MIJ’s SQUASH CARROT NUGGETS

CHAPTER I

Summary of the project

A. Background

1. Project Proponent

The Project of MIJ’s Squash Carrot Nuggets is own and manage by the following, Ira

Bandoriao of Lianga, Surigao del Sur, Judy Ann Mayordomo of Lianga, Surigao del Sur and

Marliza Pagapong from Barobo, Lianga Surigao del Sur. The three proponents graduated

their tertiary education with the degree of Bachelor of Science in Business Administration.

This project is finance by the proponents through personal investment and it would be

managed and operated by the proponents.

2. Proposed name of the project

MIJ’s Squash Carrot Nuggets is the proposed name of the project. The project was

named through the first letter of the owner’s name and their product.

3. Type of business organization

Partnership will be the registered form of business organization in the proposed

project. Proponents choose this kind of ownership because there is more capital

available, relatively easy to start and the profit will be equally divided.

Partnership also includes the advantages of being two heads are better than one,

have greater borrowing capacity, high calibre employees can be made partners, and

there is opportunity for income splitting, and advantage of particular importance due to

pg. 1
 resultant tax saving. Another advantage in partnership are partner‘s business affairs are

private, there is limited external regulation and it’s easy to change legal structure later if

circumstances change. (Tasmanian Government 2017).

4. Location of the proposed project

The proposed location of the project will be at barangay Poblacion, Barobo, Surigao

del Sur where the location is within the commercial area of the said barangay and where

the people and customers are easy to locate the said project.

The advantages why the proponents choose the location area; Barobo is being

centralized between the boundaries of Lianga, Tagbina, Hinatuan and San Francisco,

Agusan Del Sur. Barobo also is abundant in tourism industry with declared tourist

destinations where the people are always visiting. The more people will visit the more

consumers to be expected.

5. Brief History of the project

Squash is one of the most versatile and delicious food available throughout the world

and it packs a serious punch in terms of health and medicinal benefits. Different varieties

of squash have the ability to improve vision, aid in skin care, strengthen the immune

system, prevent cancer, manage symptoms of diabetes, build strong bones,

protect heart health, and reduce the symptoms of insomnia. It also helps

prevent inflammatory conditions, relieves symptoms of arthritis, eliminates ulcers,

eliminates parasites and infections, improves prostate health, protects against birth

defects, boosts respiratory health, and reduces blood pressure. (John Staughton 2019)

pg. 2
 The carrot (Daucus carota) is a root vegetable often claimed to be the perfect health

food. It is crunchy, tasty, and highly nutritious. Carrots are a particularly good source of

beta carotene, fiber, vitamin K1, potassium, and antioxidants. They also have a number

of health benefits. They’re a weight-loss-friendly food and have been linked to lower

cholesterol levels and improved eye health. What’s more, their carotene antioxidants

have been linked to a reduced risk of cancer. Carrots are found in many colors, including

yellow, white, orange, red, and purple. Orange carrots get their bright color from beta

carotene, an antioxidant that your body converts into vitamin A. (Adda Bjarnadottir 2019)

The proponents choose this kind of business because it is healthy and a healthier

way to enjoy the meals and snacks of every consumer. It is popular nowadays

especially in special occasions and since there are some customers that are health

conscious, this project is fit for their satisfaction.

pg. 3
 CHAPTER II

Management aspects

A. Types of business organization

MIJ’s Squash Carrot Nuggets is a partnership.

B. Organization and function

These functions are this follows;

 Manager – in charge of the business and reasonable for planning, directing and

overseeing the operation and fiscal health of a business unit.

 Marketing in charge- is responsible for all procurement of supplies materials,

communication and to keep everything in proper.

 Secretary-take charge of all business entries and transactions

 Cook - in charge of cooking and preparing the nuggets and cleaning the kitchen.

 Cashiers – receive payment by cash and issue receipts or change to customers.

MIJ’s Squash Carrot Nuggets manpower organization

Manager Proponents

Marketing in charge To be hired

Secretary To be hired

Cook To be hired

Cashier To be hired

pg. 4
C. Personal requirements

Position No. Rate/month Annual Salary

Manager 3 18,000 216,000

Marketing in charge 1 5,000 60,000

Secretary 1 4,000 48,000

Cook 2 9,000 108,000

Cashier 1 4,000 48,000

Total 8 40,000 480,000

Assumption: The salary of each position will increase of 10% per year.

D. Organization structure

Manager

Marketing in charge

Secretary

Cook Cashier

pg. 5
 CHAPTER III

Marketing Aspect

A. Market description

The target market of the proposed project are the residence and tourist in the Barobo,

Surigao del Sur and according to the 2015 census, it has a population of 49,730 people and

its lies at the central part of the province of Surigao del Sur.

1. Primary target

The primary targets of the proposed project are the residence within the Barangay

especially to those people who are health conscious.

2. Secondary target

The secondary target of the proposed project are the nearly barangay and the tourist

who are visiting the tourist destination of the said barangay.

B. General practice

Channel of distribution

The product can be sold directly to the customers.

C. Demand

There are some people seeking for a product that relates to a healthy life style, the

proponents decide to propose the project that will cater to their needs especially to the

issues to the increasing life diseases. The product of this project will provide a healthier

meals and snacks with an affordable price.

pg. 6
D. Supply

The materials in creating the product are available, the proposed project has the

ability in the service accurately and willingness to help the customer by providing or

supplying product in the market.

E. Pricing the product

The price of the product to be sold will depend on the ingredients and materials that

will be used in formulating the product.

F. Proposed marketing program

1. The location of the proposed project is assessable to all customers.

2. The business operation will start at 8:00 am until 9:00 pm from Sunday to Friday.

G. Marketing strategy

1. Provide friendly service to the order of the customer.

2. Provides tasty and healthy nuggets through healthy ingredients.

pg. 7
 CHAPTER IV

Financial Aspect

1. Availability of the technical staff MIJ’s Squash Carrot Nuggets has the following technical

manpower.

Manager Expert on business

Marketing in charge Major in marketing

Secretary Computer science

Cook Experienced cook

Cashier Computer science

2. Physical facilities

A. Tools and Equipment the proposed business will need a new tool for the operation

like the following;

1. Kitchen grinders

2. Deep frying pans

3. Ovens

4. Cooling rack

5. Mixers

6. Utensils

7. Storage Containers

8. Television

9. Computer

10. Ceiling fan

pg. 8
B. Furniture and fixture- the proposed business will need tasks and chairs to be used

for daily operation.

C. Building- an accurate building is used for the operation and office of the

personnel.

D. Business logo

E. Site of operation

The proposed location of the project will be at barangay Poblacion, Barobo,

Surigao del Sur where the location is in within the commercial area and where the

people and customer are easy to locate the said project.

F. Financing and financial aspects

The project cost

The proposed project has a total project cost of 100,000 for the start-up capital

of the proponents. Project feasibility study entitled MIJ’s Squash Carrot Nuggets,

Poblacion Barobo, Surigao del Sur. The proponents aimed to loan a capital of

250,000 to enterprise bank for five years.

pg. 9
 Financial Assumption

1. Salaries and wages 10% increased per year

2. Sales of cupcakes 10% increased per year

3. Taxes and license 10% increased per year

4. Insurance 10% increased per year

5. Bonus year end 10% increased per year

6. Repair and maintenance 10% increased per year

7. Start-up expenses & others 50,000

8. Other production cost 10% increased per year

pg. 10
 CHAPTER V

Socio Economic aspect

The proposed business MIJ’s Squash Carrot Nuggets will bring satisfaction to the

customers, who are looking for a healthier way to enjoy meals and snacks. The business is

committed in promoting health among people by creating healthy nuggets that is affordable and

available to all.

Contribution to the economy

The proposed business will benefits the economy through providing employment and this

will give the employees their source of income to help their families for their daily needs. The

income from customers will help the economy to keep active by buying nuggets with affordable

price.

Contribution to the Government

The business owners and the business will pay their tax obligation as provide by the law.

Tax will help the government to generate revenue and funds for the improvement of the society

government project and public service.

Contribution to the society

The proposed project will provide help to the community. This business recognizes the help

of nuggets to the health of the people being served. This is a positive aspect to maintain one

healthy lifestyle of every people of the society.

pg. 11
 CHAPTER VI

Financial Aspects

Schedule 1

POSITION NO. OF EMPLOYESS REQUIRED Rate / month ANNUAL SALARY

Owner/ manager 3(6,000) 18,000 216,000
Marketing in charge 1 5,000 60,000
Secretary 1 4,000 48,000
Cook 2(4,500) 9,000 108,000
Cashier 1 4,000 48,000
Total 8 40,000 480,000
PERSONNEL REQUIREMENTS

Schedule 2

POSITION NO.OF EMPLOYEES RATE/MONTH 2018 2019 2020

Owners /manager 3(6000) 18,000 216,000 237,600 261,360

Marketing in charge 1 5,000 60,000 66,000 72,600
Secretary 1 4,000 48,000 52,800 58,080
Cook 2(4,500) 9,000 108,000 118,800 130,680
Cashier 1 4,000 48,000 52,800 58,080
Total 10 40,000 480,000 528,000 580,800
SALARIES AND WAGES SUMMARY

Assumption: Increased of 10% per year for salary and wages.

Schedule 3

Year Sales day Sales/ month Sales/ year

1 8,000 240,000 2,880,000

2 8,800 264,000 3,168,000

pg. 12
 3 9,680 290,400 3,484,800

4 10,648 319,440 3,833,280

5 11,712.8 351,384 4,261,608

Total 48,840.8 1,465,224 17,582,688

PROJECTED SALES

Assumption: Increase of 10% of sales per year.

Schedule 4

AMORTIZATION SCHEDULE
Interest – 10% Principal – 250,000 Term – 5 years
Year Amortization Principal Interest Balance
250,000
1 65,949.37 40,949.37 25,000 209,050.6
2 65,949.37 45,044.31 20,905.06 164,006.03
3 65,949.37 49,548.74 16,400.63 114,457.6
4 65,949.37 54,503.61 11,445.76 59,953.97
5 65,949.37 59,953.97 5,995.397 0
Total 329,746.85 250,000 79,746.85
Schedule 5

DEPRECIATION OF PHYSICAL AND EQUIPMENT

Equipment Cost life Salvage Depreciation 2018 2019 2020

value
Building 100,000 8 10,000 90,000 11,250 11,250 11,250
Kitchen grinders 1,600 1 160 1,440 1,440
Deep frying pan 3,500 2 350 3,150 1,575 1,575
Ovens 5,600 5 560 5,040 1,008 1,008 1,008
Cooling rack 900 5 90 810 160 160 160
Mixers 2,600 2 260 2,340 1,170 1,170
Utensils 8,000 1 800 7,200

pg. 13
 Storage 4,000 2 400 3,600 1,800 1,800

Containers
Television 7,500 5 750 6,750 1,350 1,350 1,350
Ceiling fans 6,000 3 600 5,400 1,800 1,800 1,800
Computer 15,000 5 1,500 13,500 2,700 2,700 2,700
Furniture and 15,000 5 1,500 13,500 2,700 2,700 2,700

Fixtures
Total 169,700 16,970 152,730 34,155 25,515 20,970

Schedule 6

Equipment Pre- operator 2018 2019 2020

Building 100,000 88,750 77,500 66,250

Kitchen grinders 1,600 160 160 160

Deep frying pans 3,500 1,925 350 350

Ovens 5,600 4,592 3,584 2,576

Cooling rack 900 738 576 414

Mixers 2,600 1,430 260 260

Utensils 8,000 800 800 800

Storage Containers 4,000 2,200 400 400

Television 7,500 6,150 4,800 3,450

pg. 14
 Ceiling fans 6,000 4,200 2,400 600

Computer 15,000 12,300 9,600 6,900

Furniture and 15,000 12,300 9,600 6,900

Fixtures
Total 169,700 135,545 110,030 89,060

FIXED AND ASSET AND BOOK VALUE

Schedule 7

General expenses 1 2 3

Salaries and wages 480,000 528,000 704,220

Taxes and licenses 6,000 6,600 7,260

Interest expense 25,000 20,905.06 16,400

Insurance 3,000 3,300 3,630

Bonus- year end 40,000 44,000 48,400

Repair and maintenance 20,000 22,000 24,200

Total 574,000 624,805.06 680,690.63

GENERAL EXPENSES

Assumption: increase 10% every year

pg. 15
Schedule 8

Production cost 1 2 3

Start-up expenses & others 50,000

Rental 10,000 11,000 12,100

Transportation Expense 2,000 2,200 2,420

Production Expense 10,000 11,000 12,100

Marketing Expense 4,000 4,400 4,840

Light Expense 2,500 2,750 3,025

Water Expenses 2,500 2,750 2,025

Misc. Expense 4,000 4,400 4,840

Purchase Expense 80,000 88,000 96,800

Total 165,000 126,500 139,150

PRODUCTION AND COST

pg. 16
 MIJ’s Squash Carrot Nuggets

CASH FLOW

Pre- 1 2 3

operating

period
Cash Inflow
Beginning capital 100,000 180,300 2,280,350.63 4,652,001.26
Proceeds from loan EBI 250,000
Sales 2,880,000 3,168,000 3,484,800
Total cash available 350,000 3,060,300 5,448,350.63 8,136,801.26

Cash Outflow
Fixed assets 169,700
Production cost 165,000 126,500 139,150
General expenses 574,000 624,805.06 680,690.63
Loan amortization 40,949.37 45,044.31 49,548.74

Principal
Total Cash outflow 169,700 779,949.37 796,349.37 869,389.37

Cash balance End 180,300 2,280,350.63 4,652,001.26 7,267,411.89

pg. 17
 MIJ’s Squash Carrot Nuggets

Income statement

1 2 3
Sales 2,880,000 3,168,000 3,484,800
Less: production cost 165,000 126,500 139,150
Gross margin 2,715,000 3,041,500 3,345,650
Less: General Expenses 574,000 624,805.06 680,690.63
Accumulated Depreciation 34,155 25,515 20,970
Income before tax 2,106,845 2,391,180 2,643,989
Less: income tax 32% 674,190.40 765,177.58 846,076.60
NET INCOME AFTER TAX 1,432,654.60 1,626,002.36 1,797,912.77

MIJ’s Squash Carrot Nuggets

pg. 18
 ASSETS 1 2 3

Current assets

Cash 2,280,350.63 4,652,001.26 7,267,411.89

Non-current assets

Fixed assets 135,545 110,030 89,060

TOTAL ASSETS 2,415,895.63 4,762,031.26 7,356,471.89

LIABILITIES

Tax payable 674,190.4 1,439,367.98 2,285,444.578

Loan payable 209,050.63 164,006.32 114,457.59

TOTAL LIABILITIES 883,241.03 1,603,374.30 2,399,902.16

OWNERS EQUITY

Owners capital 100,000 1,532,655 3,158,657

Income for the year 1,432,655 1,626,002 1,797,913

TOTAL OWNERS EQUITY 1,532,655 3,158,657 4,956,570

TOTAL LIABILITIES & 2,415,895.63 4,762,031.26 7,356,471.89

OWNERS EQUITY

Balance sheet

Curriculum Vitae

pg. 19
Name: Ira p. Bandoriao
Birthdate: April 20, 1998
Place of Birth:Tungawan, Tambulig, Zamboanga Del Sur
Address: St. Christine, LiangaSurigao Del Sur
Parents Name:
Mother’s Name: Jocelyn P. Bandoriao
Father’s Name: Juanito T. Bandoriao
Educational Background
Tertiary: SDSSU Lianga campus- BSBA FM
Secondary: St. Christine National High School (2014-2015)
Elementary: San Isidro Elementary School (2010-2011)

pg. 20
 Curriculum vitae

Name: Marliza V. Pagapong

Birthdate: December 25, 1998
Place of Birth: BaroboSurigao Del Sur
Address: BaroboSurigao Del Sur
Parents Name:
Mother’s Name: Girlie V. Pagapong
Father’s Name: Welmar D. Pagapong
Educational Background
Tertiary: SDSSU Lianga campus- BSBA FM
Secondary: Mother of Mercy Acadamy (2014-2015)
Elementary: Barobo Central Elementary School (2010-2011)

pg. 21
 Curriculum vitae

Name: Judy Ann S. Mayordomo

Birthdate: May 1, 1998
Place of Birth: LuhaPayasan, LiangaSurigao Del Sur
Address: Payasan, LiangaSurigao Del Sur
Parents Name:
Mother’s Name: Anita S. Mayordomo (Deceased)
Father’s Name: Perceneples P. Mayordomo (Deceased)
Educational Background
Tertiary: SDSSU Lianga campus- BSBA FM
Secondary: Prosperidad National High School (2014-2015)
Elementary: Greenfield Elementary School (2009-2010)

pg. 22