Final - Lucid Timber Liquid Wax Feasib Updated

A PROJECT FEASIBILITY STUDY ON THE PROPOSED MANUFACTURING OF
MAHOGANY BARK LIQUID WAX AT TINGUB, MANDAUE CITY, CEBU
A Feasibility Study Presented to
Industrial Engineering Department of College of Engineering
University of Cebu Main Campus
Cebu City, Philippines
In Parial Fulfillment of the Requirements in
IE 411 (Project Feasibility Study)
Camilotes, Zaira Auza
Embalzado, Christine
Matunog, Cristofer Niño
Mercado, Jeffsymel
Rodrigo, John Christian
BSIE-4
AY 2021-2022
TABLE OF CONTENTS
CHAPTER PAGE
I. INTRODUCTION
Rationale of the Study i
Statement of the Problem ii
Significance of the Study iii
Research Design iv
Research Environment iv
Research Methods and Instruments vii
Research Respondents viii
Scope and Limitation of the Study ix
Definition of Terms ix
II. MARKETING ASPECT
Introduction 3
Executive Summary 5
Major Assumptions 6
Product Description 7
Sample Size Calculation 10
Profile of the Target Market 11
Summary of Survey Questionnaire Results 12
Demand Analysis 17
Demand Computation using the Four Methods of 28
Projection
Past and Projected Demand Summary 37
Line Fitting of Past and Projected Demand 39
Supply Analysis 40
Basis for Supply Computation using the Four Methods of 41
Projection
Past and Projected Supply Summary 56
Line Fitting of Past and Projected Supply 58
Demand and Supply Gap 59
Market Share 60
Competitor’s Profile 64
Marketing Strategy 67
Pricing Scheme 86
III. TECHNICAL ASPECT
Introduction 96
Executive Summary 97
Major Assumptions 98
Product Characteristics 99
Bill of Materials 101
Machineries & Equipment 106
Capacity Planning 128
Direct Material Re-order Point 149
Inventory Management 155
Cebu Port Authority’s Terms and Conditions 135

Import Charges 135
Freight Calculations 146
Manufacturing Process 157
Process Flow Chart 163
Flow Process Chart 165
Worker and Machine Process Chart 166
Space Requirements 171
Factor Rating of the Three (3) Locations 177
Manufacturing Layout 181
Material Handling 195
Quality Assurance Procedure 197
Maintenance Requirements 198
Uniform & ID Design 200
Waste Management 204
Occupational Health and Safety Management 210
Chemical Safety Procedure on Polyurethane 211
Safety Equipment 205
List of Establishments 212
Supply Chain Management 216
Cost Allocation 218
Overall Costs 235
Utilities 236
Manpower Requirements 242

List of Suppliers 245
IV. MANAGEMENT ASPECT
Introduction 249
Profile of the Proponents 252
Title of the Project 252
Company Name 253
Company Logo 254
Mission-Vision 255
Core Values 256
Form of Business Ownership 257
List of Investors 259
Organizational Chart Analysis 261
Organizational Structure 260
Job Description and Specification 264
General Requirement for Jobs 265
Manpower and Security Agencies 284
Training and Development Program 289
Personnel Plantilla 291
Basis for Increase Salaries and Wages 293
Inflation Rate in the Philippines 294
Performance Appraisal 295

Employee Benefits and Wages 298
Holiday Pay Contribution 299
SSS Contribution 309
Pag-ibig Contribution 315
Phil-Health Contribution 319
13th Month Pay Contribution 325
Employee Assistance Program 327
Disciplinary Action 328
Code of Conduct 330
Violation and Remedial Action 329
Company Guidelines 332
Breaktime Schedule 333
Weekly Time Schedule of Workers 335
Gantt Chart 336
Intellectual Property Right 338
List of Essential Permits and Licenses 341
V. FINANCIAL ASPECT
Introduction 344
Project Cost 347
Financial Notes 349
Financial Schedule
Projected Income Statement 404
Income Statement Analysis 405
Common-size Income Statement 406
Statement of Cash Flow Analysis 407
Projected Statement of Cash Flows 408
Projected Balance Sheet 410
Balance Sheet Analysis 411
Common-size Balance Sheet 412
Financial Ratios 416
Payback Period 435
VI. SOCIO-ECONOMIC ASPECT
Introduction 440
Impact Report 441
Benefits to Societal Sectors 442
Sensitivity Analysis 445
Chemical Polyurethane Safety Precautions 446
VII. FINDINGS AND CONCLUSION 447
VIII. APPENDIX SECTION
Appendix A: Survey Questionnaire 451
Appendix B: Formal Letters, Cash Voucher Forms, and 454
Contracts
Appendix C: Bibliography 468
Appendix D: Curriculum Vitae 477

LIST OF TABLES
TABLE NO. MARKETING ASPECT PAGE
1 Number of Sample Size in Each Area 11
2 Age of Respondents 12
3 Address of Respondents 12
4 Monthly Household Income 13
5 Respondents that have Wooden furniture/floorings 13
6 Have you heard about Mahogany Bark Liquid Wax? 13
7 How often do you apply color enhancement in your 14
Wooden furniture/floorings?
8 The Brand of Color Enhancement Product that the 14
Respondents preferred
9 How often do you buy wood color enhancement/coating 14
products?
10 Respondents’ willingness to avail lucid timber liquid wax 15
11 Respondents’ willing to avail proposed product at 15
different price range
12 Respondents’ preference of size of the proposed 15
product
13 Are you able to purchase our product based on you 16
monthly income/allowance
14 Respondents’ preferred advertising means 16
15 Respondents’ preferred place of purchasing proposed 16
product
16 Historical Data for Cebu Province 19
17 Historical Data for Cebu City 19
18 Historical Data for Mandaue City 20
19 Historical Data for Lapu-Lapu City 20
20 Actual Market Calculation for Cebu Province 22
21 Actual Market Calculation for Cebu City 23
22 Actual Market Calculation for Mandaue City 24
23 Actual Market Calculation for Lapu-Lapu City 24
24 Total Number of Household in Four Areas of Target 25
Market
25 Percentage within target market location 26
26 Percentage of Household who has wooden 26
furniture/floorings
27 Percentage of willing to purchase Lucid Timber Liquid 26
Wax
28 Percentage of respondents who are able to purchase 26
based on their monthly income/allowance
29 Computation for potential and actual demand per year 27
30 Arithmetic Straight Line Demand Historical Value 29
31 ASL Demand Projected Value 30

32 Arithmetic Geometric Curve Demand Historical Value 31
33 AGC Demand Projected Value 32
34 Statistical Straight Line Demand Historical Value 33
35 Statistical Straight Line Projected Value 34
36 Statistical Parabolic Curve Demand Historical Value 35
37 Statistical Parabolic Curve Demand Historical Value 35
Cont’d.
38 Statistical Parabolic Curve Projected Value 36
39 Past & Projected Values of Demand 37
40 Methods of Demand Projections Rankings 38
41 Average Supply per Large-Scale Hardware Stores 42
42 Average Supply per Small to Medium Scale Hardware 43
Enterprises
43 Combined Supply 44
44 Projected Annual Supply Computation 45
45 Arithmetic Straight Line Supply Historical Values 48
46 Arithmetic Straight Line Supply Projected Values 49
47 Arithmetic Geometric Curve Supply Historical Values 50
48 Arithmetic Geometric Curve Supply Projected Values 51
49 Statistical Straight Line Supply Historical Values 52
50 Statistical Straight Line Supply Projected Values 53
51 Statistical Parabolic Curve Historical Values 54
52 Statistical Parabolic Curve Historical Values Cont’d. 54

53 Statistical Parabolic Curve Projected Values 55
54 Past and Projected Supply 56
55 Methods of Supply Projection Rankings 57
56 Demand and Supply gap 59
57 2020 Market Share 60
60 Competitors Profile 65
61 Online Advertising Expenses 78
62 Offline Advertising Expenses 78
63 Grand Opening Expense 81
64 Direct Materials Cost 88
65 Direct Labor Cost 89
66 Manufacturing Overhead Cost 90
67 Summary of Manufacturing Overhead Cost 91
68 Product Selling Price 91
69 Projected Price of the Product 92
TECHNICAL ASPECT
70 Physical Characteristics of Lucid Timber Mahogany1 100
71 Annual Usage Rate Bill of Materials 101
72 Single Unit Usage Rate Bill of Materials 101
73 Supplier Information of Mahogany Bark 102
74 Kilograms Needed Daily for Mahogany Bark 103

75 Supplier Information of Polyurethane 103
76 Kilograms Needed Daily for Polyurethane 104
77 Supplier Information of Metal Tin Can Container 105
78 Other Raw Materials 105
79 Pulverizing Grinder Mill Machine Specifications 108
80 Boiling Tank Industrial Stainless Steel Jacketed Mixer 110
Kettle Tank Specifications
81 Cleaning Filter Housing Machine Specifications 112
82 Storage Cooling Tank Specifications 114
83 Chemical Storage Tank with Wheels Specifications 116
84 Mixer Paint Machine Specifications 118
85 Paint Filling Machine Specifications 120
86 Ink Jet Code Printer Specifications 122
87 Conveyor Belt Specifications 124
88 Coating Adhesion Tester Specifications 125
89 Summary of Estimated Machine Cycle Time 126
90 Gantt Chart Production Schedule of Machines 127
91 Design Capacity 129
92 Operation Time 130
93 Summary of Working Days 130
94 Annual Capacity Planning 132
95 Raw Material Balancing Inputs & Losses 133
96 Daily Material Weight Requirement 134

97 Harbor Fees 136
98 Wharfage Fees 136
99 Container Volume Specification 137
100 List of Goods on Containerized and Non-Containerized 137
Cargo
101 Classification of Cargo on Machineries and Raw 138
Materials
102 Stevedoring Charges 139
103 Arrastre Charges 141
104 IPF Rate 142
105 Cost of Shipment on Containerized Cargo 143
106 Cost of Shipment on Non-Containerized Cargo 144
107 Freight Sea Cost Charges Calculations 145
108 Freight Calculations of Containerized Cargo Machines 146
109 Freight Calculations of Non-Containerized Cargo Metal 147
Tin Can
110 Freight Calculations of Non-Containerized Cargo 148
Polyurethane
111 Direct Material Reorder Point and Safety Stock 150
Calculation
112 Economic Order Quantity 151
113 Ordering Costs Calculation 152
114 Ordering Costs 152

115 Summary of ROP, EOQ, and Safety Stock 153
116 Number of Ordering Point 153
117 Length of Ordering Cycle 154
118 Process Flow Chart 163
119 Worker and Machine Process Chart 166
120 Summary of Worker and Machine Process Chart 167
121 SIPOC Diagram 168
122 SAPCE Requirements of Machines for Production 172
123 Space Requirements of other Areas and Rooms 173
124 Summary of Space Requirements 174
125 Comparison of Three (3) Location for Production 174
126 Qualitative Factor Rating of Three (3) Locations 177
127 Quantitative Factor Rating of Three (3) Locations 178
128 Pipe and Valve Systems Cost 194
129 Leasehold Warehouse Improvement 194
130 Maintenance Checklist of Machineries 198
131 Maintenance Checklist of Building 199
132 Maintenance Checklist of Service Lines 199
133 Maintenance Checklist of Production Equipment 199
134 Maintenance Checklist of Vehicle 199
135 Waste Management Practices 204
136 Emergency Hotlines 206
137 Safety Disciplinary Action Offenses 208

138 Cebu City Establishments 213
139 Cebu Provinces Establishments 214
140 Mandaue City Establishments 215
141 Lapu-Lapu City Establishments 216
142 Machinery Allocation 218
143 Production Equipment Allocation 219
144 Indirect Materials Allocation 221
145 Safety Equipment and Signages Allocation 222
146 Uniform and ID Allocation 223
147 Sanitary Equipment Allocation 224
148 Sanitary Materials Allocation 225
149 Office Furniture and Fixture Allocation 227
150 Office Supplies Allocation 232
151 Delivery Truck Allocation 234
152 Overall Cost 235
153 Electricity Consumption on Machines 237
154 Electricity Consumption on Office Equipment and 238
Lightings
155 Water Consumption 239
156 Internet Consumption 240
157 Transportation Expense 241
158 Rental Expense 242
159 Calculation of Manpower Requirements Direct Labor 243

160 Manpower Requirements Direct Labor 243
161 Manpower Requirements Indirect Labor 244
162 Suppliers of the Machineries 245
163 Suppliers of Office Equipment, Supplies, and Utilities 245
MANAGEMENT ASPECT
164 Profile Of The Proponents 252
165 List Of Investors 259
166 List Of Manpower And Security Agencies 285
167 Training Cost 290
168 Direct Labor Salary 291
169 Indirect Labor Salary 292
170 Monthly Inflation Rate For The Past Years 293
171 Projected Inflation Rate In The Philippines 294
172 Inflation Rate Forecast Calculation 294
173 List Of Holidays 299
174 Holiday Pay Computation 2022 300
179 SSS Contribution 2022 309

184 Pag-ibig Contribution 2022 315
185 Pag-ibig Contribution 2023 - 2026 316
186 Updated Phil-Health Contribution 318
187 Phil-Health Contribution 2022 319
192 13th Month Pay for 2022 to 2026 325
193 Violation and Remedial Action 329
194 Break Time Schedule 334
195 Weekly Time Schedule 335
196 Gantt Chart 336
197 Insurance Fees 338
198 Trademark Fees 339
199 Industrial Design Fees 340
200 Patent Fees 340
201 List of Permit and License Fees 341
FINANCIAL ASPECT
202 Project Cost 347
203 Project Feasibility Cost 350

204 Partner’s Capital 350
205 Leasehold Warehouse Improvement 350
206 Rent and Security Deposit 351
207 Office Furniture & Fixtures 351
208 Office Supplies 352
209 Safety Equipment and Signages 352
210 Sanitary Equipment 353
211 Sanitary Materials 353
212 Machineries 354
213 Production Equipment 354
214 Delivery Truck Cost 355
215 Direct Materials (3-Month Allocation) 355
216 Indirect Materials 355
217 Utilities Expense 356
218 Uniform and ID Expense 356
219 Grand Opening 356
220 Salaries and Wages 357
221 Repairs and Maintenance 358
222 Permits and Licenses 359
223 Advertising Expense 359
224 Training Cost 360
225 Waste Management Cost 360
226 Transportation Expense 360

227 Other Income 360
228 Shipment Cost Containerized Cargo 361
229 Shipment Cost Non-Containerized Cargo 362
230 Insurance Expense 363
231 Intellectual Property Right Costs 363
232 Sales 365
233 Cost of Goods Sold 366
234 Operating Expenses 367
235 Raw Materials Purchases 368
236 Raw Materials Inventory Mahogany Bark 369
237 Raw Materials Inventory Polyurethane 369
238 Raw Materials Inventory Metal Tin Can 370
239 Raw Materials Inventory Carton Boxes and Total Raw 370
Materials Ending
240 Direct Labor Salary 371
241 Indirect Labor Salary 372
242 Utilities Expense 373
243 Rent Expense 373
244 Indirect Material Expense 374
245 Permits and Licenses 375
246 Insurance Expense 376
247 Advertising Expenses 376
248 Repairs and Maintenance Cost 377

249 Sanitary Materials Expense 377
250 Office Supplies 377
251 13th Month Pay 378
262 Pag-Ibig Contribution 389
263 Holiday Pay 2022 390
268 Depreciation Expense 395
269 Other Income 395
270 Transportation Cost 396
271 Waste Management Cost 396

272 Manufacturing Cost 396
273 Retail Price 397
274 Vat Payable 398
275 Partner’s Equity 399
276 Withholding Tax Payable 400
277 Total Salary Benefits 401
278 Projected Income Statement 404
279 Common-Size Income Statement 406
280 Projected Cash Flows 408
281 Projected Balance Sheet 410
282 Common-Size Balance Sheet 412
283 Statement of Partner’s Equity 414
284 Current Ratio 417
285 Acid Test Ratio 418
286 Debt Ratio 420
287 Return on Equity 422
288 Total Asset Turnover 424
289 Fixed Asset Turnover Ratio 427
290 Inventory Turnover 428
291 Gross Profit Ratio 430
292 Operating Margin Ratio 431
293 Return on Asset 433
294 Payback Period Computation 436

LIST OF FIGURES
FIGURE INTRODUCTION PAGE
NO.
1 Proposed Location of the Business V
2 Locale of the Study of the Proponents VI
3 Flow of the Study VII
MARKETING ASPECT
4 Label of the Product 8
5 Metal Tin Can Container 9
6 Demand Calculation Process 18
7 Past and Projected Demand Line Fitting 39
8 Line Graph of Past and Projected Supply 58
9 Past and Projected Demand and Supply Gap 59
10 2020 Market Share Pie Chart 61
13 Logo Design 68
14 Facebook Page 70
15 Instagram Page 71
16 Twitter Page 72
17 Tiktok Account 72
18 Facebook Ad 73
19 Youtube Ad 74
20 Instagram Ad 74
21 E-Billboard Design Ad 75
22 Radio Commercial Speech Ad 76
23 Newspaper Classified Ads Design 77
24 Stall Advertising at Hardware Stores 80
25 Channel of Distribution 84
TECHNICAL ASPECT
26 Product Structure Tree 100
27 Mahogany Bark 102
28 Polyurethane 103
29 Metal Tin Can 1L Container 104
30 Pulverizing Grinder Mill Machine 107
31 Boiling Tank Industrial Stainless Steel Jacketed Mixer 109
Kettle Tank
32 Cleaning Filter Housing Machine 111
33 Storage Cooling Tank 113
34 Chemical Storage Tank with Wheels 115
35 Mixer Paint Machine 117
36 Paint Filling Machine 119
37 Ink Jet Code Printer 121
38 Conveyor Belt 123
39 Coating Adhesion Tester 125

40 Production Process of Lucid Timber Mahogany Liquid 159
Wax
41 Process Flow Diagram 161
42 Legend Symbols of Process Flow Diagram 162
43 Flow Process Chart 165
44 Manufacturing Warehouse Map Location 179
45 Exterior Image of Warehouse 180
46 Interior Image of Warehouse 180
47 Floor Plan 2D Layout 183
48 Legend of Symbols in 2D Layout 184
49 Isometric View of Lucid Pinnacle Manufacturing 185
Company Layout
50 Isometric View Close up of Lucid Pinnacle 186
Manufacturing Company Machines Layout
51 Office Layout 187
52 Meeting Room Area 188
53 Canteen 189
54 Locker Room Area 190
55 Comfort Room 191
56 Guard Post Area 192
57 Raw Materials and Finished Goods Area 193
58 Quality Assurance Procedure 197
59 Uniform Design 200

60 Identification Card Design 201
61 Employee Disciplinary Action Form 209
62 Product Supply Chain 217
MANAGEMENT ASPECT
63 Lucid Pinnacle Manufacturing Logo 254
64 Organizational Structure 261
65 Recruitment and Selection Process 262
66 Performance Appraisal Form (1st Page) 296
67 Performance Appraisal Form (2nd Page) 297
68 Updated SSS Contribution 307
69 Pag-ibig Contribution 314
FINANCIAL ASPECT
70 Current Ratio 417
71 Acid Test Ratio 419
72 Debt Ratio 421
73 Return on Equity 423
74 Asset Turnover Ratio 425
75 Fixed Asset Turnover 427
76 Inventory Turnover 429
77 Gross Profit Ratio 430
78 Operating Margin Ratio 432
79 Return on Assets Ratio 434

SOCIO-ECONOMIC ASPECT
80 Schematic Diagram 444

ACKNOWLEDGEMENT
This study becomes possible with the help and kind support of the following
individuals. We would like to extend our sincere thanks to all of them.
Foremost, we want to offer this appreciation to our God Almighty for the
guidance, the strength, peace of mind, and good health to finish this study.
We want to express our gratitude to our family for encouragement and
support financially and morally which really helped us complete the feasibility
study. You are the reason why we continue to surpass our limits amidst the
challenges we encounter.
We are highly indebted to our panelists for guiding us through this feasibility
study. We thank you for all the knowledge, ideas, and constructive criticisms to
make our feasibility study a good one.
Lastly, we like to extend our gratitude and appreciation to Engr. Clofer V.
Suson for imparting his knowledge and expertise and guiding us throughout the
entire time for this feasibility study.
THE RESEARCHERS
i
INTRODUCTION
THE PROBLEM AND ITS SCOPE
INTRODUCTION
The Rationale of the study
Waxing surfaces is a finishing technique that was popularized in the 20th
century. It is made of solvents and synthetics like beeswax or carnauba. This kind
of product can help preserve floors by protecting them from marks, spill stains, and
scratches. In conducting this study, we are going to introduce our product
“Mahogany Bark” to the market in a unique way by having the extract coming from
the mahogany bark and making it into a liquid wax by combining other essential
components. By developing a feasible product, we hope we can introduce a new
product into a market by utilizing the unused mahogany bark from the trees since
in logging the mahogany trees in the forest, the mahogany bark is discarded and
can no longer be used.
According to Sukardiman & Ervina, (2020), The chemical compounds of
Swietenia mahagoni (L.) Jacq that are present are ethanolic, methanolic, aqueous,
hexane extracts of mahagonis's seed/bark or leaves. S. mahagoni was potentially
used and developed as an antidiabetic source. More comprehensive clinical trials
and the identification of active components are required before it can be used as
an anti-diabetic medication. According to the study conducted by Sinha & Verma
(2013), when employing homemade cleansing agents instead of commercial
cleansing agents, a substantial difference in the efficiency of the degree of
whiteness, eco-friendliness, and health friendliness was discovered.

ii
INTRODUCTION
In the national setting, no studies have yet been conducted for developing
mahogany bark-based products. The researcher’s feasibility study entitled “Insert
Title here’ is a developing example of a local study here in the Philippines. To fill
in the gap of knowledge of other studies, this product will be analyzed whether it
its feasible to the market or not.
STATEMENT OF THE PROBLEM
This study will assess the project feasibility on the proposed manufacturing
of mahogany bark liquid wax in Casuntingan, Mandaue City, Cebu as a basis for
the proposed innovation of the usable mahogany bark and to determine the
effectiveness as an alternative for commercial floor wax at different residence,
establishments, and offices of whole Cebu province which has a flooring type of
hardwood. The researchers tend to seek answers to the following questions:
1. The proposed project feasibility under each aspects are the following:
1.1 Marketing Aspect;
1.2 Technical Aspect;
1.3 Management Aspect;
1.4 Financial Aspect; and
1.5 Socio-Economic Aspect
2. Based on the results of the study, what recommendations can be given to
the proposal?
iii
INTRODUCTION
SIGNIFICANCE OF THE STUDY
The results of the study will implicate the utilization of mahogany bark as an
alternative for liquid wax. These are the following individuals that would be of great
benefit to the following:
Household Owners - Those who were practicing the use of floor wax can use
Mahogany bark instead for polishing their wooden furniture and floors inside their
respective residences and observe such practice. Household owners can use
Mahogany bark as an alternative to commercial floor liquid wax for cleaning and
polishing wooden floors.
Commercial Industries and Agricultural Sectors – Following the demonstration
of the effectiveness, acceptability, and comparability of Mahogany bark with
commercial furniture and floor liquid wax, it was advised that commercial
companies involved in liquid wax manufacturing attempt to use mahogany bark as
an alternative ingredient for floor liquid wax manufacture. Farmers and others
involved in agriculture will be able to think mahogany bark’s usefulness.
Future Researchers - It is also suggested that additional researchers improve the
current technique for creating Mahogany bark as an alternative to commercial
liquid wax for improved effectiveness and acceptability in various types of flooring.
Area/s for Further Study - The study was only focused on the Mahogany bark as
the alternative floor wax for household use in the Philippines. It was limited to the
substitute components and characteristics of floor wax. For further examination,
the following problems were suggested:

iv
INTRODUCTION
1. The effectiveness or acceptability of Mahogany bark in other kinds of
polishing uses such as varnish.
2. The effectiveness or acceptability of different types of bark. (e.g Oak tree)
RESEARCH DESIGN
The researchers conducted the feasibility study with the use of the different
tools to gather information. The methods used to support the study is using the
quantitative data collection, specifically in gathering survey questionnaire results.
The researchers used online survey methods to gather data to household owners
in all parts of Cebu. Sequential Exploratory Design shall be observed as to develop
and online survey questionnaire and gather it numerically. The researchers use
purposive sampling where the researchers laid down a criterion especially if the
household owner does have a wood furniture or floor.
Research Environment
The locale of this study is in rented warehouse in Barangay Casuntingan
which is in the city of Mandaue, in the province of Cebu. The rent warehouse has
an area of 500 square meter.

v
INTRODUCTION
FIGURE 1: PROPOSED LOCATION OF THE BUSINESS
The study was conducted in University of Cebu-Main Campus 2nd floor
engineering building. The campus located at Sanciangko Street 6000 Cebu city.
vi
INTRODUCTION
FIGURE 2: LOCALE OF THE STUDY OF THE PROPONENTS

vii
INTRODUCTION
Research Methods and Instruments
The researchers used survey questionnaire through google form in order
to gather data and to ensure all gathered data are reliable. These data will be the
voice of the target market.
FIGURE 3: FLOW OF THE STUDY
1.) Is the proposed

project feasible under
each of the following
aspects:
a. Marketing Aspect;
b. Technical Aspect;
c. Management
Aspect; Analysis of The feasibility and
data gathered effectiveness of
d. Financial Aspect;
alternative floor wax
e. Socio-Economic
Aspect?
2.Based on the results
of the study, what
recommendations can
be given to the
proposal?
The instrument employed in this study where we could determine the
feasibility and effectiveness of using wood color enhancement products to every
household owner in Cebu City, Mandaue City, Lapu-Lapu City. In assessing our
major variable, the researchers conducted a house-to-house data gathering using
survey questionnaires through google form.

viii
INTRODUCTION
Research Respondents
The study utilized respondents from the target market on Cebu City,
Mandaue City, and Lapu-Lapu City. The researchers seek respondents in the
residents where the study is being conducted to participate in the survey needed
in this study. Researchers often believe that they can obtain a representative
sample by using a sound judgment, which will result in saving time and money.
Specifically, the researchers utilized the Yamane sample size formula to identify
the exact number of respondents needed in this study. It is computed through the
following formula:
Where:
𝑁 = 𝑠𝑖𝑧𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛
𝑛 = 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 𝑟𝑒𝑠𝑢𝑙𝑡
𝑒 = 5% 𝑎𝑠 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑒𝑟𝑟𝑜𝑟
ix
INTRODUCTION
Scope and Limitation of the Study

This study was focuses on the effectiveness of Mahogany bark liquid wax
at different residences of Cebu City, Mandaue City, and Lapu-Lapu City in which
their furniture and flooring type are wood and it will be based on management,
marketing, technical, socio-economic, and financial aspect of business. The
product will be disseminated in the target market location from those who are
willing to purchase our product. This feasibility study has reached its aim, there
were some unavoidable limitations. These limitations are mentioned below:
1. The effectiveness or acceptability of different types of bark.
2. Another means to produce mahogany bark liquid wax.
DEFINITION OF TERMS
1. Coloring Agent – are substances used to enhance the color of surfaces.
2. Extract – is the process of selectively removing a compound of interest from
a mixture using solvent.
3. Liquid Wax – a coloring agent that helps seal and result in more of a shiny
gloss-like appearance.
4. Mahogany Bark – a component used in making floor liquid wax.
5. Swietenia mahagoni – scientific name of mahogany trees.

MARKETING ASPECT 1
MARKETING ASPECT 2
SCOPE OF MARKETING ASPECT
 Introduction
 Executive Summary
 Major Assumptions
 Product Description
 Sample Size Calculation
 Profile of the Target Market
 Summary of Survey Questionnaire Results
 Demand Analysis
 Demand Computation using the Four Methods of Projection
 Past and Projected Demand Summary
 Line Fitting of Past and Projected Demand
 Supply Analysis
 Basis for Supply Computation
 Supply Computation using the Four Methods of Projection
 Past and Projected Supply Summary
 Line Fitting of Past and Projected Supply
 Demand and Supply Gap
 Market Share
 Competitor’s Profile
 Marketing Strategy
 Pricing Scheme
MARKETING ASPECT 3
INTRODUCTION
Wood coatings are typically made by layering shellac, drying oil, lacquer,
varnish, and other materials, with each layer being sanded in between. Almost
every industry, including paints & coatings, has been impacted by the present
global economic slowdown. Between 2002 and 2007, the worldwide paint and
coatings industry increased at a rate of about 5% in terms of volume and nearly
7% in terms of revenue per year (Research and Markets, 2021). According to
Detiveaux, in 2008, the market slowed dramatically, and 2009 is expected to be
flat to decreasing.  The International Paint and Printing Ink Council (IPPIC) to hired
Orr and Boss develop a comprehensive, in-depth industry analysis called Global
Paint and Coatings Industry Market Analysis Report (2007 to 2012).
Marketing is any measures taken by a firm to attract an audience to its
goods or services through high-quality messaging are referred to as marketing.
With the long-term goal of showing product value, developing brand loyalty, and
eventually increasing sales, marketing strives to create standalone value for
prospects and consumers through content. Market research on consumer
products, commercial industries, demographics trends and consumer lifestyles in
the Philippines. Includes comprehensive data and analysis, table and charts, with
five-year forecasts.
The sole purpose of making a mahogany liquid wax is to convert mahogany
bark as an alternative use to commercial floor wax. Aside from giving usage of
mahogany bark into something that could lessen the expense in buying
MARKETING ASPECT 4
commercialized floor wax. This study also aims to give its users some knowledge
on how to make use of mahogany bark liquid wax to wooden flooring or wooden
furniture. With this, the users can save its daily, weekly, and monthly expense for
buying commercial floor wax. Instead of buying, we can use other alternative which
also have the same quality of having a commercial liquid wax like our product the
mahogany bark liquid wax.

MARKETING ASPECT 5
EXECUTIVE SUMMARY
 One hundred fifty (150) respondents were randomly sent via emails by four
different areas of Cebu mainly: (1) Cebu Province, (2) Cebu City, (3)
Mandaue City, and (4) Lapu-Lapu City.
 The four areas’ population growth based on the Philippine Statistics
Authority are the following: 2.63% in Cebu Province, 1.21% in Cebu City,
1.73% in Mandaue City, and 2.94% in Lapu-Lapu City.
 The Lucid Timber Mahogany Liquid Wax has four significant
competitors: Boysen, Island Paint, Davies Sun and Rain, Rain or Shine.
 The proponents used four (4) Mathematical Methods of Projection to
compute the Historical, Projected Demand, and Projected Supply.
 The Mathematical Method of Projection used as the basis for the projected
demand is Statistical Straight Line and Arithmetic Geometric Curve for
projected supply.
 The proposed marketing promotional strategies are the following: Pre-
promotion campaigns, word-of-mouth marketing, social media advertising,
e-billboards, radio commercials, newspaper classified ads, and stall
advertisements at Hardware Stores,
 The company would manufacture 266,436 liters of Lucid Timber
Mahogany Liquid Wax.
 The suggested retail price for the year 2022 is Php 109.00, which already
consists of its percentage mark-up of 40%.

MARKETING ASPECT 6
MAJOR ASSUMPTIONS
 The survey questionnaires will be sent randomly distributed among the
residents of Cebu Province, Cebu City, Mandaue City, and Lapu-Lapu City.
The different number of households serves as the quantity for solving the
sample size.
 The Lucid Timber Mahogany Liquid Wax identifies target market
through geographic, demographic, and behavioral segmentation.
 The potential demand will be based on the respondents who has a wooden
floors and furniture at their local residences. The actual demand will be
based on the customers who are willing to enhance their wood floorings or
furniture.
 Lucid Pinnacle Manufacturing Company would be distributing and
selling Lucid Timber Liquid Wax to Large-Scale and Small-Medium Scale
Hardware Stores to Cebu Province, Cebu City, Mandaue City, Lapu-Lapu
City.
 The proponents considered the four major competitors through survey
results and observations of available brands in hardware stores.
 The basis for the computation of supply based on interview of salesclerk at
hardware stores are the inventory in stock and estimated weekly sales at
large-scale hardware stores as its maximum level of supply and inventory
in stock and estimated weekly sales at small to medium-scale hardware
enterprises as its minimum level of supply.

MARKETING ASPECT 7
 The intended market share for Lucid Timber Liquid Wax would be 3.81% of
the overall market for wood coating color enhancement products for its first
year of operation.
PRODUCT DESCRIPTION
Lucid Timber Mahogany Liquid Wax is made to be an alternative for
commercial color enhancement product for wood furniture and floorings. This
product is eco-friendly and is inexpensive compared to the other wood color
enhancement products we’ve known today. The materials needed are mahogany
bark, water, and added chemicals that would help a shiny finish. Boiling it and now
it can be applied to wooden furniture and floorings.
In addition, this solution is quite beneficial for anyone who wants to apply
color enhancement products on their wooden furniture and floorings with minimum
amount of time to make it dry.

MARKETING ASPECT 8
PACKAGING
Jane White explains that first impressions are very important as it would
associate the packaging based on the consumer’s first introduction to the product.
It is a factor that all production team must never overlook. The importance is
securing good first impression and lasting brand loyalty.
Lucid Pinnacle Manufacturing Company will buy metal tin cans from
Jiangyin Zhongming Package Co., Ltd. which is situated in Jiangsu, China. This
company offers mass production of metal tin can container with graphic
customization with a minimum order of 5000 pieces. Each tin can with customized
logo is priced for Php 17.00 for 1 L size of metal tin can container.
FIGURE 4: LABEL OF THE PRODUCT

MARKETING ASPECT 9
FIGURE 5: METAL TIN CAN CONTAINER

MARKETING ASPECT 10
TARGET MARKET
Lori Hubbard states that identifying a target market helps your company
enhance marketing communication and feedback strategies. The target market is
meant for the identity of a customer on a selected organization’s services or
products. Knowing and understanding the behavior of the supposed recipient of
the organization’s services or products is an essential aspect necessary for figuring
out and setting up an advertising and marketing plan. It may also ensure that the
sources and efforts spent are leading the company in accomplishing its goals.
SAMPLE SIZE CALCULATION
The proponents use Yamane’s Sample Size Formula to determine the
desired sample size to distribute the survey. It is computed through the following
formula:
Where:
𝑁 = 𝑠𝑖𝑧𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛
𝑛 = 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 𝑟𝑒𝑠𝑢𝑙𝑡
𝑒 = 5% 𝑎𝑠 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑒𝑟𝑟𝑜𝑟
MARKETING ASPECT 11
TABLE 1: NUMBER OF SAMPLE SIZE IN EACH AREA
CITY SAMPLE SIZE FOR EACH CITY
Cebu City 400
Mandaue City 400
Lapu-Lapu City 400
Cebu Province 400
TOTAL 1600
PROFILE OF THE TARGET MARKET
The target markets considered by the proponents for Lucid Timber
Mahogany Liquid Wax are the following:
 Cebu City, Mandaue City, Lapu-Lapu City, and Cebu Province respondents.
 The total percentage of the number of respondents in the target market
location who meets the following criteria:
o Has wooden furniture or floorings,
o Applies wood color enhancement products to their wooden furniture
or floorings.
o Buys wood color enhancement products.
o Willingness and Ableness to purchase our Lucid Timber

MARKETING ASPECT 12
SUMMARY OF SURVEY QUESTIONNAIRE RESULTS
Tables 2 to 15 contain all the results of the survey conducted by the
proponents. This data will be used for analysis to come up with the demand of the
company.
Total Number of Respondents = 150
TABLE 2: AGE OF RESPONDENTS
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
21 - 30 106 70.67%
31 - 40 22 14.67%
41 - 50 10 6.67%
51 - 60 7 4.67%
60 above 5 3.33%
TOTAL 150 100.00%
TABLE 3: ADDRESS OF RESPONDENTS
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Cebu City 63 42.00%
Mandaue City 29 19.33%
Lapu-Lapu City 34 22.67%
Within Cebu Province 24 16.00%
TOTAL 150 100.00%
MARKETING ASPECT 13
TABLE 4: MONTHLY HOUSEHOLD INCOME
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Less than or equal to Php
124 82.67%
50,000
Php 50,001 to Php 100,000 18 12.00%
Php 100,001 to Php 150,000 6 4.00%
Greater than Php 150,000 2 1.33%

TOTAL 150 100.00%
TABLE 5: RESPONDENTS THAT HAVE WOODEN FURNITURE/FLOORINGS
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
YES 133 88.67%
NO 17 11.33%
TOTAL 150 100.00%
TABLE 6: HAVE YOU HEARD ABOUT MAHOGANY BARK LIQUID WAX?
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
YES 45 33.83%
NO 88 66.17%
TOTAL 133 100.00%
MARKETING ASPECT 14
TABLE 7: HOW OFTEN DO YOU APPLY COLOR ENHANCEMENT IN YOUR
WOODEN FURNITURE/FLOORINGS?
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Weekly 4 3.01%
Once a month 36 27.07%
Once every two months 47 35.34%
Once every four months 35 26.32%
Never 11 8.27%
TOTAL 133 100.00%
TABLE 8: THE BRAND OF COLOR ENHANCEMENT PRODUCT THAT THE
RESPODENTS PREFERRED
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Boysen 61 45.86%
Island Paint 29 21.80%
Davies Sun and Rain 15 11.28%
Rain or Shine 21 15.79%
Others 7 5.26%
TOTAL 133 100.00%
TABLE 9: HOW OFTEN DO YOU BUY WOOD COLOR
ENHANCEMENT/COATING PRODUCTS?
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Once a month 40 30.08%
Once every two months 47 35.34%
Once every four months 35 26.32%
Never 11 8.27%
TOTAL 133 100.00%
MARKETING ASPECT 15
TABLE 10: RESPONDENTS’ WILLINGNESS TO AVAIL LUCID TIMBER
LIQUID WAX
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
YES 122 91.73%
NO 11 8.27%
TOTAL 133 100.00%
TABLE 11: RESPONDENTS’ WILLING TO AVAIL PROPOSED PRODUCT AT
DIFFERENT PRICE RANGE
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Below Php 100 42 34.43%
Php 101 to Php 200 52 42.62%
Php 201 to Php 300 20 16.39%
Above Php 300 8 6.56%
TOTAL 122 100.00%
TABLE 12: RESPONDENTS’ PREFERENCE OF SIZE OF THE PROPOSED
PRODUCT
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
500 ml 45 36.89%
1000 ml 52 42.62%
2000 ml or Half Gallon 19 15.57%
4000 ml or One Gallon 6 4.92%
TOTAL 122 100.00%
MARKETING ASPECT 16
TABLE 13: ARE YOU ABLE TO PURCHASE OUR PROPOSED PRODUCT
BASED ON YOUR MONTHLY INCOME/ALLOWANCE?
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
YES 119 97.54%
NO 3 2.46%
TOTAL 122 100.00%
TABLE 14: RESPONDENTS’ PREFERRED ADVERTISING MEANS
NUMBER OF
CHOICES
RESPONDENTS
Youtube 87
Facebook 101
Instagram 39
Newspaper Ads 32
Radio Commercial 40
Billboards 58
NOTE: The respondents can choose 3 advertising means
TABLE 15: RESPONDENTS’ PREFERRED PLACE OF PURCHASING
PROPOSED PRODUCT
NUMBER OF
CHOICES PERCENTAGE
RESPONDENTS
Online Shopping 20 16.81%
Local Hardware Enterprises 42 35.29%
Hardware Stores at Malls 57 47.90%

TOTAL 119 100.00%
MARKETING ASPECT 17
DEMAND ANALYSIS
Demand It is one of the determining factors of a company since it can
influence the expansion of a company and economic growth. Demand is a factor
that allows companies to produce innovative ideas and actively think about them
to increase demand in the market. Therefore, it is very important for a company to
understand the demand (Bhasin, 2020).
Knowing the demand in the market is important as it forecasts the pattern
of the market trend for a certain product. This would determine how many units of
product needs to be produced as it gives us the indication that it is feasible in the
market.
For the computation of the demand, the proponents have obtained data
from the Philippine Statistics Authority (PSA). The target market is to get the
definite number of households in Cebu Province, Cebu City, Mandaue City, and
Lapu-Lapu City.
MARKETING ASPECT 18
FIGURE 6: DEMAND CALCULATION PROCESS
GEOMETRIC ACTUAL MARKET DEMAND

DEMAND SEGMENTATION COMPUTATION PROJECTION
Historical Values 2016-2020
1. The number of households needed in the study is Cebu Province, Cebu
City, Mandaue City, Lapu-Lapu City.
Tables 16 to 19 shows the number of households in the four areas mentioned.
The number of households was based on the Philippines Statistics Authority (PSA)
data and its Average Growth Rate (AGR) of the four areas: Cebu Province, Cebu
City, Mandaue City, Lapu-Lapu City are 2.63%, 1.21%, 1.73%, 2.94%.
Formula:
2016-2021 Number of Households = Present Number of Households * (1+AGR%)

MARKETING ASPECT 19
TABLE 16: Historical Data for Cebu Province
CEBU PROVINCE
NUMBER OF HOUSEHOLDS
2.63%
2015 669,322
2016 686,925
2017 704,991
2018 723,533
2019 742,561
2020 762,091
2021 782,134
Unit used is in Households
Source: Philippine Statistics Authority. From http://psa.gov.ph/
TABLE 17: Historical Data for Cebu City
CEBU CITY
1.21%
2015 213,781
2016 216,368
2017 218,986
2018 221,636
2019 224,317
2020 227,032
2021 229,779
MARKETING ASPECT 20
TABLE 18: Historical Data for Mandaue City
MANDAUE CITY
1.73%
2015 94,547
2016 96,183
2017 97,847
2018 99,539
2019 101,261
2020 103,013
2021 104,795
TABLE 19: Historical Data for Lapu-Lapu City
LAPU-LAPU CITY
2.94%
2015 99,573
2016 102,500
2017 105,514
2018 108,616
2019 111,809
2020 115,097
2021 118,480
MARKETING ASPECT 21
2. Geographically Segmented Actual Demand Calculation
The target market only calculates one for every household and based
on the number of times they purchased wood color enhancement products
in a period. The proponents consider the geographical segmentation upon
computing for the actual demand.

MARKETING ASPECT 22
TABLE 20: ACTUAL MARKET CALCLATION FOR CEBU PROVINCE
NO. OF PERCENTAGE OF
PERCENTAGE
RESPONDENTS HOUSEHOLD WHO HAS PERCENTAGE
CEBU PROVINCE WILLING TO
WITHIN WOODEN ABLE TO BUY
BUY
LOCATION FURNITURE/FLOORINGS
YEAR HOUSEHOLD 100.00% 88.67% 91.73% 97.54%
2016 686,925 686,925 609,097 558,724 544,980

2017 704,991 704,991 625,116 573,419 559,313
2018 723,533 723,533 641,556 588,500 574,023
2019 742,561 742,561 658,429 603,977 589,119
2020 762,091 762,091 675,746 619,862 604,613
MARKETING ASPECT 23
TABLE 21: ACTUAL MARKET CALCULATION FOR CEBU CITY
PERCENTAGE
CEBU CITY WILLING TO
BUY
YEAR HOUSEHOLD 100.00% 88.67% 91.73% 97.54%
2016 216,368 216,368 191,853 175,987 171,658

2017 218,986 218,986 194,175 178,116 173,735
2018 221,636 221,636 196,524 180,272 175,837
2019 224,317 224,317 198,902 182,453 177,965
2020 227,032 227,032 201,309 184,661 180,118
MARKETING ASPECT 24
TABLE 22: ACTUAL MARKET CALCULATION FOR MANDAUE CITY
PERCENTAGE
MANDAUE CITY WILLING TO
BUY
YEAR HOUSEHOLD 100.00% 88.67% 91.73% 97.54%
2016 96,183 96,183 85,285 78,232 76,308

2017 97,847 97,847 86,761 79,585 77,628
2018 99,539 99,539 88,262 80,962 78,971
2019 101,261 101,261 89,788 82,363 80,337
2020 103,013 103,013 91,342 83,788 81,727
TABLE 23: ACTUAL MARKET CALCULATION FOR LAPU-LAPU CITY
PERCENTAGE
LAPU-LAPU CITY WILLING TO
BUY
YEAR HOUSEHOLD 100.00% 88.67% 91.73% 97.54%
2016 102,500 102,500 90,887 83,371 81,320

2017 105,514 105,514 93,559 85,822 83,711
2018 108,616 108,616 96,310 88,345 86,172
2019 111,809 111,809 99,141 90,942 88,705
2020 115,097 115,097 102,056 93,616 91,313
MARKETING ASPECT 25
TABLE 24: TOTAL NUMBER OF HOUSEHOLD IN FOUR AREAS OF TARGET MARKET
MANDAUE LAPU-LAPU
YEAR CEBU PROVINCE CEBU CITY TOTAL
CITY CITY
2016 686,925 216,368 96,183 102,500 1,101,976
2017 704,991 218,986 97,847 105,514 1,127,338
2018 723,533 221,636 99,539 108,616 1,153,324
2019 742,561 224,317 101,261 111,809 1,179,950
2020 762,091 227,032 103,013 115,097 1,207,232
Unit used in Tables 20-24 is in Households

MARKETING ASPECT 26
SURVEY RESULTS TO BE USED FOR DEMAND CALCULATION

TABLE 25: PERCENTAGE WITHIN TARGET MARKET LOCATION
NO. OF RESPONDENTS NO. OF RESPONDENTS
NO. OF RESPONDENTS WITHIN TARGET MARKET OUTSIDE TARGET MARKET
LOCATION LOCATION
150 150 0
100% 100.00% 0.00%
TABLE 26: PERCENTAGE OF HOUSEHOLD WHO HAS WOODEN

FURNITURE/FLOORINGS
NO. OF RESPONDENTS NO. OF RESPONDENTS NO. OF RESPONDENTS WHO
WITHIN TARGET MARKET WHO HAS WOODEN DOES NOT HAVE WOODEN
LOCATION FURNITURE/FLOORINGS FURNITURE/FLOORINGS
150 133 17
100% 88.67% 11.33%
TABLE 27: PERCENTAGE OF WILLING TO PURCHASE LUCID TIMBER

LIQUID WAX
NO. OF RESPONDENTS WHO NO. OF RESPONDENTS NO. OF RESPONDENTS WHO
HAS WOODEN WHO ARE WILLING TO ARE NOT WILLING TO
FURNITURE/FLOORINGS PURCHASE PURCHASE
133 122 11
100% 91.73% 8.27%
TABLE 28: PERCENTAGE OF RESPONDENTS WHO ARE ABLE TO

PURCHASE BASED ON THEIR MONTHLY INCOME/ALLOWANCE
NO. OF RESPONDENTS WHO NO. OF RESPONDENTS NO. OF RESPONDENTS WHO

HAS WOODEN WHO ARE ABLE TO ARE NOT ABLE TO
FURNITURE/FLOORINGS PURCHASE PURCHASE
122 119 3
100% 97.54% 2.46%
Formula used:
Total Actual Demand = (Total Household of the target market x % of the
respondents within the target market x % of the respondents who has wooden
furniture/floorings x % of the respondents that are willing to purchase x % of the
respondents willing to purchase x % of the respondents who are able to
purchase x General Consumption)

MARKETING ASPECT 27
TABLE 29: COMPUTATION FOR POTENTIAL AND ACTUAL DEMAND PER YEAR
PERCENTAGE
OF AVG GEN.
NO. OF
HOUSEHOLD PERCENTAGE CONSUMP
RESPONDENTS PERCENTAGE POTENTIAL ACTUAL
DEMAND WHO HAS WILLING TO TION PER
WITHIN ABLE TO BUY DEMAND DEMAND
WOODEN BUY HOUSEHO
LOCATION
FURNITURE/ LD
FLOORINGS
HOUSE
YEAR 100.00% 88.67% 91.73% 97.54% IN LITERS PER YEAR
HOLD
1,101,9
2016 1,101,976 977,122 896,314 874,265 874,265 7 6,119,854
76
1,127,3
2017 1,127,338 999,610 916,943 894,386 894,386 7 6,260,700
38
1,153,3
2018 1,153,324 1,022,652 938,079 915,002 915,002 7 6,405,013
24
1,179,9
2019 1,179,950 1,046,261 959,735 936,126 936,126 7 6,552,882
50
1,207,2
2020 1,207,232 1,070,453 981,926 957,771 957,771 7 6,704,397
32
MARKETING ASPECT 28
DEMAND COMPUTATION USING THE FOUR METHODS OF PROJECTION
The four methods of projections were used as a tool for forecasting
the demand for the years 2021 to 2026. The next tables show in the next several
pages show the different projection method (Arithmetic Straight Line, Arithmetic
Geometric Curve, Statistical Straight Line, and Statistical Parabolic Curve) for the
next five years.
The chosen method of projection shall obtain three different
characteristics that will serve as a criterion in choosing. The characteristics each
criterion must meet includes the following:
1. Low Standard Deviation
2. Least Average Growth Rate when treating with demand and the highest
average growth rate when supply is one treated.
3. It abides by the law of conservatism.

MARKETING ASPECT 29
TABLE 30: ARITHMETIC STRAIGHT LINE DEMAND HISTORICAL VALUE
ARITHMETIC STRAIGHT LINE - HISTORICAL VALUES

YEAR DEMAND (Y) a Yi-1 Yc Y-Yc (Y-Yc)^2
2016 6,119,853.70 146,135.76 0.00 0.00 0.00 0.00
2017 6,260,700.34 146,135.76 6,119,853.70 6,265,989.46 -5,289.12 27,974,773.71
2018 6,405,013.50 146,135.76 6,265,989.46 6,412,125.21 -7,111.72 50,576,520.17
2019 6,552,881.93 146,135.76 6,412,125.21 6,558,260.97 -5,379.04 28,934,052.44
2020 6,704,396.73 146,135.76 6,558,260.97 6,704,396.73 0.00 0.00
TOTAL 107,485,346.32
STD DEV 4636.49
MARKETING ASPECT 30
TABLE 31: ASL DEMAND PROJECTED VALUE
ARITHMETIC STRAIGHT LINE - PROJECTED VALUES

YEAR a Yi-1 Yc GROWTH RATE
2021 146,135.76 6704396.73 6,850,532.48
2022 146,135.76 6,850,532.48 6,996,668.24 2.13%
2023 146,135.76 6,996,668.24 7,142,803.99 2.09%
2024 146,135.76 7,142,803.99 7,288,939.75 2.05%
2025 146,135.76 7,288,939.75 7,435,075.50 2.00%
2026 146,135.76 7,435,075.50 7,581,211.26 2.005%
TOTAL 10.278%
AGR 2.056%
Formulas used in the ASL Method are the following:
Yc = a + 𝑌
∑( )
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 =
𝑌 −𝑌
a =
𝑛−1
MARKETING ASPECT 31
TABLE 32: ARITHMETIC GEOMETRIC CURVE DEMAND HISTORICAL VALUE
ARITHMETIC GEOMETRIC CURVE - HISTORICAL VALUE

YEAR DEMAND (Y) % I OR D Yi + 1 1+r Yc Y - Yc (Y-Yc)^2
2016 6,119,853.70 0.00% 6,261,028.86 1.0231 6,119,853.68 0.02 0.00035
2017 6,260,700.34 2.301% 6,405,460.72 1.0231 6,261,028.86 -328.52 107,924.50355
2018 6,405,013.50 2.305% 6,553,224.39 1.0231 6,405,460.72 -447.22 200,005.94999
2019 6,552,881.93 2.309% 6,704,396.73 1.0231 6,553,224.39 -342.45 117,275.29794
2020 6,704,396.73 2.312% 0.00 1.0231 0.00
TOTAL 9.23% TOTAL 425,205.75
r 2.307% STD DEV 291.62
MARKETING ASPECT 32
TABLE 33: AGC DEMAND PROJECTED VALUE
ARITHMETIC GEOMETRIC CURVE - PROJECTED VALUE

YEAR Yi - 1 1+r Yc GROWTH RATE
2021 6,704,396.73 1.0231 6,859,056.37
2022 6,859,056.37 1.0231 7,017,283.76 2.307%
2023 7,017,283.76 1.0231 7,179,161.20 2.307%
2024 7,179,161.20 1.0231 7,344,772.89 2.307%
2025 7,344,772.89 1.0231 7,514,204.98 2.307%
2026 7,514,204.98 1.0231 7687545.596 2.307%
TOTAL 11.534%
AGR 2.307%
Formulas used in the AGC Method are the following:
𝑌
Yc =
1+𝑟
∑%
MARKETING ASPECT 33
TABLE 34: STATISTICAL STRAIGHT LINE DEMAND HISTORICAL VALUE
STATISTICAL STRAIGHT LINE - HISTORICAL VALUE

YEAR DEMAND (Y) X X^2 XY a b Yc Y - Yc (Y-Yc)^2
2016 6,119,853.70 1.00 1.00 6,119,853.70 5,970,188.95 146,126.76 6,116,315.71 3,537.99 12,517,378.84
2017 6,260,700.34 2.00 4.00 12,521,400.68 5,970,188.95 146,126.76 6,262,442.48 -1,742.14 3,035,036.63
2018 6,405,013.50 3.00 9.00 19,215,040.49 5,970,188.95 146,126.76 6,408,569.24 -3,555.74 12,643,303.65
2019 6,552,881.93 4.00 16.00 26,211,527.73 5,970,188.95 146,126.76 6,554,696.00 -1,814.07 3,290,855.44
2020 6,704,396.73 5.00 25.00 33,521,983.63 5,970,188.95 146,126.76 6,700,822.77 3,573.96 12,773,180.92
TOTAL 44,259,755.48
STD DEV 2975.22
MARKETING ASPECT 34
TABLE 35: STATISTICAL STRAIGHT LINE DEMAND PROJECTED VALUE
STATISTICAL STRAIGHT LINE - PROJECTED VALUE

YEAR a b x Yc GROWTH RATE
2021 5,970,188.95 146126.7635 6.00 6,846,949.53
2022 5,970,188.95 146126.7635 7.00 6,993,076.29 2.134%
2023 5,970,188.95 146126.7635 8.00 7,139,203.06 2.090%
2024 5,970,188.95 146126.7635 9.00 7,285,329.82 2.047%
2025 5,970,188.95 146126.7635 10.00 7,431,456.58 2.006%
2026 5,970,188.95 146126.7635 11.00 7,577,583.35 1.966%
TOTAL 10.243%
AGR 2.049%
Formulas used in the SSL Method are the following:
Yc = 𝑎 + 𝑏𝑥
∑ (∑ )(∑ ) ∑ 𝑦−𝑏(∑ 𝑥)
∑ (∑ ) 𝑛
MARKETING ASPECT 35
TABLE 36: STATISTICAL PARABOLIC CURVE DEMAND HISTORICAL VALUE
STATISTICAL PARABOLIC CURVE - HISTORICAL VALUE

YEAR DEMAND (Y) X X^2 X^4 XY X^2(Y) a b
-
2016 -4.00 16.00 256.00 97,917,659.26 6,405,918.61 77,363.34
6,119,853.70 24,479,414.81
2017 6,260,700.34 -1.00 1.00 1.00 -6,260,700.34 6,260,700.34 6,405,918.61 77,363.34
2018 6,405,013.50 0.00 0.00 0.00 0.00 0.00 6,405,918.61 77,363.34
2019 6,552,881.93 1.00 1.00 1.00 6,552,881.93 6,552,881.93 6,405,918.61 77,363.34
2020 6,704,396.73 4.00 16.00 256.00 26,817,586.90 107,270,347.61 6,405,918.61 77,363.34
TOTAL 32,042,846.20 0.00 34.00 514.00 2,630,353.68 218,001,589.14
TABLE 37: STATISTICAL PARABOLIC CURVE DEMAND HISTORICAL VALUE
c Yc Y - Yc (Y-Yc)^2
389.80 6,102,702.01 17,151.69 294,180,558.26
389.80 6,328,945.07 -68,244.72 4,657,342,489.32
389.80 6,405,918.61 -905.11 819,230.07
389.80 6,483,671.75 69,210.18 4,790,048,900.57
389.80 6,721,608.76 -17,212.03 296,254,095.94
TOTAL 10,038,645,274.15
STD DEV 20,038.61
MARKETING ASPECT 36
TABLE 38: STATISTICAL PARABOLIC CURVE DEMAND PROJECTED VALUE
STATISTICAL PARABOLIC CURVE - PROJECTED VALUE

YEAR a b x c x^2 Yc GROWTH RATE
2021 6,405,918.61 77,363.34 6.00 389.80 36.00 6884131.41
2022 6,405,918.61 77363.34 8.00 389.80 64.00 7049772.46 2.406%
2023 6,405,918.61 77363.34 10.00 389.80 100.00 7218531.88 2.394%
2024 6,405,918.61 77363.34 12.00 389.80 144.00 7390409.70 2.381%
2025 6,405,918.61 77363.34 14.00 389.80 196.00 7565405.90 2.368%
2026 6,405,918.61 77363.34 16.00 389.80 256.00 7743520.49 2.354%
TOTAL 11.903%
AGR 2.381%
Formulas used in the SPC Method are the following:
Yc = 𝑎 + 𝑏𝑥 + 𝑐𝑥
(∑ )(∑ ) (∑ )(∑ ) ∑ 𝑥𝑦 𝑛(∑ 𝑥2 𝑦)−(∑ 𝑥2 )(∑ 𝑦)

2
∑ (∑ ) ∑ 𝑥2 𝑛(∑ 𝑥4 )−(∑ 𝑥2 )
MARKETING ASPECT 37
TABLE 39: PAST & PROJECTED VALUES OF DEMAND
PAST
YEAR ASL AGC SSL SPC
DEMAND
2016 6,119,854
2017 6,260,700
2018 6,405,013
2019 6,552,882
2020 6,704,397
2021 6,850,532 6,859,056 6,846,950 6,884,131
2022 6,996,668 7,017,284 6,993,076 7,049,772
2023 7,142,804 7,179,161 7,139,203 7,218,532
2024 7,288,940 7,344,773 7,285,330 7,390,410
2025 7,435,076 7,514,205 7,431,457 7,565,406
2026 7,581,211 7,687,546 7,577,583 7,743,520
AGR 2.056% 2.307% 2.049% 2.381%
STD DEV 4,636.49 291.62 2,975.22 20,038.61
MARKETING ASPECT 38
The four methods of projection were used to solve the different values of
projection in demand. The four methods of projection were evaluated in relation to
the set of characteristics the demand should meet. These characteristics consists
of standard deviation, average growth rate, and law of conservatism.
Tables 30 – 39 summarizes the past and projected demand using four
various projection methods. The projected values of demand increase every year.
The table implies that using Statistical Straight Line with a demand increase of
2.049% per year shows that the SSL method has a standard deviation of 2,975.22,
which depicts an error. Table 40 below shows the ranking of the four different
methods of projection.
TABLE 40: METHODS OF DEMAND PROJECTIONS RANKINGS
STD RANK AGR RANK LOC

ASL 4,636.49 3 2.056% 2 3
AGC 291.62 1 2.307% 3 2
SSL 2,975.22 2 2.049% 1 1
SPC 20,038.61 4 2.381% 4 4
Based on the standard deviation, the AGC ranked first in the criterion,
followed by SSL, ASL, and SPC. In the average growth rate (AGR) criterion, SSL
ranked first, followed by ASL, AGC, and SPC. The chosed method of projection of
method was the Statistical Straight Line, based on the three criteria. It was ranked
first in the average growth rate and Law of Conservatism and second in Standard
Deviation.
MARKETING ASPECT 39
LINE FITTING OF PAST AND PROJECTED DEMAND
The line fitting graphs shows the different lines in projected demand. It
summarizes the different line methods of projected demand using a line graph.
The figure shows the line fitting graph of year 2021 to 2026 from the following
different demand projection methods which are Arithmetic Straight Line, Arithmetic
Geometric Curve, Statistical Straight Line, and Statistical Parabolic Curve.
FIGURE 7: PAST AND PROJECTED DEMAND LINE FITTING
8,000,000
7,750,000
7,500,000
7,250,000
7,000,000
6,750,000
6,500,000
6,250,000
6,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
PAST DEMAND ASL AGC SSL SPC
The lines of SSL and ASL are overlapping since there is a small difference
between its standard deviation. Statistical Straight Line shows a slow increase of
MARKETING ASPECT 40
demand, which is a realistic and conservative way of projecting a new entrant
business demand. It would normally take time for the business to have a constant
increase from its target consumers since it is new to the market.
SUPPLY
Supply is an economic term that refers to the amount of a given product or
service that suppliers are willing to offer to consumers at a given price level at a
given period. Supply is a fundamental economic concept that describes the total
amount of a specific good or service that is available to consumers. Supply can
relate to the amount available at a specific price or the amount available across a
range of prices if displayed on a graph.

MARKETING ASPECT 41
BASIS FOR SUPPLY COMPUTATION
The following data were obtained through informal interviews from sales
agents of small scale and large-scale hardware stores. To obtain the four major
competitor’s respective supply, most of the interviewed personnel of the mentioned
hardware stores in Cebu had given the proponents the weekly estimated supply.
Formula:
Annual Supply = Weekly Sales x 52 Weeks
The Average Growth Rate of the four competitors was obtained from the
sales agent estimation.

MARKETING ASPECT 42
SUPPLY COMPUTATION
Tables 41 and 42 shows the calculation of the total actual supply from twelve (12) hardware stores from Cebu
Province, Cebu City, Mandaue City, and Lapu-Lapu City (3 for each areas) using the total supply of the four major
competitors of the proposed Lucid Timber Mahogany Bark Liquid Wax.
TABLE 41: AVERAGE SUPPLY PER LARGE-SCALE HARDWARE STORES
AVERAGE SUPPLY PER LARGE-SCALE HARDWARE STORES

DAVIES
NO. OF OVERALL ISLAND NO. OF OVERALL SUN NO. OF OVERALL RAIN OR NO. OF OVERALL
BOYSEN
STORES SUPPLY PAINT STORES SUPPLY AND STORES SUPPLY SHINE STORES SUPPLY
RAIN
CEBU
4,382 13 56,966 6,074 13 78,962 2,914 13 37,882 1,994 13 25,922
PROVINCE
CEBU
5,348 33 176,484 8,106 33 267,498 3,860 33 127,380 2,744 33 90,552
CITY
MANDAUE
4,486 8 35,888 5,352 8 42,816 3,640 8 29,120 2,256 8 18,048
CITY
LAPU-
1,438 4 5,752 1,692 4 6,768 1,072 4 4,288 694 4 2,776
LAPU CITY
TOTAL 275,090 396,044 198,670 137,298
MARKETING ASPECT 43
TABLE 42: AVERAGE SUPPLY PER SMALL TO MEDIUM SCALE HARDWARE ENTERPISES
AVERAGE SUPPLY PER SMALL TO MEDIUM-SCALE HARDWARE ENTERPRISES

DAVIES
NO. OF OVERALL ISLAND NO. OF OVERALL SUN NO. OF OVERALL RAIN OR NO. OF OVERALL
BOYSEN
STORES SUPPLY PAINT STORES SUPPLY AND STORES SUPPLY SHINE STORES SUPPLY
RAIN
CEBU
1,098 64 70,272 1,664 64 106,496 904 64 57,856 860 64 55,040
PROVINCE
CEBU
2,292 132 302,544 2,490 132 328,680 1,434 132 189,288 1,046 132 138,072
CITY
MANDAUE
1,102 48 52,896 1,410 48 67,680 978 48 46,944 912 48 43,776
CITY
LAPU-
362 8 2,896 442 8 3,536 346 8 2,768 168 8 1,344
LAPU CITY
TOTAL 428,608 506,392 296,856 238,232

MARKETING ASPECT 44
TABLE 43: COMBINED SUPPLY
COMBINED YEARLY SALES
LARGE SCALE S&M HARDWARE

COMPETITOR TOTAL
HARDWARE STORES ENTERPRISES
BOYSEN 275,090 428,608 703,698

ISLAND PAINT 396,044 506,392 902,436
DAVIES SUN
198,670 296,856 495,526
AND RAIN
RAIN OR
137,298 238,232 375,530
SHINE
GRAND TOTAL 2,477,190
Unit used is per liter of paint
Table 43 shows the four (4) significant competitors and their calculated
annual supply based on the given estimation from sales agents of selected stores
and the proponents have set a range of the maximum number of supplies from
large scale hardware stores and the minimum number of supply from small and
medium scale hardware enterprises. The remaining supply for the other six
competitors of the Lucid Timber Mahogany Bark Liquid Wax will be
determined through ratio and proportion.
2,477,190 𝑥
=
4 6
X = 3,715,785
Where X is the total supply.
Supply for the other 6 competitors = 3,715,785 – 2,477,190 = 1,238,595

MARKETING ASPECT 45
TABLE 44: PROJECTED ANNUAL SUPPLY COMPUTATION
DAVIES
SUPPLY FROM
ISLAND SUN RAIN OR OTHER TOTAL
YEAR BOYSEN TOTAL OTHER
PAINT AND SHINE COMPETITORS SUPPLY
COMPETITORS
RAIN
AGR 3.50% 5.00% 3.00% 2.50% 3.50%
2016 610,233 735,040 438,686 339,362 2,123,320 6 1,074,085 3,197,405
2017 632,366 773,726 452,253 348,064 2,206,408 6 1,113,041 3,319,450
2018 655,301 814,448 466,240 356,988 2,292,978 6 1,153,411 3,446,389
2019 679,069 857,314 480,660 366,142 2,383,185 6 1,195,244 3,578,429
2020 703,698 902,436 495,526 375,530 2,477,190 6 1,238,595 3,715,785
2021 728,327 947,558 510,392 384,918 2,571,195 6 1,281,946 3,853,141
2022 753,819 994,936 525,704 394,541 2,668,999 6 1,326,814 3,995,813
2023 780,203 1,044,682 541,475 404,405 2,770,764 6 1,373,252 4,144,017
2024 807,510 1,096,917 557,719 414,515 2,876,660 6 1,421,316 4,297,976
2025 835,772 1,151,762 574,450 424,878 2,986,863 6 1,471,062 4,457,925
2026 865,025 1,209,351 591,684 435,500 3,101,559 6 1,522,550 4,624,108
Units used is in liters

MARKETING ASPECT 46
For computing the supply for 2021, the proponents utilized the formula for
getting the supply from other competitors and the total supply for the four major
competitors. Using the average growth rate from each significant competitor based
on their estimation. The past supply from the major competitors was calculated for
the next five years’ projection of supply. The table on the previous page shows the
supply of the competitors for the past years and the projected years. This data will
determine if there are any untapped markets and how the proposed business can
penetrate the industry.

MARKETING ASPECT 47
SUPPLY COMPUTATION USING THE FOUR METHODS OF PROJECTION
The demand computation will be the basis for computing the supply
projections for the next five years using the four projections.
As in shown in Table 44, the projected actual supply is continuously
increasing each year, increasing in the next five years.
The four methods of projections were used as a tool for forecasting the
demand for the years 2021 to 2026. The next tables show in the next several pages
show the different projection method (Arithmetic Straight Line, Arithmetic
Geometric Curve, Statistical Straight Line, and Statistical Parabolic Curve) for the
next five years.
The chosen method of projection shall obtain three different characteristics
that will serve as a criterion in choosing. The characteristics each criterion must
meet includes the following:
1. Low Standard Deviation
2. Least Average Growth Rate when treating with demand and the highest
average growth rate when supply is one treated.
3. It abides by the law of conservatism.

MARKETING ASPECT 48
TABLE 45: ARITHMETIC STRAIGHT LINE SUPPLY HISTORICAL VALUES
ARITHMETIC STRAIGHT LINE - HISTORICAL VALUES

YEAR SUPPLY (Y) a Yi-1 Yc Y-Yc (Y-Yc)^2
2016 3,197,405 129,595.00 0.00 0.00 0.00 0.00
2017 3,319,450 129,595.00 3,197,405 3,327,000 -7,550 57,002,500
2018 3,446,389 129,595.00 3,327,000 3,456,595 -10,206 104,162,436
2019 3,578,429 129,595.00 3,456,595 3,586,190 -7,761 60,233,121
2020 3,715,785 129,595.00 3,586,190 3,715,785 0.00 0.00
TOTAL 221,398,057.00
STD DEV 6654.29
MARKETING ASPECT 49
TABLE 46: ARITHMETIC STRAIGHT LINE SUPPLY PROJECTED VALUES
ARITHMETIC STRAIGHT LINE - PROJECTED VALUES

GROWTH
YEAR a Yi-1 Yc
RATE
2021 129,595.00 3,715,785.00 3,845,380.00
2022 129,595.00 3,845,380.00 3,974,975.00 3.37%
2023 129,595.00 3,974,975.00 4,104,570.00 3.26%
2024 129,595.00 4,104,570.00 4,234,165.00 3.16%
2025 129,595.00 4,234,165.00 4,363,760.00 3.06%
2026 129,595.00 4,363,760.00 4,493,355.00 3.061%
TOTAL 15.909%
AGR 3.182%
Formulas used in the ASL Method are the following:
Yc = a + 𝑌
∑( )
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 =
𝑌 −𝑌
a =
𝑛−1
MARKETING ASPECT 50
TABLE 47: ARITHMETIC GEOMETRIC CURVE SUPPLY HISTORICAL VALUES
ARITHMETIC GEOMETRIC CURVE - HISTORICAL VALUE

YEAR SUPPLY (Y) % I OR D Yi + 1 1+r Yc Y - Yc (Y-Yc)^2
2016 3,197,405 0.00% 3,319,791.97 1.0383 3,197,404.89 0.04 0.00144
2017 3,319,450 3.817% 3,446,863.66 1.0383 3,319,791.97 -342.32 117,180.96624
2018 3,446,389 3.824% 3,578,799.28 1.0383 3,446,863.66 -474.76 225,393.09731
2019 3,578,429 3.831% 3,715,785.00 1.0383 3,578,799.28 -370.37 137,171.75549
2020 3,715,785 3.838% 0.00 1.0383 0.00
TOTAL 15.31% TOTAL 479,745.82
r 3.828% STD DEV 309.76
MARKETING ASPECT 51
TABLE 48: ARITHMETIC GEOMETRIC CURVE SUPPLY PROJECTED VALUES
ARITHMETIC GEOMETRIC CURVE - PROJECTED VALUE

GROWTH
YEAR Yi - 1 1+r Yc
RATE
2021 3,715,785.00 1.0383 3,858,014.12
2022 3,858,014.12 1.0231 3,947,012.30 2.307%
2023 3,947,012.30 1.0231 4,038,063.52 2.307%
2024 4,038,063.52 1.0231 4,131,215.14 2.307%
2025 4,131,215.14 1.0231 4,226,515.63 2.307%
2026 4,226,515.63 1.0231 4,324,014.54 2.307%
TOTAL 11.534%
AGR 2.307%
Formulas used in the AGC Method are the following:
𝑌
Yc =
1+𝑟
∑%
MARKETING ASPECT 52
TABLE 49: STATISTICAL STRAIGHT LINE SUPPLY HISTORICAL VALUE
STATISTICAL STRAIGHT LINE - HISTORICAL VALUE

YEAR SUPPLY (Y) X X^2 XY a b Yc Y - Yc (Y-Yc)^2
2016 3,197,405 1.00 1.00 3,197,404.93 3,062,769.66 129,573.94 3,192,343.60 5,061.33 25,617,032.51
2017 3,319,450 2.00 4.00 6,638,899.31 3,062,769.66 129,573.94 3,321,917.54 -2,467.89 6,090,461.37
2018 3,446,389 3.00 9.00 10,339,166.73 3,062,769.66 129,573.94 3,451,491.48 -5,102.57 26,036,240.95
2019 3,578,429 4.00 16.00 14,313,715.66 3,062,769.66 129,573.94 3,581,065.42 -2,636.51 6,951,166.90
2020 3,715,785 5.00 25.00 18,578,925.00 3,062,769.66 129,573.94 3,710,639.36 5,145.64 26,477,584.54
TOTAL 91,172,486.26
STD DEV 4270.19
MARKETING ASPECT 53
TABLE 50: STATISTICAL STRAIGHT LINE SUPPLY PROJECTED VALUES
STATISTICAL STRAIGHT LINE - PROJECTED VALUE

YEAR a b x Yc GROWTH RATE
2021 3,062,769.66 129573.9410 6.00 3,840,213.30
2022 3,062,769.66 129573.9410 7.00 3,969,787.24 3.374%
2023 3,062,769.66 129573.9410 8.00 4,099,361.19 3.264%
2024 3,062,769.66 129573.9410 9.00 4,228,935.13 3.161%
2025 3,062,769.66 129573.9410 10.00 4,358,509.07 3.064%
2026 3,062,769.66 129573.9410 11.00 4,488,083.01 2.973%
TOTAL 15.836%
AGR 3.167%
Yc = 𝑎 + 𝑏𝑥
∑ (∑ )(∑ ) ∑ 𝑦−𝑏(∑ 𝑥)
∑ (∑ ) 𝑛
MARKETING ASPECT 54
TABLE 51: STATISTICAL PARABOLIC CURVE SUPPLY HISTORICAL VALUES
STATISTICAL PARABOLIC CURVE - HISTORICAL VALUE

YEAR SUPPLY (Y) X X^2 X^4 XY X^2(Y) a b
2016 3,197,405 -4.00 16.00 256.00 -12,789,619.70 51,158,478.81 3,447,687.35 68,602.93
2017 3,319,450 -1.00 1.00 1.00 -3,319,449.65 3,319,449.65 3,447,687.35 68,602.93
2018 3,446,389 0.00 0.00 0.00 0.00 0.00 3,447,687.35 68,602.93
2019 3,578,429 1.00 1.00 1.00 3,578,428.92 3,578,428.92 3,447,687.35 68,602.93
2020 3,715,785 4.00 16.00 256.00 14,863,140.00 59,452,560.00 3,447,687.35 68,602.93
TOTAL 17,257,457.40 0.00 34.00 514.00 2,332,499.56 117,508,917.38
TABLE 52: STATISTICAL PARABOLIC CURVE SUPPLY HISTORICAL VALUES
c Yc Y - Yc (Y-Yc)^2
559.43 3,182,226.53 15,178.39 230,383,651.16
559.43 3,379,643.85 -60,194.20 3,623,341,709.67
559.43 3,447,687.35 -1,298.44 1,685,952.42
559.43 3,516,849.71 61,579.21 3,791,998,499.62
559.43 3,731,049.96 -15,264.96 233,018,913.50
TOTAL 7,880,428,726.37
STD DEV 17,754.36
MARKETING ASPECT 55
TABLE 53: STATISTICAL PARABOLIC CURVE SUPPY PROJECTED VALUES
STATISTICAL PARABOLIC CURVE - PROJECTED VALUE

YEAR a b x c x^2 Yc GROWTH RATE
2021 3,447,687.35 68,602.93 6.00 559.43 36.00 3,879,444.43
2022 3,447,687.35 68,602.93 8.00 559.43 64.00 4,032,314.35 3.941%
2023 3,447,687.35 68,602.93 10.00 559.43 100.00 4,189,659.72 3.902%
2024 3,447,687.35 68,602.93 12.00 559.43 144.00 4,351,480.53 3.862%
2025 3,447,687.35 68,602.93 14.00 559.43 196.00 4,517,776.79 3.822%
2026 3,447,687.35 68,602.93 16.00 559.43 256.00 4,688,548.50 3.780%
TOTAL 19.307%
AGR 3.861%
Formulas used in the SPC Method are the following:
Yc = 𝑎 + 𝑏𝑥 + 𝑐𝑥
(∑ )(∑ ) (∑ )(∑ ) ∑ 𝑥𝑦 𝑛(∑ 𝑥2 𝑦)−(∑ 𝑥2 )(∑ 𝑦)

2
∑ (∑ ) ∑ 𝑥2 𝑛(∑ 𝑥4 )−(∑ 𝑥2 )
MARKETING ASPECT 56
TABLE 54: PAST AND PROJECTED SUPPLY
PAST
YEAR ASL AGC SSL SPC
SUPPLY
2016 3,197,405
2017 3,319,450
2018 3,446,389
2019 3,578,429
2020 3,715,785
2021 3,845,380 3,858,014 3,840,213 3,879,444
2022 3,974,975 3,947,012 3,969,787 4,032,314
2023 4,104,570 4,038,064 4,099,361 4,189,660
2024 4,234,165 4,131,215 4,228,935 4,351,481
2025 4,363,760 4,226,516 4,358,509 4,517,777
2026 4,493,355 4,324,015 4,488,083 4,688,548
AGR 3.182% 2.307% 3.167% 3.861%
STD DEV 6,654.29 309.76 4,270.19 17,754.36
MARKETING ASPECT 57
The four methods of projection were used to attain the different values of
projection in supply. The four projection methods were evaluated according to the
set of characteristics the supply should meet with the demand. These
characteristics pertain to the standard deviation, average growth rate, and law of
conservatism.
Table 54, on the previous page, summarizes the past and projected
demand using four different projection methods. The projected value of supply
increases every year. The table implies that using Arithmetic Geometric Curve with
a supply increase of 2.307% per year shows that the AGC method has a standard
deviation of 309.76, which depicts an error. Table 55 below shows the ranking of
the four different methods of projection.
TABLE 55: METHODS OF SUPPLY PROJECTION RANKINGS
STD RANK AGR RANK LOC

ASL 6,654.29 3 3.182% 3 3
AGC 309.76 1 2.307% 1 1
SSL 4,270.19 2 3.167% 2 2
SPC 17,754.36 4 3.861% 4 4
The method with the highest standard deviation is the SPC, which means
that it has the highest variability between the past and projected data. In
comparison to the method with the lowest standard deviation which is the AGC,
has the lowest variability between the past and projected data.
MARKETING ASPECT 58
LINE FITTING OF PAST AND PROJECTED SUPPLY
FIGURE 8: LINE GRAPH OF PAST AND PROJECTED SUPPLY
5,000,000
4,750,000
4,500,000
4,250,000
4,000,000
3,750,000
3,500,000
3,250,000
3,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
PAST SUPPLY ASL AGC SSL SPC
The figure above shows that all four methods of projection are within its
proximity range. However, based on the table comparison shown on Table 55,
AGC as the best method for the supply projection among all the four methods.
MARKETING ASPECT 59
TABLE 56: DEMAND AND SUPPLY GAP
GAP
YEAR DEMAND SUPPLY GAP
PERCENTAGE
2016 6,119,854 3,197,405 2,922,449 47.75%
2017 6,260,700 3,319,450 2,941,251 46.98%
2018 6,405,013 3,446,389 2,958,625 46.19%
2019 6,552,882 3,578,429 2,974,453 45.39%
2020 6,704,397 3,715,785 2,988,612 44.58%
2021 6,846,950 3,858,014 2,988,935 43.65%
2022 6,993,076 3,947,012 3,046,064 43.56%
2023 7,139,203 4,038,064 3,101,140 43.44%
2024 7,285,330 4,131,215 3,154,115 43.29%
2025 7,431,457 4,226,516 3,204,941 43.13%
2026 7,577,583 4,324,015 3,253,569 42.94%
FIGURE 9: PAST AND PROJECTED DEMAND AND SUPPLY GAP
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
DEMAND SUPPLY
MARKETING ASPECT 60
As shown on the previous page of figure 9, the bar chart shows a steady
increase in the supply in wood coating market. It suggests that there would be no
drastic changes in the market in the next several years.
MARKET SHARE
Market Share is the percentage of a certain sector that your product
calculated by its sales. A company's market share is the percentage of all products
in a category that that company sells. Thus, market share is calculated by dividing
a company's sales by the total sales in a category. If the company sells all the
product in a market, it will have a 100 percent share—and it will have a monopoly.
Market share is typically measured at fixed intervals like once a quarter or once a
year.
The table below shows the market shares during the year 2020 of the four
major competitors and others.
TABLE 57: 2020 MARKET SHARE
COMPETITOR SUPPLY DEMAND MARKET SHARE

BOYSEN 703,698 6,704,397 10.50%
ISLAND PAINT 902,436 6,704,397 13.46%
DAVIES SUN AND RAIN 495,526 6,704,397 7.39%
RAIN OR SHINE 375,530 6,704,397 5.60%
OTHERS 1,238,595 6,704,397 18.47%
UNTAPPED MARKET 2,988,612 6,704,397 44.58%
TOTAL 100%
MARKETING ASPECT 61
FIGURE 10: 2020 MARKET SHARE PIE CHART
BOYSEN
10.50%
UNTAPPED ISLAND PAINT
MARKET 13.46%
44.58%
DAVIES SUN AND

RAIN
7.39%
RAIN OR SHINE
5.60%
OTHERS
18.47%

BOYSEN 727,327 6,846,950 10.62%
ISLAND PAINT 947,558 6,846,950 13.84%
RAIN OR SHINE 384,918 6,846,950 5.62%
OTHERS 1,300,525 6,846,950 18.99%
UNTAPPED MARKET 2,988,935 6,846,950 43.65%
TOTAL 100%
MARKETING ASPECT 62
BOYSEN
10.62%
UNTAPPED ISLAND PAINT
MARKET 13.84%
43.65%
DAVIES SUN AND

RAIN
7.45%
RAIN OR SHINE
5.62%
OTHERS
18.99%

BOYSEN 753,819 6,993,076 10.78%
ISLAND PAINT 994,936 6,993,076 14.23%
RAIN OR SHINE 394,541 6,993,076 5.64%
LUCID TIMBER 266,436 6,993,076 3.81%
OTHERS 1,365,551 6,993,076 19.53%
UNTAPPED MARKET 3,046,064 6,993,076 43.56%
TOTAL 100%
MARKETING ASPECT 63
BOYSEN
10.78%
UNTAPPED
ISLAND PAINT
MARKET
14.23%
43.56%
DAVIES SUN AND

RAIN
7.52%
RAIN OR SHINE
5.64%
LUCID TIMBER
3.81%
OTHERS
19.53%
Table 59 and figure 12 shows the projected 2022 market share, where
Lucid Timber Mahogany Bark Liquid Wax is supposed to enter the market. To
have a realistic market share, the proponents will penetrate 3.81% of the total
market share, lower than other competitors.

MARKETING ASPECT 64
COMPETITORS’ PROFILE
(Marta, 2021) implies that competitor analysis will help you evaluate the
weaknesses and strengths of your competitor’s brand and identify threats and
opportunities to your business. Based on the knowledge that the proponents may
gather, the establishment of a plan of action will gradually help stay one step ahead
of the market competition and reach your target market.
The proponents chose one of the top four competitors based on the
proponents’ result in their survey questionnaires. The following brans that the
respondents prefer to purchase based on the results are Boysen, Island Paint,
Davies Sun and Rain, and Rain or Shine. The proponents gathered data about
these competitors by visiting selected hardware stores at malls and local hardware
stores. It has been known that the most purchased kinds of wood color
enhancement products are the same as the results in the survey.

MARKETING ASPECT 65
TABLE 60: COMPETITORS PROFILE
BRAND QUANTITY PRICE
DIRECT COMPETITORS
Boysen
1 Liter Php 137.00
Island Paint
1 Liter Php 128.00
Davies Sun & Rain
1 Liter Php 130.00
Rain or Shine
1 Liter Php 180.00
INDIRECT COMPETITORS
BRONCO
1 Liter Php 632.00

MARKETING ASPECT 66
MINWAX
1 Liter Php 499.00
KONIG
1 Liter Php 278.00
VARATHANE
1 Liter Php 486.00
NIPPON PAINT
1 Liter Php 170.00
HUDSON
1 Liter Php 390.00

MARKETING ASPECT 67
MARKETING STRATEGY
(Ian Kirk, 2019) conceptualizes the idea on the importance of strategic
marketing as it is being carried out by those businesses who have a clear,
documented marketing strategy, which is guiding all activity. It is intended for long-
term as the foundation to all marketing decisions. Therefore, it plays an important
role in promoting and spreading information about the new product to the target
markets to manage an edge against the competitors.
COMPANY LOGO
A logo for the organization is used to identify its distinct quality amongst
competition in the market. It is the trademark that makes purchaser recognize the
company’s identity. It helps establish and build connections among the business
and its consumers. It presents information that allows the customer to easily
consider its product, advertisement, and reputation.

MARKETING ASPECT 68
FIGURE 13: LOGO DESIGN
PROMOTIONAL PROGRAM
Promotion is one of the critical parts of marketing. It is a form of
communication used to give awareness and persuade potential customers about
the product and where they can purchase it.
In marketing, the product life cycle is an important concept as it describes
the stages of the product that would undergo over a period. It helps businesses
strategize ahead of time to stay competitive in the market such as pricing schemes,
promotional activities, research and development, benchmark other competitors.
The product life cycles go through four stages which are the introduction, growth,
maturity, and decline phases.

MARKETING ASPECT 69
Before the introduction phase, the proponents plan ahead on how the
product needs to develop by considering the demand and specifications made by
the customers. The proponents developed and introduced the Lucid Timber
Mahogany Liquid Wax which is made from a mahogany bark used for color
enhancement for wood furniture and floorings.
The proponents will then promote the product through social media
platforms such as YouTube, Facebook, and Instagram since most people
nowadays spend time on these social media applications. The business would also
opt into advertising near hardware stores to promote the product like in Ace
Hardware Store where a salesperson demonstrates on what is the function of the
product and how to use it. It would be an advantage for the business to have these
kinds of strategies during the introduction phase.

MARKETING ASPECT 70
FIGURE 14: FACEBOOK PAGE
Link:https://www.facebook.com/lucidpinnaclemanufacturingcompany/?ref=pages_you_m
anage
MARKETING ASPECT 71
FIGURE 15: INSTAGRAM PAGE
Link: https://www.instagram.com/lucidpinnaclemanufcom/
MARKETING ASPECT 72
FIGURE 16: TWITTER PAGE
FIGURE 17: TIKTOK ACCOUNT

MARKETING ASPECT 73
Figures 13 to 17 are the social networking pages and channels used in the
advertisement. According to Statista, as of 2019, there were about 74 million
Facebook users in the Philippines alone. Furthermore, as of 2020, it dominated
nearly 93 percent of the country's social media market. Despite Facebook's
popularity in the Philippines, other social media platforms such as YouTube,
Tiktok, Instagram, and Twitter were slowly gaining ground, especially among
content creators and entrepreneurs. In addition, as evidenced by the top-visited
channels as of August 2021, television networks have been expanding their
presence on YouTube. Filipinos use social media apps as both a source of
information and a platform for product placement.
FIGURE 18: FACEBOOK AD

MARKETING ASPECT 74
FIGURE 19: YOUTUBE AD
FIGURE 20: INSTAGRAM AD

MARKETING ASPECT 75
FIGURE 21: E-BILLBOARD DESIGN AD

MARKETING ASPECT 76
FIGURE 22: RADIO COMMERCIAL SPEECH AD

MARKETING ASPECT 77
FIGURE 23: NEWSPAPER CLASSIFIED ADS DESIGN

MARKETING ASPECT 78
Most of the citizens would be using their mobile devices due to the current
pandemic, advertising videos is one of the advertisement methods in promoting a
product. Using Facebook, Instagram, and YouTube or other social media accounts
could increase customer knowledge of our product. The proponents would not limit
to social media advertising but would also venture in offline advertising means
such as e-billboard, radio commercial, and newspaper classified advertisements.
Tables 61 and 62 are the listed expenses that the company would pay to advertise
the product Lucid Timber Mahogany Bark Liquid Wax.
TABLE 61: ONLINE ADVERTISING EXPENSES

Particulars Rate No. of Days Cost
Facebook Ad ₱ 51.00 / day 180 ₱ 9,180.00
YouTube Ad ₱ 510.00 / day 180 ₱ 91,800.00
Instagram Ad ₱ 51.00 / day 90 ₱ 4,590.00
Total Cost ₱ 105,570.00
TABLE 62: OFLLINE ADVERTISEMENT AND ITS COST

Particulars Rate No. of Days Cost
E-billboard ₱ 35,000 / 15sec. / 90 ₱ 105,000.00
30 days
Radio Commercial ₱ 1,500 / 30 sec. / 30 ₱ 90,000.00
101.1 FM twice a day
Newspaper ₱ 9,594 / day 8 ₱ 76,752.00
Freeman Every Sat and Sun
Total Cost ₱ 271,752.00
MARKETING ASPECT 79
PUBLIC RELATIONS
An article published by Tim Berry and Doug Wilson stated that public
relations is an integral part of a company’s ongoing marketing strategy It involves
a variety of program designed to maintain and enhance the company’s reputation
with the product it offers. As the number of people became aware of the product’s
existence, the potential sales also increase.
The following are the strategies that will be used for promoting the product:
 Pre-Promotion Campaign
Before the product is released, a pre-promotion campaign will be run
on social media to pique interest in the market by sharing information about
the product and its benefits.
 Word-of-Mouth Marketing
As stated by Bhavik Soni, we all get recommendations from our
friends to use a product or service. These recommendations are a sort of
marketing that allows a business to acquire clients' undivided attention and
consideration. It is used that every business wants to communicate about
their product, it is used to generate discussions and feedback about it. Word
of mouth marketing entails much more than merely discussing a product or
brand. People have employed this marketing tactic in a variety of ways over
the years.
MARKETING ASPECT 80
 Out-of-Home Media Advertising
Customers are more likely to buy from brands they trust, thus one of
the most basic things you can do to increase sales is to develop trust among
your customers. Placing a stall at a hardware store so that customers may
see and test the product that is being promoted.
FIGURE 24: STALL ADVERTISING AT HARDWARE STORES

MARKETING ASPECT 81
 Grand Opening of the Business
The day of the launch of the new business production area would
have a grand opening. The table below are the list of the following expenses
of the grand opening event.
TABLE 63: GRAND OPENING EXPENSE
GRAND OPENING EXPENSES
DESCRIPTION AMOUNT
Opening Tarpaulin 700.00
Foods and Drinks 7,000.00
Priest 1,000.00
Offerings 500.00
Decorations 1,000.00
Ribbons and Scissors 200.00
Guest Speaker 1,000.00
Motorcade (20 riders) 3,000.00
TOTAL Php 14,400.00

MARKETING ASPECT 82
PRODUCT LIFE CYCLE
The product life cycle has four stages according to (The Economic Times,
2021). These stages are introduction, growth, maturity, and decline. Every product
goes through a life cycle that starts with its launch and ends with its withdrawal or
collapse.
INTRODUCTION STAGE (2022-2024)
In this stage, Lucid Pinnacle Manufacturing Company is developing a
market for the product and promoting awareness. The product is advertised
through communication means whether if its through physical or digital. The
product can then be sold to those who have been interested and willing to
purchase.
Lucid Pinnacle Manufacturing Company will be making a stall at
hardware stores and posting online graphic designs to further promote our product.
Also, it is one way to promote in an affordable way since all you need are materials
and pre-existing gadgets and materials that the proponents have. Social media is
one of the great factors to promote our product since according to (Kemp, 2021),
the number of social media users in the Philippines as of January 2021 is at
estimated 89 million users.
GROWTH STAGE (2025-2026)
In this stage, the customers and companies have taken notice of the product
and striving to increase its market share. Lucid Pinnacle Manufacturing

MARKETING ASPECT 83
Company will continue to advertise the product but not as much during the
introduction stage. This would only serve as a reminder for the customer
occasionally, to bring back people’s awareness.
MATURITY STAGE (2026-2027)
In this stage, sales will stay stagnant. Competitors arise and adapt to recent
changes based on the market behavior. The features of the product of Lucid
Pinnacle Manufacturing Company may need to enhance and maintain its
market share. Social media promotion will still be present as of the means to
promote new improvements such as aesthetics look to the product.
DECLINE STAGE
In this stage, Lucid Pinnacle Manufacturing Company’s sales are
dependent on the reputation built upon the first three stages, but the social media
platform will continue. Product features may need research and development to
further enhance and stay competitive in the market.

MARKETING ASPECT 84
CHANNEL OF DISTRIBUTION
According to the Business Jargon Website (2021), channels of distributions
imply the means through which the good or service need to pass to reach the
intended customer. Based on the number of intermediaries involved, the channel
distribution can either be short or long.
FIGURE 25: CHANNEL OF DISTRIBUTION
WHOLESALERS
PRODUCERS RETAILERS CONSUMER
ONLINE
SHOPPING
WBESITES
The figure above shows the channel of distribution of Lucid Pinnacle
Manufacturing Company. The company itself will distribute its product to some
selected hardware stores situated in Cebu City, Mandaue City, and Lapu-Lapu
City. Therefore, these stores will be the ones to distribute the Lucid Timber
Mahogany Bark Liquid Wax to the end consumers.

MARKETING ASPECT 85
The channel distribution used by the Lucid Pinnacle Manufacturing
Company is the one that flows from the manufacturer to retailers, which are the
wholesalers, retailers, and through online shopping websites. The Lucid Pinnacle
Manufacturing Company aims to deliver and meet the specifications of the
consumers.
MARKETING ASPECT 86
PRICING SCHEME
Pricing Scheme is used in formulating the range of standard prices of a
product in addition from the costs of developing the product. It will allow in
developing the right pricing for the target market considering their preferred price
range.
The proponents calculate the price of every material, such as the raw
materials used in making the mahogany bark liquid wax. Calculating it with how
much each of the unit costs and the materials used, direct utilities consumption for
the equipment and converting it to monetary value to identify the cost of service.
The direct labor, direct materials, and the manufacturing overhead costs
were being computed.
These are the following formulas in calculating the price of the product.
Total Manufacturing Cost = Direct Labor + Indirect Labor + Direct Materials
+ Manufacturing Overhead
Price = Total Manufacturing Cost x (1+ % Mark-up)

MARKETING ASPECT 87
PRICING CALCULATIONS
DIRECT MATERIAL
Items that are needed for production are usually listed in the bill of materials
file for a product. In the table below, it will show the calculation of the particulars of
Direct Materials needed for production. The direct materials of Lucid Pinnacle
Manufacturing Company are the components in producing Lucid Timber
Mahogany Bark Liquid Wax in larger quantities of direct materials to minimize
its cost. The total cost of the direct materials is Php 45.31. The components
purchased in different suppliers can produce 266,436 units).

MARKETING ASPECT 88
TABLE 64: DIRECT MATERIALS COST
DIRECT MATERIALS
RAW MATERIALS QUANTITY PRICE TOTAL PRICE
KILOGRAM PHP
MAHOGANY BARK 26,644 20.00 532,880.00
POLYURETHANE
NITROCELLULOSE 66,609 96.00 6,511,897.87
LACQUER
CU.METERS ANNUAL PRICE
METROPOLITAN
212,740.75 212,740.75
WATER 199,287
PIECES PRICE
METAL TIN CAN (1 L)
CONTAINER W/
266,436 17.00 4,646,303.87
CUSTOMIZED
PACKAGING LABEL
CARTON BOXES
CUSTOMIZED WITH 11,102 15.00 166,530.00
LOGO
OVERALL TOTAL COST 12,070,352.49
𝑻𝒐𝒕𝒂𝒍 𝒑𝒓𝒐𝒅𝒖𝒄𝒕 𝒄𝒐𝒔𝒕 𝒇𝒐𝒓 𝒅𝒊𝒓𝒆𝒄𝒕 𝒎𝒂𝒕𝒆𝒓𝒊𝒂𝒍

𝑷𝒓𝒊𝒄𝒆 𝒂𝒍𝒍𝒐𝒄𝒂𝒕𝒆𝒅 𝒑𝒆𝒓 𝒑𝒓𝒐𝒅𝒖𝒄𝒕 =
𝑫𝒆𝒔𝒊𝒈𝒏 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚
𝑷𝒉𝒑 𝟏𝟐, 𝟎𝟕𝟎, 𝟑𝟓𝟐. 𝟒𝟗

𝑷𝒓𝒊𝒄𝒆 𝒂𝒍𝒍𝒐𝒄𝒂𝒕𝒆𝒅 𝒑𝒆𝒓 𝒑𝒓𝒐𝒅𝒖𝒄𝒕 = = 𝑷𝒉𝒑 𝟒𝟓. 𝟑𝟏
𝟐𝟔𝟔, 𝟒𝟑𝟔 𝒖𝒏𝒊𝒕𝒔
MARKETING ASPECT 89
DIRECT LABOR
Production or services labor that is assigned to a single product, cost center,
or work order is known as direct labor. Direct labor is the labor of the production
crew that produces items, such as machine operators, assembly line operators,
painters, and so on, when a business manufacture product. Direct labor is defined
as the labor of those who deliver services directly to clients, such as consultants
and lawyers, when a business provides services.
The table below shows the four (4) direct laborers’ annual total salary of
Php 581,760.00. The worker will have a minimum wage of Php 404.00 per day.
TABLE 65: DIRECT LABOR COST
DIRECT LABOR
HEADCOUN DAILY MONTHLY ANNUAL
POSITION
T WAGE SALARY SALARY
PRODUCTION
WORKER DAY 4 ₱ 404.00 ₱ 12,120.00 ₱ 581,760.00
SHIFT
TOTAL ₱ 581,760.00
𝑷𝒉𝒑 𝟓𝟖𝟏, 𝟕𝟔𝟎. 𝟎𝟎

𝑷𝒓𝒊𝒄𝒆 𝒂𝒍𝒍𝒐𝒄𝒂𝒕𝒆𝒅 𝒑𝒆𝒓 𝒑𝒓𝒐𝒅𝒖𝒄𝒕 = = 𝑷𝒉𝒑 𝟐. 𝟏𝟖
𝟐𝟔𝟔, 𝟒𝟑𝟔 𝒖𝒏𝒊𝒕𝒔
MARKETING ASPECT 90
MANUFACTURING OVERHEAD
All secondary costs spent throughout the manufacturing process are
referred to as manufacturing overhead. This overhead is calculated based on the
number of units generated within a reporting period. Manufacturing overhead does
not include any of a company's sales or administrative costs.
The table below shows the annual manufacturing overhead of Lucid
Pinnacle Manufacturing Company, which consists of Indirect Labor, Indirect
Materials, Utilities Expense, Rent Expense, and Depreciation. The total amount of
the annual manufacturing overhead is Php 7,297,442.75.
TABLE 66: MANUFACTURING OVERHEAD COST
MANUFACTURING OVERHEAD COSTS

INDIRECT LABOR ₱ 4,247,391.60
INDIRECT
₱ 12,760.00
MATERIALS
UTILITIES ₱ 419,442.33
RENT ₱ 1,980,000.00
DEPRECIATION ₱ 637,848.82
TOTAL ₱ 7,297,442.75
𝑷𝒉𝒑 𝟕, 𝟐𝟗𝟕, 𝟒𝟒𝟐. 𝟕𝟓

𝑷𝒓𝒊𝒄𝒆 𝒂𝒍𝒍𝒐𝒄𝒂𝒕𝒆𝒅 𝒑𝒆𝒓 𝒑𝒓𝒐𝒅𝒖𝒄𝒕 = = 𝑷𝒉𝒑 𝟐𝟕. 𝟑𝟗
𝟐𝟔𝟔, 𝟒𝟑𝟔 𝒖𝒏𝒊𝒕𝒔
MARKETING ASPECT 91
TABLE 67: SUMMARY OF MANUFACTURING COST
SUMMARY
DIRECT
₱ 12,070,352.49
MATERIALS
DIRECT LABOR ₱ 581,760.00
MANUFACTURING
₱ 7,297,442.75
OVERHEAD
TOTAL ₱ 19,949,555.24
TABLE 68: PRODUCT SELLING PRICE
COST PER LITER ₱ 74.88

MARK-UP 40%
PRICE WITH MARK-UP ₱ 104.83
RETAIL PRICE ₱ 109.00
Selling Price = Cost/Unit + Cost/Unit (% Mark-Up)
The product’s price is Php 109.00 considering the mark up of 40%. In allocating
the amount of each customer purchasing the product, it is justifiable that the
indirect labor, the direct materials, and rent expense will have a high cost because
these are essential to produce a good quality product for the customers. In indirect
labor, the manager should consistently manage the company to maximize workers’
good performance.
The table below shows the projected selling price per Lucid Timber
Mahogany Bark Liquid Wax. The projected price is based on the proponent’s
forecasted inflation rate for the upcoming years. 3.7% for 2022, 3.3% for 2023,
3.5% for 2024, 3.8% for 2025, 3.6% for 2026. The projected prices for the product
MARKETING ASPECT 92
will be used for the product revenue under the Financial Aspect section of this
study.
TABLE 69: PROJECTED PRICE OF THE PRODUCT
YEAR PROJECTED PRICE

2022 ₱ 109.00
2023 ₱ 112.60
2024 ₱ 116.54
2025 ₱ 120.97
2026 ₱ 125.33
TECHNICAL ASPECT 93
TECHNICAL ASPECT 94
SCOPE OF TECHNICAL ASPECT
 Introduction
 Product Characteristics
 Bill of Materials
 Machineries & Equipment
 Capacity Planning
 Direct Material Re-Order Point
 Inventory Management
 Cebu Port Authority’s Terms and Conditions
 Import Charges
 Freight Calculations
 Manufacturing Process
 Process Flow Chart
 Flow Process Chart
 Worker and Machine Process Chart
 Space Requirements
 Factor Rating of the Three (3) Locations
 Manufacturing Layout
 Material Handling
 Quality Assurance
 Maintenance Requirements
TECHNICAL ASPECT 95
 Uniform & ID Design
 Waste Management
 Occupational Health and Safety Management
 Chemical Safety Procedure on Polyurethane
 Safety Equipment
 List of Establishments
 Supply Chain Management
 Cost Allocation
 Overall Costs
 Utilities
 Manpower Requirements
 List of Suppliers
TECHNICAL ASPECT 96
INTRODUCTION
The feasibility study on the proposed production of Lucid Timber
Mahogany Liquid Wax in the four areas of Cebu mainly: (1) Cebu Province, (2)
Cebu City, (3) Mandaue City, (4) Lapu-Lapu City. It requires a comprehensive plan
on the design for the technical aspect. This aspect talks about the company’s
production management, and it is one of the major factors in determining whether
the proposed business is feasible or not. There are different factors to consider in
which can help the production to have a better productivity output from the man,
machines, and materials. It also involves the safety of the worker and how to
properly execute the production process step by step. Finding an allocation of
machines, equipment, office supplies, safety equipment, cleaning supplies that
would help the business sustain its operations while maintaining lower costs. This
portion would elaborate the following factors in relating on how the proposed
business works during the implementation stage.

TECHNICAL ASPECT 97
EXECUTIVE SUMMARY
 Lucid Pinnacle Manufacturing Company will be locating its warehouse
plant at Barangay Tingub, Mandaue City, Cebu with a floor area size of
1,100 square meters.
 The qualitative and quantitative factors were considered in determining the
location of the manufacturing plant.
 The chosen location for the warehouse plant has Php 165,000.00 rent per
month.
 The Lucid Pinnacle Manufacturing Company will be paying all the
expenses in purchasing and importing items such as machineries and raw
materials from foreign countries. These fees include harbor fees, wharfage
fees, stevedoring & arrastre handling, tariff, Bureau of Customs Import fees,
gob rate, and foreign freight company charges.
 Direct materials that are from foreign country are metal tin can and
polyurethane.
 The packaging label used in Lucid Timber Mahogany Bark Liquid Wax
is included in having a customized logo design in purchasing metal tin can
product.
 The payment type for the shipment of machines imported from China is
through Bank Wire Transfer.

TECHNICAL ASPECT 98
MAJOR ASSUMPTIONS
 Lucid Pinnacle Manufacturing Company will start its operation in the
year 2022.
 The company shall operate from Monday to Sunday, from 8:00 am to 5:00
pm.
 The supplier of the company’s electricity will be the Visayan Electric
Company (VECO)
 The supplier of the company’s water will be Metropolitan Cebu Water
District (MCWD).
 The company shall deliver Lucid Timber Mahogany Liquid Wax to
selected large scale hardware stores and small to medium hardware
enterprises all throughout Cebu.
 The direct material for water is included in the bill of materials but there shall
be no record for its inventory.
 The conversion of USD to PHP is USD 1.00 is equal to Php 50.79 as of
October 15, 2021.

TECHNICAL ASPECT 99
PRODUCT CHARACTERISTICS
Lucid Timber Mahogany Liquid Wax is comprised of pure mahogany
bark that has been blended with chemicals to give it a shine when applied to
furniture. Furthermore, this product is extremely advantageous to all homes,
workplaces, flats, and any other establishment with furniture. Mahogany bark liquid
wax is made from natural ingredients and matches the exquisite wooden surface.
This is the very first one made in the Philippines.
Features of the Product
 Prevention of rotting. Woods are prone to rotting without being sealed with
wood coating. Once you put Lucid Timber Mahogany Liquid Wax it
would enhance the color of wooden furniture/floorings.
 Simplicity of Use. The Lucid Timber Mahogany Liquid Wax has a
polyurethane mixture that would help enhance the color of the wood mixed
with mahogany liquid water based.
 Composition. It is naturally made with powdered mahogany bark mixed
with water and polyurethane to enhance its aesthetic color finish.

TECHNICAL ASPECT 100
TABLE 70: PHYSICAL CHARACTERISTICS OF Lucid Timber Mahogany
Liquid Wax
PHYSICAL CHARACTERISTICS
85 mm in diameter and 175
Metal Tin Can
mm in height
Color of Liquid Mahogany
Type of Lid Lever Lid
Uses of the Product Lucid Timber Mahogany Liquid Wax
 Color Enhancement for Wooden Furniture
 Color Enhancement for Wooden Flooring
FIGURE 26: PRODUCT STRUCTURE TREE
LEVEL 0
LEVEL 1
POLYURETHANE
MAHOGANY
NITROCELLULOSE
BARK POWDER METAL TIN
LACQUER WATER
CAN
LEVEL 2
MAHOGANY
BARK
TABLE 71: ANNUAL USAGE RATE BILL OF MATERIALS
UNIT OF
ITEM QTY PRICE COST
MEASURE
Mahogany Bark 26,644 kg Php 20.00 532,880.00
Polyurethane Nitrocellulose
66,609 kg Php 96.00 6,511,897.87
Lacquer
Metropolitan Water (MCWD) 199,287 Cu.Meters Php 30.50 212,740.75
Metal Tin Can 1 L 266,436 pieces Php 17.00 4,646,303.87
Carton Boxes 11,102 pieces Php 15.00 166,530.00
TOTAL 12,070,352.49
TABLE 72: SINGLE UNIT USAGE RATE BILL OF MATERIALS
UNIT OF
ITEM QTY PRICE COST
MEASURE
Mahogany Bark 0.1 kg Php 20.00 Php 2.00
Polyurethane Nitrocellulose
0.25 kg Php 96.00 Php 24.44
Lacquer
Metropolitan Water (MCWD) 0.75 L Php 30.50 Php 0.80
Metal Tin Can 1 L 1 pieces Php 17.00 Php 17.44
Carton Boxes 0.04 pieces Php 15.00 Php 0.63
TOTAL Php 45.31
DIRECT MATERIALS
According to Madhuri Thakur, raw materials that are directly employed in
the production process of a company's goods and/or services and are an essential
component of the finished items made are referred to as direct material. The
proposed liquid wax's major ingredient, mahogany bark, will be used as the
principal raw material.

FIGURE 27: MAHOGANY BARK
MAHOGANY MAHOGANY
BARK BARK POWDER
TABLE 73: SUPPLIER INFORMATION OF MAHOGANY BARK
PARTICULARS SPECIFICATIONS
Elpedio Campanilla &
Supplier
Alejandro Gabiana
Rosario, Aloguinsan ,
Address
Cebu
Packaging Type Sack

Price Php 20.00/kg
Minimum Order Quantity 500 kg
Supply Ability 3000 kg per month
Payment Type Cash
Lead Time 2 days
TABLE 74: KILOGRAMS NEEDED DAILY FOR MAHOGANY BARK
DAILY PRODUCTION RATIO Kilograms

740 LITERS 1:10 74 kg
The needed daily production in kilograms is based on the calculation of our
annual demand divided by the number of operating days in a year.
FIGURE 28: POLYURETHANE
TABLE 75: SUPPLIER INFORMATION OF POLYURETHANE
Foshan Nanhai Huaren
Supplier
Chemical Co., Ltd.
Address Guangdong, China
Packaging Type Barrel
Price Php 96.00/kg
Minimum Order Quantity 200 kg
Supply Ability 20000 kg per month
Payment Type Cash
Lead Time 10 days
TABLE 76: KILOGRAMS NEEDED DAILY FOR POLYURETHANE
DAILY PRODUCTION RATIO Kilograms

740 LITERS 1:04 185 kg
The amount needed for polyurethane is based on the calculation of
estimated dilution level needed per liter which is around 25%.
FIGURE 29: METAL TIN CAN 1L CONTAINER
The Jiangyin Zhongming Package Co., Ltd makes metal tin container with
customized logo. The business would submit the customized logo through
electronic mail for them to ship it in our manufacturing vicinity.

TABLE 77: SUPPLIER INFORMATION OF METAL TIN CAN CONTAINER
Jiangyin Zhongming
Supplier
Package Co., Ltd.
Address Jiangsu, China
Packaging Type Carton
Price Php 17.00/piece
Minimum Order Quantity 1-5000 pieces
Supply Ability 20000 pieces/month
Payment Type Cash
Lead Time 10 days
TABLEE 78: OTHER RAW MATERIALS
PRICE
PARTICULARS SUPPLIER LEAD TIME FUNCTIONS
(PHP)
Use for mixture
30.50/cu
Metropolitan Water MCWD n/a of mahogany
meters
bark powder
To package the
lucid timber
Victory liquid wax
Carton 15 7 days
Carton metal
containers
finished goods
MACHINERIES & EQUIPMENT
Machineries and equipment are useful assets of any manufacturing firm.
These equipment plays an important role in producing quality products. These two
are critical in business, particularly in the manufacturing industry. A production will
not be able to run without these two.
The Lucid Pinnacle Manufacturing Company utilized the advancement
of technology of machines since it is essential in today’s generation is important
for the business to become sustainable in the long run.
The Lucid Pinnacle Manufacturing Company imports most of the
machines used to produce the product Lucid Timber Mahogany Liquid Wax
through online business website negotiations and electronic mailing for inquiries.
The tables below are the lists of machines that the proponents will buy their
machines.
Note: Conversion of USD to PHP is 50.79 as of October 15, 2021

FIGURE 30: PULVERIZING GRINDER MILL MACHINE
The figure above shows the pulverizing grinder mill machine used to make
mahogany bark into powder.

TABLE 79: PULVERIZING GRINDER MILL MACHINE SPECIFICATIONS
SPECIFICATIONS DESCRIPTION
Shanghai Aligned Machinery Manufacturing &
Supplier Name
Trade Co., Ltd.
Price in USD ($) $6700
Price in PHP (₱) Php 340,293.00

Dimensions (L x W x H)
1.05 x 1.76 x 0.83
in Meters
Capacity Range 150 - 300 kg
Motor Power in (kW) 7.5 kW
Voltage (V) 220 V / 380 V
Warranty Period 1 year
Cash 30% downpayment and 70% upon

Terms of Payment
delivery
Delivery Details 35 days
Packaging Type Export Standard Wooden Case
Minimum Order Quantity 1 unit
Function: It is used to pulverize mahogany bark into powder
75
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 = = 0.25 ℎ𝑜𝑢𝑟𝑠
300
FIGURE 31: BOILING TANK INDUSTRIAL STAINLESS STEEL JACKETED
MIXER KETTLE TANK
The figure above shows the boiling mixer tank used to mix the water and
mahogany bark powder.

TABLE 80: BOILING TANK INDUSTRIAL STAINLESS STEEL JACKETED
MIXER KETTLE TANK SPECIFICATIONS
Wenzhoy Qiangzhong Machinery Technology
Supplier Name
Co., Ltd.
Dimensions (D x H) in
1.00 x 1.22
Meters
Capacity 1000 L
Voltage (V) 380 V
Terms of Payment
delivery
Function: It is used to boil and mix water and mahogany bark powder
1000
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 = = 1 ℎ𝑜𝑢𝑟
1000
FIGURE 32: CLEANING FILTER HOUSING MACHINE
The figure above shows the cleaning filter housing machine used to
separate any foreign or excess objects coming from the mahogany bark liquid
mixed with water.

TABLE 81: CLEANING FILTER HOUSING MACHINE SPECIFICATIONS
Shandong YATE Water Equipment Co.,
Supplier Name
Ltd.
1.00 x 1.22
Meters
Max Flow 2 Cu. Meters / hour
Voltage (V) 380 V
Terms of Payment
delivery
Minimum Order
1 unit
Quantity
Function: It is used to filter excess mahogany bark powder mixture
740
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 = = 0.37 ℎ𝑜𝑢𝑟
2000
The filtration machine’s maximum flow is 20 cu meters per hour. Converted
into liters, it is 2,000 L. The process of filtration would then only take.
FIGURE 33: STORAGE COOLING TANK
The figure above shows the storage used for the filtered mahogany liquid
wax. This would take an estimated of 1 hour to cooldown the mixed mahogany
bark liquid in preparation for mixing it with polyurethane chemical.

TABLE 82: STORAGE COOLING TANK SPECIFICATIONS
Supplier Name Cebu Home and Builders Centre
1.2 x 1.13
Meters
Capacity 1000 L
Material Stainless Steel
Terms of Payment Full payment at Store Location
The store will provide delivery to the
Delivery Details
warehouse location
Function: It is used to temporarily store the mixture of mahogany bark
powder and water.
1000
1000
FIGURE 34: CHEMICAL STORAGE TANK WITH WHEELS
The figure above shows the storage for the chemical “polyurethane”. It is
estimated that it would take around 1 hour to transport and transfer the chemical
from the barrel to the storage tank properly and safely.

TABLE 83: CHEMICAL STORAGE TANK WITH WHEELS SPECIFICATIONS
Supplier Name Laizhou Taihe Chemical Machinery Co., Ltd
1.15 x 1.0
Meters
Capacity 1000 L
Warranty Period 1 Year
Terms of Payment
delivery
Packaging Type 1 unit
Function: It is used to temporariliy store the chemical polyurethane

nitrocellulose lacquer for preparation for the next process.
1000
1000
FIGURE 35: MIXER PAINT MACHINE
The figure above shows the paint mixer, and it is estimated that it can mix
up to 1200 L per hour.

TABLE 84: MIXER PAINT MACHINE SPECIFICATIONS
Wenzhoy Qiangzhong Machinery Technology
Supplier Name
Co., Ltd.
1.57 x 0.54 x 2.16
in Meters
Capacity 1200 L
Motor Power in (kW) 30 kW
Voltage (V) 220 V
Terms of Payment
delivery
Packaging Type Wooden Case
Function: It is used to mix polyurethane and mahogany bark liquid mixture
1000
1200
FIGURE 36: PAINT FILLING MACHINE
The figure above shows the paint filling machine. This machine would fill
the mixed mahogany bark liquid and polyurethane chemical.

TABLE 85: PAINT FILLING MACHINE SPECIFICATIONS
Zhengzhou Hongle Machinery Equipment Co.,
Supplier Name
Ltd.
1.2 x 0.55 x 1.5
in Meters
Capacity 8 liters/min
Motor Power in (kW) 100 W
Voltage (V) 220 V
Terms of Payment
delivery
Function: It is used to fill the liquid wax onto metal tin can containers
740
480
FIGURE 37: INK JET CODE PRINTER
The figure above shows the ink jet code printer used to print the
manufacturing date of the product. This would ensure proper tracking of the
finished goods inventory and following FIFO method.

TABLE 86: INK JET CODE PRINTER SPECIFICATIONS
Zhengzhou Hongle Machinery Equipment Co.,
Supplier Name
Ltd.
0.57 x 0.51 x 0.35
in Meters
Capacity 300 cans/min
Motor Power in (kW) 15 W
Voltage (V) 220 V
Terms of Payment
delivery
Function: It is used to print manufacturing date for the product
740
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 = = 0.04 ℎ𝑜𝑢𝑟
18000
FIGURE 38: CONVEYOR BELT
The figure above shows the conveyor belt. This helps in transporting the
products from one machine to another.

TABLE 87: CONVEYOR BELT SPECIFICATIONS
Supplier Name Hunan Langle Technology Co., Ltd.
2.0 x 0.6 x 0.5
in Meters
Voltage (V) 220 V
Terms of Payment
delivery
Function: It is used to transport the paint container to the next machine.

FIGURE 39: COATING ADHESION TESTER
The figure above shows the coating adhesion tester. This would ensure the
quality of the mahogany liquid wax if its properly mixed together with the
polyurethane chemical.
TABLE 88: COATING ADHESION TESTER SPECIFICATIONS
Supplier Name Dongguan Lonroy Equipment Co., Ltd.
Price in PHP (₱) Php 101,580
Power 100 W
Voltage (V) 220 V
Terms of Payment
delivery
Function: It is used for quality control on the dilution levels of the chemical
and mahogany liquid
𝑄𝑢𝑎𝑙𝑖𝑡𝑦 𝐼𝑛𝑝𝑠𝑒𝑐𝑡𝑖𝑜𝑛 𝐸𝑠𝑡. 𝑇𝑖𝑚𝑒 = 10 𝑚𝑖𝑛𝑠

TABLE 89: SUMMARY OF ESTIMATED MACHINE CYCLE TIME
MACHINE WORKING HOURS

Grinding 0.25
Boiling & Mixing 1.00
Filtration 0.37
Storing Mahogany Bark Liquid 1.00
Storing Polyutherane Chemical 1.00
Mixing Mahogany Bark Liquid and
0.83
Polyutherane Chemical
Quality Inspection 0.17
Filling 1.54
Ink Jet Code Printing 0.04
TOTAL CYCLE TIME 6.20
TABLE 90: GANTT CHART PRODUCTION SCHEDULE OF MACHINES

CAPACITY PLANNING
It is the process of determining an organization's production capacity to
satisfy changing product demand. It is the process of determining an organization's
production capacity to fulfil changing demand for its products. The following things
to consider in solving for the capacity planning is the maximum output of unit per
hour that a machine can take, working hours, number of workers operating the
machine, and its capacity in volume. The Design Capacity would be the basis for
the maximum output that a machine can operate. The Effective Capacity would be
based on the actual demand calculated on the market share and the actual output
that the business can operate.

TABLE 91: DESIGN CAPACITY
UNITS PER WORKING

PROCESS YIELD UPTIME HEADCOUNT CAPACITY
HOUR HOURS
PULVERIZING 300 100% 100% 1 1 3,000 L
BOILING 1,000 100% 100% 1 1 1,000 L

FILTERING 2,000 100% 100% 1 1 2,000 L
STORING
1,000 100% 100% 1 1 1,000 L
MIXTURE
STORING
1,000 100% 100% 1 1 1,000 L
CHEMICAL
MIXING 1,200 100% 100% 1 1 1,200 L
FILLING 1,000 100% 100% 1 1 1,000 L

PRINTING 2,250 100% 100% 0.5 1 1,125 L
DESIGN CAPACITY 1,000 L
The table above shows the design capacity of the machines in an eight-hour operation time with only one cycle per
day.
TABLE 92: OPERATION TIME
OPERATION TIME
TOTAL
9 hrs
REGULAR
BREAK TIME 1 hr
TOTAL
OPERATING
6.20 hrs
HOURS PER
DAY
ESTIMATED
SET-UP TIME 1.8 hrs
FOR MACHINES
The table above on the estimated set-up time for machines also includes
preparation time for worker to wear his personal protective equipment and packing
of finished goods.
TABLE 93: SUMMARY OF WORKING DAYS
SUMMARY OF WORKING DAYS

TOTAL NUMBER OF HOURS
9
PER DAY
TOTAL NUMBER OF SHIFTS
1
PER DAY
TOTAL AVERAGE NUMBER OF
7
DAYS PER WEEK
30
DAYS PER MONTH
360
DAYS PER YEAR
The Lucid Pinnacle Manufacturing Company has nine working hours
regular schedule in a day included with 1-hour noon break. The total number of
operating hours is 8 hours a day.

DAILY PRODUCTION EFFECTIVE CAPACITY
= 𝑁𝑂. 𝑂𝐹 𝑈𝑁𝐼𝑇𝑆 𝑃𝐸𝑅 𝐶𝑌𝐶𝐿𝐸 𝑋 𝑁𝑂. 𝑂𝐹 𝐶𝑌𝐶𝐿𝐸𝑆 𝑃𝐸𝑅 𝐷𝐴𝑌
= 740 𝑢𝑛𝑖𝑡𝑠 𝑋 1
= 740 𝑢𝑛𝑖𝑡𝑠
MONTHLY PRODUCTION EFFECTIVE CAPACITY
= 𝐷𝐴𝐼𝐿𝑌 𝑃𝑅𝑂𝐷𝑈𝐶𝑇𝐼𝑂𝑁 𝐶𝐴𝑃𝐴𝐶𝐼𝑇𝑌 𝑋 𝑁𝑂. 𝑂𝐹 𝑊𝑂𝑅𝐾𝐼𝑁𝐺 𝐷𝐴𝑌𝑆 𝑃𝐸𝑅 𝑀𝑂𝑁𝑇𝐻
= 740 𝑢𝑛𝑖𝑡𝑠 𝑋 30 𝐷𝐴𝑌𝑆
= 22,203 𝑢𝑛𝑖𝑡𝑠
ANNUAL PRODUCTION EFFECTIVE CAPACITY
= 𝑀𝑂𝑁𝑇𝐻𝐿𝑌 𝑃𝑅𝑂𝐷𝑈𝐶𝑇𝐼𝑂𝑁 𝐶𝐴𝑃𝐴𝐶𝐼𝑇𝑌 𝑋 12 𝑀𝑂𝑁𝑇𝐻𝑆
= 22,203 𝑢𝑛𝑖𝑡𝑠 𝑋 12 𝑀𝑂𝑁𝑇𝐻𝑆
= 266,436 𝑢𝑛𝑖𝑡𝑠
TABLE 94: ANNUAL CAPACITY PLANNING
YEAR 2022 2023 2024 2025 2026

DESIGN
360,000 360,000 360,000 360,000 360,000
CAPACITY
EFFECTIVE
266,436 275,574 285,585 292,800 299,315
CAPACITY
EFFICIENCY 74% 77% 79% 81% 83%
TABLE 95: RAW MATERIAL BALANCING INPUTS & LOSSES
PROCESS MACHINE UNIT INPUTS LOSS

1 Pulverizing kg 75 0.75
2 Boiling L 562.50
3 Filtering L 562.50 0.55
4 Storing Mixture L 561.95
5 Storing Chemical L 186 0.20
6 Mixing L 747.95 0.75
7 Inspection mL 747.20 0.05
8 Filling L 747.15 0.75
9 Printing pieces 746.40
The table above shows the material balancing. The mahogany bark and
polyurethane may incur some losses in every input since the production process
would not result into a 100% utilization of materials. Some of them may be left in
the machine as excess.
The daily demand of Lucid Pinnacle Manufacturing Company is 740 1-
liter metal tin cans. The overall daily weight required for the raw materials is
computed using the formula below.
𝐷𝑎𝑖𝑙𝑦 𝑤𝑒𝑖𝑔ℎ𝑡 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙 = 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝑐𝑜𝑛𝑡𝑒𝑛𝑡 𝑝𝑒𝑟 𝑙𝑖𝑡𝑒𝑟 ∗ 𝑑𝑎𝑖𝑙𝑦 𝑑𝑒𝑚𝑎𝑛𝑑
TABLE 96: DAILY MATERIAL WEIGHT REQUIREMENT
MATERIAL
CONTENT OVERALL
DAILY
MATERIALS PER UNIT AMOUNT
DEMAND
CONTAINER REQUIRED
1L
Mahogany
0.1 740 kg 74.00
Bark Powder
Polyurethane 0.25 740 L 185
Water 0.75 740 L 555
Metal Tin Can 1.0 740 pcs 740
Carton 0.03 740 pcs 31
The table above shows the required daily materials, which will serve as the
basis for effective capacity for the daily production of Lucid Timber Mahogany
Liquid Wax.
TERMS AND CONDITIONS OF CEBU PORT AUTHORITY (CPA)
Port of Cebu is in Cebu City, Philippines. It is the port that serves the Cebu
City Area, and it is managed by the Cebu Port Authority (CPA). According to the
Republic Act No. 7621, signed on June 26, 1992, to administer all ports located in
Cebu Province. This effectively separates ports from the Philippine Ports Authority
(PPA). Cebu Port Authority began its operations last January 1, 1996.
The Lucid Pinnacle Manufacturing Company strictly abides the rules
and regulations set by the CPA to import products and the terms and conditions of
handling the imported products from the port area to the warehouse facilities.
IMPORT CHARGES
The Lucid Pinnacle Manufacturing Company will be paying import
charges from the shipment of goods including its tax and custom fees after
purchasing the items such as machineries and raw materials. The basis for import
charges is price, taxes, postage weight, country of origin, customs value, packing
dimension, custom duties, and other custom fees.
HARBOR FEES
Harbor fee is the amount which the owner, agent, operator, or master of a
vessel has to pay for each entrance into or departure from a port of entry in the
Philippines.
WHARFAGE FEES
is the amount assessed against a vessel's cargo in international trade,
based on the vessel's quantity, weight, or measure received and/or released. The
person liable for such a fee is the merchandise's owner, consignee, or agent.
TABLE 97: HARBOR FEES
PARTICULARS HARBOR FEES

For each entrance
₱ 40.51
from a foreign port
For each departure
₱ 33.75
to a foreign port
TABLE 98: WHARFAGE FEES
WHARFAGE
PARTICULARS
FEES
20 ft ₱ 519.35
35 ft ₱ 656.85
40 ft ₱ 779.05
45 ft ₱ 916.50
CONTAINERIZED CARGO
It refers to non-disposable, reusable, commercial-sized shipping containers
that are commonly employed on sea and ocean-going vessels for the convenient
shipment of such items, commodities, or crafts.

TABLE 99: CONTAINER VOLUME SPECIFICATION
20 footer 40 footer
PARTICULARS
container container
Inside length 5.89 meters 12.01 meters
Inside width 2.33 meters 2.33 meters
Inside height 2.38 meters 2.38 meters
Maximum Load 28,000 kilograms 28,000 kilograms
NON-CONTAINERIZED CARGO
It refers to commodities that are shipped in parts rather than in containers.
These items are shipped in crates, bags, cartons, drums, and barrels, and their
sizes and dimensions are exceedingly huge. Break bulk is another name for NCC.
TABLE 100: LIST OF GOODS ON CONTAINERIZED AND NON-
CONTAINERIZED CARGO
TYPE OF
PARTICULARS TYPE OF CARGO
PACKAGE
Machines Containerized Cargo Wooden Box
Non-Containerized
Metal Tin Can 1 Liter Corrugated Box
Cargo
Non-Containerized
Polyurethane Drum
Cargo
TABLE 101: CLASSIFICATION OF CARGO ON MACHINERIES AND RAW
MATERIALS
PARTICULARS CLASSIFICATION
Machines General Cargo
Metal Tin Can 1 Liter General Cargo
Other
Polyurethane Dangerous/Hazardous
Cargo
STEVEDORING HANDLING SERVICES
It is loading or unloading cargo to and/or from a ship. It is vital to manage
cargo handling in ports because it may have a considerable impact on the voyage’s
profitability. The charges of current tariff for stevedoring are effective last October
19, 2020.
TABLE 102: STEVEDORING CHARGES
CURRENT ADDITIONAL TOTAL FEE

TARIFF FEE CHARGES FOR FOR
TYPE OF CARGO FCL
FOR GENERAL HAZARDOUS HAZARDOUS
CARGO CARGO CARGO
CONTAINERIZED 20 ft ₱ 1,962.00 N/A ₱ 1,962.00
NON-CONTAINERIZED Palletized ₱ 107.00 150% ₱ 267.50
NON-CONTAINERIZED Non-Palletized ₱ 150.00 150% ₱ 375.00
ARRASTRE HANDLING SERVICES
It is the fee paid by the owner, consignee, or agent of either merchandise
or baggage for the handling, receiving, and custody of imported or exported
merchandise or passenger baggage. The charges of current tariff for arrastre are
effective last October 19, 2020.

TABLE 103: ARRRASTRE CHARGES
CURRENT ADDITIONAL TOTAL FEE

TARIFF FEE CHARGES FOR FOR
TYPE OF CARGO FCL
FOR GENERAL HAZARDOUS HAZARDOUS
CARGO CARGO CARGO
NON-CONTAINERIZED Palletized ₱ 128.00 150% ₱ 320.00
NON-CONTAINERIZED Non-Palletized ₱ 161.00 150% ₱ 402.50
BUREAU OF CUSTOMS IMPORT SHIPMENT TAX
TABLE 104: IPF RATE
DUITABLE VALUE
IPF RATE
IPF/ENTRY
Up to Php 250,000 ₱ 250.00
Over Php 250,000 to
₱ 500.00
Php 500,000
Over Php 500,000 to
₱ 750.00
Php 750,000
Over Php 750,000 ₱ 1,000.00
TABLE 105: COST OF SHIPMENT ON CONTAINERIZED CARGO
TOTAL
SEA COST
PARTICULARS PRICE CUSTOM DUTIES SHIPMENT
CHARGES
COST
Pulverizing Grinder Mill
₱ 340,293.00 ₱ 40,835.16 ₱ 40,835.16
Machine
Boiling Tank ₱ 342,832.50 ₱ 41,139.90 ₱ 41,139.90
Cleaning Filter
₱ 198,081.00 ₱ 23,769.72 ₱ 23,769.72
Housing Machine
Chemical Storage
₱ 17,776.50 ₱ 123,765.87 ₱ 2,133.18 ₱ 2,133.18
Tank With Wheels
Mixer Paint Machine ₱ 101,580.00 ₱ 12,189.60 ₱ 12,189.60
Ink Jet Code Printer ₱ 99,040.50 ₱ 11,884.86 ₱ 11,884.86
Conveyor Belt ₱ 60,948.00 ₱ 7,313.76 ₱ 7,313.76
Coating Adhesion
₱ 101,580.00 ₱ 12,189.60 ₱ 12,189.60
Tester
Total Shipping Cost (Machine Price Excluded) ₱ 275,221.65
TABLE 106: COST OF SHIPMENT ON NON-CONTAINERIZED CARGO
TOTAL
PRICE PER SEA COST ANNUAL NO. OF CUSTOM ANNUAL
PARTICULARS
ORDER CHARGES ORDERS DUTIES SHIPMENT
COST
Metal Tin Can 1 L ₱ 119,178.95 ₱ 116,891.87 38 ₱ 14,301.47 ₱ 660,347.88
Polyurethane ₱ 255,744.00 ₱ 117,433.87 25 ₱ 30,689.28 ₱ 884,665.87
Total Shipping Cost ₱ 1,545,013.75
TABLE 107: FREIGHT SEA COST CHARGES CALCULATIONS
CONTAINER No. of No. of No. of SEA COST

SHIPPER CONSIGNEE POL POD INCOTERM
TYPE Shipments Invoices Containers CHARGES
Lucid Pinnacle
HIF LOGISTICS Manufacturing Shenzen, Cebu EXW 40 foot 1 1 1 ₱ 123,765.87
Company China
Lucid Pinnacle Non-

HIF LOGISTICS Manufacturing Shenzen, Cebu EXW Containerized 38 38 1 ₱ 116,891.87
Company China Palletized
Lucid Pinnacle Non-

HIF LOGISTICS Manufacturing Shenzen, Cebu EXW Containerized 25 25 1 ₱ 117,433.87
Company China Non-Palletized
TABLE 108: FREIGHT CALCULATIONS OF CONTAINERIZED CARGO MACHINES
ORIGIN CHARGES DESTINATION CHARGES RECEIPT
(Arrastre/Stevedoring/
Wharfage/AISL/CSF)
Customs Clearance
Receipted Charges
Receipted Charges
(IP/CTFAIP/PCCI
Shipping Line
CLEARANCE
Surcharages
GOB RATE
CUSTOMS
(CIC/CRS)
Port Fees
Trucking
Handling
Handling
THC
Per
Per Cont Per Shpt Per Cont Per Shpt Per Shpt Per Cont Per Shpt Per Cont Per Cont Per Cont
Shpt
₱63,487.50 ₱5,586.90 ₱7,618.50 ₱ 2,539.75 ₱7,872.45 ₱9,278.83 ₱2,539.50 ₱7,325.44 ₱250.00 ₱7,109.00 ₱10,158.00
TABLE 109: FREIGHT CALCULATIONS OF NON-CONTAINERIZED CARGO METAL TIN CAN
Wharfage/AISL/CSF)
Customs Clearance
Receipted Charges
Receipted Charges
(IP/CTFAIP/PCCI
Shipping Line
CLEARANCE
Surcharages
GOB RATE
CUSTOMS
(CIC/CRS)
Port Fees
Trucking
Handling
Handling
THC
Per
Shpt
₱63,487.50 ₱5,586.90 ₱7,618.50 ₱ 2,539.75 ₱7,872.45 ₱9,278.83 ₱2,539.50 ₱7,325.44 ₱250.00 ₱7,109.00 ₱10,158.00
TABLE 110: FREIGHT CALCULATIONS OF NON-CONTAINERIZED CARGO POLYURETHANE
Wharfage/AISL/CSF)
Customs Clearance
Receipted Charges
Receipted Charges
(IP/CTFAIP/PCCI
Shipping Line
CLEARANCE
Surcharages
GOB RATE
CUSTOMS
(CIC/CRS)
Port Fees
Trucking
Handling
Handling
THC
Per
Shpt
₱63,487.50 ₱5,586.90 ₱7,618.50 ₱ 2,539.75 ₱7,872.45 ₱9,278.83 ₱2,539.50 ₱7,325.44 ₱250.00 ₱ 777.00 ₱10,158.00
The following freight calculations are calculated from USD ($) to Philippine Peso (₱). Every 1 USD is equivalent to
Php 50.79 as of October 15, 2021.

DIRECT MATERIAL RE-ORDER POINT
The unit quantity on hand that prompts the acquisition of a preset amount
of replenishment inventory is known as a reorder point. If everything goes
according to plan with the purchase process ad supplier fulfillment, the
replacement inventory should arrive just before the last of the on-hand inventory
is used up. Because each item has a varied usage rate and requires various
amounts of time to acquire a replenishment delivery from a supplier, the reorder
point can be different for each item of inventory.
Economic Order Quantity (EOQ) is the optimal order amount for a
corporation to purchase to save inventory costs including holding charges, shortfall
costs, and order costs. The ideal order quantity for a corporation is the one that
minimizes the overall expenses of ordering, receiving, and retaining inventory. The
formula is derived under the following assumptions.
1. Relatively uniform and known demand.
2. Fixed Item Cost
3. Fixed Ordering and Holding Cost
4. Constant Lead Time

TABLE 111: DIRECT MATERIAL REORDER POINT AND SAFETY STOCK CALCULATION
DAILY SAFETY SAFETY

MATERIALS UNIT OF MEASURE LEAD TIME ROP
USAGE STOCK DAYS
MAHOGANY BARK kg 74 2 370 2 518
POLYURETHAHNE kg 185 10 1295 7 3145
METAL TIN CAN pieces 740 10 3700 5 11100
CARTON pieces 31 7 124 4 341
FORMULA ROP:
𝑅𝑂𝑃 = (𝐿𝐸𝐴𝐷 𝑇𝐼𝑀𝐸 𝑥 𝐷𝐴𝐼𝐿𝑌 𝑈𝑆𝐴𝐺𝐸) + 𝑆𝐴𝐹𝐸𝑇𝑌 𝑆𝑇𝑂𝐶𝐾
𝐵𝐴𝑆𝐼𝐶 𝑆𝐴𝐹𝐸𝑇𝑌 𝑆𝑇𝑂𝐶𝐾 = 𝐴𝑉𝐸. 𝐷𝐴𝐼𝐿𝑌 𝑈𝑆𝐴𝐺𝐸 ∗ 𝑆𝐴𝐹𝐸𝑇𝑌 𝐷𝐴𝑌𝑆
NOTE: Calculation of safety days is based on the proponents’ discretion of how many days the materials should serve as
the safety stock to avoid stockout.

TABLE 112: ECONOMIC ORDER QUANTITY
PRICE
UNIT OF DAILY ANNUAL ORDERING CARRYING
MATERIALS PER EOQ
MEASURE USAGE USAGE COST COST
UNIT
MAHOGANY BARK kg 74 26640 ₱ 518.24 ₱ 20.00 ₱ 4.00 2627
POLYURETHAHNE kg 185 66600 ₱ 1,018.24 ₱ 96.00 ₱ 19.20 2658
METAL TIN CAN pieces 740 266400 ₱ 318.24 ₱ 17.00 ₱ 3.40 7062
CARTON pieces 31 11160 ₱ 118.24 ₱ 15.00 ₱ 3.00 938
FORMULA:
2𝑋𝐷𝑋𝑆
𝐸𝑂𝑄 =
𝐻
Where: D= Annual Usage, S = Ordering Cost, H = Carrying Cost

TABLE 113: ORDERING COSTS CALCULATION
POWER TOTAL
EQUIPMENT QTY KW USAGE
RATE COST
PC 1 0.225 0.167 ₱ 12.51 ₱ 0.47
PRINTER 1 0.175 0.083 ₱ 12.51 ₱ 0.18
TELEPHONE 1 0.100 0.167 ₱ 12.51 ₱ 0.21
TOTAL ₱ 0.86
LABOR
WORKING PROCESSING
POSITION COST PER TOTAL LABOR COST
TIME TIME
DAY
INVENTORY CLERK 480 ₱ 556.27 15 ₱ 17.38
TABLE 114: ORDERING COSTS
ORDERING
MATERIALS ENERGY LABOR SUPPLIER
COST
MAHOGANY BARK ₱ 0.86 ₱ 17.38 ₱ 500.00 ₱ 518.24
POLYURETHAHNE ₱ 0.86 ₱ 17.38 ₱ 1,000.00 ₱ 1,018.24
METAL TIN CAN ₱ 0.86 ₱ 17.38 ₱ 300.00 ₱ 318.24
CARTON ₱ 0.86 ₱ 17.38 ₱ 100.00 ₱ 118.24
TABLE 115: SUMMARY OF ROP, EOQ, AND SAFETY STOCK
UNIT OF SAFETY
MATERIALS EOQ ROP
MEASURE STOCK
MAHOGANY BARK kg 2627 518 370
POLYURETHAHNE kg 2658 3145 1295
METAL TIN CAN pieces 7062 11100 3700
CARTON pieces 938 341 124
The table above shows the summary of the Re-Order Point, Economic
Order Quantity, and Safety Stock.
TABLE 116: NUMBER OF ORDERING POINT
UNIT OF ANNUAL NO. OF

MATERIALS EOQ
MEASURE DEMAND ORDERS
MAHOGANY BARK kg 2627 26640 10
POLYURETHAHNE kg 2658 66600 25
METAL TIN CAN pieces 7062 266400 38
CARTON pieces 938 11160 12
The table above shows the number of orders per year. It is calculated by
dividing the annual demand by the economic order quantity.

TABLE 117: LENGTH OF ORDERING CYCLE
The time between when an order is placed and when the following order is placed is referred to as an order cycle.
The total number of order cycles completed in a year is referred to as the cycles per year.
NO. OF
UNIT OF ANNUAL LENGTH OF
MATERIALS EOQ WORK
MEASURE DEMAND CYCLE DAYS
DAYS
MAHOGANY BARK kg 2627 26640 360 36
POLYURETHAHNE kg 2658 66600 360 14
METAL TIN CAN pieces 7062 266400 360 10
CARTON pieces 938 11160 360 30
FORMULA:
𝐸𝑂𝑄
𝐿𝐸𝑁𝐺𝑇𝐻 𝑂𝐹 𝑂𝑅𝐷𝐸𝑅 𝐶𝑌𝐶𝐿𝐸 = ∗ 𝑁𝑂. 𝑂𝐹 𝑊𝑂𝑅𝐾 𝐷𝐴𝑌𝑆
𝐴𝑁𝑁𝑈𝐴𝐿 𝐷𝐸𝑀𝐴𝑁𝐷
INVENTORY MANAGEMENT
The process of ordering, storing, using, and selling a company's inventory
is referred to as inventory management. This comprises the storage and
processing of raw materials, components, and completed products, as well as the
administration of raw materials, components, and final products. Inventory
management encompasses all aspects of inventory management, from raw
materials to completed goods.
FIFO
First In, First Out (FIFO) is a system of asset management and valuation in
which the assets that are generated or acquired first are sold, used, or disposed
of first. The FIFO technique is a critical approach for valuing a company's final
inventory at the end of an accounting period. This figure can assist firms in
determining their Cost of Goods Sold, which is a crucial figure for budgeting and
determining profitability. It also mitigates the effects of inflation by assuming that
the cost of purchasing newer inventory will be higher than the cost of purchasing
older inventory. Finally, inventory obsolescence is reduced.
PERIODIC INVENTORY SYSTEM
When a physical inventory count is performed, a periodic inventory system
just updates the ending inventory balance in the general ledger. All purchases
made between physical inventory counts are documented in a purchasing account
under the periodic inventory system. The periodic inventory method has the
advantage of eliminating the requirement for separate accounting for raw

materials, work-in-progress, and finished goods inventories. Only purchases are
kept track of.
INVENTORY TAG
A tagging inventory system is a manual method that tracks goods
movement by using actual tags. A price tag is attached to each item, which is
removed after it is purchased. The tags you collect become your sales record,
allowing you to produce sales charts and statistics. You can use the reports to
compare the remaining inventory to the sales to ensure correctness. Because of
the work involved in the manual approach, this alternative is suitable for smaller
firms with lower sales volumes. A barcode label or plate applied to a product or
package for tracking purposes is known as an inventory tag. These tags can be
used for human inventory counts or for automatic counting when connected to a
scanner system and an Inventory Management System (IMS).

MANUFACTURING PROCESS
Manufacturing process refers to a process, line, method, activity, or
technique, as well as a series or combinations of processes, that are required to
produce a product or perform a service.
The measurement needed of the number of units for each of the raw
materials is calculated based on the daily effective capacity of the product Lucid
Timber Mahogany Liquid Wax. The first process is to pulverize the mahogany
bark into powder and transport the powder to the boiler mixed with water coming
from the MCWD (Metropolitan Cebu Water District). After boiling and mixing, it is
then transported to the storage tank and allow the temperature to cool down in
preparation for the mixing of chemical. While in the process of cooling down the
mahogany bark liquid, transferring the polyurethane coming from the barrel onto
the chemical tank. After an hour, the storage tank of mahogany bark liquid is then
transferred to the mixing machine together with the polyurethane chemical in the
chemical tank storage. The dilution must have 75% of mahogany liquid and 25%
polyurethane. After mixing for about an hour, the production worker would take a
sample of the mixed liquid wax and submit it for testing for quality assurance to the
chemical engineer assigned and quality control officer. After approval, the mixed
liquid wax is then transported through pipe systems onto the paint filling machine.
The production worker would prepare metal tin cans on the side to transport it
using conveyor belt. After filling each metal tin can, it is transported to the ink jet
code printer to print the manufacturing date of the product. The production worker
would wait at the end of the conveyor belt to collect the finished good product and
put it inside the carton box to put it into the finished goods storage. Each product
will undergo further inspection to ensure good quality before putting it inside the
carton box.
FIGURE 40: PRODUCTION PROCESS OF Lucid Timber Mahogany Liquid Wax
1 2 3 4
BOILING &
MEASURING PULVERIZING FILTERING
MIXING
5 6 7 8
INSPECT
STORING STORING
QUALITY
MAHOGANY CHEMICAL MIXING
ASSURANCE
LIQUID WAX POLYURETHANE
DILLUTION
9 10 11
FILLING PRINTING PACKING

PROCESS FLOW DIAGRAM
The figure below shows the complete process of making Lucid Timber
1. Measuring the weight of the mahogany bark using industrial weighing scale.
2. Pulverize the mahogany bark into powder pieces.
3. Boiling and Mixing the Mahogany Bark Powder and Water.
4. Filter the Mahogany Bark Liquid.
5. Store and cooldown the mahogany bark liquid onto the storage tank.
6. Store the chemical “polyurethane” in preparation for the next mixing
process.
7. Store the mahogany liquid and polyurethane chemical with a dilution of 75%
on the former and 25% on the latter.
8. Get a sample from the mixture and test it using Coat Adhesion Tester.
9. Prepare metal tin can in order to fill the Paint Filling Machine of the mixture
of mahogany liquid and polyurethane.
10. Print the metal tin can with its manufacturing date.
11. Pack the Lucid Timber Mahogany Liquid Wax onto the carton boxes.
FIGURE 41: PROCESS FLOW DIAGRAM

FIGURE 42: LEGEND SYMBOLS OF PROCESS FLOW DIAGRAM
LEGEND
INSPECTION
STORAGE RAW
MATERIAL MAHOGANY
BARK
STORAGE POLYURETHANE
STORAGE METAL TIN CAN
STORAGE FINISHED GOODS
STORAGE MAHOGANY
BARK LIQUID
OPERATION
TABLE 118: PROCESS FLOW CHART
CHART #: _____
SHEET #: _____ SUMMARY
ACTIVITY: Production PRESENT PROPOSE SAVING

Lucid Timbe Liquid Wax
LOCATION: Mandaue
City OPERATION
PREPARED DATE:
TRANSPORTATION
APPROVED DATE:
INSPECTION
OPERATOR:
DELAY
SUPERVISOR:
STORAGE
DISTANCE(METER)
DISTANCE TIME SYMBOL DESCRIPTION
(m) (min)
THE WORKER WILL GET
THE MATERIALS FROM
THE STORAGE
THE WORKER WILL MOVE
1 THE MATERIALS TO THE
PRODUCTION AREA
THE WORKER WILL
INSPECT THE WEIGHT OF
0.17
THE NEEDED MAHOGANY
BARK
THE WORKER WILL PUT
THE MAHOGANY BARK TO
1
THE PULVERIZER
MACHINE
THE WORKER WILL MOVE
THE POWDERED
1
MAHOGANY BARK TO THE
BOILER MIXER MACHINE
THE WORKER WILL
0.33 FILTER THE MAHOGANY
LIQUID MIXTURE
THE WORKER WILL

STORE THE MAHOGANY
LIQUID MIXTURE
THE WORKER WILL
STORE THE
1 POLYURETHANE
CHEMICAL IN A
SEPARATE TANK
THE WORKER WILL MIX
1 THE MAHOGANY LIQUID
AND POLYURETHANE
THE WORKER WILL
SUBMIT A SAMPLE OF
MIXTURE TO TEST
0.17
DILUTION LEVEL TO THE
CHEMICAL ENGINEER/QA
OFFICER
THE CHEMICAL
ENGINEER/QA OFFICER
10
WILL INSPECT THE
MIXTURE
THE WORKER WILL
TRANSPORT THE METAL
1
TIN CAN NEAR THE
FILLING MACHINE
THE WORKER WILL
0.17 OPERATE THE FILLING
MACHINE
THE WORKER WILL
TRANSPORT THE METAL
0.08
TIN CAN TO THE INK JET
CODE PRINTER
THE WORKER WILL
0.08 OPERATE THE INK JET
CODE PRINTER
THE WORKER WILL PUT
0.02 THE METAL TIN CAN
INSIDE A CARTON BOX
The process flow chart shows the step-by-step process of making Lucid
Timber Mahogany Bark Liquid Wax with its estimated number of minutes. The
process begins with getting mahogany bark from storage. The process for each
product produced lasted 17.02 minutes

FIGURE 43: FLOW PROCESS CHART
MEASURE PULVERIZING
STORING
MAHOGANY MAHOGANY BOILING &
START FILTERING MAHOGANY
BARK BARK INTO MIXING
LIQUID WAX
WEIGHT POWDER
INSPECT
STORING
QUALITY IS DILLUTION LEVEL
PASS QA TEST? MIXING CHEMICAL
ASSURANCE 75/25 RATIO?
POLYURETHANE
DILLUTION
FILLING PRINTING PACKING END

TABLE 119: WORKER AND MACHINE PROCESS CHART
Product: Lucid Timber Liquid Wax Operator:

Process: Whole Production Process Charted by:
TIME TIME
STEP WORKER STEP MACHINE
(hrs.) (hrs.)
The worker will prepare
1 the raw materials and 0.08 1
measure.
The worker will put the
2 mahogany bark into the 0.08 2
pulverizing machine
Pulverizing of
3 3 0.25
Mahogany Bark
4 4 1.00 Boiling and Mixing
5 5 0.37 Filtration
Storing Mahogany Bark
6 Liquid and Storing 1 6
Polyurethane Chemical
Mixing Mahogany Bark
Liquid and
7 7 0.83
Polyurethane
Chemical
8 Quality Inspection 0.17 8
Transporting Metal Tin
9 Containers near Filling 0.08 9
Machine
Filling Mahogany
10 10 1.54 Liquid Wax to Metal
Tin Can Containers
11 11 0.04 Ink Jet Code Printing
Packing of Metal Tin Can
12 Containers to Carton 0.67 12
Boxes
TABLE 120: SUMMARY OF WORKER AND MACHINE PROCESS CHART
SUMMARY
WORKER MACHINE
EFFECTIVE TIME 2.17 hrs 4.03 hrs
INEFFECTIVE
4.03 hrs 2.17 hrs
TIME
TOTAL 6.20 hrs
The worker and machine chart shows the relationship between the operator
and the machines used in the production. The table shown above shows that the
machine has more time used during the production process. This implies that the
production will only need lesser operators.

TABLE 121: SIPOC DIAGRAM
SIPOC DIAGRAM
SUPPLIERS INPUTS PROCESSES OUTPUTS CUSTOMERS
740 LITERS
OF METAL
TIN CAN
SUPPLY RAW
NAME QUANTITY MAHOGANY
ABILITY MATERIALS
LUCID
TIMBER
LIQUID WAX
Elpedio
Campanilla
Farm & 2,000 kg Mahogany Mahogany
74 kg Pulverizing Consumers
Alejandro per month Bark Bark Powder
Gabiana
Farm
Mahogany
Boiling & Mixing Retailers
Bark Liquid
Mahogany
Filtering Distributors
Bark Liquid
Storing Mahogany
Liquid
Foshan
Nanhai
20,000 kg Storing Chemical
Huaren 185 L Polyurethane
per month Polyurethane
Chemical
Co., Ltd.
Mahogany
Mixing Bark Liquid
Wax
Inspect Quality Mahogany
Assurance Dillution Liquid Wax
Jiangyin
Zhongming
Mahogany
Package Metal Tin Can Filling
Liquid Wax
Company
Ltd.
Mahogany
Printing
Liquid Wax
Victory 5,000 per Mahogany
Carton Packing
Carton day Liquid Wax
PROVISIONS FOR PILFERAGE OF MATERIALS
There are some components that pilferage can arise for reasons both within
the organization and among the individuals in the surrounding area. To eliminate
employee theft, such laws, procedures, and practices should be implemented. The
company's theft-prevention plan is as follows:
 Written Policies - To be assessed, the organization ought to have a clearer
view of its rules and regulations. Policies are necessary for assigning legal
responsibilities to employees and enforcing them.
 Review Application - The first process in recruiting a new employee or
replacing an established one is to review the application. Managers are in
charge of conducting background checks and evaluating employees. It
must be determined whether employees have any existing charges (theft)
or other concerns that would prevent the organization from hiring the
applicant. Regardless of how qualified the application is, the company
would not accept the chance; consequently, a background check on the
employee would save the organization's reputation.
 Cameras - Installing cameras or closed-circuit television (CCTV) is the most
necessary tool for getting access to an employee's work within the
organization. Cameras will be installed where necessary, and sensitive
materials, such as those used to hold materials and those used to store
cash, may be lost.

 Access and Audits - Only trustworthy and authorized personnel should be
able to access the company's assets. However, preventive measures and
processes may not be sufficient to safeguard assets; as a result, an
effective auditing approach is used on a regular basis, which is more
important than prevention. Furthermore, an unannounced inspection is an
excellent method for anticipating employee conduct during working hours.
Employees detected breaking the rules and stealing would face disciplinary
action, which may include written warnings, termination, and the possibility
of filing criminal charges, depending on the severity of the violation.

SPACE REQUIREMENTS
The purpose of space requirements is that it defines your immediate space
needs or your needs in future periods. Also, once you define your space
requirements, you can work with them in portfolio scenarios, where the space
requirements convert to allocations that you place on stack plans.

TABLE 122: SAPCE REQUIREMENTS OF MACHINES FOR PRODUCTION
DIMENSION (IN
QUANTITY MACHINE AREA (SQ. M)
METERS
1 PULVERIZER GRINDER MILL MACHINE 1.05 X 1.76 1.848
BOILING TANK INDUSTRIAL STAINLESS
1 1.00 X 1.22 (DxH) 0.79
STEEL JACKETED MIXER KETTLE TANK
1 CLEANING FILTER HOUSING MACHINE 1.00 X 1.22 (DxH) 0.79
1 STORAGE COOLING TANK 1000 L 1.1 X 1.18 (D X H) 0.95
1 CHEMICAL STORAGE TANK WITH WHEELS 1.4 X 1 (D X H) 1.54
1 MIXER PAINT MACHINE 1.57 X 0.54 0.8478
1 PAINT FILLING MACHINE 1.22 X 0.55 0.671
1 INK JET CODE PRINTER 0.57 X 0.51 0.2907
3 BELT CONVEYOR (2 METERS) 2 X 0.6 3.6
TOTAL 11.3275
TABLE 123: SPACE REQUIREMENTS OF OTHER AREAS AND ROOMS
DIMENSION (IN
QUANTITY PARTICULARS AREA (SQ. M)
METERS)
1 RAW MATERIALS INVENTORY AREA 17.12 x 2.90 72
1.25 x 3.00 + 1.20
1 QUALITY CONTROL ROOM 8.43
x 3.90
1 MAINTENANCE AND REPAIR ROOM 4.8 x 2.70 12.96
1 ELECTRICAL ROOM 3.22 x 2.70 8.7
1 CANTEEN 11.25 x 4.00 45
1 FEMALE CR 4.00 x 3.00 12
1 MALE CR 4.00 x 3.00 12
1 LOCKER ROOM AREA 4 x 6.87 30
1 GUARD POST 2.45 x 2.00 5
10.14 x 2.97 +
1 MEETING ROOM 54.67
3.03 x 8.10
1 FINISHED GOODS STORAGE 17.12 x 2.90 61
1 WASTE DISPOSAL AREA 4.39 X 9.61 41
1 OFFICE ROOM 10.97 X 7.24 79.42
1 MATERIAL EQUIPMENT ROOM 9.00 x 3.00 27
LOADING/UNLOADING AREA OF RAW
1 10.00 x 15.3 147
MATERIALS AND FINISHED GOODS
1 WASHROOM 2.00 X 3.00 6
TOTAL 622.18
TABLE 124: SUMMARY OF SPACE REQUIREMENTS
SUMMARY OF SPACE REQUIREMENTS

TOTAL SPACE USED 622.18
TOTAL SPACE 1100
TOTAL SPACE UNUSED 477.82
MANUFACTURING LOCATION COMPARISON
TABLE 125: COMPARISON OF THREE LOCATION FOR PRODUCTION
Biasong, Talisay Tingub, Mandaue Punta Princesa,

PARTICULARS City City Cebu City
MONTHLY RATE Php 148,135.00 Php 165,000.00 Php 240,000.00
RATE PER SQM Php 215 per sqm Php 150 per sqm Php 200 per sqm
WAREHOUSE FLOOR
689 sqm 1100 sqm 1200 sqm
AREA
DISTANCE TO CEBU
14.1 km 6.6 km 5.7 km
PORT
Visayan Electric Visayan Electric Visayan Electric
ELECTRIC PROVIDER
Company Company Company
ELECTRIC
Php 12.51/kWh Php 12.51/kWh Php 12.51/kWh
CONSUMPTION RATE
Metropolitan Cebu Metropolitan Cebu Metropolitan Cebu
WATER PROVIDER
Water District Water District Water District
WATER
Php 30.50/cu.m Php 30.50/cu.m Php 30.50/cu.m
CONSUMPTION RATE
LABOR MINIMUM
Php 404/day Php 404/day Php 404/day
WAGE RATE
QUALITATIVE AND QUANTITATIVE FACTORS CONSIDERED IN LOCATION
PLANNING
The Barangay Tingub, Mandaue City had the highest rating among the
three alternative locations for selecting a suitable plant location for the company,
based on both qualitative and quantitative factor ratings. The proponents chose a
site that met the criteria for accessibility, convenience, the image and history of the
site, and the cost of the project. The company decided to rent a warehouse since
it was a good fit for them as a start-up. Because it allows for greater room, renting
a warehouse might provide more flexibility for the organization as it grows. The
warehouse for rent has a total space of 1,100 square meters and a monthly fee of
Php. 165,000.00.
Qualitative Factors
 Accessibility - The facilities must be easily accessible. The raw materials
should be transported properly, and the product must be delivered quickly
and easily to the market. The availability of Energy, Fuel, and Water, as
well as the accessibility of public vehicles, should be addressed for the
benefit of the company's personnel.
 Security - Employee safety is vital; keeping workers safe improves
employee morale, and happy employees are more productive. Fewer
accidents result in lower occupational health expenditures, higher employee
retention and satisfaction, reduced employee downtime, and less retraining
time in safer workplaces. Location might raise your chances of being a

victim of crime, which can affect your insurance premiums as well as the
extra security measures you'll need to take to keep your business safe.
 Infrastructure - Any type of business can benefit from good infrastructure.
When it comes to picking a company location, power and water supply, as
well as good road connections, are just a few things to think about.
 Waste disposal - A company must be located in an area with waste
disposal facilities. Waste disposal has been a major concern in recent
years, particularly for firms that use chemical processes or are
environmentally conscious.
 Government Policies - Many policies and regulations are established by
governments to guide enterprises. To prevent penalties and costs, the
company must be aware of the policies in place at the chosen plant location
and ensure that it adheres to them.
Quantitative Factors
 Cost of Transport Facilities - The facility should be close to the market so
that delivering the products to the market is less expensive and time
consuming. If a company is located near its suppliers and consumers, it
could save cost.
 Plant Location Rate - The chosen site was assessed, and the cheapest
rent was chosen. Rather than building the business itself, the rental
expense of the location is advantageous to the firm.

 Plant Location Size - The size of the facility should be adequate for the
business, and the company's expansion potential should be taken into
account.
 Labor Rate - Human resource labor rates were taken into account. Labor
costs can be characterized as either fixed or variable.
 Energy, Fuel, and Water Consumption Rate - As it uses machinery and
equipment to make the product, lower energy, fuel, and water consumption
rates must be considered.
FACTOR RATING OF THE THREE LOCATIONS
TABLE 126: QUALITATIVE FACTOR RATING OF THREE LOCATIONS
CRITERIA ALTERNATIVES RESULTS

FACTORS Weight TALISAY MANDAUE CEBU TALISAY MANDAUE CEBU
CONSIDERED (%) CITY CITY CITY CITY CITY CITY
1. Convienent
Transportation 25% 8 8 9 2 2 2.25
Facilities
2. Availability of
25% 8 8 8 2 2 2
Utilities
3. Availability of
15% 7 7 7 1.05 1.05 1.05
Waste Disposal
4. Government
10% 5 6 8 0.5 0.6 0.8
Policies
5. Security 25% 6 10 5 1.5 2.5 1.25
TOTAL 7.05 8.15 7.35
TABLE 127: QUANTITATIVE FACTOR RATING OF THREE LOCATIONS
CRITERIA ALTERNATIVES RESULTS

FACTORS Weight TALISAY MANDAUE CEBU TALISAY MANDAUE CEBU
CONSIDERED (%) CITY CITY CITY CITY CITY CITY
1. Transportation
15% 8 5 7 1.2 0.75 1.05
Costs
2. Utilities
15% 7 7 7 1.05 1.05 1.05
Consumption Rate
3. Warehouse
20% 9 8 8 1.8 1.6 1.6
Location Size
4. Warehouse
20% 10 8 5 2 1.6 1
Location Rate
5. Labor Rate 5% 8 8 8 0.4 0.4 0.4
6. Distance from
10% 8 5 7 0.8 0.5 0.7
Supplier
7. Distance to City
20% 3 10 7 0.6 2 1.4
Areas
TOTAL 7.85 7.9 7.2
Tables xx and xx shows that the location with the highest rating which is
Brgy. Tingub, Mandaue City shall be chosen as the location where the business
manufactures Lucid Timber Mahogany Bark Liquid Wax.

FIGURE 44: MANUFACTURING WAREHOUSE MAP LOCATION

FIGURE 45: EXTERIOR IMAGE OF WAREHOUSE
FIGURE 46: INTERIOR IMAGE OF WAREHOUSE
Link: https://www.myproperty.ph/warehouse-for-rent-in-mandaue-ideal-for-
distribution.html
MANUFACTURING LAYOUT DESIGN AND PRINCIPLES
According from the website Citeman (2006), a layout would be appreciated
if one understand the influence of an efficient layout on the manufacturing aspect
of the business. An ideally laid out plant reduces manufacturing costs through
reduced materials handling, reduced personnel and equipment requirements. All
factors must be taken into consideration in order to come up with the layout that
best suited for the manufacturing company and find ways to improve from it as
arising situations come. The following factors that are considered by the
proponents in making a layout are the following:
Reduced Risks and Hazards and Promote Safety in the Workplace
It must be taken the consideration the health, safety, and welfare of the
employees from the lower levels to the upper-level personnel. Having adequate
spaces between offices, production area, inventory and storage of raw materials
are the point of emphasis in developing the layout. Having an isolated waste
disposal area is important since the product involves chemical and may cause
hazards in the workplace.
Improve Morale and Employee Satisfaction
Having a locker room area is important for the employee as they can safely
put their belongings their with protection from theft. A security guard is assigned to
ensure safety from burglars and emergencies. A canteen is also provided inside
the workplace for the convenience of the employees to not go outside and buy
their lunch. This is important also as it saves time and gives worker more time to
rest between breaks.
Ease of Supervision
The production area is located at the innermost part of the warehouse while
the office is located at the center while the outbound of finished goods products is
located at the outermost of the warehouse. This would help the middle and upper-
level management to oversee the current situation of the production.
Passageway of Foot Traffic and Vehicle Traffic
The inventory of raw materials and finished good products have an aisle
where forklift equipment can pass through. There is also a separate aisle where
employees can pass through to minimize contact with the direction of the forklift
and handling equipment for transporting raw materials and finished goods. The
measurement of foot traffic and vehicle traffic is followed by the standards of
Occupational Health and Safety Administration (OHSA).

FIGURE 47: FLOOR PLAN 2D LAYOUT
MANUFACTURING LAYOUT OF Lucid Pinnacle Manufacturing Company
54.80
10.97
3.00 3.00 6.87 11.25 7.28 3.55
LOCKER ROOM
6 sq m
4.00
4.00
MEETING
AREA
CANTEEN ROOM
Female Male WASHROOM
CR CR
30 sq m
7.24
OFFICE
ROOM
QUALITY
CONTROL
FINISHED GOODS ROOM
STORAGE
147 sq m
19.79
10.00
LOADING/ UNLOADING
AREA OF RAW
MATERIALS AND FORKLIFT 61 sq m
FINISHED GOODS
PASSAGE WAY
FORKLIFT
WASTE
RAW MATERIALS 72 sq m
2.00
DISPOSAL
5 sq m AREA INVENTORY AREA
4.39
4.49
MATERIALS AND
GUARD 41 sq m MAINTENANCE EQUIP MENT
2.70
POST ELECTRICAL AND REPAIR ROOM
2.45 ROOM ROOM

27 sq m
9.62 15.93 3.22 4.80 9.55
DRAWING SCALE: 1:200
UNITS USED: IN METERS

TABLE 48: LEGEND OF SYMBOLS IN 2D LAYOUT
LEGEND
PULVERIZER GRINDER MILL

MACHINE INK JET CODE PRINTER TWO-WAY DOOR
BOILING TANK
SEALING PACKAGING BOX ONE-WAY DOOR
MACHINE
CLEANING FILTER
HOUSING MACHINE
CONVEYOR BELT PIPE MAIN LINE

STORAGE COOLING TANK
ACCESS POINT PIPE LINE

STORAGE RACKS
CHEMICAL STORAGE TANK
WITH WHEELS
FLOAT OPERATED PIPE LINE

MIXER PAINT MACHINE
OPEN SPACE
16 sq m
FORKLIFT
PAINT FILLING MACHINE
SLIDING GLASS
FIGURE 49: ISOMETRIC VIEW OF Lucid Pinnacle Manufacturing Company LAYOUT
The figure above shows the isometric view of the manufacturing. It consists of the production area, storage area of
raw materials and finished good products, office room, canteen, locker room area, comfort room, electrical room, guard
post, quality control room, and material storage area.

FIGURE 50: ISOMETRIC VIEW CLOSE UP OF Lucid Pinnacle Manufacturing Company MACHINES LAYOUT
FIGURE 51: OFFICE LAYOUT

FIGURE 52: MEETING ROOM AREA

FIGURE 53: CANTEEN

FIGURE 54: LOCKER ROOM AREA
The figure above shows the locker room area for the employees of the company.
FIGURE 55: COMFORT ROOM

FIGURE 56: GUARD POST AREA

FIGURE 57: RAW MATERIALS AND FINISHED GOODS AREA
The figure above shows the one-point perspective view of the raw material and finish good product storage.
TABLE 128: PIPE AND VALVE SYSTEMS COST
PARTICULARS UNIT QUANTITY UNIT COST TOTAL COST

Stainless Pipe pieces 26 ₱ 7,568.51 ₱196,781.26
Coupling pieces 26 ₱ 157.00 ₱ 4,082.00
Elbow Pipe pieces 3 ₱ 118.00 ₱ 354.00
Foot Valve pieces 3 ₱ 400.00 ₱ 1,200.00
Float Valve pieces 2 ₱ 380.00 ₱ 760.00
TOTAL ₱203,177.26
TABLE 129: LEASEHOLD WAREHOUSE IMPROVEMENT
ITEM DESCRIPTION SCOPE LINE TOTAL

FLOOR AREA (SQ.M) 1100.00
1 Preliminaries 1 165,000.00
2 Architectural Works 715,000.00
Wall Works (incl. painting) 1 104,500.00
Ceiling (incl. painting) 1 132,000.00
Doors & Jambs 1 38,500.00
Windows and Glass Works 1 132,000.00
Milworks 1 143,000.00
Specialty Works 1 55,000.00
Tiles 1 110,000.00
3 Structural Works 44,000.00
Demolition 1 27,500.00
Formworks 1 16,500.00
4 Electrical Works 1 206,250.00
5 Plumbing Works 1 198,000.00
6 Mechanical Works 1 165,000.00
7 Auxilary Works 1 220,000.00
DIRECT TOTAL COST ₱ 1,713,250.00
8 Contingencies 10% 171,325.00

9 Overhead and Profit 20% 342,650.00
INDIRECT TOTAL COST ₱ 513,975.00
GRAND TOTAL COST ₱ 2,227,225.00
Reviewed by: Architect Criz E. Matunog

FIRE EMERGENCY EVACUATION PLAN
A FEEP, fire emergency evacuation plan, is a document that includes
information regarding fire safety. In this plan, there are outlined steps that detail
the actions that should be taken by employees and/or staff members if there is a
fire within the walls of the building. There is also information in this plan that
explains how calls to the fire brigade should be handled. Everyone in the company
is responsible for calling a fire brigade emergency incase of fire and everyone must
be prepared in evacuating right away to the exit. The potential source of fire may
be in the production area and electrical control room. The following equipment
such as fire hose and fire extinguisher are in inside the company and ready for
use.
MATERIAL HANDLING
Material Handling is much more than the handling of inventory and it
encompasses a range of components to keep the supply chain running. It’s the
movement, protection, storage, and control of materials throughout manufacturing,
warehousing, distribution, consumption, and disposal (Charlotte, 2018). The Lucid
Pinnacle Company utilizes some standard equipment: conveyors and pallet truck.
CONVEYOR
Lucid Pinnacle Manufacturing Company also utilizes conveyors as aids
in the production process. One conveyor is placed after the filling machine, and
the other one is located after the labeling Machine. These conveyors carry
subparts, substituting manual moving of the said subparts from one are to the other
and, in doing so, eases the process of production.
PALLET TRUCK
Lucid Pinnacle Manufacturing Company also utilizes two (2) pallet
trucks in handling the finished products. This equipment will be used in
transporting boxes of packed from the finished goods storage to the parking area.
FORKLIFT
Lucid Pinnacle Manufacturing Company also utilizes a powered
industrial truck used to lift and move materials over short distances, especially
goods that are stacked on wooden pallets.
QUALITY ASSURANCE TESTING
Quality Assurance ensures that an organization delivers the best products
or services possible. Quality Assurance aims to deliver consistent results through
a set of standardized procedures, which means that organizations also need to
make sure that their processes for achieving the desired results hit specific quality
benchmarks themselves.
FIGURE 58: QUALITY ASSURANCE PROCEDURE
PRODUCTION WORKER
GETS SAMPLE OF MIXED
MAHOGANY LIQUID
WAX
CHEMICAL ENGINEER &

QA OFFICER CHECKS THE
DILLUTION LEVEL OF
MIXTURE AND
RELIABILITY OF THE
PRODUCT
AFTER VALIDATION, THE

QUALITY DEPARTMENT
APPROVES AND
CONTINUES THE
PRODUCTION PROCESS
READY FILLING AND
PACKING PROCESS
MAINTENANCE REQUIREMENTS
According to Sivaranjith (2019), it can be defined as efforts taken to keep
the performance and condition of a machine always. These are divided into two
parts: (1) Preventive Maintenance, and (2) Corrective Maintenance. Preventive
maintenance prevents the occurrence of equipment failures. This is carried out on
a regular basis for monitoring of its performance and reliability. Corrective
maintenance is a set of technical tasks designed to repair equipment failures as
there is a need to fix or replace. This is used to correct errors and unforeseeable
breakdowns in a machine that needs to be repaired to restore its function.
TABLE 130: MAINTENANCE CHECKLIST OF MACHINERIES
PARTICULARS OILING GREASING CLEANING PAINTING REPAIRING

MACHINERIES
Pulverizer Grinder Mill
Machine
Boiling Tank Industrial
Stainless Steel Jacketed
Mixer Kettle Tank
Cleaning Filter Housing

Machine
Storage Cooling Tank
Chemical Storage Tank
With Wheels
Mixer Paint Machine
Paint Filling Machine
Ink Jet Code Printer
TABLE 131: MAINTENANCE CHECKLIST OF BUILDING

BUILDING AND FIXTURES
Doors and Sliding Doors
Comfort Rooms
Locker Area
Ceiling
Office Fixtures
Gate
TABLE 132: MAINTENANCE CHECKLIST OF SERVICE LINES

SERVICE LINES
SWITCH BOARD PANEL

WIRINGS
TABLE 133: MAINTENANCE CHECKLIST OF PRODUCTION EQUIPMENT

PRODUCTION EQUIPMENT
Conveyor Belt
Coating Adhesion Tester
Pallet Truck
Forklift
Industrial Rack
Pallet Rack Large
Industrial Weighing
Scale
TABLE 134: MAINTENANCE CHECKLIST OF VEHICLE

VEHICLE
Truck Van
UNIFORM DESIGN
Employees in regular positions wear a mahogany color polo shirt with burgundy
color in the collar portion with the company logo on the left chest, the company name
on left sleeve, and the wearer's position on the back. This shirt is worn with a pair of jeans.
The Lucid Pinnacle Manufacturing Company standard uniform is depicted in the
diagram below.
FIGURE 59: UNIFORM DESIGN

IDENTIFICATION CARD DESIGN
ID cards have become an important component of the corporate sector,
allowing companies to simplify employee and visitor identification while also
improving their integrity and security. The front area of the ID card of Lucid
Pinnacle Manufacturing contains the name of the employee, their picture, ID
number, and the date of when they started. In the back portion, it contains the
contact number, address, blood type, card validity and employee signature. 
FIGURE 60: IDENTIFICATION CARD DESIGN
CONTACT NO: 09123456789

ADDRESS: BEVERLY HILLS, LAHUG, CEBU CITY
BLOOD TYPE: A+
VALID UNT IL: 12/31/2023
SIGNATURE
This I.D is the property of Lucid Pinnacle Mfg.,

If found please return to us immediately.
ESCLAMADO, KURT ANGELO
PRODUCTION WORKER
EMP ID DATE ISSUED
000-999 10/01/2021
FRONT BACK
WAREHOUSE POLICIES
According to Kristina Lopienski, Warehousing is the process of holding
physical products in a designated warehouse or storage facility until they are sold
or disseminated further. It stores products in a safe and secure manner, keeping
track of where they are, when they arrived, how long they've been there, and the
quantity on hand. Warehousing is vital because it ensures the safety of
commodities and products. Rather than guessing, you may determine your reorder
point by studying your purchase and shipping information and lastly implementing
optimal processes.
LIST OF WAREHOUSE POLICIES
The warehouse is critical to the company's success. It determines the
business's productivity and profitability. Policies for warehousing are evaluated to
ensure that activities are ordered and efficient.
The following are the warehousing policies:
 Inbound of Raw Materials
 The person in-charge of the warehouse should finish and
countersign orders. He oversees inspecting and monitoring things to
ensure that they are complete, defect-free, and ready for inventory.
 Ordered Items Inspection
 It is the obligation of warehouse workers to monitor, check, and
inspect products before acknowledging that purchased orders.
 Inventory for Storage Items

 The method used in inventory for storage items of raw materials is to
place the newly ordered materials near the vicinity of the production
area for ease of transportation using forklifts. In transporting finished
good products, FIFO inventory method shall be observed by the
person in charge.
 Inspection and Monitoring of Items Availability
 Weekly physical counts of inventory items will be performed.
Documents proving that such raw materials have been released, on
the other hand, should be counted and reviewed daily.
 Raw Materials Re-Order
 Re-ordering raw materials will be done via email or phone contact to
the supplier after the item's availability has been determined to be
critical.
 Outbound Finished Goods
 The person in charge oversees that finished good products are ready
for shipment to different hardware stores.
INVENTORY CONTROL FOR MATERIALS AND MAINTENANCE SUPPLIES
The following are the inventory policies that must be properly followed and
implemented:
 In the stock room, only authorized staff are permitted to obtain and issue
the necessary materials.
 The requester should have a request slip signed by him as the requester
and approved by the administrator for any supplies he needs.

WASTE MANAGEMENT
Waste management refers collectively to the collection, transportation,
handling, and disposal process of dealing with removal of human waste. Waste
management, generally, covers all aspects of human waste including waste
reduction.
TABLE 135: WASTE MANAGEMENT PRACTICES
WASTE MANAGEMENT PRACTICES

ACTIONS PERSON/S
SCHEDULE
IMPLEMENTED RESPONSIBLE
Waste Segregation Everyone Everyday
Chemical Waste Maintenance and
Everyday
Disposal Staff
Proper Trash
Everyone Everyday
Disposal
5S Implementation Everyone Everyday
SAFETY EQUIPMENT AND SIGNS
Every business should have equipment and supplies on hand that can be
used in the worst-case situation. To increase awareness in the event of an
emergency, readable signage must be installed. The following is a list of the tools,
equipment, and medical supplies required in an emergency.
 Fire Extinguishers
In the event of a fire, fire extinguishers are required to put it out.
Seven (7) fire extinguishers will be installed by the company. It will be close
to the storage room, canteen, office, and security station for quick access
in the event of an emergency. For a visual representation, see the figure,
which depicts the establishment's fire evacuation and emergency plan.
 Safety Signs and Symbols
For guidance and signals, safety signs are critical communication
tools. It will assist workers in becoming aware of potential risks and knowing
what to do and where to go in the event of an emergency.
 Emergency Hotlines
Emergency hotlines will be posted in certain places by management
to promote awareness of who to call in an emergency.

TABLE 136: EMERGENCY HOTLINES
DEPARTMENT HOTLINE
MANDAUE CITY FIRE (032) 344 4747

STATION
MANDAUE CITY POLICE (032) 344 7752
STATION 3
MANDAUE CITY HOSPITAL (032) 345 97392
CEBU CITY MEDICAL (032) 512 4622

CENTER
SAFETY PRACTICES AND IMPORTANCE
Since it addresses the eudaimonia of employees, visitors, and consumers,
safety is crucial. Workplaces that fail to prioritize health and safety risk losing
assets, as well as income and profit.
Lucid Pinnacle Manufacturing Company is dedicated to creating a
healthy, free, and secure workplace for all employees. While on the job, every
employee must adhere to all safety and regulatory requirements. As a result, the
firm has established centralized environmental safety and health standards that
have been recorded to ensure that the workplace is always safe.
 Secure employees a safe environment.
 Give appropriate and necessary personal protective equipment to the
employees.
 Execute safe work rules and practices inside the workstation.

 Regularly inspect the workstations and machines.
 Change of equipment if there were defects detected.
 Inspecting and troubleshooting of machines.
 Issue safety orientation and training to the employees.
 Strictly follows safety rules and proper discipline.
SAFETY ORIENTATION OF EMPLOYEES
The Lucid Pinnacle Manufacturing Company will also provide a new
employee orientation wherein in this orientation the company gives them enough
basic safety training so that they can safely execute their assigned jobs and tasks.
All personnel are required to attend a seminar every half-year to review and refresh
their knowledge. In the last day of the seminar, employees will be given a certificate
where it stands as a proof for their participation in the training. And below stated
are some of the topics to be tackled in the Safety Orientation:
 The company’s Rules and Regulations
 The company’s safety program (Safety Inspection, Safety Audit)
 The Machine’s Manual
 Appropriate PPE Uniform.

SAFETY DISCIPLINE FORM
The Lucid Pinnacle Manufacturing Company will have a disciplinary
program to maintain the good performance of the employees. In ensuring its right
conduct the company will then have a penalty when employees are proven having
bad poor performance or bad conduct. This program includes what privileges may
an employee’s lose or how to reprimand them; through verbally or written.
TABLE 137: SAFETY DISCIPLINARY ACTION OFFENSES
OFFENSE DISCIPLINARY ACTION

1ST Verbal Warning
2ND Verbal and Written Warning

3RD 1-day suspension plus no bonus
4TH 1-week suspension with deductions of

salary
5TH Depends on the weight of violation that
may lead to termination
FIGURE 61: EMPLOYEE DISCIPLINARY ACTION FORM
INCIDENT REPORT
Incident Reporting Form
Use this form to report any workplace accident, injury, incident, close call or illness.
Return completed form to the Operations Supervisor, or Management.
This is documenting an:

___Lost Time/Injury ___First Aid ___Incident ___Close Call ___Observation
Details of person injured or involved (to be filled in by person injured / involved if possible)
Person Completing Report:_____________________ Date:____________________

Person(s) Involved:___________________________
Equipment or Truck ID:________________________
Event Details
Date of Event:_____________________ Location of Event:______________________
Time of Event:_____________________ Witnesses:___________________________
Description of Events (Describe tasks being performed and sequence of events):

_____________________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Was event / injury caused by an unsafe act (activity or movement) or an unsafe
condition (machinery or weather)? Please explain:
______________________________________________________________________
______________________________________________________________________
TO BE COMPLETED ONLY IF LOST TIME/INJURY OR FIRST AID WAS REQUIRED

Type of injury sustained:
Cause of lost time/ injury or

first aid:
Was medical treatment Yes_____ No_____
necessary? If yes, name of hospital or physician:
Signature of Employee: _____________________________ Date: ________________

Signature of Supervisor: _________________________ Date: _______________
OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT
Occupational Health and Safety (OHS) focuses primarily on protecting
employees in the workplace from accidents, injuries, and exposure to harmful
substances. While accidents can happen at any time, it is still the employer’s
responsibility to ensure that they take steps to reduce the risk of incidents and
maintain a safe working environment.
OCCUPATIONAL NOISE EXPOSURE OF MACHINES
The noise, often known as unwanted sound, is one of the most common
workplace dangers. According to National Institute for Occupational Safety and
Health (NIOSH) Exposure to high levels of noise may cause hearing loss, create
physical and psychological stress, reduce productivity, interfere with
communication, and contribute to accidents and injuries by making it difficult to
hear warning signals. The machine that creates great noise exposure is the
Pulverizing Grinder Mill Machine. According from the research of Kamble (2016),
grinder mills create at 79 dB(A) to 96 dB(A). With this kind of noise exposure and
the time allocated when the machine is operating in 1 hour every cycle, the
production workers need to wear earmuff protection in order to minimize exposure
points to noise levels.

CHEMICAL SAFETY PROCEDURE ON POLYURETHANE
Hazard Statements
 Causes serious eye irritation
 Causes skin irritation
 Highly flammable liquid and vapor
 May cause an allergic skin reaction
 May cause damage to organs through prolonged or repeated exposure
 May cause drowsiness or dizziness
 May cause respiratory irritation
 Suspected of causing cancer
 Suspected of damaging fertility or the unborn child
Precautions
 Obtain special instructions before use
 Do not handle until all safety precautions have been read and understood
 Keep away from heat/sparks/open flames/hot surfaces – No smoking
 Keep container tightly closed
 Keep cool
 Use explosion-proof electrical/ventilating/lighting/.../equipment
 Use only non-sparking tools
 Take precautionary measures against static discharge
 Do not breathe dust/fume/gas/mist/vapors/spray
 Wash ... thoroughly after handling

 Wear protective gloves/protective clothing/eye protection/face protection
 IF ON SKIN: Wash with plenty of soap and water.
 IF INHALED: Remove victim to fresh air and keep at rest in a position
comfortable for breathing
SAFETY EQUIPMENT
Safety Equipment, as implied by its name, includes the gadgets that are
used (worn, used, suspended etc.) for the protection of life and to avoid injuries or
casualties.
LIST OF ESTABLISHMENTS
Hardware stores are the place where people buy home and leasehold
improvements in their furniture to further enhance their aesthetic designs. Lucid
Pinnacle Manufacturing Company decides to distribute the manufactured
Lucid Timber Mahogany Liquid Wax to selected wholesale and retail hardware
stores from small to medium enterprises to large scale hardware stores.
These establishments will serve as the Lucid Pinnacle Manufacturing
Company’s distribution channels. The tables below on the following next pages
sows the wholesale and retail stores of Cebu City, Cebu Province, Mandaue City,
and Lapu-Lapu City.

TABLE 138: CEBU CITY ESTABLISHMENTS
Hardware Location
Cebu Oversea Hardware Company,

82 Plaridel St, Cebu City, 6000 Cebu
Incorporated
J. De Veyra St. North Reclamation

Hardware Centre Cebu, Inc.
Area, Cebu City, 6000 Cebu
Kaking Hardware 115 Plaridel St, Cebu City, 6000 Cebu
Belmont Hardware Depot Cebu Legaspi St, Cebu City, Cebu
Cebu Champion Hardware and Pres. Quirino St, Cebu City, 6000
Electrical Depot, Inc. Cebu
155 Natalio B. Bacalso Ave, Cebu

Citi Hardware
City, 6000 Cebu
240 Magallanes St, Cebu City, 6000

Cebu Bionic Builder Supply, Inc.
Cebu
B. Aranas, Cor Lakandula St, Cebu
Atlantic Hardware
City, Cebu
Ponce, 2420 A. Villalon Drive,
CEBU KAMAYO HARDWARE Inc.
Freedom St, Cebu City, 6000 Cebu
S. Osmena Blvd, Cebu City, 6000
Juasing Hardware, Inc
Cebu
TABLE 139: CEBU PROVINCES ESTABLISHMENTS
Hardware Location
Suarez Building, National Hi-Way,
Cebu Icon Hardware
Talisay, 6045 Cebu
Dumlog Home Depot Jose Rizal St, Talisay, 6045 Cebu
Poblacion III, Cebu S Rd, Carcar City,

World Wide Home Depot
Lalawigan ng Cebu
Citi Hardware Cebu S Rd, Carcar City, Cebu
Central Nautical Hwy, Cansaga,

Cebu Southwest Hardware & Consolacion,
Services, Co 6001 Cebu
Family Hardware & Construction

Bangkerohan, Consolacion, 6001 Cebu
Supply
Central Nautical Hwy, Poblacion,

New Lilo-an Hardware
Liloan, 6002 Cebu
Cebu - North Coastal Rd, Liloan, 6002

Toni Enterprises - Liloan Branch
Cebu
New Jet Hardware & Electrical

Pio del Pilar St, Danao City, Cebu
Supplies
Extension Cor, Citymall Danao, Olivar
ACE Hardware Citymall Danao Sr, F. Ralota St, Danao City, 6004
Cebu
TABLE 140: MANDAUE CITY ESTABLISHMENTS
Hardware Location
A. S. Fortuna St, Mandaue City, 6014
Cebu Home and Builders Centre
Cebu
Elizabeth Bldg., 70 Lopez Jaena St,
Mandaue Cebu Tradecenter, Inc.
Mandaue City, Cebu
Lopez Jaena St, Mandaue City, 6014
Cebu Atlantic
Cebu
1620 Hernan Cortes St, Mandaue City,
Boston Hardware Inc
6014 Cebu
840 A. S. Fortuna St, Mandaue City,
Cebuano Construction Supply, Inc.
6014 Cebu
Hernan Cortes St, Mandaue City, 6014
A.R.Colina's Enterprises
Cebu
B & A Hardware & Construction
Cebu N Rd, Mandaue City, 6014 Cebu
Supply
A. S. Fortuna St, Tipolo, Mandaue City,
APS Hardware Cebu
Cebu
H Abellana, Canduman, Mandaue City,
LR Sanchez Hardware 6000 Cebu
JVR Building, P.Sanchez /

Happy Home Hardware Inc.
Pagsabungan Rd, Mandaue City, Cebu
TABLE 141: LAPU-LAPU CITY ESTABLISHMENTS
Hardware Location
Menzi Compound, M.L. Quezon
Cebu Home and Builders Centre -
National Highway, Lapu-Lapu City,
Mactan
6015 Cebu
Mactan Solid Hardware & Lumber M.V Patalinghug Jr. Avenue, Lapu-
Inc. Lapu City, 6015 Cebu
G.Y. Dela Serna St, Lapu-Lapu City,

Alfonso Co Hardware
6015 Cebu
Zone 4, Buaya,
Lapu-Lapu City,
Liam's Hardware
6015 Cebu
Puso, Mactan Airport Road, Isuya,

Mactan Prime Hardware
Lapu-Lapu City, 6015 Cebu
SUPPLY CHAIN MANAGEMENT
Supply chain management is the management of the flow of goods and
services and includes all processes that transform raw materials into final
products. According to Dr. Robert Handfield, supply chain management is the
value active management of supply chain operations to optimize customer value
and achieve sustainable competitive advantage.

FIGURE 62: PRODUCT SUPPLY CHAIN
MANUFACTURING
PLANNING SUPPLIER DISTRIBUTOR CUSTOMERS
COMPANY
COST ALLOCATION
TABLE 142: MACHINERY ALLOCATION
PRICE
ITEM DESCRIPTION QTY. COST (PHP)
(PHP)
PULVERIZING
GRINDER MILL 340,293.00 1 340,293.00
MACHINE
BOILING TANK
INDUSTRIAL
STAINLESS STEEL 342,832.50 1 342,832.50
JACKETED MIXER
KETTLE TANK
CLEANING FILTER
HOUSING 198,081.00 1 198,081.00
MACHINE
STORAGE
18,360.00 1 18,360.00
COOLING TANK
CHEMICAL
STORAGE TANK 17,776.50 1 17,776.50
WITH WHEELS
MIXER PAINT
203,160.00 1 203,160.00
MACHINE
PAINT FILLING
101,580.00 1 101,580.00
MACHINE
INK JET CODE

99,040.50 1 99,040.50
PRINTER
TABLE 143: PRODUCTION EQUIPMENT ALLOCATION
PRICE
(PHP)
CONVEYOR BELT 20,316.00 3 60,948.00
COATING
ADHESION 101,580.00 1 101,580.00
TESTER
PALLET TRUCK 13,700.00 1 13,700.00

FORKLIFT 564,960.00 2 1,129,920.00
INDUSTRIAL
3,866.00 4 15,464.00
RACK
PALLET RACK
LARGE 13,494.00 4 53,976.00
INDUSTRIAL
4,500.00 1 4,500.00
WEIGHING SCALE
PACKAGING TAPE 35.00 100 3,500.00

TABLE 144: INDIRECT MATERIALS ALLOCATION
PRICE
(PHP)
WASHABLE
85.00 8 680.00
HAIRNET
INDUSTRIAL
549.00 4 2,196.00
BOOTS
CHEMICAL
RESISTANT 420.00 4 1,680.00
APRON
CHEMICAL
RESISTANT 390.00 8 3,120.00
GLOVES
CHEMICAL
RESPIRATOR
390.00 5 1,950.00
VAPOR GAS
MASK
EARMUFFS 414.00 6 2,484.00

EMPTY SACK
13.00 50 650.00
50KG
TABLE 145: SAFETY EQUIPMENT AND SIGNAGES ALLOCATION
PRICE
(PHP)
COMFORT ROOM
499.00 1 499.00
SIGNANGES
EMERGENCY
AND SAFETY 1 2,577.12

2,577.12
SIGNAGES
1ST AID KIT 740.00 2 1,480.00
FIRE
1,250.00 2 2,500.00
EXTINGUISHER
FIRE ALARM 2,039.00 1 2,039.00
SMOKE
3,207.00 1 3,207.00
DETECTOR
TABLE 146: UNIFORM AND ID ALLOCATION
PRICE
(PHP)
UNIFORM POLO-
450.00 20 9,000.00
SHIRT
CONTACT NO: 09123456789

ADDRESS: BEVERLY HILLS, LAHUG, CEB U CITY
BLOOD TY PE: A+
VALID UNTIL: 12/31/2023
SIGNATURE IDENTIFICATION
100.00 20 2,000.00
This I.D is the property of Lucid Pinnacle Mfg. ,
If f ound please retur n to us immediately.
ESCLAMADO, KURT ANGELO
PRODUCTION WORKER
EMP ID DATE I SSUED
CARD
000-999 10/01/2021
FRONT BACK
TABLE 147: SANITARY EQUIPMENT ALLOCATION
PRICE
(PHP)
HANDWASH
1,550.00 7 10,850.00
BASIN
TOILET BOWL 4,199.00 5 20,995.00
URINAL 3,800.00 3 11,400.00
SINK 2,990.00 7 20,930.00
FAUCET 952.00 7 6,664.00

TABLE 148: SANITARY MATERIALS ALLOCATION
PRICE
(PHP)
DUSTPAN AND
265.00 5 1,325.00
BROOM
TRASH BIN 2,248.00 4 8,992.00
TRASH BAG 2.50 200 500.00
MOP 1,900.00 2 3,800.00
HAND SOAP 155.00 20 3,100.00
ALCOHOL 249.00 20 4,980.00

DETERGENT
255.00 10 2,550.00
POWDER
DISINFECTANT
129.00 2 258.00
FOOT MAT
MURIATIC ACID 145.75 13 1,894.75
ALBATROSS 64.00 25 1,600.00

TABLE 149: OFFICE FURNITURE AND FIXTURE ALLOCATION
PRICE
(PHP)
OFFICE TABLE 1,490.00 24 35,760.00
PLASTIC TABLE 1,000.00 11 11,000.00
WOODEN TABLE 799.00 4 3,196.00
1,049.00
OFFICE CHAIR 30 31,470.00
CHAIR 400.00 38 15,200.00
PROJECTOR 6,399.00 1 6,399.00
PROJECTOR
4,300.00 1 4,300.00
SCREEN
WALL CLOCK 245.00 6 1,470.00
WATER
2,530.00 2 5,060.00
DISPENSER
EXHAUST FAN 1,077.00 1 1,077.00
COMPUTER SET 11,990.00 20 239,800.00
CCTV
1,978.38 8 15,827.40
INSTALLATION
BIOMETRIC
2,950.00 1 2,950.00
SCANNER
CALCULATOR 320.00 20 6,400.00
LOCKER 7,900.00 2 15,800.00
PRINTER 3,949.00 3 11,847.00
FLUORESCENT
100.00 25 2,500.00
LAMP
FILING CABINET 7,480.00 3 22,440.00

EMERGENCY
1,070.00 5 5,350.00
LIGHT
STANDING
INVERTER 23,500.00 3 70,500.00
AIRCON
INDUSTRIAL
2,300.00 4 9,200.00
WALL FAN
TABLE 150: OFFICE SUPPLIES ALLOCATION
PRICE
(PHP)
SHORT BOND
142.00 12 1,704.00
PAPER
LONG BOND
120.00 12 1,440.00
PAPER
VALIANT RECORD
90.00 4 360.00
BOOK 500 PAGES
PANDA BALLPEN 138.00 4 552.00
SCISSORS 45.00 2 90.00
STAPLER 80.00 12 960.00

STAPLE WIRES 6.00 48 288.00
PENCIL
60.00 1 60.00
MONGGOL NO.2
PAPER CLIPS 16.00 1 16.00
INK REFILL SET 395.00 3 1,185.00
ADHESIVE TAPE 12.00 2 24.00
MASKING TAPE 17.00 2 34.00
PUNCHER 128.00 2 256.00
HIGHLIGHTER 30.00 8 240.00
LONG FOLDER 5.00 20 100.00

SHORT FOLDER 3.00 20 60.00
RULER 10.00 5 50.00
PAPER FASTENER 40.00 2 80.00
SHARPENER 10.00 1 10.00
TABLE 151: DELIVERY TRUCK ALLOCATION
PRICE
(PHP)
MITSUBISHI
CANTER CLOSE 850,000.00 1 850,000.00
VAN 4M50
Link: https://www.carousell.ph/p/canter-close-van-4m50-for-sale-1112076536/?t-
id=TTICjXw8yj_1635234080800&t-referrer_request_id=Rqn5zdl9Y9YuLUwG
COST ALLOCATION SUMMARY
TABLE 152: OVERALL COST
TOTAL
TOTAL ANNUAL
PARTICULARS DEPRECIATION
COST
COST
Machines ₱ 1,305,123.50 ₱ 130,512.00
Production
₱ 1,383,588.00 ₱ 138,358.80
Equipment
Indirect Materials ₱ 12,760.00 ₱ -
Safety Equipment
₱ 12,302.12 ₱ 1,757.45
and Signages
Uniform & ID ₱ 11,000.00 ₱ -
Sanitary Equipment ₱ 70,839.00 ₱ 7,083.90
Sanitary Materials ₱ 28,999.75 ₱ -
Office Furniture &
₱ 517,506.40 ₱ 69,909.84
Fixture
Office Supplies ₱ 7,509.00 ₱ -
Delivery Truck ₱ 850,000.00 ₱ 121,428.57
Building
₱ 2,227,225.00 ₱ 148,481.00
Renovation
Pipe and Valve
₱ 203,177.26 ₱ 20,317.26
System
TOTAL ₱ 6,630,030.03 ₱ 637,848.82
The following particulars such as indirect materials, uniform and ID, office
supplies have no identified depreciation cost, and these items are consumable and
can be supplied again in the following year in case of shortage or damaged. The
calculation used in solving for the deprecation cost is the straight-line method.
UTILITIES
ELECTRICITY
Electricity is the flow of electrical power or charge. It is a secondary energy
source which means that we get it from the conversion of other sources of
energy, like coal, natural gas, oil, nuclear power and other natural sources, which
are called primary sources. The rate of kWh of Visayan Electric Company as of
October 2021 is at Php 12.51.

TABLE 153: ELECTRICITY CONSUMPTION ON MACHINES
KWH RATE
CONSUMPTION NO. OF DAILY MONTHLY YEARLY
MACHINE KW PER PER
(HRS) UNITS RATE RATE RATE
DAY KWH
0.25 1 7.50 1.875 ₱ 12.51 ₱ 23.46 ₱ 703.69 ₱ 8,444.25
Machine
Boiling Mixing Tank 1 1 0.75 0.75 ₱ 12.51 ₱ 9.38 ₱ 281.48 ₱ 3,377.70
0.37 1 0.50 0.19 ₱ 12.51 ₱ 2.31 ₱ 69.43 ₱ 833.17
Machine
Mixer Paint Machine 0.83 1 30.00 24.90 ₱ 12.51 ₱ 311.50 ₱ 9,344.97 ₱ 112,139.64
Paint Filling Machine 1.54 1 0.10 0.15 ₱ 12.51 ₱ 1.93 ₱ 57.80 ₱ 693.55
Ink Jet Code Printer 0.04 1 0.015 0.00 ₱ 12.51 ₱ 0.01 ₱ 0.23 ₱ 2.70
Conveyor Belt 2.00 3 0.75 1.50 ₱ 12.51 ₱ 56.30 ₱ 1,688.85 ₱ 20,266.20
Coating Adhesion Tester 0.17 1 0.10 0.02 ₱ 12.51 ₱ 0.21 ₱ 6.26 ₱ 75.06
Industrial Weighing Scale 0.08 1 0.025 0.00208 ₱ 12.51 ₱ 0.03 ₱ 0.78 ₱ 9.38
TOTAL 6.28 11 39.74 29.38 ₱ 12,153.47 ₱ 145,841.66
TABLE 154: ELECTRICITY CONSUMPTION ON OFFICE EQUIPMENT AND LIGHTINGS
KWH RATE
CONSUMPTION NO. OF DAILY MONTHLY YEARLY
MACHINE KW PER PER
(HRS) UNITS RATE RATE RATE
DAY KWH
Aircon 9 3 1.25 11.25 ₱ 12.51 ₱ 140.74 ₱ 4,222.13 ₱ 50,665.50
Computer PC 9 20 0.22 1.94 ₱ 12.51 ₱ 24.21 ₱ 726.21 ₱ 8,714.47
Printer 9 3 0.15 1.35 ₱ 12.51 ₱ 16.89 ₱ 506.66 ₱ 6,079.86
Fluorescent Lamp 12 25 0.05 0.60 ₱ 12.51 ₱ 7.51 ₱ 225.18 ₱ 2,702.16
Biometric Scanner 4 1 0.04 0.16 ₱ 12.51 ₱ 2.00 ₱ 60.05 ₱ 720.58
Water Dispenser 9 2 0.50 4.50 ₱ 12.51 ₱ 56.30 ₱ 1,688.85 ₱ 20,266.20
Industrial Wall Fan 9 4 0.12 1.08 ₱ 12.51 ₱ 54.04 ₱ 1,621.30 ₱ 19,455.55
CCTV 24 8 0.01 0.24 ₱ 12.51 ₱ 3.00 ₱ 90.07 ₱ 1,080.86
Smoke Detector 12 1 0.40 4.80 ₱ 12.51 ₱ 60.05 ₱ 1,801.44 ₱ 21,617.28
Projector 2 1 0.09 0.18 ₱ 12.51 ₱ 2.25 ₱ 67.55 ₱ 810.65
TOTAL 99 68 2.83 26.10 ₱ 11,009.43 ₱ 132,113.11
WATER
Water is a substance composed of the chemical elements’ hydrogen and
oxygen and existing in gaseous, liquid, and solid states. It is one of the most
plentiful and essential of compounds. A tasteless and odorless liquid at room
temperature, it has the important ability to dissolve many other substances. The
rate per cubic meter of Metropolitan Cebu Water District using a water line of 4
inch is estimated at Php 30.50
TABLE 155: WATER CONSUMPTION
AREAS EST. RATE

THAT CONSU PER DAILY MONTHLY YEARLY
USES MPTION CU. RATE RATE RATE
WATER (HRS) METER
Comfort
1 30.50 30.50 ₱ 915.00 ₱ 10,980.00
Room
Faucet 1.5 30.50 45.75 ₱ 1,372.50 ₱ 16,470.00

Canteen 1.25 30.50 38.13 ₱ 1,143.75 ₱ 13,725.00
Washing
0.5 30.50 15.25 ₱ 457.50 ₱ 5,490.00
Area
TOTAL ₱ 3,888.75 ₱ 46,665.00

INTERNET
a vast network that connects computers all over the world. Through the
Internet, people can share information and communicate from anywhere with an
Internet connection.
TABLE 156: INTERNET CONSUMPTION
INTERNET CONSUMPTION
NETWORK PLDT
MBPS 100
MONTHLY 2699
YEARLY 32,388
TRANSPORTATION EXPENSE
Transportation expenses are a subset of travel expenses that refer
specifically to the cost of business transportation by car, plane, train, etc. Expenses
such as fuel, parking fees, lodging, meals, and telephone charges incurred by
employees can be claimed as transportation expenses. Price of diesel used for
truck van as of October 18, 2021 is Php 44.80. The following calculations of
transportation expenses are shown below the table.

TABLE 157: TRANSPORTATION EXPENSE
PRICE
PARTICULARS PURPOSE DISTANCE IN KM CONSUMPTION PER KM NO. OF TRAVELS OF COST
DIESEL
Mandaue to
Aloguinsan Vice SUPPLIER 127.80 0.11 10 ₱ 44.80 ₱ 6,297.98
Versa
Mandaue to Cebu
DISTRIBUTION 9.60 0.11 120 ₱ 44.80 ₱ 5,677.06
City
Mandaue to Lapu-
DISTRIBUTION 6.80 0.11 120 ₱ 44.80 ₱ 4,021.25
Lapu City
Mandaue to Cebu
DISTRIBUTION 58.50 0.11 120 ₱ 44.80 ₱ 34,594.56
Provinces
Mandaue to Cebu
Port Area Vice SUPPLIER 12.60 0.11 40 ₱ 44.80 ₱ 2,483.71
Versa
Promodizer MARKETING
Transportation AND N/A N/A N/A N/A ₱ 9,360.00
Allowance PROMOTION
TOTAL ₱ 62,434.56
𝐶𝑜𝑠𝑡 = 𝐷𝑖𝑠𝑡𝑎𝑛𝑐𝑒 𝑥 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 𝑥 𝑁𝑜. 𝑜𝑓 𝑡𝑟𝑎𝑣𝑒𝑙𝑠 𝑥 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝐷𝑖𝑒𝑠𝑒𝑙

RENT EXPENSE
TABLE 158: RENTAL EXPENSE
RENTAL EXPENSE
RATE PER SQM. Php 150.00
MONTHLY RATE Php 165,000.00
ANNUAL RENT
Php 1,980,000.00
EXPENSE
MANPOWER REQUIREMENTS
Manpower planning is the process of estimating the optimum number of
people required for completing a project, task, or a goal within time. Manpower
planning includes parameters like number of personnel, different types of skills,
time, demand and supply trends, organizational strategy etc. It is a never-ending
continuous process to make sure that the business has the optimized resources
available when required taking into consideration the upcoming future projects and
also the replacement of the outgoing employees.

TABLE 159: CALCULATION OF MANPOWER REQUIREMENTS DIRECT
LABOR
SUMMARY
DEMAND PER DAY 740
STANDARD TIME PER
1.54
PRODUCT (IN MINS)
WORKING TIME PER
EMPLOYEE PER SHIFT 480
(IN MINS)
NO. OF SHIFTS PER DAY 1
EFFICIENCY (% ) 74%
DIRECT LABOR
4
NEEDED
𝐷𝑒𝑚𝑎𝑛𝑑 𝑝𝑒𝑟 𝑑𝑎𝑦

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑝𝑒𝑟 𝑠ℎ𝑖𝑓𝑡 =
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 (𝑖𝑛 𝑚𝑖𝑛𝑠)
TABLE 160: MANPOWER REQUIREMENTS DIRECT LABOR
SUMMARY
DIRECT LABOR 4
TABLE 161: MANPOWER REQUIREMENTS INDIRECT LABOR
POSITION MANPOWER REQUIRED

TOP MANAGEMENT
General Manager 1
Chief Financial Officer 1
Admin Head 1
MIDDLE MANAGEMNT
Production Supervisor 1
Chemical Engineer 1
Quality Assurance Officer 1
Sales and Marketing
1
Specialist
Accountant 1
Inventory Clerk 1
Safety Officer 1
Maintenance Head 1
Human Resource Staff 1
LOWER MANAGEMENT
Utility Personnel 2
Promodizer 1
Security Guard 2
Driver 2
Total 19
The table above shows the number of employees in its allocated position
in the company. Lucid Pinnacle Manufacturing Company will have a total of
twenty-two employees including the direct labor.

LIST OF SUPPLIERS
TABLE 162: SUPPLIERS OF THE MACHINERIES
PARTICULARS SUPPLIER
Shanghai Aligned Machinery Mfg. &
Pulverizing Grinder Mill Machine
Trade Co., Ltd.
Boiling Tank Industrial Stainless Wenzhoy Qiangzhong Machinery
Jacketed Mixer Kettle Tank Technology Co., Ltd.
Storage Cooling Tank Cebu Home and Builders Centre
Chemical Storage Tank With Laizhou Taihe Chemical Machinery
Wheels Co., Ltd.
Wenzhoy Qiangzhong Machinery
Mixer Paint Machine
Technology Co., Ltd.
Zhengzhou Hongle Machinery
Paint Filling Machine
Equipment Co., Ltd.
Zhengzhou Hongle Machinery
Ink Jet Code Printer
Equipment Co., Ltd.
Conveyor Belt Hunan Langle Technology Co., Ltd.
Dongguan Lonroy Equipment Co.,
Coating Adhesion Tester
Ltd.
TABLE 163: SUPPLIERS OF OFFICE EQUIPMENT, SUPPLIES, AND
UTILITIES
PARTICULARS SUPPLIER
Production Equipment Carousell PH
Indirect Materials Ace Hardware
Cleaning Supplies Ace Hardware
Office Supplies Visayan Educational Corporation
Office Furniture & Fixtures Sun Gold
Delivery Equipment Carousell PH
Electricity Visayan Electric Company
Water Metropolitan Cebu Water District
Internet PLDT
Gasoline Local Gasoline Stations
The table above shows the suppliers’ list of all machineries and other
particulars that are essential to the company.

MANAGEMENT ASPECT 246
SCOPE OF MANAGEMENT ASPECT
 Introduction
 Profile of the Proponents
 Title of the Project
 Company Name
 Company Logo
 Mission-Vision
 Core Values
 Form of Business Ownership
 List of Investors
 Organizational Structure
 Organizational Chart Analysis
 Job Description and Specification
 General Requirements for Jobs
 Training and Development Program
 Personnel Plantilla
 Basis for Increase Salaries and Wages
 Inflation Rate in the Philippines
 Performance Appraisal
 Employee Benefits and Privileges
 Holiday Pay Contribution

 13th Month Pay Contribution
 SSS Contribution
 Pag-ibig Contribution
 Phil-Health Contribution
 Employee Assistance Program
 Disciplinary Action
 Code of Conduct
 Violation and Remedial Action
 Company Guidelines
 Breaktime Schedule
 Weekly Time Schedule of Workers
 Gantt Chart
 Intellectual Property Right
 List of Essential Permits and Licenses
 Manpower and Security Agency

INTRODUCTION
Management is the process of administering and controlling an
organization's operations, regardless of its nature, kind, structure, or scale. It is the
act of establishing and sustaining a business environment in which the
organization's members may collaborate and achieve company goals efficiently
and effectively. Management promotes in the effective and efficient achievement
of organizational goals by planning, organizing, staffing, directing, and regulating
organizational resources.
To put it another way, management entails establishing a vision, developing
a strategy, and implementing that strategy. The company's vision, mission, and
goals it is critical in order for the business to succeed. Having a clear idea of what
they want to achieve could also be beneficial. As a criterion for success excellent
leadership is needed for effective management. Administrative strategies are
planned, communicated, and carried out.
The type of company organization, as well as organizational structure, and
personnel required are discussed in this chapter. The company policy, code of
ethics, and job description and qualification are all included in this category. It will
also address the company's logo and name, as well as the vision-mission
statement and organizational structure.

EXECUTIVE SUMMARY
 The Lucid Pinnacle Manufacturing Company is the name of the
proposed business.
 General Partnership is the form of business ownership where the partners
invest and gain equally distributed profit based on the amount of capital that
the partner invested in.
 The Lucid Pinnacle Manufacturing Company has its mission vision as
a guide to every employee in the company.
 The Lucid Pinnacle Manufacturing Company hires a total of 23 regular
employees.
 The Lucid Pinnacle Manufacturing Company has only one shift with its
operating hours starts at 8:00 AM to 5:00 Pm with one (1) hour lunch break
for every employee.
 The company has benefits and privileges for its employee namely the 13th
month pay, SSS, Phil-Health, Pag-ibig, Sick Leave, Maternity Leave,
Paternity Leave, Vacation, Holiday Pay.

MAJOR ASSUMPTIONS
 The Lucid Pinnacle Manufacturing Company has an investment of Php
15,000,000.00.
 The employees’ salary is based on their performance and its estimated
inflation rate of 3.7% in 2022, 3.3% in 2023, 3.5% in 2024, 3.8% in 2025,
and 3.6%in 2026. The following inflation rate are calculated using moving
average forecast.
 The working days of Lucid Pinnacle Manufacturing Company are from
Monday to Sunday with having its employee rotational day-offs every week.
 All employees have an estimated 312 working days in a year.
 There will be no increase in the number of employees for the next five (5)
years.
 The company would start its operation in October 2022.

PROFILE OF THE PROPONENTS
The proponents of the project are consisting of the following:
TABLE 164: PROFILE OF THE PROPONENTS
PROPONENTS
Matunog, Cristofer Nino C.
Mercado, Jeffsymel
Camilotes, Zaira
Embalzado, Christine
The proponents faced many hindrances and questions before being able to
start the study. The proponents then develop the proposal to produce Lucid
Timber Mahogany Liquid Wax made of Mahogany Bark to give a new variety
of paint for materials made from wood bark.
TITLE OF THE PROJECT
The proposed project is entitled "A Project Feasibility Study if a Proposed
Production of Mahogany Bark Liquid Wax as an Alternative for Color Enhancement
of Wooden Furniture and Floorings in Tingub, Mandaue City" The manufacturing
firm's proposed identity shall be Lucid Pinnacle Manufacturing Company, which
produces its first product with the brand name Lucid Timber Mahogany Liquid
Wax, which aims to provide a luminous wood color, out of Mahogany Bark.
The proponents come up with this project proposal since they know that
every household with wooden furniture wants to achieve the natural color, and they
want to give a new variety of paint that gives satisfaction to the consumer.
COMPANY NAME
According to Richard Harroch from the Forbes article "12 Tips for Naming
Your Startup Business", finding the right name for your startup can have a
significant impact on your success. The wrong name can do worse than failing to
connect with customers; it can also result in insurmountable business and legal
hurdles. In contrast, a clear, powerful name can be extremely helpful in your
marketing and branding efforts.
The name of a company has a huge impact on its growth and perception,
and it may make or break a company. It's incredible how important a name can be.
It has a huge impact on a company's growth and perception, and it may completely
make or fail it.
The company name is Lucid Pinnacle Manufacturing Company, Lucid
means bright or luminous while pinnacle means the most successful point, indeed.
Lucid Pinnacle is a manufacturing company that manufactures the Lucid Timber
Mahogany Liquid Wax and aims for the product to be on top while providing
luminous wood color.

COMPANY LOGO
FIGURE 63: Lucid Pinnacle Manufacturing Company LOGO
A company logo is a combination of text and image that tells the target
market the name of the business. It creates a visual representation on what the
business is selling, and it has its own distinct identity apart from other businesses.
It must be a design that consumers would remember its product and reputation.
The rectangle shape in the logo represents stability, equality, and
interconnectedness among other rectangles. The color gray on the background of
each rectangle represents neutrality, balance, and compromise. Lucid Pinnacle
Manufacturing Company aims to promote stability among all employees at the

same time being interconnected to one another to have a united goal. Having an
identity of being gray means to accept the good and the bad challenges that the
company may face and to compromise whatever each one lacks. Overall, the
symbol illustrates that the Lucid Pinnacle Manufacturing Company aims to be
at the pinnacle of their goals while maintaining balance among people.
COMPANY MISSION
Lucid Pinnacle Manufacturing Company’s mission is to utilize the
beauty of the mahogany bark into enhancing it to different wooden furniture and
floorings. We aim to make as much as possible as a wood liquid wax producer.
Furthermore, to promote environmental awareness by producing mahogany bark
liquid wax to consumers that want to enhance their wooden furniture and floorings.
To do our company mission, we must commit ourselves to the following:
 Utilizing the mahogany bark to make it useful in the current market.
 By providing quality product in enhancing color of wooden furniture and
floorings with innovation, creativity, and imagination.
 Offering unique design experience for color enhancement of wooden
furniture and floorings.

COMPANY VISION
Lucid Pinnacle Manufacturing Company’s vision is to be the leading
wood color enhancing company in the Philippines by providing good quality and
affordable price while aiming for highest development over the years.
CORE VALUES
Lucid Pinnacle Manufacturing Company’s ideals are solidly in place,
allowing us to realize our vision.
 Uniqueness. Being the producer of a product that utilizes uniqueness in
producing a product.
 Transcendence. Achieving next level mentality to further improve our wood
coloring enhancement product.
 Quality. Delivering the right quality of product to the customer that satisfies
their needs and exceeding their expectations.
 Adaptability. Being able to adapt to changes in market behavior by utilizing
communication mediums on what does the customer needs.

FORM OF BUSINESS OWNERSHIP
Businesses differ not simply in size and sector, but also in who owns them.
Some are owned by a single individual or a small group of people, while others are
owned by many stockholders, charity foundations or trusts, or even the state.
Different ownership arrangements overlap with the many legal forms that a
company might adopt Open Learn (2020). The decision must be taken seriously in
deciding its legal structure. The chosen type should fit the needs of the business
and the owner/s. There are four (4) forms of business ownership: sole
proprietorship, partnership, corporation, and cooperative.
Lucid Pinnacle Manufacturing Company chose General Partnership as
its ideal legal form of business ownership. It is an appointment by two (2) or more
persons comply with the share of capital, assets, profits, financial and legal
liabilities within the business. Profits are shared equally among the partners based
on the amount of capital they invested in.
The following information below includes the Lucid Pinnacle
Manufacturing Company’s partnership agreement:
1. The name of the partnership business shall be Lucid Pinnacle
Manufacturing Company.
2. The business purpose is to produce Lucid Timber Mahogany Liquid
Wax in order to achieve business sustainability and to penetrate the market
for wood color enhancement and coatings.

3. The principal place of business where manufacturing operations is located
shall be in Tingub, Mandaue City, Cebu.
4. The partnership shall begin on and continue until dissolved by mutual
agreement of the partners.
5. The partners shall have a complete profile that includes the full name,
nationality, and complete residence addresses.
6. The partners shall indicate each of the capital contributions in Philippine
Currency (PHP), contributed in cash.
Other information would be included in the partnership agreement in the
Appendix C Section.
LIST OF INVESTORS
The table below shows the investors’ list with its corresponding amount of
investment in the Lucid Pinnacle Manufacturing Company.
TABLE 165: LIST OF INVESTORS
INVESTOR INVESTMENT
Matunog, Cristofer Nino C. ₱ 2,000,000.00
Mercado, Jeffsymel ₱ 2,000,000.00
Rodrigo, John Christian ₱ 2,000,000.00
Camilotes, Zaira ₱ 2,000,000.00
Embalzado, Christine ₱ 2,000,000.00
Bernal, Milagros P. ₱ 5,000,000.00
TOTAL ₱ 15,000,000.00
Investors are essential in any business as it serves the bloodline as they
allow to sustain and expand its current operations. The Lucid Pinnacle
Manufacturing Company will have its source of capital from its investors in the
form of partnership. The Lucid Pinnacle Manufacturing Company has an initial
investment of Php 15,000,000 from its investors. The total investment will be
allocated in purchasing raw materials, machineries, production equipment, pre-
operating activities, and other miscellaneous expenses that are necessary for the
business to start its operations.

ORGANIZATIONAL CHART
According to Chen (2021), an organizational chart is the internal structure
of a business that is visually conveyed by outlining the roles, duties, and
relationships between personnel inside an entity.
Lucid Pinnacle Manufacturing Company’s upper-level personnel is the
“General Manager” as he/she is responsible for the operation of the company. It
would be convenient for the laborers to approach the right person if trouble arises.
All the employees need to work together and achieve the company’s long-term
goals to achieve business sustainability. The employees’ wages will also depend
on their position based on the median salary of the labor market and the number
of hours they have rendered to the company.

FIGURE 64: ORGANIZATIONAL STRUCTURE
Lucid Pinnacle Manufacturing

Company
General Manager
Chief Financial Officer Operations Manager
Sales and
Human Chemical Maintenance
Inventory Clerk Marketing Accountant
Resource Staff Engineer Head
Specialist
Production Quality
Utility
Promodizer Supervisor Assurance
Personnel
Officer
Safety Officer Security Guard
Production
Driver
Worker
RECRUITMENT AND SELECTION PROGRAM
Lucid Pinnacle Manufacturing Company should be meticulous and when
recruiting and selecting candidates that meet the standards established and
indicated in the Job Specifications.
FIGURE 65: RECRUITMENT AND SELECTION PROCESS
Determine the need

Recruitment Process Job Interview Assessment
for vacancy
Orientation and
Deployment Employment Selection Process
Training
Recruitment and Selection Process
Step 1: Determine the need for the vacancy of position. The management must
identify the open positions and analyze them in accordance with the right planning.
They must define the requirements they had for an applicant.
Step 2: Recruitment Process. Finding and employing people with potential and
abilities is what recruitment is all about. Recruitment is the process of identifying
and attracting qualified candidates to fill open jobs in a firm. It identifies applicants
who possess the skills and attitudes necessary to help a business achieve its
goals.
Step 3: Job Interview. A job interview is a one-on-one interview in which the
applicant is interviewed by a representative of the company. It will be used to

determine whether or not the applicant is approved based on the established
criteria.
Step 4: Evaluation. Formally or informally, objectively or subjectively, applicants
were reviewed and appraised. To hire the best candidate, each applicant must be
reviewed.
Step 5: Selection process. It entails identifying and selecting the best candidate
for the job. The management will choose from among the applicants who they
believe are the best match for the job.
Step 6: Employment. After picking the best candidate, he or she can now join the
company. He or she can begin performing tasks or duties in accordance with the
organization's goal, vision, and mission.
Step 7: Orientation/Training. The newly hired staff receive orientation or training
from the management. The management also provides training on the company's
regulations, procedures, and information, as well as any other vital issues, such
as:
 New-employee orientation
 Emergency action plan and fire prevention
 Workplace and security for employees
 Time management for employees
 Coaching for superior employee performance
 Work Schedule
 Tasks and their job description
 Organizational Structure
Step 8: Deployment. Deployment is the final phase in the recruiting and selection
process. It's a means of systematically introducing a new activity, method,
program, or system to all relevant sectors of a company.
Step 9: Training and Development. Its goal is to enhance employees' skills and
motivate them to do their assigned tasks in order to achieve the organization's
objectives. It also helps employees develop their talents by strengthening their
knowledge. Training and development will benefit the company's personnel while
also empowering the company to achieve its objectives. Workers are entrusted
with the company's brand and dignity in order to aid in commercial success.
JOB DESCRIPTION
The job description is a document that outlines a specific firm position's
general job responsibilities, requirements, tasks, associated obligations, or
functions. It will identify the duties, which will include the persons to whom the
position reports, other details such as job credentials or abilities required, and a
salary range. It helps determine the amount of success of a business role, which
is critical in performance evaluation.

Also, these job descriptions are crucial in reflecting the company's efforts to
comply with regulatory requirements to establish regulations and policies that
would protect employees and the company's interests.
JOB SPECIFICATION
Job specifications, also known as job qualifications, include all the factors
that make someone a viable candidate for a specific job position. It is a very critical
factor in the company's welfare. It's not easy to figure out who among the
applicants is the best fit for the job that will contribute toward the company's
success. It can relate to a variety of things, including educational achievements,
work experiences, professional talents, and so on. These things are commonly set
and controlled by the Human Resource officer.
GENERAL REQUIREMENTS FOR JOB
 Application Letter
 Resume
 PAG-IBIG Form
 PhilHealth Form
 NBI
 Police Clearance
 Medical Certificate
 City Health Permi
 MB-1 Form/PB-1 Form

JOB DESCRIPTION AND SPECIFICATIONS FOR DIFFERENT POSITIONS IN
THE COMPANY
POSITION: GENERAL MANAGER
JOB DESCRIPTION
• Formulate and maintain policies concerning employee behavior and discipline,
the use of corporate property, accounting, and money management.
• Knows how to lead and motivate a team.
• Examine revenue, costs, sales or service volume, and other statistical data to
assess the department or division's success.
• Resolve conflicts among employees inside the management.
• Plan and allocate the use of equipment, materials, other assets, and
human resources.
• Department, division, site heads, supervisors, and other personnel can be hired,
fired, or reassigned.
• Must set employees' work hours and shifts.
• Knows how to oversee the recruitment and training of staff.
OTHERS:
• If one of the Marketing Specialists, Accountants, or Production Supervisors is
missing or on vacation, can take over their responsibilities.

JOB SPECIFICATION:
EDUCATION/EXPERIENCE
✓ Must have three (3) years of experience in business management or
administrative positions.
✓ Candidate must possess a bachelor’s College Degree, or Post
Graduate Diploma/Manager's Degree, or Doctorate (Ph.D.) in
Business Administration, or Industrial Engineer.
✓ Firm background in project management. Account management, or customer
service is highly required.
TYPE OF SKILLS AND PERSONAL ATTRIBUTE:
✓ Provide leadership and strategic direction for the development of
production.
✓ Has the ability to motivate and lead the team.
✓ Knows how to plan, Budget, Sales, and Marketing.
✓ Provide leadership and strategic design for the development of the
production.
✓ Must have the ability to work under pressure and handle difficult
situations.
✓ Must have a strong commitment to the job.
POSITION: CHIEF FINANCIAL OFFICER
• Responsible for budget planning and assisting the executive management team
in making the best business decisions for the company by providing insights and
financial recommendations.
• Developing strategies that work to minimize financial risk
• Ensure the smooth running of the accounts payable and receivable functions.
• Reporting to management and stakeholders and providing advice on how the
company and future business decisions might be impacted
• The Head of Finance will report to the General Manager and ensure that the
finance strategy is effective.
OTHERS:
• It can take over the General Manager's place when they are not on
duty or a day off.
JOB SPECIFICATION:
✓ Hands-on experience with spreadsheets and propriety software
✓ Bachelor's degree in Accounting or Financial Management.

✓ Must have outstanding organizational and leadership skills.
✓ Proven expertise in accounting.
✓ Good communication skills – both written and verbal
✓ Have a high degree of precision and attention to detail.
✓ Computer Literate and skillful in Microsoft Office.
POSITION: OPERATIONS MANAGER
JOB DESCRIPTION:
• Recruit and train personnel and allocate responsibilities and office space.
• Ensure the smooth and adequate flow of information within the company to
facilitate other business operations.
• Supervise daily support operations of the company and plan the most efficient
administrative procedures.
• Keep abreast with all organizational changes and business developments.
• Manage schedules and deadlines.
• Monitor inventory of office supplies and the purchasing of new material with
attention to budgetary constraints.

• Ensuring the office is stocked with necessary supplies and all equipment is
working and properly maintained.
• Developing, reviewing, and improving administrative systems, policies, and
procedures.
OTHERS:
 It can take over the General Manager's place when they are not on duty or
a day off.
JOB SPECIFICATION:
✓ Experience in a related field, such as management or financial reporting,
preferred.
✓ Exceptional leadership and time, task, and resource management skills.
✓ Bachelor’s degree in business administration, management, or related field.
✓ Familiarity with budget planning and enforcement, human resources, and
customer service procedures.
✓ Willingness to continue building skills through educational opportunities.
✓ Proven experience as Admin Head.
✓ Well-versed in departmental procedures and policies and will discover new
ways to do the job more efficiently actively.

✓ A team player with leadership skills.
✓ Excellent communication and organizational skills.
✓ Strong problem solving, critical thinking, coaching, interpersonal, and verbal and
written communication skills.
✓ Ability to plan for and keep track of multiple projects and deadlines.
POSITION: HUMAN RESOURCE STAFF
JOB DESCRIPTION:
• Enhances the organization's human assets by planning, implementing, and
evaluating employee relations and human resources policies, strategies,
programs, and practices.
• Oversee human resource staff by recruiting, selecting, orienting, and training
employees.
• Supports organization staff by developing recruitment, evaluation program;
counseling managers on candidate selection; conducting and analyzing exit
interviews; and recommending changes.
JOB SPECIFICATION:
✓ Must have a degree in Human Resources or a related field.
✓ Must be fast in computer typing skills (MS Office, in particular).

✓ Must have proven experience as an HR assistant, staff assistant, or relevant
human resources/administrative position.
POSITION: ACCOUNTANT
JOB DESCRIPTION:
• Responsible for maintaining subsidiary accounts by verifying, allocating, and
posting transactions
• Responsible for recording day to day financial transaction and completing the
positioning process.
• Provides administrative and clerical support to management as requested.
• Processing accounts receivable/payable and handle payroll on time.
• Arranges payment of accounts.
• Carrying out bank reconciliations.
• Prepares financial report by collecting, analyzing, and summarizing account
information and trends
• Prepare and forward invoices and receipts to debtors.
OTHERS:
• It can take the place of the Inventory Clerk when they are not on duty or vacation.
JOB SPECIFICATION:
✓ Ability to calculate, post, and manage accounting figures and financial records.
✓ Data entry capabilities along with a knack for numbers
✓ Bachelor's degree in Accounting or Financial Management.
✓ Proven expertise in accounting.
✓ Precise knowledge of the fundamental of accounting and accounting concepts
of payable/receivable.
✓ Proficiency in English
✓ Computer Literate and skillful in Microsoft Office
✓ Have a high degree of precision and attention to detail.
POSITION: PRODUCTION SUPERVISOR
JOB DESCRIPTION:
• Provides quality service in producing the product by quality and customer
service standards
• Maintains safety and healthy work environment
• Responsible for monitoring staffs by recruiting, selecting, orienting,
and training employees
• Organizing workflows and ensuring that employees understand their
responsibilities.
• Able to communicate with others effectively both oral and written
• Knows how to balance everything, especially in setting goals for performance
and deadlines in a way that comply with the company's plans and vision.
• Improving or designing new work methods and processes.
• Passing on information from top management to employees
• Responsible for monitoring employee productivity and provide constructive
feedback and coaching.
OTHERS:
• It can take the position of a quality control inspector when they are not on duty
or vacation.
JOB SPECIFICATION:
✓ Graduate in Industrial Engineering or any related field.
✓ Must have an example knowledge on management, and primarily related to
Operations.
✓ Oral and written skills must be excellent
✓ Computer literate and must have Microsoft Office skills
✓ Must have outstanding organizational and leadership skills
✓ Pleasing personality.
POSITION: CHEMICAL ENGINEER
JOB DESCRIPTION:
• Must have an aptitude for and interest in chemistry
• Commercial awareness
• Must have the ability to work well under pressure
• Communication and teamworking skills
• Must have the ability for problem-solving skills
• Investigating and troubleshooting plant/process problems
• Ensuring that equipment works to its specification and to appropriate capacities
• Ensuring safe working conditions and compliance with health and safety
legislation.
• Using and developing process simulation software to work out the best
production methods.
• supervising plant operations
JOB SPECIFICATION:
• Candidate must possess at least Bachelor's/College Degree in Chemistry or
Chemical Engineering
• Preferably a Licensed Chemist, Chemical Engineer and/ Chemical Technician
• Required language(s): English and Filipino

• Preferably with experience specialized in Process monitoring, Raw Materials
Testing and Quality control
• Dedication to work & career oriented, team player
• Honest & with high level of professionalism
POSITION: INVENTORY CLERK
JOB DESCRIPTION:
• Compares inventories to records or computes figures from records, such as
sales orders, production records, purchase, or purchase invoices to obtain current
inventory.
• Make reports, such as inventory balance, price lists, and shortages.
• Ability to monitor or trace the location of goods
• Responsible for controlling inventories.
• Maintain and Compiles records of quantity, type, and value of the material,
equipment, merchandise, or supplies stocked in the establishment.
JOB SPECIFICATION:
✓ Must have the ability to use Microsoft Office (such as Word, PowerPoint, and
Excel).
✓ 2-3 years' experience in inventory control.
✓ Accurate and sufficient data entry skills

✓ Excellent math and analytical skills
✓ Has the ability to work with demanding deadlines in a high-pressure
environment.
POSITION: SALES AND MARKETING SPECIALIST
JOB DESCRIPTION:
• Develop, implement, and track marketing programs such as email, social media,
or digital campaigns, and events.
• Collaborate with other internal teams (e.g.product and sales) to develop and
monitor strategic marketing initiatives.
• Analyze and report on the performance and efficiency of campaigns.
• Conduct market research and analyze trends to identify new marketing
opportunities.
• Develop and create marketing materials, such as sales and product collateral,
and ensure brand guidelines are met.
• Write, proofread, and edit creative and technical content across different
mediums.
• Work with external agencies and vendors to execute marketing programs.
• Supply management reports on customer needs, problems, interests, competitive
activities, and potential for new products and services.

• Performs cost-benefit and needs analysis of existing/potential customers to meet
or exceed their needs.
• Manages and monitor the promodizer personnel on assigned areas and its
performance.
JOB SPECIFICATION:
✓ Bachelor's degree in business administration, marketing, communications, or a
related field.
✓ Minimum of three (3) years experienced in a marketing and or sales / marketing
capacity.
TYPE OF SKILLS AND PERSONAL ATTRIBUTE:
✓ Good innovative, and interpersonal skills. Above average personal,
communication and business skills.
✓ Proficient in Microsoft Office Suite, Adobe and lead management systems.
✓ Ability to create and write copy for marketing materials.
✓ Ability to coordinate and manage design of marketing materials.
✓ Willingness to work a flexible schedule and travel up to 15% of the time.
✓ Has strong organizing and prioritizing skills.
✓ Must have proficiency with Google Analytics and web analysis tools.
✓ Must have a broad understanding of all Microsoft Office programs.
POSITION: MAINTENANCE HEAD
JOB DESCRIPTION:
• Allocate workload and supervise upkeep staff
• Monitor equipment inventory
• Keep maintenance records and report on daily activities
• Ensure health and safety policies have complied
• Establish maintenance protocols and maintain implementation
• Perform inspections of the facilities to recognize and address issues
• Checks the electrical and hydraulic systems of buildings to ensure the
functionality
• Plan and oversee all repair and maintenance, and installation Activities
• Ensure health and safety policies have complied
JOB SPECIFICATION:
✓ Experience in planning maintenance operations
✓ Solid understanding of technical aspects of plumbing, carpentry,
✓ Proven experience as a maintenance manager or another managerial role
✓ Excellent communication and interpersonal skills

✓ Able to keep track of and report daily activity
✓ A high school diploma or degree from a vocational school or BSc/BA in business
administration or facility management will be an advantage
✓ Valid Certified Maintenance Manager (CMM) will be a plus
✓ Outstanding organizational and leadership abilities
POSITION: QUALITY ASSURANCE OFFICER
JOB DESCRIPTION:
• Consistent performance in keeping up on standards, regulations/laws, issues,
and news concerning product (service) quality
• Obliged in the Inspection (examination) of incoming materials, ensuring that they
meet the standards. The organization ensures Quality Management System
conforms to the customer, internal, ISO 9001, and regulatory legal requirements,
• Responsible for conducting periodic management review meetings.
• Oversee product retails
• Has the capability to work with customers, employees, contractors, and
outstanding firms to develop product requirement harmoniously
• Obliged to report to top management on the performance of the QMS (e.g.,
results of quality audits, corrective actions), including the need for improvement.
JOB SPECIFICATION:
✓ Bachelor's Degree in Industrial Engineering
✓ Has superb communication skills and the ability to work well with peoples at
the level
✓ At least two (2) years experiences in Quality Assurance/ Quality Control.
✓ Must have Microsoft Office skills
✓ Must have an in-depth comprehension of quality control procedures and quality
management.
✓ Excellent math abilities and working experience in data analysis/statistical
methods.
✓ Certification of quality control is a strong advantage (ISO 9000.)
✓ Must have strong organizational, analytical, problem-solving, and management
skills
✓ A keen eye for details and result drive approach.
POSITION: SAFETY OFFICER
JOB DESCRIPTION:
• Plan and implement OHS policies and programs
• Prepare educational seminars and webinars on a regular basis
• Advise and lead employees on various safety-related topics

• Work with HR to set up a new employee on-boarding process for safety
• Review existing policies and procedures
• Adhere to all the rules and regulations
• Conduct risk assessment
• Enforce preventative measures
• Identify process bottlenecks and offer timely solutions
• Check if all the employees are acting in adherence with rules and regulations
• Prepare and present reports on accidents and violations and determine causes
• Oversee workplace repair, installations and any other work that could harm
employees' safety
JOB SPECIFICATION:
✓ Proven experience as safety officer
✓ In depth knowledge of legislation (e.g. OSHA/EPA) and procedures
✓ Knowledge of potentially hazardous materials or practices
✓ Familiarity with conducting data analysis and reporting statistics
✓ Experience in writing reports and policies for health and safety
✓ Proficient in MS Office; Working knowledge of safety management information
systems is a plus
✓ Outstanding organizational skills
✓ Diligent with great attention to detail
✓ Excellent communication skills with the ability to present and explain health and
safety topics
✓ BSc/BA in safety management, engineering or relevant field is preferred
✓ Certificate in occupational health and safety
POSITION: PROMODIZER
JOB DESCRIPTION:
• Ensures the achievement of sales targets.
• Visit different hardware stores in all of Cebu in a period of time to conduct
assessment.
• Responsible for timely and proper display and replenishment of merchandise.
• Receives and check accuracy of all products deliveries and reports discrepancies
immediately;
• Conduct inventory as scheduled.
• Identify and segregate items for pull-out damage, dirty and slow moving.
• Maintain orderliness and cleanliness at the merchandise area at different
hardware stores.
• Prepare and submit accurate reports on time.
• Provides fast, efficient and courteous service at all times to customers at different
hardware stores.
JOB SPECIFICATION:
✓ Demo skills.
✓ Good communication and presentation skills.
✓ Knowledgeable on power tools.
✓ Ability to work overtime during regular days and holidays when required.
✓ Mobility to travel throughout the province of Cebu from North to South hardware
stores that are distributed by the company.
✓ Strong analytical and planning skills.
✓ Excellent problem-solving skills.
LIST OF MANPOWER AND SECURITY AGENCIES TO OUTSOURCE
The Lucid Pinnacle Manufacturing Company will have a separate
recruitment process for production workers, utility personnel, and security guards.
Thus, the company will outsource manpower from different agencies. The profile
of the agencies is listed below.

TABLE 166: LIST OF MANPOWER AND SECURITY AGENCIES
CONTACT
POSITION NAME OF AGENCY ADDRESS
DETAILS
Cebu WorkActive Subangdaku,
Production Worker (032) 344 0433
Management Services Mandaue City
Utility Personnel (032) 344 0433
Driver (032) 344 0433
A.S Fortuna St.,
Security Guard Tactical Security Agency (032) 236 1492
Mandaue City
JOB DESCRIPTION OF THE OUTSOURCED PERSONNEL
POSITION: PRODUCTION WORKER
JOB DESCRIPTION:
• Convey materials from storage to worksites to a designated area
• Operate and monitor equipment and restock material is required
• Recognize and report malfunctions to responsible parties
• Maintains the equipment and machinery and assigned production area
cleanliness.
• Determine materials and move metal tin can containers proportional to the
given instruction
• Perform assigned task complying with quality systems requirements
• Promote safety and implement company policies always
• Making sure that finished items are stored safely before packaging
• Ensuring proper labeling of finished items and ensure that they package
properly
• Ensure to work following company policies and procedures
• Perform all production-related task and activities
JOB SPECIFICATION:
✓ Must be Male at least 21 years old to 35 years old.
✓ Must be physically and mentally fit.
✓ Willing to learn and operate machines.
✓ Must be at least 5 foot and 4 inches in height.
✓ Capable of lifting heavy packages unassisted.
✓ Must have a Junior High School Diploma.
✓ Able to multi-task in a fast-paced warehouse system environment
POSITION: UTILITY PERSONNEL
JOB DESCRIPTION:
• Clean restrooms and replenish supplies.
• Assist stock personnel in handling inventory duties along with providing
support in receiving, verifying, and storing office
• Clean and maintain floor surfaces, ceilings, and windows.

• Empty trash receptacles and ensure appropriate disposing of trash.
JOB SPECIFICATION:
✓ Must be at least 21 years old to 35 years old.
POSITION: DRIVER
JOB DESCRIPTION:
• Helps the production workers whenever there are no items to be delivered or
fill-in in guarding whenever the security guard is in a break.
• Responsible for maintaining the delivery truck in good condition
• Delivers the product with care
• Performs another task as assigned
JOB SPECIFICATION:
✓ Must be Male at least 21 years old to 35 years old.
✓ Must be at least 5 foot and 4 inches in height.

✓ Must have a professional driver’s license.
POSITION: SECURITY GUARD
JOB DESCRIPTION:
• Watch alarm systems video cameras and operate detecting/emergency
equipment
• Patrol randomly or regularly building and perimeter
• The report in detail any suspicious incidents
• Track and control access at building entrances and vehicle gates
• Protecting the company's property and staff by maintaining a safe and secure
environment.
• Take accurate notes of unusual occurrences
JOB SPECIFICATION:
✓ Must have a Certificate of passing a security training program that
demonstrates the necessary mental and physical aspects of the position
✓ Proven job experience as a security guard or a related job
✓ High School graduate

✓ Must have at least one year of working experience
✓ Able to operate detecting systems and emergency equipment
✓ Surveillance skills and detail orientation
TRAINING AND DEVELOPMENT PROGRAM
Training and development program enhance employee performance, boost
employee productivity, reduce employee turnover, and improve company culture.
The following is a list of Lucid Pinnacle Manufacturing Company's training and
development programs:
 Orientation Training
- It is the process of introducing new employees to their responsibilities,
coworkers, and workplace. People feel more at ease in their new jobs,
teams, and departments after receiving good orientation training, which
also informs them of business expectations and standards. During
orientation, new hires are given the opportunity to ask questions and
address any issues they may have.
 Health, Safety, and Security Training
- It is the prevention of illness, injuries, and criminal activity in the
workplace.
 Product Specific Training
- It is a training for a specific financial product, including any revisions to
that product.
 Hands-on Training
- It is a technique of training in which an employee learns his job by
executing his activities under the supervision of a supervisor.
TABLE 167: TRAINING COSTS
POSITION NEEDED
PARTICULARS COST AMOUNT
FOR TRAINING
Production Worker(4)
Basic Occupational
& Production ₱ 6,000.00 ₱ 30,000.00
Safety and Health
Supervisor(1)
The table above shows the training costs for four (4) production workers
and (1) production supervisor regarding basic occupational safety and health so
that they are aware the safety practices at the workplace and can abide to the
standards set by the Safety Officer at work.

PERSONNEL PLANTILLA
The tables below show the number of personnel, daily rate, monthly salary,
and annual salary for each employee.
TABLE 168: DIRECT LABOR SALARY
SALARY MONTHLY ANNUAL

POSITION HEADCOUNT
PER DAY SALARY SALARY
Production Worker 4 ₱ 404.00 ₱ 12,120.00 ₱ 581,760.00
The table above shows the annual direct labor salary, in which the total
amount is Php 581,760.00

TABLE 169: INDIRECT LABOR SALARY
POSITION HEADCOUNT SALARY PER DAY MONTHLY SALARY ANNUAL SALARY

General Manager 1 ₱ 1,019.54 ₱ 30,586.20 ₱ 367,034.40
Chief Financial
1 ₱ 903.76 ₱ 27,112.80 ₱ 325,353.60
Officer
Operations Manager 1 ₱ 874.58 ₱ 26,237.40 ₱ 314,848.80
Production
1 ₱ 685.67 ₱ 20,570.10 ₱ 246,841.20
Supervisor
Human Resource
1 ₱ 702.45 ₱ 21,073.50 ₱ 252,882.00
Staff
Accountant 1 ₱ 687.43 ₱ 20,622.90 ₱ 247,474.80
Quality Assurance
1 ₱ 584.12 ₱ 17,523.60 ₱ 210,283.20
Officer
Chemical Engineer 1 ₱ 910.47 ₱ 27,314.10 ₱ 327,769.20
Inventory Clerk 1 ₱ 587.26 ₱ 17,617.80 ₱ 211,413.60
Maintenance Head 1 ₱ 647.93 ₱ 19,437.90 ₱ 233,254.80
Sales and Marketing
1 ₱ 654.43 ₱ 19,632.90 ₱ 235,594.80
Officer
Safety Officer 1 ₱ 604.33 ₱ 18,129.90 ₱ 217,558.80
Promodizer 1 ₱ 512.34 ₱ 15,370.20 ₱ 184,442.40
Utility Worker 2 ₱ 404.00 ₱ 12,120.00 ₱ 290,880.00
Security Guard 2 ₱ 404.00 ₱ 12,120.00 ₱ 290,880.00
Driver 2 ₱ 404.00 ₱ 12,120.00 ₱ 290,880.00
TOTAL 19 ₱ 10,586.31 ₱ 317,589.30 ₱ 4,247,391.60
BASIS FOR INCREASE SALARIES AND WAGES
TABLE 170: MONTHLY INFLATION RATE FOR THE PAST YEARS
YEAR
MONTH
2016 2017 2018 2019 2020 2021
JANUARY 0.7 2.5 3.4 4.4 2.9 4.2
FEBRUARY 0.5 3.1 3.8 3.8 2.6 4.7
MARCH 0.6 3.1 4.3 3.3 2.5 4.5
APRIL 0.7 3.2 4.5 3.0 2.2 4.5
MAY 0.9 2.9 4.6 3.2 2.1 4.5
JUNE 1.3 2.5 5.2 2.7 2.5 4.1
JULY 1.3 2.4 5.7 2.4 2.7 4.0
AUGUST 1.3 2.6 6.4 1.7 2.4 4.9
SEPTEMBER 1.7 3.0 6.7 0.9 2.3 4.8
OCTOBER 1.8 3.1 6.7 0.8 2.5
NOVEMBER 2.1 3.0 6.0 1.3 3.3
DECEMBER 2.2 2.9 5.1 2.5 3.5
AVG 1.3 2.9 5.2 2.5 2.6 4.5
Source: https:/psa.gov.ph/summary-inflation-report
The table above shows the inflation rate per month for the past year from
2016 to 2021.
TABLE 171: PROJECTED INFLATION RATE IN THE PHILIPPINES
YEAR INFLATION RATE PROJECTED

2016 1.3
2017 2.9
2018 5.2
2019 2.5
2020 2.6
2021 4.5
2022 3.7
2023 3.3
2024 3.5
2025 3.8
2026 3.6
The table above shows the inflation rate in the Philippines. The projected
value of inflation rate from the year 2016 to 2026 was solved using the 4-year
moving average method in a 10-year period. The table below shows the calculation
for each years from 2022 to 2026.
TABLE 172: INFLATION RATE FORECAST CALCULATION
YEAR CALCULATION
2022 5.2+2.5+2.6+4.5 = 14.8/4 = 3.7
2023 2.5+2.6+4.5+3.7 = 13.3/4 = 3.3
2024 2.6+4.5+3.7+3.3 = 14.1/4 = 3.5
2025 4.5+3.7+3.3+3.5 = 15.0/4 = 3.8
2026 3.7+3.3+3.5+3.8 = 14.3/4 =3.6
EMPLOYEE PERFORMANCE APPRAISAL
Company's supervisor or manager is responsible for evaluating employee
performance. When performing evaluations, an evaluation form is provided. The
outcomes would be used to determine the workers' benefit, which may include a
raise in pay or a bonus in exchange for their hard work. The corporation might then
motivate their employees to do good to display positive performance.

FIGURE 66: PERFORMANCE APPRAISAL FORM (1 ST PAGE)

FIGURE 67: PERFORMANCE APPRAISAL FORM (2 ND PAGE)

LIST OF EMPLOYEE BENEFITS AND PRIVILEGES
By recognizing the abilities and responsibilities that each person's work entails,
the company ensures that each employee receives a fair wage. Aside from basic
compensation, the company offers a variety of bonuses and privileges to
encourage employees to carry out their responsibilities correctly. Employees will
be able to take use of the following benefits:
 OVERTIME PAY
Overtime pay for a holiday or rest day must include the cost of the first eight
hours on holiday plus at least 30%. On a Special Non-Working holiday, an
extra 30% premium will be paid in addition to the rate of pay for the first
night of a holiday.
 HOLIDAY PAY
According to the Philippine Labor Code, an employee's daily basic needs
must be met on a daily basis. All non-working regular holidays are paid at
the same rate. There are a total of twelve (12) regular positions available.
In the Philippines, there are three (3) non-working holidays. Twelve (12)
regular holidays (Act No. 9849):

TABLE 173: LIST OF HOLIDAYS
DATE HOLIDAY NAME HOLIDAY TYPE

Jan-01 New Year's Day Regular holiday
Movable Chinese New Year Special nonworking holiday
Feb-25 People Power Revolution Regular holiday
Apr-09 The Day of Valor Regular holiday
May-01 Labor Day Regular holiday
Jun-12 Independence Day Regular holiday
Aug-21 Ninoy Aquino Day Special nonworking holiday
Aug-27 National Heroes Day Regular holiday
Nov-01 All Saint's Day Special nonworking holiday
Nov-02 All Souls' Day Special nonworking holiday
Nov-30 Bonifacio Day Regular holiday
Dec-08 Immaculate Conception Day Special nonworking holiday
Dec-24 Christmas Eve Special nonworking holiday
Dec-25 Christmas Day Regular holiday
Dec-30 Rizal Day Regular holiday
Dec-31 New Year's Eve Regular holiday
Movable Maundy Thursday Special nonworking holiday
Movable Good Friday Regular holiday
Movable Black Saturday Regular holiday
Movable Eid' l Fitr Special nonworking holiday
Movable Edul Adha Regular holiday
TABLE 174: HOLIDAY PAY COMPUTATION 2022
SPECIAL NON-
REGULAR TOTAL ADDITIONAL
DAILY WORKING
POSITION HOLIDAY (4 SALARIES AND
SALARY HOLIDAY (4
DAYS)+100% WAGES
DAYS+30% )
General Manager ₱ 1,019.54 ₱ 4,078.16 ₱ 1,325.40 ₱ 5,403.56
Chief financial officer ₱ 903.76 ₱ 3,615.04 ₱ 1,174.89 ₱ 4,789.93
Operations Manager ₱ 874.58 ₱ 3,498.32 ₱ 1,136.95 ₱ 4,635.27
Production supervisor ₱ 685.67 ₱ 2,742.68 ₱ 891.37 ₱ 3,634.05
Human Resource staff ₱ 702.45 ₱ 2,809.80 ₱ 913.19 ₱ 3,722.99
Accountant ₱ 687.43 ₱ 2,749.72 ₱ 893.66 ₱ 3,643.38
Quality assurance
₱ 584.12 ₱ 2,336.48 ₱ 759.36 ₱ 3,095.84
officer
Chemical Engineer ₱ 910.47 ₱ 3,641.88 ₱ 1,183.61 ₱ 4,825.49
Inventory clerk ₱ 587.26 ₱ 2,349.04 ₱ 763.44 ₱ 3,112.48
Maintenance Head ₱ 647.93 ₱ 2,591.72 ₱ 842.31 ₱ 3,434.03
Sales and Marketing
₱ 654.43 ₱ 2,617.72 ₱ 850.76 ₱ 3,468.48
Officer
Safety officer ₱ 604.33 ₱ 2,417.32 ₱ 785.63 ₱ 3,202.95
Promodizer ₱ 512.34 ₱ 2,049.36 ₱ 666.04 ₱ 2,715.40
Utility worker 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Utility worker 2 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Security Guard 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Security Guard 2 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Driver 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Driver 2 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Production Worker 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
TOTAL ₱ 13,414.31 ₱ 53,657.24 ₱ 17,438.60 ₱ 71,095.84
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY
DAYS)+100 WAGES
(8DAYS+30%
General Manager ₱ 1,053.00 ₱ 16,848.00 ₱ 1,368.90 ₱ 18,216.90
Accountant ₱ 710.12 ₱ 11,361.92 ₱ 923.16 ₱ 12,285.08
Quality assurance
₱ 603.39 ₱ 9,654.24 ₱ 784.41 ₱ 10,438.65
officer
Inventory clerk ₱ 606.64 ₱ 9,706.24 ₱ 788.63 ₱ 10,494.87
Sales and Marketing
₱ 676.03 ₱ 10,816.42 ₱ 878.83 ₱ 11,695.25
Officer
Safety officer ₱ 624.27 ₱ 9,988.37 ₱ 811.55 ₱ 10,799.92
Promodizer ₱ 529.25 ₱ 8,467.96 ₱ 688.02 ₱ 9,155.98
Utility worker 1 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Utility worker 2 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Security Guard 1 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Security Guard 2 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Driver 1 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Driver 2 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
TOTAL ₱ 13,856.83 ₱ 221,709.25 ₱ 18,013.88 ₱ 239,723.12
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY
DAYS)+100 WAGES
(8DAYS+30%
General Manager ₱ 1,089.86 ₱ 17,437.68 ₱ 1,416.81 ₱ 18,854.49
Accountant ₱ 734.97 ₱ 11,759.59 ₱ 955.47 ₱ 12,715.05
Quality assurance
₱ 624.51 ₱ 9,992.14 ₱ 811.86 ₱ 10,804.00
officer
Inventory clerk ₱ 627.87 ₱ 10,045.96 ₱ 816.23 ₱ 10,862.19
Sales and Marketing
₱ 699.69 ₱ 11,194.99 ₱ 909.59 ₱ 12,104.59
Officer
Safety officer ₱ 646.12 ₱ 10,337.96 ₱ 839.96 ₱ 11,177.92
Promodizer ₱ 547.77 ₱ 8,764.33 ₱ 712.10 ₱ 9,476.44
Utility worker 1 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Utility worker 2 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Security Guard 1 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Security Guard 2 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Driver 1 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Driver 2 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
TOTAL ₱ 14,341.82 ₱ 229,469.07 ₱ 18,644.36 ₱ 248,113.43
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY
DAYS)+100 WAGES
(8DAYS+30%
General Manager ₱ 1,131.27 ₱ 18,100.31 ₱ 1,470.65 ₱ 19,570.96
Chief financial officer ₱ 1,002.97 ₱ 16,047.57 ₱ 1,303.86 ₱ 17,351.43
Human Resource staff ₱ 779.57 ₱ 12,473.06 ₱ 1,013.44 ₱ 13,486.49
Accountant ₱ 762.90 ₱ 12,206.45 ₱ 991.77 ₱ 13,198.23
Quality assurance
₱ 648.24 ₱ 10,371.84 ₱ 842.71 ₱ 11,214.55
officer
Chemical Engineer ₱ 1,010.47 ₱ 16,167.55 ₱ 1,313.61 ₱ 17,481.16
Inventory clerk ₱ 651.73 ₱ 10,427.70 ₱ 847.25 ₱ 11,274.96
Sales and Marketing
₱ 726.28 ₱ 11,620.40 ₱ 944.16 ₱ 12,564.56
Officer
Safety officer ₱ 670.68 ₱ 10,730.80 ₱ 871.88 ₱ 11,602.68
Promodizer ₱ 568.59 ₱ 9,097.38 ₱ 739.16 ₱ 9,836.54
Utility worker 1 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Utility worker 2 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Security Guard 1 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Security Guard 2 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Driver 1 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Driver 2 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
TOTAL ₱ 14,886.81 ₱ 238,188.90 ₱ 19,352.85 ₱ 257,541.74
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY
DAYS)+100 WAGES
(8DAYS+30%
General Manager ₱ 1,172.00 ₱ 18,751.92 ₱ 1,523.59 ₱ 20,275.52
Operations Manager ₱ 1,005.53 ₱ 16,088.54 ₱ 1,307.19 ₱ 17,395.74
Production supervisor ₱ 788.33 ₱ 12,613.29 ₱ 1,024.83 ₱ 13,638.13
Accountant ₱ 790.37 ₱ 12,645.88 ₱ 1,027.48 ₱ 13,673.36
Quality assurance
₱ 671.58 ₱ 10,745.23 ₱ 873.05 ₱ 11,618.28
officer
Inventory clerk ₱ 675.19 ₱ 10,803.10 ₱ 877.75 ₱ 11,680.85
Sales and Marketing
₱ 752.42 ₱ 12,038.74 ₱ 978.15 ₱ 13,016.89
Officer
Safety officer ₱ 694.82 ₱ 11,117.11 ₱ 903.27 ₱ 12,020.38
Promodizer ₱ 589.06 ₱ 9,424.88 ₱ 765.77 ₱ 10,190.66
Utility worker 1 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Utility worker 2 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Security Guard 1 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Security Guard 2 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Driver 1 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Driver 2 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
TOTAL ₱ 15,422.73 ₱ 246,763.70 ₱ 20,049.55 ₱ 266,813.25
 VACATION PAY
Thirteen (13) vacation days, and one (1) additional vacation day beginning
in the second year of employment, all of which are convertible to cash at
the conclusion of the year. A total of eighteen (18) days of vacation leave is
allowed.
 RETIREMENT
From the age of sixty, all private sector employees are eligible to retire, until
they reach the age of 65, at which point they must retire, and the employees
must consume a total of 5 years working in the company. Retirement pay
must be equivalent to half of a month's salary for each year of service, and
a fraction of a minimum of six (6) months is therefore considered annual.
The following must be included in a half month salary:
o Fifteen-day salary based on the last salary pay,
o The pay equivalent of five days of incentive left,
o 1/12 of the 13th month pay. Therefore, one and one-half month salary
is equal to twenty-two and a half days.
Minimum Retirement pay = Updated daily pay rate x 22.5 days per
month x number of years of employment-based on employer-employee
arrangements. The following are some of the other benefits that might
be included in retirement pay: Collective Bargaining Agreement (CBA).

 SOCIAL SECURITY SYSTEM (SSS)
The Philippine government was the one who started, developed, and
promoted it. The Republic Act, also known as the Social Security Act of
1997. No. 8282, a legislation requiring all employees recruited by private
businesses to become members of the SSS. The goal of the Social Security
System is to make sure that everyone has a safe place to live. When its
members are unable to work due to illness or injury, the organization
provides financial help. Employees must pay their taxes. Contributions are
made monthly, based on the employees' real monthly earnings.

FIGURE 68: UPDATED SSS CONTRIBUTION

TABLE 179: SSS CONTRIBUTION 2022
EMPLOYEES CONTRIBUTION EMPLOYERS CONTRIBUTION

TOTAL
POSITION MONTHLY SALARY MONTHLY ANNUALLY MONTHLY ANNUALLY
General Manager ₱ 31,717.89 ₱ 1,125.00 ₱ 3,375.00 ₱ 2,155.00 ₱ 6,465.00
Chief Financial Officer ₱ 28,115.97 ₱ 1,125.00 ₱ 3,375.00 ₱ 2,155.00 ₱ 6,465.00
Operations Manager ₱ 27,208.18 ₱ 1,125.00 ₱ 3,375.00 ₱ 2,155.00 ₱ 6,465.00
Production supervisor ₱ 21,331.19 ₱ 922.50 ₱ 2,767.50 ₱ 1,772.50 ₱ 5,317.50
Human Resource staff ₱ 21,853.22 ₱ 900.00 ₱ 2,700.00 ₱ 1,730.00 ₱ 55,190.00
Accountant ₱ 21,385.95 ₱ 922.50 ₱ 2,767.50 ₱ 1,772.50 ₱ 5,317.00
Quality assurance officer ₱ 18,171.97 ₱ 787.50 ₱ 2,362.50 ₱ 1,517.50 ₱ 4,552.50
Chemical Engineer ₱ 28,324.72 ₱ 1,125.00 ₱ 3,375.00 ₱ 2,155.00 ₱ 6,465.00
Inventory clerk ₱ 18,269.66 ₱ 787.50 ₱ 2,362.50 ₱ 1,517.50 ₱ 4,552.50
Maintenance Head ₱ 20,157.10 ₱ 877.50 ₱ 2,632.50 ₱ 1,687.50 ₱ 5,062.50
Sales and Maketing Officer ₱ 20,359.32 ₱ 877.50 ₱ 2,632.50 ₱ 1,687.50 ₱ 5,062.50
Safety officer ₱ 18,800.71 ₱ 810.00 ₱ 2,430.00 ₱ 1,560.00 ₱ 4,680.00
₱ 259,450.50
Promodizer ₱ 15,938.90 ₱ 679.50 ₱ 2,038.50 ₱ 1,347.50 ₱ 4,042.50
Utility worker 1 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Utility worker 2 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Security Guard 1 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Security Guard 2 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Driver 1 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Driver 2 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Production Worker 1 ₱ 12,568.44 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Total ₱ 417,319.18 ₱ 17,464.50 ₱ 71,833.50 ₱ 33,512.50 ₱ 187,617.00

TOTAL
General Manager ₱ 32,764.58 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Accountant ₱ 22,091.68 ₱ 967.50 ₱ 11,610.00 ₱ 1,857.50 ₱ 22,290.00
Inventory clerk ₱ 18,872.56 ₱ 810.00 ₱ 9,720.00 ₱ 1,560.00 ₱ 18,720.00
Safety officer ₱ 19,421.13 ₱ 832.50 ₱ 9,990.00 ₱ 1,602.50 ₱ 19,230.00
₱ 622,860.00
Promodizer ₱ 16,464.88 ₱ 720.00 ₱ 8,640.00 ₱ 1,390.00 ₱ 16,680.00
Utility worker 1 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Utility worker 2 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Security Guard 1 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Security Guard 2 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Driver 1 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Driver 2 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
TOTAL ₱ 431,090.72 ₱ 17,797.50 ₱ 213,570.00 ₱ 34,107.50 ₱ 409,290.00

TOTAL
General Manager ₱ 33,911.34 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Human Resource staff ₱ 23,364.48 ₱ 1,012.50 ₱ 12,150.00 ₱ 1,942.50 ₱ 23,310.00
Accountant ₱ 22,864.89 ₱ 990.00 ₱ 11,880.00 ₱ 1,900.00 ₱ 22,800.00
Inventory clerk ₱ 19,533.10 ₱ 832.50 ₱ 9,990.00 ₱ 1,602.50 ₱ 19,230.00
Safety officer ₱ 20,100.87 ₱ 877.50 ₱ 10,530.00 ₱ 1,687.50 ₱ 20,250.00
₱ 647,820.00
Promodizer ₱ 17,041.15 ₱ 742.50 ₱ 8,910.00 ₱ 1,432.50 ₱ 17,190.00
Utility worker 1 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Utility worker 2 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Security Guard 1 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Security Guard 2 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Driver 1 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Driver 2 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
TOTAL ₱ 446,178.89 ₱ 18,517.50 ₱ 222,210.00 ₱ 35,467.50 ₱ 425,610.00

TOTAL
General Manager ₱ 35,199.97 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Production supervisor ₱ 23,672.99 ₱ 1,035.00 ₱ 12,420.00 ₱ 1,985.00 ₱ 23,820.00
Accountant ₱ 23,733.76 ₱ 1,035.00 ₱ 12,420.00 ₱ 1,985.00 ₱ 23,820.00
Inventory clerk ₱ 20,275.35 ₱ 877.50 ₱ 10,530.00 ₱ 1,687.50 ₱ 20,250.00
Safety officer ₱ 20,864.70 ₱ 900.00 ₱ 10,800.00 ₱ 1,730.00 ₱ 20,760.00
₱ 665,760.00
Promodizer ₱ 17,688.72 ₱ 765.00 ₱ 9,180.00 ₱ 1,475.00 ₱ 17,700.00
Utility worker 1 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Utility worker 2 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Security Guard 1 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Security Guard 2 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Driver 1 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Driver 2 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
TOTAL ₱ 463,133.69 ₱ 19,035.00 ₱ 228,420.00 ₱ 36,445.00 ₱ 437,340.00

TOTAL
General Manager ₱ 36,467.17 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Accountant ₱ 24,588.17 ₱ 1,057.50 ₱ 12,690.00 ₱ 2,027.50 ₱ 24,330.00
Inventory clerk ₱ 21,005.27 ₱ 922.50 ₱ 11,064.00 ₱ 1,772.50 ₱ 21,270.00
Maintenance Head ₱ 23,175.33 ₱ 1,012.50 ₱ 12,150.00 ₱ 1,942.50 ₱ 23,310.00
Sales and Marketing Officer ₱ 23,407.82 ₱ 1,012.50 ₱ 12,150.00 ₱ 1,942.50 ₱ 23,310.00
Safety officer ₱ 21,615.83 ₱ 945.00 ₱ 11,340.00 ₱ 1,815.00 ₱ 21,780.00
₱ 703,248.00
Promodizer ₱ 18,325.51 ₱ 787.50 ₱ 9,444.00 ₱ 1,517.50 ₱ 18,210.00
Utility worker 1 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Utility worker 2 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Security Guard 1 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Security Guard 2 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Driver 1 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Driver 2 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
TOTAL ₱ 479,806.50 ₱ 19,597.50 ₱ 235,158.00 ₱ 37,507.50 ₱ 450,090.00
 PAG-IBIG FUND
The PAG-IBIG Housing Development Program, or Republic Act 7835,
requires companies to contribute to the Home Development and Mutual
Fund on behalf of their employees. PAG-IBIG is a government organization
that offers its members the best rates on home and land purchase loans.
Because the payment plan involves a direct withdrawal from the employees'
monthly wage, this chance will encourage them to make a better plan for
purchasing a home.
FIGURE 69: PAG-IBIG CONTRIBUTION TABLE

TABLE 184: PAG-IBIG CONTRIBUTION 2022
Position EE ER MONTHLY ANNUAL

General Manager PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Chief Financial Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Operations Manager PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Production Supervisor PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Human Resource Staff PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Accountant PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Quality Assurance Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Chemical Engineer PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Inventory Clerk PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Maintenance Head PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Sales and Marketing Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Safety Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Promodizer PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Utility Worker 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Utility Worker 2 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Security Guard 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Security Guard 2 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Driver 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Driver 2 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Production Worker 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 600.00
Total PHP 13,800.00
TABLE 185: PAG-IBIG CONTRIBUTION 2023-2026
Position EE ER MONTHLY ANNUAL

General Manager PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Chief Financial Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Operations Manager PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Production Supervisor PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Human Resource Staff PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Accountant PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Quality Assurance Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Chemical Engineer PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Inventory Clerk PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Maintenance Head PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Sales and Marketing Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Safety Officer PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Promodizer PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Utility Worker 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Utility Worker 2 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Security Guard 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Security Guard 2 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Driver 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Driver 2 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
Production Worker 1 PHP 100.00 PHP 100.00 PHP 200.00 PHP 2,400.00
 Total PHP 55,200.00
 PHILIPPINE HEALTH INSURANCE (PHIL-HEALTH)
The Republic Act 7875 is a socialized health insurance policy that provides
all Filipinos with comprehensive health care. Every employee is expected
to contribute to Phil Health. The Philippine National Health Corporation
administers Phil-Health, which is meant to provide employees with a
realistic way of paying for medical treatment. In the event that members and
their dependents are hospitalized, health and hospitalization subsidies are
granted to them. The monthly contributions are calculated using the
employee's actual monthly pay.

TABLE 186: UPDATED PHIL-HEALTH CONTRIBUTION

TABLE 187: PHIL-HEALTH CONTRIBUTION 2022
Philhealth Contribution Employee's Contribution Employer's Contribution

Total
Position Monthly Salary Monthly Annually Monthly Annually
General Manager ₱ 31,717.89 ₱ 634.36 ₱ 1,903.07 ₱ 634.36 ₱ 1,903.07
Chief Financial Officer ₱ 28,115.97 ₱ 562.32 ₱ 1,686.96 ₱ 562.32 ₱ 1,686.96
Operations Manager ₱ 27,208.18 ₱ 544.16 ₱ 1,632.49 ₱ 544.16 ₱ 1,632.49
Production Supervisor ₱ 21,331.19 ₱ 426.62 ₱ 1,279.87 ₱ 426.62 ₱ 1,279.87
Human Resource Staff ₱ 21,853.22 ₱ 437.06 ₱ 1,311.19 ₱ 437.06 ₱ 1,311.19
Accountant ₱ 21,385.95 ₱ 427.72 ₱ 1,283.16 ₱ 427.72 ₱ 1,283.16
Quality Assurance Officer ₱ 18,171.97 ₱ 363.44 ₱ 1,090.32 ₱ 363.44 ₱ 1,090.32
Chemical Engineer ₱ 28,324.72 ₱ 566.49 ₱ 1,699.48 ₱ 566.49 ₱ 1,699.48
Inventory Clerk ₱ 18,269.66 ₱ 365.39 ₱ 1,096.18 ₱ 365.39 ₱ 1,096.18
Maintenance Head ₱ 20,157.10 ₱ 403.14 ₱ 1,209.43 ₱ 403.14 ₱ 1,209.43
Sales and Marketing Officer ₱ 20,359.32 ₱ 407.19 ₱ 1,221.56 ₱ 407.19 ₱ 1,221.56
Safety Officer ₱ 18,800.71 ₱ 376.01 ₱ 1,128.04 ₱ 376.01 ₱ 1,128.04
₱ 125,195.76
Promodizer ₱ 15,938.90 ₱ 318.78 ₱ 956.33 ₱ 318.78 ₱ 956.33
Utility Worker 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Utility Worker 2 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Security Guard 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Security Guard 2 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Driver 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Driver 2 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Production Worker 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Total ₱ 417,319.18 ₱ 8,346.38 ₱ 25,039.15 ₱ 8,346.38 ₱ 100,156.60

Total
General Manager ₱ 32,764.58 ₱ 737.20 ₱ 8,846.44 ₱ 737.20 ₱ 8,846.44
Accountant ₱ 22,091.68 ₱ 497.06 ₱ 5,964.75 ₱ 497.06 ₱ 5,964.75
Inventory Clerk ₱ 18,872.56 ₱ 424.63 ₱ 5,095.59 ₱ 424.63 ₱ 5,095.59
Safety Officer ₱ 19,421.13 ₱ 436.98 ₱ 5,243.70 ₱ 436.98 ₱ 5,243.70
₱ 232,788.99
Promodizer ₱ 16,464.88 ₱ 370.46 ₱ 4,445.52 ₱ 370.46 ₱ 4,445.52
Utility Worker 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Utility Worker 2 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Security Guard 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Security Guard 2 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Driver 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Driver 2 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Production Worker 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Total ₱ 431,090.72 ₱ 9,699.54 ₱ 116,394.49 ₱ 9,699.54 ₱ 116,394.49

Total
General Manager ₱ 33,911.34 ₱ 847.78 ₱ 10,173.40 ₱ 847.78 ₱ 10,173.40
Accountant ₱ 22,864.89 ₱ 571.62 ₱ 6,859.47 ₱ 571.62 ₱ 6,859.47
Inventory Clerk ₱ 19,533.10 ₱ 488.33 ₱ 5,859.93 ₱ 488.33 ₱ 5,859.93
Safety Officer ₱ 20,100.87 ₱ 502.52 ₱ 6,030.26 ₱ 502.52 ₱ 6,030.26
₱ 267,707.34
Promodizer ₱ 17,041.15 ₱ 426.03 ₱ 5,112.35 ₱ 426.03 ₱ 5,112.35
Utility Worker 1 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Utility Worker 2 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Security Guard 1 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Security Guard 2 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Driver 1 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Driver 2 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Total ₱ 446,178.89 ₱ 11,154.47 ₱ 133,853.67 ₱ 11,154.47 ₱ 133,853.67

Total
General Manager ₱ 35,199.97 ₱ 880.00 ₱ 10,559.99 ₱ 880.00 ₱ 10,559.99
Accountant ₱ 23,733.76 ₱ 593.34 ₱ 7,120.13 ₱ 593.34 ₱ 7,120.13
Inventory Clerk ₱ 20,275.35 ₱ 506.88 ₱ 6,082.61 ₱ 506.88 ₱ 6,082.61
Safety Officer ₱ 20,864.70 ₱ 521.62 ₱ 6,259.41 ₱ 521.62 ₱ 6,259.41
₱ 277,880.21
Promodizer ₱ 17,688.72 ₱ 442.22 ₱ 5,306.61 ₱ 442.22 ₱ 5,306.61
Utility Worker 1 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Utility Worker 2 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Security Guard 1 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Security Guard 2 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Driver 1 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Driver 2 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Total ₱ 463,133.69 ₱ 11,578.34 ₱ 138,940.11 ₱ 11,578.34 ₱ 138,940.11

Total
General Manager ₱ 36,467.17 ₱ 1,002.85 ₱ 12,034.17 ₱ 1,002.85 ₱ 12,034.17
Accountant ₱ 24,588.17 ₱ 676.17 ₱ 8,114.10 ₱ 676.17 ₱ 8,114.10
Inventory Clerk ₱ 21,005.27 ₱ 577.64 ₱ 6,931.74 ₱ 577.64 ₱ 6,931.74
Safety Officer ₱ 21,615.83 ₱ 594.44 ₱ 7,133.22 ₱ 594.44 ₱ 7,133.22
₱ 316,672.29
Promodizer ₱ 18,325.51 ₱ 503.95 ₱ 6,047.42 ₱ 503.95 ₱ 6,047.42
Utility Worker 1 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Utility Worker 2 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Security Guard 1 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Security Guard 2 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Driver 1 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Driver 2 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Total ₱ 479,806.50 ₱ 13,194.68 ₱ 158,336.15 ₱ 13,194.68 ₱ 158,336.15
 13TH MONTH PAY
Employers in the Philippines' private sector are required to pay their rank-
and-file employees a thirteenth month salary no later than December 24
each year, according to Presidential Decree No. 851. One-twelfth (1/12) of
an employee's basic yearly wage is paid in the thirteenth month. It's
mandated by labor law, and businesses that don't supply it face legal action
from the Department of Labor and Employment (DOLE).

TABLE 192: 13TH MONTH PAY FOR 2022 TO 2026
13TH MONTH PAY

POSITION 2022 2023 2024 2025 2026
General Manager ₱ 2,548.85 ₱ 32,764.58 ₱ 33,911.34 ₱ 35,199.97 ₱ 36,467.17
Production Supervisor ₱ 1,714.18 ₱ 22,035.12 ₱ 22,806.35 ₱ 23,672.99 ₱ 24,525.22
Human Resource Staff ₱ 1,756.13 ₱ 22,574.38 ₱ 23,364.48 ₱ 24,252.33 ₱ 25,125.41
Accountant ₱ 1,718.58 ₱ 22,091.68 ₱ 22,864.89 ₱ 23,733.76 ₱ 24,588.17
Quality Assurance Officer ₱ 1,460.30 ₱ 18,771.65 ₱ 19,428.66 ₱ 20,166.94 ₱ 20,892.95
Inventory clerk ₱ 1,468.15 ₱ 18,872.56 ₱ 19,533.10 ₱ 20,275.35 ₱ 21,005.27
Safety Officer ₱ 1,510.83 ₱ 19,421.13 ₱ 20,100.87 ₱ 20,864.70 ₱ 21,615.83
Promodizer ₱ 1,280.85 ₱ 16,464.88 ₱ 17,041.15 ₱ 17,688.72 ₱ 18,325.51
Utility worker 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Utility worker 2 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Security Guard 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Security Guard 2 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Driver 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Driver 2 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Production Worker 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
TOTAL ₱ 33,535.81 ₱ 431,090.72 ₱ 446,178.89 ₱ 463,133.69 ₱ 479,806.50
 LEAVE BENEFITS
o Sick Leave
For the first two years of employment, you will be required to work
twelve (12) days each year. Starting in the second year of service,
you will receive an additional one sick day every year. Total sick
leave is limited to 15 days. In December of each year, all accrued
leave days are converted to cash.
o Paternity Leave
All legally married male workers are entitled to seven (7) working
days up to four (4) births or miscarriage of their legal spouse, which
must be taken within sixty (60) days after delivery or miscarriage.
o Bereavement
Three (3) days in an immediate family member's death include the
employee's children, parents, grandparents, brother, sister, spouse,
and parent-in-law.
o Solo Parent Leave
Single parents are entitled to seven (7) days of paid parental leave,
as determined by the DSWD.
o Calamity Leave
Employees who are significantly impacted by disasters will be
granted a two-day leave (which must be backed up by a government
proclamation).
o Magna Carta for Women

All female employees who have had surgery will be offered sixty (60)
calendar days off. They are caused by gynecological problems and
have provided continuous service for at least six (6) months in the
previous twelve (12) months prior to surgery.
 OTHER BENEFITS
o Loyal Token
During the service award ceremony, employees will be awarded for
their devotion and committed service with a gift check or token, as
well as a plaque of recognition, for every five years of continuous
service.
o Prolong Sickness Benefits
It will be offered to all workers who have worked for at least six
months. The goal of this benefit is to preserve ordinary employees'
salaries throughout their recovery from specific medical disorders.
o “Kapwa-Tulong” Program
In the event of the death of immediate dependents or a tragedy, cash
aid is granted to an employee (KTC members only). The Kapwa
Tulong Program, which is operated by salary deduction, matches the
employee's contribution.
EMPLOYEE ASSISTANCE PROGRAM
An employee assistance program (EAP) is a work-based intervention
program that helps workers deal with personal issues that are hurting their
performance. Most EAPs today offer a broad variety of difficulties such as child or
elder care, marital troubles, financial or legal issues, health issues, and traumatic
incidents such as workplace violence. Stand-alone EAP vendors or providers that
are part of comprehensive health insurance policies give programs at no cost to
workers. An EAP may also include a wide array of other services, such as nurse
advice lines, basic legal assistance or adoption assistance. EAP services are
usually made available not only to the employee but also to the employee's
spouse, children and non-marital partner living in the same household as the
employee.
DISCIPLINARY ACTION
The Lucid Pinnacle Manufacturing Company promotes a disciplinary
execution. Employees that do not follow the company's policies will be
disciplined. There is a matching level of offenses for each transgression.

TABLE 193: VIOLATION AND REMEDIAL ACTION
REMEDIAL ACTION
VIOLATION
1ST 2ND 3RD 4TH 5TH
Absenteeism W S(1) S(5) S(7) T
Tardiness V W S(3) S(7) T
Disobedience of Official Orders S(3) S(5) S(7) T
Absence without Leave V W S(1) S(3) T
Failure to meet Work Performance W S(1) S(5) S(7) T
Early dismissal without approval

W S(1) S(5) S(7) T
from the supervisor
Improper Uniform V W S(3) S(7) T
Loitering during working hours V W S(3) S(7) T
Eating outside during working
W S(1) S(5) S(7) T
hours
Sleeping during working hours W S(1) S(5) S(7) T
Fighting or attempting to harm
S(7) T
another employee
Threatening or harassing any
S(7) T
member of the company
Commiting criminal offenses T
Reporting to work under the
S(7) T
influence of alcohol or drugs
Using harsh and explicit language
within the premises of the W S(1) S(5) S(7) T
company
Smoking inside the company
W S(1) S(5) S(7) T
premises
Sabotage T
Theft T
Disobedienceto company rules
W S(1) S(5) S(7) T
and regulations
Falsification of company records T
Dissemination of confidential
T
information without approval
Embezzlement of Funds T
The table above shows the violation and remedial action in the company.
The letter “W” means that the employee receives a written warning, “V” means that
the employee receives a verbal warning, “S (# of days)” means that the employee
is suspended for a number of working days, “T” means that the employee is
terminated from the company due to repetitive or excessive misconduct of
behavior.
CODE OF CONDUCT
Lucid Pinnacle Manufacturing Company employees are guaranteed a
safe and nondiscriminatory working environment. As part of this commitment, all
employees must be aware of and follow the company's health, safety, and
acceptable coworker treatment regulations.
Safe and Healthy Workplace
The company provides a work environment that is safe, healthy, and devoid
of violence. It is forbidden to engage in behavior that endangers the safety, health,
or security of our employees, our extended workforce, or guests. If you become
aware of a threat to our workplace's safety, health, or security, you should
immediately notify Company Security.
Equal Opportunity Employment
Individual merit and qualifications directly related to professional
competence are the criteria for employment at this company. We do not tolerate
unlawful discrimination or harassment based on race, color, religion, veteran
status, national origin, ancestry, pregnancy status, sex, gender identity or
expression, age, marital status, mental or physical disability, medical condition,

sexual orientation, or any other legally protected characteristic. We also implement
all necessary concessions to comply with legislation safeguarding disabled
people's rights.
Alcohol and Controlled Substances
Inside the company, alcohol and any other substance are not permitted.
Employees must ensure that they are physically fit while executing their duties.
Weapons
Any weapon capable of causing physical harm is prohibited and banned on the
grounds of Lucid Pinnacle Manufacturing Company.
Harassment, Discrimination, and Bullying
As detailed in our Policy against Discrimination, Harassment, and
Retaliation, Lucid Pinnacle Manufacturing Company discourages discrimination,
harassment, and bullying in any form - verbal, sexual, physical, or visual. If you
believe you've been bullied, harassed, or discriminated against by anybody at the
company, please notify your supervisor, Human Resources, or both immediately.
Violation of Laws
Any employee who violates any governmental regulation, law, or commonly
accepted rules and standards will not be able to attain any company goal.
COMPANY GUIDELINES
Working Days and Hours
The regular working day of the organization is seven times a week from
Monday to Sunday. Each employee is given one (1) day off per week with shifting
schedules every week on who would have a day off in that specific week. Each
employee should be on duty for nine (9) hours per day with one (1) hour lunch
break.
Salaries and Wages
The salary compensation will be given by the human resource staff to
distribute it among all the employees in the company. Salaries will be given every
15th and 30th day of the month.
Suspension on Violation and Remedial Action
The number of days of suspension will be based on the degree of the
violation done by the employees.
Attendance
The attendance for the employees is monitored through a biometric
scanner. Each employee is allowed 15 minutes from the start of the operating
hours to be present at the company. More than fifteen (15) minutes of arrival, the
employee is already considered late. Late or absent employees must inform their
supervisor or top management in the company.

Workplace Security Policies
Security policies are in place to safeguard not just the people in a company,
but also the physical and intellectual property. Policies may cover the usage of ID
cards and the processes for signing in a guest at a facility. A business laptop or
smartphone, for example, may need to be signed out.
BREAKTIME SCHEDULE
The following tables 194 and 195 below shows the employees’ weekly
operation schedule consists of nine (9) hours daily from 8:00 am to 5:00 pm with
one (1) hour lunch break.

TABLE 194: BREAK TIME SCHEDULE
MORNING AFTERNOON
POSITION
8:00 - 9:00 9:00 - 10:00 10:00 - 11:00 11:00 - 12:00 12:00 - 1:00 1:00 - 2:00 2:00 - 3:00 3:00 - 4:00 4:00 - 5:00
General Manager
Chief Financial
Officer
Operations Manager
Production
Supervisor
Human Resource
Staff
Accountant
Quality Assurance
Officer
Chemical Engineer
Inventory Clerk
Maintenance Head
Sales and Marketing
Officer
Safety Officer
Promodizer
Utility Worker 1
Utility Worker 2
Security Guard 1
Security Guard 2
Driver 1
Driver 2
Production Worker 1
Production Worker 2
Production Worker 3
Production Worker 4
LEGEND:
Working Hrs
Lunch break
TABLE 195: WEEKLY TIME SCHEDULE OF EMPLOYEES
POSITION MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

General Manager 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Chief Financial
8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Officer
Operations Manager 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Production
8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Supervisor
Human Resource
8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Staff
Accountant 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Quality Assurance
8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Officer
Chemical Engineer 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Inventory Clerk 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Maintenance Head 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Sales and Marketing
8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Officer
Safety Officer 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Promodizer 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Utility Worker 1 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Utility Worker 2 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Security Guard 1 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Security Guard 2 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Driver 1 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Driver 2 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
Production Worker 1 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00
Production Worker 2 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00 8:00 - 5:00
Production Worker 3 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF 8:00 - 5:00
Production Worker 4 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 8:00 - 5:00 DAY-OFF
TABLE 196: GANTT CHART
DURATION (IN MONTHS)

ACTIVITIES
1 2 3 4 5 6 7 8 9 10 11 12 13
Conducting Feasibility Study
Securing Financial Funds
Leasehold Warehouse Negotiation
and Contract Agreement
Securing Permits and Licenses

Construction of Leasehold
Warehouse Improvement
Purchasing of Office Furniture &
Fixtures, Machines, Equipment,
and Materials
Installation of Machineries and
Equipment
Recruitment of Personnel
Training and Orientation of
Personnel
Start of Operation
The Lucid Pinnacle Manufacturing Company has prepared a Gantt Chart to have an overview of the project
timeline from conducting feasibility study to start of operation.

The Gantt chart has a project duration of 12 months. The first three months
are allotted for conducting feasibility study. In the fourth and fifth month are utilized
in securing financial funds. After having the necessary funds, the proponents will
secure the required permits and licenses which is done in the fifth to seventh month
of the project. The construction of leasehold warehouse improvement will start in
the sixth month and would be done at the tenth month as per the estimation of the
architect hired by the proponents. The purchasing of the office furniture and fixture,
machines, equipment, and materials will occur at the start of the eighth month of
the project. Considering the number of days, it would take to deliver all the
necessary machines and equipment, it will be done at the eleventh month of the
project. The recruitment of personnel would also start at the ninth month of the
project. Training and development of personnel shall take place in the following
month after the recruitment. In the final month of the project, the Lucid Pinnacle
Manufacturing Company will already start its operation.

LIST OF INSURANCES AND ITS FEES
The Lucid Pinnacle Manufacturing Company will acquire insurance as
businesses need insurance because it helps cover the costs associated with
property damage and liability claims. Without business insurance, business
owners may have to pay out-of-pocket for costly damages and legal claims against
their company. The monthly expense for insurance will be shown in the table
below.
TABLE 197: INSURANCE FEES
PARTICULARS AMOUNT
Affinity Insurance and Risk
₱ 32,000.00
Services Monthly
INTELLECTUAL PROPERTY RIGHT
The Lucid Pinnacle Manufacturing Company will acquire intellectual
property right, trademark, industrial design, and patent for the product Lucid
Timber Mahogany Liquid Wax.
Trademark
A trademark can be any word, phrase, symbol, design, or a combination of
these things that identifies your goods or services. It’s how customers recognize
you in the marketplace and distinguish you from your competitors. The table below
shows how much the company pays.

TABLE 198: TRADEMARK FEES
TYPE OF FEE AMOUNT IN PHP

Filing fee ₱ 2,592.00
Claim for Convention Priority ₱ 1,800.00
Claim of color, claim distinctiveness ₱ 600.00
Request for Priority Examination ₱ 6,240.00
Recordal Fee ₱ 840.00
Issuance of Certificate of Registration ₱ 1,200.00
Publication of Registration ₱ 960.00
TOTAL ₱ 14,232.00
Source: https://www.ipophil.gov.ph/services/schedule-of-fees/trademark-related-
fees/
Industrial Designs
The Intellectual Property Code of the Philippines defines an industrial
design as any composition of lines or colors or any three-dimensional form,
whether associated with lines or colors; provided that such composition or form
gives a special appearance to and can serve as pattern for an industrial product
or handicraft. Simply put, it is that aspect of a useful article which is ornamental or
aesthetic. Generally, industrial designs are important for handicrafts, jewelry,
mobile phones, packaging materials, furniture, electrical appliances, accessories,
boxes, architectural structures, and other products. It is important to protect an
industrial design because it enables the owner to prevent others from copying or
imitating the industrial design without his consent. He can also prevent parties from
importing, selling, manufacturing, or making products bearing his industrial design.

TABLE 199: INDUSTRIAL DESIGN FEES

Claims ₱ 240.00
Registrability Report ₱ 1,320.00
Issuance of Certification of Registration ₱ 1,200.00
TOTAL ₱ 6,360.00
Source: https://www.ipophil.gov.ph/industrial-design-filing/
Patent
A patent is used to restrict another party from creating, selling, or using an
invention without authorization. When people think about intellectual property
rights protection, patents are the most prevalent sort of intellectual property rights
that spring to mind. A Patent Owner has the full right to commercialize his/her/its
patent, including the right to acquire and sell the patent or give a license to the
invention to any third party on mutually agreed-upon conditions.
TABLE 200: PATENT FEES

Publication Fee ₱ 960.00
Issuance of Letters Patent Certificate ₱ 1,200.00
2nd Publication Fee ₱ 960.00
TOTAL ₱ 7,440.00
Source: https://www.ipophil.gov.ph/services/schedule-of-fees/patents/
LIST OF PERMITS AND LICENSES
The Lucid Pinnacle Manufacturing Company will secure permits
and licenses that are essential to the business for legal compliance. The following
permits and licenses and its fees are listed below.
TABLE 201: LIST OF PERMIT AND LICENSE FEES
PARTICULARS AMOUNT
Business Permit ₱ 500.00
Barangay Clearance ₱ 200.00
Bureau of Internal Revenue ₱ 1,360.00
Sanitary Permit ₱ 300.00
SEC ₱ 5,100.00
DTI ₱ 530.00
SSS ₱ 165.00
Pag-ibig ₱ 1,500.00
Phil-Health ₱ 350.00
LTO Registration ₱ 1,000.00
Mechanical Permit ₱ 6,000.00
Electrical Permit ₱ 2,380.00
Fire Safety Inspection ₱ 649.00
TOTAL ₱ 20,034.00
FINANCIAL ASPECT 342
SCOPE OF FINANCIAL ASPECT
 Introduction
 Project Cost
 Financial Notes
 Financial Schedule
 Projected Income Statement
 Income Statement Analysis
 Common-size Income Statement
 Projected Statement of Cash Flows
 Statement of Cash Flow Analysis
 Projected Balance Sheet
 Balance Sheet Analysis
 Common-size Balance Sheet
 Financial Ratios
 Payback Period
INTRODUCTION
Finance plays a role in the almost every business decision, from planning
and budgeting to cash flow management and capital structure, as well as risk and
cost control (Woodruff, 2019). In order to achieve goals, appropriate financial
planning must be followed to ensure that sufficient funds are available to meet the
requirements. Good financial management will assist your company in making
efficient use of resources, meeting stakeholder commitments, gaining a
competitive advantage, and preparing for long-term financial stability. Finance
pervades every aspect of a company's operations. Few decisions are taken
without the input of those in charge of finances.
The Lucid Pinnacle Manufacturing Company will provide the required funds to
accomplish the proposed " Lucid Timber Mahogany Liquid Wax". At this stage
of the investigation. The income statement, statement of cash flows, balance
sheet, and statement of change equity will all be discussed in this section. It also
includes a common-size income statement and common-size balance sheet. The
findings will serve as the foundation for proposals, which will include critical
information regarding the company's financial status and viability in the market.
EXECUTIVE SUMMARY
 The total project cost of Lucid Pinnacle Manufacturing Company is
Php 13,142,787.96.
 The form of business adopted by the company is “General Partnership”.
 The business has six partners with a Php 15,000,000 start-up capital.
 The calculation for the annual taxable income of the business is based on
the Republic Act No. 11534 otherwise known as the Corporate Recovery
and Tax Incentives for Enterprises (CREATE) in response to the COVID-
19 pandemic as a fiscal relief to domestic and foreign corporations doing
business in the Philippines. The new percentage calculation of tax is at
20% of the net income not exceeding Php 5,000,000.00 and total assets
not exceeding Php 100,000,000.00. While if the mentioned net income
and assets exceed, the percentage calculation of tax will be at 25%.

MAJOR ASSUMPTIONS
 The business has an operating cycle of 12 months calendar year.
 SSS, Phil-Health, and PAG-IBIG contributions will be based on the
monthly salaries of employees.
 The employees will only receive 1/12 of the 13th month pay on the year
2022.
 The prices of all materials, labor, and overhead needed shall increase
based on the calculated forecast of inflation rate.
 All pre-operating expenses will be used in the first year of operations.
 Upon computing the Estimated Project Cost, the cost of operating
expenses and direct materials is good for three (3) months.
 The form of business adopted by the company is “General Partnership”.
 The business has six partners with a Php 15,000,000 start-up capital.
TABLE 202: PROJECT COST
PARTICULARS NOTES AMOUNT

PRE-OPERATING EXPENSE
FEASIBILITY EXPENSE N1 ₱ 32,000.00
GRAND OPENING N17 ₱ 14,400.00
PERMITS AND LICENSES N20 ₱ 20,034.00
TRAINING COST N22 ₱ 30,000.00
INSURANCE EXPENSE N28 ₱ 96,000.00
INTELLECTUAL PROPERTY COST N29 ₱ 28,032.00
TOTAL ₱ 220,466.00
ASSETS
RENT EXPENSE ₱ 495,000.00
LEASEHOLD WAREHOUSE IMPROVEMENT N3 ₱ 2,227,225.00
PIPE AND VALVE SYSTEMS ₱ 203,177.26
MACHINES N10 ₱ 1,305,123.50
PRODUCTION EQUIPMENT N11 ₱ 1,383,588.00
DELIVERY TRUCK N12 ₱ 850,000.00
OFFICE FURNITURE AND FIXTURES N5 ₱ 499,356.00
SAFETY EQUIPMENT AND SIGNAGES N7 ₱ 12,302.12
SANITARY EQUIPMENT N8 ₱ 70,839.00
TOTAL ₱ 7,046,610.88
ESTIMATED WORKING CAPITAL
ADVERTISING COST N21 ₱ 377,322.00
OFFICE SUPPLIES N6 ₱ 1,657.25
SHIPPING COST OF MACHINERIES N26 ₱ 123,765.87
SHIPPING COST OF RAW MATERIALS (3 MONTH
N27 ₱ 386,253.44
ALLOCATION)
SANITARY MATERIALS N9 ₱ 7,249.94
UNIFORM AND ID EXPENSE N16 ₱ 11,000.00
SALARIES EXPENSE (3 MONTH ALLOCATION) N18 ₱ 1,251,957.55
SSS CONTRIBUTION (3 MONTH ALLOCATION) ₱ 259,450.50
PHIL-HEALTH CONTRIBUTION (3 MONTH
₱ 125,195.76
ALLOCATION)
PAG-IBIG CONTRIBUTION (3 MONTH ALLOCATION) ₱ 13,800.00
HOLIDAY PAY 2022 ₱ 71,095.84
UTILITIES EXPENSE (3 MONTH ALLOCATION) N15 ₱ 89,251.95
INDIRECT MATERIALS N14 ₱ 12,760.00
WASTE MANAGEMENT COST N23 ₱ 3,088.00
DIRECT MATERIAL PURCHASES (3 MONTH
N13 ₱ 3,017,588.13
ALLOCATION)
REPAIRS AND MAINTENANCE N19 ₱ 61,840.29
TRANSPORTATION EXPENSE N24 ₱ 62,434.56
TOTAL ₱ 5,875,711.08
GRAND TOTAL ₱ 13,142,787.96
The total project cost for Lucid Pinnacle Manufacturing Company sums
up to Php 13,142,787.96. The remaining Php 1,857,212.04 will serve as the
business’ excess funds or contingency budget.

TABLE 203: PROJECT FEASIBILITY COST
NOTE 1
PROJECT FEASIBILITY COST
PARTICULARS AMOUNT
HARDBOUND AND PRINT ₱ 1,000.00
PROFESSIONAL FEE ₱ 30,000.00
MISCELLANEOUS ₱ 1,000.00
TOTAL ₱ 32,000.00
TABLE 204: PARTNER’S CAPITAL
NOTE 2
PARTNER'S CAPITAL
NAME OF PARTNER AMOUNT
MATUNOG ₱ 2,000,000.00
MERCADO ₱ 2,000,000.00
RODRIGO ₱ 2,000,000.00
CAMILOTES ₱ 2,000,000.00
EMBALZADO ₱ 2,000,000.00
BERNAL ₱ 5,000,000.00
TOTAL ₱15,000,000.00
TABLE 205: LEASEHOLD WAREHOUSE IMPROVEMENT
NOTE 3
LEASEHOLD WAREHOUSE IMPROVEMENT
PARTICULARS AMOUNT
PRELIMINARIES ₱ 165,000.00
ARCHITECTURAL WORKS ₱ 715,000.00
STRUCTURAL WORKS ₱ 44,000.00
ELECTRICAL WORKS ₱ 206,250.00
PLUMBING WORKS ₱ 198,000.00
MECHANICAL WORKS ₱ 165,000.00
AUXILARY WORKS ₱ 220,000.00
CONTINGENCIES ₱ 171,325.00
OVERHEAD AND PROFIT ₱ 342,650.00
TOTAL ₱ 2,227,225.00
TABLE 206: RENT AND SECURITY DEPOSIT
NOTE 4
RENT AND SECURITY DEPOSIT
PARTICULARS AMOUNT
WAREHOUSE ₱ 495,000.00
TOTAL ₱ 495,000.00
TABLE 207: OFFICE FURNITURE AND FIXTURES
NOTE 5
OFFICE FURNITURE AND FIXTURES
PARTICULARS AMOUNT
Office Table ₱ 35,760.00
Plastic Table ₱ 11,000.00
Wooden Table ₱ 3,196.00
Office Chair ₱ 31,470.00
Chair ₱ 15,200.00
Projector ₱ 6,399.00
Projector Screen ₱ 4,300.00
Wall Clock ₱ 1,470.00
Water Dispenser ₱ 5,060.00
Exhaust Fan ₱ 1,077.00
Computers ₱ 239,800.00
CCTV ₱ 15,827.40
Biometric Scanner ₱ 2,950.00
Calculatr ₱ 6,400.00
Locker ₱ 15,800.00
Printer ₱ 11,847.00
Fluorescent Lamp ₱ 2,500.00
Filing Cabinet ₱ 22,400.00
Emergency Light ₱ 5,350.00
Standing Inverter Aircon ₱ 70,500.00
Industrial Wall Fan ₱ 9,200.00
TOTAL ₱ 517,506.40
TABLE 208: OFFICE SUPPLIES
NOTE 6
OFFICE SUPPLIES
PARTICULARS AMOUNT
Short Bond Paper ₱ 1,704.00
Long Bond Paper ₱ 1,440.00
Record Book 500 Pages ₱ 360.00
Ballpen ₱ 552.00
Scissors ₱ 90.00
Stapler ₱ 960.00
Stapler Wires ₱ 288.00
Pencil ₱ 60.00
Paper Clips ₱ 16.00
Ink Refill Set ₱ 1,185.00
Adhesive Tape ₱ 24.00
Masking Tape ₱ 34.00
Puncher ₱ 256.00
Highlighter ₱ 240.00
Long Folder ₱ 100.00
Short Folder ₱ 60.00
Ruler ₱ 50.00
Paper Fastener ₱ 80.00
Sharpener ₱ 10.00
TOTAL ₱ 7,509.00
TABLE 209: SAFETY EQUIPMENT AND SIGNAGES
NOTE 7
SAFETY EQUIPMENT AND SIGNAGES
PARTICULARS AMOUNT
Comfort Room Signages ₱ 499.00
Emergency and Safety Signages ₱ 2,577.12
1st Aid Kit ₱ 1,480.00
Fire Extinguisher ₱ 2,500.00
Fire Alarm ₱ 2,039.00
Smoke Detector ₱ 3,207.00
TOTAL ₱ 12,302.12
TABLE 210: SANITARY EQUIPMENT
NOTE 8
SANITARY EQUIPMENT
PARTICULARS AMOUNT
Handwash Basin ₱ 10,850.00
Toilet Bowl ₱ 20,995.00
Urinal ₱ 11,400.00
Sink ₱ 20,930.00
Faucet ₱ 6,664.00
TOTAL ₱ 70,839.00
TABLE 211: SANITARY MATERIALS
NOTE 9
SANITARY MATERIALS
PARTICULARS AMOUNT
Dustpan and Broom ₱ 1,325.00
Trash Bin ₱ 8,992.00
Trash Bag ₱ 500.00
Mop ₱ 3,800.00
Hand Soap ₱ 3,100.00
Alcohol ₱ 4,980.00
Detergent Powder ₱ 2,550.00
Disinfectant Foot Mat ₱ 258.00
Muriatic Acid ₱ 1,894.75
Albatross ₱ 1,600.00
TOTAL ₱ 28,999.75
TABLE 212: MACHINERIES
NOTE 10
MACHINERIES
PARTICULARS AMOUNT
₱ 340,293.00
Machine
Boiling Tank ₱ 342,832.50
₱ 198,081.00
Machine
Storage Cooling Tank ₱ 18,360.00
Chemical Storage Tank ₱ 17,776.50
Mixer Paint Machine ₱ 203,160.00
Paint Filling Machine ₱ 101,580.00
Ink Jet Code Printer ₱ 99,040.50
TOTAL ₱ 1,321,123.50
TABLE 213: PRODUCTION EQUIPMENT
NOTE 11
PRODUCTION EQUIPMENT
PARTICULARS AMOUNT
Conveyor Belt ₱ 60,948.00
Coating Adhesion Tester ₱ 101,580.00

Pallet Truck ₱ 13,700.00
Forklift ₱ 1,129,920.00
Industrial Rack ₱ 15,464.00
Pallet Rack Large ₱ 53,976.00
Industrial Weighing Scale ₱ 4,500.00
Packaging Tape ₱ 3,500.00
TOTAL ₱ 1,383,588.00
TABLE 214: DELIVERY TRUCK COST
NOTE 12
DELIVERY TRUCK
PARTICULARS AMOUNT
Mitsubishi Canter Close Van ₱ 850,000.00
TOTAL ₱ 850,000.00
TABLE 215: DIRECT MATERIALS (3-MONTH ALLOCATION)
NOTE 13
DIRECT MATERIALS (3-MONTH ALLOCATION)
PARTICULARS AMOUNT
Mahogany Bark ₱ 133,220.00
Polyurethane ₱ 1,627,974.47
Water ₱ 53,185.19
Metal Tin Can ₱ 1,161,575.97
Carton Box ₱ 41,632.50
TOTAL ₱ 3,017,588.13
TABLE 216: INDIRECT MATERIALS
NOTE 14
INDIRECT MATERIALS
PARTICULARS AMOUNT
Washable Hairnet ₱ 680.00
Industrial Boots ₱ 2,196.00
Chemical Resistant Apron ₱ 1,680.00
Chemical Resistant Gloves ₱ 3,120.00
Chemical Respirator Vapor
₱ 1,950.00
Gas Mask
Earmuffs ₱ 2,484.00
Empty Sack 50kg ₱ 650.00
TOTAL ₱ 12,760.00
TABLE 217: UTILITIES EXPENSE
NOTE 15
UTILITIES EXPENSE
PARTICULARS AMOUNT
Electricity ₱ 277,954.77
Water ₱ 46,665.00
Internet ₱ 32,388.00
TOTAL ₱ 357,007.77
TABLE 218: UNIFORM AND ID EXPENSE
NOTE 16
UNIFORM AND ID EXPENSE
PARTICULARS AMOUNT
Uniform ₱ 9,000.00
Identification Card ₱ 2,000.00
TOTAL ₱ 11,000.00
TABLE 219: GRAND OPENING
NOTE 17
GRAND OPENING EXPENSES
PARTICULARS AMOUNT
Opening Tarpaulin ₱ 700.00
Foods and Drinks ₱ 7,000.00
Priest ₱ 1,000.00
Offerings ₱ 500.00
Decorations ₱ 1,000.00
Ribbons and Scissors ₱ 200.00
Guest Speaker ₱ 1,000.00
Motorcade (20 riders) ₱ 3,000.00
TOTAL ₱ 14,400.00
TABLE 220: SALARIES AND WAGES
NOTE 18
POSITION 2022 2023 2024 2025 2026
General Manager ₱ 95,153.67 ₱ 393,174.96 ₱ 406,936.08 ₱ 422,399.65 ₱ 437,606.04
Accountant ₱ 64,157.84 ₱ 265,100.20 ₱ 274,378.71 ₱ 284,805.10 ₱ 295,058.08
Quality assurance officer ₱ 54,515.92 ₱ 225,259.78 ₱ 233,143.87 ₱ 242,003.34 ₱ 250,715.46
Inventory clerk ₱ 54,808.98 ₱ 226,470.69 ₱ 234,397.16 ₱ 243,304.25 ₱ 252,063.21
Safety officer ₱ 56,402.12 ₱ 233,053.56 ₱ 241,210.43 ₱ 250,376.43 ₱ 259,389.98
Promodizer ₱ 47,816.69 ₱ 197,578.57 ₱ 204,493.82 ₱ 212,264.59 ₱ 219,906.11
Utility worker 1 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Utility worker 2 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Security Guard 1 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Security Guard 2 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Driver 1 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Driver 2 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
TOTAL ₱ 1,251,957.55 ₱ 5,173,088.61 ₱ 5,354,146.71 ₱ 5,557,604.28 ₱ 5,757,678.04
TABLE 221: REPAIRS AND MAINTENANCE
NOTE 19
REPAIRS AND MAINTENANCE
PARTICULARS AMOUNT
₱ 32,089.63
Machine
Boiling Tank ₱ 14,933.78
₱ 11,156.52
Machine
Storage Cooling Tank ₱ 1,421.29
Chemical Storage Tank ₱ 1,621.75
Mixer Paint Machine ₱ 25,147.14
Paint Filling Machine ₱ 9,473.05
Ink Jet Code Printer ₱ 7,168.55
Conveyor Belt ₱ 9,220.21
Coating Adhesion Tester ₱ 3,531.02
Pallet Truck ₱ 327.29
Forklift ₱ 43,422.83
Industrial Rack ₱ 259.49
Pallet Rack Large ₱ 1,263.58
Industrial Weighing Scale ₱ 170.28
Computer ₱ 10,179.51
CCTV ₱ 379.54
Printer ₱ 283.62
Aircon ₱ 6,283.17
Biometric Scanner ₱ 246.03
Delivery Truck ₱ 68,782.85
TOTAL ₱ 247,361.13
TABLE 222: PERMITS AND LICENSES
NOTE 20
PERMITS AND LICENSES
PARTICULARS AMOUNT
BUSINESS PERMIT ₱ 500.00
BARANGAY CLEARANCE ₱ 200.00
BUREAU OF INTERNAL REVENUE ₱ 1,360.00

SANITARY PERMIT ₱ 300.00
SEC ₱ 5,100.00
DTI ₱ 530.00
SSS ₱ 165.00
PAG-IBIG ₱ 1,500.00
PHIL HEALTH ₱ 350.00
LTO REGISTRATION ₱ 1,000.00
MECHANICAL PERMIT ₱ 6,000.00
ELECTRICAL PERMIT ₱ 2,380.00
FIRE SAFETY INSPECTION ₱ 649.00
TOTAL ₱ 20,034.00
TABLE 223: ADVERTISING EXPENSE
NOTE 21
ADVERTISING EXPENSE
PARTICULARS AMOUNT
YOUTUBE ₱ 91,800.00
FACEBOOK ₱ 9,180.00
INSTAGRAM ₱ 4,590.00
E-BILLBOARD ₱ 105,000.00
RADIO COMMERCIAL ₱ 90,000.00
NEWSPAPER AD ₱ 76,752.00
TOTAL ₱ 377,322.00
TABLE 224: TRAINING COST
NOTE 22
TRAINING COST
PARTICULARS AMOUNT
BASIC OCCUPATIONAL
₱ 30,000.00
SAFETY AND HEALTH
TOTAL ₱ 30,000.00
TABLE 225: WASTE MANAGEMENT COST
NOTE 23
WASTE MANAGEMENT EXPENSE
PARTICULARS AMOUNT
WASTE MANAGEMENT
₱ 3,088.00
SERVICE
TOTAL ₱ 3,088.00
TABLE 226: TRANSPORTATION EXPENSE
NOTE 24
PARTICULARS AMOUNT
TRAVEL GASOLINE COST ₱ 53,074.56
TRANSPORTATION
₱ 9,360.00
ALLOWANCE
TOTAL ₱ 62,434.56
TABLE 227: OTHER INCOME
NOTE 25
OTHER INCOME
PARTICULARS AMOUNT
CANTEEN ANNUAL RENT ₱ 72,000.00
TOTAL ₱ 72,000.00
TABLE 228: SHIPMENT COST CONTAINERIZED CARGO
NOTE 26
TOTAL
CUSTOM
PARTICULARS PRICE SEA COST CHARGES SHIPMENT
DUTIES
COST
₱ 340,293.00 ₱ 40,835.16 ₱ 40,835.16
Machine
Boiling Tank ₱ 342,832.50 ₱ 41,139.90 ₱ 41,139.90
₱ 198,081.00 ₱ 23,769.72 ₱ 23,769.72
Machine
Chemical Storage Tank With ₱ 123,765.87
₱ 17,776.50 ₱ 2,133.18 ₱ 2,133.18
Wheels
Mixer Paint Machine ₱ 101,580.00 ₱ 12,189.60 ₱ 12,189.60
Ink Jet Code Printer ₱ 99,040.50 ₱ 11,884.86 ₱ 11,884.86
Conveyor Belt ₱ 60,948.00 ₱ 7,313.76 ₱ 7,313.76
Coating Adhesion Tester ₱ 101,580.00 ₱ 12,189.60 ₱ 12,189.60
Total Shipping Cost (Machine Price Excluded) ₱ 275,221.65
TABLE 229: SHIPMENT COST NON-CONTAINERIZED CARGO
NOTE 27
PRICE PER ANNUAL NO. CUSTOM TOTAL ANNUAL
PARTICULARS SEA COST CHARGES
ORDER OF ORDERS DUTIES SHIPMENT COST
Metal Tin Can 1 L ₱ 119,178.95 ₱ 116,891.87 38 ₱ 14,301.47 ₱ 660,347.88
Polyurethane ₱ 255,744.00 ₱ 117,433.87 25 ₱ 30,689.28 ₱ 884,665.87
Total Shipping Cost ₱ 1,545,013.75
TABLE 230: INSURANCE EXPENSE
NOTE 28
INSURANCE EXPENSE
PARTICULARS AMOUNT
AFFINITY INSURANCE AND
₱ 96,000.00
RISK SERVICES
TOTAL ₱ 96,000.00
TABLE 231: INTELLECTUAL PROPERTY RIGHT COSTS
NOTE 29
INTELLECTUAL PROPERTY RIGHT COSTS
PARTICULARS AMOUNT
TRADEMARK FEES ₱ 14,232.00
INDUSTRIAL DESIGN FEES ₱ 6,360.00
PATENT FEES ₱ 7,440.00
TOTAL ₱ 28,032.00
TABLE 232: SALES
SCHEDULE 1
ASSUMPTION EFFECTIVE SELLING UNITS
YEAR SALES
SALES IN % CAPACITY PRICE SOLD
2022 79% 66,609 ₱ 109.00 52,621 ₱ 5,735,700.99
2023 84% 275,574 ₱ 112.60 231,482 ₱ 26,064,891.22
2024 87% 285,585 ₱ 116.54 248,459 ₱ 28,955,406.03
2025 88% 292,800 ₱ 120.97 257,664 ₱ 31,169,614.08
2026 90% 299,315 ₱ 125.33 269,384 ₱ 33,761,834.06
TABLE 233: COST OF GOODS SOLD
SCHEDULE 2
COST OF GOODS SOLD
PARTICULARS S/N 2022 2023 2024 2025 2026
Raw Materials, Beginning - ₱ 618,408.59 ₱ 2,677,624.45 ₱ 3,267,702.37 ₱ 3,513,807.60
Add: Raw Materials Purchased S4 ₱ 2,930,709.00 ₱ 12,140,425.00 ₱ 12,630,863.00 ₱ 12,951,550.00 ₱ 13,239,983.00
Total Raw Materials ₱ 2,930,709.00 ₱ 12,758,833.59 ₱ 15,308,487.45 ₱ 16,219,252.37 ₱ 16,753,790.60
Raw Materials, Ending S5 ₱ 618,408.59 ₱ 2,677,624.45 ₱ 3,267,702.37 ₱ 3,513,807.60 ₱ 3,671,714.03
Total Direct Materials Used ₱ 2,312,300.41 ₱ 9,462,800.55 ₱ 9,363,160.63 ₱ 9,437,742.40 ₱ 9,568,268.97
Direct Labor S6 ₱ 150,821.28 ₱ 623,193.52 ₱ 645,005.32 ₱ 669,515.52 ₱ 693,618.08
Manufacturing Overhead
Indirect Labor S7 ₱ 1,101,136.27 ₱ 4,549,895.08 ₱ 4,709,141.40 ₱ 4,888,088.78 ₱ 5,064,059.97
Utilities S8 ₱ 140,594.59 ₱ 367,720.22 ₱ 379,456.85 ₱ 392,645.47 ₱ 405,614.74
Depreciation - Machine & Production
S21 ₱ 67,217.70 ₱ 268,870.80 ₱ 268,870.80 ₱ 268,870.80 ₱ 268,870.80
Equipment
Rent S9 ₱ 495,000.00 ₱ 2,039,400.00 ₱ 2,110,779.00 ₱ 2,190,988.60 ₱ 2,269,864.19
Indirect Materials S10 ₱ 12,760.00 ₱ 13,181.08 ₱ 13,642.42 ₱ 14,160.83 ₱ 14,670.62
Total Manufacturing Overhead Cost ₱ 1,816,708.56 ₱ 7,239,067.18 ₱ 7,481,890.47 ₱ 7,754,754.48 ₱ 8,023,080.32
Total Cost of Goods Manufactured ₱ 2,463,121.69 ₱ 10,085,994.07 ₱ 10,008,165.95 ₱ 10,107,257.92 ₱ 10,261,887.05
Finished Goods, Beginning Inventory - ₱ 517,255.55 ₱ 1,696,519.94 ₱ 1,521,609.17 ₱ 1,395,464.05
Total Goods Available for Sale ₱ 2,463,121.69 ₱ 10,603,249.62 ₱ 11,704,685.89 ₱ 11,628,867.09 ₱ 11,657,351.10
Finished Goods, Ending Inventory ₱ 517,255.55 ₱ 1,696,519.94 ₱ 1,521,609.17 ₱ 1,395,464.05 ₱ 1,165,735.11
Cost of Goods Sold ₱ 1,945,866.14 ₱ 8,906,729.68 ₱ 10,183,076.72 ₱ 10,233,403.04 ₱ 10,491,615.99
TABLE 234: OPERATING EXPENSES
SCHEDULE 3
OPERATING EXPENSES
PARTICULARS S/N 2022 2023 2024 2025 2026
Permits and Licenses S11 ₱ 20,034.00 ₱ 12,038.58 ₱ 12,459.93 ₱ 12,933.41 ₱ 13,399.01
Insurance Expense S12 ₱ 96,000.00 ₱ 395,520.00 ₱ 409,363.20 ₱ 424,919.00 ₱ 440,216.09
Advertising Expense S13 ₱ 377,322.00 ₱ 388,641.66 ₱ 402,244.12 ₱ 417,529.39 ₱ 432,560.45
Utilities Expense S8 ₱ 140,594.59 ₱ 367,720.22 ₱ 379,456.85 ₱ 392,645.47 ₱ 405,614.74
Repairs and Maintenance S14 ₱ 61,840.29 ₱ 255,524.05 ₱ 264,467.39 ₱ 274,517.15 ₱ 284,399.77
Sanitary Materials S15 ₱ 7,249.94 ₱ 29,956.75 ₱ 31,005.24 ₱ 32,183.44 ₱ 33,342.04
Office Supplies S16 ₱ 1,657.25 ₱ 6,847.76 ₱ 7,087.43 ₱ 7,356.75 ₱ 7,621.59
Indirect Labor S7 ₱ 1,101,136.27 ₱ 4,549,895.08 ₱ 4,709,141.40 ₱ 4,888,088.78 ₱ 5,064,059.97
13th Month Pay S17 ₱ 33,535.81 ₱ 431,090.72 ₱ 446,178.89 ₱ 463,133.69 ₱ 479,806.50
SSS Contribution S18 ₱ 187,617.00 ₱ 409,290.00 ₱ 425,610.00 ₱ 437,340.00 ₱ 450,090.00
Phil-Health Contribution S19 ₱ 25,039.15 ₱ 116,394.49 ₱ 133,853.67 ₱ 138,940.11 ₱ 158,336.15
Pag-ibig Contribution S20 ₱ 6,900.00 ₱ 27,600.00 ₱ 27,600.00 ₱ 27,600.00 ₱ 27,600.00
Holiday Pay S21 ₱ 71,095.84 ₱ 239,723.12 ₱ 248,113.43 ₱ 25,751.74 ₱ 266,813.25
Depreciation Leasehold
S22 ₱ 37,120.25 ₱ 148,481.00 ₱ 148,481.00 ₱ 148,481.00 ₱ 148,481.00
Warehouse Improvement
Delivery Equipment S22 ₱ 30,357.14 ₱ 121,428.57 ₱ 121,428.57 ₱ 121,428.57 ₱ 121,428.57
Machineries S22 ₱ 32,628.00 ₱ 130,512.00 ₱ 130,512.00 ₱ 130,512.00 ₱ 130,512.00
Production Equipment S22 ₱ 34,589.70 ₱ 138,358.80 ₱ 138,358.80 ₱ 138,358.80 ₱ 138,358.80
Safety and Signages
S22 ₱ 439.36 ₱ 1,757.45 ₱ 1,757.45 ₱ 1,757.45 ₱ 1,757.45
Equipment
Office Furniture and
S22 ₱ 17,477.46 ₱ 69,909.84 ₱ 69,909.84 ₱ 69,909.84 ₱ 69,909.84
Fixtures
Santiary Equipment S22 ₱ 1,770.98 ₱ 7,083.90 ₱ 7,083.90 ₱ 7,083.90 ₱ 7,083.90
TOTAL OPERATING
₱ 2,284,405.03 ₱ 7,847,773.99 ₱ 8,114,113.12 ₱ 8,160,470.49 ₱ 8,681,391.12
EXPENSES
TABLE 235: RAW MATERIAL PURCHASES
SCHEDULE 4
RAW MATERIALS PURCHASES
PARTICULARS S/N 2022 2023 2024 2025 2026
MAHOGANY BARK
Effective Capacity 6,661 27,558 28,559 29,280 29,932
Add: Desired Raw Materials Inventory End 46 191 197 203 208
Total Raw Materials Purchases 6,707 27,749 28,756 29,483 30,140
Multiply by Cost ₱ 20.00 ₱ 20.00 ₱ 20.00 ₱ 20.00 ₱ 20.00
Raw Materials Purchases ₱ 134,140.00 ₱ 554,980.00 ₱ 575,120.00 ₱ 589,660.00 ₱ 602,800.00
POLYURETHANE
Multiply by Cost ₱ 96.00 ₱ 96.00 ₱ 96.00 ₱ 96.00 ₱ 96.00
Raw Materials Purchases ₱ 1,614,240.00 ₱ 6,693,984.00 ₱ 6,986,592.00 ₱ 7,164,672.00 ₱ 7,324,320.00
METAL TIN CAN
Effective Capacity S1 66,609 275,574 285,585 292,800 299,315
Add: Desired Raw Materials Inventory End 463 1,914 1,983 2,034 2,079
Multiply by Cost ₱ 17.00 ₱ 17.00 ₱ 17.00 ₱ 17.00 ₱ 17.00
Raw Materials Purchases ₱ 1,140,224.00 ₱ 4,717,296.00 ₱ 4,888,656.00 ₱ 5,012,178.00 ₱ 5,123,698.00
CARTON BOX
Multiply by Cost ₱ 15.00 ₱ 15.00 ₱ 15.00 ₱ 15.00 ₱ 15.00
Raw Materials Purchases ₱ 42,105.00 ₱ 174,165.00 ₱ 180,495.00 ₱ 185,040.00 ₱ 189,165.00
TOTAL RAW MATERIALS PURCHASES ₱ 2,930,709.00 ₱ 12,140,425.00 ₱ 12,630,863.00 ₱ 12,951,550.00 ₱ 13,239,983.00

TABLE 236: RAW MATERIALS INVENTORY MAHOGANY BARK
SCHEDULE 5
RAW MATERIALS INVENTORY
PARTICULARS S/N 2022 2023 2024 2025 2026
MAHOGANY BARK
Beginning - 1,444 6,044 9,954 13,670
Add: Raw Material Purchases 6,707 27,749 28,756 29,483 30,140
Total Raw Materials Available 6,707 29,193 34,800 39,437 43,810
Less: Raw Materials Needed in Production 5,263 23,149 24,846 25,767 26,939
Raw Materials Ending 1,444 6,044 9,954 13,670 16,871
Unit Cost ₱ 20.00 ₱ 20.00 ₱ 20.00 ₱ 20.00 ₱ 20.00
Raw Materials End Cost ₱ 28,880.00 ₱ 120,880.00 ₱ 199,080.00 ₱ 273,400.00 ₱ 337,420.00
TABLE 237: RAW MATERIALS INVENTORY POLYURETHANE
POLYURETHANE
Beginning 3,531 15,385 18,514 19,561
Unit Cost ₱ 96.00 ₱ 96.00 ₱ 96.00 ₱ 96.00 ₱ 96.00
Raw Materials End Cost ₱ 338,990.40 ₱ 1,476,924.62 ₱ 1,777,338.49 ₱ 1,877,822.20 ₱ 1,932,449.86
TABLE 238: RAW MATERIALS INVENTORY METAL TIN CAN
METAL TIN CAN

Beginning 14,217 61,258 73,253 77,298
Unit Cost ₱ 17.00 ₱ 17.00 ₱ 17.00 ₱ 17.00 ₱ 17.00
Raw Materials End Cost ₱ 241,696.14 ₱ 1,041,388.35 ₱ 1,245,309.31 ₱ 1,314,072.34 ₱ 1,351,931.77
TABLE 239: RAW MATERIALS INVENTORY CARTON BOXES AND TOTAL RAW MATERIALS ENDING
CARTON BOXES
Beginning 589 2,562 3,065 3,234
Raw Materials Ending 589 2,562 3,065 3,234 3,327
Unit Cost ₱ 15.00 ₱ 15.00 ₱ 15.00 ₱ 15.00 ₱ 15.00
Raw Materials End Cost ₱ 8,842.05 ₱ 38,431.48 ₱ 45,974.56 ₱ 48,513.06 ₱ 49,912.39
TOTAL RAW MATERIALS END ₱ 618,408.59 ₱ 2,677,624.45 ₱ 3,267,702.37 ₱ 3,513,807.60 ₱ 3,671,714.03
TABLE 240: DIRECT LABOR SALARY
SCHEDULE 6
DIRECT LABOR
MONTHLY NO. OF
PARTICULARS 2022 2023 2024 2025 2026
SALARY WORKERS
PERCENT INCREASE 3.7% 3.3% 3.5% 3.8% 3.6%
PRODUCTION WORKER ₱ 12,120.00 4 ₱ 150,821.28 ₱ 623,193.52 ₱ 645,005.32 ₱ 669,515.52 ₱ 693,618.08
TOTAL ₱ 150,821.28 ₱ 623,193.52 ₱ 645,005.32 ₱ 669,515.52 ₱ 693,618.08
TABLE 241: INDIRECT LABOR SALARY
SCHEDULE 7
INDIRECT LABOR
Position BASIS FOR SALARY 2022 2023 2024 2025 2026
General Manager ₱ 30,586.20 ₱ 95,153.67 ₱ 393,174.96 ₱ 406,936.08 ₱ 422,399.65 ₱ 437,606.04
Chief Financial Officer ₱ 27,112.80 ₱ 84,347.92 ₱ 348,525.61 ₱ 360,724.01 ₱ 374,431.52 ₱ 387,911.05
Operations Manager ₱ 26,237.40 ₱ 81,624.55 ₱ 337,272.65 ₱ 349,077.19 ₱ 362,342.12 ₱ 375,386.44
Production Supervisor ₱ 20,570.10 ₱ 63,993.58 ₱ 264,421.48 ₱ 273,676.23 ₱ 284,075.93 ₱ 294,302.66
Human Resource Staff ₱ 21,073.50 ₱ 65,559.66 ₱ 270,892.51 ₱ 280,373.75 ₱ 291,027.95 ₱ 301,504.96
Accountant ₱ 20,622.90 ₱ 64,157.84 ₱ 265,100.20 ₱ 274,378.71 ₱ 284,805.10 ₱ 295,058.08
Quality Assurance Officer ₱ 17,523.60 ₱ 54,515.92 ₱ 225,259.78 ₱ 233,143.87 ₱ 242,003.34 ₱ 250,715.46
Chemical Engineer ₱ 27,314.10 ₱ 84,974.17 ₱ 351,113.25 ₱ 363,402.21 ₱ 377,211.50 ₱ 390,791.11
Inventory Clerk ₱ 17,617.80 ₱ 54,808.98 ₱ 226,470.69 ₱ 234,397.16 ₱ 243,304.25 ₱ 252,063.21
Maintenance Head ₱ 19,437.90 ₱ 60,471.31 ₱ 249,867.44 ₱ 258,612.80 ₱ 268,440.09 ₱ 278,103.93
Sales and Marketing Officer ₱ 19,632.90 ₱ 61,077.95 ₱ 252,374.10 ₱ 261,207.19 ₱ 271,133.06 ₱ 280,893.85
Safety Officer ₱ 18,129.90 ₱ 56,402.12 ₱ 233,053.56 ₱ 241,210.43 ₱ 250,376.43 ₱ 259,389.98
Promodizer ₱ 15,370.20 ₱ 47,816.69 ₱ 197,578.57 ₱ 204,493.82 ₱ 212,264.59 ₱ 219,906.11
Utility Worker 1 ₱ 12,120.00 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Utility Worker 2 ₱ 12,120.00 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Security Guard 1 ₱ 12,120.00 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Security Guard 2 ₱ 12,120.00 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Driver 1 ₱ 12,120.00 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
Driver 2 ₱ 12,120.00 ₱ 37,705.32 ₱ 155,798.38 ₱ 161,251.33 ₱ 167,378.88 ₱ 173,404.52
TOTAL ₱ 1,101,136.27 ₱ 4,549,895.08 ₱ 4,709,141.40 ₱ 4,888,088.78 ₱ 5,064,059.97
TABLE 242: UTILITIES EXPENSE
SCHEDULE 8
UTILITIES
PARTICULARS 2022 2023 2024 2025 2026
WATER CONSUMPTION ₱ 15,555.00 ₱ 48,204.95 ₱ 49,892.12 ₱ 51,788.02 ₱ 53,652.39
ELECTRICITY CONSUMPTION ₱ 92,651.59 ₱ 287,127.28 ₱ 297,176.73 ₱ 308,469.45 ₱ 319,574.35
INTERNET COST ₱ 32,388.00 ₱ 32,388.00 ₱ 32,388.00 ₱ 32,388.00 ₱ 32,388.00
TOTAL UTILITIES COST ₱ 140,594.59 ₱ 367,720.22 ₱ 379,456.85 ₱ 392,645.47 ₱ 405,614.74
TABLE 243: RENT EXPENSE
SCHEDULE 9
RENT EXPENSE
PARTICULARS 2022 2023 2024 2025 2026
WAREHOUSE RENT ₱ 495,000.00 ₱2,039,400.00 ₱2,110,779.00 ₱2,190,988.60 ₱2,269,864.19
TOTAL ₱ 495,000.00 ₱2,039,400.00 ₱2,110,779.00 ₱2,190,988.60 ₱2,269,864.19
TABLE 244: INDIRECT MATERIAL EXPENSE
SCHEDULE 10
INDIRECT MATERIALS
PARTICULARS 2022 2023 2024 2025 2026
WASHABLE HAIRNET ₱ 680.00 ₱ 702.44 ₱ 727.03 ₱ 754.65 ₱ 781.82
INDUSTRIAL BOOTS ₱ 2,196.00 ₱ 2,268.47 ₱ 2,347.86 ₱ 2,437.08 ₱ 2,524.82
CHEMICAL RESISTANT
₱ 1,680.00 ₱ 1,735.44 ₱ 1,796.18 ₱ 1,864.44 ₱ 1,931.55
GLOVES
CHEMICAL RESISTANT APRON ₱ 3,120.00 ₱ 3,222.96 ₱ 3,335.76 ₱ 3,462.52 ₱ 3,587.17
CHEMICAL RESPIRATOR
₱ 1,950.00 ₱ 2,014.35 ₱ 2,084.85 ₱ 2,164.08 ₱ 2,241.98
VAPOR GAS MASK
EARMUFFS ₱ 2,484.00 ₱ 2,565.97 ₱ 2,655.78 ₱ 2,756.70 ₱ 2,855.94
EMPTY SACK ₱ 650.00 ₱ 671.45 ₱ 694.95 ₱ 721.36 ₱ 747.33
TOTAL ₱ 12,760.00 ₱ 13,181.08 ₱ 13,642.42 ₱ 14,160.83 ₱ 14,670.62
TABLE 245: PERMIT AND LICENSES
SCHEDULE 11
PERMITS AND LICENSES
PARTICULARS 2022 2023 2024 2025 2026
BUSINESS PERMIT ₱ 500.00 ₱ 516.50 ₱ 534.58 ₱ 554.89 ₱ 574.87
BARANGAY CLEARANCE ₱ 200.00 ₱ 206.60 ₱ 213.83 ₱ 221.96 ₱ 229.95
BUREAU OF INTERNAL
₱ 1,360.00 ₱ 1,404.88 ₱ 1,454.05 ₱ 1,509.30 ₱ 1,563.64
REVENUE
SANITARY PERMIT ₱ 300.00 ₱ 309.90 ₱ 320.75 ₱ 332.93 ₱ 344.92
SEC ₱ 5,100.00 ₱ 5,268.30 ₱ 5,452.69 ₱ 5,659.89 ₱ 5,863.65
DTI ₱ 530.00 ₱ 547.49 ₱ 566.65 ₱ 588.18 ₱ 609.36
SSS ₱ 165.00 ₱ 170.45 ₱ 176.41 ₱ 183.11 ₱ 189.71
PAG-IBIG ₱ 1,500.00 ₱ 1,549.50 ₱ 1,603.73 ₱ 1,664.67 ₱ 1,724.60
PHIL-HEALTH ₱ 350.00 ₱ 361.55 ₱ 374.20 ₱ 388.42 ₱ 402.41
LTO-REGISTRATION ₱ 1,000.00 ₱ 1,033.00 ₱ 1,069.16 ₱ 1,109.78 ₱ 1,149.74
MECHINICAL PERMIT ₱ 6,000.00
ELECTRICAL PERMIT ₱ 2,380.00
FIRE SAFETY INSPECTION ₱ 649.00 ₱ 670.42 ₱ 693.88 ₱ 720.25 ₱ 746.18
TOTAL ₱ 20,034.00 ₱ 12,038.58 ₱ 12,459.93 ₱ 12,933.41 ₱ 13,399.01
TABLE 246: INSURANCE EXPENSE
SCHEDULE 12
INSURANCE EXPENSE
PARTICULARS 2022 2023 2024 2025 2026
AFFINITY INSURANCE AND
₱ 96,000.00 ₱ 395,520.00 ₱ 409,363.20 ₱ 424,919.00 ₱ 440,216.09
RISK SERVICES
TOTAL ₱ 96,000.00 ₱ 395,520.00 ₱ 409,363.20 ₱ 424,919.00 ₱ 440,216.09
TABLE 247: ADVERTISING EXPENSES
SCHEDULE 13
ADVERTISING EXPENSE
PARTICULARS 2022 2023 2024 2025 2026
FACEBOOK AD ₱ 9,180.00 ₱ 9,455.40 ₱ 9,786.34 ₱ 10,158.22 ₱ 10,523.92
YOUTUBE AD ₱ 91,800.00 ₱ 94,554.00 ₱ 97,863.39 ₱ 101,582.20 ₱ 105,239.16
INSTAGRAM AD ₱ 4,590.00 ₱ 4,727.70 ₱ 4,893.17 ₱ 5,079.11 ₱ 5,261.96
E-BILLBOARD ₱ 105,000.00 ₱ 108,150.00 ₱ 111,935.25 ₱ 116,188.79 ₱ 120,371.59
RADIO COMMERCIAL 101.1 FM ₱ 90,000.00 ₱ 92,700.00 ₱ 95,944.50 ₱ 99,590.39 ₱ 103,175.65
NEWSPAPER FREEMAN ₱ 76,752.00 ₱ 79,054.56 ₱ 81,821.47 ₱ 84,930.69 ₱ 87,988.19
TOTAL ₱ 377,322.00 ₱ 388,641.66 ₱ 402,244.12 ₱ 417,529.39 ₱ 432,560.45
TABLE 248: REPAIRS AND MAINTENANCE COST
SCHEDULE 14
REPAIRS AND MAINTENANCE EXPENSE
PARTICULARS 2022 2023 2024 2025 2026

N19 ₱ 61,840.29 ₱ 255,524.05 ₱ 264,467.39 ₱ 274,517.15 ₱ 284,399.77
TOTAL ₱ 61,840.29 ₱ 255,524.05 ₱ 264,467.39 ₱ 274,517.15 ₱ 284,399.77
TABLE 249: SANITARY MATERIALS EXPENSE
SCHEDULE 15
SANITARY MATERIALS EXPENSE
NOTE 2022 2023 2024 2025 2026
N9 ₱ 7,249.94 ₱ 29,956.75 ₱ 31,005.24 ₱ 32,183.44 ₱ 33,342.04
TABLE 250: OFFICE SUPPLIES
SCHEDULE 16
OFFICE SUPPLIES
NOTE 2022 2023 2024 2025 2026
N6 ₱ 1,657.25 ₱ 6,847.76 ₱ 7,087.43 ₱ 7,356.75 ₱ 7,621.59
TABLE 251: 13TH MONTH PAY
SCHEDULE 17
13TH MONTH PAY
POSITION 2022 2023 2024 2025 2026
General Manager ₱ 2,548.85 ₱ 32,764.58 ₱ 33,911.34 ₱ 35,199.97 ₱ 36,467.17
Production Supervisor ₱ 1,714.18 ₱ 22,035.12 ₱ 22,806.35 ₱ 23,672.99 ₱ 24,525.22
Human Resource Staff ₱ 1,756.13 ₱ 22,574.38 ₱ 23,364.48 ₱ 24,252.33 ₱ 25,125.41
Accountant ₱ 1,718.58 ₱ 22,091.68 ₱ 22,864.89 ₱ 23,733.76 ₱ 24,588.17
Quality Assurance Officer ₱ 1,460.30 ₱ 18,771.65 ₱ 19,428.66 ₱ 20,166.94 ₱ 20,892.95
Inventory clerk ₱ 1,468.15 ₱ 18,872.56 ₱ 19,533.10 ₱ 20,275.35 ₱ 21,005.27
Safety Officer ₱ 1,510.83 ₱ 19,421.13 ₱ 20,100.87 ₱ 20,864.70 ₱ 21,615.83
Promodizer ₱ 1,280.85 ₱ 16,464.88 ₱ 17,041.15 ₱ 17,688.72 ₱ 18,325.51
Utility worker 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Utility worker 2 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Security Guard 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Security Guard 2 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Driver 1 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
Driver 2 ₱ 1,010.00 ₱ 12,983.20 ₱ 13,437.61 ₱ 13,948.24 ₱ 14,450.38
TOTAL ₱ 33,535.81 ₱ 431,090.72 ₱ 446,178.89 ₱ 463,133.69 ₱ 479,806.50
SCHEDULE 18.1
SSS CONTRIBUTION 2022
TOTAL
General Manager ₱ 31,717.89 ₱ 1,125.00 ₱ 3,375.00 ₱ 2,155.00 ₱ 6,465.00
Accountant ₱ 21,385.95 ₱ 922.50 ₱ 2,767.50 ₱ 1,772.50 ₱ 5,317.00
Inventory clerk ₱ 18,269.66 ₱ 787.50 ₱ 2,362.50 ₱ 1,517.50 ₱ 4,552.50
Safety officer ₱ 18,800.71 ₱ 810.00 ₱ 2,430.00 ₱ 1,560.00 ₱ 4,680.00
₱ 202,930.50
Promodizer ₱ 15,938.90 ₱ 679.50 ₱ 2,038.50 ₱ 1,347.50 ₱ 4,042.50
Utility worker 1 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Utility worker 2 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Security Guard 1 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Security Guard 2 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Driver 1 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Driver 2 ₱ 12,568.44 ₱ 540.00 ₱ 1,620.00 ₱ 1,030.00 ₱ 3,090.00
Total ₱ 417,319.18 ₱ 17,464.50 ₱ 52,393.50 ₱ 33,512.50 ₱ 150,537.00
SCHEDULE 18.2
TOTAL
General Manager ₱ 32,764.58 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Accountant ₱ 22,091.68 ₱ 967.50 ₱ 11,610.00 ₱ 1,857.50 ₱ 22,290.00
Inventory clerk ₱ 18,872.56 ₱ 810.00 ₱ 9,720.00 ₱ 1,560.00 ₱ 18,720.00
Safety officer ₱ 19,421.13 ₱ 832.50 ₱ 9,990.00 ₱ 1,602.50 ₱ 19,230.00
₱ 622,860.00
Promodizer ₱ 16,464.88 ₱ 720.00 ₱ 8,640.00 ₱ 1,390.00 ₱ 16,680.00
Utility worker 1 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Utility worker 2 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Security Guard 1 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Security Guard 2 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Driver 1 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
Driver 2 ₱ 12,983.20 ₱ 540.00 ₱ 6,480.00 ₱ 1,030.00 ₱ 12,360.00
TOTAL ₱ 431,090.72 ₱ 17,797.50 ₱ 213,570.00 ₱ 34,107.50 ₱ 409,290.00
SCHEDULE 18.3
TOTAL
General Manager ₱ 33,911.34 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Accountant ₱ 22,864.89 ₱ 990.00 ₱ 11,880.00 ₱ 1,900.00 ₱ 22,800.00
Inventory clerk ₱ 19,533.10 ₱ 832.50 ₱ 9,990.00 ₱ 1,602.50 ₱ 19,230.00
Safety officer ₱ 20,100.87 ₱ 877.50 ₱ 10,530.00 ₱ 1,687.50 ₱ 20,250.00
₱ 647,820.00
Promodizer ₱ 17,041.15 ₱ 742.50 ₱ 8,910.00 ₱ 1,432.50 ₱ 17,190.00
Utility worker 1 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Utility worker 2 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Security Guard 1 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Security Guard 2 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Driver 1 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
Driver 2 ₱ 13,437.61 ₱ 585.00 ₱ 7,020.00 ₱ 1,115.00 ₱ 13,380.00
TOTAL ₱ 446,178.89 ₱ 18,517.50 ₱ 222,210.00 ₱ 35,467.50 ₱ 425,610.00
SCHEDULE 18.4
TOTAL
General Manager ₱ 35,199.97 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Accountant ₱ 23,733.76 ₱ 1,035.00 ₱ 12,420.00 ₱ 1,985.00 ₱ 23,820.00
Inventory clerk ₱ 20,275.35 ₱ 877.50 ₱ 10,530.00 ₱ 1,687.50 ₱ 20,250.00
Safety officer ₱ 20,864.70 ₱ 900.00 ₱ 10,800.00 ₱ 1,730.00 ₱ 20,760.00
₱ 665,760.00
Promodizer ₱ 17,688.72 ₱ 765.00 ₱ 9,180.00 ₱ 1,475.00 ₱ 17,700.00
Utility worker 1 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Utility worker 2 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Security Guard 1 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Security Guard 2 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Driver 1 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
Driver 2 ₱ 13,948.24 ₱ 607.50 ₱ 7,290.00 ₱ 1,157.50 ₱ 13,890.00
TOTAL ₱ 463,133.69 ₱ 19,035.00 ₱ 228,420.00 ₱ 36,445.00 ₱ 437,340.00
SCHEDULE 18.5
TOTAL
General Manager ₱ 36,467.17 ₱ 1,125.00 ₱ 13,500.00 ₱ 2,155.00 ₱ 25,860.00
Accountant ₱ 24,588.17 ₱ 1,057.50 ₱ 12,690.00 ₱ 2,027.50 ₱ 24,330.00
Inventory clerk ₱ 21,005.27 ₱ 922.50 ₱ 11,064.00 ₱ 1,772.50 ₱ 21,270.00
Safety officer ₱ 21,615.83 ₱ 945.00 ₱ 11,340.00 ₱ 1,815.00 ₱ 21,780.00
₱ 703,248.00
Promodizer ₱ 18,325.51 ₱ 787.50 ₱ 9,444.00 ₱ 1,517.50 ₱ 18,210.00
Utility worker 1 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Utility worker 2 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Security Guard 1 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Security Guard 2 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Driver 1 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
Driver 2 ₱ 14,450.38 ₱ 630.00 ₱ 7,560.00 ₱ 1,200.00 ₱ 14,400.00
TOTAL ₱ 479,806.50 ₱ 19,597.50 ₱ 235,158.00 ₱ 37,507.50 ₱ 450,090.00
TABLE 257: PHILHEALTH CONTRIBUTION 2022
SCHEDULE 19.1
PHIL-HEALTH CONTRIBUTION 2022
Total
General Manager ₱ 31,717.89 ₱ 634.36 ₱ 1,903.07 ₱ 634.36 ₱ 1,903.07
Accountant ₱ 21,385.95 ₱ 427.72 ₱ 1,283.16 ₱ 427.72 ₱ 1,283.16
Inventory Clerk ₱ 18,269.66 ₱ 365.39 ₱ 1,096.18 ₱ 365.39 ₱ 1,096.18
Safety Officer ₱ 18,800.71 ₱ 376.01 ₱ 1,128.04 ₱ 376.01 ₱ 1,128.04
₱ 50,078.30
Promodizer ₱ 15,938.90 ₱ 318.78 ₱ 956.33 ₱ 318.78 ₱ 956.33
Utility Worker 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Utility Worker 2 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Security Guard 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Security Guard 2 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Driver 1 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Driver 2 ₱ 12,568.44 ₱ 251.37 ₱ 754.11 ₱ 251.37 ₱ 754.11
Total ₱ 417,319.18 ₱ 8,346.38 ₱ 25,039.15 ₱ 8,346.38 ₱ 25,039.15
SCHEDULE 19.2
Total
General Manager ₱ 32,764.58 ₱ 737.20 ₱ 8,846.44 ₱ 737.20 ₱ 8,846.44
Accountant ₱ 22,091.68 ₱ 497.06 ₱ 5,964.75 ₱ 497.06 ₱ 5,964.75
Inventory Clerk ₱ 18,872.56 ₱ 424.63 ₱ 5,095.59 ₱ 424.63 ₱ 5,095.59
Safety Officer ₱ 19,421.13 ₱ 436.98 ₱ 5,243.70 ₱ 436.98 ₱ 5,243.70
₱ 232,788.99
Promodizer ₱ 16,464.88 ₱ 370.46 ₱ 4,445.52 ₱ 370.46 ₱ 4,445.52
Utility Worker 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Utility Worker 2 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Security Guard 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Security Guard 2 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Driver 1 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Driver 2 ₱ 12,983.20 ₱ 292.12 ₱ 3,505.46 ₱ 292.12 ₱ 3,505.46
Total ₱ 431,090.72 ₱ 9,699.54 ₱ 116,394.49 ₱ 9,699.54 ₱ 116,394.49
SCHEDULE 19.3
Total
General Manager ₱ 33,911.34 ₱ 847.78 ₱ 10,173.40 ₱ 847.78 ₱ 10,173.40
Accountant ₱ 22,864.89 ₱ 571.62 ₱ 6,859.47 ₱ 571.62 ₱ 6,859.47
Inventory Clerk ₱ 19,533.10 ₱ 488.33 ₱ 5,859.93 ₱ 488.33 ₱ 5,859.93
Safety Officer ₱ 20,100.87 ₱ 502.52 ₱ 6,030.26 ₱ 502.52 ₱ 6,030.26
₱ 267,707.34
Promodizer ₱ 17,041.15 ₱ 426.03 ₱ 5,112.35 ₱ 426.03 ₱ 5,112.35
Utility Worker 1 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Utility Worker 2 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Security Guard 1 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Security Guard 2 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Driver 1 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Driver 2 ₱ 13,437.61 ₱ 335.94 ₱ 4,031.28 ₱ 335.94 ₱ 4,031.28
Total ₱ 446,178.89 ₱ 11,154.47 ₱ 133,853.67 ₱ 11,154.47 ₱ 133,853.67
SCHEDULE 19.4
Total
General Manager ₱ 35,199.97 ₱ 880.00 ₱ 10,559.99 ₱ 880.00 ₱ 10,559.99
Accountant ₱ 23,733.76 ₱ 593.34 ₱ 7,120.13 ₱ 593.34 ₱ 7,120.13
Inventory Clerk ₱ 20,275.35 ₱ 506.88 ₱ 6,082.61 ₱ 506.88 ₱ 6,082.61
Safety Officer ₱ 20,864.70 ₱ 521.62 ₱ 6,259.41 ₱ 521.62 ₱ 6,259.41
₱ 277,880.21
Promodizer ₱ 17,688.72 ₱ 442.22 ₱ 5,306.61 ₱ 442.22 ₱ 5,306.61
Utility Worker 1 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Utility Worker 2 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Security Guard 1 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Security Guard 2 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Driver 1 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Driver 2 ₱ 13,948.24 ₱ 348.71 ₱ 4,184.47 ₱ 348.71 ₱ 4,184.47
Total ₱ 463,133.69 ₱ 11,578.34 ₱ 138,940.11 ₱ 11,578.34 ₱ 138,940.11
SCHEDULE 19.5
Total
General Manager ₱ 36,467.17 ₱ 1,002.85 ₱ 12,034.17 ₱ 1,002.85 ₱ 12,034.17
Accountant ₱ 24,588.17 ₱ 676.17 ₱ 8,114.10 ₱ 676.17 ₱ 8,114.10
Inventory Clerk ₱ 21,005.27 ₱ 577.64 ₱ 6,931.74 ₱ 577.64 ₱ 6,931.74
Safety Officer ₱ 21,615.83 ₱ 594.44 ₱ 7,133.22 ₱ 594.44 ₱ 7,133.22
₱ 316,672.29
Promodizer ₱ 18,325.51 ₱ 503.95 ₱ 6,047.42 ₱ 503.95 ₱ 6,047.42
Utility Worker 1 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Utility Worker 2 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Security Guard 1 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Security Guard 2 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Driver 1 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Driver 2 ₱ 14,450.38 ₱ 397.39 ₱ 4,768.62 ₱ 397.39 ₱ 4,768.62
Total ₱ 479,806.50 ₱ 13,194.68 ₱ 158,336.15 ₱ 13,194.68 ₱ 158,336.15
TABLE 262: PAG-IBIG CONTRIBUTION
SCHEDULE 20
PAG-IBIG CONTRIBUTION
PARTICULARS 2022 2023 2024 2025 2026

ANNUAL
CONTRIBUTION, ₱ 6,900.00 ₱ 27,600.00 ₱ 27,600.00 ₱ 27,600.00 ₱ 27,600.00
EMPLOYEE
ANNUAL
CONTRIBUTION, ₱ 6,900.00 ₱ 27,600.00 ₱ 27,600.00 ₱ 27,600.00 ₱ 27,600.00
EMPLOYER
TOTAL ₱ 13,800.00 ₱ 55,200.00 ₱ 55,200.00 ₱ 55,200.00 ₱ 55,200.00
TABLE 263: HOLIDAY PAY 2022
SCHEDULE 21.1
HOLIDAY PAY CONTRIBUTION 2022
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY (4
DAYS)+100% WAGES
DAYS+30%)
General Manager ₱ 1,019.54 ₱ 4,078.16 ₱ 1,325.40 ₱ 5,403.56

Accountant ₱ 687.43 ₱ 2,749.72 ₱ 893.66 ₱ 3,643.38
Quality assurance officer ₱ 584.12 ₱ 2,336.48 ₱ 759.36 ₱ 3,095.84
Inventory clerk ₱ 587.26 ₱ 2,349.04 ₱ 763.44 ₱ 3,112.48
Sales and Marketing
₱ 654.43 ₱ 2,617.72 ₱ 850.76 ₱ 3,468.48
Officer
Safety officer ₱ 604.33 ₱ 2,417.32 ₱ 785.63 ₱ 3,202.95
Promodizer ₱ 512.34 ₱ 2,049.36 ₱ 666.04 ₱ 2,715.40
Utility worker 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Utility worker 2 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Security Guard 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Security Guard 2 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Driver 1 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
Driver 2 ₱ 404.00 ₱ 1,616.00 ₱ 525.20 ₱ 2,141.20
TOTAL ₱ 13,414.31 ₱ 53,657.24 ₱ 17,438.60 ₱ 71,095.84
SCHEDULE 21.2
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY (8
DAYS)+100% WAGES
DAYS+30%)
General Manager ₱ 1,053.00 ₱ 16,848.00 ₱ 1,368.90 ₱ 18,216.90
Accountant ₱ 710.12 ₱ 11,361.92 ₱ 923.16 ₱ 12,285.08
Inventory clerk ₱ 606.64 ₱ 9,706.24 ₱ 788.63 ₱ 10,494.87
Sales and Marketing
₱ 676.03 ₱ 10,816.42 ₱ 878.83 ₱ 11,695.25
Officer
Safety officer ₱ 624.27 ₱ 9,988.37 ₱ 811.55 ₱ 10,799.92
Promodizer ₱ 529.25 ₱ 8,467.96 ₱ 688.02 ₱ 9,155.98
Utility worker 1 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Utility worker 2 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Security Guard 1 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Security Guard 2 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Driver 1 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
Driver 2 ₱ 417.33 ₱ 6,677.31 ₱ 542.53 ₱ 7,219.84
TOTAL ₱ 13,856.83 ₱ 221,709.25 ₱ 18,013.88 ₱ 239,723.12
SCHEDULE 21.3
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY (8
DAYS)+100% WAGES
DAYS+30%)
General Manager ₱ 1,089.86 ₱ 17,437.68 ₱ 1,416.81 ₱ 18,854.49
Accountant ₱ 734.97 ₱ 11,759.59 ₱ 955.47 ₱ 12,715.05
Inventory clerk ₱ 627.87 ₱ 10,045.96 ₱ 816.23 ₱ 10,862.19
Sales and Marketing
₱ 699.69 ₱ 11,194.99 ₱ 909.59 ₱ 12,104.59
Officer
Safety officer ₱ 646.12 ₱ 10,337.96 ₱ 839.96 ₱ 11,177.92
Promodizer ₱ 547.77 ₱ 8,764.33 ₱ 712.10 ₱ 9,476.44
Utility worker 1 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Utility worker 2 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Security Guard 1 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Security Guard 2 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Driver 1 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
Driver 2 ₱ 431.94 ₱ 6,911.02 ₱ 561.52 ₱ 7,472.54
TOTAL ₱ 14,341.82 ₱ 229,469.07 ₱ 18,644.36 ₱ 248,113.43
SCHEDULE 21.4
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY (8
DAYS)+100% WAGES
DAYS+30%)
General Manager ₱ 1,131.27 ₱ 18,100.31 ₱ 1,470.65 ₱ 19,570.96
Accountant ₱ 762.90 ₱ 12,206.45 ₱ 991.77 ₱ 13,198.23
Inventory clerk ₱ 651.73 ₱ 10,427.70 ₱ 847.25 ₱ 11,274.96
Sales and Marketing
₱ 726.28 ₱ 11,620.40 ₱ 944.16 ₱ 12,564.56
Officer
Safety officer ₱ 670.68 ₱ 10,730.80 ₱ 871.88 ₱ 11,602.68
Promodizer ₱ 568.59 ₱ 9,097.38 ₱ 739.16 ₱ 9,836.54
Utility worker 1 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Utility worker 2 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Security Guard 1 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Security Guard 2 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Driver 1 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
Driver 2 ₱ 448.35 ₱ 7,173.64 ₱ 582.86 ₱ 7,756.49
TOTAL ₱ 14,886.81 ₱ 238,188.90 ₱ 19,352.85 ₱ 257,541.74
SCHEDULE 21.5
SPECIAL NON-
DAILY WORKING
SALARY HOLIDAY (8
DAYS)+100% WAGES
DAYS+30%)
General Manager ₱ 1,172.00 ₱ 18,751.92 ₱ 1,523.59 ₱ 20,275.52
Operations Manager ₱ 1,005.53 ₱ 16,088.54 ₱ 1,307.19 ₱ 17,395.74
Production supervisor ₱ 788.33 ₱ 12,613.29 ₱ 1,024.83 ₱ 13,638.13
Accountant ₱ 790.37 ₱ 12,645.88 ₱ 1,027.48 ₱ 13,673.36
Inventory clerk ₱ 675.19 ₱ 10,803.10 ₱ 877.75 ₱ 11,680.85
Sales and Marketing
₱ 752.42 ₱ 12,038.74 ₱ 978.15 ₱ 13,016.89
Officer
Safety officer ₱ 694.82 ₱ 11,117.11 ₱ 903.27 ₱ 12,020.38
Promodizer ₱ 589.06 ₱ 9,424.88 ₱ 765.77 ₱ 10,190.66
Utility worker 1 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Utility worker 2 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Security Guard 1 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Security Guard 2 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Driver 1 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
Driver 2 ₱ 464.49 ₱ 7,431.89 ₱ 603.84 ₱ 8,035.73
TOTAL ₱ 15,422.73 ₱ 246,763.70 ₱ 20,049.55 ₱ 266,813.25
TABLE 268: DEPRECIATION EXPENSE
SCHEDULE 22
DEPRECIATION EXPENSE
2022 2023 2024 2025 2026
WAREHOUSE LEASEHOLD
₱ 37,120.25 ₱ 148,481.00 ₱ 148,481.00 ₱ 148,481.00 ₱ 148,481.00
IMPROVEMENT
DELIVERY TRUCK ₱ 30,357.14 ₱ 121,428.57 ₱ 121,428.57 ₱ 121,428.57 ₱ 121,428.57
MACHINES ₱ 32,628.00 ₱ 130,512.00 ₱ 130,512.00 ₱ 130,512.00 ₱ 130,512.00
PRODUCTION EQUIPMENT ₱ 34,589.70 ₱ 138,358.80 ₱ 138,358.80 ₱ 138,358.80 ₱ 138,358.80
SAFETY EQUIPMENT SIGNAGES ₱ 439.36 ₱ 1,757.45 ₱ 1,757.45 ₱ 1,757.45 ₱ 1,757.45
OFFICE FURNITURE AND

₱ 17,477.46 ₱ 69,909.84 ₱ 69,909.84 ₱ 69,909.84 ₱ 69,909.84
FIXTURES
SANITARY EQUIPMENT ₱ 1,770.98 ₱ 7,083.90 ₱ 7,083.90 ₱ 7,083.90 ₱ 7,083.90
TOTAL ₱ 154,382.89 ₱ 617,531.56 ₱ 617,531.56 ₱ 617,531.56 ₱ 617,531.56
TABLE 269: OTHER INCOME
SCHEDULE 23
OTHER INCOME
2022 2023 2024 2025 2026
CANTEEN RENT
₱ 18,000.00 ₱ 74,376.00 ₱ 76,979.16 ₱ 79,904.37 ₱ 82,780.93
INCOME
TABLE 270: TRANSPORTATION COST
SCHEDULE 24
NOTE 2022 2023 2024 2025 2026
N24 ₱ 62,434.56 ₱ 64,494.90 ₱ 66,752.22 ₱ 69,288.81 ₱ 71,783.20
TABLE 271: WASTE MANAGEMENT COST
SCHEDULE 25
WASTE MANAGEMENT COST
NOTE 2022 2023 2024 2025 2026
N23 ₱ 3,088.00 ₱ 3,189.90 ₱ 3,301.55 ₱ 3,427.01 ₱ 3,550.38
TABLE 272: MANUFACTURING COST
SCHEDULE 26
MANUFACTURING COST OF PRODUCT
YEAR 2022 2023 2024 2025 2026
₱ 74.88 ₱ 77.35 ₱ 80.06 ₱ 83.10 ₱ 86.09
TABLE 273: RETAIL PRICE
SCHEDULE 27
RETAIL PRICE OF PRODUCT
YEAR 2021 2022 2023 2024 2025
₱ 109.00 ₱ 112.60 ₱ 116.54 ₱ 120.97 ₱ 125.33
TABLE 274: VAT PAYBLE
SCHEDULE 28
VAT PAYABLE
2022 2023 2024 2025 2026
Sales ₱ 5,735,700.99 ₱ 26,064,891.22 ₱ 28,955,406.03 ₱ 31,169,614.08 ₱ 33,761,834.06
Output Tax (12%) ₱ 688,284.12 ₱ 3,127,786.95 ₱ 3,474,648.72 ₱ 3,740,353.69 ₱ 4,051,420.09
Office Supplies ₱ 1,657.25 ₱ 6,847.76 ₱ 7,087.43 ₱ 7,356.75 ₱ 7,621.59

Sanitary Materials ₱ 7,249.94 ₱ 29,956.75 ₱ 31,005.24 ₱ 32,183.44 ₱ 33,342.04
Raw Materials
₱ 3,017,588.13 ₱ 12,195,356.30 ₱ 12,687,726.21 ₱ 13,008,629.29 ₱ 13,299,117.15
Purchases
Total Purchases ₱ 3,026,495.32 ₱ 12,232,160.81 ₱ 12,725,818.87 ₱ 13,048,169.48 ₱ 13,340,080.78
Input Tax (12%) ₱ 363,179.44 ₱ 1,467,859.30 ₱ 1,527,098.26 ₱ 1,565,780.34 ₱ 1,600,809.69
VAT Payable ₱ 325,104.68 ₱ 1,659,927.65 ₱ 1,947,550.46 ₱ 2,174,573.35 ₱ 2,450,610.39

TABLE 275: PARTNER’S EQUITY
SCHEDULE 29
PARTNER'S EQUITY
PRE-
CAPITAL 2022 2023 2024 2025 2026
OPERATION
Initial
₱ 15,000,000.00
Contribution
Beg. Capital ₱ 15,000,000.00 ₱ 13,648,203.63 ₱ 20,291,265.43 ₱ 28,075,181.40 ₱ 37,376,192.33
Add: Net Income ₱ 1,648,203.63 ₱ 9,643,061.80 ₱ 10,783,915.97 ₱ 12,301,010.93 ₱ 13,935,740.64
Total Capital After

₱ 15,000,000.00 ₱ 16,648,203.63 ₱ 23,291,265.43 ₱ 31,075,181.40 ₱ 40,376,192.33 ₱ 51,311,932.97
Participation
Less: Withdrawal ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00)

Ending Capital ₱ 15,000,000.00 ₱ 13,648,203.63 ₱ 20,291,265.43 ₱ 28,075,181.40 ₱ 37,376,192.33 ₱ 48,311,932.97
TABLE 276: WITHHOLDING TAX PAYABLE
SCHEDULE 30
WITHHOLDING TAX
ANNUAL
HEADCOUNT 2022 2023 2024 2025 2026
SALARY
General Manager ₱ 367,034.40 1 ₱ - ₱ 16,784.85 ₱ 16,119.33 ₱ 20,857.59 ₱ 22,902.64
Chief Financial
₱ 325,353.60 1 ₱ - ₱ 10,078.93 ₱ 11,640.60 ₱ 13,689.21 ₱ 15,757.72
Officer
Human Resource
₱ 252,882.00 1 ₱ - ₱ - ₱ - ₱ 1,224.46 ₱ 2,564.13
Staff
Chemical Engineer ₱ 327,769.20 1 ₱ - ₱ 12,870.09 ₱ 14,799.99 ₱ 16,968.65 ₱ 19,101.24
Operations Manager ₱ 314,848.80 1 ₱ - ₱ 8,388.73 ₱ 9,899.98 ₱ 11,882.44 ₱ 13,550.39

TOTAL 5 ₱ - ₱ 48,122.60 ₱ 52,459.91 ₱ 64,622.35 ₱ 73,876.12
TABLE 277: TOTAL SALARY BENEFITS
SCHEDULE 31
TOTAL SALARY BENEFITS
2022 2023 2024 2025 2026
13th Month Pay ₱ 33,535.81 ₱ 431,090.72 ₱ 446,178.89 ₱ 463,133.69 ₱ 479,806.50
SSS Contribution ₱ 52,393.50 ₱ 213,570.00 ₱ 222,210.00 ₱ 228,420.00 ₱ 235,158.00
Phil-Health Contribution ₱ 25,039.15 ₱ 116,394.49 ₱ 133,853.67 ₱ 138,940.11 ₱ 158,336.15
Pag-ibig Contribution ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00
Holiday Pay ₱ 71,095.84 ₱ 239,723.12 ₱ 248,113.43 ₱ 257,541.74 ₱ 266,813.25
TOTAL ₱ 186,664.30 ₱ 1,005,378.33 ₱ 1,054,955.99 ₱ 1,092,635.54 ₱ 1,144,713.90
INCOME STATEMENT
The income statement is one of three primary financial statements used to
summarize a company's financial performance over a certain accounting period,
with the balance sheet and the statement of cash flows being the other two. The
income statement, also known as the profit and loss statement or the statement of
revenue and expense, focuses on the company's earnings and expenses during a
specific period. Revenue, costs, profits, and losses are the four main components
on the income statement.
The projected income statement for the years ended in 2022 to 2026 of
Lucid Pinnacle Manufacturing Company is shown on the table at the next
page.
TABLE 278: PROJECTED INCOME STATEMENT

LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED INCOME STATEMENT FOR THE YEARS ENDED 2022-2026
2022 2023 2024 2025 2026
S/N
Sales S1 ₱ 5,735,700.99 ₱ 26,064,891.22 ₱ 28,955,406.03 ₱ 31,169,614.08 ₱ 33,761,834.06
Less: Cost of Goods Sold S2 ₱ (1,945,866.14) ₱ (8,906,729.68) ₱ (10,183,076.72) ₱ (10,233,403.04) ₱ (10,491,615.99)
Gross Income ₱ 3,789,834.85 ₱ 17,158,161.53 ₱ 18,772,329.31 ₱ 20,936,211.04 ₱ 23,270,218.06
Add: Other Income S23 ₱ 18,000.00 ₱ 74,376.00 ₱ 76,979.16 ₱ 79,904.37 ₱ 82,780.93
Operating Income ₱ 3,807,834.85 ₱ 17,232,537.53 ₱ 18,849,308.47 ₱ 21,016,115.41 ₱ 23,352,998.99
Less: Pre-Operating Expense
Project Feasibility Expense N1 ₱ (32,000.00) ₱ - ₱ - ₱ - ₱ -
Training Cost N22 ₱ (30,000.00) ₱ - ₱ - ₱ - ₱ -
Grand Opening Cost N17 ₱ (14,400.00) ₱ - ₱ - ₱ - ₱ -
Uniform & ID Expense N16 ₱ (11,000.00) ₱ - ₱ - ₱ - ₱ -
Intellectual Property Right Costs N29 ₱ (28,032.00) ₱ - ₱ - ₱ - ₱ -
₱ (115,432.00) ₱ - ₱ - ₱ - ₱ -
Less: Selling and Operating Expenses
Salaries Benefits Expenses S31 ₱ (186,664.30) ₱ (1,005,378.33) ₱ (1,054,955.99) ₱ (1,092,635.54) ₱ (1,144,713.90)
Advertising Expenses S13 ₱ (377,322.00) ₱ (388,641.66) ₱ (402,244.12) ₱ (417,529.39) ₱ (432,560.45)
Depreciation Expense S22 ₱ (154,382.89) ₱ (617,531.56) ₱ (617,531.56) ₱ (617,531.56) ₱ (617,531.56)
Freight Expense N26 ₱ (661,475.09) ₱ (1,595,999.21) ₱ (1,601,585.21) ₱ (1,662,445.45) ₱ (1,722,293.48)
Office Supplies Expense S16 ₱ (1,657.25) ₱ (6,847.76) ₱ (7,087.43) ₱ (7,356.75) ₱ (7,621.59)
Sanitary Materials Expense S15 ₱ (7,249.94) ₱ (29,956.75) ₱ (31,005.24) ₱ (32,183.44) ₱ (33,342.04)
Repairs and Maintenance Expense S14 ₱ (61,840.29) ₱ (255,524.05) ₱ (264,467.39) ₱ (274,517.15) ₱ (284,399.77)
Waste Management Expense S25 ₱ (3,088.00) ₱ (3,189.00) ₱ (3,301.55) ₱ (3,427.01) ₱ (3,550.38)
Transportation Expense S24 ₱ (62,434.56) ₱ (64,494.90) ₱ (66,752.22) ₱ (69,288.81) ₱ (71,783.20)
Permits and Licenses S11 ₱ (20,034.00) ₱ (12,038.58) ₱ (12,459.93) ₱ (12,933.41) ₱ (13,999.01)
Insurance Expense S12 ₱ (96,000.00) ₱ (395,520.00) ₱ (409,363.20) ₱ (424,919.00) ₱ (440,216.09)
Total Selling and Operating Expenses ₱ (1,632,148.32) ₱ (4,375,121.80) ₱ (4,470,753.84) ₱ (4,614,767.51) ₱ (4,772,011.47)
Net Income Before Tax ₱ 2,060,254.53 ₱ 12,857,415.73 ₱ 14,378,554.63 ₱ 16,401,347.91 ₱ 18,580,987.52
Income Tax under CREATE LAW ₱ (412,050.91) ₱ (3,214,353.93) ₱ (3,594,638.66) ₱ (4,100,336.98) ₱ (4,645,246.88)
Net Income after Tax ₱ 1,648,203.63 ₱ 9,643,061.80 ₱ 10,783,915.97 ₱ 12,301,010.93 ₱ 13,935,740.64
INCOME STATEMENT ANALYSIS
The table on the previous page presents how well the business did in its
operations based on its generated income. The first year of its operation shows
that the business has generated over Php 5 million in its sales and had a net
income of over Php 1.5 million. It is a good starting profit considering it’s only been
a quarter since the business starts its operations. As the sales increases, its
operating and selling expenses also increases. The business’ expenses would
increase every year as inflation rate also increases. The business must change its
prices based on the forecasted inflation rates.
In conclusion, the company has managed to increase its net income every
year.
TABLE 279: COMMON SIZE INCOME STATEMENT

PROJECTED INCOME STATEMENT FOR THE YEARS ENDED 2022-2026
2022 2023 2024 2025 2026
S/N
Sales S1 100.00% 100.00% 100.00% 100.00% 100.00%
Less: Cost of Goods Sold S2 33.93% 34.17% 35.17% 32.83% 31.08%
Gross Income 66.07% 65.83% 64.83% 67.17% 68.92%
Add: Other Income S23 0.31% 0.29% 0.27% 0.26% 0.25%
Operating Income 66.39% 66.11% 65.10% 67.43% 69.17%
Less: Pre-Operating Expense
Project Feasibility Expense N1 0.56% 0.00% 0.00% 0.00% 0.00%
Training Cost N22 0.52% 0.00% 0.00% 0.00% 0.00%
Grand Opening Cost N17 0.25% 0.00% 0.00% 0.00% 0.00%
Intellectual Property Right Costs N29 0.49% 0.00% 0.00% 0.00% 0.00%
Uniform & ID Expense N16 0.19% 0.00% 0.00% 0.00% 0.00%
2.01% 0.00% 0.00% 0.00% 0.00%
Less: Selling and Operating Expenses
Salaries Benefits Expenses 3.25% 3.86% 3.64% 3.51% 3.39%
Advertising Expenses S13 6.58% 1.49% 1.39% 1.34% 1.28%
Depreciation Expense S22 2.69% 2.37% 2.13% 1.98% 1.83%
Freight Expense N26 11.53% 6.12% 5.53% 5.33% 5.10%
Office Supplies Expense S16 0.03% 0.03% 0.02% 0.02% 0.02%
Sanitary Materials Expense S15 0.13% 0.11% 0.11% 0.10% 0.10%
Repairs and Maintenance Expense S14 1.08% 0.98% 0.91% 0.88% 0.84%
Waste Management Expense S25 0.05% 0.01% 0.01% 0.01% 0.01%
Transportation Expense S24 1.09% 0.25% 0.23% 0.22% 0.21%
Permits and Licenses S11 0.35% 0.05% 0.04% 0.04% 0.04%
Insurance Expense S12 1.67% 1.52% 1.41% 1.36% 1.30%
Total Selling and Operating Expenses 28.46% 16.79% 15.44% 14.81% 14.13%
Net Income Before Tax 35.92% 49.33% 49.66% 52.62% 55.04%
Income Tax under CREATE LAW 7.18% 12.33% 12.41% 13.15% 13.76%
Net Income after Tax 28.74% 37.00% 37.24% 39.46% 41.28%
The common-size income statement shown in the previous page shows the
percentage allocation in each account. The gross income in the fifth year garners
the highest percentage which is 68.92% among previous projected years. The
highest net income after tax among all projected years is also at the fifth year of
the business operations in which it reached to 41.28%. This shows that the
business has been managing its operations smoothly.
STATEMENT OF CASH FLOWS
The cash flow statement (CFS), sometimes known as the statement of cash
flows, is a financial statement that outlines the amount of cash and cash
equivalents entering and leaving a business. It, too, measures a company's
performance over time, just like the income statement. It differs, though, because
the timing of non-cash transactions is less easily influenced. The CFS, on the other
hand, is a more difficult to manipulate indicator of genuine inflows and outflows.
The table on the next page shows the statement of cash flow of Lucid
Pinnacle Manufacturing Company for the years ended in 2022 to 2026.

TABLE 280: PROJECTED CASH FLOWS

PROJECTED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 2022-2026
PRE-OPERATIONS 2022 2023 2024 2025 2026
CASH FLOWS FROM OPERATING ACTIVITIES

Net Income ₱ 1,648,203.63 ₱ 9,643,061.80 ₱ 10,783,915.97 ₱ 12,301,010.93 ₱ 13,935,740.64
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation of Fixed Assets ₱ - ₱ 154,382.89 ₱ 617,531.36 ₱ 617,531.36 ₱ 617,531.36 ₱ 617,531.36
(Increease) Decrease of Current Assets
Inventory ₱ - ₱ (984,842.86) ₱ (2,867,261.05) ₱ (1,273,306.82) ₱ (860,438.60) ₱ (276,325.28)
Increase (Decrease) of Current Liabilities
SSS Payable ₱ - ₱ 50,732.63 ₱ 1,172.37 ₱ 2,080.00 ₱ 1,495.00 ₱ 1,625.00
Phil-Health Payable ₱ - ₱ 16,692.76 ₱ 2,706.32 ₱ 2,909.86 ₱ 847.74 ₱ 3,232.68
Pag-ibig Contribution ₱ - ₱ 4,600.00 ₱ - ₱ - ₱ - ₱ -
Witholding Tax Payable ₱ - ₱ - ₱ 48,122.60 ₱ 52,459.91 ₱ 64,622.35 ₱ 73,876.12
Other Salaries Payable ₱ - ₱ 71,095.84 ₱ 168,627.28 ₱ 8,390.31 ₱ 9,428.31 ₱ 9,271.51
Utilities Payable ₱ - ₱ 46,864.86 ₱ 1,546.54 ₱ 1,694.40 ₱ 1,904.02 ₱ 1,872.35
VAT Payable ₱ - ₱ 325,104.68 ₱ 1,659,927.65 ₱ 1,947,550.46 ₱ 2,174,573.35 ₱ 2,450,610.39
Income Tax Payable ₱ - ₱ 493,376.76 ₱ 3,469,282.61 ₱ 3,842,519.04 ₱ 4,359,228.31 ₱ 4,906,538.72
Net Cash Provided by Operating Activities ₱ - ₱ 1,826,211.19 ₱ 12,744,717.48 ₱ 15,985,744.49 ₱ 18,670,202.77 ₱ 21,723,973.49
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant, and Equipment ₱ (7,046,610.88) ₱ - ₱ - ₱ - ₱ - ₱ -
Payment for Security Deposit ₱ (495,000.00) ₱ - ₱ - ₱ - ₱ - ₱ -
Net Cash Used in Investing Activities ₱ (7,541,610.88) ₱ - ₱ - ₱ - ₱ - ₱ -
CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from Partners ₱ 15,000,000.00
Cash withdrawn by Partners ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00)
Net Cash Provided (Used) by Financing Activities ₱ 15,000,000.00 ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00)
Cash in bank, beginning ₱ 7,458,389.12 ₱ 6,284,600.31 ₱ 16,029,317.79 ₱ 29,015,062.28 ₱ 44,685,265.06

Cash in bank, ending ₱ 7,458,389.12 ₱ 6,284,600.31 ₱ 16,029,317.79 ₱ 29,015,062.28 ₱ 44,685,265.06 ₱ 63,409,238.55
BALANCE SHEET
A balance sheet is a financial statement that shows the assets, liabilities,
and shareholder equity of a corporation at a certain point in time. Balance sheets
serve as the foundation for calculating investor returns and assessing a company's
financial structure. In a nutshell, a balance sheet is a financial statement that
shows what a company owns and owes, as well as how much money shareholders
have invested. To conduct basic analysis or calculate financial ratios, balance
sheets can be combined with other essential financial accounts.
The table on the next page shows the projected balance sheet of Lucid
Pinnacle Manufacturing Company as of the years 2022 to 2026

TABLE 281: PROJECTED BALANCE SHEET

PROJECTED BALANCE SHEET AS OF THE YEARS 2022-2026
PRE-OPERATIONS 2022 2023 2024 2025 2026
S/N
ASSETS
Current Assets
Cash in Bank ₱ 7,458,389.12 ₱ 6,284,600.31 ₱ 16,029,317.79 ₱ 29,015,062.28 ₱ 44,685,265.06 ₱ 63,409,238.55
Inventory ₱ - ₱ 984,842.86 ₱ 3,852,103.91 ₱ 5,125,410.73 ₱ 5,985,849.33 ₱ 6,262,174.61
Total Current Assets ₱ 7,458,389.12 ₱ 7,269,443.17 ₱ 19,881,421.70 ₱ 34,140,473.01 ₱ 50,671,114.39 ₱ 69,671,413.16
Non-Current Assets
Property, Plant, and Equipment ₱ 7,046,610.88 ₱ 6,892,227.99 ₱ 6,274,696.63 ₱ 5,657,165.27 ₱ 5,039,633.91 ₱ 4,422,102.55
Security Deposit N4 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00
Total Non-Current Assets ₱ 7,541,610.88 ₱ 7,387,227.99 ₱ 6,769,696.63 ₱ 6,152,165.27 ₱ 5,534,633.91 ₱ 4,917,102.55
TOTAL ASSETS ₱ 15,000,000.00 ₱ 14,656,671.16 ₱ 26,651,118.33 ₱ 40,292,638.28 ₱ 56,205,748.30 ₱ 74,588,515.71
LIABILITIES
Current Liabilities
SSS Payable S18 ₱ - ₱ 50,732.63 ₱ 51,905.00 ₱ 53,985.00 ₱ 55,480.00 ₱ 57,105.00
Phil-Health Payable S19 ₱ - ₱ 16,692.76 ₱ 19,399.08 ₱ 22,308.94 ₱ 23,156.68 ₱ 26,389.36
Pag-ibig Payable S20 ₱ - ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00
Witholding Tax Payable S30 ₱ - ₱ - ₱ 48,122.60 ₱ 52,459.91 ₱ 64,622.35 ₱ 73,876.12
Other Salaries Payable S21 ₱ - ₱ 71,095.84 ₱ 239,723.12 ₱ 248,113.43 ₱ 257,541.74 ₱ 266,813.25
Utilities Payable S8 ₱ - ₱ 46,864.86 ₱ 48,411.40 ₱ 50,105.80 ₱ 52,009.82 ₱ 53,882.17
VAT Payable S28 ₱ - ₱ 325,104.68 ₱ 1,659,927.65 ₱ 1,947,550.46 ₱ 2,174,573.35 ₱ 2,450,610.39
Income Tax Payable ₱ - ₱ 355,475.35 ₱ 3,070,282.81 ₱ 3,442,122.74 ₱ 3,943,616.95 ₱ 4,475,965.35
Total Current Liabilities ₱ - ₱ 870,566.12 ₱ 5,142,371.66 ₱ 5,821,246.28 ₱ 6,575,600.89 ₱ 7,409,241.64
PARTNER'S CAPITAL
Matunog, Capital N2 ₱ 2,000,000.00 ₱ 1,837,687.80 ₱ 2,867,115.93 ₱ 4,595,036.55 ₱ 6,615,698.65 ₱ 8,954,997.23
Mercado, Capital N2 ₱ 2,000,000.00 ₱ 1,837,687.80 ₱ 2,867,115.93 ₱ 4,595,036.55 ₱ 6,615,698.65 ₱ 8,954,997.23
Rodrigo, Capital N2 ₱ 2,000,000.00 ₱ 1,837,687.80 ₱ 2,867,115.93 ₱ 4,595,036.55 ₱ 6,615,698.65 ₱ 8,954,997.23
Camilotes, Capital N2 ₱ 2,000,000.00 ₱ 1,837,687.80 ₱ 2,867,115.93 ₱ 4,595,036.55 ₱ 6,615,698.65 ₱ 8,954,997.23
Embalzado, Capital N2 ₱ 2,000,000.00 ₱ 1,837,687.80 ₱ 2,867,115.93 ₱ 4,595,036.55 ₱ 6,615,698.65 ₱ 8,954,997.23
Bernal, Capital N2 ₱ 5,000,000.00 ₱ 4,594,908.81 ₱ 7,168,865.27 ₱ 11,489,314.96 ₱ 16,541,728.13 ₱ 22,390,852.05
TOTAL PARTNER'S CAPITAL ₱ 15,000,000.00 ₱ 13,786,105.05 ₱ 21,508,746.67 ₱ 34,471,392.01 ₱ 49,630,147.40 ₱ 67,179,274.07
TOTAL LIABILITIES AND PARTNER'S CAPITAL ₱ 15,000,000.00 ₱ 14,656,671.16 ₱ 26,651,118.33 ₱ 40,292,638.28 ₱ 56,205,748.30 ₱ 74,588,515.71
BALANCE SHEET ANALYSIS
The table presented on the previous page shows the company’s balance
sheet. The cash in bank during pre-operations amounts around Php 7 million as it
is considered as the start-up capital need for the business. Also, around Php 7
million for having the property, plant, and equipment owned by the company and
it continuously depletes based on its depreciation value. From the monetary value
of Php 15 million in the pre-operating year has grown into over Php 67 million. This
increase is relative to the cash in-flows of the company gained through its
operating activities. The company’s liabilities have also increased over the
projected years as the company also has an increasing trend. There is also a
relative increase in tax payable due to increase in cash obtained from its
operations.
TABLE 282: COMMON-SIZE BALANCE SHEET

PROJECTED BALANCE SHEET AS OF THE YEARS 2022-2026
PRE-OPERATIONS 2022 2023 2024 2025 2026
S/N
ASSETS
Current Assets
Cash in Bank 49.72% 42.88% 60.15% 72.01% 79.50% 85.01%
Inventory 0.00% 6.72% 14.45% 12.72% 10.65% 8.40%
Total Current Assets 49.72% 49.60% 74.60% 84.73% 90.15% 93.41%
Non-Current Assets
Property, Plant, and Equipment 46.98% 47.02% 23.54% 14.04% 8.97% 5.93%
Security Deposit N4 3.30% 3.38% 1.86% 1.23% 0.88% 0.66%
Total Non-Current Assets 50.28% 50.40% 25.40% 15.27% 9.85% 6.59%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
LIABILITIES
Current Liabilities
SSS Payable S18 0.00% 5.83% 1.01% 0.93% 0.84% 0.77%
Phil-Health Payable S19 0.00% 1.92% 0.38% 0.38% 0.35% 0.36%
Pag-ibig Payable S20 0.00% 0.53% 0.09% 0.08% 0.07% 0.06%
Witholding Tax Payable S30 0.00% 0.00% 0.94% 0.90% 0.98% 1.00%
Other Salaries Payable S21 0.00% 8.17% 4.66% 4.26% 3.92% 3.60%
Utilities Payable S8 0.00% 5.38% 0.94% 0.86% 0.79% 0.73%
VAT Payable S28 0.00% 37.34% 32.28% 33.46% 33.07% 33.08%
Income Tax Payable 0.00% 40.83% 59.71% 59.13% 59.97% 60.41%
Total Current Liabilities 0.00% 5.94% 19.30% 14.45% 11.70% 9.93%
PARTNER'S CAPITAL
Matunog, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Mercado, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Rodrigo, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Camilotes, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Embalzado, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Bernal, Capital N2 33.33% 31.35% 26.90% 28.51% 29.43% 30.02%
TOTAL PARTNER'S CAPITAL 100.00% 94.06% 80.70% 85.55% 88.30% 90.07%
TOTAL LIABILITIES AND PARTNER'S CAPITAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
The common size balance sheet is expressed in terms of the percentage of
a common base number as it determines the percentage of each component from
total assets, total current liabilities, and total partner’s capital.
From the assets, the cash in bank has the largest percentage during pre-
operations. Although at the end of year 2022, the cash in bank has a negative
percent since the business operates for only three (3) months from October 2022
to December 2022. It is normal for any business to incur losses during the early
stages of operations. At the second year of its operation, the business has 42.88%
of cash which means it already recovered from its losses during the early stages
of the operations. This shows that the liquid assets of the business would increase
over the projected years.
The current liabilities increase over a period due to the increase in inflation
rate.
TABLE 283: STATEMENT OF PARTNERS’ EQUITY
PARTNER'S EQUITY
PRE-
CAPITAL 2022 2023 2024 2025 2026
OPERATION
Initial
₱ 15,000,000.00
Contribution
Beg. Capital ₱ 15,000,000.00 ₱ 13,648,203.63 ₱ 20,291,265.43 ₱ 28,075,181.40 ₱ 37,376,192.33
Add: Net Income ₱ 1,648,203.63 ₱ 9,643,061.80 ₱ 10,783,915.97 ₱ 12,301,010.93 ₱ 13,935,740.64
Total Capital After

₱ 15,000,000.00 ₱ 16,648,203.63 ₱ 23,291,265.43 ₱ 31,075,181.40 ₱ 40,376,192.33 ₱ 51,311,932.97
Participation
Less: Withdrawal ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00)

Ending Capital ₱ 15,000,000.00 ₱ 13,648,203.63 ₱ 20,291,265.43 ₱ 28,075,181.40 ₱ 37,376,192.33 ₱ 48,311,932.97
FINANCIAL RATIOS
To get useful information about a company, financial ratios are calculated
using numerical numbers from financial statements. The figures on a company's
financial statements the balance sheet, income statement, and cash flow
statement are used to undertake quantitative analysis and evaluate a company's
liquidity, leverage, growth, margins, profitability, rates of return, and valuation,
among other things. Financial ratios are grouped into the following categories:
Liquidity ratios, Leverage ratios, Efficiency ratios, Profitability ratios, Market value
ratios.
LIQUIDITY RATIO
Liquidity ratios are a type of financial indicator that is used to assess a
debtor's capacity to repay current debt obligations without having to raise
additional funds. Liquidity ratios calculate indicators including the current ratio,
quick ratio, and operating cash flow ratio to determine a company's capacity to
meet debt obligations and its margin of safety.

TABLE 284: CURRENT RATIO
CURRENT RATIO
2022 2023 2024 2025 2026
CURRENT
₱ 7,269,443.17 ₱19,881,421.70 ₱34,140,473.01 ₱50,671,114.39 ₱69,671,413.16
ASSETS
CURRENT
₱ 870,566.12 ₱ 5,142,371.66 ₱ 5,821,246.28 ₱ 6,575,600.89 ₱ 7,409,241.64
LIABILITIES
RATIO 8.35 3.87 5.86 7.71 9.40
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
FIGURE 70: CURRENT RATIO
As presented in Figure 70, the company has a lot of potentials to use current
assets to pay down short-term obligations. Increasing obligations is also a
reflection of increased sales; as a result, they can still pay their bills obligations.
According to the figures above, in 2023, the corporation will have a 3.87 monetary
worth as a short-term liability. In exchange for payment.

ACID TEST RATIO
The Acid-Test Ratio, also known as the quick ratio, is a liquidity ratio that
measures how sufficient a company’s short-term assets are to cover its current
liabilities. In other words, the acid-test ratio is a measure of how well a company
can satisfy its short-term (current) financial obligations. This guide will break down
how to calculate the ratio step by step and discuss its implications.
TABLE 285: ACID TEST RATIO
ACID TEST RATIO

2022 2023 2024 2025 2026
CURRENT
₱ 7,269,443.17 ₱19,881,421.70 ₱34,140,473.01 ₱50,671,114.39 ₱69,671,413.16
ASSETS
INVENTORY ₱ 984,842.86 ₱ 3,852,103.91 ₱ 5,125,410.73 ₱ 5,985,849.33 ₱ 6,262,174.61
CURRENT
₱ 870,566.12 ₱ 5,142,371.66 ₱ 5,821,246.28 ₱ 6,575,600.89 ₱ 7,409,241.64
LIABILITIES
RATIO 7.22 3.12 4.98 6.80 8.56
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

𝐴𝑐𝑖𝑑 𝑇𝑒𝑠𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
FIGURE 71: ACID TEST RATIO
As shown in the graph above, the business is in good shape. They can pay
their existing liabilities with their identified rapid assets. They provided in their
financial statement. These are assets that are currently in use. In 90 days, it can
be converted to cash. To emphasize, the corporation can pay 3.12 monetary-
valued quick assets as a liability for each monetary worth at the end of year 2023.
SOLVENCY RATIOS
A solvency ratio is a crucial metric used by prospective business lenders to
assess an organization's capacity to satisfy long-term debt obligations. A solvency
ratio is a measure of a company's financial health that determines if its cash flow
is sufficient to cover its long-term liabilities. An unfavorable ratio can suggest that
a corporation is at risk of defaulting on its debt obligations.
TABLE 286: DEBT RATIO
DEBT RATIO
2022 2023 2024 2025 2026
TOTAL
₱ 870,566.12 ₱ 5,142,371.66 ₱ 5,821,246.28 ₱ 6,575,600.89 ₱ 7,409,241.64
LIABILITIES
TOTAL
₱14,656,671.16 ₱26,651,118.33 ₱40,292,638.28 ₱56,205,748.30 ₱74,588,515.71
ASSETS
RATIO 0.06 0.19 0.14 0.12 0.10
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
FIGURE 72: DEBT RATIO
As shown in the graph above, the company's debt ratio is gradually
decreasing. For the next four years of operation, the value decreases. It implies
that the company is doing well. Has kept its debt low in comparison to its assets.
We derived our conclusions from the data. It can see that while overall assets
grew, total liabilities grew as well. As the company grows in the market, it must
continue this path. Claim that they are doing well in the industry since debt assets
are available. Over time, you'll need to reduce the amount of time you spend on it.
As a result, the business can reduce the assets given by liabilities. The
operation's four-year duration. In the year 2023, the company has a 0.19 debt ratio
and has reduced to 0.10 at the end of the fourth year of its entire operation.
RETURN ON EQUITY
The return on equity is a financial performance indicator that is computed
by dividing net income by shareholders' equity. It is used to determine how
profitable a company is and how efficient it is at creating profits. Investors can use
return on equity to determine how profitable a firm is.
TABLE 287: RETURN ON EQUITY
RETURN ON EQUITY
2022 2023 2024 2025 2026
NET INCOME ₱ 2,060,254.53 ₱12,857,415.73 ₱14,378,554.63 ₱16,401,347.91 ₱18,580,987.52
TOTAL
₱13,786,105.05 ₱21,508,746.67 ₱34,471,392.01 ₱49,630,147.40 ₱67,179,274.07
EQUITY
RATIO 14.94% 59.78% 41.71% 33.05% 27.66%
𝑁𝑒𝑡 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 = ∗ 100%
𝑃𝑎𝑟𝑡𝑛𝑒𝑟′𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
FIGURE 73: RETURN ON EQUITY
In the industry, the typical return on equity is between 15-20% according to
the Philippine Statistics Authority (PSA), and by that time, we may call it a success.
In the market rivalry, the company is performing well in the case of a company.
When compared to the industry average, a higher Return on Equity indicates that
they are more profitable. They are more than capable of profiting from the equity
they own established, as depicted in the graph above.

EFFICIENCY RATIOS
The efficiency ratio is a measurement of a company's ability to utilize its
assets and liabilities efficiently. The turnover of receivables, the repayment of
obligations, the amount and use of equity, and the general utilization of inventories
and machinery may all be calculated using an efficiency ratio.
ASSET TURNOVER
It compares the worth of a company's assets to the value of its sales or
revenues. The asset turnover ratio is a metric that measures how well a
corporation uses its assets to produce income.
TABLE 288: TOTAL ASSET TURN OVER
TOTAL ASSET TURNOVER

2022 2023 2024 2025 2026
GROSS
₱ 3,789,834.85 ₱17,158,161.53 ₱18,772,329.31 ₱20,936,211.04 ₱23,270,218.06
INCOME
TOTAL
₱14,508,054.05 ₱26,094,948.88 ₱39,335,365.16 ₱54,841,995.64 ₱72,786,366.15
ASSETS
RATIO 0.26 0.66 0.48 0.38 0.32
𝐺𝑟𝑜𝑠𝑠 𝐼𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑅𝑎𝑡𝑖𝑜 =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
FIGURE 74: ASSET TURNOVER RATIO
From the data presented in the figure above, we can see a falling trend in
ratio over the following three years of operations; there is also a decreasing
tendency from the third to the fifth year of operations due to the low gross income
growth rate. We can say that the company has somehow made a low growth rate
of gross income sales.

TABLE 289: FIXED ASSET TURNOVER RATIO
FIXED ASSET TURNOVER

2022 2023 2024 2025 2026
GROSS
₱ 3,789,834.85 ₱17,158,161.53 ₱18,772,329.31 ₱20,936,211.04 ₱23,270,218.06
INCOME
FIXED ASSET ₱ 6,892,227.99 ₱ 6,274,696.63 ₱ 5,657,165.27 ₱ 5,039,633.91 ₱ 4,422,102.55

RATIO 0.55 2.73 3.32 4.15 5.26
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑅𝑎𝑡𝑖𝑜 =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠
FIGURE 75: FIXED ASSET TURNOVER
FIXED ASSET TURNOVER
5.26
4.15
3.32
2.73
0.55
2022 2023 2024 2025 2026
As shown in the figure above, the year 2022 has a fixed asset turnover of
0.55 and increased to 2.73 in the year 2023. It keeps increasing the following
years. The fixed assets have a positive value trend for their turnover, which
indicates that the company's fixed assets were decreased and are inappropriate
for usage for the company's competitive edge, as evidenced in the graphical data
displayed.
INVENTORY TURNOVER
Inventory turnover pace at which inventory is sold, utilized, and replaced. It
is calculated by dividing the cost of products by the average inventory for the same
time.
TABLE 290: INVENTORY TURNOVER
INVENTORY TURNOVER
2022 2023 2024 2025 2026
COGS ₱ 1,945,866.14 ₱ 8,906,729.68 ₱10,183,076.72 ₱10,233,403.04 ₱10,491,615.99
INVENTORY ₱ 517,255.55 ₱ 1,696,519.94 ₱ 1,521,609.17 ₱ 1,395,464.05 ₱ 1,165,735.11
RATIO 3.76 5.25 6.69 7.33 9.00
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑅𝑎𝑡𝑖𝑜 =
𝐴𝑣𝑔. 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
FIGURE 76: INVENTORY TURNOVER
INVENTORY TURNOVER
9.00
7.33
6.69
5.25
3.76
2022 2023 2024 2025 2026
The Figure above shows the amount of inventory held in previous years.
The beneficial outcome of the company's inventory is also shown. According to
Investopedia, a higher inventory turnover indicates that things are sold more
quickly.
PROFITABILITY RATIO
Profitability ratios evaluate a company's capacity to profit from sales,
operations, balance sheet assets, and shareholders' equity. Profitability ratios
show how well a business creates profit and value for its owners.
TABLE 291: GROSS PROFIT RATIO
GROSS PROFIT RATIO

2022 2023 2024 2025 2026
GROSS
₱ 3,789,834.85 ₱17,158,161.53 ₱18,772,329.31 ₱20,936,211.04 ₱23,270,218.06
INCOME
SALES ₱5,735,700.99 ₱26,064,891.22 ₱28,955,406.03 ₱31,169,614.08 ₱33,761,834.06
RATIO 66.07% 65.83% 64.83% 67.17% 68.92%
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = ∗ 100%
𝑆𝑎𝑙𝑒𝑠
FIGURE 77: GROSS PROFIT RATIO

The figure shows the company's GPR for the next four years of operations.
The company is found to be profitable enough to cover its operating costs.
However, should the company wish to increase its profit further, in 2022-2024, the
yield will decrease due to the inflation rate, but it will increase in 2025-2026. The
management could find a means to reduce the cost of raw materials utilized in
operations while maintaining the amount and, more importantly, the quality of the
output they provide.
OPERATING MARGIN
It is a metric that assesses the effectiveness of a company's day-to-day
operations and pricing structures. This margin shows how much money a business
keeps after paying for things like payroll, taxes, and supplies.
TABLE 292: OPERATING MARGIN RATIO
OPERATING MARGIN RATIO

2022 2023 2024 2025 2026
OPERATING
₱ 3,807,834.85 ₱17,232,537.53 ₱18,849,308.47 ₱21,016,115.41 ₱23,352,998.99
INCOME
SALES ₱5,735,700.99 ₱26,064,891.22 ₱28,955,406.03 ₱31,169,614.08 ₱33,761,834.06
RATIO 66.39% 66.11% 65.10% 67.43% 69.17%
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = ∗ 100%
𝑅𝑒𝑣𝑒𝑛𝑢𝑒
FIGURE 78: OPERATING MARGIN RATIO
The figure above shows the company's operating margin increased to over
66.39 percent in its first year of operation. As a result, we may conclude that the
company still has room to cut operational costs to compete with other businesses
in the same industry. The company may have well-controlled costs and
expenditures supporting its operational activities, but they may still discover a way
to cut costs and spend more efficiently. To summarize, management should find a
strategy to reduce its operating costs and other expenses to enhance profit while
also ensuring that the quantity and, most importantly, the quality of its product are
not compromised.
RETURN ON ASSET
Return on assets is a measure of a company's profitability in relation to its
total assets. It tells a manager, investor, or analyst how effective a company's
management is in turning its assets into profits.
TABLE 293: RETURN ON ASSET
RETURN ON ASSETS RATIO

2022 2023 2024 2025 2026
NET INCOME ₱ 1,648,203.63 ₱ 9,643,061.80 ₱10,783,915.97 ₱12,301,010.93 ₱13,935,740.64
TOTAL
₱14,656,671.16 ₱26,651,118.33 ₱40,292,638.28 ₱56,205,748.30 ₱74,588,515.71
ASSET
RATIO 11.25% 36.18% 26.76% 21.89% 18.68%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡 = ∗ 100%
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
FIGURE 79: RETURN ON ASSETS RATIO
As shown in Figure 79 above the company's return on investment increased
to over 36.18 percent in the second year of operation. We can conclude that the
corporation uses its acquired assets well and gets the most out of them to assist
its operational activities. The business has effectively optimized its asset utilization,
and the asset's return on investment is positive. In contrast, management should
find a means to reduce its costs and other operating expenses to enhance profit
but not compromise the quantity or, more importantly, the quality of the product
they deliver. Furthermore, the careful acquisition of assets while maximizing their
utilization turns the asset into true support for the organization.
PAYBACK PERIOD
The payback period is the amount of time it takes for an investment to
recover its initial investment in terms of profit and savings. The payback period of
a particular investment is critical in determining whether to proceed with a project,
if the payback period is not excessively long, as this is not desirable for investment
actions.
TABLE 294: PAYBACK PERIOD COMPUTATION
PAYBACK PERIOD COMPUTATION

2022 2023 2024 2025 2026
INVESTMENT ₱ 15,000,000.00
CASH FLOW ₱ (83,221.76) ₱ 6,284,600.31 ₱16,029,317.79 ₱29,015,062.28 ₱44,685,265.06
CUMULATIVE
₱ (15,000,000.00) ₱ (15,083,221.76) ₱(8,798,621.45) ₱ 7,230,696.34 ₱36,245,758.62 ₱80,931,023.68
CASH FLOW
WHOLE YEAR 0 0 0 2 3 4
FRACTION 0.55 0.25 0.81
PAYBACK
3.24920
PERIOD
𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝑃𝑎𝑦𝑏𝑎𝑐𝑘 𝑃𝑒𝑟𝑖𝑜𝑑 =
𝑁𝑒𝑡 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤 𝑝𝑒𝑟 𝑃𝑒𝑟𝑖𝑜𝑑
Based on the computation, the payback period of Lucid Pinnacle
Manufacturing Company takes up to approximately 3.25 years or 3 years, 2
months, and 23 days since the start of its operations. It is the goal for the company
to regain the investment within five years. Therefore, we can say that the proposed
business of Lucid Timber Mahogany Liquid Wax is FEASIBLE.

SOCIO-ECONOMIC ASPECT 438
SCOPE OF SOCIO-ECONOMIC ASPECT
 Introduction
 Impact Report
 Benefits to Societal Sectors
 Sensitivity Analysis
 Chemical Polyurethane Safety Precautions

INTRODUCTION
Essentials of Marketing, by Geoffrey Lancaster and Lester Massingham,
emphasizes a company's responsibility to design a marketing strategy that
addresses the welfare of society. Individual consumers, who make up society and
are typically at the heart of every firm, play an important role in determining its
growth. As a result, every organization must examine the fundamental traits that
will effectively affect customers.
The socio-economic aspect is considered wherein the business should
also be concerned with its social responsibility; to improve its positive effects. Lucid
Pinnacle Manufacturing Company aims to satisfy its clients with its products while
also contributing to Cebu's economic development by creating jobs that will benefit
many community sectors and, in turn, raise everyone's living standards.

IMPACT REPORT
The Lucid Pinnacle Manufacturing Company recognizes the significance of the
socioeconomic aspect The company will do all possible to fulfill its social
responsibility and ensure that its operations are environmentally sustainable. It
would not be only concerned with profit maximization, but also with the well-being
of the community. The manufacturing of Lucid Timber Mahogany Liquid Wax
follows all the mandated requirements of the Government. Lucid Timber
Mahogany Liquid Wax can guarantee its customers that they provide safe and
excellent quality products.

BENEFITS TO SOCIETAL SECTORS
Lucid Pinnacle Manufacturing Company aims to maximize earnings while also
contributing to the community's betterment. The planned business's beneficiaries
are listed below.
PHILIPPINE ECONOMY
The formation of this company creates a large number of job opportunities, which
will assist to alleviate poverty and support local workers. This company can also
help to increase market rivalry, resulting in a lower product price.
GOVERNMENT
Lucid Pinnacle Manufacturing Company would greatly benefit the government
by paying its taxes. Through these taxes, the government would then implement
projects that would benefit the community's people.
SUPPLIERS
A good relationship with suppliers will pave the way for more excellent deals. The
business needs reliable suppliers to provide the required materials, and suppliers
need to deliver these materials to increase their sales and generate high income.
CONSUMERS
The customers would be given a chance to try a new kind of Lucid Timber
Mahogany Liquid Wax and excellent quality product to provide alternative to
Cebuano.
COMMUNITY
The success of the business is not only for the company alone but also for
society. This business will help increase Cebu's economic status by providing job
opportunities and decreasing poverty due to unemployment.
COMPETITORS
Establishing a new business in the area is a significant factor in increasing
competition in the industry. It provides a challenge factor and motivation for any
business to keep up with any competitors' improvement in marketing strategies
and unique product delivery.

FIGURE 80: SCHEMATIC DIAGRAM
Lucid Pinnacle
Manufacturing Company
Economy Government Suppliers Consumers Community Competitors
Job New Quality Job

Taxation Motivation
Opportunities Customers Product Opportunities
Consumer’s
helps increase Gains funds Sustainability
Increase expectation Provides job
employment for public of the
profits and will be met opportunities
rate and services on business and
partnership according to to
lowers different healthy
loyalties the quality unemployed
poverty rate sectors competition
produced
SENSITIVITY ANALYSIS
The manufacturing business will benefit from the suggested product. The
government must pay legal obligations such as taxes, the providers must produce
income, and the customers must purchase the goods to meet their demands. To
fulfill society's evolving requirements, Lucid Pinnacle Manufacturing Company
must maintain a culture of continual development in the manufacture of Mahogany
bark.
CHEMICAL POLYURETHANE SAFETY PRECAUTIONS
Polyurethanes in their natural state are usually considered to be
biochemically inert and will not pose a threat to the environment or pose problems
for consumer use. However, additives are often used in the manufacturing of
polyurethanes, many of which can be harmful.
Polyurethane compounds are safe to use provided that all the
manufacturer's recommendations are observed. The following safety
recommendations are aimed at manufacturing operations utilizing urethane resins
and hardeners (curatives).
The most important safety precaution is to become thoroughly familiar with
the urethane being used by reading the Manufacturers Safety Data Sheet (MSDS)
that was supplied with the products.
The following is a check list of important safety items that should be
reviewed when using these compounds:

FINDINGS AND CONCLUSION 447
FINDINGS AND CONCLUSIONS
I. FINDINGS
a. PROJECT SUMMARY
i. NAME OF THE BUSINESS: Lucid Pinnacle Manufacturing
Company
ii. PROPOSED PRODUCT: Lucid Timber Mahogany Liquid
Wax
iii. PROPOSED SITE: Brgy. Tingub, Mandaue City, Cebu, 6014
iv. NATURE OF BUSINESS: MANUFACTURING
b. BRIEF DESCRIPTION OF THE STUDY
This study was conducted to provide wood color enhancement
to wood furniture and floorings to residents of Cebu by enhancing the
color of their wood with the color mahogany brown using mahogany
bark powder and polyurethane. In conducting the study, five (5)
aspects were considered to ensure that this proposal will functionally
operate its productions successfully and can penetrate the existing
market of wood color enhancement or wood paint industries.
i. MARKETING ASPECT
The target market is identified through the bases and
types of market segmentation. Primarily, geographic
segmentation was determined in which consumers living in
Cebu City, Cebu Province, Mandaue City, and Lapu-Lapu City.

Households that have wood furniture and floorings were
demographically segmented and with the willingness and
ableness to buy the product were psychographic segmented by
the proponents. The market share of the company is 3.81%
when it starts operating in the year 2022.
ii. TECHNICAL ASPECT
The Lucid Pinnacle Manufacturing Company is to be
located at Brgy. Tingub, Mandaue City, Cebu. The targeted
location is chosen to permit the easy distribution of products
to the market and easy access to raw materials. In this aspect,
the building's cost, the supplier of the materials, equipment,
and machinery needed is determined. Moreover, the product
process chart, production process analysis is also shown to
validate essential data.
iii. MANAGEMENT ASPECT
Lucid Pinnacle Manufacturing Company is composed
of 20 to carry out daily operations and lead and manage the
company. These are the General Manager, Marketing Officer,
Accountant, Inventory Clerk, One Production Supervisors,
Two Quality Control, Maintenance Head, Four Production
Worker, Two Security Guards, Driver, and Utility Man.
Moreover, the hired Production Workers and Production

Supervisors will undergo training to properly carry out the
functions and meet the company's benefit's desired
performance.
iv. FINANCIAL ASPECT
Based on the computations, the payback period for
Lucid Pinnacle Manufacturing Company is 3.23 years. It
indicated that the company would be able to regain their
investment within 5 years. Thus, the proposed study is
financially feasible.
v. SOCIO-ECONOMIC ASPECT
The proposed manufacturing of Lucid Timber
Mahogany Liquid Wax will be generating income
opportunities for the people. The company will also be
operating concerning the government's code of conduct,
rules, and regulations. It will also pay a reasonable amount of
tax to the government and render quality and safe products to
the consumers.
II. CONCLUSION
The proponents of the study concluded that the (insert feasibility title
here) is FEASIBLE in all aspects.

APPENDIX SECTION 451
1. Respondents’ preference of size of

the proposed product
o 500ml
o 1000ml
o 2000ml or half gallon
o 4000ml or one gallon
2. Are you able to purchase our
proposed product based on your
monthly income/allowance?
o Yes
o No
3. Respondents preferred advertising
means
o YouTube
o Facebook
o Instagram
o Newspaper Ads
o Radio Commercial
o Billboards
4. Respondents preferred place of
purchasing proposed product
o Online Shopping
o Local Hardware Enterprises
o Hardware Stores at Malls
5. Age of Respondents
o 21-30
o 31-40
o 41-50
o 51-60
o 60 above
6. Address of Respondents
o Cebu City
o Mandaue City
o Lapu-Lapu City
o Within Cebu Province
7. Monthly Household Income
o Less than or equal to Php
50,000
o Php 50,001-Php 100,000
o Php 100,001-Php 150,000
o Greater than Php 150,000
8. Respondents that have wooden furniture/floorings

o Yes
o No
9. Have you heard about mahogany bark liquid wax?
o Yes
o No
10. How often do you apply color enhancement in your
wooden furniture/floorings?
o Weekly
o Once a month
o Once every two months
o Once every four months
o Never
11. The brand of color enhancement product the
respondents preferred
o Boysen
o Island Paint
o Davies Sun and Rain
o Others
12. How often do you buy wood color
enhancement/coating products?
o Once a month
o Once every two months
o Once every four months
o Never
13. Respondents’ willingness to avail Lucid Timber
Liquid Wax
o Yes
o No
14. Respondents’ willingness to avail proposed product
at different price range
o Bellow Php 100
o Php 101-Php 200
o Php 201-Php 300
o Above Php 300
University of Cebu-Main
Campus
College of Allied Engineering
Dear Respondents:
We are 4th year Industrial Engineering students at the University of Cebu-Main
Campus, and we are now enrolled in IE 411, Project Feasibility Study. We're looking
into the effectiveness of Mahogany Liquid Wax. It's constructed entirely of mahogany
bark.
In line with this, we'd like to ask for a few minutes of your time to complete the survey
questions for data collection. Your response will be extremely helpful in finishing this
study. All information received is kept in strict confidence and is only used for our
research.
Thank you for your cooperation.
Yours Truly,
The Proponents
Camilotes, Zaira A.
Embalzado, Christine C.
Matunog, Cristofer
Mercado, Jeffsymel

University of Cebu-Main
Campus
College of Allied Engineering
Dear Sales Personnel:
We are 4th year Industrial Engineering students at the University of Cebu-Main
Campus, and we are now enrolled in IE 411, Project Feasibility Study. We're looking
into the effectiveness of Mahogany Liquid Wax. It's constructed entirely of mahogany
bark.
In line with this, we'd like to ask for a few minutes of your time to conduct an
interview. Your response will be extremely helpful in finishing this study. All
information received is kept in strict confidence and is only used for our research.
Thank you for your cooperation.
Yours Truly,
The Proponents
Camilotes, Zaira A.
Embalzado, Christine C.
Matunog, Cristofer
Mercado, Jeffsymel

ARTICLES OF GENERAL PARTNERSHIP

OF
Lucid Pinnacle Manufacturing Company
ARTICLE I. Parntership Name:

That the name of this partnership shall be Lucid Pinnacle
Manufacturing Company and shall transact business under the said company
name.
ARTICLE II. Business Purpose: That the purpose/s for which this partnership is
formed is/are:
is to produce Lucid Timber Mahogany Liquid Wax in order to achieve
business sustainability and to penetrate the market for wood color enhancement
and coating
ARTICLE III. Principal Place of Business: That the principal place of business
of this partnership shall be located at :
Brgy. Tingub, Mandaue City, Cebu.
ARTICLE IV. Term of Existence: That this partnership shall have a term of
______years from and after the original recording of its Articles of Partnership by the
Securities and Exchange Commission.
ARTICLE V. Partners’ Circumstances: That the names, nationalities and

complete residence addresses of the partners are as follows:
Name Nationality Complete Residence Address

Matunog, Cristofer Nino Filipino G. Ouano St. Umapad, Mandaue City, Cebu
C.
Mercado, Jeffsymel Filipino Tanke, Talisay City, Cebu
Rodrigo, John Christian Filipino J. De Veyra St. North Reclamation Area,
Carreta, Cebu City
Camilotes, Zaira Filipino Deca Homes Mactan 4 Bankal Ticgahon,
Lapu-Lapu City
Embalzado, Christine Filipino Fatima, Rosario, Aloguinsan Cebu
Bernal, Milagros P. Filipino Apitong Street, Ayala, Cebu City, Cebu
ARTICLE VI. Capital Contributions: That the capital of this Partnership shall be
the amount of ____________ (P_________), Philippine Currency, contributed in cash by
the partners, as follows:
Name Amount Contributed (in Php)

Matunog, Cristofer Nino C. 2,000,000.00
Mercado, Jeffsymel 2,000,000.00
Rodrigo, John Christian 2,000,000.00
Camilotes, Zaira 2,000,000.00
Embalzado, Christine 2,000,000.00
Maita P. Bernal 5,000,000.00
That no transfer of interest which will reduce the ownership of Filipino citizens to
less than the required percentage of capital as provided by existing laws shall be allowed
or permitted to be recorded in the proper books of the partnership.
ARTICLE VII. Sharing Ratios: That the profits and losses of this partnership shall
be divided and distributed proportionately on the ratio of the capital contribution of each
partner.
ARTICLE IX. Management: That this partnership shall be under __________,

as General Manager, who shall be in charge of the management of the affairs of the
company. He shall have the power to use the partnership name and in otherwise
performing such acts as are necessary and expedient in the management of the firm and
to carry out its lawful purposes.
ARTICLE X. Undertaking to Change Name: That the partners undertake to

change the name of this partnership, as herein provided or as amended thereafter,
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another corporation, partnership or person has acquired a prior right to
the use of that name or that the name has been declared as misleading, deceptive,
confusingly similar to a registered name, or contrary to public morals, good customs or
public policy.
IN WITNESS WHEREOF, we have hereunto affixed our signatures this ____ day
of ______, 20___, at ________.
MATUNOG, CRISTOFER NINO C. MERCADO, JEFFSYMEL
RODRIGO, JOHN CHRISTIAN CAMILOTES, ZAIRA AUZA
EMBALZADO, CHRISTINE C. BERNAL, MILAGROS P.

SUPPLY AGREEMENT
This Supply Agreement is effective [DATE],
BETWEEN: [INSERT NAME], the “Supplier”, a farm located at

Rosario, Aloguinsan, Cebu.
AND: Lucid Pinnacle Manufacturing Company, the

“Purchaser”, a company organized and existing located
in Brgy.Tingub, Mandaue City, Cebu.
WIRNESSETH:
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
AND AGREEMENTS HEREO CONTAINED AND FOR
OTHER GOOD AND VALUABLE CONSIDERATION, DULY
RECEIVED, THE PARTIES HERETO AGREE
AS FOLLOWS;
1. DEFINITION AND INTERPRETATION
1. Whenever used in this Agreement, the schedules thereto, or
any ancillary document hereto, the following terms, unless the
subject matter or context otherwise requires, shall have the following
meanings:
1. “Agreement” means or refers to this Agreement as amended
from time to time and any indenture, agreement or instrument
supplemental or ancillary hereto or in implementation hereof;
2. “Business Day means any day excluding Saturday, Sunday,
and any other day which in the CEBU PROVINCE is a legal
holiday or day on which financial institutions are authorized by
law or by local proclamation to close;
3. “Person” means any individual, company, corporation, firm,

trust, sole proprietorship, government or entity howsoever
designated or constituted; and
4. “Product” means or refers to “Mahogany Bark” sold pursuant
to this Agreement.
2. The division of this Agreement into articles and insertion of
headings is for convenience and reference only and shall not affect
the construction or interpretation of this Agreement.
3. All peso amounts referred to in this Agreement are in lawful
money of the PHILIPPINES.
4. The preamble hereto forms and integral part of this
Agreement.
2. SALE AND PURCHASE OF PRODUCTS
[INSERT NAME], hereby agrees and undertakes to sell of the purchaser,
and the purchaser agrees and undertakes to purchase from [INSERT
NAME], for the price and subject to terms and conditions contained herein,
the total requirements of Product needed by the purchaser for its day-to-
day manufacturing and distributing activities during the term of this
Agreement, the Purchaser estimates its requirements for the current year
at Php 20.00/kg of Mahogany Bark.
3. ORDER AND PICK UP OF PRODUCTS
1. Each order for Products purchased pursuant to this
Agreement shall be in written and shall be sent to the address of the
party selling the Products by email or contact number.
2. Unless otherwise expressly agreed upon between the parties
or as provided in Section 4, the party selling the Products shall be
responsible and shall pay for the pick-up.
3. Unless otherwise expressly agreed upon between the parties,
the pick-up of the product purchased hereunder shall be completed
within two (2) business days of the receipt, by the party selling the
product of the written order for such product.
4. In the event that a party fails to deliver the product requested

in an order within the period provided in subsection 3.3 hereinabove,
the purchasing party shall be entitled to purchase, from any person,
a quantity of Products equal quantity of products equal to quantity of
products specified in such order. In such a case, the purchasing party
shall be entitled to cancel the order for the product specified in the
order. The purchasing party shall, at the same time an order is made
to another person pursuant to this subsection, send to the other
party, a copy of such order indicating the quantity and the price of
the product so purchased.
5. The title to the products sold hereunder shall pass from the
selling party to the purchasing party upon complete payment of the
purchase price of the products mentioned in Section 4 hereinafter.
The risks of lost or damage to such products sold hereunder shall
pass from the selling party to the purchasing party at the date of the
delivery of the products.
6. Each party shall insure the products purchased by it
hereunder for the period starting on the date of receipt of the
products and terminating when complete payment for such products
is made and, upon request, shall provide the other party with the
documents evidencing that the Products are so insured.
4. PRICE OF PRODUCT
1. For the initial term of this Agreement stipulated in subsection
6.1, the price of the product sold by [INSERT NAME] to the purchaser
here under shall be Php 20.00/kg.
2. The prices of the products sold pursuant to this Agreement
during any subsequent term provided for in subsection 6.1
hereinafter shall be mutually agreed upon by the parties hereunder.
5. TERMS OF PAYMENT
1. Each party shall pay to the other party at its address
hereinabove mentioned, within [NUMBER] calendar days from the
date of receipt of the product purchased, the price for such product
as determined pursuant to section 4 hereinabove.
6. TERM OF AGREEMENT
6.1 Subject to the provisions of sub-sections 6.2 to 6.4 hereinafter, this
Agreement shall be in force for an initial term of one year commencing on
the date of signature. This Agreement shall be automatically renewed for
additional [NUMBER IN LETTERS] ([NUMBER]) year terms unless either
party terminates it upon written notice given to the other party at least
([NUMBER]) calendar days prior to the end of the initial term or of any
subsequent terms.
6.2 Notwithstanding the provisions of subsection 6.1, this Agreement shall
be automatically terminated in the event that the parties hereto fail to agree
in writing, at the latest on the thirtieth day preceding the beginning of any
subsequent term as provided for subsection 4.3 hereinabove.
6.3 Notwithstanding the provisions of subsection 6.1 and in addition to
section 6.2, either party shall be entitled to terminate this Agreement prior
to expiry date upon the occurrence of any default or omission of the other
party to fulfill any of its obligations under this Agreement or any terms and
conditions of this Agreement, on the [NUMBER] calendar day following the
sending of written notice to such defaulting party has remedied said default
or omission within the said [NUMBER] days. The termination of this
Agreement as aforesaid shall cause a termination of same for all parties to
this Agreement even if one party is not in default under this Agreement.
6.4 Any party may, at its sole discretion, refuse to execute any order of any
party remaining unexecuted at the date of expiration or termination of this
Agreement or in case of default of any party to fulfill any of its obligations
under this Agreement.
6.5 All obligations or liabilities of the parties accrued on the date of
expiration or termination of this Agreement shall survive such expiration or
termination.
7. FINAL PROVISIONS
7.1 The provisions of this Agreement shall, except as otherwise provided
herein, ensure to the benefit of and be binding upon the parties hereto
and their respective, executors, administrators, successors, and assigns
and each and every person so bound shall make, execute and deliver all
documents necessary to carry out this Agreement.
7.2 This Agreement constitutes the entire agreement between parties with
respect to the subject matter hereof and the transactions herein
contemplated and replaces all previous agreements and understandings, if
any, between the parties with respect to the subject matter hereof and the
transaction contemplated herein.
7.3 Time shall be of the essence of this Agreement.
IN WITNESS WHEREOF, each party to this agreement has caused it to be
executed at [INSERT ADDRESS] on the date indicated above,
SUPPLIER PURCHASER
Authorized Signature Authorized Signature
Print Name and Title Print Name and Title

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INTERVIEWS
 LARGE SCALE HARDWARE STORES
o SALES PERSONNEL AT WILCON DEPOT INC., MANDAUE CITY
o SALES PERSONNEL AT BELMONT HARDWARE DEPOT,
MANDAUE CITY
o SALES PERSONNEL AT CEBU HOME AND BUILDERS CENTRE,
MANDAUE CITY
o SALES PERSONNEL AT CITIHARDWARE, CEBU CITY
o SALES PERSONNEL AT ATLANTIC HARDWARE, CEBU CITY.
o SALES PERSONNEL AT ACE HARDWARE, SM CEBU CITY.

o SALES PERSONNEL AT CEBU BIONIC BUILDER SUPPLY,
CEBU CITY
o SALES PERSONNEL AT DUMLOG HOME DEPOT, TALISAY
CEBU
o SALES PERSONNEL AT ACE HARDWARE LAPU-LAPU CITY
o SALES PERSONNEL AT CEBU HOME AND BUILDERS CENTRE,
LAPU-LAPU CITY
 SMALL-TO-MEDIUM SCALE HARDWARE ENTERPRISES
o SALES PERSONNEL AT CEBU ICON HARDWARE, TALISAY
CEBU
o SALES PERSONNEL FAMILY HARDWARE & CONSTRUCTION
SUPPLY, CONSOLACION CEBU
o SALES PERSONNEL BOSTON HARDWARE INC., MANDAUE
CITY
o SALES PERSONNEL LR SANCHEZ, MANDAUE CITY
o SALES PERSONNEL SUSON LUMBER, MANDAUE CITY
o SALES PERSONNEL QUERUBUIN CONSTRUCTION SUPPLY,
MANDAUE CITY
o SALES PERSONNEL ALFONSO CO HARDWARE, LAPU-LAPU
CITY
CRISTOFER NIÑO C. MATUNOG
COLLEGE:
UNIVERSITY OF CEBU – MAIN CAMPUS (2018-PRESENT)

ADDRESS:
SENIOR HIGH SCHOOL:
G. OUANO ST. UMAPAD,
UNIVERSITY OF CEBU – LAPU-LAPU & MANDAUE (2016- 2018)
MANDAUE CITY, CEBU 6014
JUNIOR HIGH SCHOOL:
MOBILE NUMBER:
ST. JOSEPH’S ACADEMY MANDAUE CITY (2012-2016)
0998 100 0083
ELEMENTARY:
EMAIL:
CEBU NORMAL UNIVERSITY (2006-2008)
matunogcnm@gmail.com
ST. JOSEPH’S ACADEMY MANDAUE CITY (2008-2012)
PROFICIENT IN
ADOBE ILLUSTRATOR
AGE: 21
AUTO-CAD
GENDER: MALE
MICROSOFT OFFICE
CIVIL STATUS: SINGLE
MICROSOFT VISIO
CITIZENSHIP: FILIPINO
BIRTH DATE: 03/31/2000
RELIGION: ROMAN CATHOLIC

JEFFSYMEL A. MERCADO
COLLEGE:
UNIVERSITY OF CEBU – MAIN CAMPUS (2018-PRESENT)

ADDRESS:
SENIOR HIGH SCHOOL:
TANKE, TALISAY CITY, CEBU
UNIVERSITY OF CEBU – MAIN CAMPUS (2016-2018)
MOBILE NUMBER:
JUNIOR HIGH SCHOOL:
09335595113
CANSOJONG NATIONAL HIGH SCHOOL (2012-2016)
EMAIL:
ELEMENTARY:
jeffsymel06@gmail.com
SAN ROQUE ELEMENTARY SCHOOL (2006-2012)
PROFICIENT IN MICROSOFT OFFICE
COMPUTER SKILLS
AGE: 21
CREATIVITY
GENDER: MALE
INTERPERSONAL SKILLS
ADAPTABILITY SKILLS

JOHN CHRISTIAN RODRIGO
COLLEGE:
UNIVERSITY OF CEBU-MAIN (2018-PRESENT)

ADDRESS: 080 J. DE VEYRA ST.
SENIOR HIGH SCHOOL:
NORTH RECLAMATION AREA,
MABOLO NATIONAL HIGHSCHOOL (2016-2018)
CARRETA, CEBU CITY
JUNIOR HIGH SCHOOL:
MOBILE NUMBER:
MABOLO NATIONAL HIGHSCHOOL (2012-2016)
09454330314
ELEMENTARY: ALO ELEMENTARY SCHOOL (2006-2012)
EMAIL:
CHANNYWUTTY@GMAIL.COM
SINCERE AND HARDWORKING
KNOWLEDGE IN MS OFFICE (WORD, EXCEL AND POWERPOINT)

AGE: 21
ENTHUSIASTIC AND EAGER TO LEARN
GENDER: MALE
ABILITY TO MEET DEADLINES AND WORK UNDER PRESSURE
APPROACH PROBLEMS FROM MULTIPLE PERSPECTIVES

ZAIRA AUZA CAMILOTES
COLLEGE:
SENIOR HIGH SCHOOL:

ADDRESS: Deca Homes UNIVERSITY OF CEBU-LM (2016-2018)
Mactan 4, Bankal, Ticgahon, JUNIOR HIGH SCHOOL:
Lapu-Lapu City, Cebu BANKAL NATIONAL HIGH SCHOOL (2012-2016)
MOBILE NUMBER: ELEMENTARY:
09556759683 PUSOK ELEMENTARY SCHOOL (2006-2012)
EMAIL:
zairauzacamilotes@gmail.com
PROFICIENT IN MICROSOFT OFFICE (WORD, EXCEL.
POWERPOINT)
AGE: 22
COLLABORATION SKILL
GENDER: FEMALE
MANAGEMENT SKILL
FLEXIBLE SKILLS
BIRTH DATE:

CHRISTINE EMBALZADO
COLLEGE:

ADDRESS: Rosario,
SENIOR HIGH SCHOOL:
Aloguinsan Cebu
Rosario National High School (2016-2018)
MOBILE NUMBER:
JUNIOR HIGH SCHOOL:
09353480824
Rosario National High School (2012-2016
EMAIL:
ELEMENTARY:
embaladotine@gmail.com
Rosario, Elementary School (2006-2012)
PROFICIENT IN MICROSOFT OFFICE (WORD, EXCEL, PPT)
MANAGEMENT SKILL
AGE: 22
ADAPTABILITY SKILL
GENDER: FEMALE
COMMUNICATION SKILL

Final - Lucid Timber Liquid Wax Feasib Updated

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Final - Lucid Timber Liquid Wax Feasib Updated

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A PROJECT FEASIBILITY STUDY ON THE PROPOSED MANUFACTURING OF

MAHOGANY BARK LIQUID WAX AT TINGUB, MANDAUE CITY, CEBU

A Feasibility Study Presented to

Industrial Engineering Department of College of Engineering

University of Cebu Main Campus

Cebu City, Philippines

In Parial Fulfillment of the Requirements in

IE 411 (Project Feasibility Study)

Camilotes, Zaira Auza

Matunog, Cristofer Niño

Rodrigo, John Christian

Rationale of the Study i

Statement of the Problem ii

Significance of the Study iii

Research Methods and Instruments vii

Research Respondents viii

Scope and Limitation of the Study ix

II. MARKETING ASPECT

Sample Size Calculation 10

Profile of the Target Market 11

Summary of Survey Questionnaire Results 12

Demand Computation using the Four Methods of 28

Line Fitting of Past and Projected Demand 39

Basis for Supply Computation using the Four Methods of 41

Past and Projected Supply Summary 56

Line Fitting of Past and Projected Supply 58

Demand and Supply Gap 59

III. TECHNICAL ASPECT

Bill of Materials 101

Machineries & Equipment 106

Capacity Planning 128

Direct Material Re-order Point 149

Inventory Management 155

Cebu Port Authority’s Terms and Conditions 135

Freight Calculations 146

Manufacturing Process 157

Process Flow Chart 163

Flow Process Chart 165

Worker and Machine Process Chart 166

Space Requirements 171

Factor Rating of the Three (3) Locations 177

Manufacturing Layout 181

Material Handling 195

Quality Assurance Procedure 197

Maintenance Requirements 198

Uniform & ID Design 200

Waste Management 204

Occupational Health and Safety Management 210

Chemical Safety Procedure on Polyurethane 211

Safety Equipment 205

List of Establishments 212

Supply Chain Management 216

Cost Allocation 218

Overall Costs 235

Manpower Requirements 242

IV. MANAGEMENT ASPECT

Executive Summary 250

Major Assumptions 251