A FEASIBILITY STUDY

ON

FRESH & FROST ICE CANDY

In Partial Fulfillment of the Course Requirement

(Inquiries, Investigations, and Immersion)

Presented to

LYNBERT P. CAHIGAL

DNHS SHS Faculty

Presented by

IVY JOY MONDAS

12 ABM B - Student
Project Title: Fresh & Frost Ice Candy

Beneficiaries:

The people in the compound of Poblacion 1 are the beneficiaries of the

proposed project.

Name of Organization:

Fresh & Frost Ice Candy is a privately owned organization. It acts as a

distributor of chocolate ice candy product. It is formed as a single proprietorship to be
simple to establish and to have fewer requirements in terms of legalities such as a
business permit, taxes, and other aspects of the business.

Business Address:

The project proposal will be located within Poblacion 1 near the village hall.

Telefax: N/A

Telephone: N/A

Email: mondasivyjoy17@gmail.com

Contact Person: Ms. Ivy Joy Mondas

Total Cost of Project: Php 1,500

Own Means:

The proponent request money from her parents for the capital of her business.

Duration of the Project: One (3) months

Introduction:

Barangay Poblacion 1 is a barangay in the municipality of Midsayap in the

province of Cotabato. The Population within poblacion 1 is 3,728 people which is
equivalent to 826 families (Appendix 2). Most of the settlers are Maguindanaons and
Iranuns. The current economic condition in poblacion 1 is progressively adapting to the
new normal life brought on by the epidemic. The occupations of the people in the
compound of poblacion 1 are cashier, rice and corn farmer, nurse, and driver. The
terrain is a plain land.

Project Rationale and Target Group

Ice candy was accidentally invented in 1905 by a San Francisco Bay area
kid named Frank Epperson. He’d combined sugary soda powder with water and left it
out overnight. The mixture froze due to the cold night. The product’s target audience is
more likely to be children and anyone of any age who wants to try the chocolate ice
candy. However, the business will concentrate in the vicinity of the owner’s home to
reduce transportation costs. Because I am the only vendor in Poblacion 1, selling
chocolate ice candy has the potential to be profitability. As a result, the proponent
believes that the availability of chocolate ice candy will increase demand in poblacion 1.
Food industry business is concerned with providing quality and clean food, which is
especially important for people’s health. Furthermore, Fresh & Frost Ice candy is a small
business enterprise that aims to improve the well- being of customers, particularly
during the dry season.

Background of the Proponent

The proponent is a Junior High School graduate of Dilangalen National High

School (DNHS) and now a Grade 12 Senior High School Accountancy, Business, and
Management (ABM) student at the same school. She is currently residing with her
grandparents in Poblacion 1 Midsayap, North Cotabato. The proponent ensures the
credibility to manage any business venture that occurs. In terms of personalities, the
proponent is enthusiastic about the business’s input and output, The goal is to create a
profit to continuously perform the business. To achieve this goal, it provides customers
with satisfaction as soon as they begin using the product and provides them with a light
feeling of relief during the hot weather. The proponent believes that “The price of
success is hard work, dedication to the job at hand…. Whether we win or lose, we have
applied the best of ourselves to the task at hand.”
Strategic Directions:

Vision Statement:

The vision of this business is to make a profit so that it can continue to operate.
Fresh & Frost ice candy store is dedicated to becoming the number one chocolate ice
candy store in the barangay of poblacion 1, as a neighborhood chocolate ice candy
store in the Midsayap. I aspire to be one of poblacion 1 Midsayap’s leading chocolate
ice candy stores.

Mission Statement:

Our mission at Fresh & Frost ice candy is to establish a very successful ice candy store
that is more than committed to satisfying its customers. This will be accomplished by
expanding my ice candy store into various locations throughout the Midsayap, and
these ice candy will be ready to provide quality services to customers.

Program and Services:

Management personnel will be trained and practiced in selling chocolate ice candy.
As the business strives to provide a professional level of service, the proponent will
anticipate the customer’s possible attitude and behavior. Professionally, the proprietor
and future employees would be evaluated in real life situations in the ice candy
business. Training is required for personnel to have a better understanding of how to
handle a bad situation.

Product Sanitation will be prioritized because the business does not want to harm
the environment. In the business, proper waste disposal is practiced, particularly about
boxes, plastics, and other waste materials. In addition, the product will be neat, clean,
and well packed to ensure there is no hole or any dirt in the product before it is sold to
customers.

One of the most important aspects of a business is the business area. When Fresh
& Frost Ice candy is on its way to success and the owner has saved from the growing
profits of the business, one of the most important aspects of the business is the
location. When there are sufficient funds and the business continues to thrive, the
owner will devise a strategy to improve the area and broaden its scope.
 The marketing plan can be applied to the promotion of a business. Because the
business will be run from the owner’s home, promotional materials such as posters will
be distributed digitally via social media platforms. Before the actual day of ice candy
sales, the business’s Facebook, Instagram, and other social media accounts will post a
picture of the chocolate ice candy. Aside from that, no product price increases are
planned for the duration of the operation. Proponents believe that proper
implementation of the program and the services provided to consumers will significantly
benefit the business.

Projected Projected Projected Projected Advertisement

Activity Action plan number of number of sales sales cost/cash gifts
consumers units sold discount
3 month
Selling promoting in the 1,800 1,800 18,000
chocolate social media
ice candy afterwards.

Organizational Structure

During the selling process, the owner will become the seller. The owner
oversees the Fresh & Frost Ice Candy sole proprietorship business and serves as its
manager. The role is to ensure that the ice candy is delicious, to keep the business
moving forward, and to promote the chocolate ice candy on social media.

Aside from the seller, another partner in selling ice candy will assist the owner in
running the business. The assistant role will be responsible for taking down customer
information and writing it down so that the seller is not interrupted while selling.

Track Record and Work Experiences

Because the proponent will be the primary seller and manager, the track
record is presented as qualified to fill those roles because the owner has one month of
selling ice candy. The seller is knowledgeable about the events that occur when selling
ice candy and is capable of teaching and guiding the assistant in the proper writing of
customer information and details.
The Project Aspects:

Market Aspect:

The distributed sloven’s formula is used to obtain data on product demand. The
responses of the respondent’s serve as the foundation for determining the average
demand for the product. Such demand is expected to rise in the coming months as the
number of consumers grows. There is currently no seller or distributor for the product.
As a result, to gain popularity, the product must be promoted on social media.

Demand

After conducting survey to the people within barangay poblacion 1, the demand
of ice candy is in high demand most especially to those children and anyone who crave
the chocolate ice candy. On the 20 questionnaires being distributed, 100% answered
“No” there is no chocolate ice candy existing in the compound and 0% answered “Yes”.
In number 2 question, they answered 100% “Yes” they would like to have a chocolate
ice candy business in the compound while 0% answered “No”. The respondents show
that there is a high demand for such product in the locality. Shown below are the results
of the survey of the fresh & frost ice candy product.

Table 1
Percentage Distribution of Responses in Question #1
Responses Frequency Percentage Distribution
Yes 0 0
No 20 100%
Total 20 100%

In table 1, it shows that 100% of respondents say “No” chocolate ice candy
existing in the compound.

Table 2
Percentage Distribution of Responses in Question #2
Responses Frequency Percentage Distribution
Yes 20 100%
No 0 0
Total 20 100%
In table 2, it shows that 100% of respondents would like to have a chocolate ice candy
business in the compound of poblacion 1.

Table 3
Percentage Distribution of Responses in Question #3
Responses Frequency Percentage Distribution
Yes 20 100%
No 0 0
Total 20 100%

In table 3, it shows that 100% of respondents like the taste and services of Fresh
& Frost Ice candy.

Table 4
Projected Market Product Demand
Projected Demand of Chocolate Ice Candy
Month Demand Total Population Frequency of
Demand
1 600 3,728 16.09%
2 600 3,728 16.09%
3 600 3,728 16.09%

It is assumed that each costumer buys one chocolate ice candy. Table 4 shows
the frequency of demand comparing to the total population of Poblacion 1.
Note: Actual demand is based on the answered survey questionnaire (20
questionnaires means 20 costumers everyday times 30 days a month).

Table 5
Projected Percentage on Product and Demand
For the next 3 months
Consumers Choice Product % Based on product
1st Choice Chocolate Ice candy 100%

Through this, the proponents would assume the total consumers choose 1 choice
to arrive its respective percentage which is now the basis for the sales of product
demand of the market.

Computations:

1st Choice Product

 Total choice (respondents) 20/20 overall total = 100% Chocolate ice candy product
(%).

Supply:

The availability of raw materials is in good condition since the owner has her own
material to use in making ice candy. There is no shortage of supplies because the
business area is in town near a market or grocery store where supplies that required
immediately can be purchased.

Table 6
Projected Supply
For next 3 months
Chocolate ice candy
Monthly Projected # of
Month Product Demand (%) Supply

1 100% 600

2 100% 600

3 100% 600

Table 6 shows the projected supply for chocolate ice candy. Projected supply is
based on actual demand show in table 4. It is assumed that the business will produce in
the maximum of 600 ice candy per month.

Table 7
Actual and Projected Introductory Price for Ice candy Product
For next 3 months
Product Actual Price Projected price Introductory
increase Projected price
Chocolate Ice Php 10.00 0% Php 10.00
Candy
Note:

Assume that the introductory price (projected) would be the same for next 3
months projection.
 Table 8
Summary Projected Monthly Supply
Of Chocolate Ice Candy
For 3 months of Operation
Projected Demand Projected Projected total
consumption per monthly supply
consumer
Month Refer Table 4 Refer Table 6

1 600 1 piece 600

2 600 1 piece 600
3 600 1 piece 600
Total 1,800 1,800

Projected Sales:

The projected sales for next 3 months based on projected demand and
supply will show below.

Projected Sales
Chocolate Ice Candy
For next 3 months
Units sold (based Projected selling Total Projected
Month on projected price Refer to table Sales
demand) 7
Refer table 4
1 600 10.00 6,000

2 600 10.00 6,000

3 600 10.00 6,000

Total 1,800 10.00 18,000

Competitive Position:

Chocolate ice candy is new to Poblacion 1, especially in the compound,

though it has been done for a long time. However, because there are so many desserts
to choose from and buy, I decided to sell chocolate ice candy here in compound
because it is in high demand among children and teenagers who enjoy cold and sweet
foods, especially during this dry season Since I am the sole vendor/seller of the product
in the area, there is no existing competitors. The price of ice candy will not rise it will
remain at the same level as before, making it affordable to consumers. The proposed
business will be selling the product at an introductory price of 10 pesos for chocolate ice
candy. There is no increase of the price in next month so that consumers are likely
patronized and prefer to buy the product. The product will be sold in the house of the
owner, to provide convenience to the neighborhood customers. The product will be
frozen and well packed in thick ice candy bag to avoid it from being contaminated with
bacteria.

Technical Aspect:

This aspect will show how chocolate ice candy is produced, the equipment
needed, the business site, lay out, and the organizational chart.

Procedure and steps in making Chocolate Ice candy:

We got to start 1 day before the actual preparation for us to prepare the
ingredients.

1. Prechill
a. 2 packs of all-purpose cream
b. 2 cans of condensed milk
c. 2 cans of evaporated milk.
2. Pour the chilled 2 pack of all-purpose cream into mixing bowl and blend it using
hand mixer and wait until the all-purpose cream doubled size.
3. The mixing bowl with the all-purpose cream, combined the 2 cans of condensed
milk and 2 cans of evaporated milk and mix vigorously until all ingredients are
well blended. Set aside for later.

For the chocolate coating.

1. Mix cocoa powder with a little hot water in a bowl until it’s thick enough to stick to
the plastic bag of ice candy.
2. Transfer the melted chocolate to a pastry bag or a squeeze bottle.
3. Pour a portion of the melted chocolate in an ice candy plastic bag enough to
evenly coat the almost full portion of the bag. Use a funnel to pour the ice cream
mixture inside of the ice candy bag.
 4. Squeeze tightly by twisting downward and tie the opening of the ice candy bag to
seal the ingredients inside.
5. Freeze overnight. Serve for merienda or as a dessert after meal.

Equipment’s Needed:

The equipment to be used is refrigerator, squeeze bottle, mixer, mixing

bowl. All these equipment’s can be purchased from neighboring cities, if not available
locally by the business.

Refrigerator- to make the ice candy more durable.

Squeeze bottle- for chocolate filling.

Mixer- To mix all the ingredient’s well.

Mixing bowl- where the ingredients are mixed.

Below are tables showing production facilities and tools used by the business.

Table 9
Production Facilities & Tools
Quantity Particular Capacity Unit cost Total Estimated Monthly
life Depreciation
1 Refrigerator 260kg 13,000 13,000 10yrs. 108
1 Mixer 1.1kg 1,050 1,050 3yrs. 29
1 Squeeze 25 25 5 months 5
bottle
1 Mixing bowl 180 180 1yr 15
Total 19,255 157

Note:
The proponent has not much investment, because the equipment needed
for her business owned by her parents.

Business Site:

The prospective area of the business will be located within Poblacion 1, Gayak
Compound Mosque, near the village hall. Customers are the owner’s neighborhood so
they can easily find the business area.
 Layout:

DINING GARBAGE
AREA
AREA

F C C
T
L H H
A
O A A
B
W I I
L
E R R
E
R E

OWNER
COOKING REFRIGE- TABLE
AREA RATOR

Sketch:

HOUSE

H
MOSQUE
O
G
U
A
S
T
E
E

BUSINESS
LOCATION
Utilities:

The utilities that will be use from this business are electricity and water
expenses. Since this business needs an electric machine to make the product, the use
of electricity would be vital to the lifeline of the business. The refrigerator is needed to
make the ice candy more durable/hard.

The other utility that could lead to expense is the use of water, with so much
equipment’s used to make ice candy, you can also wash a lot and use a lot of water,
which leads to water costs.

Waste Disposal:

Waste disposal will be given enough time to ensure that the waste
generated by the business is disposed of properly. Plastic waste will be prohibited and
controlled by personnel so that it does not affect or harm the plants.

All business waste will be collected and classified as biodegradable or non-

biodegradable. Once the ice candy selling and packaging is completed, the waste will
be disposed of either by burying it in the soil or by waiting for a truck from the barangay
and municipality to collect it once a week. However, one thing is certain; the waste will
be collected properly and will not be dumped.

Management Aspect:

Pre- Operating Activities:

Pre-operational costs will be incurred to establish the proposed business. The

following activities must be considered during the pre-operational period: First,
consideration for the proposed business feasibility study. The feasibility study
determines whether such a business is feasible and considers the associated costs.
Second, because a business cannot exist in the absence of a fund or capital, it is
necessary to determine where the capital should come from. In this case, the capital will
be coming from internal a source. Which of the proponents will finance the business?
Then, once the funds are available, the hiring and training of employees takes place
during the pre-operational period.
 The Proponent will use PERT/CPM for determining of pre-operating activity.

PERT/CPM Model

Star A B C D Finish

Activity on mode networks:

A – Planning

B – Feasibility

C – Acquisition of materials/supplies

D – Implementation

The proponent will use the Gantt chart as the basis in the pre-operating activities.

Gantt Chart Model

Activities 1st week 2nd Week 3rd Week 4th Week 5th Week 6th Week

Planning Xx Xx
Feasibility Xx Xx
Acquisition of Xx
Materials/Supplies
Implementation Xx Xx
Management During the Operating Period
Hiring of Personnel and Job Qualification

Hiring of personnel will be available once the business ideas have been
completed and a business site has been established. Personnel would be aware of the
job qualifications for the available vacancy in the business. To be follow the things that
are prescribed to him, he/she must be able to listen and be aware. To avoid bacteria,
keep the body and workplace clean. To be considered for the position of Assistant. The
business will not be picky about an applicant’s educational background if they can
understand, know how to listen, and have an initiative. Must demonstrate
professionalism in dealing with a situation. Must pass a basic interview. He/she must be
polite and kind to the other people with whom he/she works, particularly customers.

The purpose of this employment is to assist the owner/seller in

completing the ice candy business. The seller will post online, and the assistant will take
down the customer’s information and fill in for the seller if the seller has a personal
issue, such as being sick or emergency. Another role of the assistant is to guarantee
that the ice candy is in good condition and that no damage has occurred, and that the
customer’s feedback will help to the development of the business and it’s increasing
family.

Organizational Chart

Fresh & Frost Ice Candy

Owner/Seller

Assistant Seller
Financial Aspect:
Project Costs

Quantity Cost per Unit Total Cost Unit

Cocoa 1kg 220 220

Nestle Cream 2 57 114

Evaporated Milk 2 22 44

White Sugar 1kg 62 62

Ice candy bag 2 10 20

Condensed Milk 2 33 66
Total ₱526.00
Working Capital ₱974.00
Requirement
Total Project Cost ₱1,500.00

The table shows the financial projections and costs of chocolate ice candy.

Fund Sourcing

Total project cost of ₱1,500 will be funded by the business owner. In order to

minimize the expense by avoiding to pay interest, the owner will not be funded by the

bank.

Basic Assumptions:

1. Initial investment of ₱1,500

2. The ingredients costing ₱526 is good for 100 pieces of Chocolate Ice Candy

3. Monthly transportation is ₱180

4. The administrative and selling assets are pre-used in the house of the owner.

Meaning, no need to buy new equipment.

5. No depreciation since there is no fixed assets bought.

6. The owner is the seller of the business

7. Utilities expenses are fixed in ₱400 per month

 Fresh & Frost Ice candy
Projected Income Statement
For the next 3 months
Month 1 Month 2 Month 3

Sales 6,000 6,000 6,000

Cost of Goods Sold 3,156 3,156 3,156

Gross Profit 2,844 2,844 2,844

Monthly transportation 180 180 180

Utilities Expense 400 400 400

Operating profit 2,264 2,264 2,264

Net Profit ₱2,264 ₱2,264 ₱2,264

Fresh & Frost Ice Candy

Projected Statement of Cash Flow
For the next 3 months
Month 1 Month 2 Month 3
Beginning Cash Balance 0 3,764 6,028
Cash flow from operating activities
Cash receipts 6,000 6,000 6,000
Materials and supplies 3,156 3,156 3,156
Transportation expenses 180 180 180
Utilities Expenses 400 400 400
Net cash flow from operating activities 2,264 2,264 2,264
Net cash flow from investing activities 0 0 0
Cash flow from financing activities
Owner’s investment 1,500 0 0
Net cash flow from financing activities 1,500 0 0
Cash flow – ending balance ₱3,764 ₱6,028 ₱8,292

Fresh & Frost Ice Candy

Projected Balance Sheet
For the next 3 months
Month 1 Month 2 Month 3
Current and Non-current Assets
Cash (Projected Statement of Cash Flow) ₱3,764 ₱6,028 ₱8,292
Total Assets ₱3,764 ₱6,028 ₱8,292
Liabilities and Owner’s Equity
Liabilities 0 0 0
Total Liabilities 0 0 0
Owner’s Equity (Projected Statement of ₱3,764 ₱6,028 ₱8,292
Owner’s Equity)
Total Liabilities and Owner’s Equity ₱3,764 ₱6,028 ₱8,292
 Fresh & Frost Ice Candy
Projected Statement of Owner’s Equity
For the next 3 months
Month 1 Month 2 Month 3

Beginning Capital 1,500 3,764 6,028

Add: Net Income ( Projected Income 2,264 2,264 2,264

Statement)

Ending Capital ₱3,764 ₱6,028 ₱8,292

Financial Statement Analysis:

Formula:

Current ratio = Current assets/Current Liabilities

Analysis:

- The business doesn’t come up with the current ratio since it doesn’t have a liabilities

nor obligations to pay.

Test of Profitability
Gross Profit Margin
Month 1 Month 2 Month 3
Gross Profit 2,844 2,844 2,844
Divided by: Net Sales 6,000 6,000 6,000
Gross Profit Margin 47.4% 47.4% 47.4%

Analysis:

- The ratio is calculated to be 47.4%, this means that for every revenue generated,

47.4% is returned while 52.6% is attributed to the cost of goods sold. Therefore, a

47.4% is a high margin.

Operating Profit Margin

Month 1 Month 2 Month 3
Net Cash from Operating Activities 2,264 2,264 2,264
Divided by: Net Sales 6,000 6,000 6,000
Operating Profit Margin 37.7% 37.7% 37.7%
Analysis:

- The calculated operating profit margin is 37.7%, which is considered good. The

company is earning enough money from business operations to pay for all of the

associated costs involved.

Return on Investment
Month 1 Month 2 Month 3
Net Income 2,264 2,264 2,264
Cost of Investment 1,500 1,500 1,500
Return on Investment 150.93% 150.93% 150.93%

Analysis:
- The calculated return on investment is 150.93% and it is considered high. This
means that the business is successful at using the investment to generate high returns.

Payback Period
Month 1 Month 2 Month 3
Initial Cash Investment (1,500)
Less: Cash Flow ₱3,764 ₱6,028 ₱8,292
Total ₱2,264
Payback period 0.40

Payback Period = 1,500/2,264

= 0.40

Analysis:

- The payback period is short, which is considered better. Within the operation of the

business, the business has managed to payback its investments.

Socio – Economic Aspect:

This company will make a significant contribution to the socioeconomic aspect

of the country because businesses and entrepreneurs are the backbone of the

economy, allowing it to exist and generate revenue for the country’s welfare. In this dry

season, society, and people, particularly children and teenagers, will benefit from

satisfying their cravings for cold/ice foods. Customers who are satisfied will give positive
feedback to society, Furthermore, the government will be impacted by this business

because every purchase contributes to the estate tax.

Acknowledgement:

I’d want to convey my heartfelt gratitude to Sir Lynbert P. Cahigal, our subject

teacher, for allowing us to do this research to enhance our knowledge in the field of

business. Also, for allowing us to get a taste of what its like to run a business and earn

money in the real world. I’d want to express my heartfelt gratitude to my family, friends,

and classmates for their unwavering support for the company’s success throughout the

process. Their presence and support provide me with a great deal of inspiration and a

desire to conquer other issues, as well as providing information on topics about which I

am unaware.

This business has greatly aided me in gaining the life realizations. I learnt

how to properly plan my time to balance all my commitments at home and in schoolwork

and projects through this business. The fresh & frost Ice candy business gives me a

taste of the real world, where making money is difficult. To be able to earn money, I

need to put up effort and compassion to complete and do the business activities. In

addition, I discovered that I could run a business on my own while operating this

business. I overcame my anxiety of not being able to carry it out, and I did it graciously,

overcoming all my reservations. I was able to wander because of this small business.
APPENDICES