which are Leyte and Samar, including Biliran.

Mr. Julio Lozada, Sole Proprietor and Production Manager

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Mr. Julio Lozada, the founder Kamiseta ni Julio, has been in the industry for forty-four

(44) years. He started his career when he was 19 years old as a tailor. Aside from being

the sole proprietor, he also acts as the production manager of Kamiseta ni Julio. He is

responsible in overseeing the production process, and drawing up production schedule.

He ensures that the production is cost effective and also monitors product quality .

Mrs. Bernardita Lozada, Administrative and Finance Manager

Mrs. Lozada acts as the Administrative and Finance Manager. She’s primarily

responsible in managing the personnel and business finances, including financial

planning,, record keeping, and financial reporting.

Mr. Keith Lozada, Store Manager and Chief Designer

Mr. Kieth Lozada act as the store manager and graphic designer and responsible in

leading and overseeing the work of employees. He is also responsible for planning and

maintaining work systems, procedures, and policies of the business. He oversees the

designs made by layout artists. He also plans and illustrates concept by designing rough

layout of art, size, and styles.

3. Organizational Structure

The organizational structure shows the framework of the formal

relationship of the members of the organization. The purpose of the organizational

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structure is to assist in regulating and directing the efforts put forth in the

organization so that they are coordinated and consistent with the firm’s goal.

Figure 2
. ORGANIZATIONAL CHART

Owner/
. Production Manager

Admin. & Finance Cutter Store Manager/

. Manager Head – Designers

Cashier Sewers Designer

Accountant Printer Operator Layout Artist

Bookkeeper Sales Clerk

4. Position and Job Description

Position only provides general information about a particular position, while job

description includes the working conditions, scope, purpose, duties and responsibilities

of a job.

POSITION JOB DESCRIPTION

Owner/Production
Manager * Develops high quality business strategies and plans ensuring their
alignment with short term and long term objectives.
* Leads and motivates subordinates to advance employee engagement
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to develop a high performing managerial team.

* Oversees all operations and business activities to ensure their produce
the desired results and are consistent with the overall strategy and
mission.
* Plans, organize production schedules, assessing project, resource
requirements, estimates, negotiates and agreed budgets and timescale
with clients, managers, ensures that health, safety regulations are met
determines quality control standards; oversees production process,
re-negotiates timescales or schedules as necessary; selects, orders and
Purchases materials; organizes the repair and routine maintenance
of production equipment; liaising with buyers and marketing sales
Clerks; supervises the work staff, and organizes relevant trainings.
Administrative and
Finance Manager * Plans and coordinates administrative procedures and systems and
devises ways to streamline processes, recruiting and training
Personnel; allocates responsibilities; assesses staff performance and
provides coaching, and guidance to ensure maximum efficiency.
* Maintains and enhances the organizations human resources by
planning, implementing, and evaluating employee relations and human
Resource policies, programs and practices.
* Typical duties includes reviewing financial reports, monitoring accounts,
and preparing activity reports and financial forecasts.
* Financial manager also investigates ways to improve profitability and
analyzes markets for business opportunities, such as expansion, mergers
or acquisition.
* Additional duties may include
- Overseeing the flow of cash and financial instruments.
- Planning and directing the activities of workers in departments.
- Preparing reports as required by law, regulations or company policies.
- Ensuring compliance with applicable laws and procedures.
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Store Manager/Head-Designers Supervises store employees such as cashier, sales clerks.

Cashier Receives partial or full payment of products and issues

corresponding receipts.
Accountant Provides financial information to management by analyzing
accounting data and prepares reports.
Bookkeeper Maintains records of financial transactions by establishing
accounts, posting transactions, and ensure legal requirements.
Cutter Adjusts guides and steps to control depths and widths of cuts,
shapes, trims textile materials using scissors and other hand tools
or portable power tools.
Sewer Sews together cut textile materials.
Printer Operator Operates the sublimation printer machine.
Designer Prepares designs as envisioned by customers. Designs, original
pieces, including illustrations and info graphics.
Lay-out Artist Develops, structures and lay-outs various elements per
customers' expectations.
Sales Clerk Handles cash and credit sales, process, price, shelves incoming
products, assists in cleaning and maintenance of the store, sells
sells retail products, goods and services to customers and creates
solution and ensure smooth sales process.

4. Project Timetable

Figure 3 on the next page refers to the scheduling of activities from the project

planning stage to the start of operation after release of the loan.

Figure 3
. PROJECT TIMETABLE
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ACTIVITIES Pre-Op Pre-Op Pre-Op 1st Year 1st Year

Corporate Plan Prep. 1 Mo.
Sourcing Funds 2 Mos.
Building Renovation 1 Mo.
Purchase of Machineries
and Materials 1 Mo.
3 Days
After
Normal Operation Purchases

The Corporate Plan will be prepared within a month and the sourcing of funds

will take two (2) months. The building renovation is assumed to be finished within a

month, while also a month is assumed for the purchase of additional machineries and

materials. It is expected that normal operation will take place three (3) days after the

purchases.

VI. FINANCIAL PLAN

The financial plan is a very important part for the reason that projects are

considered viable only when it is expected to be profitable to meet short term obligations,

to be liquid and to remain during adversities, to grow in its ability to finance its operations

mostly from the net worth sources rather than credit applications, and to be able to

service its financing charges

1. Total Project Cost

Schedule 1
TOTAL PROJECT COST
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DESCRIPTION EQUITY LOAN TOTAL

Capital Outlay Expense
Building P P 100,000 P 100,000
Furniture and Fixture 180,000 20,000 200,000
Machineries and Equipment 780,000 720,000 1,500,000
Sub-Total P 960,000 P 840,000 P1,800,000
Working Capital (2 Mos.)
Raw Materials P 192,300 P 100,000 P 292,300
Salaries & Wages 63,525 60,000 123,525
Lease 40,000 40,000
Promotion and Advertisement 19,150 19,150
Utilities Expense 30,200 30,200
Permit and Expenses 16,000 16,000
Repairs and Maintenance 36,000 36,000
Sub-Total P 397,175 P 160,000 P 557,175
TOTAL PROJECT COST P1,357,175 P1,000,000 P2,357,175

2. Source of Fund

The sources of fund will be P1,357,175 from its internal funds and

P1,000,000 loan from a commercial bank.

3. Projected Sales

The projected sales are based on the production capacity of the project. This is

shown on the next page.

Schedule 2
. PROJECTED SALES

PROJECTED UNIT
 29

NO. OF
YEAR PRODUCT UNITS PRICE AMOUNT
Basketball Jersey
1 Set 1,170 1,200 1,404,000
Polo Shirt 1,000 850 850,000
T-Shirt 970 650 630,500
Total 2,884,500
Basketball Jersey
2 Set 1,287 1,320 1,698,840
Polo Shirt 1,100 935 1,028,500
T-shirt 1,067 715 762,905
Total 3,490,245
Basketball Jersey
3 Set 1,416 1,452 2,056,032
Polo Shirt 1,210 1,028 1,243,880
T-Shirt 1,174 786 922,764
Total 4,222,676
Basketball Jersey
4 Set 1,557 1,597 2,486,529
Polo Shirt 1,331 1,131 1,505,361
T-Shirt 1,291 864 1,115,424
Total 5,107,314
Basketball Jersey
5 Set 1,713 1,756 3,008,028
Polo Shirt 1,464 1,244 1,821,216
T-Shirt 1,420 950 1,766,480
Total 6,595,724

Assumption:

The projected sales based on the production capacity is expected to increase by 10%

per annum during the projected period to account for an increase in production and in

price.

4. Raw Materials

The raw materials is assumed to be 30% of Sales or P865,350 on the first year

of operation.
 30

Year 1 Year 2 Year 3 Year 4 Year 5

P865,350 P951,885 P1,047,074 P1,151,778 P1,266,956

Assumption:

Raw materials is assumed to increase by 10% per annum during the projected period

period relative to sales.

5. Salaries and Wages

Salaries and Wages is P1,095,120 on the first year of operation.

. Schedule 3
. SALARIES AND WAGES

NO. OF MONTHLY ANNUAL

PERSONNEL SALARY PERSONNEL SALARY SALARY
Production Manager/Cutter P15,000 1 P 15,000 P 180,000
Admin.& Finance Manager 12,000 1 12,000 144,000
Store Manager/Designer/
Layout Artist 12,000 1 12,000 144,000
Sewer 8,840 2 17,680 212,160
Printer Operator 9,100 1 9,100 109,200
Cashier/Bookkeeper 9,360 1 9,360 112,320
Sales Clerk 8,060 2 16,120 193,440
TOTAL 12 P 91,260 P1,095,120

. Year 1 Year 2 Year 3 Year 4 Year 5

P1,095,120 P1,149,876 P1,207,370 P1,267,738 P1,331,124

Assumption:

Salaries and Wages are assumed to increase by 5% per annum during the projected
 31

period.

6. Depreciation

Straight Line Method is used.

. Schedule 4
. DEPRECIATION

DEPRECIABLE DEPRECIATION
DESCRIPTION COST LIFE RATE PER YEAR
Building P 100,000 20 10 P 5,000
Furniture & Fixture 200,000 15 6.66 13,333
Machinery & Equipt. 1,500,000 20 5 75,000
TOTAL P1,800,000 P93,333

7. 13th Month Pay

P91,260 on the first year of operation and to increase by 5% per annum

during the projected period.

Year 1 Year 2 Year 3 Year 4 Year 5

P91,260 P95,823 P100,614 P105,645 P110,927

8. SSS

Eight percent (8%) of salaries and wages or P87,610 on the first year of

operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P87,610 P91,990 P96,590 P101,419 P106,490

Assumption:

To increase by 5% per annum during the projected period.

 32

9. Philhealth

Four percent (4%) of salaries and wages or P43,805 on the first year of

operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P43,805 P45,995 P48,295 P50,710 P53,245

Assumption:

To increase by 5% per annum during the projected period.

10. Pag-ibig

Two percent (2%) of salaries and wages or P21,902 on the first year of

operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P21,902 P22,997 P24,147 P25,354 P26,622

Assumption:

To increase by 5% per annum during the projected period.

11. Repairs and Maintenance

Two per cent (2%) of P1,800,000 of the cost of building and machinery and

equipment or P36,000 on the first year of operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P36,000 P39,600 P43,560 P47,916 P52,708

 33

Assumption:

To increase by 10% per annum during the projected period.

12. Office Supplies

P500 per month or P6,000 on the first year of operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P6,000 P6,600 P7,260 P7,986 P8,785

Assumption:

To increase by 10% per annum during the projected period.

13. Store Lease

The store lease is P15,000 per month or P180,000 on the first year of operation,

Year 1 Year 2 Year 3 Year 4 Year 5

P180,000 P189,000 P198,450 P208,373 P218,792

Assumption:

The store lease is assumed to increase by 5% per annum during the projected period.

14. Utilities .

There are two (2) work areas – the store and the production area. The electric

and water expenses in both areas are shown below.

 34

Schedule 5
UTILITIES

UTILITIES MONTHLY COST ANNUAL COST

Electricity
Store 2,500 30,000
Production Area 4,000 48,000
Sub-Total 6,500 78,000
Water
Store 600 7,200
Production Area 1,200 14,400
Sub-Total 1,800 21,600
TOTAL 8,300 69,600

Year 1 Year 2 Year 3 Year 4 Year 5

P69,600 P73,080 P76,734 P80,571 P84,600

Assumption:

Utilities is expected to increase by 5% per annum during the projected period.

15. Promotion and Advertisement

Promotion Advertisement is assumed at P19,150 on the first year of operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P19,150 P20,108 P21,113 P22,169 P23,277

Assumption:

This account is expected to increase by 5% per annum during the projected period.

16. Communications

P700.00 per month or P8,400 on the first year of operation.

 35

Year 1 Year 2 Year 3 Year 4 Year 5

P8,400 P9,240 P10,164 P11,180 P12,298

Assumption:

To increase by 10% per annum during the projected period.

17. Taxes and Licenses

This is assumed to be P16,000 on the first year of operation

Year 1 Year 2 Year 3 Year 4 Year 5

P16,000 P16,800 P17,640 P18,522 P19,448

Assumption:

To increase by 5% per annum during the projected period.

18. Miscellaneous

This is assumed at P10,000 on the first year of operation.

Year 1 Year 2 Year 3 Year 4 Year 5

P10,000 P11,000 P12,100 P13,310 P14.641

Assumption:

To increase by 10% per annum during the projected period.

19. Loan Amortization

 36

Amount of Loan: P1,000,000

Interest Rate: 12% per annum

Term: 5 years with one year grace period

n
P(1 + r) . r
A = -----------------
n
(1 + r) - 1
5
1,000,000 ( 1 + .12) .12
= ------------------------------
1
(1 + .12) - 1

1,000,000 ( 1.762341) .12

= -------------------------------
1.762341 – 1

211,480.92
= ----------------------------
.762341

= P277,410

Schedule 6
. LOAN AMORTIZATION

PRINCIPAL PRINCIPAL
YEAR INTEREST PAYMENT AMORTIZATION BALANCE
P1,000,000
GP P120,000
1 120,000 P157,410 P277,410 P 842,590
2 101,111 176,299 277,410 666,291
3 79,955 197,455 277,410 468,836
4 56,260 221,150 277,410 247,686
5 29,722 247,686 277,408

20. Provision for Income Tax – 35% of Net Income Before Income Tax is assumed.
 37

FINANCIAL STATEMENTS

The projected financial statement is a summary of various component projections

of sales and expenses for a budget period. They indicate the expected net income for the

period. These are important tools in determining the overall performance of a business.

They include the Income Statement, Cash flow, and Balance Sheet.

The Income Statement shows the profit performance and demonstrates capability

to service debt for banks or the potential for growth in returns for capital.

The Cash Flow is a critical forecast since it reflects the viability rather than

profitability.

The Balance Sheet shows the assets, liabilities and equity at a particular point in

time. Basically, it is a snap shot of the financial position.

 38

PROJECTED INCOME STATEMENT

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Sales P2,884,500 P3,490,245 P4,222,676 P5,107,314 P6,178,244
LESS: Cost of Goods Sold
Raw Materials P 865,350 P 951,885 P1,047,074 P1,151,778 P1,266,956
Salaries & Wages 1,095,120 1,149,876 1,207,370 1,267,738 1,331,124
Depreciation 93,333 93,333 93,333 93,333 93,333
Total Cost of Goods Sold P2,053,803 P2,195,094 P2,347,777 P2,512,849 P2,691,413
Gross Profit P 830,697 P1,295,151 P1,874,899 P2,594,465 P3,486,831
LESS: Operating Expenses
13th Month Pay P 91,260 P 95,823 P 100,614 P 105,645 P 110,927
SSS 87,610 91,990 96,590 101,419 106,490
Philhealth 43,805 45,995 48,295 50,710 53,245
Pag-ibig 21,902 22,997 24,147 25,354 26,622
Repairs & Maintenance 36,000 39,600 43,560 47,916 52,708
Office Supplies 6,000 6,600 7,260 7,986 8,785
Store Lease 180,000 189,000 198,450 208,373 218,792
Utilities 69,600 73,080 76,734 80,571 84,600
Promotions & Advertisements 19,150 20,108 21,113 22,169 23,277
Communications 8,400 9,240 10,164 11,180 12,298
Taxes & Licenses 16,000 16,800 17,640 18,522 19,448
Miscellaneous 10,000 11,000 12,100 13,310 14,641
Total Operating Expenses P 589,727 P 622,233 P 656,667 P 693,155 P 731,833
Net Operating Income P 240,970 P 672,918 P1,218,232 P1,901,310 P2,754,998
LESS: Interest Expense 120,000 120,000 101,111 79,955 56,260
Net Income Before Income Tax P 120,970 P 552,918 P1,117,121 P1,821,355 P2,698,738
LESS: Provision for Income Tax 42,340 193,521 398,397 645,768 1,099,965
Net Income P 78,630 P 359,397 P 718,724 P1,175,587 P1,598,773
 39

PROJECTED CASH FLOW

PRE-OP. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Cash Inflow
Cash Investment P1,357,175 P - P - P - P - P -
Loan 1,000,000 - - - - -
Sales 2,884,500 3,490,245 4,222,676 5,107,314 6,178,244
Total Cash Inflow P2,357,175 P2,884,500 P3,490,245 P4,222,676 P5,107,314 P6,178,244
Cash Outflow
Building P 100,000 P - P - P - P - P -
Furniture & Fixture 200,000 - - - - -
Machinery & Equipt. 1,500,000 - - - - -
Cost of Goods Sold - 1,960,470 2,101,761 2,254,444 2,419,516 2,598,080
Operating Expenses - 589,727 622,233 656,667 693,155 731,833
Interest Expense - 120,000 120,000 101,111 79,955 56,260
Principal Payment - - 157,410 176,299 197,455 221,150
Income Tax Payment - - 42,340 193,521 398,397 645,768
Total Cash Inflow P1,800,000 P2,670,197 P3,043,744 P3,382,042 P3,788,478 P4,253,091
Net Cash Inflow/Outflow P 557,175 P 214,303 P 446,501 P 840,634 P1,318,836 P1,925,153
ADD Beg. Cash Balance - 557,175 771,478 1,217,979 2,058,613 3,377,449
Ending Cash Balance P 557,175 P 771,478 P1,217,979 P2,058,613 P3,377,449 P5,302,602

PROJECTED BALANCE SHEET

 40

PRE-OP YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ASSETS
Current Assets
Cash P 557,175 P 771,478 P1,217,979 P2,058,613 P3,377,449 P5,302,602
Non-Current Assets
Building P 100,000 P 100,000 P 100,000 P 100,000 P 100,000 P 100,000
Furniture & Fixture 200,000 200,000 200,000 200,000 200,000 200,000
Machinery & Equipment 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Total P1,800,000 P1,800,000 P1,800,000 P1,800,000 P1,800,000 P1,800,000
LESS: Accumulated Depreciation 93,333 186,666 279,999 373,332 466,665
Total Non-Current Assets P1,800,000 P1,706,667 P1,613,334 P1,520,001 P1,426,668 P1,333,335
TOTAL ASSETS P2,357,175 P2,478,145 P2,831,313 P3,578,614 P4,804,117 P6,635,937

LIABILITIES & OWNER'S EQUITY

Current Liabilities
Loans Payable P - P157,410 P176,299 P197,455 P221,150 P247,686
Income Tax Payable - 42,340 193,521 398,397 645,768 1,099,965
Total Current Liabilities - 199,750 369,820 595,852 866,918 1,347,651
Term Loan 1,000,000 842,590 666,291 468,836 247,686 -
Total Liabilities 1,000,000 P1,042,340 P1,036,111 P1,064,688 P1,114,604 P1,347,651
Owner's Equity
Capital P1,357,175 P1,357,175 P1,435,805 P1,795,202 P2,513,926 P3,689,513
Retained Earnings 78,630 359,397 718,724 1,175,587 1,598,773
Total Owner's Equity P1,357,175 P1,435,805 P1,795,202 P2,513,926 P3,689,513 P5,288,286
TOTAL LIABILITIES &
OWNER'S EQUITY P2,357,175 P2,478,145 P2,831,313 P3,578,614 P4,804,117 P6,635,937

FINANCIAL ANALYSES

1. Test of Liquidity
 41

Average Current Assets

Average Current Ratio = ------------------------------------
Average Current Liabilities

2,545.624
= -------------
675,998

= 3.77:1

. The project is liquid since it has the ability to meet short term obligations and

. remain solvent in the event of adversities. For every P1 obligation, the project has

. P3.77 for payment.

2. Test of Profitability

Average Net Income After Tax

Average Net Profit Margin = -----------------------------------------
Average Sales

786,222
= ----------------
3,140,947

= 25.03%

There is an average net profit after tax of 25.07% for every amount of sales

3. Test of Capital Investment

Average Net Income After Tax

Return on Investment = -----------------------------------------
Total Project Cost

786,222
= ---------------
 42

2,357,175

= 33.35%

The project will have an ROI of 33.35% based on the five (5) year projected period.

Total Project Cost

. Cash Payback Period = ------------------------------------------
. Average Net Income After Tax

2,357,175
. = ---------------
. 786,222

= 3 years

The total capitalization will be recovered in three (3) years

VII. CONCLUSION

In terms of marketing plan, Kamiseta ni Julio still needs to advertise its products

.on the radio and likewise print tarpaulins to be installed in strategic locations in

Tacloban City in order to further expand its market. For the past years, it has never

advertised its products but through “word of mouth” from satisfied customers due to

quality products, it has somewhat penetrated other municipalities throughout the region.
 43

The management has made a good account of its business in view of its business

acumen. The employees and workers are properly supervised and camaraderie among

them are visibly present. The management and employees relationship is very much

commendable.

On the financial aspects, the business shows a positive response. The income it

provides is able to cover necessary expenses of the business.

Other idea and thoughts introduced in this corporate plan are for current situation

of “Kamiseta ni Julio”. In the future it is important to evaluate the situation of the

company again because the environment is changing constantly and different actions may

be needed in order to expand the company, to make the brand stronger and naturally to

stay competitive in the market.

After evaluating four aspects in the functional plan, the proposed project is said to

be feasible.
 44

ANNEX 1

ARITHMETIC STRAIGHT LINE METHOD

Computation of Projected Demand

Basketball Uniforms

The Yi – 1 value for each year are computed below:

Yn –Yc 1,596 – 1,167
1) a = --------- = -----------------
. N–1 5-1
. 429
. = ---------
. 4
. .
. = 107.25
2) Yi – 1 = 1,167 for the year 2014 since this is the observed value for the past year. To derive
the Y1 – 1 value for the immediate following year, compute f or the current Yc value.
Yc (2015) = a + Yi – 1
. = 107.25 + 1,167
. = 1,274.25
Yc (2016) = a + Yi = 1
. = 107.25 + 1,274.25
. = 1,381.50
Yc (2017) = a + Yi – 1
. = 107.25 + 1,381.50
. = 1,488.75
Yc (2018) = a + Yi – 1
. = 107.25 + 1,48.75
. = 1,596
Historical Value
YEAR Y a Yi – 1 Yc
2014 1,167 1,167
2015 1,435 107.25 1,167 1,274.25
2016 1,607 107.25 1,274.25 1,381.50
2017 1,423 107.25 1,381.50 1,488.75
2018 1,596 107.25 1,488.75 1,596
 45

Projected Values
YEAR a Yi - 1 Yc
. 1 107.25 1,596 1,703.25
. 2 107.25 1,703.25 1,810.50
. 3 107.25 1,810.50 1,917.75
. 4 107.25 1,917.75 2,025
. 5 107.25 2,025 2,132.25

Polo Shirt
The Yi – 1 value for each year are computed below:
Yn –Yc 1,209 – 830
1) a = --------- = -----------------
. N–1 5-1
. 379
. = ---------
. 4
. .
. = 94.75
2) Yi – 1 = 830 for the year 2014 since this is the observed value for the past year. To derive
the Y1 – 1 value for the immediate following year, compute f or the current Yc value.
Yc (2015) = a + Yi – 1
. = 94.75 + 830
. = 924.75
Yc (2016) = a + Yi = 1
. = 94.75 + 924.75
. = 1,944.25
Yc (2017) = a + Yi – 1
. = 94.75 + 1,944.25
. = 2,039
Yc (2018) = a + Yi – 1
. = 94.75 + 2,039 .
= 2,133.75
 46

Historical Value
YEAR Y a Yi – 1 Yc
2014 830 830
2015 888 94.75 830 924.75
2016 968 94.75 924.75 1,019.50
2017 1,113 94.75 1,019.50 1,114.25
2018 1,209 94.75 1,114.25 1,209
Projected Values
YEAR a Yi - 1 Yc
. 1 94.75 1,209 1,303.75
. 2 94.75 1,303.75 1,398.50
. 3 94.75 1,398.50 1,493.25
. 4 94.75 1,493.25 1,588
. 5 94.75 1,588 1,682.75

T-Shirt
The Yi – 1 value for each year are computed below:
Yn –Yc 1,303 – 898
1) a = --------- = -----------------
. N–1 5-1
. 405
. = ---------
. 4
. .
. = 101.25
2) Yi – 1 = 898 for the year 2014 since this is the observed value for the past year. To derive
the Y1 – 1 value for the immediate following year, compute f or the current Yc value.
Yc (2015) = a + Yi – 1
. = 101.25 + 898
. = 999.25
Yc (2016) = a + Yi = 1
. = 101.25 + 999.25
. = 1,100.50
Yc (2017) = a + Yi – 1
. = 101.25 + 1,100.50
. = 1,201.75
 47

Yc (2018) = a + Yi – 1
. = 101.25 + 1,201.75
. = 1,303

Historical Value
YEAR Y a Yi – 1 Yc
2014 898 898
2015 970 101.25 898 999.25
2016 1,055 101.25 999.25 1,100.50
2017 1,150 101.25 1,100.50 1,201.75
2018 1,300 101.25 1,201.75 1,303
Projected Values
YEAR a Yi - 1 Yc
. 1 101.25 1,303 1,404.25
. 2 101.25 1,404.25 1,505.50
. 3 101.25 1,505.50 1,606.50
. 4 101.25 1,606.75 1,708
. 5 101.25 1,708 1,809.25
 48

. ANNEX 2

ARITHMETIC STRAIGHT LINE METHOD

Computation of Projected Supply

Basketball Uniforms

The Yi – 1 value for each year are computed below:

Yn –Yc 1,111 – 912
1) a = --------- = -----------------
. N–1 5-1
. 199
. = ---------
. 4
. .
. = 49.75
2) Yi – 1 = 912 for the year 2014 since this is the observed value for the past year. To derive
the Y1 – 1 value for the immediate following year, compute f or the current Yc value.
Yc (2015) = a + Yi – 1
. = 49.75 + 912
. = 961.75
Yc (2016) = a + Yi = 1
. = 49.75 + 961.75
. = 1,011.50
Yc (2017) = a + Yi – 1
. = 49.75 + 1,011.50
. = 1,061.25
Yc (2018) = a + Yi – 1
. = 49.75 + 1,061.25
. = 1,111
Historical Value
YEAR Y a Yi – 1 Yc
2014 912 912
2015 960 49.75 912 961.75
2016 1,044 49.75 961.75 1,011.50
2017 1,065 49.75 1,011.50 1,061.25
2018 1,011 49.75 1,061.25 1,111
 49

Projected Values
YEAR a Yi - 1 Yc
. 1 49.75 1,111 1,160.75
. 2 49.75 1,160.75 1,210.50
. 3 49.75 1,210.50 1,260.25
. 4 49.75 1,260.25 1,310
. 5 49.75 1,310 1,359.75

Polo Shirt
The Yi – 1 value for each year are computed below:
Yn –Yc 950 - 686
1) a = --------- = -----------------
. N–1 5-1
. 264
. = ---------
. 4
. .
. = 66
2) Yi – 1 = 686 for the year 2014 since this is the observed value for the past year. To derive
the Y1 – 1 value for the immediate following year, compute f or the current Yc value.
Yc (2015) = a + Yi – 1
. = 66 + 686
. = 752
Yc (2016) = a + Yi = 1
. = 66 + 752 .
= 818
Yc (2017) = a + Yi – 1
. = 66 + 818
. = 884
Yc (2018) = a + Yi – 1
. = 66 + 884 .
= 950
 50

Historical Value
YEAR Y a Yi – 1 Yc
2014 686 686
2015 780 66 686 752
2016 857 66 752 818
2017 902 66 818 884
2018 950 66 884 950
Projected Values
YEAR a Yi - 1 Yc
. 1 66 959 1,016
. 2 66 1,016 1,082
. 3 66 1,082 1,148
. 4 66 1,148 1,214
. 5 66 1,214 1,280

T-Shirt
The Yi – 1 value for each year are computed below:
Yn –Yc 921 – 749
1) a = --------- = -----------------
. N–1 5-1
. 172
. = ---------
. 4
. .
. = 43
2) Yi – 1 = 749 for the year 2014 since this is the observed value for the past year. To derive
the Y1 – 1 value for the immediate following year, compute f or the current Yc value.
Yc (2015) = a + Yi – 1
. = 43 + 749
. = 792
Yc (2016) = a + Yi = 1
. = 43 + 792 .
= 835
 51

Yc (2017) = a + Yi – 1
. = 43 + 835
. = 878
Yc (2018) = a + Yi – 1
. = 43 + 818 .
= 921

Historical Value
YEAR Y a Yi – 1 Yc
2014 749 749
2015 797 43 749 792
2016 830 43 792 835
2017 856 43 835 878
2018 921 43 878 921
Projected Values
YEAR a Yi - 1 Yc
. 1 43 921 964
. 2 43 964 1,007
. 3 43 1,007 1,050
. 4 43 1,050 1,093
. 5 43 1,093 1,136