ABS: ACCLAIMED BOOK

STAND

BAYANI, Joseph Dean

BUAN, Gem
GAGUA, Jrick
MALICUDIO, ConniecarMarilag
PADOR, Beatrice
QUISMORIO, Krystal
RAMOS, John Phillip
 TABLE OF CONTENTS
Acknowledgement ............................................................................3
Executive Summary ...........................................................................4
Introduction ......................................................................................5
Company profile ...........................................................................5
Form of ownership ......................................................................5
Company logo and tagline .............................................................6
Mission and Vision of the Business ..................................................7
Objectives of the study .................................................................7
Store location ..............................................................................7

Management Aspect ..........................................................................9

Organizational Chart .....................................................................9
Descriptions and qualifications of each position ................................9
Certification/Registration (Include Pre-operating cost) ....................10
Duties and responsibilities of employees ......................................11
Employee salaries .....................................................................11
Employee benefits ......................................................................11
Office Equipment and Furniture and Fixtures .................................15
Depreciation Schedule ................................................................16
Administrative Expense ..............................................................17

Marketing Aspect .............................................................................18

Marketing Plan Objectives ...........................................................18
Product Overview .......................................................................18
Market description ......................................................................19
Analysis of the Survey Results and Recommendation ......................22
Demand and supply ....................................................................26
Competitive analysis ...................................................................27
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 TOWS Analysis ...........................................................................29
Projected sales or revenue ..........................................................30
Marketing program .....................................................................30
Product Strategy ................................................................30
Pricing Strategy .................................................................31
Place Strategy ...................................................................32
Promotional Strategy..........................................................32
Marketing/Selling Expense ..........................................................33

Technological Aspect .......................................................................34

Product description and use .........................................................34
Manufacturing Process ................................................................35
Labor Requirement .....................................................................43
Property and Equipment Requirement ...........................................44
Building and facilities ..................................................................45
Waste Disposal ..........................................................................46
Quality Control...........................................................................46
Production cost schedule .............................................................46

Financial Aspect ..............................................................................49

Total Project Cost .......................................................................49
Initial Capital Requirement ..........................................................50
Financial Assumptions .................................................................50
Projected financial statements (3-year period) ...............................51
Ratio analysis ............................................................................57
Break-even analysis ...................................................................58
Payback period ..........................................................................58
Selling Price Schedule ................................................................58
Production Cost Schedule ............................................................58

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 ACKNOWLEDGEMENT

The researchers would like to thank the people who contributed for
this feasibility study. This feasibility study, beyond the effort and ideas of its
researchers, was aided by different persons through their insights and
guidance.
First of all, the researchers would like to give their foremost gratitude
towards the Almighty God, who makes all the things possible for the
fulfillment of this paper.
Second group of people are the researchers’ families for all the support
they have given for the accomplishment of this study. The financial and the
moral aid they have impart for the whole improvement of the study.
Next is our advisor, Mr. Al Jason A. Gallardo who has greatly shared
his knowledge to us, for the citations and the guidance in this feasibility
study.
The researchers would also like to cite Google for providing knowledge
and some images for some parts of the study as well as the additional
information for the betterment of the study.
And most especially to the respondents who gave their opinions and
suggestions which make this study possible. Their feedbacks are the basis
for each aspect of this study and for that, the researchers are greatly
thankful for each of them.

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 EXECUTIVE SUMMARY
A. Background of the Business

Personalization has become a driving force behind a successful business venture.

Acclaimed Book Stands is a manufacturer of customized bookstands offering consumers
with a wide selection of choices as to the design, features, functions and portability of
the product. The business strives to achieve a high return by providing special book
stands to meet the unique needs of consumers, as it is involved in providing an
exceptional and enjoyable experience with innovation and flexibility in mind.The
venture also promotes the employment of eco-friendly materials to recognize the
importance of working towards a healthy and sustainable environment.

B. Management Highlights

The business is operated in the form of General Partnership, where all partners are
considered capitalist partners. The general manager, store personnel and workers are
entitled to equitable salaries and benefits. Two workers are in charge of the production
and one selling personnel are responsible for the store, while one manager supervises
them all.

C. Marketing Highlights

The business recognizes students as the primary market, as bookstands are helpful
tools for studying and reading. Thus, the enterprise is positioned along the University
belt and in virtual stores, to boost product awareness and understanding. The company
will use brochures, leaflets and tarpaulins for promotion. Product information may also
be found on the company website as well as social media sites such as Facebook,
Twitter and Instagram. The proposed price for a regular bookstand and a customized
one starts from P500. The customized book stand can vary its prices based on the
customizations preferred by the customers. A vast majority of the survey respondents
are also keen on purchasing customized bookstands made from nature friendly
materials to accommodate their needs, as there is consideration of supply chain
environmental impact. As other goods, the product entails cost but is exceeded by
benefits as the product campaigns for increase in productivity and overall improvement
of users.

D. Financial Highlights
Starting up with a capital investment amounting to 485,582.20 with its financing
expected from partners, the company will be profitable with its payback period of less
than a year (.9159 years or approx.11 months). The ROA and ROE, from the financial
statements are 35% (35.03%) and 46% (46.14%). The minimum cash balance is from
30% of the expected operating expenses. Raw materials inventory is 10% of the cost of
raw materials to be purchased.

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 INTRODUCTION
A. Company Profile

Acclaimed Book Stands is a manufacturing business aimed at delivering

convenient reading aids to promote a higher level of learning and overall
improvement. The company takes pride in working towards safeguarding the
environment by employing nature-friendly materials. We offer bookstand
customizations in terms of customer preferences ranging from the design,
additional features, functions and portability of the product. We also accept
requests to cater to the unique needs of our customers to ensure full
enjoyment while reading.

B. Form of Ownership

The business is operated in the form of General Partnership, where all

partners are considered capitalist partners. Each partner will be contributing
cash amounting to P69, 368.89, to form a total capital of 485,582.20.
A partnership is a contract, made orally or in writing, where two or more
individuals bind themselves to contribute to a common fund, and
proportionally share the resulting profits or losses of the business. The
properties contributed, such as money, property or industry, becomes the
property of the partnership, and will be utilized for operations.
It is a juridical entity, having a distinct personality from its individual
partners. The entity may enter into contract with other persons and entities
under the partnership name. Each partner is considered an agent and has a
fiduciary duty to the partnership and to his copartners, where partners
acting within the normal operations and given specific authority, bind the
partnership. Thus, the entity and the partners can be sued when a partner
wrongfully acts or breaches trust. Aspects regarding this legal entity are also
determined by law.
Generally, each partner has a joint obligation for the responsibilities and
liabilities of the entity. The law allows for partnership dissolution for any
justifiable reason where the circumstance is not prejudicial to third parties
and does not involve breach of contract. Consequently, a new partnership
may be formed by the remaining partners. It may also be terminated when
the partnership ceases operations.

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 A General Partnership is an arrangement where all partners are general
partners, who jointly have unlimited liability. The liabilities of the partners to
partnership creditors extend to their personal properties, after the
partnership assets are exhausted. The partners also constitute an agreement
to divide management duties and obligations, and share in the profits or
losses in an equitable manner that is assumed in equal proportions unless
otherwise stated.

C. Company Logo and Tagline

"Want ABS? We got them here -- Match your personality with

Acclaimed Book Stands – paper machéd bookstands, personally
designed for your own needs and perfectly fit for your comfort and
liking. Have the power to do more!”
The convenience that Acclaimed Book Stands brings caters to those
who share the passion of furnishing innovative and nature friendly design
that is the main strength of the product, characterized by the name or
acronym of the business and lean arms on the company logo.
The value of tailoring a product to meet customer preference helps in
enabling maximization of an individual’s potential. It elevates the customer’s
worth that raises satisfaction and loyalty. This paves the way to delivering
innovative designs that boosts overall progress and improvement.

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 D. Mission Vision

Mission
Our mission is to serve our customers with bookstands to help enrich their
minds and improve their skills for their own success. The founders of the
company are giving their efforts to serve the customers with a variety of
designs available for them to choose from.
Vision
To be a world class provider of customized bookstands, giving people their
own identity, and at the same time enjoying the hobby of reading not just
because of reading itself, but also because of the bookstands that they have.

E. Objectives of the study

SMART (Specific, Measurable, Attainable, Realistic and Time-bounded)
Being a new entrant in the market, Acclaimed Bookstands aims to
establish its reputation as an extraordinary bookstand that is more portable,
stylish, and provider of many other functions that the existing bookstands in
the market cannot offer. The company aims to establish its reputation and
become well-known within a span of a single academic year.
After an academic year since the commencing of operations, Acclaimed
Bookstands will have already been promoted and advertised effectively
through the efficient use of a variety of advertising methods and more
importantly, by word of mouth of the students who are studying for their
exams for the academic year. As students see others that are using the
Acclaimed Bookstand, many will learn about the product and become
potential customers.

F. Store location
a. Location Accessibility
The ABS (Acclaimed Book Stand) store will be located at University Belt
along Recto Avenue. It is a small stall whereas various samples are
displayed to let customers choose the features they preferred and the
designs they want for the product.
It is accessible through different public transportations: LRT Stations
Doroteo Jose and Recto; jeepneys and busses going to Quiapo/Recto.
 From Quezon City : take any jeep or FX bound for Quiapo via España

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 From Mandaluyong, Pasig, Cainta or Antipolo : Take a G-Liner bus,
jeep, or FX bound for Quiapo. Alight at Mendiola and transfer to a jeep
bound for Divisoria
 From Pasay and Baclaran: Take a jeep or FX bound for Quezon City
(Cubao; Project 2, 3; Fairview) via España
b. Location Map

 The blue arrow is for the location of the store in Recto Avenue

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 MANAGEMENT ASPECT
A. Organizational Chart

GENERAL
SUPERVISOR

STORE PERSONNEL WORKER

B. Descriptions and Qualifications

GENERAL SUPERVISOR
JOB SPECIFICATION
 Male or Female at least 25 yrs. old
 Graduate of any Diploma Course Regarding Business
Administration
 With at least 2 years of experience in Business Management

JOB DESCRIPTION
 Responsible for managing marketing, advertising and
promotional staff and activities at a company or organization.
 Takes steps to measure, enhance, and enrich the position and
image of a company through various goals and objectives.
 Supervises the work of his employee.

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 STORE PERSONNEL

JOB SPECIFICATION
 Male or Female at least 25 yrs. old
 Graduate in management course
 Should have an experience working as a cashier
 With good communications skills
 Without criminal record

JOB DESCRIPTION
 A person who can be trusted in securing the money
 Knowledgeable in marketing a product
 In charge in receiving payments from customers
 Responsible in maintaining the good quality of the product

WORKER

JOB SPECIFICATION
 Male or Female at least 25 yrs. old
 At least graduate in high school
 Preferably with 3 or more years of experience in a production
company
 Should have an artistic skill (e.g. know how to draw or paint)

JOB DESCRIPTION
Provide processing and designing support in order to bring the product
to finality. They are required to possess skillfulness to perform physical
work.
C. Certification/Registration
1. Securities and Exchange Commission – A fee
must be paid to the SEC in order to register the
business. The SEC is the agency of the
government responsible for regulating the
securities industry in the Philippines.

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 2. Barangay Clearance – In order to operate, the
business must pay a fee to the barangay where
the business is located.
3. Mayor’s Permit – A fee must be paid in order to
obtain the Mayor’s Permit at the city where the
business is located.
4. BIR – The authority to print receipts or invoices
must be secured by the BIR and a certain must be
paid.

D. Duties and Responsibilities

General Store Personnel Worker

Supervisor

The general The store The workers are in charge of

manager oversees personnel are in gathering the materials needed for
the operations charge on the the bookstand, creating the paste,
and financial overall sales and and tearing the papers into small
components of distribution of the pieces. They are responsible of
the firm. products in the making the base of the bookstand,
store. pasting the shredded papers onto
the base, and adding the
customizations as specified by the
customers. They are also in charge
of painting and varnishing.

E. Employee Salaries

The general manager is to receive a monthly salary of P15, 000.

The store personnel and the operations workers are entitled to P13, 980
each.

F. Employee Benefits

Listed below are employee benefits and incentives that are given to aid in
the financial security of workers, and also contribute to the business’
development and stability.

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Benefits Mandated by the Government

Social Security System

Employees of private enterprises are required to register as members of
SSS, as mandated by RA 8282. This seeks to assist and protect members
against hazards of sickness, disability, maternity, retirement, death or other
contingencies resulting in financial burden or costs.
In the event of injury, illness or maternity, a daily cash allowance may be
given for the number of days the member is not able to work due to the
sickness or related childbirth or miscarriage. In the event of a permanent
partial or total disability, retirement, or death, a monthly or lump-sum cash
amount may be given to the members or beneficiaries. Burial grant
amounting to P20,000 is also be paid to whoever advanced the funeral
expense. A salary, cash loan may also be granted to a currently-paying,
employed member that is designed to cater for the member’s short-term
financial needs. The company and employee will contribute an amount
depending on their salary bracket monthly, in exchange for the said benefits,
as determined by the organization.

Philippine Health Insurance

PhilHealth is the medical insurance company of the country. Every employee
is required to give contributions, as members and their dependents are
given health and hospitalization subsidies in the event of medical need or
hospitalization (RA 7875). The company and employee will contribute an
amount, as determined by the enterprise.

Home Development Mutual Fund

Employers are required to contribute, on behalf of employees, to HDMF (RA
7835), also known as the PAG-IBIG fund, as it provides members with
savings through loans for land acquisition, and lower interest housing that
are payable up to thirty years. The company will contribute an amount that
can be deducted from the employee’s wages, to give the workers a chance
to own housings at a low cost.
13th Month Pay
All employees are entitled to a monetary benefit, computed pro-rata based
on the number of months of a year that the worker has rendered service to
his employer (Presidential Decree No. 851). The company will grant this
year-end bonus, which is generally equivalent to the employee’s one-month
basic compensation, to be given no later than the 24th of December of each
full year employed.

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Meal and Rest Periods
All employees are entitled to a one-hour break on a regular, eight-hour work
day, as stated in Article 83 of the Labor Code of the Philippines. The workers
are also entitled to adequate periods of rest or snack breaks, in short
durations normally lasting for fifteen minutes, in the morning and afternoon,
that will be included in total hours worked, so as to contribute to a healthy
working condition.

Overtime Pay
Employees working and rendering basic services for more than the regular
eight hours per working day shall be given additional pay equivalent to the
worker’s regular wage plus twenty-five percent thereof, to represent his
overtime pay.

Other Benefits Not Mandated by the Government

Christmas Bonus
This benefit is determined by the business, given every December, as
additional to the thirteenth month pay, and is considered as a gift to the
employees.

Cost of Living Allowances

The company will provide adequate yearly allowances covering the cost of
living of the employee.

Holidays
The company also grants their employees additional paid holiday, on top of
the mandated five days per year leave with pay.
If the employee is to work during regular holidays, he will receive 100%
premium of his regular salary.
Regular wage is also given in the event the employee does not render
services.
Regular Holidays
New Year's Day January 1
Maundy Thursday Varies
Good Friday Varies
Day of Valor April 9
Labor Day May 1
Independence Day June 12
National Heroes Day August 30
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
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If the employee is to work during the non-working days, he is to receive
30% premium of his regular salaries.
Regular wage is also given in the event the employee does not render
services.
Special Nonworking Holidays
Chinese New Year Varies
Black Saturday Varies
Ninoy Aquino Day August 21
All Saints' Day November 1
Christmas Eve December 24
Last Day of the Year December 31
Additional Nonworking Holidays Declared

Other Conditional Benefits

Service Incentive Leave

Every employee who has rendered services to a company for at least one
year is granted a five-day leave, with pay, per year, as stated in Article 95 of
the Labor Code. The company may also opt to have the workers do a
mandatory leave, with pay, in the event the employees do not avail of the
paid leaves. This can also be converted to equivalent cash amounts, at the
discretion of the organization.

Parental Leave for Single Parents

Employees who have rendered at least one year of service to the company
and who have sole responsibility of caring for their child and family shall also
be granted the parental leave, with full pay, covering not more than seven
working days per year. (RA 8972)
The privilege is granted under the conditions that the employee has
rendered at least one year of service, has presented a Solo Parent
Identification Card to the employer, and has given notice, within a
reasonable period, to the employer to avail such privilege.

Separation Pay
The separation pay is dependent upon the contract of employment. If the
termination is authorized for any causes under the Labor Code, provided by
the Department of Labor and Employment, such as introduction of labor-
saving devices, redundancy, retrenchment, closure or cessation, disease
prejudicial to the employee or co-employees’ health, or causing the
continued employment to be prohibited by law, separation pay must be
given. If termination is due to misdemeanors or misconduct, the employee
will not be granted such benefit of the separation pay.

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G. Office Equipment and Furniture and Fixtures

MANUFACTURING PROPERTY, PLANT AND EQUIPMENT

MACHINERIES FUNCTION/ QUANTITY UNIT TOTAL
AND PURPOSE COST ANTICIPATED
EQUIPMENT COST
Power drill Create holes 1 2 844.00 2 500.00
(Bosch Cordless on the
Drill: bookstand to (inc. shipping
http://www.laza allow screws costs)
da.com.ph/bosc and to keep
h-06019f40k0- it in place
gsr1000-
cordless-drill-
driver-blue-
529358.html)
TOOLS FUNCTION/ QUANTITY UNIT TOTAL
PURPOSE COST ANTICIPATED
COST
Tin Snips For cutting 1 611.00 700.00
materials
(Aviation tin (inc. shipping
which is
snips: costs)
difficult for
http://www.eba normal
y.com/bhp/tin- cutting tools
snips) like scissors

SELLING, GENERAL AND ADMINISTRATIVE PROPERTY, PLANT AND

EQUIPMENT
FURNITURE FUNCTION/ QUANTITY UNIT TOTAL
AND FIXTURES PURPOSE COST ANTICIPATED
COST
Large plastic Storing 3-5 900.00 4 500.00
storage box finished
products
(Black premium
which do not
quality box with
require
wheels:
immediate
http://www.plas delivery. Can
ticboxshop.co.u also be used
k/home- for storing
storage- large volume
c1/bedroom- orders.
and-bathroom-
organisation-

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 c16/loft-
storage-
c87/75lt-black-
premium-
quality-box-
with-wheels-
p2440)

Display glass To show 2 2 500.00 6 0

shelf products for 0
customers 0
passing by. .
0
0

OTHER NON-CURRENT ASSETS

Personal Central 1 15 15 000.00
computer information 000.00
processing
and storage
of the
company. To
help manage
the inventory
and compute
for daily
sales, etc.…

H. Depreciation Schedule

The depreciation method employed is the straight-line method. All

equipment and fixtures are depreciated with a 5-year life.

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I. Administrative Expense

Expense Total Amount

Rent Expense 60,000.00

Utilities Expense 24,000.00

Office Supplies 5,000.00

Pre-Operating Expense 115,395.00

Depreciation Expense 6,400.00

Total 210,795.00

Note:
1.) Information regarding Rent Expense, Utilities Expense, and
Office Supplies are found in Table 5 of the Financial
Aspect.
2.) Information regarding Pre-Operating Expense is found in
Table 1 of the Financial Aspect.
3.) Information regarding Depreciation Expense is found in
Table 4 of the Financial Aspect.

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 MARKETING ASPECT
A. Marketing Plan Objectives
ABS partnership aims to offer the market a functional and customized
bookstand. It provides the market: rare, unique and new product line of
bookstands. Through its eco-friendly components it aspires to give readers a
new and accommodating way of handling books.

B. Product to sell
PRODUCT OVERVIEW
Bookstands function as an aid for reading for book enthusiasts.
Common bookstands are made of wooden blocks and are a burden for
travelling from one place to another. Readers often find their spot on a
serene and calm place where their thoughts can freely exist. More often than
not, readers just read through a table or lap because they disregard the use
of bookstands for its size and weight. But with the help of our bookstands, it
is much easier to read and to comprehend reading materials with the
manner of reading and proper angle of the material. Because of this, readers
enjoy and benefit more with the use of bookstands.
Offering customized bookstands encourage readers to keep on
reading. With their choice of qualities like portability, designs, features and
additional functions, they can be suited to their own personality and lifestyle.
The Acclaimed Book Stand is not just a bookstand for mere reading, but is
also one that gives readers variety of choices and opportunities to address
their needs in order to achieve the full enjoyment and comfort while reading.
Our product offered will be a refreshing product for the market
because of the variety of customer benefits and convenience it can offer.
The product will be made from eco-friendly materials and base materials are
those for recycling, which makes it helpful for the environment as well.

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 Product offered
"Want ABS? We got them here -- Match your personality with Acclaimed
Book Stands –paper machéd bookstands, personally designed for your own
needs and perfectly fit for your comfort and liking. Have the power to do
more!”

Customizations Offered
Portability
 Foldable
 Sliding
 Light in weight
 Easy to carry

Preferred Design/ Personalized Design

 Customers can specifically order for their own personal
preference of colors, designs and customization.

Preferred Features and Functions

 Bookstands with penholders
 Bookstands with little cabinet for storage
 Customized functions base on customers’ needs and request

C. Market description
ABS target customers will be the students from universities along the
university belt who spend most of their time reading for academic purposes
or simply just for leisure. ABS will also be having an online purchase through
social media to reach other students from NCR.

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AREA COVERAGE
Acclaimed Book Stand will be manufactured at Rosarito Street near
University of Santo Tomas. It is a commercial building where we can lease a
space for manufacturing and storing of the product. This place also serves as
a location for meet-ups for customers who ordered the product through
social media.

The small store of ABS will be at Recto Avenue specifically in the line of
various second-hand bookstores. The proponents choose this place because
it can attract students who are buying books in the said place.

Why in University Belt?

 Our target market are students from different universities along U-belt
 It is near in Morayta where abundant second-hand books are being
sold to students from different universities around Metro Manila.
 Convenient and affordable rental fees in putting up a business.

Other known establishments surrounding University Belt are:

 Philippine Regulation Commission
 MalacañanPalace
 Quiapo Church
 Isetann Recto
 Centro Escolar University
 Far Eastern University
 La Consolacion College Manila
 San Beda College
 San Sebastian College – Recoletos de Manila
 Technological Institute of the Philippines
 University of the East
 University of Manila
 University of Santo Tomas

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LOCATION ACCESSIBILITY
ABC (Acclaimed Book Stand) is located in Nicanor Reyes Sr. St.
(formerly Morayta). It is accessible through different public transportations:
LRT Stations Doroteo Jose and Recto; jeepneys and busses going to
Quiapo/Recto.

 From Quezon City: take any jeep or FX bound for Quiapo via España
 From Mandaluyong, Pasig, Cainta or Antipolo: Take a G-Liner bus,
jeep, or FX bound for Quiapo. Alight at Mendiola and transfer to a jeep
bound for Divisoria
 From Pasay and Baclaran: Take a jeep or FX bound for Quezon City
(Cubao; Project 2, 3; Fairview) via España
 From Divisoria: Take a jeep or FX bound for San Juan or Cubao
 One may also take the LRT1 (Baclaran-Monumento) and alight at
Doroteo Jose station. From there, take a Morayta-Gastambide or
Cubao- Divisoria jeep to get off at the ABC store.
 One may also take the LRT 2 (Santolan-Recto) and alight at Recto
Station. From there, take a Morayta-Gastambide or Cubao- Divisoria
jeep to get off at the ABC store.

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 Location Map

 The blue arrow is for the location of the store in Recto Avenue

D. Interpretation / Analysis of the Survey Results and

Recommendation
SURVEY RESULTS

No. of
Percentage Rank
1. In what age bracket do you belong? Respondents
16-20 101 82.11% 1
21-25 22 17.89% 2
26-30 0 0.00% 3
Total 123

2. What course are you taking up and Mostly business courses in the 4th
what year level? year level.

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3. What is your usual purpose for reading?
For leisure 75 60.98% 2
For academic purposes 106 86.18% 1
For exploration and discovery 43 34.96% 4
For current news 46 37.40% 3
Others 3 2.44% 5

4. What manner of reading do you prefer?

Using a bookstand 36 29.27% 3
Merely holding the book 40 32.52% 2
Placing reading materials on top of the table
or lap 46 37.40% 1
Others 1 0.81% 4

5. Do you own a bookstand?

Yes 45 36.59% 2
No (If no, please proceed to Q7) 78 63.41% 1

6. How important is a bookstand when you read?

Not Important 9 20.00% 3
Important 36 80.00% 1
Very Important 13 28.89% 2

7. Do you support recycled products?

Yes 122 99.19% 1
No 1 0.81% 2

8. Want ABS? We got them here -- Match your personality Acclaimed Book
Stands - paper mached bookstands, personally designed for your own needs
and perfectly fit for your comfort and liking. Have the power to do more!
Do you prefer to have this kind of customized paper-mached bookstand?
Yes 98 79.67% 1
No (If no, please proceed to Q14) 25 20.33% 2

9. Which personal customization of bookstand do you want to have?

Portability/Flexibility 89 90.82% 1
Preferred Design 56 57.14% 3
Preferred Features and Functions 62 63.27% 2
Additional of Base Materials and Enhancers 29 29.59% 4
Others 1 1.02% 5
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10. Would you be willing to purchase this customized paper-mached
bookstand?
Yes 95 96.94% 1
No (If no, please proceed to Q14) 3 3.06% 2

11. How much is your annual household income?

200,000 and below 27 29.35% 2
201,000 - 300,000 13 14.13% 3
301,000 - 400,000 9 9.78% 4
401,000 - 500,000 6 6.52% 5
500,000 and above 37 40.22% 1
92 100.00%
12. How much are you willing to pay to have a paper-mached bookstand?
Php 100 - 500 74 77.89% 1
Php 501 - 1,000 19 20.00% 2
Php 1,001 - 1,300 1 1.05% 3
Php 1,300 - 1,500 0 0.00% 5
Php 1,500 - 2,000 1 1.05% 3
Php 2,000 and above 0 0.00% 5

13. What kind of purchase method do you prefer?

Online purchase 29 30.53% 2
Personal purchase 66 69.47% 1

14. Do you often rely on advertising to help make your purchase decisions?
Yes 86 69.92% 1
No 37 30.08% 2

15. Which social media are you engaged in?

Facebook 118 95.93% 1
Twitter 87 70.73% 2
Tumblr 26 21.14% 4
Instagram 78 63.41% 3

SURVEY ANALYSIS
The researchers adapted a probability random sampling depending
largely on gathering data and information through the use of survey
questionnaires. In this technique, each individual of the given population has
a fair and equal opportunity to be chosen as a subject. The researchers

24 | P a g e
conducted the survey through an online poll using Google Docs, a Web-
based application where documents can be managed online.
The survey was conducted with one hundred twenty-three (123)
respondents answering fifteen (15) questions relating to their preferences,
lifestyle and purchase decisions.
Results show that a hundred and one (101) or 82% of the respondents
belong to the age bracket of 16-20 years old while the remaining
respondents are aged 21-25.
Most respondents are enrolled in different business courses in the
fourth year level. Most of the subjects read both for academic purposes and
leisure with 29% (thirty-six people) using bookstands, 32% (forty people)
merely holding the book and 37% (46 people) placing the materials on the
table or lap.
Forty-five individuals or 37% of the respondents own a bookstand,
with 85% of them finding the usefulness and importance of having one.
With the exception of one individual, 99% of the respondents support
recycled products. The results also show that ninety-eight or 80% of the
respondents prefer paper-mached bookstands matching their preferences
covering portability, design and function of the product. With this said,
ninety-five of them are willing to purchase the product.
With 40% of the respondents having an annual household income of
more than 500,000 pesos, seventy-four out of the ninety-five individuals
willing to purchase the product are prepared to shell out Php500 and below
to purchase the book stand.
Results also show that the respondents are engaged in social media
such as Facebook, Twitter and Instagram. Sixty-six or 70% of the subjects
prefer a personal purchase method rather than an online purchase, with also
70% of the respondents relying on advertising to aid them in their purchase
decisions.

25 | P a g e
 E. Demand and Supply Analysis
i. Demand
Total
Target Market
Population
Students of University Belt near Recto 240,776

Total Estimated Population per year 240,776

X Percentage of patrons who like to have a customized paper-mashed 79.67%

bookstand
Total Estimated Population (per year) of patrons who like to 191,826
have a customized paper-mached bookstand
X Percentage of patrons who like to purchased ABS 96.94%

Total Estimated Population (per year) of patrons who like to 185,956

purchased ABS
X Average rate of frequency 1.00

Total Estimated Population 191,826

X Percentage of Reliability Level of Sample units 55%

Total Estimated Demand 105,504

ii. Supply
Number of
weekdays and
No. of Patrons weekends in a
who buys year to be
List of Competitor’s multiplied by
product per day Total Supply
Competitors the total no. of
(sale for patron who
bookstands) buys
Competitor’s
product
Slumber
3 365 1095
Gallery
National Book 2 365
730
Store
GDK Trading 1 365 365
A2 Bookstore 2 365 730
Total Supply per year 2,920

26 | P a g e
 i. Demand and Supply Gap

Total estimated demand per year 105,504

Total estimated supply per year 2,920

Gap (Demand - Supply) 102,584

x Target market 5%

Total Estimated Target Market 5,129

F. Competitive analysis
List of Direct and Indirect Location
Competitors
National Book Store 1921 C.M. Recto Ave. corner
Morayta St., Manila
Slumber Gallery 78 Quirino Highway
Balintawak, Quezon City
GDK Trading online trade and consumer
distributor for the shooting
product industry
A2 Bookstore 187 Sampaloc, Manila

Product
List of Strength
Market Share and Market
Direct Goals and
(bookstands’) Market Strategies
Competitor Weaknesses
Focus
National Strength
Book We will be a pinnacle of
Store globally the
competitive bookstore
Filipino company industry in
Increasing
delivering the
product
School excellent customer Philippines
33% lines and
supplies experiences
steady
through its
expansion
profitable retail Weakness
and learning
Due to
centers and
having
brands.
many
product

27 | P a g e
 lines,
specialized/
customized
items are
not their
priority.

Porter's Five Forces

Threat of New Entry
The threat of new entry to a product like ABS is low because not all
people sees a book stand as an essential thing for studying or reading
books, which gives the investors reasons not to invest in such kind of a
product. Also it would hard for new competitors for they will have hard
facing the economies of scale.
Bargaining Power of Suppliers
Factors like substitutes are being use rather than a book stand. Also
customers of the product tend to buy in small numbers because it will be
impractical for them to buy many. This factors lead to low bargaining power
of the supplier.
Bargaining Power of Customers
The power of buyers in book stand industry is considered high. Users
of the product may tend not to use book stands for they can use alternatives
like their bare hands or tables. Also the switching cost of the customers is
low.
Threat of Substitute Services
The threat of substitute for the product is moderate. Consumers may
choose not to use book stands when reading for they can use tables in their
own homes, also they can use their hands in holding the book while reading.
However, using book stands encompasses its substitutes because it makes
the lives of the users easier when it comes to reading.

28 | P a g e
Rivalry
The rivalries of our direct and indirect competitors are both high, for
the market for the bookstands is not that huge of a market and the
industries within this market is minimal in number.

Acclaimed Book Stand is a customized and functional kind of

bookstand. It is rare, unique and new on the market of bookstands. It can
encompass the vacant gap on the suppliers of bookstand. The product does
not have its direct competitors nowadays but other competitors may tend to
reengineer the product and seek to compete with the new launched
customized bookstand. The product is refreshing to the market and has a
huge possibilities and opportunities.
G. TOWS
Strengths Weaknesses
Internal 1. Versatile product for 1. High labor cost
customer 2. Limited number of
customizations customers
2. New and unique
features compared to
External the bookstands already
in the market.

Opportunities SO Strategies WO Strategies

1. Ability to diversify S1, 01. Attract W1, 01. Give a slightly
2. Introduce a new customers through its higher price on products
view of the ability to provide wide customized by
market’s variety of bookstands. customers.
traditional view on S2, 02. Create many W2, 02. Advertise the
bookstands choices for product through social
customization of media which reaches a
customers. significant amount of
potential customers.
Threats ST Strategies WT Strategies

29 | P a g e
 1. New product on the S1, T1. Emphasize the W1, T1. Wise strategy
market customization ability of making on recruiting
the product comparing minimum number of
2.Lack of established
it to traditional book laborers that can
reputation
stands. maximize its full
S2, T2. Advertise the capacity as a worker.
unique customizations W2, T2. Advertise the
that the customers can product through social
make. media which reaches a
significant amount of
potential customers.

H. Projected sales or revenue

PROJECTED SALES IN UNITS AND PESOS

Estimated Units Sold Units Selling
Sales in per year Sold Price Sales in
Increase Selling
units per (custo- Pesos
or (Plain Price
Year (Plain Decrease bookstand) (Plain year mized) (total
book in Book (custo- sales)
(average
stand) Volume Stand) mized) price500-
(estimate)
850) 675
1 3,590 1,539 - 3,590 500 1,539 675 2,833,825
2 3,770 1,615 5% 3,770 500 1,615 675 2,975,125
3 3,958 1,696 5% 3,958 500 1,696 675 3,123,800

I. Marketing program
Product Strategy
Objectives and Issues
ABS will focus on these major areas in order to gain a competitive advantage
over it competitors:
 Making the product with the highest quality possible.
 Ensuring the compliance with the customization the customers like.
 Establishing the awareness of the market with the product and
developing a good equity

30 | P a g e
Packaging Strategy &Distribution Strategy
Books are essential for every student, that's why it must be handled
with care. Also books should be use with effectiveness, which ABS can give
to its users. A book stand can help students in reading their book without
the need of holding it. The producers want the product to lead in providing
book stand to customers with it its unique designs and innovative features.
Many students read for different purposes. The company wants to help the
consumers enhance their reading experience with the use of Acclaimed Book
Stands. ABS will cater the needs of different types of readers, whether it is
for academic purposes, or for leisure. The company will give innovation
about how consumers look at bookstands.
The company plans to use eco-friendly packaging for sustainability of
the environmental propaganda of the product itself. It aims to attract
awareness into environmental issues on the modern time. The packaging will
be made from recycled papers with the shade of gray and brown.
The product itself will be manufactured on Rosarito St. at Dapitan near
to the main store of Recto. In that way there will be a division between the
manufacturing and selling departments of the partnership. There will be an
assurance of neatness and smartness of the store itself separating its
manufacturing place. The partnership can easily make the store appealing
and attractive for the increment of the customers present on the market of
bookstands. The store on Recto can also be an outlet for meet ups whenever
a customer avails the product through the main website or through social
networking sites of the product.

Pricing Strategy
Partners will use the target costing method in pricing the Acclaimed
Book Stand. The partners will benchmark on the existing competitors’ prices
in order to come up with reasonable value for the product. There will be
using of markup on the sale of each bookstand ensuring that all the costs
31 | P a g e
incurred will be covered. In that way profit will be earned enabling the
company to be a going concern partnership.

Place Strategy
A store will be located in Recto, Manila which is very well known for its
wide collection of 2nd hand books. Also, a website will be created that will
show the more detailed information about the product that will make
consumers understand the product more. The website will also be used for
selling the bookstands since buyers can make their orders in the website.

Promotional Strategy
Acclaimed Book Stand will adopt the following implementation plan
in line with its marketing and promotional programs:

 Advertising
Social media like Facebook, Twitter, and Instagram will be used as the
main medium for advertising to reach out for the persons who prefer online
purchase. These will also be used for answering different questions about
the product. A website will be created for both marketing and advertising
purposes. Purchases can also be made through the website. It will also
include additional information about the product (photos, promotional
videos, etc...)
Tarpaulins will also be used to catch the attention of different
students. Some of these tarpaulins will be used on the manufacturing site
and the store to expose the product and to promote awareness of the
presence of the company.

32 | P a g e
J. Marketing Selling Expense
EXPENSE PRICE
Website maintenance (15x12)*45 9,000.00
Tarpaulins, posters, etc. 800.00
Facebook ad promotion (12x30)*40 15,000.00
Rent Expense (5000/month) 60,000.00
Salesperson salary (13980/month) 167,760.00
TOTAL 252,560.00

33 | P a g e
 TECHNOLOGICAL ASPECT
A. Product description
The Acclaimed Book Stand is not just a bookstand for mere reading, but is
also one that gives readers variety of choices and opportunities to address their
needs in order to achieve the full enjoyment and comfort while reading. Our
product offered will be a refreshing product for the market because of the variety of
benefits and convenience it can offer. The product will be made from eco-friendly
materials which makes it helpful for the environment as well.

Students and other book enthusiastscan use ABS as an aid in reading. As its
usual use, it is an appropriate platform where books are placed for: easy managing
of the book’s weight, readers’ comfort and proper angle for reading. Our product
can offer unique features such as penholder, coffee holder; a small cabinet which
offers extra storage for valuables and customer customizations within the
commerce of a starting business. Our product can also be availed through online,
can be delivered (within recto area) or be obtained at the designated store;
customers can place their order by sending message in our Facebook page.
(https://www.facebook.com/AccBookStands).

The raw materials that will be needed to make this product are
recycled papers basically newspapers, wire, paint, base materials, enhancers
and other materials based on customer’s preferences. These raw materials
are acquired from hardware and craft stores in Metro Manila. ABS
coordinated with Austin Hardware Co., Inc. Hardware to become the supplier
of paint and wire, while the design materials are obtained from Tabora
Street in Divisoria, Manila. Obtaining of raw materials will be done two to
three times a month.

The production involves labor-intensive processes but assisted with

minimal use of tools and equipment. The processes are basic steps and can
manually be achieved by four workers without further training needed. There
will be savings and ease of production using the recycled papers through
easy basic steps.
34 | P a g e
 The production budget was computed using the FIFO method on
inventories. The first produced bookstands would be the first batch to be
sold among the customers. The production will make sure that the demand
needed to fulfill will be satisfied with more than enough produced products.

Year 1 Year 2 Year 3

Sales Budget in Units 5,129 5,429 5,379
Add: Desired ending Finished Goods Inventory 300 250 250
Total Production Needs (COGM) 5,429 5,679 5,629
Less: Beginning Finished Goods Inventory 0 300 250
Production Budget in units 5,429 5,379 5,379

*units composed of combined plain and customized bookstands

*ending inventory represents only plain bookstands

35 | P a g e
B. Manufacturing Process

36 | P a g e
37 | P a g e
The following procedure relates to manufacturing one (1) standard
bookstand.
1. Gather materials and tools consisting of wood, wood glue, water,
container, saw, drill, screws, sandpaper, old newspapers,
cardboards, cutter, a variety of acrylic paint colors and varnish.

2. Prepare the adhesive mixture.

Prepare the substance to glue the wood and other materials together by
gradually mixing two (2) cups glue and one (1) cup water in a large
container until it is smooth and creamy.

3. Tear the papers gathered into small pieces.

Tear all the papers collected into strips. Each strip should measure
approximately one (1) inch by eight (8) inches.

38 | P a g e
4. Use the wood as base of the bookstand.
Cut the wood to be used as the base to a size approximately measuring 8 by
14 inches. Drill this together with another wood cut to a size approximately
measuring 4.5 by 5 inches. Then, sand down the wood with medium-grade
sandpaper.

5. Paste and layer the strips of papers onto the wood to get a smooth
finish.
Using the strips of paper and the adhesive mixture, cover the foundation of
the product by immersing the torn papers into the paste and onto the base.
Remove any excess paste from the strip of paper after dipping and lay it over
the surface of the base of the product smoothly. Layer it thrice. The entirety
of the foundation of the bookstand should be sufficiently covered with the
overlapping strips of paper in a crisscrossing manner.

39 | P a g e
6. Use additional materials such as wood, cardboards, adhesive and
strips of papers for other customer preferences. Leave to dry.
If there are other customization requests, use another cardboard or wood
blocks as the base of the additional request. Paste and layer the shredded
papers to cover the added material/s. After molding the additional requests,
place the bookstand on a covered surface and let the body of the product dry
completely.

7. Paint and leave to dry.

Paint and design according to customers' requests. Then, store the decorated
bookstand on a covered surface to dry completely.

40 | P a g e
8. Varnish.
When the product is completely dry, the same person in charge of painting
will preserve the product by brushing on a coat of varnish.

C. DURATION PER PROCESS PER BATCH

DURATION PER
PROCESS BATCH OF
PRODUCT
(Minutes/Batch)
Gather materials and tools consisting of
wood, wood glue, water, container, saw,
drill, screws, sandpaper, old
newspapers, cardboards, cutter, a 2minutes *
variety of acrylic paint colors and 3units/1batch = 6
varnish. minutes
Prepare the adhesive mixture 4 * 3 = 12
Tear the papers gathered into small
pieces. 6 * 3 = 18
Use the wood as base of the bookstand. 50
Paste and layer the strips of papers onto
the wood to get a smooth finish 40
Use additional materials such as wood,
cardboards, adhesive and strips of
papers for other customer preferences. 30 (varies)
Leave to dry 30
Paint. 25 * 3 = 75
Leave to dry. 30
Varnish. 3*3=9

41 | P a g e
 D. LABOR, MACHINE, AND MATERIAL REQUIREMENT PER PROCESS

(There are two workers per day. One of them creates the base and foundation of
the bookstand. One worker is in charge of preparing the necessary items for
manufacturing, painting and applying finishing touches to the product. The
remaining employee is assigned at the physical store. A general manager
supervises the manufacturing portion of the product/s.)

PROCESS MACHINES/TOOLS MATERIALS

LABOR
AND MATERIALS (Mat/Proc)

Gather materials and tools

consisting of wood, wood
glue, water, container, saw,
drill, screws, sandpaper, old
newspapers, cardboards,
cutter, a variety of acrylic
paint colors and varnish.
Prepare the adhesive Glue, Water,
mixture Container
Tear the papers gathered
Papers
into small pieces.
Use wood as the base of the Saw, Power drill, Wood,
bookstand. This would Screws Cardboards,
provide structure for Glue, Cutter,
balance. Sandpaper
Paste and layer the strips of Torn Papers,
papers onto the wood to get 2 Cardboards,
a smooth finish workers Paste
Use additional materials Tin Snips,
Wood, Torn
such as wood, cardboards, Screws
Papers, Paste,
adhesive and strips of
Cardboards,
papers for other customer
Cutter
preferences.
Leave to dry Air-dry
Paint. Paint
Leave to dry. Air-dry
Varnish. Varnish

42 | P a g e
 E. Labor Requirement
WORK LINE-UP REQUIRED NUMBER
OF PEOPLE
Workers in Process 1
Workers in Process 2
Workers in Process 3
in Process Workers 4
(selling process)
F. Production Schedule
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
Per
17 15 15
week
JOB DESCRIPTION
2 The worker in charge of
gathering the materials
needed for the
bookstand, creating the
paste, and tearing the
papers into small
pieces.
2 These are the workers
in charge of making the
base of the bookstand,
pasting the shredded
papers onto the base,
and adding the
customizations as
specified by the
customers.
2 These are the workers
in charge of painting
the bookstands and
varnishing the
bookstands.
1 The one in charge on
the overall sales and
distribution on the
designated store.
15 15 15 17
43 | P a g e
G. Property and Equipment Requirement
MANUFACTURING PROPERTY, PLANT AND EQUIPMENT
MACHINERIES FUNCTION/ QUANTITY UNIT TOTAL
AND PURPOSE COST ANTICIPATED
EQUIPMENT COST
Power drill Create holes 1 2 844.00 2 500.00
(Bosch Cordless on the
Drill: bookstand to (inc. shipping
http://www.laza allow screws costs)
da.com.ph/bosc and to keep
h-06019f40k0- it in place
gsr1000-
cordless-drill-
driver-blue-
529358.html)
TOOLS FUNCTION/ QUANTITY UNIT TOTAL
PURPOSE COST ANTICIPATED
COST
Tin Snips For cutting 1 611.00 700.00
materials
(Aviation tin (inc. shipping
which is
snips: costs)
difficult for
http://www.eba normal
y.com/bhp/tin- cutting tools
snips) like scissors

SELLING, GENERAL AND ADMINISTRATIVE PROPERTY, PLANT AND

EQUIPMENT
FURNITURE FUNCTION/ QUANTITY UNIT TOTAL
AND FIXTURES PURPOSE COST ANTICIPATED
COST
Large plastic Storing 3-5 900.00 4 500.00
storage box finished
products
(Black premium
which do not
quality box with
require
wheels:
immediate
http://www.plas delivery. Can
ticboxshop.co.u also be used
k/home- for storing
storage- large volume
c1/bedroom- orders.
and-bathroom-
organisation-
c16/loft-
storage-

44 | P a g e
 c87/75lt-black-
premium-
quality-box-
with-wheels-
p2440)

Display glass To show 2 2 500.00 5 0

shelf products for 0
customers 0
passing by. .
0
0

OTHER NON-CURRENT ASSETS

Personal Central 1 15 15 000.00
computer information 000.00
processing
and storage
of the
company. To
help manage
the inventory
and compute
for daily
sales, etc.…

H. Building and facilities

The store will be located along Recto. This is a rental commercial space
along the bookstores at Recto.

45 | P a g e
 I. Depreciation Schedule

J. Waste Disposal
ABS wants to minimize the number of wastes to be disposed by the
business for they support the usage of recyclable materials. The flow of
waste disposal in the business will start in collection of reusable newspapers
to be made as the design for the book stand, and buying of wood bricks to
be used in creating the main frame of the product. Also paints will be used
in designing the product; in using such material, minimum waste would be
produce because it is stored in a can. Disposing cans is not a problem
because the company is planning to collect it and sell it to a junk shop every
end of the week. The papers and brick woods that are not used in creating
one product can be used for another, but if is unusable, it will be thrown
away, which will be collected by the city government on the scheduled time.

K. Quality Control

It is very important for business to maintain the quality of each product

that they would be distributing to the customers. ABS will be offering the
best quality in producing a product by ensuring the durability, and the
compliance of the design with order of the customer. Customers’ feedback
will be collected using the Facebook page of the product; also the company
will be giving a survey form to their customers on the day of claiming the
product.

L. Production cost schedule

a. Total Production per Year
No. of batches per day 5
x No. of units per Batch 3

46 | P a g e
 Total Production per Day 15
x No. of days in a month 30
Total Production per Month 450
x No. of Months in a year 12
Total Production per Year 5400
*applicable for plain bookstands production
*customized bookstands production varies as ordered by
customers
b. DM used during the year

DIRECT MATERIALS
Per Batch Per Unit
Recycled Paper 0 0

Screws 60 20
Paint 195 65
Total 255 85

c. DL incurred during the year

d. OH incurred during the year

OVERHEAD
Per Year Per Batch Per Unit
Depreciation 6,400 2.47 .82
Rent 60,000 33.33 11.11
Utilities 24,000 13.33 4.44
Indirect Material 189000 105 35
(approx.)
Total Factory 120,875.2 67.15 22.38
Overhead

47 | P a g e
 Per Batch Per Unit
Direct Material 425 160(75 1x1 wood +50
if customized)
Direct Labor 532.74 177.58
Factory Overhead 105 35
Total 493.19 199.14

e. Total Production Cost

48 | P a g e
 FINANCIAL ASPECT
A. Total Project Cost
Total Project Cost
Project Cost Summary Cost
Pre-operating costs 115,395.00
Working Capital 350,627.20
Capital Expenditure 27,000.00
TOTAL 493,022.20

Pre-operating costs Cost

Feasibility study costs 2,500.00
Professional Fees for Atty., Acctn., Engr., 5,000.00
CFA etc.
Printing costs of Invoices,OR, Vouchers 1,500.00
Registration of Business 18,895.00
Cost in organizing the Business 87,500.00
Total Pre-operating cost (5years) 115,395.00

Working Capital Cost

Raw Materials Inventory 48,174.19
Minimum Cash Balance 302,453.01
TOTAL 350,627.20

Capital Expenditure Cost

Manufacturing Furniture and Fixtures -
Manufacturing Equipment/Tools 2,500.00
Selling and General Administrative 9,500.00
Furniture and Fixtures
Selling and General Administrative -
Equipment
Other Non-Current Assets 15,000.00
TOTAL 27,000.00

49 | P a g e
 Registration of Business Cost
SEC - Name Registration 2,655
Treasurer's affidavit 500
Documentary Stamp 4,670
Annual Community Tax 500
Barangay Clearance 800
Mayor's Permit 5,800
TOR and TIN 530
BIR 530
Garbage Charges 2,410
Fire Inspection Fee 500
TOTAL 18,895

Cost in Organizing the

Cost
Business
Utilitities* 24,000.00
Transportation 500.00
Employees' Training 3,000.00
Charges
Rent* 60,000.00
TOTAL 87,500.00

B. Initial Capital Requirement

The firm maintains a minimum cash balance of P302, 453.01or 30% of the
operating expenses incurred. No debt will be incurred in the formation of the
business as the firm is financed internally, with all the partners contributing
P69, 368.89, to form a total capital of 485,582.20 which is also equivalent to
the total project cost.

C. Financial Assumptions

The firm assumes that the ending inventory of raw materials is equivalent to
5% of the required materials for production the following year. Also, the
ending finished goods inventory should be equivalent to 5% of the budgeted
sales of the following year. We are also expecting an increase in sales each
year amounting to 5%.

50 | P a g e
D. Projected Financial Statements

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E. Ratio analysis

57 | P a g e
 F. Breakeven analysis

*applicable for plain bookstands production

G. Payback period

H. Selling price schedule

Product cost per unit Quantity Cost Total
Direct Materials 3.00 28.33 84.99
Direct Labor 3.04 20.45 62.15
Manufacturing Overhead 3.04 103.46 314.52
Unit Product Cost 461.66
Using the full costing method, the product cost per unit is computed and
additional margin was affixed to it. With the total of 462 as the product cost,
additional margin of 8 pesos was added which resulted to the final selling
price of 500 pesos. This selling price included the traditional bookstand as
well as the customizations given by customers. The customizations indicated
were bonded with limitations within the commerce of man.
I. Production cost schedule

No. of batches per day 5

x No. of units per Batch 3
Total Production per Day 15
x No. of days in a month 30
Total Production per Month 450
x No. of Months in a year 12
Total Production per Year 5400

*applicable for plain bookstands production

*applicable for plain bookstands production
58 | P a g e