1

PRODUCT RATIONALE
Yacon is a large perennial plant that is mainly grown and cultivated for its

tuberous roots. The scientific name of Yacon is Smallanthussonchifolius.It has been a

traditionally grown vegetable for thousands of years and has a wide variety of uses. In the

Philippines, itwas introduced in Nueva Vizcaya and Baguio City in the early 2000 by a

Japanese businessman. This eventually started the spread of Yacon production in

Northern Philippines. In Luzon, the plantation of Yacon can be found in La Trinidad,

Benguet. Since Yacon’s introduction in the country, several researches supported by

DA-BAR, have been conducted by the National Research Council of the Philippines and

the Benguet State University (BSU) in La Trinidad town to further unravel its

potential. (Fernandez, 2006).

The Philippines is known as tropical country famous for its summer heat but due

to global warming, the country experience too much heat. People are irritated.Owing to

the same, there are a lot of people suffering from hypertension.Related to this, it is

reported thatheart disease stroke cancer and diabetes accounted of 65% of all deaths with

a mention of hypertension in and 54% in 2013 overall the reports show that one out of six

hypertension related deaths were due to high blood

pressure.http://time.com/3758758/high-blood-pressure-related-deaths-are-way-up-cdc/

It is an opportunity to start a business that will cater to this kind of weather and

health problems. That’s why the proponents came up with an ice cream product made of

yacon that will help the community with its extreme benefits for the health of the

population. It is an ice cream that can give benefits and lift up the burden and stress of the
 2

victims as it can also lessen the blood pressure of people suffering from hypertension.

People love ice cream either summer or rainy days.And no matter how people get old,

they will still love ice cream. It is considered a part of the lifestyle and traditions of

people. This product is worthwhile because yacon is of benefits to those who needs low

sugar diets and also yacon roots product have a probiotic action. The proponents’ target

market are those people suffering from heat stroke and hypertension.

Statement of the Problem

This feasibility study aimed to determine the viability of selling Feacon Ice cream at

Burgos Street, Dagupan City in terms of:

a.) Marketing aspect

b.) Organization and Management aspect

c.) Technical aspect

d.) Financial aspect

e.) Socio-economic aspect?

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 Significance of the Study

PHINMA UPang. The University will also be benefited with this study by

gaining popularity once the product becomes well-known.

Faculty. This study will also benefit the teachers by the benefits that they will get

from Feacon Ice Cream.

Students. The proposed study is beneficial the CMA student whose taking

research study about business. This will give them an idea & reference to make a

business research and process.

The Future Researchers. The research study shall give those benefits and

advantages for their future research paper.

The Farmers. This study will encourage them to increase the production of

yacon. It will give them a steady stream of business.

 4

Definition of Terms

Diabetes. It is a disease in which the body’s ability to produce or respond to the hormone

insulin is impaired, resulting in abnormal metabolism of carbohydrates and elevated

levels of glucose in the blood and urine.

Feacon. It is the trade name of the proposed business.

Hypertension. Also known as high blood pressure (HBP) is a long-term medical

condition in which the blood pressure in the arteries is persistently elevated. 

Probiotic. denoting a substance that stimulates the growth of microorganisms, especially

those with beneficial properties.

Proponent. a person who advocates a theory, proposal, or project.

Quantification. the expression or measurement of the quantity of something.

Smallanthussonchifolius. Is the scientific name of Yacon.

Variety. It refers toa number or range of things of the same general class that are different

or distinct in character or quality.

Yacon. The main ingredient in making Feacon Ice cream

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MARKETING ASPECT

This chapter discusses the strategies and aspects to consider in putting up a

business. Knowing the customers, considering the products and satisfaction given to the

valued customers and analyzing the strategies needed to reach the desired target market

are imperative. These are all needed to achieve the goals and objectives of the business.

Feacon

The name “Feacon” of the product is the same with the tradename of the business. The

word “Feacon” is a combination of the word “feasibility” and “Yacon”.

Product Description

Feacon is an ice cream that is made of yacon, honey and all-purpose cream. It has

a lot of nutritional benefits. The business takes the opportunity to accommodate people of

all ages who loves ice cream. The product was priced at Php 28.00.

Figure 1.Feacon Ice Cream

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Table 1. Nutrition Facts of Ingredients

Ingredients Nutrition Facts

Yacon It is found to have the lowest calorific value, which

makes it a perfect diet food option. It is a good source of

protein, fiber and vitamins like vitamin A, vitamin B1,

vitamin B2 and vitamin C. Yacon tuber is also rich in

essential minerals like calcium, iron, potassium,

magnesium and phosphorus. It can also provide your

body with as many as 20 vital amino

acids.https://www.healthline.com/nutrition/does-yacon-

syrup-work
All-purpose cream

https://www.myfitnesspal.com/food/calories/alaska-
crema-whipped-cream-738842962?v2=false

Feacon Packaging
 7

Figure 2. Packaging of Feacon Ice Cream

The first impression is created by the packaging of a product, and sometimes it’s

all it takes for customers to want it . Feacon packaging is a clear cup with logo on top of its

cover. The size of the cup is 4 oz with 100 ml of Yacon ice cream.

Quantification of Demand

The researchers prepared one hundred fifty copies of surveying form floated in

different barangays, specifically, in Burgos,Dagupan City. This process helps the

researchers in determining the demand for the product that will be introduced in the

market.

Based on the result of the survey, 81% are willing to buy Feacon Ice Cream

because of its health benefits and it is a cause of happiness and refreshment for them.

While 19% of the respondents preferred to buy other brands of ice cream.
 8

Feacon Ice Cream Other Brands

19%

81%

Figure 3. Consumer’s willingness to buy Feacon Ice Cream

Competitive Condition and Analysis

Based on the survey conducted by the proponents, there are (10) identified local

and international competitors in the market. That is engaged in selling Ice Cream. Table 1

below signifies the current brand names in the local market.

Table 2.Competitors Data Analysis (Local and International Brands)

Brand Names Volume Price

Selecta 1.5 liters (1 gallon) Php 266.00

Magnolia 1.5 liters (1 gallon) Php 250.00

Nestle 100 grams Php 30.00

Dairy Queen 200 grams Php 269.00

Ben and Jerry’s 416 grams Php 320.00

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Target Market

People of all ages such as kids, teens, and most especially adults whose suffering

from hypertension are the target consumers of the business. It is not difficult to

understand the world’s passion for ice cream. Aside from the obvious pleasure of

satisfying one owns taste buds, almost everyone has a fond memory of a Birthday party,

picnic or romance which is included some form of ice cream.

SWOT Analysis

Under the SWOT Analysis, the proponents have identified the product’s

strengths, weaknesses, opportunities and threats which will be beneficial as they enter the

market.

STRENGTHS WEAKNESSES
Suitable for everyone Not yet established brand image
Healthy and Organic raw materials Packaging
New taste

OPPORTUNITIES THREATS
Export quality goods Fluctuation in the price of raw
Fast growth in market materials
Climate change
Tail in demand
Competitor's brand

Figure 4. SWOT Analysis

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Business Logo

Figure 5.Product Logo

The logo is shaped ice cream which symbolizes the main components of the

product with the tagline “A scoop of happiness into a healthy life”. The proponents

choose color pink as a background because it is beautiful in the eyes of everyindividuals

especially to kids.
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Marketing Strategies

Marketing strategies are needed to further promote the product and reach the

desired target market. The proponents will use different kinds of marketing strategies.

The location and pricing strategies will also have a great impact on how the customers

will identify the product. Having well-designed marketing strategies, if implemented very

well, could result to the long-term success and profitability of the business. Below are the

marketing strategies:

Table 3. Marketing Mix

Marketing Mix Strategies Implementation

Product Free Taste Since the product is ice cream, the proponents
will be giving free taste in places such as the
public market and malls. The free taste will be
done every weekend in one month.
Price Discounts The customers can avail of the discounts for
two weeks after the business was established.

Promotion Flyers The proponents will be giving out flyers on

places wherein people always pass by one
Tarpaulins week before the business opens and one week
after. As for the tarpaulin, one will be
Social Media pages displayed on A.B Fernandez St. Perez
Boulevard one will be at conspicuous place in
Downtown Dagupan. Social Media Pages will
also be used to further promote business.
Place Near schools The proponents placed the store along the
highway to make it accessible to customers.
Easy to see
 12

ORGANIZATIONAL AND MANAGEMENT ASPECT

The purpose of organizational feasibility is to define the legal and corporate

structure of the business. It contains descriptions of the business and organizational

structure of the business.

Business Description

The business establishment needed a name to be acknowledge by the customers.

With this, the proponents choose the name of the business as “Feacon Ice Cream Shop”.

Feacon is as an ice cream business. Ice cream is a frozen dessert made from dairy

products, such as milk and cream and yacon is a traditionally grown vegetable for

thousands of years and has a wide variety of uses., the researcher would like to study

about yacon as ice cream.

It is situated in front of St. John the Evangelist Church where a lot of people are

passing by especially the students. There are schools and other establishments nearby the

store.

Mission

To delight and serve our customers with the finest quality of ice cream and to

consistently exceeds customers’ expectations through the help of dedicated and skilled

employees and the spirit of teamwork.

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Vision

To maintain the satisfaction of consumers and increase profitability by maximizing

markets, having new product, efficient workplace and processes

Organizational Chart

Owner/Cashier/Bookkeeper

Production Staff

Figure 6. Organizational Chart

In the establishment of any business, it is of great importance that there should be

a proper division of tasks.

Yacon business will hire one production staff that will make the final product and

the owner will serve as the saleslady, cashier and bookkeeper.

Table 4.Personnel Plan

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Job Title Qualifications Duties and Responsibilities Salaries

Owner  Graduated B.S.  Owner/cashier/bookkeeper Php 270.00

major in of the business
Financial  Assigning tasks to staffs
Manaement  Responsible in recording
 Good in sales and profit
handling and  Oversees the store
organization  Attend and assist customer
 Has a great
skills
 Has expertise
in all
organization
 Knows
everything
about the
business

Production  Responsible  At least high school Php 270.00

Staffs for the graduate
production of  Has a knowledge in
yacon ice producing the product
cream  Without any disease
 Packaing of  Without any criminal
finish products record
 Maintaining th
production
area clean and
sanitized

Mandatory Benefits to the Employees

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Social Security System - is a government program that provides health and retirement

benefits for all the employees of the Philippines.

Phil health - a health insurance that subsidize employees to decrease its payment for

hospital bills and medical expenses (i.e. medicines, etc.).

Overtime Pay - a mandatory compensation provided for in the Labor Code of the

Philippines (LCP) to benefit an employee who works more than eight hours a day. The

amount to be paid to the employee concerned shall be the one provided by the LCP.

Workers' Compensation - If an employee suffers an accident on the job, workers'

compensation insurance usually pays for medical costs, and time off in some cases.

Business Objective

To provide our customers great ice cream at a reasonable price and walk out with a smile

on their faces.

Business Policies

• If the customer is unhappy with the product, they can notify the business within 24

hours from the time of purchase.

• To be eligible for a refund, the item must be in the original packaging.

• Refunds will automatically be credited to the original method of payment.

Business Guidelines and Procedures

Yacon Ice cream business guidelines and procedures are the following:
 16

 Regular business days shall be from Monday to Friday

 Regular business time start at 10:00 am to 6:00 pm a day.

 The employer and his/her employees are required to wear their proper uniform

inside the store and wear their hairnet and plastic gloves while making yacon ice

cream.

 The one who is on duty shall be responsible to the losses of amount based on

inventory.

Waste Disposal Management

Feacon Company aims to influence the society to be more patriotic by

maintaining the surrounding’s cleanliness. With that, the company created ways in

disposing its waste material, such as having a biodegradable and non- biodegradable trash

bins, and also the famous Reduce, Reuse, Recycle like the peel of the Yacon, it can be

used as a natural fertilizer. When it comes to other ingredient the condensed milk the

proponents can use its cans by recycling. There are two trash bins for the biodegradable

and non-biodegradable. Biodegradable waste will be disposed in trash bins and will be

collected by the garbage collector.

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Collecting at
closing time
Non-
Biodegradable
Reduce, Reuse
Waste Disposal and Recycle
Management
Natural
Biodegradable
fertilizer

Figure 7. Waste Disposal Management

 18

TECHNICAL ASPECT

This chapter, discusses the different machineries and equipment’s to be used,

production tools that are needed in order to produce the product.

Store Location

The location of the business is situated in a place that is accessible to target

consumers.

Figure 8. Location Map

( Google Map )
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Figure 9.Actual Photo of the Rental Space

( Google Map)

It is placed in front of St. John the Evangelist Church beside Ice cream house

store at Burgos Street, Dagupan City wherein many people pass by. Besides it will not

only attract the residents and students but also a large number of people who are nearby

the place like employees and or workers. The cost of renting the space is P 4000.00 pesos

per month.
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Layout

The first thing that the clients will see when coming to the plant is the service

counter area where the customers can pick or buy their order.

Figure 10.Top view with measurement

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Figure 11.Top View Perspective

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STRUCTURAL DESIGN

This is a proposed perspective view of the Feacon Ice Cream Shop.

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Figure 12.Front Elevation

Figure

13.Perspective Left
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Production Process

The figure below shows the process on how to make Yacon ice cream. The business

makes sure to provide a safe and quality Feacon Ice cream.

Prepare all the ingredients:

Yacon Mix all the ingredients in
Crash the yacon using grater.
All purpose cream mixing bowl.
Condensed milk

Let it cool for 3 hours or Pour all the ingredients in Beat all the ingredients using
more than that. container and put in freezer. hand mixer.

Figure 14. Production Process

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Production Schedule

The production schedule shows how the business will produce its product in a day, week

or in month.

Number of pieces Total number of

Number of pieces in a
produced in a day (1 products produced in
week (5days)
batch per day) one month

100 500 2,000

1. The employees shall work 8 hours in a day.

2. In one day, the proponents would come up with 100 pieces of product.

3. The proponents have decided to produce their products two times a week with a

total of 500 pieces of products produced.

4. Monthly production with a total of 2,000 pieces of product shall be produce

 26

Raw Materials

The Yacon ice cream is an innovation of the usual ice cream. It is produced to

offer consumer new variety of ice cream that is desirable to human values such as to

increased and improved quality of life. Below is the table showing the raw materials and

supply of the Yacon ice cream per batch.

Table 5.Raw Materials

Raw Materials Specification Quantity Where to buy Amount
Yacon 1 1/2Kg Malimgas Market
(Dagupan City)
₱ 90
Alaska 10 packs SJ Mini Mart
All-purpose cream (San Jacinto)
(250mL) ₱400

CSI
Cowbell 10 cans (Dagupan) ₱280
Condensed Milk
(300mL)

Malimgas Market
Lid Container 2 packs ( Dagupan City) ₱100

Wooden spoon Malimgas Market

2 rolls ( Dagupan City) ₱100

100pcs
Sticker of the logo Printing S
( Daily ) ( Calasiao ) ₱200
TOTAL - - - ₱ 1, 170

Production Tools

Below are the following production tools needed for the production of Yacon ice cream.

Table 6. Tools
 27

Production Tools Specification Quantity Where to buy Amount

Weighing Scale The usage of this is 1 DIY store ₱300
to scale the exact (Nepo Mall, Dagupan
weight of the City)
product

Grater The usage of this is 1 DIY store ₱80

to crash the Yacon (Nepo Mall, Dagupan
City)

Measuring Jug 500mL 2 DIY store ₱145

(Nepo Mall, Dagupan
The usage of this is City)
to pour the exact
amount of the
product.

Mixing Bowl 8inches 5 DIY store ₱100

(Nepo Mall, Dagupan
The usage of this is City)
for putting or
mixing together all
the ingredients.

TOTAL - - - ₱ 625

Machineries

The business will only need one machineryfor the production of Yacon Ice cream and it

is presented below.

Table 7. Machineries
Machineries Specification Quantity Where to buy Amount

Haier Freezer 4 ft. 1 Lazada ₱10,900

(Manila)
 28

The usage of
this is to put all
the product here
after pouring
from lid
container.

Kyowa Hand The usage of 1 Lazada ₱660

this is to beat all (Manila)
Mixer the ingredients.

TOTAL - - - ₱ 11, 560

Furniture and Fixtures

The table below shows the things that are used by a business to carry out it’s the core

operations.

Table 8. Furniture and Fixtures

Furniture
Specification Quantity Where to buy Amount
andFixtures
Tokyo Chair
This is for City Central
service counter 1 (Dagupan ₱165
area City)
 29

Tokyo Table
City Central
For service 1 (Dagupan ₱899
counter area. City)

Soho toilet bowl

For comfort Lazada
1 ₱ 450
room of staffs (Manila)

Plastic Sink

Lazada
For service area 1 ₱ 370
(Manila)

Padlock

For the safety of Unitop

2 ₱60
the business ( Dagupan )

Fire
Extinguisher

For the safety of Lazada

1 ₱ 1, 100
the business ( Manila )
 30

Light Bulb
For comfort
room and Unitop
2 ₱42
service counter ( Dagupan )
area.

TOTAL - - - ₱ 3, 086

Office and Cleaning Supplies

The following are the supplies that the business will need.

Table 9. Office and Cleaning Supplies

Supplies Specification Quantity Where to buy Amount
Ballpen Faber Castle 3 National ₱9.50
Bookstore
This is use for (Dagupan City)
writing for the
entire product sold.

Calculator 8-Digit LCD 1 Japan Home ₱88

Supplies
This is to surely (Calasiao)
calculate all the
change, profit etc.
 31

Receipt 100 Sheets 1 CSI ₱19.50

(Dagupan City)
For the customers.

Log Book For the attendance 1 CSI ₱ 120

of staffs (Dagupan)

Magic
Alcohol
1 Supermarket ₱44.75
For the staffs.

Garbage bag
Magic
For the
1 pack Supermarket
cleanliness of the
surroundings. ₱67.25

Cleaning brush
with dustpan
For the
Novo
cleanliness of the 1
surrounding.

₱95
 32

Hair Net 1 pack Fiesta Mall ₱ 36

For the staffs. (Calasiao)

Hand Gloves Fiesta Mall

1 pack ₱ 38
For the staffs. (Calasiao)

Kitchen Apron 2 Fiesta Mall ₱45

For the staffs. (Calasiao)

Plastic Bag 1 pack Fiesta Mall ₱12

For the purchased (Monthly) (Calasiao)
ice cream.

TOTAL - - - ₱ 575
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FINANCIAL ASPECT

This chapter includes the Source of funds, Major Assumptions, Total Projected

Cost, Financial Position, Income Statement, Changes in Equity, Statement of Cash flows,

and Ratio Analysis.

Source of Funds

No business can live without funds. The business makes use of the personal

financial sources of the owner.

Major Assumptions of Feacon

The following items are the assumptions made by proponents to understand more

about the computations made in financial plan.

1. The business entity will be a sole proprietorship.

2. The owner will be the manager/cashier/bookkeeper of the business.

3. The projection will be on a five-year period

4. There will be one (1) batch per day, five (5) days in a week, and twenty (20) days

a month. There will be two hundred forty (240) production days in a year.

5. The company will produce one hundred (100) pieces of Feacon ice cream per

batch.

6. The business will conduct its operation Monday to Friday

7. It is assumed that production would increase 5% per annum.

8. Utilities will increase by 5% yearly because of increase in production.

9. Straight – line method will be used for depreciation.

10. Purchased of raw materials will be on cash basis to avoid liability.

 34

FEACON

TOTAL PROJECTED COST

(in 3 Months)

  Account Title      Amount

  Equipment P 11, 500.00

  Expenses (in 3 months)  

  Direct Labor P 32, 400.00

  Direct Materials P 46, 200.00

  Factory Overhead P 40, 686.00

  Selling and Administrative Expense P 58, 686.87

  Total       P 189, 472.87

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FEACON
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2018-2022

Account Titles    REF   2018 2019 2020 2021 2022

ASSETS                
1,284,649.8
Cash   2   630,697.08 833, 341.88 1,047,740.83 2 1,506,567.46
Inventory 3 26, 844.00 22, 071.58 22, 277.71 22, 504.87 17, 524.71
1, 070, 1, 307,
Total Current Assets       657, 541.08 855, 413.46 018.54 154.69 1, 561,815.14
Equipment   4   11,500.00 11,500.00 11,500.00 11,500.00 11,500.00
Accumulated Depreciation (850.77) (1,701.54) (2,552.31) (3,403.08) (4,253.85)
Production Tools 4.1b 955.00 955.00 955.00 955.00 955.00
Accumulated Depreciation (191.00) (382.00) (573.00) (764.00) (955.00)
Furniture and Fixtures 4.1a 3,388.00 3,388.00 3,388.00 3,388.00 3,388.00
Accumulated Depreciation (553.80) (1,107.60) (1,661.40) (2,215.20) (2,769.00)
Total Non-Current Assets     14,247.43 12,651.86 11,056.29 9,460.72 7,865.15
1,316,615.4
Total Assets       671, 788.51 868, 065.32 1,081,074.83 1 1,531,957.32
 
LIABILITIES & CAPITAL      
Tax Payable     - - - - 37,989.48

1,316,615.4
Feacon, Capital 671, 788.51 868, 065.32 1,081,074.91 1 1,531,957.32
 36

1,316,615.4
Total Liabilities & Capital     671, 788.51 868, 065.32 1,081,074.91 1 1,531,957.32

FEACON
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2018-2022

Account Titles     NOTES   2018 2019 2020 2021 2022

Net Sales     5   606,480.00 662,628.55 677,436.49 703,718.07 724,868.48
COGS     7   (199,944.00) (229,147.44) (226,325.45) (228,573.91) (230,864.10)
Gross Profits 406,536.00 433,481.11 451,111.04 475,144.16 494,004.38
Selling & Administrative Expense 8 (234,747.49) (237,204.30) (238,101.45) (239,603.66) (240,672.99)
Operating Income   171,788.51 196,276.81 213,009.59 235,540.50 253,331.39
Income Tax Expense     9   - - - - 37,989.48
Net Income       171,788.51 196,276.81 213,009.59 235,540.50 215,341.91
 37

FEACON
STATEMENT OF CASH FLOW
FOR THE YEAR ENDED DECEMBER 31, 2018-2022

Account Titles     2018 2019 2020 2021 2022

Cash Flow from Operating              
Activities                  
Net Income 171, 788.51 196, 276.81 213, 009.59 235, 540.50 215,341.91
Depreciation Expense 1,595.57 1,595.57 1,595.57 1,595.57 1,595.57
Increase in Inventory -26,844.00 4,772.42 -206.13 -227.16 4,980.16
Net Cash Provided by OA     146,540.08 202,644.80 214, 399.03 236, 908.91 221,917.64
Cash Flow from Investing              
Activities                  
Purchase of Equipment   (11,500.00)        
Purchase of Furniture and Fixtures     (3,388.00)        
Purchase of Production Tools   (955.00)        
Net Cash Provided by IA     (15,843.00) -   -  
Cash Flow From Financing                  
Activities                  
Investment 500,000.00  
Net Cash Provided by FA     500,000.00 - - - -
Net Changes in Cash       630,697.08 202,644.80 214, 399.03 236, 908.91 221,917.64
Add: Beginning Cash 630,697.08 833, 341.88 1, 047, 740.91 1, 284,649.82
 38

Ending Cash       630,697.08 833, 341.88 1,047,740.91 1, 284,649.82 1,506,567.46

FEACON
STATEMENT OF CHANGES IN OWNERS EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2018-2022

Account Titles       2018 2019 2020 2021 2022

Capital, Beginning 500,000.00 671, 788.51 868, 065.32 1, 081, 074.91 1,316, 615.41
Add: Net Income 171, 788.51 196, 276.81 213, 009.59 235, 540.50 215,341.91
Drawings - - - - -

Capital, Ending       671, 788.51 868, 065.32 1, 081, 074.91 1,316, 615.41 1,531,957.32
 39

FEACON

NOTES TO FINANCIAL POSITION

AS OF DECEMBER 31, 2018-2022

Account Titles Ref 2018 2019 2020 2021 2022

NOTE 2 CASH              
Net Changes in Cash     630,697.08 202,644.80 214,399.03 236,908.91 259,640.61
Add: Beginning Cash 630,697.08 833, 341.88 1,047,740.91 1,284,649.82
1,047,740.9
Ending Cash     630,697.08 833, 341.88 1 1,284,649.82 1,506,567.46

NOTE 3 INVENTORY              
Finished Goods 24, 996.00 20, 205.10 20, 392.57 20, 600.87 15, 601.67
Raw Materials 1,848.00 1,866.48 1,885.14 1,904.00 1,923.04
Total Inventory   26, 844.00 22, 071.58 22, 277.71 22, 504.87 17, 524.71

NOTE4 EQUIPMENTS              
Freezer 10,845.25 10,845.25 10,845.25 10,845.25 10,845.25
Hand Mixer 654.75 654.75 654.75 654.75 654.75
Total Equipment 11,500.00 11,500.00 11,500.00 11,500.00 11,500.00
Accumulated Dep, Beg - 850.77 1,701.54 2,552.31 3,403.08
Accumulated Depreciation 850.77 850.77 850.77 850.77 850.77
Accumulated Dep, End     850.77 1,701.54 2,552.31 3,403.08 4,253.85
 40

4.1a FURNITURE AND FIXTURES            

Plastic Sink     370.00 370.00 370.00 370.00 370.00
Monoblock 165.00 165.00 165.00 165.00 165.00
Table 899.00 899.00 899.00 899.00 899.00
Toilet Bowl 450.00 450.00 450.00 450.00 450.00
Light Bulb 84.00 84.00 84.00 84.00 84.00
Padlock 120.00 120.00 120.00 120.00 120.00
Cash box 200.00 200.00 200.00 200.00 200.00
Fire Extinguisher 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00
Total 3,388.00 3,388.00 3,388.00 3,388.00 3,388.00
Accumulated Dep, Beg - 553.80 1,107.60 1,661.40 2,215.20
Accumulated Depreciation 553.80 553.80 553.80 553.80 553.80
Accumulated Dep, End     553.80 1,107.60 1,661.40 2,215.20 2,769.00

4.1b PRODUCTION TOOLS              

Weighing Scale     230.00 230.00 230.00 230.00 230.00
Grater 80.00 80.00 80.00 80.00 80.00
Measuring Jug 145.00 145.00 145.00 145.00 145.00
Mixing Bowl 500.00 500.00 500.00 500.00 500.00
Total 955.00 955.00 955.00 955.00 955.00
Accumulated Dep, Beg - 191.00 382.00 573.00 764.00
Accumulated Depreciation 191.00 191.00 191.00 191.00 191.00
Accumulated Dep, End     191.00 382.00 573.00 764.00 955.00
 41

NOTE 5 Net Sales              

Total Sales Units 4.1 22,800 24,422 24,480 24,933 25,182
Selling Price (2%) 28.00 28.56 29.13 29.71 30.30
Total Sales Units 638,400.00 697,503.74 713,091.04 740,755.86 763,019.45
(31,920.00 (34,875.19
Sales Discount (5%)     ) ) (35,654.55) (37,037.79) (38,150.97)
Total Net Sales     606,480.00 662,628.55 677,436.49 703,718.07 724,868.48

NOTE 6 Sales              
Total Production 4.1a 24,000 24,240 24,480 24,725 24,972
Add: Units Unsold 4.1b - 1,200 970 979 989
Total Units 24,000 25,440 25,450 25,704 25,961
Percentage of Sales     95% 96% 96% 97% 97%
Total Sales Units     22,800 24,422 24,432 24,933 25,182

6.1a Annual Production              

No. of packs produced(month) 2,000 2,020 2,040 2,060 2,081
No. of production in a year 12 12 12 12 12
Total Production     24,000 24,240 24,480 24,725 24,972
 42

6.1b Units Unsold              

Total Units 24,000 24,240 24,480 24,725 24,972
Muliply by percentage of unsold goods 5% 4% 4% 4% 3%
Total Units Unsold     1,200 970 979 989 749

   
Sales Discount              
Total Sales Unit 638,400.00 697,503.74 713,091.04 740,755.86 763,019.45
Sales Discount Percent 5% 5% 5% 5% 5%
Total     31,920.00 34,875.19 35,654.55 37,037.79 38,150.97
   
6.1c Finished Goods              
Units Unsold 1,200 970 979 989 749
Cost per unit 20.83 20.83 20.83 20.83 20.83
Total Finished Goods     24,996.00 20,205.10 20,392.57 20,600.87 15,601.67

NOTE 7 Cost of Sale              

Raw Materials, Beg. Bal     1,848.00 1,866.48 1,885.14 1,904.00
 43

Purchase of RM(1%)     184,800.00 186,648.00 188,514.48 190,399.62 192,303.62

Total Raw Materials Available     184,800.00 188,496.00 190,380.96 192,284.76 194,207.62
(1,848.00 (1,866.48
(1,885.14) (1,904.00) (1,923.04)
Less: RM, End. Bal (1%) ) )
Total Raw Materials Used     182,952.00 186,629.52 188,495.82 190,380.76 192,284.58
Direct Labor 129, 600 129, 600 129, 600 129, 600 129, 600
Manufacturing Overhead(1%)     15,144.00 15,295.44 15,448.39 15,602.88 15,758.91
Total Manufacturing Cost     15,144.00 15,295.44 15,448.39 15,602.88 15,758.91
Add: Finished Goods, Beg. Bal     - 25,356.00 20,496.10 20,686.27 20,897.57
Total Goods Available for sale 199,944.00 229,147.44 226,325.45 228,573.91 230,864.10
Less: Finished Goods, End. Bal 24, 996.00 20, 205.10 20, 392.57 20, 600.87 15, 601.67
Total Cost of Sale     199, 944.00 229,147.44 226,325.45 228,573.91 230,864.10

NOTE 8 Selling and Administrative Expense            

Utilities Expense 6.1a 8,400.00 8,484.00 8,568.84 8,654.53 8,577.07
 44

Rent Expense 6.1b 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00

Supplies Expense 6.1c 3,262.00 3,294.62 3,327.57 3,360.85 3,394.46
Salary Expense 6.1d 115,166.64 115,166.64 115,166.64 115,166.64 115,166.64
Advertising Expense 6.1e 210.00 210.00 210.00 210.00 210.00
SSS Expense 12,824.88 12,824.88 12,824.88 12,824.88 12,824.88
Pag-ibig Expense 3,868.80 3,868.80 3,868.80 3,868.80 3,868.80
Philhealth Expense 5,319.60 5,319.60 5,319.60 5,319.60 5,319.60
Taxes and License 4,180.00 3,565.00 3,565.00 3,565.00 3,565.00
Dep'n Expense - Equipment 850.77 850.77 850.77 850.77 850.77
Dep'n Expense - Furniture 553.80 553.80 553.80 553.80 553.80
Dep'n Expense - Production Tools 191.00 191.00 191.00 191.00 191.00
Sales Discount 31,920.00 34,875.19 35,654.55 37,037.79 38,150.97
Total Selling & Admin     234,747.49 237,204.30 238,101.45 239,603.66 240,672.99

8.1a Utilities Expense              

Electric Consumption (1%)     7,200.00 7,272.00 7,344.72 7,418.17 7,292.35
Water (1%) 1,200.00 1,212.00 1,224.12 1,236.36 1,248.72
TOTAL UTILITIES     8,400.00 8,484.00 8,568.84 8,654.53 8,577.07

8.1b Rent Expense              

Stall     48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Total Rent     48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
 45

8.1c Supplies Expense              

Office & Cleaning (1%)     3, 262 3, 294.62 3, 327.57 3, 360.85 3, 394.46
Total Supplies     3, 262 3, 294.62 3, 327.57 3, 360.85 3, 394.46

8.1d Salary Expense              

Owner     53,793.36 53,793.36 53,793.36 53,793.36 53,793.36
Production Staff 53,793.36 53,793.36 53,793.36 53,793.36 53,793.36
Net Salary     107,586.72 107,586.72 107,586.72 107,586.72 107,586.72

SSS Expense              
Owner 6,412.44 6,412.44 6,412.44 6,412.44 6,412.44
Production Staff     6,412.44 6,412.44 6,412.44 6,412.44 6,412.44
Total     12,824.88 12,824.88 12,824.88 12,824.88 12,824.88

Pag-ibig Expense              
Owner     1,934.40 1,934.40 1,934.40 1,934.40 1,934.40
Production Staff 1,934.40 1,934.40 1,934.40 1,934.40 1,934.40
 46

Total     3,868.80 3,868.80 3,868.80 3,868.80 3,868.80

Philhealth Expense              
Owner     2,659.80 2,659.80 2,659.80 2,659.80 2,659.80
Production Staff 2,659.80 2,659.80 2,659.80 2,659.80 2,659.80
Total     5,319.60 5,319.60 5,319.60 5,319.60 5,319.60

8.1e Advertising Expense              

Tarpaulins     150.00 150.00 150.00 150.00 150.00
Flyers 60.00 60.00 60.00 60.00 60.00
TOTAL ADVERTISING     210.00 210.00 210.00 210.00 210.00

8.1f Taxes & Licenses              

Registration &  
Other License 1,230.00 615.00 615.00 615.00 615.00
Permits &  
Other License 2,950.00 2,950.00 2,950.00 2,950.00 2,950.00
Total     4,180.00 3,565.00 3,565.00 3,565.00 3,565.00

8.1f(a) Registration & Other License            

  DTI Business Name Registration Cert  
 47

  Annual Registration Fee P 500.00  

  Certification Fee 100.00  
  Documentary Stamp Tax 15.00  
  Sub-Total     P 615.00        
  BIR Certification of Registration  
  Application Fee P 500.00 P 500.00 P 500.00 P 500.00 P 500.00
  Certification Fee 100.00 100.00 100.00 100.00 100.00
  Documetary Stamp Tax 15.00 15.00 15.00 15.00 15.00
  Total     P 1,230.00 P 615.00 P 615.00 P 615.00 P 615.00

NOTE 9 Income Tax Expense     2018 2019 2020 2021 2022

Net income             253, 331.39
Net Sales 724, 868.48
Less: Threshold 250, 000.00
Total 474,868.48
Tax Rate ( 8% ) 0.08
Income Tax Expense             37,989.48

FEACON

TEST OF PROFITABILITY

YEAR 2018-2022
 48

Rate of Return on Sales

2018 2019 2020 2021 2022

Net Income
171,788.51 196,276.81 213,009.59 235,540.50 215,341.91
Divide by: Net 606,480.00
662,628.55 677,436.49 703,718.07 724,868.48
Sales
Rate of
Return on 28.33% 29.62% 31.44% 33.47% 29.71%
Sales

It measures profitability after considering all revenue and expenses, including interest, taxes and non-operating items.

Rate of Return on Total Assets

2018 2019 2020 2021 2022

Net Income 171,788.51 196,276.81 213,009.59 235,540.50 215,341.91
 49

Divide by:
Average Total
Assets
671,788.51 868,065.32 1,081,074.83 1,316,615.41 1,531,957.32
Rate of Return
25.57% 22.61% 19.70% 17.89% 14.06%
on Sales

Indicates the profitability in the use of total assets or total capital, both borrowed and invested.The ratio indicates that the

company made use of the total assets effectively.

Asset Turnover

2018 2019 2020 2021 2022

Net Sales 606,480.00 662,628.55 677,436.49 703,718.07 724,868.48
 50

Divide by:
Average Total
Assets 671,788.51 868,065.32 1,081,074.83 1,316,615.41 1,531,957.32
Asset Turnover .90 .76 .63 .53 .47

It indicates the efficiency in the use of total resources.

Gross Profit Ratio

2018 2019 2020 2021 2022

Gross Profit 406,536.00 433,481.11 451,111.04 475,144.16 494,004.38
 51

Divide by:
672,000.00 705,600.00 739,200.00 772,800.00 806,400.00
Sales
Gross Profit 60.50% 61.43% 61.03% 61.48% 61.26%

Indicates the gross margin per peso of sales.

Rate of Return on Current Asset

2018 2019 2020 2021 2022

 52

Net Income 171,788.51 196,276.81 213,009.59 235,540.50 215,341.91

Divided by:
Average
Current Asset 657, 541.08 855, 413.46 1,070,018.54 1,307,154.69 1,561,815.14
Rate of Return
on Current 26.13% 22.95% 19.91% 18.02% 13.79%
Assets

Rate of return on current assets indicates the profitability in the current assets.

Rate of Return on Owner’s Equity

2017 2018 2019 2020 2021

 53

Net Income 171,788.51 196,276.81 213,009.59 235,540.50 215,341.91

Divided by:
Owner’s Equity 671, 788.51 868, 065.32 1,081,074.83 1,316,615.41 1,531,957.32
Rate of Return
in Owner’s 25.57% 22.61% 19.70% 17.89% 14.06%
Equity

Indicates the profitability in the use of invested capital or the amount of return per peso of owner’s equity.
 54

SOCIO- ECONOMIC ASPECT.

This chapter included the socio-economic benefits that can influence the community, the

economic contributions that will bring growth to the economy

Health Benefits
By selling nutritious ice cream.

Community Involvement
Going to different barangays around Dagupan and teach them how to make Yacon Ice Cream
without any expenses.

Employment
Provide job to lessen the number of unemployed individual.

Figure 15. Socio-Economic Aspects

Social Community Involvement

Feacon will be focused on giving back to community, in which we operate, by giving a

free ice-cream to the homeless community. For every purchase of ten ice cream or by “Pay-it-

forward ice cream” when one paying customer as if he could buy an ice cream for a homeless

person and the proponents will post it on a bulletin to signify that an ice cream was purchased so

when a homeless person would come they will say “I heard you give a free ice cream to

homeless people”. This is a super easy way, a very efficient way and a super transparent way to

help the homeless community.