BARANI A Business Plan Presented to the Faculty of the College of Business and Public Administration Camarines Norte State College Daet, Camarines Norte In Partial Fulfillment of the Requirements for the Degree Bachelor of Arts in Entrepreneurship by: Abby Gail P. Beltran Cielo Marie B. Brioso Annie Stefany S. Esteves March, 2018 Scanned with CamScanner1. EXECUTIVE SUMMARY Company Name Business Product Location Name of Proponents Form of Business Organization Total Project Cost Return on Investment Source of Funds Payback Period Project Target Implementation Rationale IMAJE BARANI Purok 3 Bactas, Basud, Camarines Norte ABBY GAIL P. BELTRAN CIELO MARIE B. BRIOSO ANNIE STEFANY S. ESTEVES Partnership P 61,163.48 51.82% Partners’ Contribution 1 year, 11 months and 19 days June 2018 Imaje is trying to project an eco-friendly product by using barani to create an array of elegant bags that are indigenously handcrafted. Barani is made from an obscure material that is locally and readily available, but with imagination and creativity, the seemingly worthless object became a gist for a product that can be proud of. Imaje created the barani to exhibit another important use of banana, contributing progress in the economy of Daet and preserving the environment from indiscriminate use of plastics; moreover, to improve the proponents’ skills in creative designing, develop their aptitude in doing business, provide employment to localities, and gain reasonable profit Scanned with CamScannerIL VISION AND MISSION A. Vision Statement Imaje, a known barani producer in Camarines Norte. B. Mission Statement Imaje will produce an eco-friendly, fashionable handcrafted bag made from barani to help preserve the environment from indiscriminate use of synthetic bags, and contribute progress in the economy of Daet. In response to climate change and a call to help balance the ecosystem, the company will focus in producing indigenous bags using banana sheaths. It is an indigenous material safe to the environment and can be sold in reasonable price for ‘customers’ satisfaction. C. Present Situation The use of bayong is common among the Filipinos from olden days, and it’s still used today by some of our folks when they go to the market. There is also a time in the past when travelers from the provinces use ‘ampipi, a Filipino attaché case made from buri — the material used in making both bayong and banig. The idea of observing the use of indigenous materials is what Imaje tries to project. ‘A material that is readily available, very much local, and an almost non-important substance, but with touch of imagination and creativity, can bring sophistication to a simple lifestyle. From buri to barani, the old fashioned bayong became elegant bags. Imaje is going to unlock the inspiration using barani in the array of bags for fashion. Tote, hobo, baguette, flap, and clutch bags, from simple to sassy anything can be done with barani, Scanned with CamScanner‘The proponents thought that there are lots of handmade bags in Camarines Norte made with abaca and pineapple, but none can we heard of using banana sheath as altemative to making indigenous bags. This is new. Aside from distinctiveness, the durability of the dried fiber is the prime reason why Imaje choose this material to be the object of their creation. There is a low possibility of shortage in supply of raw material; Imaje can sustain barani production for long period of time. D. Objective Target. The creation of barani resulted from creative imagination of the proponent that aims to exhibit another important use of banana while helping preserve the environment. They are wasted banana trunks that are supposed to be thrown after harvesting its fruit, which will be utilized in making barani. The business venture will provide employment to localities, especially the women sector and the unschooled. Purpose. Determined to give its best, the partners assured to improve their knowledge in designs and strategies to ensure the product will always be competitive. There is much hope that Imaje will maintain the expectation of the supportive clients for the creation of barani bags. ‘The four-fold objective of the proposed business is to: 1. Improve the proponents’ skills in creative designing, and develop their aptitude of doing business. 2, To introduce another important use of banana that speaks so much of economy and fashion. 3. Provide employment to localities. 4, To preserve the nature. Scanned with CamSeannerIl. COMPANY OVERVIEW A. Business Ownership Imaje is owned by three proprietors: Beltran, Brioso, and Esteves. They are individuals with passion for fashion; they formed a team of creative minds ready to explore the highest reliability and quality that the product can offer. B. Name, Nature and Location of the Business Name. Imaje is clear by its name, depicting the art image that the proponents have in mind. A brand that doesn’t need to follow trends; It will create trends to set its own trajectory in the business world. Barani is where the product and its name derived from; “barani ng saging” or sheath of banana trunk. The name is chosen for three reasons: 1) easy remembering, 2) sounds indigenous, 3) the name and product signifies the province it belongs—a native of Bicol. Nature. Manufacturing business. The product that Imaje proposes to release is new to the market. They are hand-made bags crafted from banana sheath or barani in Bicol word. Its native name is where the brand label derives from. Location. The location of the business is F. Pimentel Avenue, Pasig, Daet, Camarines Norte; the production area is Purok 3, Bactas, Basud, Camarines Norte. C. Legal Business Description ‘The proponents agreed for a partnership, where profits and losses are proportionally shared. ‘The form of business can assure that the proposed product will meet its potential growth. This possiblity will not happen in sole proprietorship. In partnership, the company will get better ideas, greater support, lighter responsibilities, Scanned with CamSeannerand higher possibility to expand. In equally divided share of accountability, Imaje can assure to provide the customer a product of quality and satisfaction. D. License and Permits Every business is obliged to secure business permits and license that is mandatory before operating. They should procure legal documents and be registered to the following taxing authorities to declare the legality of the operation: 1. BIR Registration (License to issue official receipt) 2. Mayor's Permit (Permit to operate in a given location) 3. Security and Exchange Commission (Business registration) Operation 4, Fire Safety Clearance 5. Insurance Company (optional) Completing these requirements will oblige the government to protect the entrepreneurs should problems or dangers in the process arise, natural or man-made. Tt also identifies the nature of the business and the accountability of the proprietor prior to the operation, and will protect the public health and ensure to keep the environment safe. It will also keep tracks of the finances for tax purposes. B. Proponents The proponents of barani production are: Abby Gail P. Beltran Cielo Marie B. Brioso Annie Stefany S. Esteves Scanned with CamScannerIV. ORGANIZATION AND MANAGEMENT A. Proposed Organizational Structure The organizational structure is a leadership of equally disseminated authority, with frontrunners whose responsibility and function is supplementary to each other, The owners will serve the post according to their knowledge and expertise but no one will decide alone without consulting the other, thus making them as one organized body. The business structure that proponents had decided to make: Manager / Financial Officer Production . Marketing Officer Officer Figure 1. Organizational Structure B. _ List of Officers The officers are composed of the manager, marketing officer, production officer, and financial officer. They will be assigned to their respective post to achieve a smooth operation of the business, Position Name of Officer ‘Manager/ Financial Officer Abby Gail P. Beltran Marketing Officer Annie Stefany 8. Esteves Production Officer Cielo Marie B. Brioso ‘Scanned with CamScannerC. Job Descriptions To avoid confusion in the authority, Imaje has initially assigned each Position the following duties and functions Manager The overall responsible for growth, stability, direction and daily operation of the business. Other duties and responsibilities: Oversees the overall operation of the business Devises a marketing plan and setting sales targets for the team Identifies problems, make decisions and interpret results Controls resources and expenditures ‘© Analyzes the sales figures and financial records + Responsible of depositing money Marketing Officer In charged in maximizing the profits through developing sales strategies that match customer requirements and by promoting products, services or ideas (Study.com), Other duties and responsibilities: ‘© Analyzes the territory/market’s potential, track sales and status reports + Performs cost-benefit and needs analysis for existing/potential customers 10 meet their needs and lifestyle Responsible for advertising, promoting and selling the product Monitors the sales activity, the delivery and distribution of the product Collects customer feedback and compiling market research information Coordinates with the finance officer for the pricing of the product Scanned with CamScanner‘* Supplies Company with reports on the needs, interests, problems and complaints of customers, and whatever design for new products is potentially marketable Financial Officer The officer primarily responsible for managing the financial risks of the company and the one in charge for financial planning and record-keeping, as well as financial eporting to higher management. Other duties and responsibilities: * Monitors financial transactions and collects payments from deliveries Allocates budgets and business overheads (expenses) Prepare payroll of officer and stafT Handles cash after tum over from the payment collection * Accompanies the production officer in buying material © Checks financial/sales status of the company Production Officer Also referred to as production managers, are responsible for the technical management, supervision and control of industrial production processes. ‘They will be involved with the planning, coordination and control of manufacturing processes, to ‘make sure that the goods and services are produced efficiently and the correct amount is produced at the right cost and level of quality. The company is still small and is short of ‘manpower, the owners decided to work for production, and maintain the working area Other duties and responsibilities: Ensures product quality and standard ‘© Controls and directs the production process of the business ‘© Conducts product research and development Scanned with CamSeanner‘* Makes record of the finished product made * Purchases the raw material D. Compensation and Allowance Table 1 shows the compensation allowances are the same, Regardless of work Gifferences, it’s a business partnership where everyone has equal tasks and responsibilities. Table 1. Compensation Allowance Position Per Production Monthly Fiscal Year Manager 50,00 1,000.00 10,000.00 Marketing Officer 50.00 1,000.00 10,000.00 Production Officer 50.00 3,000.00 10,0000, ‘Note: Every officer receives P50.00 per day. Fach officer will work for 20 days only. E, Profit Sharing ‘The proponents decided to divide the business profit annually. Thirty five (35%) Per cent of the profit will go to the proponents’ shares, twenty five (25%) per cent will go for the projected business expansion in the future, fifteen (15%) per cent for savings and the last twenty five (25%) per cent for the research and development. Savings usiness Expansion Cee ara elie 15%, Business Expansion: ssPartners' share 25% ‘Research and Development ‘Savings Research and Development 25% Partners’ Share 3556 Figure 2. Profit Sharing ‘Scanned with CamScannerVv. PRODUCT This part of business plan discusses the product and its environmental and economic importance; the cost-effectiveness of the materials used, matched with fashion and style, A. Product Identification The proposed product is a handcrafted bag made from barani, an indigenous material from banana sheath, combined with other materials for a styley look. The natural color of barani is light brown, which is subject for modification to match the output design, and suit its use —from simple to special occasions. It can also be printed with designs especially if it’s a made to order one. B. Product Description Barani product is locally made, but the idea and sophistication can become globally competitive. The business will be entreprencurial with the proponents to be the first employee to run the trade. Imaje’s product of focus for the business will be handcrafted bags—unlocking the inspiration of using barani in the array of styley bags like tote, hobo, clutch bags, baguette, flap, and anything that can be done with barani, Barani designs can also be personalized. The design will be done according to the request of the client, of how chic she wanted the bag will become, This will show that the company is flexible to the need of the clients Barani will be introduced in the market as an alternative to abaca products, something made with indigenous material that is durable and can surely be utilized the same as abaca, an eco-friendly bag that is not harmful to the environment and will be sold Scanned with CamScanner 10in reasonable price for customers’ satisfaction. The production house of barani will have a receiving area open to accommodate customers, allowing them to stop in and sit down, The location is located in a place that will be easily accessible by anyone. Given the variety of bags that can be made out of barani, the accessibility of the location, and convenience of the place, the company will be capable of rising. C. Product Details ‘As for the trunk that is used in barani, saba is picked as the primary source of materials. There is a wide variation of bananas, but saba has the biggest stem among the varieties making it suitable for the venture project (specialtyproduce.com), The barani to be used is air-dried. With trials and investigation, barani is tumed out to be more durable when air-dried and became brittle if dried directly under the sun Without paint, the normal color of barani is medium brown. Coating like acrylic emulsion will increase the product appearance and durability and it will also serve as damp blocker. ‘The idea so amazing that an obscure material that are supposed to be wasted and thrown after harvesting its fruit will create a product line coddled with imagination and originality... the only limit is creativity. D. Method There is no new technological process or method introduce in making barani products. It’s only an instauration to the use of banana sheath, which is the main conception of the business. The only innovation there may be is the design, which came from integrated mind of the young bloods in addition to the material that is once not ‘Scanned with CamScanner 1worthy of notice before will now be useful and valuable. In spite of being creative, be that as it may, they are open to ideas from the designs of artisan that precedes them, but seeing to it that their creation is an innovation and not a copied one. Barani making will be needing equipment like wringer, stripper, and moulder that are commonly used in abaca made bags. They will also need a sewing machine for Product assembling, Since there is no available machine or equipment in school, the Proponents are planning to rent them from TAMUCO. E. Product Status The creation of barani is one way to promote an environment friendly product, fashionably handcrafted and in reasonable price to satisfy both the customer and the economy. So inspired with the determination to help reduce pollution, and to make a wise use of materials with the most abundant supply, that the barani is born, Imaje will get its supply of banana sheath from one of the proponents” small banana farm while transacting with potential suppliers/banana growers where raw materials could be outsourced when the demand rises. Barani products are definitely sustainable. ‘The customers’ satisfaction for barani products equals the benefit the proponents can eam. Barani will pronounce affluence to number of people: 1) the banana growers can make money out of the banana trunks that are usually get wasted before, 2) fashion people can incorporate their love for style with their love for nature; 3) the thinking that for every bag purchase will mean saving the environment from fast decay, will give anyone a boost of morale; 4) it will become a pride to the municipality it belongs. Scanned with CamScanner 2F Equipment and Machines Needed for Barani Production Pe Stripper Figure 3, Equipments ‘Scanned with CamScanner B‘Scanned with CamScanner1s G. Packaging, Labelling and Branding Labelling and branding is highly considered for barani product presentation. It will create an impression of how the product can be remembered by the customers. A ‘good product is determined by the name it shows off and the label that match the overall design. Barani speaks about creative goodness, the label should match the idea it deals. The inside wrap of the barani product is waxed paper, before it is boxed. It will ‘be wrapped in a paper bag upon purchase, which will also be provided to the stores where the product will be consigned. It can also be labelled with barani logo for an added catch. Aside from being neat and environmentally safe, this can also help market the product to people who are not yet familiar with it. Who knows where these paper bags will reach? Wherever it goes, a brand name speaks of its product eloquently, and that’s branding. Label. The name is designed with asymmetric font and its insignia is a silhouette of bag. Inclusion of the insignia depends on where to put the logo into. barani label aad {, nt bug product logo Jastening tape with email & logo (name and insignia) Figure 5, Trade Markings ‘Scanned with CamScannerThe Product Storyline Product name. The first title agreed by the proponents is musa, the scientific name for banana, It was chosen because it sounds somewhat refined and feminine. But there is lacking in the name, as if it is nothing but a landmark. How could the name be made local... how would it sounds like introducing a town or province? A short name that will contain both the explanation of where it originates and what material it is made from. ‘That is something hard to think about. The proponents live in Camarines Norte, one among the provinces of Bicol Region. In Bicol language, banana trunk is called barani, That rings a bell. They finally calls it barani, the name is what the product is made from (barani nin batag), which sounds where the product is manufactured—Bicol Origin of the idea. The idea of making handcrafted bags began with one of the proponents’ regret for the banana trunks that are thrown after harvesting its fruit, which ‘was increased after a storm rush, Banana plants are damaged, lots of trunks were wasted. The trees are not bearing fruit all at the same time while its growth and multiplication is consuming more space than the fruit it can provide. There is so much to squander than to keep. Then questions rose: is there nothing more to do with banana trees after its harvest? What if there is something to produce from the sheath? That is the start of their observation of how they are going to draw the fiber out of the sheath and create a bag. H. Competitive Edge Imaje’s competitive edge is that the proponents are young bloods. Their passion for artis great. They do not set boundary on how they could learn and improve what they started, The only limit is their creativity. Scanned with CamScanner 16VL MARKET ANALYSIS The earth is continuously damage by the use of corrosive materials in making bags, accessories, and the likes. Because of this, people are looking for remedies and alternatives to lessen the effect, and slower down global warming. There are lots of Consumers resorted into using stuffs made from indigenous materials. This is why Imaje’s product will surely earn the ‘Support of the masses. A. Target Market The proponents’ immediate market for barani is public and private establishments (ie., schools, offices). B. Market Segmentation The main customers of barani are women: employed and students. Men can also enter the classification of customers, which fall under the “gift-givers”. The first area of business is Daet, Camarines Norte in Pasig, preferably nearby offices and schools, The Proponents will also consider friends and referral customers. C. Competition Though there are few native handicraft stores around Daet, none among the bags being sold are barani-made. There is nothing like barani, therefore, there is no direct competitor for the product. Because they are indirect competitors to barani, the supposed obstacles (competitor) are now seen as opportunities (distribution channel). From among these native stores, prospective dealers for the product can be selected or picked according to their sales reputation. It will also be introduced in trade fairs and festivals (ie. Bantayog) and school occasions where display of items for sale are allowed. Scanned with CamScanner 718 D. Demand Table 2 and 3 present the following data based from the proponents’ survey to Provincial Capitol and Camarines Norte State College from the 10% of its total population. Table 2. Total Number of Employee in CNSC ‘Target Market 2015 2016 2017 Employees 324 341 346 ‘Source: HRMO, CNSC Table 2 shows the total number of employees in CNSC from 2015 to 2017, Table 3. Total Number of Employee in Provincial Capitol Target Market 2015 2016 2017 Provincial Capitol 1,722 1,745 1,952 Source: HRMO, Provincial Capitol Table 3 shows the total employee population of Camarines Norte Provincial Capitol from 2015 to 2017. Table 4. Historical Demand of Handicraft Bags in CNSC 77% of the Total Total Annual Year Total Employees Population a Target Demand 2015 324 249 384 2016 341 263 398 2017 346 266 424 Source: Actual Survey Scanned with CamScannerTable 5. Historical Demand of Handicraft Bags in Provincial Capitol 69% of the Total Year Total Employees Population ofthe Target TO! Anal Market 2015 1722 1188 oe 2016 1745 1204 — 2017 1952 1347 ae Source: Actual Survey To get the actual demand each year, the remaining 90% of the population (that is not surveyed) will be multiplied by the percentage of the prospected buyers. The final multiplier to be used in determining how much demands will there be from among the prospected buyers is the quotient from dividing the projected demand to the number of respondent. The quotient will be multiplied to the total number of prospected buyers to get the actual demand for the year, Sample computation: Remaining population x prospect % = 1550 x 69% Tol ed buyer = 1069 Respondent / projected demand 45% ‘Actual demand (2015) = 481 ‘Table 6, Projected Demand for Handicraft Bags in CNSC 94% of the Total Year Total Employees Population ofthe Target TOM) Annual Market 2018 359 337 279 2019 371 349 289 2020 383 360 298 2021 396 372 303 —_——— Source: Actual Survey ‘Scanned with CamScanner20 Table 6 shows the projected demand for handicraft bags from 2018-2021. Based on the survey, the actual demand is 40 bags from 10% of the total population (with 3.5% increase in population annually). The following computation is used for the projected annual demand for CNSC: Remaining population x prospect % = 337x.94% Total prospected buyer = 317 Respondent / projected demand 88% Actual demand (2018) = 29 Table 7. Projected Demand for Handicraft Bags in Provincial Capitol 89% of the Total Year Total Employees Population of Provincial 7 *@! Annual n Demand Capitol 2018 2081 1667 1400 2019 2218 1777 1492 2020 2364 1894 1591 2021 2520 2019 1696 ‘Source: Actual Survey Table 7 shows the total projected demand of Provincial Capitol. The computation procedure is the same as above. E. Supply Table 8. Supply Analysis for Handicraft Bags . ‘Number of handicraft bags Competitor sold weekly Total Annual Supply Maravaman Dry Good Store 1S 720 Few General Merchandise 15 720 Total 30 1,440 ‘Source: Actual Interview Scanned with CamScannera Table 8 shows the weekly and annual supply of the competitors. The proponents Combined all the competitors from Daet, Camarines Norte. The weekly pieces sold were based on the actual interview. To get the total annual supply, multiply the weekly pieces sold per week by 4, the answer will be multiplied by 12. Table 9. Projected Supply for Handicraft Bags EEE ‘Year Total Annual Supply 2018 516 2019 634 2020 697 2021 767 ‘Source: Actual interview Table 9 shows the projected supply for handicraft bags from year 2018 to 2021. To get the total annual supply, multiply the total number of handicraft bags sold annually by the estimated percentage increase in sales annually by the competitor. Table 10. Projected Units Produced and Sales of Barani Handcrafted Bags Year Units Produced Selling Price Sales 2018 576 250 144,000.00 2019 634 273 173,082.00 2020 697 300 209,100.00 2021 167 331 253,877.00 ‘Note: The projected product produced and sales of Barani is based on anrwal % increase variables and (iced cout tha was included inthe price formulation. Scanned with CamSeanner22 Table 10 shows the projected supply for handicraft bags from year 2017 to 2020. To get the total annual supply, multiply the total number of handicraft bags sold annually by the estimated percentage increase in sales annually by the competitor. Table 11. Demand and Supply Gap Year Total Demand Tl Ga product Capacity Market Share (%) Supply 2018 1679 576 1103 480 560 (33%) 2019 1781 634 1147 528 594 (33%) 2020 1889 697 1192 581 630 (33%) 2021 2069 767 1302 639 690 (33%) Source: Survey and study Table 11 shows the demand and supply gap in Camarines Norte State College and Provincial Capitol. The gap is computed by subtracting the total supply from the total demand. To get the market share, divide the gap—which is difference of demand minus supply, from the product capacity. The quotient of gap and product capacity will be multiplied by 100%, It is noted that the average increase in projected product capacity is 10% in volume and 1% in price annually. The pieces in production of Barani are based on how many bags the proponents will be able to produce with the given raw materials and to the demand of the customers. F. Risk Risk is always connected in conducting any business. It could not be avoided but there should have an alternative solution to at least minimize if it can’t be totally removed. Below is the list of risk that barani might encounter and the suggested solutions. ‘Scanned with CamScannerTable 12. Risk Risk 1. Shortage of raw materials 2. Humid weather 3. Mold growth in the product due to incorrect storage 4. Surplus products Solution The proponents look for potential supplier of barani, especially those who market banana fruit. This may not be enough in the future, so the proponents will encourage landowner with barren land, to let it be grown with banana plants, to grow some income out of it. This can’t do any better in the production of barani because the stem needs to be dried. To avoid this dilemma, the proponents will double the effort to save dried materials during sunny season, so that the production will not be hampered by the change of climate. Even the finished barani bag can be grown with molds if not properly stored in a dry place. Make sure it cannot be touched with something damp, or moisten with any liquid. Avoid putting product in humid place or stacking it without any individual covering, it will cause the mold to grow. Be sure to avoid stock product more than it needed to dispose. Just manufacture enough number of products that can be sold at any given time, This can avoid wasting of resources. Scanned with CamScanner 23VII. MARKETING PLAN A. Sales Strategy ‘The proponents decided to consider different strategies on how to effectively ‘market the barani product. Consignment is among the sales strategies, aside from the idea of having its own display store. Making sales order is one sure transaction and this needs a ready design printed in a catalogue that customers can choose from, Made to order is a good deal. It is where the product can hit a higher price, Transaction can be done personally or online. Personal orders are cash on delivery, online orders are prepaid. The product is still new, the first people it can offer best are the friends and close acquaintances of the proponents who believe in them, and will also believe in the product. Their feedback can become a well-grounded reference that can convince others to buy. With determination, any difficulties can be overcome by the great purpose of the product. B. Distribution Channel Distribution channel is the path or pipeline through which goods and services flow. It can be short or long. In long channels, price increases till the product reaches the consumers. It serves as a good and synchronizes communication, minimize the number of transaction and assist in the promotional aspect of marketing. Cae f Ste imaio | samp | atone Figure 6.1 Distribution Channel 1 Consumers Figure 6.1 is the customary way of selling the product. It illustrates the flow of distribution from producer down to buyers, with retail stores as the go-between, Scanned with CamScanner 24‘mje | > | (Geeistines Figure 6.2 Distribution Channel 2 This is the second channel, where Imaje can directly dispose its product to the consumer. This can only happen if the consumer has direct contact with the company, and this buying pattern is usually done with made to order (personalized) items. ‘The selling price that the company will declare is in retail price, which is subject to increase if the sold items is made by order or personalized. Imaje tir Consumers Figure 6.3 Distribution Channel 3 The third channel involved an agent. Agent is usually the one who represents the product, maybe directly connected or hired sales personnel. Mostly, agents are paid by fix commission or certain percentage from the gross amount. Fix commission is allotting an exact amount to profit per item regardless of its price. For example: an agent can get P50 for bags worth P500-600. Percentage basis is a fix percentage per item, regardless of its price, example: if an agent is given 10% commission in every sale of bag, in $00 he got 50 and in 600 he got 60. If the product was sold to place with transportation spent, it’s the agent’s prerogative to increase the price of the product. The producer is not responsible for his expense. This is only for agents in commission basis, If the agent is connected personnel, the increase of price will be declared and the expenses are subsidized, by the company. The agent will take ‘nothing from the sale or the percentage increase, it’s all for the company. ‘Scanned with CamScanner 25,(iirc. emg The fourth channel also involved the agents and the retailers before the ultimate restos | my Figure 6.4 Distribution Channel 4 consumers. In this setting, as it shows, the agent is the one with direct connection to the Company before the retailers, This can happen with directly connected sales personnel or agents. They are the ones who look for the would-be retailers and make deal with them according to the directive of the company. In this manner, the agents, be it a commissioned or directly connected, should be familiar and knowledgeable to the product he sells. imaio | mp We | mp ne | fj anne >| (Ceci Figure 6.5 Distribution Channel 5 In the last channel, wholesalers stand in the midst of the company and the retailers. Wholesalers are businessmen with high purchasing power who are able to buy products in bulk. They are able to avail products in price lower than that of the retailers, commissioned agents, or consigners. They bought the goods wholesale and in cold cash, so they now own it, The responsibility of promoting, selling, and keeping it safe is now theirs, In return, they have all the rights of how much they would want to sell the products, Example, the bag that is 500 for consumer and 450 for retailer/consigner/ agents will only be 400 to wholesalers, The wholesaler, who has a showcase store in SM-Manila can shoot up its price to 800-1000 each. The quality of the product can inspire a good price, which is supported by the location where it is sold, and the kind of customers the product can access. Scanned with CamSeanner 26C. Advertising and Promotion The proponents believe that advertising and promotion will help familiarize the customer to the product being sold. It can also attract and influence their thought, and will later create a need for them to have one to own. ‘To do this, they will distribute flyers and Post advertisement through social media, together with important information of the Product. They will also prepare printed advertisement in tarpaulin where the mission and vision of the product, the backstory, what it advocates and how the consumers can support is introduced. Also the details of what, how, and who to order are particularly included. Business ID. Business card is the first impression of the brand and probably the most effective direct marketing tools, It put a face to the business and provides tangible information about the company. A potential lead or contact can be encountered at any time — tradeshows, industry conferences and seminars, airport lounges—being armed with business cards at all times will ensure the opportunity to make a valuable business connection will never be missed out. Proponents are allotted with 100 business cards a year, for ready communication. » ABBY GAIL P. BELTRAN re DI imentel Ave., Daet, Camarines Norte aS For order or inguiry, call: (054) 721-2562 Figure 7. Sample Business Card Note: see other business cards at Annex A. Scanned with CamSeanner 27D. Pricing and Pricing Policy 28 ‘The proponents will produce 2 bags a day in 20 working days per month, which will give them a yield of 48 bags a month. Using the contribution approach, the breakdown of the costs is as follows: Variable Manufacturing cost Materials Direct Labor Packaging and labeling Transportation (Freight In) Total Variable Manufacturing Cost Variable Non-manufacturing cost Transportation (Freight Out) Total Variable Non-Manufacturing Cost ‘Computation for the product price: Unit Cost Unit Cost Mark-up 4 Wholesale Price Retail Rate ‘Suggested Selling Price P 2,294.70 1,000.00 748.80 100.00 P 4,143.50 132,00 132.00 TVMC + TVNMC Units Produced 4,143.50 + 132.00 58 4275.50 38 73.72 230% 243.26 or P 245.00 10% P 270.00 ‘Scanned with CamScanner‘The mark up rate of 230% of the product cost is added to get the wholesale Price. The additional 10% for consignment fee will be considered as its retail price. The basis of these considerations taken into account was based on the existing price in the market. The amount of barani products will be lower for wholesalers. As consignee will receive a 10% markup from the wholesale price, wholesalers are given extra 7% discount from its wholesale price, provided they will purchase in bulk ~ which is fifty pieces and above. Bulk purchases are for products that are available for sale, not the pre-order ones. Made to order are not applicable unless there is no more stock to offer, and only for available designs. Made to order products are specifically made with some modifications as the clients’ per requested. Pre-orders are products with new designs that are not yet for released but is open for reservation. Retailers can source their products from the manufacturer or the wholesalers. They are priced 2% lower from the basic wholesale value, This is because retailers, though they seem to avail less than the bulk buyers, they too, are buying in cold cash. But this 2% less is only applicable when purchasing directly from the manufacturer. Suggested retail price is applicable within and in the neighboring area where barani is manufactured. The Wholesaler is not controlled by the prevailing suggested retail price, especially if the store where the products will be sold is located farther —Manila. They have the privileged to sell the products in their own pricing, especially if they have no plan of selling to retailers but to end consumers who are willing to buy products no matter the price will be, None from the retailers or wholesalers can return or change products they purchase. The product is now in their responsibility of promoting, safekeeping, and selling it. Only consignee can return products due to time constraints Scanned with CamScanner 2930 ‘VIL PRODUCTION PLAN A. Production Process Pre-production (34% hours) * Entangle barani to form a mat (1 hour) * Create/make design available for the bag to be produced (30mins) * Create pattern for lining of edges and sides (1% hour) Cut/shape the canvas for packet that covers the edge and sides of bag (15mins) Cushape gina cloth to ready the lining (15mins) Arrangement and Procedures 1, Assemble the product (2 hours) ‘© Sew the bag lining and the canvas for packet, for edges and sides. ‘* Attach/sew the packet zipper, main zipper, and the straps. 2. Designing the finish products (2 hours) © Utilize the design created for the bag, or any design that is required to add. © Paint with coating for a lustrous finish to the surface (varnish sealing) 3. Cleaning and scanning the product (20 minutes) ‘© Trim the excess cotton thread © Check the possible errors in the output 4, Packing and labeling (10 minutes) ‘© Wrap the product with wax paper that is fastened by sticker label © Box the product © Check the possible errors in the output Scanned with CamScanneraL (2ep0s) SuyAap persed uonjonporg-ag °g 2una1 21989 wononposg auf, Surddins ‘Scanned with CamScanner32 Suyuyy oy no ~~“ pue adeys Suyjquiassy 1onporg Suruyy eq amp mas “gamaly Seq axp ojquiasse uSisap duppy Scanned with CamScannerFigure 10. The Finished Product ‘Scanned with CamScanner 33B. Business Structure 1. Tools and Equipment Sewing machine Bolo 2. Fumiture and Fixtures Wooden table Monobloc chairs 3. Materials Supplies material Needles (box) Tailor’s chalk Tape measures Yardstick/meter stick Pin cushion Pins & clips Production materials Banana sheath Gina cloth Canvas cloth Zipper Finishing materials Hooks and rings 4, Office Supplies Calculator Record book 34 Electric fan Fire extinguisher Wooden rack Thimble (large) Emery bag ‘Sewing box Dagger Paint brush Handles and straps (assorted) Tattered cloth Thread (nylon and cotton) Slider (for continuous zipper) Beads Ball pen Receipt Scanned with CamScanner35 ‘Table 13. Production Schedule a Day Time Activities Officer Concerned 7-00 am—12:00hn Preparation and Production Officer duction of Monday 8.99 am _ Pro Manager and to am~ 12:00 hn commodity Marketing Officer Friday 1:00 pm 4:30 pm Packaging and Production Officer labeling of the Manager and :00 pm — 4: _ 100 pm—400 pm product Marketing Officer Twice amonth — 8:00 am—4:00 pm Distributing and All selling of the product ——————________stllingofthe product” Table 13 shows the production schedule of ‘Imaje, the allotted hours of work, and the concerned officer for the activity; while Table 14 shows who is in-charged to monitor the progress of certain work or operation. Table 14. Production Plans and Monitoring Progress OFFICER IN CHARGE WORK/OPERATION Manager Project planning Purchase of materials Production Officer Production Quality control Budgetin Financial Officer Record-keeping . Promotion Marketing Officer Distribution C. Work Activities Figures 11 and 12 are the timeline of work within a semester and the daily working hours using Gantt chart to graphically illustrate the schedule. Gantt chart assesses how ong a project should take and plan the order in which the tasks shall be completed. ‘Scanned with CamScanner2017 2018 ACTIVITIES Amelioration of business plan 1* product presentation Defense Approval of Business Plan Finalizing Business Plan 2™ product presentation Submission of project proposal Attending seminars Registration (licenses and permits) Purchasing materials and equipment Preparation of the production area Start of Operation Figure 11. Timeline of Activities MORNING (AM) AFTERNOON (PM) 7) 8) 9]10} 11} 12)1)2/3)/4]s5]6)]7 TWICE A MONTH Figure 12. Working Hours ‘Scanned with CamScanner37 2017 Projected Activities Mar | Apr | May | Jun | Jul | Aug | Sept Separation of banana sheath Drying of banana sheath Cutting of banana sheath into strips Weaving Application of acrylic emulsion Cutting of sewing of lining Assembling and checking the bag Packaging and labeling Selling and Distribution of finished products Figure 13. Production Timeline Legend: Pre-production process aa Preparation and production of commodity Packaging and labeling of the product, Seams Distributing and selling of the finished product {J Figure 13 is the Gantt chart for production timeline that shows the calculated ‘month where the projected activities work best. ‘The first two are pre-production process can only be done during summer. This implies that proponents should collect as, raw materials they can dry so production will continue even during rainy season, ‘Scanned with CamScanner38 D. Proposed Plant Layout __ | » | : { a H ! 4 xt 2 fe 12sm—>| -1.25m->[<—— 30m ———5 | (——— ae | Figure 14. Floor Plan Scanned with CamScanner[<———_~3.0m [e125] —t| <——- 30m ———_ 5] << 1 3] Front View Xray View Figure 15. Perspective ‘Scanned with CamScanner 39® 9 Production area Figure 16. Plant Location ‘Scanned with CamScannera TX. FINANCIAL PLAN A. Financial Assumption 1. Production Data a. Price of materials is estimated to increase by 3% and its volume by 10%, annually. b, Freight In is expected to increase by 3% annually. © Cost of packaging and labeling is expected to increase by 3% annually and 10% in volume. 2. Sales Data a. Sales are made on cash and consignment basis b. Units sales are expected to increase by 10% annually ¢. Selling price will vary on changes of variable costs, 3. Operating Expenses @. Compensation allowances for Manager, Finance, Marketing and Production Officer are expected to increase by 20% annually. b. Office supplies expense is expected to increase by 2% annually ¢. Sanitation expense is expected to increase by 2% annually. d. Rent Expense will remain constant, €. Transportation expense is expected to increase by 3% annually, f. Permits and Licenses are expected to increase by 2% annually while SEC Registration is to be incurred only during first year. g. Business card will increase by 2% annually. h. Seminar and workshop is expected to remain constant, Scanned with CamScannerB. Capital Requirements a. Property and Equipment (5-10 years) Tools and quipment P 17,780.00 Fumiture and fixtures 20,545.00 38,325.00 b. Working Capital Direct Materials P 2318.50 Indirect Materials 76.20 Packaging and Labelling 748.80 Factory Supplies 452.00 Office Supplies 2,005.00 Sanitation Materials 204.00 Rent Expense — Machinery 2,000.00 Rent Expense ~ Production Place 1,000.00 Direct Labor 1,000.00 Salaries and Wages 3,000.00 Employees’ Benefits (SSS) 251.10 Transportation Expense 132.00 Consignment Fee 1,566.00 14,753.60 c. Pre-Operating Expense Seminars & Workshops P 500.00 Permits and Licenses 3,670.00 Advertising Expense 1,000.00 5,170.00 d. Contingency Fund (5% of A, B and C) (annually) Property, Plant and Equipment P 1,916.25 Working Capital 740.13 Pre- Operating Expenses — 258.50 2,914.88 Total Projected Cost P__ 61,163.48 Scanned with CamScanner a243 €G°OLL'OE WSOCET SO79GT S ‘SUIOON] ON TV 06T Er 60°SPZ 01 SSSsss (%0€) esuadxg xe] ow0ouy SO'LI6'Eb I¢ 0s. os'815°81 XB] swodU] s1OJog sBunuIE PE9SESS sLecr09 0862619 Sesuadieg SuneIedO THIOL Os 6st'T os 68i'T Os 68I'T (@ougO) semmxty 7 aNyUIN — uoHTeISaIdaq or oso'6l 00°SPS‘LT 00'099'ST 20 juauTUdIsUOD, 6c 00P'T 09'6Se'1 o00ze'l esuadxg uoneyodsues |, ocoes oorors 00'000'r sosuadxg Suisnreapy o0'00s oo'o0s o0'00s sdoysyio(y pur sreuruog 999ILT 00°€89' on'o.9'e ‘sosuaor] pue sHULiog o0'0€'9¢ 00'000'¢€ o0'000'0¢ asuadxg soueyes OO1IS? Oo'lIs? OTIS? 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Evaluation of Assets and Liabilities Current Ratio Current Assets Current Liabilities eSSSSSSSS———sesesessssssssSSe Formula: ‘Year Current Assets Current Liabilities Current Ratio 2018 45,151.38 5,408.85 8.35 :1 2019 73,858.33 10,098.39 73121 2020 107,692.49 13,043.41 8.26 21 Current Ratio is a measure of short-term debt paying ability. It shows how capable a business is to pay its short-term debt. The current ratios within the 3 years of operation are high enough to pay the current obligations of Imaje. They can pay as high as 8.26 times of its current obligation on 2021. Return on Investment Average Net Income Formula: Investment Year Net Income 2019 P 18,029.50 2020 33,661.31 2021 43,478.05 Total P 95,168.86 Average P 31,722.95 = 31,722.95 61,212.38 Return on Investment = 51.82% ‘Scanned with CamScanner 46a7 Return on investment determines how much earning the business will get from every peso invested. On the proposed Project Imaje Crafts, the profitability of the business will derive a 57.93% operation. Payback Period Formula: A + (B/C) from the investment during the first four years of Where: A= Year (with last negative balance) B=Cumulative cash at Year A C= Cash flow after Year A Year Cash flow Cumulative Cash flow 0 61,212.38 1 30,434.00 -30,778.38 2 31,706.96 928.58 3 36,834.16 37,762.74 a 30,778.38 Payback Period = 1+ 3) 9696 = 1+ 0970713558 Year/s: 1 Month: 11,6485627 Days: 19,4568106 Payback Period = 1 year, 11 months & 19 days ‘The Payback period of Imajeis 1 year, 11 months and 9 days after the production begins, which means that the business can recover its capital, and the partners can get their ‘Scanned with CamScanner43 money back from investment within two year of operation, Net Profit Margin Formula; AveT#8e Net Income Average Sales a SSSSSS——Oa Year Net Income Sales 2019 12,620.65 156,600.00 2020 23,562.92 175,450.00 2021 30,434.63, 196,504.00 Total 66,618.20 528,554.00 Average P 22,206.07 P 176,184.67 Net Profit Margin = arrerrya = 126039 = 2.60% The Net Profit Margin of Imaje Crafts for four years of operation is 12.60% which means that the 12.60% of the gross sales generated by the product is the net profit of the business. Scanned with CamScannerX. SOCIO-ECONOMIC srupy Handicrafts are unique expressions that represent the culture, tradition and Bete OS TIS 6 oe oF ork hee ged oe completely by hand or using only simple tools. It fulfills a positive need in the daily life of people and also acts as a vehicle of self-expression, Traditionally considered a cottage industry and one of the important and creatively productive sectors, most of the handicraft continues to flourish due to their utility, availability to the common people and Popularity in local as well foreign markets. Handicraft is a broad and diversified industry which products are produced completely either by hand or with the help of tools, using indigenous materials that are essential in maintaining the environmental balance. United Nations Educational, Scientific and Cultural Organization/ Information Technology Community said that the handcrafted stuffs’ most substantial component in the production is the direct manual contribution of the artisan, They are made of raw materials with enormous supply, which is capable of crafting products in large quantities. Such products can be aesthetic, artistic, creative, culturally attached, decorative, practical, traditional, religiously and socially symbolic and significant. (UNESCO/ITC Manila, Philippines, 1997). A. Contribution to the Economy Cottage industry, where handicrafts sector is included, has become a vital element in the economy of tourism oriented nations. This is even more in a global economy where gly related to the preservation of culture and economic opportunities have been increasing environment, What is amazing about handicraft is, talents and skills is giving value to materials that are usually thrown and considered worthless. Scanned with CamSeanner 49Locally available raw materials are observed to be the main input for its creation. Although these raw-materials are sometimes available free of cost for now, they will acquire some on a minimal basis in the future, especially if the company will depend on banana growers. Another observable fact about the raw-material is its rapid growth or “mabilis dumami”. So supply will not be an issue in the future. The proponents will only need to find someone to source their ‘supplies from if demand rises in the future. The Economic Importance of the product Barani handcrafted bags will play an important part in terms of economic development. Aside from the product's aesthetic and cultural extents, its production can Provide ample opportunities for employment to unschooled applicants with skills or those that are willing to learn. Other socioeconomic importance of the production: * Itonly requires minimum expenditure and infrastructure to establish. © It can create jobs at a minimal cost. © It uses existing skills and locally available raw materials that will never run out of supply. Inputs required can easily be provided and product adaptation is less expensive than investing in energy, machinery or technology. © Income generation through producing handcrafted bags does not disturb the cultural and social balance of either the home or the community. * Offers people (women and men) opportunities to obtain decent and productive work in conditions of freedom (no discrimination in age, ethnicity, educational standing, etc.), equity (Treatment of different views or opinions equally and fairly), and human dignity (self-worth). Scanned with CamScanner 50‘There are vast opportunities to battle poverty and improve living standards. ‘The maker/originator of barani will ensure home school a ttle of respect for, and local government a sense of pride to, the product. Barani is a locally owned independent business. It will retum a higher Percentage of revenue to the community than chains of franchise businesses. Consumer spending to locally owned businesses would create new jobs and support in local wages, Encourages integration to municipal and local levels for tourism purpose. B. Contribution to the Society Gender-wise, there will be a great domination of female labor in handcrafted bag making. Aside from this, the product can offer buyers some surprising side benefits: Environmental wise, barani handcrafted bag is green. It uses eco-friendly material that is handy and biodegradable, and takes less energy than a mass production assembly line, which makes it more environmentally sustainable. The handcrafted product is supporting the creativity and skills of local artisan. Buying barani products means helping eco-conscious business improve their craftsmanship and the local community as well. It Will also increase awareness in the value of “non-important materials” becoming valuable ‘when incorporated to right ideas, hard work, and proper funding, Only good quality products arrive to the market. One of the most prevalent, although least quantifiable, reason for consumers choosing handcrafted goods is the uniqueness and creativeness of designs that can also be personalized. They truly Patronize products that amaze them. Barani handcrafted bags can also meet the customers’ needs better. Often with ‘Scanned with CamScannerhandmade goods, cust - Sood, customers have the option of customizing their purchase, Because the artisan can be dealt directly or reach easily, they might be open to tweaking certain aspects of the product Specifically to fit customers’ needs. Cultural Importance Handicrafts play very important role in representing the culture and traditions of any country or region. They are substantial medium to preserve the rich traditional art, heritage and culture, skills and talents which are associated with people’s lifestyle and history. The most important character of the product is that, it does not disturb the cultural and social balance of the community. Barani handcrafted bags preserve the tradition and culture while utilizing the skills and talents of the artisan. The accessories that will be included in personalized design will represent a place history or arts. (ie. carved chili, mayon volcano formed from coconut shell.) Both the creation and success of barani handcrafted bags will directly affect the following: The makers (sewist, designer/pattem-maker, artisan) ~ in learning the skills that anyone ean be proud of, the company and the employee ~ for guining financial reward for doing something useful to the end users of the erafted product; the local goverment ~ by promoting tourism, which help cieularize the Filipin/Bicol culture as rnment — ; well; and the environment ~ worthless banana sheath that is usually get wasted can be ; and the em Utilized in creating a meaningful product; squandered trunk is lessened, the use of bags is ible harm it could bring the i be reduced, so is the possil 7 made from synthetic leather can ; “The end result will be promating cohesion and stability of the society. environment. el Scanned with CamScanner 52XI. CONCLUSION The handbag industry has always been a trending market in the fashion industry. But despite the stylish looks, most of those bags were synthetically made and are harmful to the environment when dumped. So, considering the environmental situation and in respect to the client’s budget, the purchase of barani handcrafted bags is wise. The price is affordable, the product is appreciable, the raw material is biodegradable, the concept is Progressive, and the company is expandable. There is a great opportunity to move forward. Owing to the expected rise of demand, the manufacturers of barani handcrafted bags will spend time improving the products by producing quality strand of banana fiber or barani, Imaje will show the handcrafted bag as one way to display a profitable expression of personality in business. The proponents of Barani foresee and believe that the proposed business is practical and feasible because it will only requires minimum expenditure to establish. In as much as it uses existing skills and raw materials are locally available, and product adaptation is less expensive. The results of the study shows that in every peso invested, the proponents can carn 79% in the first three years of operation. The total projected cost is P61,163.48 and it will be recovered after 1 year, 11 months and 19 days. Scanned with CamSeanner 530 Annex A BUSINESS CARD CIELO MARIE B. BRIOSO ACU cielomarie.bb@gmail.com Matnog, Basud, Camarines Norte For order or inquiry, call: (054) 721-2562 Aull ANNIE STEFANY S. ESTEVES anniesteves@gmail.com Matnog, Basud, Camarines Norte For order or inquiry, call: (054) 721-2562 Scanned with CamScanner 56Note: Annex B COMPANY LOGO TAG/LABEL ot geil prodetef > @MaAIe Label will be attached to the barani bag with I me a ogo sawn n igre S ram pe 13 Scanned with CamScanner 87Annex C SAMPLE PACKAGING ‘Scanned with CamScannerAnnex D SCHEDULES OF EXPENSES Scanned with CamSeanner60 Schedule 1 TOOLS AND. EQUIPMENT Quantit bee Tunit) Unit Cost Total Cost Usefll Depreciation Sewing Machine Ipc 10,000.00 10,000.00 10 1,000.00 Wringer 1 pe 4,000.00 4,000.00 10 400.00 Stripping Machine 1 pe 500.00 500.00 ee I pe 500 500.00 Boe I pe 280.00 280.00 Fire Extinguisher 1 pe 2,500.00 2,500.00 goal P 13,635.00 P 1,400.00 ‘Source: Daet Public Market/Establishment Schedule 2 FURNITURES AND FIXTURES Items a Unit Cost Total Cost Useful Depreciation Wooden Table 3pe 3,200.00 9,600.00 10 960.00 Monobloc Chairs 13 pe 335.00 4,355.00 10 435.50 Filing Cabinet Ipe 3,150.00 3,150.00 10 315.00 ‘Wooden Rack I pe 3,440.00 3,440.00 10 344.00 Total P 20,545.00 P 2,054.50 ‘Source: Citi Hardware Schedule 3 OFFICE SUPPLIES Ttems Quantity/Unit Unit Cost Monthly ‘Annually Record Book lpe 75.00 P75.00 75.00 Calculator 1 pe 120.00 120.00 120.00 Ballpen 2pes 5.00 10.00 100.00 BIR Receipt 20 pads 1,800.00 1,800.00 1,800.00 P 2,005.00 TOTAL ree Source: Daet Public Market/Establishment Scanned with CamSeanner61 Schedule 4 TRANSPORTATION EXPENSE Particular Monthly 2019 2020 2021 Freight In 100.00 1,000.00 1,030.00 1,060.90 Freight Out 132.00 1,320.00 1,359.60 1,400.39 Note: Delivery is twice monthly; Freight-in and freight-out will Increase by 3% annually Schedule 5 RENT EXPENSE Particular Monthly 2019 2020 2021 Production Unit 1,000.00 12,000.00 12,000.00 12,000.00 Machine Rent 2,000.00 20,000.00 20,000.00 20,000.00 Note: Rent Expense will remain constant. Schedule 6 COMPENSATION ALLOWANCE Position Monthly 2019 2020 2021 Manager 1,000.00 10,000.00 12,000.00 14,400.00 Finance Officer 1,000.00 10,000.00 12,000.00 14,400.00 Marketing Officer 1,000.00 10,000.00 12,000.00 14,400.00 TOTAL 3,000.00 30,000.00 PA43,200.00—_P51,840.00 Note: Compensation Allowance of oficers wil increase by 2096 ‘annually. Schedule 7 SALARIES EXPENSE il Monthly 2019 2020 2021 Position Daily 1,210.00 12,100.00 14,520.00 17,424.00 Production Officer 60.50 “increase by 20% annually. Note: Salaries for direct labor will Scanned with CamScanner62 Schedule 8 EMPLOYEES BENEFITS (SSS) —_.!,___ sss Position Monthly 2019 2020 2021 Manager 83.70 837.00 837.00 837.00 Finance Officer 83.70 837,00 837.00 837.00 Marketing Officer 83.70 837.00 837.00 837.00 TOTAL P 251.10 P 2,511.00 P 2,511.00 P 2,511.00 ‘Note: Company SSS contribution for employees is fixed in three year tne Schedule 9 LICENSES AND PERMITS Particular 2019 2020 2021 Community Tax 50.00 51.00 52.02 SEC Business Registration 2,020.00 - - Barangay Clearance 100.00 102.00 104.04 BIR Registration 500.00 510.00 520.20 Fire Permits 500.00 510,00 520.20 Mayor's Permit 500.00 510.00 $20.20 TOTAL 3,670.00 P1,683.00—P1,716.66 ‘Note: Permits and Licenses will increase by 296 annually: SEC Registration is once in every 5 years. Schedule 10 ADVERTISING EXPENSE a Particular 2019 2020 2021 Business Card 500.00 510.00 520.20 Flyers 500.00 510.00 520.20 TOTAL P 1,000.00 P 1,020.00 P 1,040.40 eee Nowe Business card will narease by 2% anraaly, while brochures will ony be incurred in the first year of operation or when a new product is being Scanned with CamScannerSchedule 11 PACKAGING AND LABELING oT Monthly 2018 2019 2020 Carton Box P 5,760.00 P 5,932.80 P 6,110.80 Printed Logo/tag 576.00 633.60 697.00 Wax Paper 1,152.00 1,186.56 1,478.89 TOTAL, P 7,488.00 P 8,489.26 P 1,222.20 ‘Note: Packaging and labeling will increase by 3%, and 10% in volume, anally. Schedule 12 DIRECT MATERIALS Raw Materials Monthly Cost 2019 2020 2021 Gina Cloth 600.00 6,000.00 6,600.00 7,260.00 Handles and Straps 480.00 4,800.00 5,280.00 5,808.00 Canvas Cloth 137.50 1,375.00 1,512.50 ‘1,663.75 Zipper (big) 336.00 3,360.00 3,696.00 4,065.60 Zipper (small) 49.00 490.00 539.00 592.90 Zipper slider (big) 96.00 960.00 1,056.00 1,161.60 Zipper Slider (sml) 72.00 720.00 792.00 871.20 ey 48.00 480.00 528.00 580.80 Banana trunk 160.00 1,600.00 1,760.00 1,936.00 Hooks and Rings 160.00 1,600.00 1,760.00 1,936.00 Adjusting Buckles 80.00 800.00 880.00 968,00 TOTAL 26,622.00 22,185.00 34,170.80 P38,724.70 Note: Raw materials will: Scanned with CamScannerSchedule 13 INDIRECT MATERIALS Particular an — a Cotton thread 602.00 a — Acrylic Emulsion 160.00 181.28 205.39 TOTAL 762.00 863.35 978.17 Note: Indirect materials will increase by 3% annually and volume will increase also by 10% anmually. Schedule 14 FACTORY SUPPLIES Particular 2018 2019 2020 2021 Scissor (big) 120.00 Scissor (small) 50.00 Needles (machine) 30.00 30.90 31.83 32.78 Needles (manual) 15.00 15.45 15.91 16,39 Tailor’s chalk 20.00 20,60 21.22 21.85 Tape measure 6.00 Meterstick 25.00 Pins and Clips 30.00 Thimble 18.00 Emery bag 10.00 acmea 300 19.10 19.67 Paint Brush 18.00 18.54 . z Dagger 80.00 85.49 88.05 90.70 TOTAL 452.00 iy: some supplies will be incurred only in the first year Note: Factory supplies will increase by 396 canamall of operation Scanned with CamScanner65 Schedule 15 FACTORY OVERHEAD Particular 2019 2020 2021 Indirect Materials 762.00 863.35 978.17 packaging & Labelling 7,488.00 8,489.26 9,612.81 Factory Supplies 452.00 85.49 88.05 Depreciation 2,265.00 2,265.00 2,265.00 Rent (Production Place) 12,000.00 12,000.00 12,000.00 Rent (Machinery) 20,000.00 20,000.00 20,000.00 TOTAL 42,967.00 43,703.10 44,944.04 _ Schedule 16 SANITATION EXPENSE Unit CosvPiece 2019 2020 2021 Broom 75.00 75.00 S ~ Dustpan 34.00 34,00 = - Trash Can 95.00 95.00 - S TOTAL 204.00 204.00 - = ‘Note: Sanitation expense will increase by 296: annually. Schedule 17 SEMINARS AND WORKSHOP Particular 2018 2019 2020 2021 Seminar 7500.00 1500.00 500.00 500.00 Note: Seminar and workshop willremein consent Scanned with CamScanner