Food Realm Inc. Body

Chapter 1
EXECUTIVE SUMMARY
The objective of this feasibility is to provide an electric heated lunchbox in the
market. Nowadays, people who are working on a company tend to buy on canteens and
restaurants but some of them bring lunchbox to spend less money. Nevertheless, when
they eat their lunch, it is not as hot as when they just cooked it. With the help of the
product, the workers can warm or reheat their lunch conveniently.
1.1 Highlights
1.1.1 Name of the Proposed Business
Heat n’ Eat is a shorter term for heat and eat. The word ‘heat’ exemplifies
to heat again the food or to reheat it to bring back it’s delicious taste while the
word eat simply means that the customers will eat the food after reheating it. The
goal of this product is for consumers to bring delicious meals with them for later
consumption.
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1.1.2 Logo
Figure 1.1:
Logo
The logo of the proposed business is aligned to the product Heat n’ Eat.
The proponents brainstormed to come up with this kind of logo. The background
color of the logo is black representing the elegance of the product. The lining is in
color red to represent the love and passion of the proponents to their work. The
proponents placed little detail like the hands of the clock being spoon and fork. It
symbolizes that in just a short span of time, the food will be already hot and
ready to eat. Also, the hands of the clock are formed to make a letter “L” and the
proponents put there the name of the main product of the proposed business;
lunch box. The company name is on the top of the logo and the size is enough to
see whose product it is.
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1.1.3 Vision-Mission Statement
Mission
Heat n’ Eat products are built to last and provide solutions for more
comfortable, enjoyable eating experience for people on the go, allowing
consumers to make healthy choices on a daily basis. To achieve zero tolerance
in quality, maintain customer satisfaction through cost effectiveness, value added
service, service orientation is also the company’s mission.
Vision
To reach out globally, expanding domestic market by providing quality
production, updating technology and achieve phenomenal business growth.
1.1.4 Product Description
Heat n’ Eat is an innovative electric lunch box that can reheat food when
plugged into an electric source. Electric heated lunchbox allows customers to
enjoy their favorite food. With it, they can bring delicious meals with them for later
consumption. After it is connected to a power source, the food will gain heat
within few minutes. The proponent’s product, which is an electric heated
lunchbox, is usually made of stainless steel and comes with a carrying handle for
easy transportation that is similar to a picnic cooler.
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1.1.5 Management/Legal Feasibility
This chapter covers the company's different department management. It
determines and studies the business flow, organization, and arrangement of
activities, including the rules and regulations and the objectives that follow. The
chapter includes the operational strategies, the advocates, business ownerships,
organizational maps, laws and proper procedures, and compensation for the
employees.
1.1.6 Marketing Feasibility
Marketing is said to be the lifeblood of a feasibility study. It aims to
determine the possible direct and indirect competitors, the target market (if the
product aims to target the kids, teens or adults), the demand and supply of the
product, the competition and the market strategies such as product, price, place,
and promotion strategies. It gives the proponents a view on the possible outcome
of the product if it will be introduced to the market since it includes here the
survey that the group conducted to see if the product is feasible. Also, the
marketing aspect highlights the product. The proponent’s product is an electrical
heating lunch box with alarm.
Food Realm Inc. store will be located at 4 Orange St., Odelco Subdivision,
Novaliches, Quezon City. The proponents opted for a place accessible to the
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public for visibility to customers and easier way to purchase the product. Aside
from that the company will also distribute to malls, grocery stores, appliance
stores and such. To promote the product, the proponents will use social media as
one of their promotion or advertisement strategies. Lastly, Food Realm Inc.,
made sure to offer customers quality products at a fair price.
1.1.7 Technical/Operations Feasibility
This aspect will be explored extensively to provide a detailed knowledge of
how the product is made from scratch. In addition, this part will give information
where the company will buy the supplies of necessary raw materials, machinery,
and equipment. The process and materials used in the paper are important to
enable readers to grasp an understanding how the product will be made.
Additionally, the proponents came up with their methods of disposal of waste,
because if there is development, there would definitely be waste.
1.1.8 Financial Feasibility
The income statement shows that Food Realm Inc. is projected to incur a
loss amounting to -53,976.97 pesos only on its first year of business operations
in 2021. Afterwards, it is projected that the business will gain profit starting in
2022 with a projected net income of 188,350.19 pesos. The balance sheet
indicates good net worth and financial position of the company. The business is
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predicted to have the return on investment by 2022 as presented in the Financial
Study.
1.9 Socio-Economic Feasibility
This chapter includes the socio-economic benefits of the proposed
product. The project's aim is not only to earn high profits but also to provide the
consumer with quality and cleanliness of the goods, as well as to benefit the
country, economy and community, and these can be achieved through tax
payments and job creation. It is important that small entrepreneurs should realize
the worth of innovating and starting a business that would largely contribute to
the socio-economic development of the country.
1.2 Conclusions to Feasibility Study
The purpose of the proposed business is to know if the business will generate
income. The mindset of the proponents is set to earn income from the partnership. A
survey was conducted to see if there was a possibility that the business could thrive in
the business area. When business planning is done right, it connects the dots in
business so business owners could get a better view of the picture. Strategy is
supposed to relate to tactics with strategic alignment. Also, business planning helps
keep track of the right things, and the most important things. Allocating time, effort, and
resources strategically is important to make a good planning process. Proprietors
regularly review assumptions, track progress, and catch new developments so they can
adjust. Feasibility helps the future business process set expectations and tracks results.
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It is a tool for regular review of what is expected and what happened. Good work shows
up as well as disappointments. The business plan is a fundamental tool and is
necessary for a start-up that needs a sense of direction. One of the reasons a business
plan is so important is that it is one of the main requirements of venture capital, firms,
and banks interested in investing funds in businesses. The business plan usually starts
with an executive summary, followed by a description of the business in detail, including
its products and services, and a section on how the business is going to achieve its
goals from operational, financial, and marketing standpoints. The business plan also
typically includes a brief look at the industry within which the business will operate and
how the business will differentiate itself from the competition.
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Chapter 2
PROJECT BACKGROUND
This chapter will address who the business proponents will be, what are their
positions in the business, the business name’s roots, and the business area’s
development in terms of GDP or the value of all finished goods and services made
within a country during a specific period. This will assess the right target market, also to
decide the product supplier, and the proponent’s utilities provider.
2.1 Project Proponents
Table 1.1 Project Proponents
Name Nationality Address %Ownership Position

Lord Filipino 46 Natividad St., 16.66% Product
Cedric P. Brgy. Paltok Manager
Bonus S.F.D.M
Quezon City
Kimberly Filipino Blk1, lot 21 16.66% Events Manager
Anne R. Magnolia Street,
Cruz Urban Deca
Homes Brgy.
Abangan Sur
McArthur
Highway
Marilao,
Bulacan
Allyzza B. Filipino 4-F Flores de 16.66% Operations
Dimaapi Mayo St., Manager
S.F.D.M Brgy.
8
Damayan,
Quezon City
Philip Filipino 238 Kaliraya St., 16.66% Human
James J. Brgy. Tatalon, Resource
Pecadizo Quezon City Manager
Jahairah Filipino 54 Magsalin 16.66% Marketing and
V. Compound, Sales Manager
Simbillo Kaingin Road
Brgy. Apolonio
Samson,
Quezon City
Melanie I. Filipino 602 Tagaytay 16.66% Finance
Villanueva St. Brgy. San Manager
Jose, Caloocan
City
2.2 Name of the Firm/Proposed Name of the Firm/Project
The business was named Heat n’ Eat for the following reasons:
a) The firm is going to sell electric lunch box that is made of stainless steel, non-
toxic, durable, and convenient;
b) This can be very helpful for the people who are busy, health-conscious and it
even saves time and money;
c) It is like eat and run. Like "Heat n’ Eat" users will not need any other equipment
like microwave. Because even when the food is in the cold, it quickly warms up
and is ready to eat right away; and
d) Customers can enjoy the convenience of cooking lunch right at their desk or on
their way to work without having to worry about finding space in the office fridge
or fighting for microwave time.
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2.3 Type of Business Organization
The type of the business organization that the proponents will put up is general
partnership. It means that the profits and losses are shared by all partners and all
parties are responsible for all commercial debts. The proponents should make sure a
great organizational model is used and developed. Along with the proponents having
general partnership, the proponents will portion out the main work of being administrator
for the company to pursuit and the other workers to do their job.
2.4 Location of the Business/Office
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Figure 2.1: Location of the Office
The exact location of the physical store and office is at 14 Orange St.,
Novaliches, Quezon City. As seen on the vicinity map, it is surrounded by many
subdivisions, food stores, and establishments. The proponents chose this location for
two reasons. First reason is, the cost for renting the place is affordable enough and the
second reason is, the plastic molding suppliers that will mold the plastic housing of the
product is near that place.
2.5 Site Analysis
2.5.1 Visibility from the Main Arteries
The business will be located in 14 Orange St., Odelco Subdivision,
Novaliches, Quezon City. Novaliches is a mainly a residential area so the
business is closer to customers. A lot of other small and well-known businesses
are also located in Novaliches. The place where Food Realm Inc. will be located
is near to many landmarks such as SM City Novaliches, Holy Cross Memorial
Park, Novaliches General Hospital, STI College - Novaliches, convenience stores
like 7-Eleven and Ministop, food establishments such as I Love Milktea, Jollibee,
McDonald’s, and others, Mercury Drug, banks namely PSBank and BDO, and
other subdivisions.
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2.5.2 Visual appeal of the Area and Surroundings
The proposed business location is located at 14 Orange St., Odelco
Subdivision, Novaliches, Quezon City, near public places like SM City Novaliches
and public market. It is an advantage to be near in schools because the teachers,
janitors, and guards can buy and use the product. Also, the parents of the
students might buy the product if they are working or for their family member.
The location is also near in a manufacturing company and other establishments.
Many people can see the company and how the product is relevant for them.
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Figure 2.2: Visual Appeal from Surroundings
2.5.3 Area Growth Pattern
Population Growth
2016 2017 2018 2019

Table 2.1:
Estimated 2,761,720 2,828,554 2,897,005 2,967,113
Population in
Quezon City
Estimated Population in Quezon City
Source: Quezon City Local Government
Based on Quezon City Local Government (2019), the annual population
growth rate of Quezon City is recently at 2.42%. The table above shows the
estimated population from 2016 to 2019 in Quezon City calculated using the
2010 2015 2.42%

Population in Novaliches 14,748 15,381
growth
rate. It is projected that the population will increase further in the next few years
as Quezon City is a highly-commercialized area.
Table 2.2: Population in Novaliches
Source: PhilAtlas
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The population of Novaliches, more specifically, has a growth rate of
0.80% from 2010 to 2015 according to PhilAtlas (2020). From 14,748 people,
633 are added in a span of 5 years.
Socio-Economic Growth
Novaliches is developing as a lot of small businesses and some large
companies continue to form in the area. Businesses provide job opportunities to
the residents and generate profit contributing to the economy. Events and social
gatherings in church, recreational places, and schools also take place in
Novaliches. Therefore, Novaliches is progressing a decent socio-economic
growth.
2.5.4 Accessibility to the Following
2.5.4.1 Target Market
The target market of Heat n’ Eat are the people who have busy
and/or health-conscious lifestyles. More specifically, professionals who are
always busy and health-conscious individuals are the target market of the
product. Quezon City is a highly-commercial city so, many employed and
busy people can be certainly found there. There are also lots of health-
related establishments in Quezon City such as fitness centers, hospitals,
recreational places, and others signifying that there are also a lot of
health-conscious people in Quezon City.
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2.5.4.2 Raw Materials and Supplier
Direct Materials
Material Source
Power Cord, LED Light, Rubber Ace Hardware, SM City Novaliches
Screw Cover (1.7 km away, 21 mins. average
travel time)
Timer Shopee
Indirect Materials
Material Source
Tools Ace Hardware, SM City
Novaliches (1.7 km away, 21
mins. average travel time)
Supplier Name Location Materials

Main Manly Plastics, Novaliches, Quezon Plastic
Supplier Inc. City (4 km away, 50housing made
min. average travelof
time) polypropylene
plastic
Back-up Big Philippines Silang, Cavite (57 km Plastic
Supplier Corporation away, 1 hr. 20 min. housing made
average travel time) of
polypropylene
plastic
2.5.4.3 Utilities and Service Providers
The utilities and services provider that the company will need are,
Meralco, Maynilad, and PLDT. Meralco is the only provider of electricity, it
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will be the source of light for the whole location. It will provide the source
of electricity since it is mostly needed in making the electric lunch box.
Maynilad will be the source of water since it is needed to have a clean
environment inside of the site. Lastly, PLDT, the provider of internet, is
necessary so that the proponents can monitor their websites and they can
endorse it online.
Chapter 3
MANAGEMENT FEASIBILITY STUDY
This chapter covers the company's different department management. It
determines and studies the business flow, organization and arrangement of the
activities, including the rules and regulations and the objectives that follow. The chapter
includes the operational strategies, the advocates, business ownership, organizational
map, laws and proper procedures, and compensation for the employee.
3.1 Managements Feasibility Objectives
Management Feasibility Objectives
The objectives of the of the Management aspect are the following:
 To classify the structure of the business organization.
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 To classify the enterprise people and project developers in the business.
 To implement the rules and regulations as well as the workplace company
policies.
 To show enterprise job descriptions and job expectations.
3.2 Personnel & Administrative Workforce
The proponents should follow the partnership structure which consists of four
people. All proponents will be involved in running and managing business. Apart from
the position that the proponents will take over, the company will also need one
electrician and one janitor. The electrician will create wirings, install the heating element
in the lunch box, and deal with the electrical parts of the product. He will also check the
heating process of the product, product malfunction related to electricity, and the control
systems in electric lunch box. He is also responsible for assembling and packing the
products, as well as monitoring the output to check if it is in line with compliance
standards. The operations manager and the product manager can also help the
electrician in manufacturing if needed. The janitor will clean and disinfect the
surroundings inside the company.
3.3 Organization Structure
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F o o d R e a l m
Production Marketing Human Resource Finance

Department Department Department Department
Marketing and
Operations
Sales Manager Human Resource
Manager (also a Finance Manager
(also a Manager
proponent)
proponent)
Product Manager
(also a Events Manager
proponent)
Elecrician
organizational structure groups a business’ personnel according to the purpose or the
department they work in. One of the proponents will be assigned as the product
manager while the others will serve as the events manager, the operations manager,
the human resource manager, the marketing and sales manager, and the finance
manager. An electrician will be hired for the production department. A janitor will also be
hired for cleaning and sanitizing the place.
Figure 3.1: Organization Structure
There will be production department, marketing department, human resource
department, and finance department. The production department consists of the
manpower needed in producing the product such as the electrician, the product
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manager who is also a proponent, and the operations manager who is also a proponent.
The marketing department is tasked in marketing and advertising the product. It
comprises of the two proponents acting as the events manager and marketing and
sales manager. The human resource department composed of the human resource
manager/owner hires and manages employees. The finance department handles the
financial-related work in the company and it consists of the finance manager/owner.
The functional structure was chosen because it is suited for small businesses
with a limited number of personnel for a start. Among the cons of a functional structure,
however, is the possibility that there may be work confusion between the departments
due to multitasking. The proponents will prevent this from happening by establishing a
good, positive, and collaborative working environment within and among the personnel.
3.3.1 Vision/Mission
Mission
Heat n’ Eat products are built to last and provide solutions for more
comfortable, enjoyable eating experience for people on the go, allowing
consumers to make healthy choices on a daily basis. To achieve zero tolerance
in quality, maintain customer satisfaction through cost effectiveness, value added
service, service orientation is also our mission.
Vision
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To reach out globally, expanding domestic market by providing quality
production, updating technology and achieve phenomenal business growth.
3.3.2 Organizational Chart
Operating business will not guarantee to be 100% successful in a year.
Some of the partnership business takes time to give back their investment in the
capital of the business. Patience and perseverance are indeed important to
compensate all the liabilities and expenses. Business is risky at all cost; it needs
to plan carefully and clearly to reach the peak of success. Budgeting is an
important thing throughout the business. There will have a lot of expenses and
liabilities and budgeting the money is needed to balance the money since there is
a
Proponents (Positions: Product
Manager, Operations Manager,
Events Manager, Sales and
Marketing Manager, Human
Resource Manager,and Finance
Manager)
Electrician
Maintenance (Janitor)
lot of expense and the employees have their salaries. These are the proponents
of Food Realm Inc. to maintain the business in the industry.
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Figure 3.2: Organizational Chart
 Proponents – The partners will manage the business themselves
since the type of business ownership of Food Realm Inc. is general
partnership. The partners will also oversee all the employees in the
company. Aside from that, they will also be divided to carry out the
following positions:
 Product Manager – The product manager will take care of
product development as well as product quality control. He
will also help in manufacturing and packing the products.
 Operations Manager – The operations manager will track the
business operations from the product itself to the employees
who make the product. The operations manager will also
help in manufacturing and packing the products.
 Events Manager – The events manager will manage the
promotional events.
 Sales and Marketing Manager – The sales and marketing
manager will advertise and market the product virtually and
substantially.
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 Human Resource Manager – The human resource manager
will hire and manage employees.
 Finance Manager – The finance manager will handle all the
financial-related work in the company.
 Electrician – The electrician will make the wirings of the Heat n’ Eat.
The electrician will also check all the electrical-related issues that
the product may have. He will also assemble and pack the finished
product.
 Janitor – The janitor will clean inside the company and disinfect
surfaces.
3.4 Job Specifications & Job Descriptions
1. Product Manager
Job Description:
 Suggests product features for the improvement of the product.
 Checks product quality.
 Manages the launch of new product features.
 Helps in manufacturing and packing the product.
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Job Specification:
 Must have at least a bachelor’s degree in any business-related course.
 Must be creative and good at planning.
 Must be dedicated to work.
 Must be flexible and cooperative to perform well in the team.
2. Operations Manager
Job Description:
 Oversees production.
 Evaluates non-managerial employees.
 Monitors the number of product supply, storage facilities, and deliveries.
 Suggests strategies for the improvement of business operations.
 Helps in manufacturing and packing the products.
Job Specification:
 Must have at least a bachelor’s degree in business administration.
 Must be resourceful.
 Must be objective when evaluating employees.
 Must have excellent written and oral communication skills.
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3. Events Manager
Job Description:
 Manages promotional events.
Job Specification:
 Must have at least a bachelor’s degree in marketing or business
administration.
 Must be good at designing, decorating, and organizing.
4. Marketing and Sales Manager
Job Description:
 Markets and advertises the product both online and actual.
Job Specification:
 Must have at least a bachelor’s degree in any business-related course.
 Must be good at promoting and designing.
 Must have excellent written and oral communication skills.
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5. Human Resource Manager
Job Description:
 Hires and trains non-managerial employees.
 Informs employees of their benefits and other employment information.
Job Specification:
 Must have at least a bachelor’s degree in human resources management,
business administration or any related field.
 Must know how to assess people.
 Must be objective when hiring.
 Must have excellent oral communication skill.
6. Finance Manager
Job Description:
 Makes financial statements.
 Budgets the company’s funds.
Job Specification:
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 Must have at least a bachelor’s degree in accounting, economics, or
business administration.
 Must be good at accounting and financing.
7. Electrician
Job Description:
 Creates wirings for the product and installs the heating element to the
product.
 Checks the heating process of the product.
 Checks for product malfunction related to electricity.
 Assembles and packs the product.
Job Specification:
 Must be a TESDA graduate electrician or must have taken at least a 2-
year course in electric technology.
8. Janitor
Job Description:
 Cleans and sanitizes the workplace.
Job Specification:
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 Must be good at cleaning a variety of surfaces.
3.5 Conditions of Employment
Filling of
Planning Requirements
Selecting Approval
27
Hiring
Procedure

Submission of Test and
End other Approval
requirements
Interview
Figure 3.3: Hiring Procedure and Recruitment
Before the organization hires workers, a recruitment plan will be established. The
company will post vacancies for positions through print and digital classified ads. The
company entertains applications and subjects applicants to a series of interviews and
tests. Successful applicants will be given a list of requirements to comply. Upon hiring,
the successful candidates are oriented on company policies and compensation
package.
1. Hiring Procedure – Hiring is done in the office of the business. Walk-ins and
referrals are the processes used for hiring. The business will post through social
media to inform the public and interested applicants. The hiring process will be
done within 2 days. The first day will be for interview where the owner will hand
out documents about the product and the essentials for working to those who
passed. The second day will be for hands-on exam, the applicant will be given a
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test about the document given and will be given a test that includes situational
questions to check if the applicant is mentally ready for working.
2. Dress code – white polo with company logo on the left chest, jeans (not
ripped) and rubber shoes.
3. Number of paid vacation days – 5 vacation days in a year. As per Department
of Labor and Employment (2014), the Labor Code Article 95 states that: those
who are hired in establishments with less than 10 employees are exempted with
the 5 days paid vacation leaves thus the number of paid vacation leaves can be
manipulated by the business owners.
4. Working hours – 8 hrs. per day during 6 am to 3 pm including a total of 1 hour
for break time. There will be 22 working days in a month.
5. Break policies – Two of the employees cannot go on break at the same time,
these policies will apply by switching. There will be 10-minute break after 2 hours
of shift, 40-minute lunch break, and another 10-minute break 2 hours before the
shift ends.
6. Work-related responsibilities – Paid hours starts 30 minutes before opening
time of the mall to ensure preparation takes place.
7. Sick Leaves – The amount of an employee’s sickness benefit is computed as:
the daily sickness allowance times the approved number of days. Effective May
24, 1997, the daily sickness allowance is 90 percent of the average daily salary
credit (Section 14 of Republic Act 8282). It will only occur for three days.
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3.6 Proposed Personnel Salaries/Wages and Benefits
Table 3.1: Proposed Personnel Salaries/Wages and Benefits
Daily
No. of Monthly Year 2020 salary
Position wage/worker
worker/s wage/worker expense/worker
Percentage of Percentage of Percentage of Income
Product Manager 1 Income Sharing Income Sharing Sharing
Operations Manager 1 Income Sharing Income Sharing Sharing
Events Manager 1 Income Sharing Income Sharing Sharing
Marketing and Sales Percentage of Percentage of Percentage of Income
1
Manager Income Sharing Income Sharing Sharing
Human Resource Percentage of Percentage of Percentage of Income
1
Manager Income Sharing Income Sharing Sharing
Finance Manager 1 Income Sharing Income Sharing Sharing
Electrician 1 PHP 520.00 PHP 11,440.00 PHP 137,280.00
Janitor 1 PHP 500.00 PHP 11,000.00 PHP 132,000.00
Since the business is managed as a general partnership, the proponents need to
fulfill positions that the business requires. Thus, they decided that their wage will come
from their share on the income that the company will generate. On the other hand, the
monthly wage is computed by multiplying the daily wage by the number of working days
in a month which is 22. The company implied that there will be 22 days in a work month
because it is enough to produce the right number of goods and it is cost-efficient. The
electrician’s daily wage is a bit higher compared to the wage of the janitor because the
job requires a more advanced skill than the other employee’s job.
3.7 Proposed Personnel Development
Table 3.2 Proposed Personnel Development
Date Seminar / Training Budget
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March 10, 2020 Electrical Seminar (for Electrician only) 3,000.00
March 12, 2020 Work Safety Seminar 3,000.00
March 16, 2020 Training to Make Electric Lunchbox (for Electrician 4,000.00
only)
March 17, 2020 Practical Experience in Making Electric Lunchbox 4,000.00

(for Electrician only)
August 14, Team Building 3,000.00

2020
The table cites the seminars and trainings, including their respective dates and
budget allotted, for the proposed personnel development. There will be an electrical
seminar for the electrician on March 10. A work safety seminar will follow right after on
March 12. On March 16, the electrician will undergo training to make the electric
lunchbox. There will also be a practical experience in making the electric lunchbox on
March 17. A team building for all personnel will be conducted on August 14, 2020.
3.8 Administrative/Personnel Facilities
The administrative facilities provide the needs and essentials for the employees
within the shift. They are also given the privilege to use them during break time, lunch
time, and free time. These include the following:
1. Office Lounge/Kitchen – a small
multi-function space inside the
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company wherein employees can rest, cook, eat, and receive guests.
The small space is enough since the company is still new.
2. Comfort Room – the area where
employees can use the toilet or tidy up. The
right number of toilets and wash basins are
placed in it. One comfort room is enough
considering that there are only few workers at the start of business
operation.
3. Stock Room – the room where stocks are stored.
4. Management Office – the office area for the proprietors (See
Appendix p. 135).
5. Production Area – the area where the product is being manufactured.
6. Shop – half of the place serves as the shop. It is where customers can
buy the product.
3.9 Pre-Operating Period
Table 3.3: Pre-Operating Period
Step Procedure Completion Associated

Time Costs
1 Apply for Business Name and Secure DTI 2 days PHP 610.00
Certificate
2 Verify and register the company name with the 1 day PHP 40.00
Securities and Exchange Commission (SEC)
3 Deposit paid-up money in the Authorized Agents 1 day No cost
Bank (AAB) and obtain bank certificates for deposit
4 Filing of Notice of Articles and affidavit of the 1 day PHP 500.00
Treasurer to the notary Public
5 Register the business with SEC and submit 3 days PHP 2,665.00
Taxpayer
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Identification Number (TIN) pre- registered
6 Obtain Barangay Clearance 1 day PHP 500.00
7 Pay the annual Community Tax 1 day PHP 500.00
8 Apply for Business Permit 1 day No cost
9 Obtain Business Permit BPLO 6 days PHP 4,939.00
10 Purchase special account books 1 day PHP 400.00
11 Secure Certificate of Registration and TIN from 2 days PHP 1,115.00
BIR
12 Obtain Authorization to Print receipts and invoices 1 day No cost
13 Have Official Receipt printed at BIR affiliated 7 days PHP 3,500.00
printers
14 Have Books of Account and Certificate 1 day No cost
Delivery(PCD) for printers stamped by BIR
15 Register with the Social Security System (SSS), 7 days No cost
the Philippine Health Insurance Corporation
(PhilHealth) and Home Development Mutual Fund
(PagIbig)
TOTAL PHP 18, 439.00
Approximate PHP 20,000.00
The table presents the pre-operating activities that the company will follow. First,
the company will verify and register the company name with the Securities and
Exchange Commission (SEC). Then, the business will deposit paid-up money in the
Authorized Agents Bank to obtain bank certificates for deposit. After depositing, the
business will file Notice of Articles and Affidavit of the Treasurer to the Notary Public
with 1 day completion time and PHP 500.00 associated cost. Next, the business will be
registered with SEC and submit Taxpayer Identification Number (TIN) pre-registered
with a completion time of 3 days and PHP 2,665.00 associated cost. Obtaining a
Barangay Clearance will be the next step with 1 day completion time and PHP 500.00
associated cost. Then, the business will pay the annual Community Tax with 1 day
completion time and PHP 500.00 associated cost. Next, the business will apply for the
Business Permit with 1 day completion time and no associated cost. After that, the
business will obtain the Business Permit BPLO with 6 days completion time and PHP
33
4,939.00 associated cost. Next, the business will purchase the special account books
with 1 day completion time and PHP 400.00 associated cost. Then, the business will
secure the Certificate the Registration and TIN from BIR with 2 days completion time
and PHP 400.00 associated cost. Next, the business will obtain the Authorization to
Print receipts and invoices with 1 day completion time and no association cost. After
that, the business needs to have Official Receipt printed at BIR affiliated printers with 7
days of completion time and 3,500.00 associated cost. Then, the business needs to
have Books of Account and Certificate Delivery (PCD) for printers stamped by BIR with
1 day completion time and with no associated cost. Lastly, the business needs to
register with the Social Security System (SSS), the Philippine Health Insurance
Corporation (PhilHealth) and Home Development Mutual Fund (Pag-Ibig) with 7 days
completion time and with no associated cost. Overall, the total pre-operating cost that
the company will pay for is PHP 18,439.00.
3.9.1 Legal and Taxation Requirements
The legal requirements to start a business in the Philippines depend on its
business and industry type. Partnerships and undertakings must be registered
with the Securities and Exchange Commission (SEC). Although the business
only needs to be registered in SEC, registering the business name with the
Department of Trade and Industry (DTI) is still required.
Basic Requirements
34
The following are the basic requirements to start commencing a business in the
Philippines:
1. SEC registration – for registering as a partnership or corporation.
2. DTI registration – for registering the business trade name (BTR)
3. Mayor’s business permit – for getting the license to operate in the city or
municipality and payment of local business taxes.
4. BIR registration – for getting TIN, official receipts and invoices,
registering books of accounts, and paying your national internal revenue
taxes (Income tax, VAT or Percentage Tax, Withholding Taxes, etc.) (see
Appendix p. 134).
5. SSS, PhilHealth, and Pag-Ibig Fund registration – for registering the
proponents or company as an employer and for remitting their employees’
contribution together with the employers’ share (see Appendices pp. 130-
133).
Chapter 4
MARKETING FEASIBILITY STUDY
This marketing feasibility study focuses on how Food Realm Inc. will market its
product to the public. There are numerous business tactics or approaches that can
introduce the product to its target market and step-by-step methods on how to induce
35
the target market to buy it. The marketing feasibility study will show which of those
tactics will be used by the business to sell the product and make it profitable.
4.1 Marketing Feasibility Objectives
 To understand the market.
 To determine whether enough demand exists to make the venture
successful.
 To ensure that the product will be enjoyed by the customers.
 To see if the product can penetrate the target market.
4.2 Market Description
4.2.1 Product Description
Heat n’ Eat is an innovative electric lunch box that can reheat food when
plugged into an electric source. The proponents call it a lunch box since it is an
appliance and a food container in the form of a lunch box. It will be manufactured
by Food Realm Inc. It is very modern and it will revolutionize the way people,
especially professionals, enjoy their home-prepared food at work. It will be the
finest kitchenware that will become popular to a lot of people. With it, people can
bring their delicious meal for later consumption and still eat it like the food is just
recently cooked. After it is connected to a power source, the food will be heated
within a few minutes. The product, which is the electric lunch box, is made of
36
plastic housing so users will be less likely to burn themselves while using it. It will
also come with a carrying handle for easy transportation, similar to a picnic
cooler. The insulation feature of the lunch box will ensure that the food will be
warm and the lunchbox will keep its temperature safe for use while the amount of
energy that will be consumed is reduced. This portable food warmer uses
constant temperature heating system, which has both the heating and insulation
function. Simply plug it to an electric source, then wait for the meal to be warm.
The electric lunch box also has 3 compartments, making it easier to take all kinds
of food separately, from snack, sushi, roll or salad, to rice, chicken, etc. The
product is well insulated to help lock in the temperature, keeping the food hot for
a longer time. Customers can heat their meal while driving and then take it along
to their work area, camping area, etc. The product is suitable for storing food to
school, office, picnic, camping and so on.
4.2.2 Product Benefits
Having an electric-heated lunchbox saves a significant amount of money
for hot lunches over takeout food or restaurant lunches. A typical takeout lunch
costs too much. Home-packed lunches are more nutritious than takeout meals.
Using a heated lunchbox at work also saves time in going to the cafeteria or
canteen and queueing in long lines. Busy professionals will not need to wait to
use the office microwave to heat up their food. Electric heated lunch boxes can
37
be plugged in at the desk conveniently and it will heat lunch just ready for the
lunch break. The product gives customers more food choices since they are not
compelled to the menu in the office or school cafeteria which are often unhealthy,
expensive, or not delicious. Eating cold sandwiches for lunch every day can be
tedious and people will quickly get tired of it. Hot lunch boxes make it possible to
bring more types of food to work without having to rely on the usual standbys,
which makes lunch time a more enjoyable experience and something to look
forward to every day. Also, electric heated lunchboxes are easy and convenient
to use. Simply plug it into a wall outlet or car adapter and it can heat lunch
typically within 30 minutes or less. Since most heated lunch boxes use a very low
voltage, overheating or burning food is not usually a problem. The food remains
at the correct temperature until a person is ready to eat. An electric heated
lunchbox can be used to prepare a wide range of meals. Of course, they are
great for heating up leftovers, which provides an additional benefit by helping to
ensure that leftover food will be consumed rather than being left in the home
refrigerator until it spoils.
4.2.3 Product Testing
Product testing, also called consumer testing or comparative testing, is a
process of measuring the properties or performance of products. The theory is
that since the advent of mass production, manufacturers produce branded
products which they assert and advertise to be identical within some technical
standard. For the product testing of Heat and Eat, the product will surely be
tested that, if it is plugged in, it will not explode. Food Realm Inc. will also make
38
sure that the heating feature will surely function so that every food that needs to
be heated will be heated. The compartments in the lunch box that the business
will manufacture are removable so that it will be easy to clean and will not cause
any damage to the product.
4.3 Market Demand Analysis
4.3.1 Industry
The business operates in the food container industry. There are numerous
commercial and non-commercial brands in the food container industry in the
Philippines. Commercial brands include Lock & Lock, Home Gallery, and many
others. Non-commercial food containers can be found in public markets, on the
other hand. Considering the various brands of food containers, the food
containers industry can also be classified according to its materials. There are
food containers made of plastic (microwavable and non-microwavable), stainless
steel, and glass. With that industry, the product will enter the market slowly but
progressively.
39
Market Size
105
Projected Market Size in billion PHP 100
2020 2024
Projected Food Container Market Size
Figure 4.1: Projected Food Container Market Size
Source: Philippine News Agency
It is projected that the food container market size will increase by 5% from
2015 to 2020. Food container industry is a part of a bigger industry which is the
household goods industry. The market of household goods in the Philippines
has 6% yearly growth rate according to Philippine News Agency. This indicates
that Filipinos are fond of buying tools, equipment, and appliances for their home.
The large demographic group of first-time home buyers also contributes a lot to
the growth rate. Noting that food containers are just some of the household
goods that belong to that 6% yearly market growth rate, it is safe to assume that
the food container industry will be increasing by 5% within 5 years.
40
4.3.2 Demand Factors
The factors that may affect the demand of a product are: price, consumer
preferences, consumer’s income, population, prices related to the production
goods, and expectation of future prices.
According to Barnier and Chappelow (2020), the law of demand states
that the lower the price of a product is, the higher the demand becomes. Price
affects the demand of the product. Though this may not be applicable to all
products, this will be applicable in food containers because most consumers tend
to buy necessities first and buy non-essential things later. Food containers
typically offer the same features, so a lot of customer will purchase the most
affordable food container.
Consumer preferences can also affect the product’s demand. Some
consumers who prefer to buy meals at canteen, fast food, or restaurant may not
consider buying food containers. Another demand factor is consumer’s income.
Consumers who do not have the capacity to buy food containers will, of course,
tend to ignore buying them. Population has a big impact on demand. A bigger
population might mean more potential customers but it also means less budget
for buying stuff. In addition, when prices related to production goods (like plastic,
stainless steel or glass) increase, then the selling price will also increase and the
demand will decrease. Lastly, if customers expect that food containers will have
higher price in the future, then it is more likely that they will buy today. If
customers expect that the price of food containers will be lower in the future
41
maybe due to upcoming sale, discounts, and such, then it is more probable that
they will not buy today.
The current trends in the kitchenware industry are material safety,
durability, airtight covers, and material eco-friendly.
Here is the past 5-year demand of food containers in the Philippines. It is
estimated since there is no available information about the subject.
Table 4.1: Past 5-Year Demand of Food Containers
Year Quantity Demand
2015 1,250,000
2016 1,300,000
2017 1,100,000
2018 750,000
2019 950,000
Source: Food Processing and Packaging Equipment Philippines, Volume 61
Over the past 5 years, the quantity demand for food containers is
fluctuating. The lowest quantity demand of 750,000 is in 2018 while the highest
quantity demand of 1,300,000 is in 2016. The increase in population and the
inflation in the country are some of the factors why the demand for food
containers decreases at some period. Specifically, when a consumer has more
family members to provide for or when a consumer’s budget is low due to
inflation, the desire for products that are not very essential, like food containers,
decreases.
42
Table 4.2: Projected Demand for Food Containers
Year Quantity Demand
2020 700,000
2021 500,000
2022 1,000,000
2023 800,000
2024 650,000
The projected demand of food containers is also not stable. The reason
for this is that consumers who already own food containers will be less likely to
buy another food container. The inflation is predicted to affect the decrease in
demand at some period while the rise in demand is predicted to be caused by
consumers who are starting to have a higher financial status.
4.4 Market Supply Analysis
4.4.1 Supply Factors
43
Factors of changes in supply are technological process, number of sellers,
cost of production, and expectation of future price. Technological process speeds
up production of food containers certainly, resulting an increase in supply.
When there are more sellers of food containers, the supply increases.
More sellers can harm the business because this leads to less market control
over the product, since people can choose between brands, and competitions.
Lower cost production also increases supply. Expectation of future price also
affects supply. If the business expects the future price of the food containers to
be higher, then it is more likely that it will be sold later to benefit from the higher
price.
Table 4.3: Past 5-Year Supply of Food Containers
Year Quantity Supply
2015 2,000,000
2016 2,000,000
2017 1,500,000
2018 1,500,000
2019 1,500,000
The quantity supply of food containers for the past five years is somewhat
stable. The food container manufacturers knew that the demand is fluctuating so
they controlled the supply. It is also stable because not a lot of new businesses
are producing food containers.
44
Table 4.4: Projected Supply of Food Containers
Year Quantity Supply
2020 1,500,000
2021 1,500,000
2022 1,500,000
2023 1,500,000
2024 1,500,000
The projected quantity supply of food containers is constant for the next
five years. Though there might be new food container manufacturers like Food
Realm Inc., more established food container manufacturers will lessen the supply
that they will produce because of the increase in population and the inflation that
will highly affect the buying behavior of customers.
4.5 Summary of Demand-Supply
Table 4.5: Demand-Supply Analysis
45
YEAR DEMAND SUPPLY D-S GAP %
unsatisfied
(D-S)
2015 1,250,000 2,000,000 -750,000 -60%
2016 1,300,000 2,000,000 -700,000 -53.85%
PAST 2017 1,100,000 1,500,000 -400,000 -36.36%
2018 750,000 1,500,000 -750,000 -100%
2019 950,000 1,500,000 -550,000 -57.89%
2020 700,000 1,500,000 -800,000 -114.29%
2021 500,000 1,500,000 -1,000,000 -200%
PROJECTED 2022 1,000,000 1,500,000 -500,000 -50%
2023 800,000 1,500,000 -700,000 -87.5%
2024 650,000 1,500,000 -850,000 -130.77%
Table 4.5 shows that the demand for food containers is always satisfied in the
past five years and in the projected five years. Thus, the supply is always higher than
the demand. This can be seen in malls, grocery stores, and public markets as there will
always be a large number of stocks of food containers available.
The demand-supply analysis of food containers shows that there is an existing
demand for food containers. Food Realm Inc. can penetrate the market more easily
because there are already customers for products that are alike to Heat n’ Eat.
4.6 Market Environment
4.6.1 Target Market
46
4.6.1.1 Target Market Profile
Businessmen,
Busy
teachers, doctors,
people
etc.
People who want to

Health- stay fit.
conscious People who aim to
people lose weight.
Etc.
Figure 4.2: Target Market Profile
The target market of Heat n’ Eat are the people who have busy
and/or health-conscious lifestyles. More specifically, professionals who are
always busy and health-conscious individuals are the target market of the
product.
The possible consumers and end consumers of the electric lunch
box will be the workers who are always busy, like doctors, nurses,
businessmen, teachers, etc., and health-conscious people, or more
specifically, people who always check what they eat and people who
always work-out and tries to stay fit. Most probably, this kind of lunch box
will be used on their daily basis. They can also use it anytime they want.
The end consumers of this product will be the professionals and
health-conscious people. The reason why they are the end consumers is
47
because these people are always ordering takeout or going to the
canteens. The best thing about bringing homemade food is that it will help
them to keep track of the calories they are taking while not spending too
much of their budget.
In today’s generation, something new can be easily adapted. Food
Realm Inc. can guarantee that this Heat n’ Eat electric lunch box will catch
the attention of these people since it has different purposes and it looks
neat.
4.6.1.2 Product Benefits to its Customers
This unique product will be very helpful for the people who have
busy lifestyle, healthy lifestyle and people who wants to save time and
money. It will benefit the customers since the electric lunch box are made
especially for people who lack in time to buy and make their own food
especially the workers, the managers or even the CEO’s, and to those
people who are healthy living because it helps to keep and improve
people's health and well-being. Lastly, it can also benefit people who want
to save money and time when buying meals for lunch. The lunch box will
give them more food choices and will make their lunch much easier and
convenient. The main purpose of this lunch box is for people to enjoy
piping hot meals on any time of the day. The heat in the lunch box is
maintained evenly so the food will not be clumpy, soggy or stiff. These
48
lunch boxes use low heat and will prevent the food from sweating, so
customers can eat healthy foods they personally want.
4.6.2 For Business-to-Business Markets:
4.6.2.1 Product Purchase
Businesses can purchase the product either through the store, the
web, or over the phone. The company will contact and propose the
product for distribution or wholesale to different malls, appliance stores,
department stores, grocery stores, etc. When Food Realm Inc. becomes
the permanent supplier of the electric lunch boxes to different
establishments, not only more customers can access and purchase the
product easier, but also the establishments will profit by selling the
product.
4.6.2.2 Market Size
The market size would depend on the place where the product will
be established. Target market is also a factor of the market size and the
target that the business aims is where the workers and people who are
health-conscious are. The place that the proponents are aiming to start
the business is a place near malls like SM City Novaliches, schools,
offices and other crowded places or places that have more workers.
49
Market Size
Busy Lifestyle
People
Middle Management
First Line of
Business
Figure 4.3: Market Size
This electric lunch box will benefit the target market and other
customers. The electric lunch box is made for people who lack in time to
buy and make their own food and for people who have a busy lifestyle. It
helps to keep and improve people's health and well-being. Lastly, it is also
for people who want to save money and time and those who lack time to
go to restaurants.
50
Target Market Share
of Food Realm Inc. in 2020
15% Food Realm Inc.

25% Lock & Lock
Tiger
20%
Glass Lock
20% Home Gallery
20%
Figure 4.4: Target Market Share of Food Realm Inc. in 2020
The targeted market share of Food Realm Inc. in 2020 is 15%. The
proponents are fully aware of the strong competition in the food container
industry. Hence, they know that the uniqueness of the product compared
to the competitors’ will be the key asset in entering the market with a
competitive beginning market share. The Home Gallery is predicted to still
be leading in 2020 since it is a well-known brand of affordable food
containers. Food Realm Inc. will also just start operating by 2020 so it will
still need time to be an established brand of food container.
51
4.6.3 For Business-to-Customer Markets:
4.6.3.1 Target Market Demographic Profile
Buying a lunch box does not necessitate gender, ethnicity and age
as long as they have the ability to pay for it or someone will buy it for the
end consumer. A lot of people prefer to bring food from their home. It is
needed for daily use such as lunch box in school, office and in other
places. Everyone can purchase one if they want to. The same goes for
Heat n’ Eat electric lunch box, anyone can buy it. However, Food Realm
Inc. mainly targets the people who have busy and health-conscious
lifestyles. The business is targeting the working individuals, particularly
doctors, nurses, businessmen, lawyers, etc., and health-conscious
individuals, specifically elderly people, people who are vegan or those who
are strictly following other kinds of diet, people who always exercise at the
gym, people who spend a lot on health-related items. The proponents had
an agreement that they will target those people who are still capable of
working since these people spend most of their time outdoors. Based on
the survey (see Appendix pp. 141-143), the demographic profile of the
target market are as follows: age is 23 years old and above, location is in
Quezon City or other cities nearby Quezon City, and working status can
be employed or unemployed.
52
Potential Customers
57
43
Projected Volume of Potential Customers

Based on Market Survey Result
Figure 4.5: Projected Volume of Potential Customers Based on
Market Survey Result
Based on the market survey result in which majority of the
participants are 21-29 years old, lives in Quezon City, and whose monthly
income ranges from PHP 10,000 to PHP 30,000, only 43 out of 100 are
willing to buy an electric lunchbox worth more than PHP 500.
Food Realm Inc. will depend on the willingness to purchase and the
ability to buy Heat n’ Eat. Heat n’ Eat electric lunch box targets the people
who are in the lower middle class because they are more capable to
53
purchase the product. The price of the electric lunch box that ranges from
PHP 800 and above is a bit impractical for those in the lower class. Those
who are in middle to upper class, however, are used to buy things that are
quite expensive. Purchasing an affordable electric lunch box that costs
below PHP 800 and a brand that is neither high-end nor prominent will be
questionable for the buyers. Whereas if Food Realm Inc. targets the lower
middle class, they get an inexpensive good quality lunch box with add-on
benefits.
4.6.3.2 Psychographic Segmentation
Understanding the target market's psychographic segmentation can
help marketers know what their customers like and have interest in and
can help marketers know how to persuade their consumers. Heat n’ Eat
electric lunch box will be a very useful product. If the business wants to
separate consumers into groups based on their knowledge, behaviors,
uses or reactions to a product, psychographic segmentation will do the
job.
Psychographic segmentation determines customers’ preference
and buying behavior. This lunch box will be an added interest to
consumers because of its additional features.
The psychographic segmentation of the target market are as
follows: shopping frequency is at least once a month, food preference is
54
eating hot meals, and purchasing behavior is willing to spend more than
500 PHP for an electric lunch box.
4.7 Market Survey Result
Part 1. Frequency and Descriptive Data on Demographic Profile
The tables in Part 1 show the frequency and descriptive data on demographic
profile of the respondents.
Table 4.7.1: Gender
Gender Frequency Percentage
Female 48 48.00
Male 52 52.00
TOTAL 100 100.00
The table shows the frequency and percentage on gender. Most of the
respondents are male with 52%. The other 48% are female respondents. The total
number of respondents is 100.
55
Table 4.7.2: Age
Age Frequency Percentage
30 years old and above 30 30.00
21-29 years old 31 31.00
19-20 years old 11 11.00
17-18 years old 28 28.00
TOTAL 100 100.00
The table presents the frequency and percentage on age. Majority of the
respondents belong to the age group of 21-29 years old with 31%. Respondents aged
30 years old and above make up a percentage of 30%, respondents aged 17-18 years
old make up a percentage of 28%, and respondents aged 19-20 years old make up a
percentage of 11%.
Table 4.7.3: Location
Location Frequency Percentage
Others 2 2.00
Quezon City 98 98.00
TOTAL 100 100.00
The table illustrates the frequency and percentage on location. Most of the
participants live in Quezon City with 98%. Others live in other cities with 2%.
56
Table 4.7.4: Employment Status
Employment Status Frequency Percentage
Unemployed 9 9.00
Employed 47 47.00
Student 44 44.00
TOTAL 100 100.00
The table displays the frequency and percentage on employment status. Majority
of the participants are employed with 47%. Many are students with 44% and 9% are
unemployed.
Table 4.7.5: Monthly Income
Monthly Income Frequency Percentage
More than 60,000 PHP 6 6.00
30,001 to 60,000 PHP 9 9.00
10,001 to 30,000 PHP 32 32.00
10,000 PHP or less 0 0.00
TOTAL 47 47.00
The table indicates the frequency and percentage on monthly income. Most of
the respondents have a monthly income of 10,001 to 30,000 PHP with 32%. There are
no respondents whose monthly income are 10,000 PHP or less while 9% earn 30,001 to
60,000 PHP monthly and 6% earn more than 60,000 PHP monthly. Only 47 out of 100
57
respondents have monthly income. This automatically means that 53% have no monthly
income.
Part II. Frequency and Descriptive Data on Psychographic Profile
The tables in Part 2 show the frequency and descriptive data on psychographic
profile of the respondents.
Table 4.7.6: Buying Frequency
How often do you shop? Frequency Percentage
Very Frequently 22 22.00
Once a week 15 15.00
Once a month 11 11.00
Once every few months 15 15.00
Less often 37 37.00
TOTAL 100 100.00
The table shows the frequency and percentage on buying frequency. Majority of
the respondents shop less often with 37%. Participants who shop very frequently make
up 22%. 15% shops once a week and another 15% shops once every few months. The
rest shops once a month with 11%.
58
Table 4.7.7: Purchasing Power Based on Social Status
Do you own a company,

school, or any similar Frequency Percentage
establishments?
No 97 97.00
Yes 3 3.00
TOTAL 100 100.00
The table presents the frequency and percentage on purchasing power based on
social status. Most of the participants do not own any establishments with 97%. The
remaining 3%, on the other hand, owns establishment/s.
Table 4.7.8: Food Purchasing Preference
In which way do you

prefer to eat when you Frequency Percentage
are at work?
Pack own lunch in a lunch
66 66.00
box
Buy food at fast food or
11 11.00
restaurant
Buy food at the company
23 23.00
canteen or cafeteria
TOTAL 100 100.00
The table indicates the frequency and percentage on food purchasing
preference. Majority of the participants buy food at the cafeteria or canteen in school or
work with 66%. The other 23% buys food at the canteen or cafeteria and the other 11%
buys food at fast food or restaurant.
59
Table 4.7.9: Food Temperature Preference
4. Do you want your

meals to be hot when Frequency Percentage
eating at work?
No 2 2.00
Yes 98 98.00
TOTAL 100 100
The table displays the frequency and percentage on food temperature
preference. Most of the respondents want their meals to be hot when at work or school
with 98% for the fourth statement. The remaining 2% does not prefer hot meals when
eating at work.
Table 4.7.10: Purchasing Behavior
5. How much are you

willing to spend for a Frequency Percentage
lunch box with heater?
More than 500 PHP 43 43.00
250-500 PHP 31 31.00
Less than 200 PHP 26 26.00
TOTAL 100 100.00
The table illustrates the frequency and percentage on purchasing behavior. Most
of the respondents are willing to spend more than 500 PHP with 43%. 31% are willing to
60
spend 250-500 PHP for a lunch box with heater. The rest are willing to spend less than
200 PHP for a lunch box with heater with 26%.
Table 4.7.11: Product Feature Preference
6. What is the most

important feature that
Frequency Percentage
you look for when
buying a lunch box?
Others 0 0.00
Can keep food warm 13 13.00
Durability 50 50.00
Safe Materials 37 37.00
TOTAL 100 100.00
The table presents the frequency and percentage on product feature preference.
The most important feature customers look for when buying a lunch box is durability
according to the participants with 50%. Participants who prefer a lunch box made with
safe materials comprise 37%. 13% of the respondents wants a lunch box that can keep
food warm.
61
Part III. Frequency and Descriptive Data on Future Product Benefits/Features
The tables in Part 3 show the frequency and descriptive data on future product
benefits/features.
Table 4.7.12: Future Product Benefits/Features – Can reheat food
Can reheat food Frequency Percentage
Very Likely 84 84.00
Somewhat Likely 14 14.00
Either 1 1.00
Somewhat Unlikely 0 0.00
Very Unlikely 1 1.00
TOTAL 100 100.00
The table shows the frequency and percentage on future product
benefits/features – can reheat food. Majority of the respondents are very likely to
purchase a lunch box that can reheat food with 84%. Participants who answered
somewhat likely comprise 14%. 1% of the respondents answered either. Another 1%
answered very unlikely. Nobody among the participants answered somewhat unlikely.
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Table 4.7.13: Future Product Benefits/Features – Has an airtight cover for less
spillage
Has an airtight cover for

less spillage
Either 6 6.00
TOTAL 100 100.00
The table presents the frequency and percentage on future product
benefits/features – has an airtight cover for less spillage. Majority of the respondents
are very likely to purchase a lunch box that has an airtight cover for less spillage with
68%. The other 25% are somewhat likely to purchase, while 6% answered either, and
1% are very unlikely to purchase.
63
Table 4.7.14: Future Product Benefits/Features – Can keep food cold
Can keep food cold Frequency Percentage
Either 48 48.00
TOTAL 100 100.00
The table indicates the frequency and percentage on future product
benefits/features – can keep food cold. Majority of the respondents are neutral in
purchasing a lunch box that can keep food cold with 48%. 27% are very likely to
purchase a lunch box that can keep food cold, 21% are somewhat likely to purchase,
2% are somewhat unlikely to purchase, and another 2% are very unlikely to purchase.
64
Table 4.7.15: Future Product Benefits/Features – Has an antibacterial cover to
prevent food contamination
Has an antibacterial
cover to prevent food Frequency Percentage
contamination
Either 1 1.00
TOTAL 100 100.00
The table displays the frequency and percentage on future product
benefits/features – has an antibacterial cover to prevent food contamination. Majority of
the respondents are very likely to purchase a lunch box has an antibacterial cover to
prevent food contamination with 59%. 48% are somewhat likely to purchase, 1% are
neutral, 1% are somewhat unlikely to purchase and 1% are very unlikely to purchase.
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Table 4.7.16: Future Product Benefits/Features – Has an alarm for when food is
reheated
Has an alarm for when

food is done reheated
Either 2 2.00
TOTAL 100 100.00
The table illustrates the frequency and percentage on future product
benefits/features – has an alarm for when food is done reheated. Majority of the
respondents are very likely to purchase a lunch box has an alarm for when food is
reheated with 64%. There are also participants who answered somewhat likely with
31%. 2% are neutral, 0% is somewhat unlikely to purchase, and 3% are very unlikely to
purchase.
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4.8 Competitive Analysis
4.8.1 Direct and Indirect Competitors
The business cannot afford to compete with everyone. The Food Realm is
located in Quezon City and the distribution of the product will be mostly within the
urban area such as Manila. The identified indirect competitors are also located in
that area. The direct competitors of Food Realm Inc. are the online shops that
can be found in online selling platforms such as Shopee, Lazada, Amazon and
others. The advantage of the business over those shops are: the unique alarm
feature of the product, the physical store and its accessibility since not everyone
shops online and some online stores don’t ship in some areas. For the indirect
competitors, there are Lock and Lock, Tiger, Home Gallery and Glasslock. The
four companies are popular brands that can compete with Heat n’ Eat, although
their products and Heat n’ Eat are different when it comes to features, since they
run their business much longer than Food Realm.
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4.8.2 Market Share
Market Share of Direct and Indirect Competitors
16%
5%
45%
25%
9%
Lock & Lock Glass Lock

Home Gallery Tiger
Online Sellers in Shopee and Lazada
Figure 4.7: Market Share of Direct and Indirect Competitors
The direct competitors of Heat n’ Eat are the online shops in Lazada and
Shopee selling electric lunchboxes. It is projected that those shops hold 16% of
market share. They have the third largest market share among the direct and
indirect competitors of Heat n’ Eat.
For the indirect competitors which are the Lock and Lock and Home
Gallery, the competition is tough since Lock and Lock is known for durability
while the Home Gallery is known for being affordable. The Lock and Lock remain
its rank as the number one food container in the Philippines. The market share of
Lock and Lock is 45% and Home Gallery has a market share of 25%. The
products from the two companies are both safe to use, durable, and affordable.
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Heat n’ Eat is likewise safe, durable, and affordable. These two brands will be the
great competitors of Food Realm Inc. so the company will aim to be innovative to
reach the level of the two brands.
4.8.3 Key Barriers to Entry
One of the key barriers to entry is the limited market. There may be
workers who cannot afford the price. The company will resolve this by keeping
the selling price low though it will still be not guaranteed that everyone will be
able to afford the product.
Another barrier is being new to the field. To start a business is a hard thing
and there will be a lot of hindrances that the business owners need to overcome,
but the owners are enthusiastic towards the venture, so they may succeed if they
will do their best.
4.8.4 Uniqueness of the product compared to its competitors
Food Realm Inc. came up with the idea of an electric lunch box that
alarms when the food is hot enough which is unique. Although there are products
that are similar to Heat n’ Eat, Heat n’ Eat is more unique because of its features
such us, the alarm that rings when the food is ready, being convenient to bring
since the materials are lightweight making the product weigh 509 grams only, the
design is trendy and stylish, the durability and the price of the product. Heat n’
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Eat is a two-layered electric lunch box, the cord is detachable so it can also be
used as an ordinary lunch box and it has a bag for the lunch box. It became
unique compared to the competitors since it is convenient and easy to use.
4.9 Marketing Program
Marketing Mix (4 P’s)
4.9.1 Product
(front)
(back)
Figure 4.8: The Product
4.9.1.1 Primary Features
The primary feature of Heat n’ Eat (electric lunch box) is it reheats
meals so that people will enjoy eating their food at its right temperature.
These lunchboxes come with a handle for secured transportation. It also
has dividers for 3 compartments so consumers can heat one main dish
and two side dishes at the same time. The electric lunch box is
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professionally built and features a handle for a convenient and easy way
to carry it to different places. It is also made of plastic for it to be sturdy
and durable enough for hassle-free transport.
4.9.1.2 Added value Compared to competitors
Heat n’ Eat (electric lunch box) has other features that are different
from its competitors. It has enough serving capacity for a single person.
The handle makes it easy to carry and the lid maintains the hygiene level
of the food. The unit is detachable, and the cover is safe for dish washing.
The lunch box is lightweight at 509 grams so, even if consumers are
planning to take it every day to work, it would not be an inconvenience.
Food Realm Inc. also presents itself with an attractive logo and tagline that
will create an impact and be remarkable to the customers.
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4.9.2 Place
Figure 4.9: Place
The company will be housed at 14 Orange St., Odelco Subdivision,
Novaliches, Quezon City and will be sold directly at the same location. When the
customer is from a far location, Food Realm Inc. can deliver it right to their
doorsteps. The location is near schools, malls, offices, and other business
establishments. There are also many people passing by the area which is an
advantage for Food Realm Inc.
4.9.2.1 Distribution Channels
The company has chosen to have a direct distribution whereby the
product will be sold directly to the customer in Novaliches, Quezon City.
Apart from that, the company will also distribute to malls, grocery stores,
and appliance stores to gain more profit and customer.

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4.9.2.2 Strategic Placing in the Market
Food Realm Inc. will be located in 14 Orange St., Odelco
Subdivision, Novaliches, Quezon City, near malls like SM City Novaliches,
offices, schools and many more. Since the target market are workers and
people who are health-conscious, putting up a store near this kind of place
will be an advantage for the manufacturers. In addition, one of the target
markets are workers. Novaliches, Quezon City is a busy place and might
be a wide target market size for the business and a higher chance of
gaining sales than in other places.
The uniqueness of the product will get the attention of the
consumers because the product is not just an ordinary lunch box but a
heating lunch box.
4.9.3 Promotion
4.9.3.1 Advertising and Promotion
The company has opted to use social media and other conventional
sales methods such as circulating brochures and flyers as means to
promote, advertise, and market the product. They came up with this idea
simply because they think that the best way to promote and disseminate
their product’s image is to optimize the use of technology with the aid of
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social media. The best way to promote and disseminate information about
the product is to optimize the use of technology through social media. It
will be more cost effective to make the product known through social
media and other digital platforms because almost all are connected to
social media.
4.9.3.1.1 Advertising
In advertising the product Heat n’ Eat, the company will use
a less consuming advertising technique like giving out flyers,
brochures, and highly personal advertising through social media.
By that procedure on advertising the product, the person who will
be given a flyer, brochures, and view it through social media, will be
given details about the product. Also, by this advertising technique,
the company is persuading their target market purchase the
product.
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Marketing Plan
Table 4.9.1: Marketing Plan
Year Activities Cost

1st Year Consistent Social Media PHP 58,400.00
Advertisement. Distribution
2021-2022 of flyers and brochures in
areas near the company
(2,000 pcs.).
2nd Year Consistent Social Media PHP 58,400.00
(2,000 pcs.).
3rd Year Consistent Social Media PHP 58,400.00
(2,000 pcs.).
The table shows the marketing plan for the first 3 years. On
the first three years, the company will execute consistent social
media advertisement in Facebook, Twitter, and Instagram, and the
distribution of 2,000 pieces of flyers and brochures in areas near
the company every year. This will cost a total yearly advertising
expense of PHP 58,400.
4.9.3.1.2 Sales Promotion
The product will be advertised through different social media
platforms. By distributing flyers, Food Realm Inc. can reach its
target market. Also, another way to promote the product is to give
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promo coupons to the target market. In that way, the company will
attract new customers to buy the product and it can minimize the
advertising costs. Promo coupons will also be used whenever the
product goes on sale (see Appendix p.136). Lastly, Food Realm
Inc. will stage a demonstration on how to use the product.
4.9.3.1.3 Personal Selling
There will be no personal selling for Heat n’ Eat. Only in-
store selling will be done because this marketing strategy is not the
best way to advertise and sell the product. This marketing strategy
is more effective for personal care products, financial products, and
land or other properties.
4.9.3.1.4 Public Relations
For public relations, the group will ask for an agreement to
be part of office assemblies. By that method, the workers will know
the features and the efficiency of the product when they see the
demonstration on how to use it and they may also share it to their
relatives. In that way, the business will have an advantage to
communicate with the target market. It can also be helpful to parcel
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what they know about the product to their relatives and friends and
to make the product a significant one.
4.9.3.2 Methods and Message
4.9.3.2.1 Type of Media Used
The firm will use advertising to market the product. The
advertising will be seen on social media sites such as Facebook,
Twitter, and Instagram (see Appendices p. 137-139). Advertising
through social media is better because there are many people who
can see the ads. People in social media can quickly get to know the
product and share it with their friends or followers. Also, having a
social media page will persuade consumers to purchase the
product because they could see the features of the product, how to
use it, and its price.
4.9.3.2.2 Message Conveyed
The message that the product will convey is that people
should value their meal time by eating meals the way they want
their meals to be – delicious, healthy, and hot.
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4.9.3.3 Spending and Timetables (of Business Pre-Operation)
Table 4.9.2: Spending and Timetable of Business Pre-Operation
PARTICULARS AUG SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY DURATION

Planning for
Business 14 days
Proposal
Market
Research 35 days
Purchase of
Materials & 31 days
Product
Assembling
the Product 61 days
and Minor
Place
Renovation
Finalizing the
Design of the 20 days
Product
Advertising 28 days
Starting the
Business
The business was planned within the last 14 days of August 2019.
The market research was conducted for 35 days from August to
September. In September, the materials needed for the product was
purchased and the assembling of the product and minor place renovation
started. The assembling of the product and place renovation were finished
by the end of November as well as the finalization of product design.
Advertising began in December and the business will start to operate in
January 2020.
4.9.3.3.1 Advertising and Promotions
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Food Realm Inc. will advertise and promote the product a
month before the business starts to operate. The distribution of
flyers and brochures and the social media advertisements will be
executed starting December 2019 since the business operation will
start in January 2020. The advertising and promotions will
continuously be carried out since then.
4.9.4 Pricing
4.9.4.1 Pricing Strategy
The business will use the market skimming pricing strategy to the
product. Market skimming pricing strategy aims to provide the medium to
high quality products with high but versatile prices. Target audiences
should be drawn to buy the item flexibly with price. There will be less
expected purchase at first launch, but capital will recover and cost will
decrease, then more target market will be drawn and moved to buy the
product because it is made of medium to high quality materials. The cost
of our product will be at PHP 646.88.
4.9.4.2 Gross Profit Margin
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The following gross profit margin for is computed using the
numbers that can be seen in the Financial Feasibility Study as the given
(see p. 115):
gross profit
Gross profit margin =
net sales
Net sales = PHP 167,033.75
Cost of goods sold = PHP 135,250.00
Gross profit = net sales – cost of goods sold
= PHP 167,033.75 – PHP 135,250.00
Gross profit = PHP 31,783.75
PHP 31,783.75
Gross profit margin =
PHP 167,033.75
Gross profit margin = 0.1902 = 19.03%
19.03% is the monthly gross profit margin.
4.10 Projected Sales Income
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Table 4.10: Projected Sales Income
Month Description Unit Price (in Quantity Sales Income (in

PHP) PHP)
April Heat n' Eat 840 50 30 25200
May Heat n' Eat 840 36 20 16800
June Heat n' Eat 840 27 15 12600
July Heat n' Eat 840 53 47 39480
August Heat n' Eat 840 18 18 15120
September Heat n' Eat 840 45 28 23520
October Heat n' Eat 840 39 22 18480
November Heat n' Eat 840 32 20 16800
December Heat n' Eat 840 54 49 41160
GRAND TOTAL 840 354 249 209160
Chapter 5
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TECHNICAL FEASIBILITY STUDY
Technical Feasibility focuses on the process validating the technology
assumptions, the design of the product or the project and the factors affecting the
effective and efficient purpose of Heat n’ Eat to be offered to the target market. The
proponents’ good decision-making in acquiring the equipment and materials to be
utilized in the production process of the Heat n’ Eat.
5.1 Technical/ Operations Feasibility Objectives
The technical feasibility objectives are as follows:
 To be able to describe the nature of Heat n’ Eat.
 To regulate the production process, costing and the effective standard
conducting procedures in selling the Heat n’ Eat.
 To present the floor plan and project layout of Heat n’ Eat.
 To be able to show the proper waste disposal methods for
manufacturing of the electric heated lunch box.
5.2 Introduction/Overview of the Product
Heat n’ Eat is an innovative electric lunch box that can reheat food when plugged
into an electric source. It is very modern and it will revolutionize the way people,
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especially professionals, enjoy their home-prepared food at work. With it, people can
bring their delicious meal for later consumption and still eat it like the food was just
recently cooked. After it is connected to a power source, the food will be heated within a
few minutes. The product, which is the electric lunch box, is made of plastic housing so
users will be less likely to burn themselves while using it. It will also come with a
carrying handle for easy transportation, similar to a picnic cooler. The insulation feature
of the lunch box will ensure that the food will be warm and the lunchbox will keep its
temperature safe for use while the amount of energy that will be consumed is reduced.
The electric lunch box also has 3 compartments, making it easier to take all kinds of
food separately, from snack, sushi, roll or salad, to rice, chicken, etc.
5.2.1 Outsourced Production
The only part of the Heat n’ Eat that will be outsourced is the plastic
housing. The plastic housing will be molded by other companies that offers
plastic molding. The rest of the materials and labor will be done by Food Realm
Inc.
5.2.1.1 Sources of Supplies
Supplies for the business will come from 999 Mall, 168 Mall,
electronic hardware store, and from an online wholesaler.
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5.2.1.2 Terms and Contracts
Aside from selling the product in store, Food Realm Inc. will
distribute to malls, grocery stores, appliance stores, and such. Distributing
will not only bring more profit to the company but it will also increase the
product’s popularity and reach. .The terms and contract can be found in
Appendices p.
5.2.1.3 Business Process Protection
The company will protect business processes, trade secrets, and
quality control by limiting the access to the proprietary process or
manufacturing process. The owners will also implement a policy that the
employees will keep the proprietary process a secret. With regards to
trade market secrets, the owners and supplier will have a contract that
protects the privacy of the business transactions.
5.3 Production/Technical Process
Proponents would represent students and reviewer staff, as well as working
people living near the city.
84
1. Supplies Delivery Flow Chart
When the materials
Operations manager
are shipped, the
The stock will be will order the
operations manager
reviewed by the suppliers the
will check the quality
operations manager. necessary material
and quantity of
(plastic housing).
the materials.
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Figure 5.1: Supplies Delivery Flow Chart
The stock will be reviewed by the operations manager first to check if it is
enough. If not, the operations manager will order the suppliers, which will mold the
plastic, to get the material or the plastic housing. When the materials are shipped, the
operations manager will check or review the quality and quantity of the materials.
2. Product Operation
86
STEP 5
T h e n , th e
STEP 4 e le c tric ia n w ill
T h e e le c tr ic ia n in s ta ll th e tim e r
STEP 3 w ill m a k e a h o le to th e lu n c h b o x
o n th e s id e to a n d a s s e m b le
T h e e le c tr ic ia n
STEP 2 p u t th e p o w e r th e p ro d u c t.
w ill in s ta ll th e
L E D in d ic a to r to c o rd a n d fo u r
T h e e le c tr ic ia n h o le s o n th e
STEP 1 w ill m a k e th e th e lu n c h b o x .
b o tto m o f th e
T h e e le c tr ic ia n / w irin g s to lu n c h b o x a n d
o p e ra tio n s c o n n e c t th e to s c re w th e
m a n a g e r/ P T C h e a tin g h o u s in g to th e
p ro d u c t e le m e n t, th e a lu m in u m
m a n a g e r w ill a lu m in u m s p re a d e r p la te .
p re p a re th e s p re a d e r p la te ,
h o u s in g o f th e a n d th e p o w e r
lu n c h b o x m a d e c o rd to g e th e r.
b y th e p la s tic
m o ld in g
s u p p lie r.
Figure 5.2: Production Chart
To produce the product, the electrician/operations manager/product manager will
prepare first the housing of the lunch box made by the plastic molding supplier. Then,
the electrician will make the wirings to connect the PTC heating element, the aluminum
spreader plate, and the power cord together. After that, the electrician will install the
LED indicator to the lunch box. The electrician will make a hole on the side to put the
power cord and four holes on the bottom of the lunch box and to screw the housing to
the aluminum spreader plate. Then, the electrician will install the timer to the lunch box
and assemble the product.
3. Service Flow
87
STEP 1 STEP 2 STEP 3 STEP 4
Customer will After choosing, the After testing the The customer will
choose the color of assigned staff will product, receive the order,
the product that test the product and customer will place and will leave the
they want. will teach the order through store as the staff
customer how to the assigned will say "Thank you
use the it properly. worker. Ma’am/Sir, please
come again."
Figure 5.3: Service Flow
The customer will choose the color of the product that they want. Then, the
assigned staff will test the product and will teach the customer how to use it properly.
After testing the product, customer will place order through the assigned worker. The
customer will receive the order, and will leave the store as the staff will say "Thank you
Ma’am/Sir, please come again."
5.4 Costing
Table 5.1: Costing
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DESCRIPTION QUANTITY PRICE TOTAL COST
(in PHP) (in PHP)
Polypropylene plastic 1 80 80
(plastic housing)
Positive temperature 1 100 100
coefficient thermistor
type heating element
Terminal Connector 1 10 10
Power Cord 1 18 18
Timer with alarm 1 45 45
Screw 4 pcs. 1 4
Electrical Wires 1 12 12
Asbestos Insulator 1 20 20
Aluminum Spreader 1 20 20
Plate
Led Indicator 1 5 5
Rubber screw cover 4pcs. 1 4
TOTAL COST FOR A LUNCH BOX 546
The table shows the costs of the materials for the product. The molded
polypropylene plastic or the plastic housing costs PHP 80. The PTC heating element,
the material that will be used to heat the food, costs PHP 100. The costs of materials
and tools that are will be needed in the wirings are the following: terminal connector
(PHP 10), power cord (PHP 18), electrical wires (PHP 12), asbestos insulator (20), and
aluminum spreader plate (20). The timer with alarm costs PHP 45. The LED indicator
costs PHP 5. A piece of screw costs PHP 1, and 4 pieces are needed so the total cost
for the screws is PHP 4. Consequentially, 4 pieces of rubber screw cover, which costs
PHP 4, will also be needed. One lunch box would cost a total of PHP 546 and it retails
for PHP 1,066.41.
5.5 Handling Design/Packaging
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The product will be secured in a plastic packaging. This lunch box's plastic
construction makes it easy to use and easy to wash, either by hand or in a dishwasher.
Food container box is ideal for dishwasher or hand wash too. The size of this plastic
lunch box measures 6.5x 5.31 x 2.17 inches in 3 compartments, contains up to 33
oz/4.2 cups of food. A handling bag with 2 compartments will serve as the primary
packaging.
Figure 5.4: Packaging
5.6 Project Layout
5.6.1 Location
Food Realm Inc. plans to rent a small space for production or warehouse
in Quezon City. It will be located in 14 Orange St., Odelco Subdivision, San
Bartolome, Novaliches, Quezon City. It is a studio type with a floor area of 60
square meters. It already has 1 toilet and 1 kitchen. The business will pay
separate electric, water, and internet bill. The terms and conditions include 2
months deposit 1 month advance payment, must issue post-dated checks, and a
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minimum of 2-year contract. 60 square meters will be enough for office and
manufacturing space since the only part that will need big space is the display or
the shop itself. A small-space office will be enough for the electrician to
manufacture the products.
Figure 5.5: Office Interior
Figure 5.6: Vicinity Map
5.6.2 Floor Plan/Intended Space
The intended space will be leased or rented. There is no renovation
required although office furniture and equipment are much needed to be bought.
The business owners chose a small spaced location because the business is in
its starting period. Half of the space will be the manufacturing space which
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includes the production area, the stock room, the management office, comfort
room and lounge/kitchen area. The other half will be the shop. Renting or buying
a bigger space is not needed and will just increase the expenses since a bigger
space requires a larger amount of money. Food Realm Inc. will allot 30,000 PHP
as first-time payment for the 2 months deposit and 1-month advance because the
monthly rent amounts to 10,000 PHP
CR
Production Area
Management
Office Office Shop
Lounge /
Kitchen
Stock Room
Figure 5.7: Floor Plan
5.7 Production Schedule
Table 5.2: Production Schedule
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February March
No. of produced goods
1st week 22 22
2nd week 22 22
3rd week 22 22
4th week 22 22
Upon consulting with an electrical engineer, the proponents calculated the
number of goods produced daily, weekly, monthly and yearly. The number of produced
goods daily yields to 4. The approximate number of monthly production is 88 since there
are only 22 working days per month. This means that the number of produced goods
each week should be 22.
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Consultation
Developing how the product will look like after it is done
February 11
Researching materials, tools and equipment needed for the product

Searching location for the production
Researching and comparing suppliers
February 12 Registering patent
Product trial and error period

Acquiring the intended location
Purchase of machines and tools
February 13-23 Negotiating with the suppliers
Production starts
February 24
Figure 5.8: Pre-Production Timeline
5.8 Equipment and Tools
The equipment that the supplier of the plastic housing needs in making the Heat
n’ Eat plastic compartment is a plastic molding machine. Plastic molding machine is
used to produce thin-walled plastic parts for a wide variety of applications. In this case,
it will be used to produce the plastic housing of the lunch box. It produces parts by
injecting molten material, in this case it is raw polypropylene plastic, into a mold.
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Figure 5.9: Plastic molding machine
The tools needed in making the Heat n’ Eat are soldering iron, soldering lead for
aluminum, pliers, and precision screwdrivers.
Figure 5.10: Tools
Soldering iron – a hand tool used in soldering. It supplies heat to melt solder so that it
can flow into the joint between two workpieces. It will be used to make the wirings of the
lunch box.
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Soldering lead – a fusible metal alloy used to create a permanent bond between metal
workpieces. It will also be used to make the wirings of the lunch box.
Pliers – a hand-operated tool used for gripping something round like a pipe or rod or
twisting wires. It will also be used to make the wirings of the lunch box.
Precision screwdrivers – come with several interchangeable heads that can be switched
in and out. The screwdrivers will be used to screw the plastic housing and the food
compartment together between the wirings.
5.9 Standard Operating Procedure
The protocols are critical for improving and protecting the company in any
manufacturing problems and failures possible. Governing corporate regulation exercises
direct and indirect control.
The regulatory limits tend to be broken down into economic regulation and other
regulatory forms. The aim of the standard operating procedure is to describe how to
perform a routine activity, that routines may accomplish or be done by the employees
for the consistency of the business. In that way, it can help the employees to
understand their job process, practices, and procedures. Also, by this standard
operating procedure, the employees can save time and money, provide the consistency
of the business, improve communication to their employees, and they create a safer
work environment. For our company these are the standard operation procedures that
employees must complete:
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 Proper Etiquette – It covers how the employees handle each other and how
the work environment is structured.
 Proper Attire – It is one of the first things to be found during a meeting or an
office visit. In our Food Realm Inc., every employee must wear their informal
attire. Also, in the proper attire, they have their gloves and mask for some
safety precautions in manufacturing our product.
 Proper Training – It is important for our employees to have a training in a
reason that our employees will improve and develop their skills when it comes
to communicate with their co-employees but also to our beloved consumers.
5.10 Waste and Waste Disposal Methods
Table 5.3: Waste Disposal
Days
Monday Manufacturing the Product
Tuesday Collecting the biodegradable waste for
recycling and the non-biodegradable
waste that cannot be use or recycle
again.
Wednesday To convert and to reuse the
biodegradable waste
Thursday Manufacturing the Product

Friday Discharging of the waste to the garbage
truck
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Waste disposal has substantial impacts on the environment, which may cause
severe problems. The waste generated in business is the needless materials that are
used to create in the product. Chemical waste that ends up in landfills can affect the
health of the people living near to the polluted area, as excrete hazardous chemicals
can leak into the soil. The ozone layer is also damaged by wastes burned in landfills
that emit gas and chemicals. Whenever the waste management is inadequate, the
toxins that migrate into the soil often harm animals that eat grasses. It also affects the
local economy, as a city with weak waste management would definitely not draw visitors
and investors For, the project proponents waste disposal method they will conduct a
proper segmentation of garbage. This proper segmentation that will be conduct by the
project proponents by placing trash bins inside the workplace and in the store and each
trash bins will be labeled by biodegradable and non-biodegradable. By conducting the
proper segmentation of the biodegradable waste, the project proponents can recycle or
reuse it and it helps to protect the environment.
5.11 Intellectual Property
5.11.1 Trademark Process
Trademark will be used to identify and differentiate Food Realm Inc. from
others that also produce similar goods. In simple words, having a trademark is a
leverage that influences the people’s view in purchasing the product. Here are
the steps that the company needs to take to register the trademark:
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1. Application for Registration of Trademark (cost: PHP 1,200.00; since the
company is a small entity)
2. Formality Examination
3. Substantive Examination
4. Publication for Opposition (for 30 days, cost: PHP 900.00; since the company
is a small entity)
5. Issuance of Certification of Registration (cost: PHP 570.00; since the company
is a small entity)
6. Publication of Registered Trademark (cost: PHP 900.00; since the company is
a small entity)
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5.12 Start-up Schedule
5.12.1 Gantt Chart Schedule on Product Development Cycle
Table 5.4: Gantt Chart Schedule on Product Development Cycle
PARTICULARS SEPT. OCT. NOV. DEC. JAN. DURATION

Research and 5 DAYS
consultation
regarding the
raw materials
Purchasing the 7 DAYS
raw materials
Assemble the 30 DAYS
product
Product Testing 12 DAYS
Designing the
product, product 5 DAYS
logo and
packaging
Advertising of 30 DAYS
the product
In September 2019, 5 days were spent for the research and consultation
regarding the raw materials. It took 7 days to purchase all the raw materials. It
took 30 days to assemble the product. The product testing was done for 12 days.
Designing the product, product logo and packaging took 5 days. 30 days were
spent to advertise the product.
100
5.12.2 Phases of production completion
Business must be real and relevant. In business, there are 6 phases
including brainstorming, research, planning, and prototyping, sourcing, and
costing. Building a business is hard that businessman often stuck in planning,
they must attract the consumers and pursue them to buy the product. However, if
they plan it very well, they can proceed and have a successful start-up. These
are the phasing of product:
Purchasing the raw materials. The business will purchase the raw materials including
Step1: the cord, lunch box, timer, heater element, lunch bag, and box for the packaging.
Set-up the materials. The business will then set up the materials such as, cord lunch
Step 2: box, timer, and heater element to assemble it.
Assemble the product. The business will assemble the cord, lunch box, timer and
Step 3: heater element and then put it in the box.
Product Testing. The business must test the product since it is electric.
Step 4:
Designing the product. The product must be clean and organized, product logo,
Step 5: product designing, and product packaging.
Displaying the product. The product will be displayed in the store to be purchased by
Step 6: the consumers
Figure 5.11: Phases of Product Completion
101
5.12.3 Relationship of Events
Table 5.5: Relationship of Events
July 2020 – Food Realm Corporation proposed three products as

their set of choices for the product or business they are
aiming to generate.
August 2020 – Once the electric lunch box was approved, the
proponents started to construct their business plan by
completing the marketing aspect and identifying who are
the target markets.
September 2020 – The proponents purchased the raw materials that will
be needed to create the proposed product.
October 2020 – During this month, the proponents will be starting by
installation and the set-up of the product.
November 2020 – The proponents will be starting to assemble and to fix
the product.
December 2020 – This is the month when the proponents will test if the
product really works; if the product has a timer and then
food is really served warm. The product testing will run in
almost 2 weeks to check the durability and the logo of the
product to recognize the business. The packaging will
include the lunch bag and the box for proper distribution
of the product to the consumer.
January 2020 – Allotted time for advertising and promoting the product
and the business. The electric lunch box will be
distributed to the physical store.
102
Chapter 6
FINANCIAL FEASIBILITY STUDY
The financial feasibility study aims to show all of the possible information related
to the finances of Heat n’ Eat. It includes and discusses matters like how much the
selling price of the product would be, the quantity of the products available and sold, the
expenses that the business will acquire, and most importantly, the profit or loss of the
Food Realm Inc. which determines if the business is feasible or not.
6.1 Financial Feasibility Objectives
1. To determine how much is the selling price of the product and what factors
contribute to the selling price.
2. To project the quantity of goods that will be produced and sold.
3. To plan when to offer discounts and sales.
4. To show the taxes and licenses that the business needs to operate legally.
5. To show the expenses that the business will acquire.
6. To identify the profitability of the business which is very significant in
feasibility.
103
6.2 Financial Assumptions
The financial assumptions of Food Realm Inc. are presented below.
Major Assumptions:
 Capital investment is PHP 200,000 broken down into the ff.
PHP 200,000 invested equally by 10 partners.
 Income is distributable equally.
 Tax rate is 30% same with current Philippine corporate tax rate.
 Utilities expense increases 5% annually.
 Selling price of the product is computed using cost plus method. 30% is added to
the cost to compute SRP.
 The selling price remains the same throughout the 5-year projection.
 (PPE) Property, Plant and Equipment's useful lives is 5 years.
 Office supplies expense increases 5% annually.
 Taxes and Licenses renewing process: 3% quarterly percentage tax, 0.5%
annual local business tax
 Advertising Expense, PHP 58,400 in 2021.
104
6.3 Total Project Cost
6.3.1 Pre-Operating Expense
Table 6.1: Pre-Operating Expense
Time to
No. Procedure Associated Costs
Complete
1 Verify and reserve the company name with the Securities and Exchange Commission (SEC) 1 day PHP 40
Deposit paid-up capital in the Authorized Agent Bank (AAB) and obtain bank certificate of
2 1 day No cost
deposit
3 Notarize articles of incorporation and treasurer's affi davit at the notary 1 day PHP 500
PHP 2,665 (PHP 1,667.99 filing fee equivalent to 1/5 of 1% of the authorized capital stock or the
subscription price of the subscribed capital stock, whichever is higher but not less than PHP 1,000 +
Register the company with the SEC and receive pre-registered Taxpayer Indentification
4 3 days PHP 16.68 legal research fee (LRF) equivalent to 1% of filing fee but not less than PHP 10 + PHP 500
Number (TIN)
By-laws + PHP 150 for registration of stock and transfer book (STB) required for new corporations +
PHP 320 STB + PHP 10 registration for SEC bulletin)
5 Obtain Baranggay clearance 1 day PHP 500 (between PHP 0 - PHP 600)
After issuance of the SEC certificate of incoporation, pay the annual community tax and
6 1 day PHP 500
obtain the community tax certificate (CTC) from the City Treasurer's Offi ce (CTO)
Obtain the business permit application form from the Business Permits and Licesing Offi ce
7 1 day No cost
(BPLO)
PHP 4,939 (PHP 2,084.98 business tax (25% of 1% of paid-up capital) + PHP 200 mayor’s permit + PHP
8 Obtain the business permit to operate from the BPLO 6 days 150 sanitary inspection fee + PHP 50 signboard fee + PHP 250 business plate + PHP 100 QCBRB + PHP
545 zoning clearance + PHP 1,300 garbage fee+ PHP 259.5 FSIC (10% of all regulatory fees))
9 Buy special books of account at bookstore 1 day PHP 400
10 Apply for Certificate of Registration (COR) and TIN at the bureau of Internal Revenue (BIR) 2 days PHP 115 (PHP 1,000 certification fee + PHP 15 documentary stamp tax)
11 Pay the registration fee and documenatary stamp taxes (DST) at the AAB 1 day 3 days
12 Obtain the authority to print receipts and invoices from the BIR 1 day No cost
13 Print receipts and invoices at the print shops 7 days PHP 3500
14 Have books of accounts and Printer's Certificate of Delivery (PCD) stamped by the BIR 1 day No cost
15 Register with the Social Security System (SSS) 7 days No cost
16 Register with the Philippine Health Insurance Company (PhilHealth) 1 day No cost
TOTAL 17,829.00
approx 20,000
The table displays the taxes and licenses that the business needs to obtain
during the pre-operating period. It also shows which taxes and licenses should the
business attain first. The procedures and associated costs are also shown in the table.
The total expense that the business will acquire is PHP 17,829.00.
105
6.3.2 Supplies
DIRECT MATERIAL COST PER UNIT

ITEM PRICE QUANTITY UNIT COST
Polypropylene Plastic Housing 80.00 1 80.00
Power Cord 18.00 1 18.00
Timer 45.00 1 45.00
Small LED Light 5.00 1 5.00
Rubber Screw Cover 1.00 4 4.00
-
-
-
DIRECT MATERIAL COST PER UNIT 152.00
LABOR COST PER UNIT

WORKERS DAILY RATE NO. OF WORKING DAYS LABOR COST
Electrician 520.00 22 11,440.00
-
-
-
-
-
-
-
Total: 11,440.00
Div. by: Approx No. of Monthly Production 88
DIRECT LABOR COST PER UNIT 130.00
The table indicates and breaks down the factors that contribute to the
direct material cost per unit and labor cost per unit. The direct material cost per
unit yields to PHP 152. The costs of the direct materials are added to get the
direct material cost per unit. The direct labor cost per unit is PHP 130 acquired by
dividing the total monthly labor cost (PHP 11,440.00) by the approximate number
of monthly production (88).
106
MANUFACTURING OVERHEAD
A) INDIRECT MATERIAL
ITEM PRICE QPS UNIT COST
Metals: PTC Heating Element, Aluminum Spreader Plate, Asbestos Insulator and Terminal Connector 150 1 150
Screwdrivers and Screw 36 1 36
Electrical Wires 12 1 12
Soldering Iron and Soldering Lead 126 1 126
Pliers 70 1 70
INDIRECT MATERIAL COST PER UNIT 394
B) INDIRECT LABOR
WORKERS DAILY RATE NO. OF WORKING DAYS LABOR COST
Janitor 500.00 22 11,000.00
-
-
-
-
-
Total: 11,000.00
INDIRECT LABOR COST PER UNIT 125.00
C) OVERHEAD
Electric Bill 500.00
Water Bill 200.00
Communication 1,000.00
Total: 1,700.00
OVERHEAD COST PER UNIT 19.31818182
MANUFACTURING OVERHEAD COST PER UNIT:

538.32
(Indirect Material + Indirect Labor + Overhead)
The table shows how the manufacturing overhead cost per unit is
computed. The manufacturing overhead cost per unit (PHP 538.32) is computed
by adding the indirect material (PHP 394), indirect labor (PHP 125), and the
overhead costs per unit (PHP 19.32) together. The indirect material cost per unit
is calculated by adding all the costs of indirect materials. Dividing the total
monthly indirect labor cost (PHP 11,000) by the approximate number of monthly
production (88) would get the indirect labor cost per unit. The overhead cost per
unit is the total overhead cost (PHP 1,700) divided by the approximate number of
monthly production (88).
107
MANUFACTURING COST PER UNIT
Direct Material 152.00
Direct Labor 130.00
Manufacturing Overhead 538.32
MANUFACTURING COST PER UNIT 820.32
SELLING PRICE
Manufacturing Cost per Unit 820.32
Mark up : 30% 246.0954545
SELLING PRICE 1,066.41
The table shows how the selling price and manufacturing cost per unit is
calculated. The manufacturing cost per unit (PHP 820.32) is computed by
adding direct material (PHP 152), direct labor (PHP 130), and manufacturing
overhead (PHP 538.32) costs. The selling price (PHP 1,066.41) is calculated by
adding the manufacturing cost per unit (PHP 820.32) and the mark up (PHP
246.10). The mark up is acquired by multiplying the manufacturing cost per unit
(PHP 820.32) to the mark up rate (30%).
108
6.3.3 Fixed Assets
Variable Cost
2021 2022 2023 2024 2025
Direct Material 151,392.00 164,616.00 312,360.00 327,560.00 326,952.00

Direct Labor 129,480.00 140,790.00 267,150.00 280,150.00 279,630.00
Overhead Cost 536,164.91 582,998.59 1,106,243.86 1,160,075.68 1,157,922.41
TOTAL 817,036.91 888,404.59 1,685,753.86 1,767,785.68 1,764,504.41
- - - - -
Fixed Cost
2021 2022 2023 2024 2025
Salaries Expense 132,000.00 132,000.00 132,000.00 132,000.00 132,000.00
13th Month Pay 22,440.00 22,440.00 22,440.00 22,440.00 22,440.00
SSS Expense 13,980.00 13,980.00 13,980.00 13,980.00 13,980.00
HDMF Expense 10,771.20 10,771.20 10,771.20 10,771.20 10,771.20
PhilHealth Expense 33,805.20 33,805.20 33,805.20 33,805.20 33,805.20
Rent Expense 20,400.00 21,420.00 22,491.00 23,615.55 35,495.46
Utilities Expense 56,633.97 11,674.44 33,370.78 32,371.40 42,106.60
Taxes and Licenses 58,400.00 58,400.00 58,400.00 68,400.00 68,400.00
Delivery Expense 2,000.00 2,100.00 2,205.00 2,315.25 2,431.01
Advertising Expense 120,000.00 120,000.00 120,000.00 132,000.00 132,000.00
Offi ce Supplies Expense 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
Depreciation Expense - - - - -
TOTAL 473,730.37 429,890.84 452,763.18 474,998.60 496,729.47
- 24,683.09 61,704.32 57,661.40 77,266.26
109
6.3.4 Inventories
Heat n' Eat

Finished Goods (In Units)
For the year ended December 2025
Year ACCOUNTS January February March April May June July August September October November December TOTAL
Beginning Inventory - 13 17 32 26 18 7 29 47 60 72 72 -
2021
Goods Produced 88 88 88 88 88 88 88 88 88 88 88 88 1,056
Goods Available 88 101 105 120 114 106 95 117 135 148 160 160 1,056
Goods Sold 75 84 73 94 96 99 66 70 75 76 88 100 996
Ending Inventory 13 17 32 26 18 7 29 47 60 72 72 60 60
Beginning Inventory 60 60 68 71 63 36 28 48 64 75 80 85 60
2022
Goods Produced 88 88 88 88 88 88 88 88 88 88 88 88 1,056
Goods Available 148 148 156 159 151 124 116 136 152 163 168 173 1,116
Goods Sold 88 80 85 96 115 96 68 72 77 83 83 140 1,083
2023
Goods Produced 176 176 176 176 176 176 176 176 176 176 176 176 2,112
Goods Available 209 215 223 242 242 238 224 250 275 291 302 310 2,145
Goods Sold 170 168 157 176 180 190 150 151 160 165 168 220 2,055
2024
Goods Produced 176 176 176 176 176 176 176 176 176 176 176 176 2,112
Goods Available 266 262 267 283 269 245 251 268 291 298 300 297 2,202
Goods Sold 180 171 160 190 200 170 159 153 169 174 179 250 2,155
2025
Goods Produced 176 176 176 176 176 176 176 176 176 176 176 176 2,112
Goods Available 223 224 214 225 211 197 183 204 226 231 231 228 2,159
Goods Sold 175 186 165 190 190 190 155 154 171 176 179 220 2,151
110
SALES SCHEDULE
January February March April May June July August September October November December YEARLY TOTAL
Gross Sales 79,981.02 89,578.75 77,848.20 100,242.88 102,375.71 105,574.95 70,383.30 74,648.95 79,981.02 81,047.44 93,844.40 106,641.36 1,062,147.98
2021 Sales Discount 10% 0% 0% 0% 0% 0% 0% 10% 0% 0% 0% 0%
Net Sales 71,982.92 89,578.75 77,848.20 100,242.88 102,375.71 105,574.95 70,383.30 67,184.06 79,981.02 81,047.44 93,844.40 106,641.36 1,046,684.98
Gross Sales 93,844.40 85,313.09 90,645.16 102,375.71 122,637.57 102,375.71 72,516.13 76,781.78 82,113.85 88,512.33 88,512.33 149,297.91 1,154,925.97
2022 Sales Discount 0% 0% 0% 0% 0% 0% 10% 0% 0% 0% 0% 0%
Net Sales 93,844.40 85,313.09 90,645.16 102,375.71 122,637.57 102,375.71 65,264.51 76,781.78 82,113.85 88,512.33 88,512.33 149,297.91 1,147,674.36
Gross Sales 181,290.32 179,157.49 167,426.94 187,688.80 191,954.45 202,618.59 159,962.05 161,028.46 170,626.18 175,958.25 179,157.49 234,611.00 2,191,480.02
2023 Sales Discount 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Net Sales 181,290.32 179,157.49 167,426.94 187,688.80 191,954.45 202,618.59 159,962.05 161,028.46 170,626.18 175,958.25 179,157.49 234,611.00 2,191,480.02
Gross Sales 191,954.45 182,356.73 170,626.18 202,618.59 213,282.73 181,290.32 169,559.77 163,161.29 180,223.90 185,555.97 190,888.04 266,603.41 2,298,121.39
2024 Sales Discount 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Net Sales 191,954.45 182,356.73 170,626.18 202,618.59 213,282.73 181,290.32 169,559.77 163,161.29 180,223.90 185,555.97 190,888.04 266,603.41 2,298,121.39
Gross Sales 186,622.39 198,352.94 175,958.25 202,618.59 202,618.59 202,618.59 165,294.11 164,227.70 182,356.73 187,688.80 190,888.04 234,611.00 2,293,855.73
2025 Sales Discount 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Net Sales 186,622.39 198,352.94 175,958.25 202,618.59 202,618.59 202,618.59 165,294.11 164,227.70 182,356.73 187,688.80 190,888.04 234,611.00 2,293,855.73
111
6.3.4.1 Raw Materials Needed
Table 6.2: Raw Materials Needed
Materials Cost
Polypropylene Plastic Housing 80.00
Power Cord 18.00
Timer 45.00
Small LED Light 5.00
Rubber Screw Cover 4.00
PTC Heating Element 100.00
Aluminum Spreader Plate 20.00
Asbestos Insulator 20.00
Terminal Connector 10.00
Screwdrivers 32.00
Screw 4.00
Electrical Wires 12.00
Soldering Iron 84.00
Soldering Lead 42.00
Pliers 70.00
TOTAL 546.00
112
6.3.5 Capital Contribution
113
Heat n' Eat
Statement of Changes in Partners' Equity
For the 5 years ended December 31, 2025
2021 2022 2023 2024 2025

Beginning Capital
Bonus, Capital 33,333.33 (7,347.05) (31,670.05) (18,292.20) (5,109.04)
Cruz, Capital 33,333.33 (7,347.05) (31,670.05) (18,292.20) (5,109.04)
Dimaapi, Capital 33,333.33 (7,347.05) (31,670.05) (18,292.20) (5,109.04)
Pecadizo, Capital 33,333.33 (7,347.05) (31,670.05) (18,292.20) (5,109.04)
Simbillo, Capital 33,333.33 (7,347.05) (31,670.05) (18,292.20) (5,109.04)
Villanueva, Capital 33,333.33 (7,347.05) (31,670.05) (18,292.20) (5,109.04)
TOTAL 200,000.00 (44,082.30) (190,020.29) (109,753.18) (30,654.22)
Add: Net Income (Loss)

Bonus, Capital (40,680.38) (24,323.00) 13,377.85 13,183.16 12,820.28
Cruz, Capital (40,680.38) (24,323.00) 13,377.85 13,183.16 12,820.28
Dimaapi, Capital (40,680.38) (24,323.00) 13,377.85 13,183.16 12,820.28
Pecadizo, Capital (40,680.38) (24,323.00) 13,377.85 13,183.16 12,820.28
Simbillo, Capital (40,680.38) (24,323.00) 13,377.85 13,183.16 12,820.28
Villanueva, Capital (40,680.38) (24,323.00) 13,377.85 13,183.16 12,820.28
TOTAL (244,082.30) (145,937.99) 80,267.11 79,098.95 76,921.68
Ending Capital
Bonus, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Cruz, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Dimaapi, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Simbillo, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Pecadizo, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Villanueva, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
- - - - -
TOTAL (44,082.30) (190,020.29) (109,753.18) (30,654.22) 46,267.45
Number of Partners: 6.00
6.4 Projected Financial Statement
114
115
2,431.01
3,300.00
529,351.32
132,000.00
22,440.00
13,980.00
10,771.20
33,805.20
35,495.46
42,106.60
68,400.00
132,000.00
419,463.21
109,888.11
32,966.43
76,921.68
-
2025
530,335.70
132,000.00
2,315.25
132,000.00
3,300.00
417,337.20
112,998.50
22,440.00
13,980.00
10,771.20
33,805.20
23,615.55
32,371.40
68,400.00
33,899.55
79,098.95
-
2024
Heat n' Eat

Finished Goods (At Cost)
505,726.16
132,000.00
2,205.00
120,000.00
3,300.00
391,058.86
114,667.30
22,440.00
13,980.00
10,771.20
33,805.20
22,491.00
33,370.78
58,400.00
34,400.19
80,267.11
Manufacturing Cost per unit 647 647 647 647 647 647 647 647 647 647 647 647 647
For the 5 years ended December 31, 2025
2021
-
Finished Goods, Beginning - 98,325 248,400 404,944 555,019 653,344 654,638 752,963 851,288 949,613 1,047,938 1,146,263 -
Statement of Comprehensive Income
Goods Produced 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 2,732,400
2023
Cost of Goods Sold 129,375 77,625 71,156 77,625 129,375 226,406 129,375 129,375 129,375 129,375 129,375 258,750 1,617,188
Finished Goods, Ending 98,325 248,400 404,944 555,019 653,344 654,638 752,963 851,288 949,613 1,047,938 1,146,263 1,115,213 1,115,213
6.4.1 Statement of Comprehensive Income
2022
Finished Goods, Beginning 1,115,213 1,116,506 1,124,269 1,125,563 1,159,200 1,186,369 1,187,663 1,221,300 1,248,469 1,269,169 1,283,400 1,291,163 1,115,213
Goods Produced 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 2,732,400
Heat n' Eat
(145,937.99)
(145,937.99)
259,269.76
132,000.00
2,100.00
120,000.00
3,300.00
405,207.75
22,440.00
13,980.00
10,771.20
33,805.20
21,420.00
11,674.44
58,400.00
Finished Goods, Ending 1,116,506 1,124,269 1,125,563 1,159,200 1,186,369 1,187,663 1,221,300 1,248,469 1,269,169 1,283,400 1,291,163 1,292,456 1,292,456
6.4.2 Statement of Financial Position

-
-
2023
2022
Goods Produced 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 227,700 2,732,400
2024
Goods Produced 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 5,464,800
(244,082.30)
(244,082.30)
229,648.08
132,000.00
22,440.00
13,980.00
10,771.20
33,805.20
20,400.00
56,633.97
58,400.00
2,000.00
120,000.00
3,300.00
473,730.37
-
2021
2025
Goods Produced 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 455,400 5,464,800
TOTAL OPERATING EXPENSES

Offi ce Supplies Expense
Depreciation Expense
Operating Expenses:
Advertising Expense
NET INCOME (LOSS)

PhilHealth Expense
Taxes and Licenses
Income Before Tax

Delivery Expenses
Income Tax (30%)

Utilities Expense
Salaries Expense
13th Month Pay
HDMF Expense
GROSS PROFIT
Rent Expense
SSS Expense
MANUFACTURING COST PER UNIT
Direct Material 181.00
Direct Labor 31.25
Manufacturing Overhead 434.63
MANUFACTURING COST PER UNIT 646.88
SELLING PRICE
Manufacturing Cost per Unit 646.88
Mark up : 30% 194.0625
SELLING PRICE 840.94
Heat n' Eat
Statement of Financial Position
As of the 5 years ending December 31, 2025
ACCOUNT 2021 2022 2023 2024 2025
ASSETS
Current Assets
Cash (101,621.69) (222,111.09) (150,901.92) (33,729.93) 77,551.04
Finished Goods (ending) 49,219.09 27,070.50 73,828.64 38,554.95 6,562.55
Total Current Assets: (52,402.60) (195,040.59) (77,073.29) 4,825.03 84,113.58
Noncurrent Assets
Furniture and Fixture 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Accum. Dep'n - Furniture and Fixture (400.00) (800.00) (1,200.00) (1,600.00) (2,000.00)
Offi ce Equipment 14,500.00 14,500.00 14,500.00 14,500.00 14,500.00
Accum. Dep'n - Offi ce Equipment (2,900.00) (5,800.00) (8,700.00) (11,600.00) (14,500.00)
Production Equipment - - - - -
Accum. Dep'n - Production Equipment - - - - -
Total Noncurrent Assets 13,200.00 9,900.00 6,600.00 3,300.00 -
TOTAL ASSETS: (39,202.60) (185,140.59) (70,473.29) 8,125.03 84,113.58
LIABILITIES AND PARTNERS' EQUITY

Liablities
SSS Payable 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00
HDMF Payable 897.60 897.60 897.60 897.60 897.60
PhilHealth Payable 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10
Income Tax Payable - - 34,400.19 33,899.55 32,966.43
Total Liabilities 4,879.70 4,879.70 39,279.89 38,779.25 37,846.13
Partners' Equity
Bonus, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Cruz, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Dimaapi, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Pecadizo, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Simbillo, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Villanueva, Capital (7,347.05) (31,670.05) (18,292.20) (5,109.04) 7,711.24
Total Capital (44,082.30) (190,020.29) (109,753.18) (30,654.22) 46,267.45
TOTAL LIABILITIES AND PARTNERS' EQUITY: (39,202.60) (185,140.59) (70,473.29) 8,125.03 84,113.58
- - - 0.00 -
116
6.4.3 Cash Flow Statement
Heat n' Eat

Statement of Cash Flow
As of the 5 years ending December 31, 2025
ACCOUNTS 2021 2022 2023 2024 2025
OPERATING ACTIVITIES:
Net Income (244,082.30) (145,937.99) 80,267.11 79,098.95 76,921.68
Depreciation 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
(240,782.30) (142,637.99) 83,567.11 82,398.95 80,221.68
(Increase) decrease in Finished Goods (49,219.09) 22,148.59 (46,758.14) 35,273.68 31,992.41

Increase (decrease) in SSS Payable 1,165.00 - - - -
Increase (decrease) in HDMF Payable 897.60 - - - -
Increase (decrease) in PhilHealth Payable 2,817.10 - - - -
Increase (decrease) in Income Tax Payable - - 34,400.19 (500.64) (933.12)
Net Cash Flow from Operating Activities (285,121.69) 22,148.59 (12,357.95) 34,773.04 31,059.29
INVESTING ACTIVITIES:
Furniture and Fixture (2,000.00) - - - -
Offi ce Equipment (14,500.00) - - - -
Production Equipment - - - - -
Net Cash Flow from Investing Activities (16,500.00) - - - -
FINANCING ACTIVITIES:
Capital Investment 200,000.00
Receipt/(Payment) of Loans
Net Cash Flow from Financing Activities 200,000.00 - - - -
Net Cash Flow (101,621.69) (120,489.40) 71,209.17 117,171.99 111,280.97

Add: Cash Balance, Beginning - (101,621.69) (222,111.09) (150,901.92) (33,729.93)
Cash Balance, Ending (101,621.69) (222,111.09) (150,901.92) (33,729.93) 77,551.04
117
6.4.4 Monthly Cost of Goods Manufactured
Heat n' Eat

Finished Goods (At Cost)
2021
Finished Goods, Beginning - 10,664 13,945 26,250 21,328 14,766 5,742 23,789 38,555 49,219 59,063 59,063 -
Goods Produced 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 866,256
Cost of Goods Sold 61,524 68,907 59,883 77,110 78,751 81,212 54,141 57,422 61,524 62,344 72,188 82,032 817,037
Finished Goods, Ending 10,664 13,945 26,250 21,328 14,766 5,742 23,789 38,555 49,219 59,063 59,063 49,219 49,219
2022
Finished Goods, Beginning 49,219 49,219 55,782 58,243 51,680 29,531 22,969 39,375 52,500 61,524 65,625 69,727 49,219
Goods Produced 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 72,188 866,256
Cost of Goods Sold 72,188 65,625 69,727 78,751 94,337 78,751 55,782 59,063 63,165 68,086 68,086 114,845 888,405
2023
Goods Produced 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 1,732,512
2024
Goods Produced 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 1,732,512
2025
Goods Produced 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 144,376 1,732,512
6.4.5 Monthly Expense Summary
Heat n' Eat

For the year ended December 31, 2021
January February March April May June July August September October November December TOTAL
Net Sales 71,982.92 89,578.75 77,848.20 100,242.88 102,375.71 105,574.95 70,383.30 67,184.06 79,981.02 81,047.44 93,844.40 106,641.36 1,046,684.98
Cost of Good Sold 61,523.86 68,906.73 59,883.23 77,109.91 78,750.55 81,211.50 54,141.00 57,422.27 61,523.86 62,344.18 72,188.00 82,031.82 817,036.91
GROSS PROFIT 10,459.06 20,672.02 17,964.97 23,132.97 23,625.16 24,363.45 16,242.30 9,761.79 18,457.16 18,703.25 21,656.40 24,609.55 229,648.08
Operating Expenses:
Salaries & Wages 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 132,000.00
13th Month Pay 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 22,440.00
SSS Expense 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 13,980.00
HDMF Expense 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 10,771.20
PhilHealth Expense 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 2,817.10 33,805.20
Utilities Expense 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 1,700.00 20,400.00
Taxes and Licenses 25,233.42 7,182.30 9,245.81 6,526.45 8,446.00 56,633.97
Advertising Expense 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 4,866.67 58,400.00
Offi ce Supplies Expense 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.00
Rent Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 120,000.00
Depreciation Expense 275.00 275.00 275.00 275.00 275.00 275.00 275.00 275.00 275.00 275.00 275.00 275.00 3,300.00
Delivery Expenses -
TOTAL OPERATING EXPENSES 59,991.46 34,758.03 41,940.33 34,758.03 34,758.03 44,003.84 34,758.03 34,758.03 41,284.48 34,758.03 34,758.03 43,204.03 473,730.37
Income Before Tax (49,532.40) (14,086.02) (23,975.36) (11,625.06) (11,132.87) (19,640.39) (18,515.73) (24,996.25) (22,827.33) (16,054.78) (13,101.63) (18,594.48) (244,082.30)
Income Tax (30%) - - - - - - - - - - - - -
NET INCOME (LOSS) (49,532.40) (14,086.02) (23,975.36) (11,625.06) (11,132.87) (19,640.39) (18,515.73) (24,996.25) (22,827.33) (16,054.78) (13,101.63) (18,594.48) (244,082.30)
118
Heat n' Eat
Net Sales 93,844.40 85,313.09 90,645.16 102,375.71 122,637.57 102,375.71 65,264.51 76,781.78 82,113.85 88,512.33 88,512.33 149,297.91 1,147,674.36
Cost of Goods Sold 72,188.00 65,625.45 69,727.05 78,750.55 94,336.59 78,750.55 55,781.64 59,062.91 63,164.50 68,086.41 68,086.41 114,844.55 888,404.59
GROSS PROFIT 21,656.40 19,687.64 20,918.11 23,625.16 28,300.98 23,625.16 9,482.88 17,718.87 18,949.35 20,425.92 20,425.92 34,453.36 259,269.76
Operating Expenses:
Salaries Expense 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 132,000.00
13th Month Pay 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 22,440.00
SSS Expense 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 13,980.00
HDMF Expense 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 10,771.20
Taxes and Licenses 5,233.42 8,094.08 (9,821.67) (6,724.80) (9,789.68) (13,008.65)
Rent Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 120,000.00
Delivery Expenses -
Income Before Tax (18,428.39) (15,163.73) (22,027.33) (11,226.20) (6,550.39) (1,404.53) (25,368.49) (17,132.49) (9,177.21) (14,425.44) (14,425.44) 9,391.67 (145,937.99)
Income Tax (30%) - - - - - - - - - - - 2,817.50 -
NET INCOME (LOSS) (18,428.39) (15,163.73) (22,027.33) (11,226.20) (6,550.39) (1,404.53) (25,368.49) (17,132.49) (9,177.21) (14,425.44) (14,425.44) 6,574.17 (145,937.99)
Heat n' Eat

Net Sales 181,290.32 179,157.49 167,426.94 187,688.80 191,954.45 202,618.59 159,962.05 161,028.46 170,626.18 175,958.25 179,157.49 234,611.00 2,191,480.02
Cost of Goods Sold 139,454.09 137,813.45 128,789.95 144,376.00 147,657.27 155,860.45 123,047.73 123,868.05 131,250.91 135,352.50 137,813.45 180,470.00 1,685,753.86
GROSS PROFIT 41,836.23 41,344.04 38,636.99 43,312.80 44,297.18 46,758.14 36,914.32 37,160.41 39,375.27 40,605.75 41,344.04 54,141.00 505,726.16
Operating Expenses:
13th Month Pay 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 22,440.00
SSS Expense 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 13,980.00
HDMF Expense 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 10,771.20
Rent Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 120,000.00
Delivery Expenses -
Income Before Tax 1,148.49 6,394.67 (12,148.62) 8,363.43 9,347.82 29,276.63 1,964.95 2,211.05 19,174.41 5,656.38 6,394.67 36,883.44 114,667.30
Income Tax (30%) 344.55 1,918.40 - 2,509.03 2,804.34 8,782.99 589.49 663.31 5,752.32 1,696.91 1,918.40 11,065.03 34,400.19
NET INCOME (LOSS) 803.94 4,476.27 (12,148.62) 5,854.40 6,543.47 20,493.64 1,375.47 1,547.73 13,422.08 3,959.47 4,476.27 25,818.40 80,267.11
119
Heat n' Eat
Net Sales 191,954.45 182,356.73 170,626.18 202,618.59 213,282.73 181,290.32 169,559.77 163,161.29 180,223.90 185,555.97 190,888.04 266,603.41 2,298,121.39
Gross Profit 44,297.18 42,082.32 39,375.27 46,758.14 49,219.09 41,836.23 39,129.18 37,652.60 41,590.13 42,820.61 44,051.09 61,523.86 530,335.70
Operating Expenses:
13th Month Pay 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 22,440.00
SSS Expense 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 13,980.00
HDMF Expense 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 10,771.20
Rent Expense 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 132,000.00
Delivery Expenses -
Income Before Tax (3,545.82) 5,196.72 (13,858.45) 9,872.54 12,333.49 22,866.38 2,243.58 767.00 20,092.88 5,935.01 7,165.49 43,929.69 112,998.50
Income Tax (30%) - 1,559.02 - 2,961.76 3,700.05 6,859.91 673.07 230.10 6,027.86 1,780.50 2,149.65 13,178.91 33,899.55
NET INCOME (LOSS) (3,545.82) 3,637.71 (13,858.45) 6,910.78 8,633.44 16,006.46 1,570.50 536.90 14,065.02 4,154.51 5,015.84 30,750.78 79,098.95
Heat n' Eat

Net Sales 186,622.39 198,352.94 175,958.25 202,618.59 202,618.59 202,618.59 165,294.11 164,227.70 182,356.73 187,688.80 190,888.04 234,611.00 2,293,855.73
Gross Profit 43,066.70 45,773.75 40,605.75 46,758.14 46,758.14 46,758.14 38,144.80 37,898.70 42,082.32 43,312.80 44,051.09 54,141.00 529,351.32
Operating Expenses:
13th Month Pay 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 1,870.00 22,440.00
SSS Expense 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 13,980.00
HDMF Expense 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 897.60 10,771.20
Taxes and Licenses 16,828.01 (18,235.67) (15,356.36) (18,395.64) (35,159.66)
Rent Expense 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00 132,000.00
Delivery Expenses -
Income Before Tax 5,181.47 7,888.52 (14,107.50) 8,872.90 8,872.90 27,108.57 259.56 13.46 19,553.44 5,427.56 6,165.85 34,651.40 109,888.11
Income Tax (30%) 1,554.44 2,366.55 - 2,661.87 2,661.87 8,132.57 77.87 4.04 5,866.03 1,628.27 1,849.75 10,395.42 32,966.43
NET INCOME (LOSS) 3,627.03 5,521.96 (14,107.50) 6,211.03 6,211.03 18,976.00 181.69 9.42 13,687.41 3,799.29 4,316.09 24,255.98 76,921.68
120
PROPERTY, PLANT, AND EQUIPMENT SCHEDULE
FURNITURE AND FIXTURE

ITEM SOURCE QUANTITY COST TOTAL
Table Best Buy Furniture 1 1,000.00 1,000.00
Chairs Raeas (online store) 2 500.00 1,000.00
-
-
-
-
TOTAL 2,000.00
OFFICE EQUIPMENT
Computer set PC Gilmore Computer Center 1 10000 10,000.00
Printer Shopee 1 4500 4,500.00
-
-
-
-
Total 14,500.00
PRODUCTION EQUIPMENT
-
-
-
-
-
-
Total -
6.4.6 Yearly Expense Summary
121
SALARIES EXPENSE SSS, HDMF AND PHILHEALTH EXPENSE
APPROX NO OF EMPLOYEE'S EMPLOYER'S
WORKERS DAILY RATE MONTHLY RATE
PROD. DAYS WORKERS TOTAL
SHARE SHARE
EMPLOYEES ENGAGED IN PRODUCTION
Electrician 520.00 22 11,440.00 SSS Contributions
0 - 22 - Electrician 783.50 381.50 1,165.00
0 - 22 - 0 -
0 - 22 - 0 -
0 - 22 -
0 -
Total Labor Cost 11,440.00
EMPLOYEES NOT ENGAGED IN PRODUCTION 0 -
Janitor 22 11,000.00 Janitor -
0 22 - 0 -
0 22 - 0 -
0 22 -
0 -
0 22 -
Total Salaries Expense 11,000.00 0 -
Sub-total 783.50 381.50 1,165.00
HDMF (Pag-ibig) Contributions
Electrician 228.80 228.80 457.60
0 - - -
0 - - -
0 - - -
0 - - -
Janitor 220.00 220.00 440.00
0 - - -
0 - - -
UTILITIES AND COMMUNICATION 0 - - -
0 - - -
EXPENSE AMOUNT Sub-total 448.80 448.80 897.60
Philhealth Contributions
Electric Bill 500.00 Electrician 157.30 157.30 314.60
0 137.50 137.50 275.00
Water Bill 200.00 0 137.50 137.50 275.00
Internet & phone 1,000.00 0 137.50 137.50 275.00
Total 1,700.00 0 137.50 137.50 275.00
Janitor 151.25 151.25 302.50
0 137.50 137.50 275.00
0 137.50 137.50 275.00
0 137.50 137.50 275.00
TAXES AND LICENSES 0 137.50 137.50 275.00
Sub-total 1,408.55 1,408.55 2,817.10
SALES RATE AMOUNT Total SSS, HDMF and
2,640.85 2,238.85 4,879.70
Percentage Tax Philhealth Expense
1st Quarter 239,409.86 3% 7,182.30
2nd Quarter 308,193.54 3% 9,245.81
3rd Quarter 217,548.38 3% 6,526.45
4th Quarter 281,533.20 3% 8,446.00
Local Business Tax 1,046,684.98 0.5% 5,233.42
TOTAL 36,633.97
122
DEPRECIATION EXPENSE
ACQUISITION ACCUM. CARRYING MONTHLY YEARLY
Year DEPRECIATION
COST DEP'N VALUE DEP'N DEP'N
FURNITURE AND FIXTURE
2021 2,000.00 400.00 400.00 1,600.00 33.33 400.00
2022 2,000.00 400.00 800.00 1,200.00 33.33 400.00
2023 2,000.00 400.00 1,200.00 800.00 33.33 400.00
2024 2,000.00 400.00 1,600.00 400.00 33.33 400.00
2025 2,000.00 400.00 2,000.00 - 33.33 400.00
OFFICE EQUIPMENT
2021 14,500.00 2,900.00 2,900.00 11,600.00 241.67 2,900.00
2022 14,500.00 2,900.00 5,800.00 8,700.00 241.67 2,900.00
2023 14,500.00 2,900.00 8,700.00 5,800.00 241.67 2,900.00
2024 14,500.00 2,900.00 11,600.00 2,900.00 241.67 2,900.00
2025 14,500.00 2,900.00 14,500.00 - 241.67 2,900.00
PRODUCTION EQUIPMENT
2021 - - - - - -
2022 - - - - - -
2023 - - - - - -
2024 - - - - - -
2025 - - - - - -
TOTAL MONTHLY DEPRECIATION 275.00
TOTAL ANNUAL DEPRECIATION 3,300.00
123
23%
23%
2,293,855.73
1,764,504.41
529,351.32
2,293,855.73
496,729.47
2,152,494.38
246.10
2,018
2025
124
2025
2,431.01
3,300.00
132,000.00
22,440.00
13,980.00
10,771.20
33,805.20
35,495.46
42,106.60
68,400.00
132,000.00
419,463.21
-
23%
23%
2,298,121.39
1,767,785.68
530,335.70
2,298,121.39
474,998.60
2,058,327.27
246.10
1,930
2024
2024
132,000.00
2,315.25
132,000.00
3,300.00
417,337.20
22,440.00
13,980.00
10,771.20
33,805.20
23,615.55
32,371.40
68,400.00
23%
23%
2,191,480.02
1,685,753.86
505,726.16
2,191,480.02
452,763.18
1,961,973.78
246.10
1,840
Heat n' Eat
2023
Statement of Compehensive Income
2023
132,000.00
2,205.00
120,000.00
3,300.00
391,058.86
22,440.00
13,980.00
10,771.20
33,805.20
22,491.00
33,370.78
58,400.00
-
Net Sales 500,357.81 588,656.25 500,357.81 588,656.25 588,656.25 630,703.13 588,656.25 588,656.25 529,790.63 529,790.63 588,656.25 588,656.25 6,811,593.75
23%
23%
1,747
1,147,674.36
888,404.59
259,269.76
1,147,674.36
429,890.84
1,902,939.56
246.10
Breakeven Analysis
Gross Profit 47,545.31 135,843.75 47,545.31 135,843.75 135,843.75 145,546.88 135,843.75 135,843.75 76,978.13 76,978.13 135,843.75 135,843.75 1,345,500.00
2022
Operating Expenses:
13th Month Pay 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 1,925.00 23,100.00
2022
SSS Expense 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 1,165.00 13,980.00
132,000.00
2,100.00
120,000.00
3,300.00
405,207.75
22,440.00
13,980.00
10,771.20
33,805.20
21,420.00
11,674.44
58,400.00
HDMF Expense 924.00 924.00 924.00 924.00 924.00 924.00 924.00 924.00 924.00 924.00 924.00 924.00 11,088.00
-
22%
22%
1,046,684.98
817,036.91
229,648.08
1,046,684.98
473,730.37
2,159,157.96
246.10
1,925
Taxes and Licenses 47,681.16 (54,240.47) (51,213.09) (51,213.09) (108,985.50)
2021
Rent Expense 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 144,000.00
6.5.1 Break Even Analysis

2021
132,000.00
22,440.00
13,980.00
10,771.20
33,805.20
20,400.00
56,633.97
58,400.00
2,000.00
120,000.00
3,300.00
473,730.37
Delivery Expenses -
TOTAL OPERATING EXPENSES 40,123.67 40,123.67 87,804.82 40,123.67 40,123.67 (14,116.80) 40,123.67 40,123.67 (11,089.43) 40,123.67 40,123.67 (11,089.43) 372,498.51
-
6.5 Financial / Ratio Analysis
6.5.2 Payback Period

Income Before Tax 7,421.65 95,720.08 (40,259.51) 95,720.08 95,720.08 159,663.68 95,720.08 95,720.08 88,067.55 36,854.46 95,720.08 146,933.18 973,001.49
Income Tax (30%) 2,226.49 28,716.02 - 28,716.02 28,716.02 47,899.10 28,716.02 28,716.02 26,420.27 11,056.34 28,716.02 44,079.95 291,900.45
Divided by Contribution Margin Ratio

NET INCOME (LOSS) 5,195.15 67,004.06 (40,259.51) 67,004.06 67,004.06 111,764.57 67,004.06 67,004.06 61,647.29 25,798.12 67,004.06 102,853.22 681,101.04
CONTRIBUTION MARGIN RATIO
BREAKEVEN POINT IN PESOS
BREAKEVEN POINT IN UNITS

TOTAL OPERATING EXPENSES
Divided by Mark Up
Offi ce Supplies Expense
Variable Expense
Divided by Sales
Depreciation Expense
Fixed Expenses
Operating Expenses:
Advertising Expense
Gross Margin
PhilHealth Expense
Taxes and Licenses
Delivery Expenses
Utilities Expense
Salaries Expense
Net Sales
13th Month Pay
HDMF Expense
Rent Expense
SSS Expense
Return on Investment and Payback Period
2021 2022 2023 2024 2025 NPV
Discount Rate 10%
Net Income (244,082.30) (145,937.99) 80,267.11 79,098.95 76,921.68
Depreciation 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
Net Cash Flow (240,782.30) (142,637.99) 83,567.11 82,398.95 80,221.68 (367,899.48)
Discount Factor 0.9091 0.8264 0.7513 0.6830 0.6209
Present Value (218,893.00) (117,882.64) 62,785.21 56,279.59 49,811.35
Accumulated PV (218,893.00) (336,775.63) (273,990.43) (217,710.83) (167,899.48)
Return on Investment -15%

Payback Period
Year Net Cash Flow Capital Investment 200,000.00

1 -24078230% 440,782.30
2 -14263799% 583,420.29
3 8356711% 499,853.18
4 8239895% 417,454.22
5 8022168% 337,232.55
6.5.3 Internal Rate of Return

2021 2022 2023 2024 2025 NPV
Discount Rate 10%
Net Income (244,082.30) (145,937.99) 80,267.11 79,098.95 76,921.68
Depreciation 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
Net Cash Flow (240,782.30) (142,637.99) 83,567.11 82,398.95 80,221.68 (367,899.48)
Discount Factor 0.9091 0.8264 0.7513 0.6830 0.6209
Present Value (218,893.00) (117,882.64) 62,785.21 56,279.59 49,811.35
Accumulated PV (218,893.00) (336,775.63) (273,990.43) (217,710.83) (167,899.48)

Payback Period

1 -24078230% 440,782.30
2 -14263799% 583,420.29
3 8356711% 499,853.18
4 8239895% 417,454.22
5 8022168% 337,232.55
125
6.5.4 Net Present Value

2021 2022 2023 2024 2025 NPV
Discount Rate 10%
Net Income (244,082.30) (145,937.99) 80,267.11 79,098.95 76,921.68
Depreciation 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
Net Cash Flow (240,782.30) (142,637.99) 83,567.11 82,398.95 80,221.68 (367,899.48)
Discount Factor 0.9091 0.8264 0.7513 0.6830 0.6209
Present Value (218,893.00) (117,882.64) 62,785.21 56,279.59 49,811.35
Accumulated PV (218,893.00) (336,775.63) (273,990.43) (217,710.83) (167,899.48)

Payback Period

1 -24078230% 440,782.30
2 -14263799% 583,420.29
3 8356711% 499,853.18
4 8239895% 417,454.22
5 8022168% 337,232.55
Chapter 7
SOCIO-ECONOMIC FEASIBILITY STUDY
Every company has one purpose and that is to decide how the business
maximizes income. Another aspect is the socio-economic aspect and should be given
importance to the industry.
This chapter of the feasibility study focuses on the company's social and
economic obligations and evaluates its responsibilities towards the workers, community,
government and environment.
126
7.1 Socio-Economic Feasibility Objectives
 To determine whether a project, research study or future business should
continue or not.
 To identify the efforts the company is making to help achieve the goal of
economic progress.
 To know the strengths, weaknesses, threats, and opportunities of the
company.
 To determine the four external factors which is the PEST that will affect the
business performance and activities.
7.2 Regulations / Environmental Issues
7.2.1.1 Project Employees
There is no need to hire project employees. Project employees are
employees who will only be employed for a specific time or until a project ends.
The company will only hire regular employees.
7.2.1.2 Government
Government inaugurates regulations and rules in running the business.
Among the government regulations is to report income and pay taxes; others
regulate how they dispose of their excess materials or waste.
127
7.2.1.3 Proponents
The proponents or the researchers might help the business to promote the
product. Also, they might be able to know the perspectives of the target market
for the betterment of the organization or group. The suggestions and decisions
about the target market will also be done by the proponents. Additionally, the
proponents may be able to identify if the new product will be effective.
7.2.1.4 Community
The community has an effect on the business. The community might not
be the target consumers but they can also be employed in the business. As the
community engages in the business, its support will generate a positive
reputation, attract new consumers, and encourage customer’s loyalty. The
community implements a unique support network for businesses and individuals
that lends something that we all look for: a sense of belonging, that feeling of
being connected and accepted by your peers is important for our personal growth
and development. Lastly, the involvement of the community in the business, it
increases brand awareness; it makes your business visible and allows the people
to get to know your product better.
7.2.1.5 Customers
The company's target is the benefit of the customers. Food Realm Inc. will
produce Heat n’ Eat electric lunch box for people who have a busy lifestyle and
128
to help save money on meals. With the help of Heat n’ Eat electric lunch box, it
ensures that food quality is at its best.
7.2.1.6 Other Beneficiaries
7.2.1.6.1 On Population
Population in the country has a huge percentage to increase, the
physical store of Food Realm Inc. is located in a place where many people
pass by and public utility vehicles traverse. There are only few possible
competitors within the community. Using this as a leverage will help boost
the sales.
7.2.1.6.2 On Ecology
The business will help save the earth by beginning with proper
garbage disposal. Segregation will be observed to make recycling and
detection of usable wastes easier. Using the product will also reduce
plastic waste from other plastic food containers since the product is
reusable. The business also has a plan that the plastic housing will be
made up of recycled plastic in the future.
7.2.1.6.3 On Infrastructures
129
The proposed business by the Food Realm Inc. does not need
infrastructure as of the moment. So, the business will not affect any
existing infrastructures. The small space is sufficient for the business
since the business is still not a large-scale company.
7.3 Critical Risk Factors
7.3.1 SWOT Analysis
Table 7.1: SWOT Analysis
130
Strengths
Weaknesses
- The product benefits people who are

- The proprietors are inexperienced in
busy and health-conscious.
managing a business.
- The product is unique.
- The few number of employees can
- There is an existing demand for food
slow down the production.
containers so the product can also
- The selling price is on the expensive
create its own demand.
side.
- The business will provide job
- Blackouts are a weakness because
opportunities.
the product needs to be plugged in a
- The business can also contribute to
power outlet to reheat food.
the country’s economic development.
Opportunities
Threats
- Food Realm Inc. can sell the product

to distributors, who will then sell to - Direct and indirect competitors.
wholesalers and retailers like malls, - Other companies may copy the
grocery stores, and home appliance product.
stores. - Convenience stores, street food
- The product could also be exported in vendors, fast food and fine-dining
the future. restaurants can also become a threat
- The product may also be sold through to the business.
online selling websites or applications.
The table contains the strengths, weaknesses, opportunities, and threats
that the business has or will have. The strengths are the product’s benefits to
customers, the potential of the business to create its own demand, the job
opportunities that the business may provide, and the contribution to the economic
development of the country. The weaknesses are the inexperienced proprietors,
few number of employees, expensive selling price, and blackouts that can hinder
the purpose of the product. The opportunities are the possibility to sell to
distributors and profit more, product exports, and online selling. The threats are
131
the direct and indirect competitors, the possibility that the product may be copied,
and food stores that may entice the customers to choose them.
7.3.2 PEST Analysis
Table 7.2: PEST Analysis
132
The table indicates the PEST Analysis of the business. The political factors that
Economic
Political
- Inflation rate may affect the sales of
- Tax policies.
the product.
- The laws that the business needs to
- Consumers’ income could influence
follow strictly.
their purchasing power.
- Taxes, licenses, and other permits
- Increasing labor costs will cause the
which are required by the government
product’s selling price to be higher.
to run a business may also affect the
- Increasing cost of plastic can also
business if any is missing.
make the Heat n’ Eat more expensive.
Social
Technological
- Increase in population will result to
lower demand for the product since - Buying newer models of plastic
people will prioritize necessities like molding machine will speed up the
food. production and increase the number
- Changing consumer preferences or of supply.
trends in the market may affect the - Other latest technological devices can
sales of the product in a positive way also expedite the production process.
when the product becomes popular.
may affect the business are the tax policies, the laws that the business needs to follow,
and the requirements such as the taxes, permits and licenses if any of those are
missing. The economic factors that may affect the Food Realm Inc. are the inflation
rate, consumer’s income, increasing labor costs and increasing plastic cost. The social
factors that could influence the business are the population increase resulting to lower
product demand and the changing consumer preferences or trends in the market that
may heighten or reduce the demand.
133
134
BIBLIOGRAPHY
Electronic Documents
Barnier, B. and Chappelow, J. (2020). Law of Demand. Retrieved from

https://www.investopedia.com/terms/l/lawofdemand.asp.
Crismundo, K. (2018). PH household goods seen as one of Asia’s most attractive

markets. Retrieved from https://www.pna.gov.ph/articles/1027928.
Department of Labor and Employment. (2014). Book III – Conditions of Employment.

Retrieved from https://blr.dole.gov.ph/2014/12/11/book-iii-conditions-of-
employment/.
PhilAtlas. (2020). Novaliches Proper. Retrieved from

https://www.philatlas.com/luzon/ncr/quezon-city/novaliches-proper.html.
Quezon City Local Government. (2019). Quezon City Local Government – Background.
Retrieved from
https://quezoncity.gov.ph/index.php/about-the-city-government/background.
United States International Trade Administration. (2009). Food Processing and

Packaging Equipment Philippines (61). Minnesota: U.S. Department of
Commerce, International Trade Administration, 1984. Retrieved from
https://books.google.com.ph/books?
id=SrpAjGp9x8cC&printsec=frontcover#v=onepage&q&f=false.
World Population Review. (2020). Quezon City Population 2020. Retrieved from
https://worldpopulationreview.com/world-cities/quezon-city-population/.
135
APPENDICES
Appendix 1: SSS Contribution Table
136
Appendix 2: SSS Payment Form
137
Appendix 3: PhilHealth Contribution Table
138
Appendix 4: PAG-IBIG Form
139
Appendix 5: BIR Tax Table
140
Appendix 6: Office Design Layout
141
Appendix 7: Promo Coupons
142
10% OFF
COUPON
Appendix 8: Facebook Page Layout
143
Appendix 9: Twitter Page Layout
Appendix 10: Instagram Page Layout
144
Siena College, Inc.
Del Monte Ave., Quezon City
Senior High School
Dear Respondent/s,
Good morning/afternoon. Mabuhay! Blessed be God forever!
We, students from 12 - Fortitude, under the supervision of Ms. Baisa are conducting a survey
for a feasibility study. This group is proposing Heat n’ Eat an electric lunchbox. We would like to
know the respondents that are interested in buying the said product. We are hoping for your
cooperation.
Thank you for your precious time and effort. God bless!
Respectfully,
Bonus, Lord Cedric P.
Cruz, Kimberly Anne R.
Dimaapi, Allyzza B.
Pecadizo, Philip James J.
Simbillo, Jahairah V.
Villanueva, Melanie I.
Noted by:
Mr. Adrian De Guzman

Entrepreneurship Teacher
PART I. Demographic Profile of the Respondents
Name (optional):
Gender: ( ) Male ( ) Female
Age: ________
Location: ( ) Quezon City ( ) Others
Status: ( ) Student ( ) Employed ( ) Unemployed
145
Siena College, Inc.
Senior High School
Monthly income
□ 10,000 Php or less
□ 10,001 Php to 30,000 Php
□ 30,001 Php to 60,000 Php
□ More than 60,000 Php
PART II. Psychographic Profile
1. Shopping frequency
How often do you shop?
□ Less often
□ Once every few months
□ Once a month
□ Once a week
□ Very frequently
2. Do you own a company, school, or any similar establishments?

□ Yes
□ No
3. In which way do you prefer to eat when you are at work?

□ Buy food at the company canteen or cafeteria
□ Buy food at fast food or restaurant
□ Pack own lunch in a lunch box
4. Do you want your meals to be hot when eating at work?

□ Yes
□ No
5. How much are you willing to spend for a lunch box with heater?
□ Less than 200 PHP
□ 250-500 PHP
□ More than 500 PHP
6. What is the most important feature that you look for when buying a lunch box?
□ Safe materials
□ Durability
□ Can keep food warm
□ Others, please specify: ___________________________
146
Siena College, Inc.
Senior High School
PART III. The table below lists different features of a lunch box. Rate between 1-5, 5 being the
highest and 1 being the lowest, how likely you are going to purchase a lunch box with that feature.
4 2 1
FEATURE/ 5 3
BENEFIT Somewhat Somewhat Very
Very Likely Neither
Likely Unlikely Unlikely
1. Can reheat food.
2. Has an airtight
cover for less
spillage.
3. Can keep food
cold.
4. Has an
antibacterial cover to
prevent food
contamination.
5. Has an alarm for
when food is done
reheating.
Thank you for taking your time in completing our survey
147
Appendix 12: Terms and Contract
Terms and Contract
Terms of Service Agreement
The following terms of service (the “agreement”) is effective [March 24, 2020]
Between: [Food Realm Inc.] (“the manufacturer”) a company organized and existing
under the laws of [Philippines] with its head office located at [Quezon City]
And: [SM Corporation] (the “distributor”) a corporation organized and existing under the
laws of [Philippines] with its head office located at [Manila]
Whereas, this agreement between contains the service provider’s terms of engagement.
Now, therefore, in consideration of the mutual covenants and agreements herein

contained, the parties hereto, intending, to be legally bound, agree as follows:
1. Services Provided
Service provider is prepared to provide the following professional service to the

company [SM Corporation].
2. Calculation of fees and other charges
A. Fees for professional services are calculated on the time spent by service
provider associates and staff attending to the said services, multiplied by the
relevant hourly rate. Time is casted by reference to [Heat n’ Eat] electric lunch
box units. The hourly rate is applied to all work done on company’s behalf,
including making telephone calls, writing letters, researching the laws,
148
negotiating with partners and preparing documents. The average hourly rate
for the manufacturer is [1000].
B. Before any bill is sent to the company, the service provider project manager is
responsible for the matter will review it to ensure that fee and other charges
are appropriate.
3. Billing arrangements
A. Billing occurs at the end of the month with description of work performed
during that month.
B. Bills are payable within [120] days of the date of invoice.
149

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Chapter 1

The objective of this feasibility is to provide an electric heated lunchbox in the

product, the workers can warm or reheat their lunch conveniently.

1.1.1 Name of the Proposed Business

see whose product it is.

comfortable, enjoyable eating experience for people on the go, allowing

consumers to make healthy choices on a daily basis. To achieve zero tolerance

in quality, maintain customer satisfaction through cost effectiveness, value added

service, service orientation is also the company’s mission.

To reach out globally, expanding domestic market by providing quality

production, updating technology and achieve phenomenal business growth.

1.1.4 Product Description

plugged into an electric source. Electric heated lunchbox allows customers to

within few minutes. The proponent’s product, which is an electric heated

easy transportation that is similar to a picnic cooler.

This chapter covers the company's different department management. It

determines and studies the business flow, organization, and arrangement of

chapter includes the operational strategies, the advocates, business ownerships,

1.1.6 Marketing Feasibility

Marketing is said to be the lifeblood of a feasibility study. It aims to

marketing aspect highlights the product. The proponent’s product is an electrical

heating lunch box with alarm.

one of their promotion or advertisement strategies. Lastly, Food Realm Inc.,

made sure to offer customers quality products at a fair price.

1.1.7 Technical/Operations Feasibility

This aspect will be explored extensively to provide a detailed knowledge of

enable readers to grasp an understanding how the product will be made.

Additionally, the proponents came up with their methods of disposal of waste,

because if there is development, there would definitely be waste.

1.1.8 Financial Feasibility

1.9 Socio-Economic Feasibility

This chapter includes the socio-economic benefits of the proposed

the socio-economic development of the country.

1.2 Conclusions to Feasibility Study

resources strategically is important to make a good planning process. Proprietors

up as well as disappointments. The business plan is a fundamental tool and is

with an executive summary, followed by a description of the business in detail, including

how the business will differentiate itself from the competition.

decide the product supplier, and the proponent’s utilities provider.

2.1 Project Proponents

Table 1.1 Project Proponents

Name Nationality Address %Ownership Position

2.2 Name of the Firm/Proposed Name of the Firm/Project

toxic, durable, and convenient;

even saves time and money;

and is ready to eat right away; and

or fighting for microwave time.

2.4 Location of the Business/Office

Novaliches, Quezon City. As seen on the vicinity map, it is surrounded by many

product is near that place.

2.5 Site Analysis

2.5.1 Visibility from the Main Arteries

The business will be located in 14 Orange St., Odelco Subdivision,

Novaliches, Quezon City. Novaliches is a mainly a residential area so the

business is closer to customers. A lot of other small and well-known businesses

is near to many landmarks such as SM City Novaliches, Holy Cross Memorial

Park, Novaliches General Hospital, STI College - Novaliches, convenience stores