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Dried Mango and Mango Juice Production
Dried Mango and Mango Juice Production
Dried Mango and Mango Juice Production
Introduction
study for a dried mango and mango juice production in Bansalan, Davao del Sur.
Mangoes are known as “the king of all fruits”. Beyond the sweet, luscious
antioxidants that assure your optimum health. The name “mango” is derived from
the word “mangkay” or “man-gay”, when the Portugese traders settled in Western
India, they adopted the name as “Manga”. Mangoes are bursting with protective
nutrients. The vitamin content depends upon the variety and maturity of the fruit,
when the mango is green the amount of vitamin C is higher, as it ripens the
amount of beta carotene (vitamin A) increases. This is the reason why there are
a lot of products made out of mango in the market today that is constantly
arising. Among those products were the very famous dried mangoes and mango
juice.
around the world, very convenient, that made Cebu City more popular because
of distributing the finest dried mangoes around the globe. While it is a better
alternative to sugar candy and other junk foods, dried fruit still be consumed in
1
moderation because it contains much higher amounts of sugar and calories than
regular fruit.
fulfilling fruit beverage also acts as a beneficial dietary food item that aids in
normal bodily function and the prevention of health risks. Like many other natural
fruit drinks, mango juice, sometimes referred to as mango nectar, packs a variety
of both vitamins and minerals. Each cup of mango juice aids a more than feasible
source of both vitamins A and C to any diet. Without sugars, pure mango nectar
The following questions were answered after the completion of the research
3. Who are the competitors of the proposed project and how they are
doing?
2
5. Will the proposed project be able to gain profit with the proposed
uncontrollable expenses?
proposed business.
are doing.
In view of the successful entry of dried mango and mango juice production
the dried mango and mango juice production in Bansalan, Davao del Sur can be
successful as well.
3
Significance of the Study
To the Dried Mango and Mango Juice Industry- this study helps to
To the marketers- it largely contributes the study in order for them to know
the importance and benefits of dried mangoes and mango juice and
and less expenses for their fare. It helps them to know the benefits of the
said project.
The study is limited to determine the feasibility of Dried Mango and Mango
Juice Production within Bansalan and Digos City area only. This study focuses
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CHAPTER II
of the top 10 producers of mango in the world. The Philippines claim to have the
world’s sweetest mango and that is the Philippine Carabao Mango. Thus,
Philippine mango, either fresh or processed, has been in demand in the export
market.
Tirtha (1998) had described that pulp of mango is used to cure diabetes
and hypertension. Kirti Kumar and Baju (1998) also states that the ripe mango
fruit is considered as a laxative drug. This only implies that dried mangoes and
mango juice is a very nutritious product which can compete locally and even in
international market.
the plant. Purchase of equipment is an even bigger cost item,” Siao said. On the
other hand, your investment will surely be paid off after a year because dried
mangoes and mango juice are in demand locally and even in international
market.
Before starting a business, you have to assure that the customer service
standards are always implemented with each customer, not just the clients or the
and performance reviews, then enforce and measure those standards. The
reputation of your business relies heavily on the service your team provides.
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CHAPTER III
METHODOLOGY
The nature of the research determines that both primarily research and
said study. Observational research method will be used to collect the information
methods, this chapter will include information about how research subjects will be
selected, what data collect instrument will be used to conduct the survey and the
observational research, what procedures will be followed to collect the data, and
what sample selection criteria will be applied, and how the collected data will be
Market Area
Each economic activity has a location, but the various demands (raw
materials, labor, parts, services, etc.) and flows each location generates also
have a spatial dimension called a market area. A market area is the surface over
factory it includes the areas to where its products are shipped; for a retail store it
is the tributary area from which it draws its customers (Dr. Jean-Paul Rodrigue).
6
For an established dried mango and mango juice business, it is not hard
to get market area information. Surveys can be made to gather information about
where the customers are from, and plots on the maps can be made to give a
its market threshold and range. On the other hand, it is hard to predict the market
Now that you have an understanding of where your small business stands,
it is time to take all the information you have collected and use it to segment your
match your products with buyers’ requirements. Since you have already identified
and analyzed your buyers, you need to take it a step further. You would want to
examine the differences among your buyers and categorize them into subgroups
of the total market. You can break down your market characteristics using three
education, stage in life cycle, social class, occupation, and religion race.
7
2. Psychological Characteristics including their personality and lifestyle.
However, in this study, market area can be easily identified since the
proposed site will be located in Poblacion Uno, Bansalan, Davao del Sur. The
following discussion will first identify the market area of dried mango and mango
juice production and analyze the characteristics of the market area, and then
describe the future development of the market area of the proposed dried mango
In today’s world the buyers has unlimited choices of spending his/her money
on a wide range of products and services. These choices are possible due to
global competition, rapid change, and needs and wants of buyers. For a small
competition, guide the choice of who they should target, and indicate the
The site of (15m x 25m) or 375 square meter dried mango and mango juice
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few meters from the Public Market and a few kilometers away from Digos City,
about 20-25 minutes travel from the site. Therefore, it is very accessible for the
and even from the nearby Hotels which is included in my target market.
After determining the market area of the dried mango and mango juice
production, the following paragraphs will look at the population profile and
consumer.
determining whether or not to open a dried mango and mango juice production in
Bansalan. The demographic profile includes the total population of the registered
business in the market area in this way it reveals the information needed by any
business person to make their decision. The researcher focuses in the most
Based on the city licensing division of Digos City and municipal licensing
1% higher than in 2013, 2% higher than in 2012, and 1 % lower in 2011 and
2010.
9
In this study, population profile and consumer money availability will be
collected mainly through surveys due to lack of such statistics from the
government.
In finding a location for a dried mango and mango juice production, a site
selection criteria checklist is structured to help get the right data and the right
spending pattern, the next step to be made is to decide which specific placed the
facility location, both for business and government. Site selection involves
measuring the needs of a new project against the merits of potential locations.
Competition Analysis
to help the proponent get the right data and the right information about their
business.
competitors are, what strategies they are using and have planned, how
accessible so you will need to dig deep into product brochures, patent
10
applications, the services they offer and much more. Competition analysis is not
just randomly choosing the business, and has a rough idea of what the
competitors are like, but to be carefully choosing the direct and indirect
competitors and analyse all the aspects of their business and through giving
them survey questionnaire for supply or a straight interview with the manager or
the owner and with some of the employees are one of the approach to obtain
analysis. And these are the following “Can assist your management with
grow market share, Can allow you to make better informed decisions about your
strategy and ensure you can create sustainable competitive advantages and Can
After all the researches have been made, the final step of the feasibility
study comes to the Pro Forma Financial Statement. The term Pro Forma most
and/or satisfies minimum requirements. The pro forma statement presents the
over a certain period of time in the future. In utilizing a pro forma financial
11
statement is to specify revenue generating criteria that includes the proposed
Pro forma statements are used for a full range of financial analysis and
university press most often uses pro forma statements in connection with its
annual operating budget and long-term financial planning process. Budgets and
multi-year financial plans usually contain pro forma income statements and
balance sheets to summarize financial performance for given time periods and
particular emphasis on the projected cash flows, net revenues and (for taxable
12
forma figures should be clearly labelled as such and the reason for any deviation
collect data and information about their business will be used to conduct the
competition and site selection research. Features of the projected location site
research and a survey is conducted to the competitors and it includes the years
they have been in the business, their current buyers, quantity or products they
information needed for the study. The subjects of the study will be the
gives out the survey, stand by the selected subject and wait until
13
of themselves. The subject might choose or put higher quantity
2. Due to the fact that the researcher will stand by to wait until the
Instrumentation
Bearing in mind the factors for a useful business plan, Site selection
the competitors.
1. Address
5. Parking type
14
The questionnaire for the competitors is created by the researcher for the
sole purpose of the study. The questions are constructed to find out how many
years have they been in the business, who are their current buyers and how
for the lone purpose of the study. In the first two questions ( question 1-2 ), it
design to find out if they were one of the buyers of the product and for what
purpose did they buy the product. Questions 3-6 are for the researchers to know
who are the suppliers of their product, how frequent they buy and the
competitor’s price. Questions 7-8 focus whether they were satisfied with their
supplier and how many establishments would patronize the proposed product.
The collection data was collected through a period of one week from
August 3 to August 9. The site visits are made to collect information such as site
Competitors’ data was collected through a three (3) days period from
August 19. Data was collected by having a response to the questionnaires being
15
Demand survey was conducted through a ten (10) days period from
establishment is quite far from its point. The researcher explained to the selected
establishment that they were asked to do a survey, that the survey would be
done as completion of her research paper and their response would be kept
Data Analysis
statistics analysis will be made to find out the consumer spending pattern and
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CHAPTER IV
analysis, site selection and consumer spending pattern and market area potential
research.
There are around two dried mango and mango juice manufacturing
company in Davao area ( Appendix 3 for the competitor’s profile ), were both of
them has a location not accessible to the customer. The two competitors both
have built good reputation to its customers. Both company offers domestic and
The competition analysis will look at a wide range of aspects such as the taste
and quality of the product, the location and its wholesale price.
From the information collected, it can be found that PFIC is the most
competitive among the competitors. Since almost half of the local demands in
Davao area were ordered from their company. Other manufacturing company
doesn’t offer the same taste and quality among the customers and the location is
not convenient.
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Site Selection Result
Applying the site selection criteria checklist on the proposed site, the
researcher found out the following facts concerning the site. First is the site
address where it is located at Poblacion Uno, Bansalan, Davao del Sur. Second
is the features of the site including the total area of the space that will be rented,
distance from the highway, type of energy available, availability of raw materials
The total size of the space to be rented is 375 square meters. The
distance from the highway is 3 meters away, while the distance from the national
highway is 25 meters away. The type of energy available in the building is the
electricity and water, bills for the said energy is being paid by the occupant of the
space where it has their own measuring device, the offering rental fee is thirty
five thousand pesos per month and it is negotiable. The site also is a few
kilometres away from its source of raw materials which is the mango.
The establishment plan approval includes the BIR and the business
permit. The proposed site meets the approval of the researcher which it is the
am- 3:00 pm through a ten (10) day period from September 7- September 16 and
altogether, the 200 questionnaires were distributed and returned. The following
paragraphs will analyze the results of the survey and seek out the implication of
18
the results. For dried mango, as discussed in the instrumentation paragraphs,
which is the question number1 and 2, is design to find out if they were one of the
buyers of the said product and for what purpose did they bought it.
In Table 1, it can be seen that 59% of the respondents answered “yes”, they buy
dried mangoes and 41 percent answered no. This question helps the researcher
to know his potential customers and to see whether his proposed project is
common in the market.
In table 2 the question is “If yes, for what purpose?”, 41 out of 41 answered for
“selling”. The remaining 59% are those who answered no on the first question.
Percen
Cumulative
Frequency t
Percent (%)
(%)
Consumption 0 0 0
Selling 41 41 100
Pasalubong 0 0 In question 3,
Total 100 100 100
which is
“Where do you usually purchase dried mango?”, 41 out of 41 who answered Yes
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from the first question purchased dried mango from Davao. The question helps
Percent
Frequency Cumulative Percent (%)
(%)
From Davao 41 41 100
From Digos 0 0
From Cebu 0 0
Total 100 100
In Table 4, it seeks to know how frequent they ordered the product from its
answered once a month. 59% are those who answered no on the first question.
20
In Table 5, it seeks to find out an average of how many packs of dried mangoes
did they usually purchase in a month. 30% answered 100 packs, 4 % answered
200 packs and 7% answered 250 packs. Mostly, pasalubong centers has a huge
In Table 6, it seeks to know the range of prices which the consumer buys from its
supplier. 1% of them bought the product from a price ranging from Php 51-75,
30% is Php 76-100 and 10% bought the product from a price ranging from Php
101-150.
21
Table 6. Price of dried mango being purchased by the respondents
Percen Cumulative
Frequency
t (%) Percent (%)
Php 51-75 1 1 2
Php 76-100 30 30 75
Php 101-150 10 10 100
Total 100 100 100
In Table 7,it can be seen that most of the respondents were satisfied with the
Table 7. Number of respondents who are contented with the quality of the
product they are buying
Percent
Frequency Cumulative Percent (%)
(%)
Yes 38 38 93
No 3 3 100
Missing 59 59
Total 100 100 100
In Table 8, “If ever Shine Dried Mango will be realized, will you patronize the
product?”, 74% answered Yes and 26 % answered No. Most of them answered
yes because they won’t travel anymore to Davao just to buy the product for their
stores.
22
Table 8. Number of respondents who will patronize the proposed product
Frequenc Percent Cumulative
y (%) Percent (%)
Yes 74 74 74
No 26 26 100
Total 101 100
question number1 and 2, is design to find out if they were one of the buyers of
the said product and for what purpose did they bought it. The result can be seen
In Table 9, it can be seen that 88% answered Yes and 12% answered no. This
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In table 10, the question is “If yes, for what purpose?”, 88 out of 88 answered
“selling”. The remaining 12% are those who answered “no” on the first question
In Table 11, it can be seen that 54% preferred to buy mango juice in tetra-pack,
Table 11. The packaging of mango juice usually buy by the respondents
Percen
Cumulative
Frequency t
Percent (%)
(%)
Tetra-pack 54 54 61
Plastic
26 26 91 In Table 12,
Bottles
Bottles 8 8 100
Total 100 100 100 which is
“Where do you usually purchase mango juice?”, 74% answered from Davao and
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14 % from Digos. The question helps the researcher to know the location of its
competitor
Table 12. Location where dried mango usually bought by the respondents
Percen
Cumulative
Frequency t
Percent (%)
(%)
From Davao 74 74 84
From Cebu 14 14 100
From Digos 0 0
Total 100 100 100 In Table 13, it
seeks to find out how often they purchase a product. 7% answered once a week,
month. 8% answered 200, 42% answered 300 and 38% answered 400.
Table 14. The average packs/bottles of mango juice usually buy by the
respondents in a month
25
Percen
Cumulative
Frequency t
Percent (%)
(%)
200 8 8 9
300 42 42 57 In Table 15, it
400 38 38 100
Missing 12 12 seeks to know
Total 100 100 100
the range of
price per pack/bottle of mango juice they purchased. 76% answered Php 5-10,
Table 15. Price per pack of mango juice usually buy by the respondents
Percent
Frequency Cumulative Percent (%)
(%)
Php 5-10 76 76 86
Php 11-15 10 10 98
if the consumers were satisfied with the quality and taste of product they are
26
Missing 12 12
Total 100 100 100
In Table 17, it can be seen that most of the respondents answered yes. They will
patronize the product since the location of their supplier will be very convenient
Marketing Aspects
Dried mango is a true tropical delight. This treat lets you enjoy the
establishment who sell dried mango and mango juice . The researcher
27
derived its demand by giving questionnaires and personal interviews to
the owner of different establishment who sell dried mango and mango
juice.
2015 121
2016 129
2017 136
2018 144
2019 152
Table 20 shows the projected demand of dried mangoes in Digos City and
patronize the product. To get the projected demand of dried mangoes, multiply its
28
average consumption (179 kilo per week) by 74% of its projected population and
Table 20. Projected Demand of dried Mangoes for the next five years.
Table 21 shows the supply of dried mangoes for the past five years. The supply
increases as years goes by. The statistical method was used to compute the
projection.
Table 21. Supply of Dried Mangoes for the past five years
2010 46,000
2011 51,500
2012 53,000
2013 56,800
2014 57,600
29
Table 22 shows the projected supply of dried mangoes for the next five years.
The supply increases as years goes by. The statistical method was used to
Table 22. Projected Supply of Dried Mangoes for the next five years
2015 61,530
2016 64,380
2017 67,230
2018 70,080
2019 72,930
Table 23 shows the projected demand of mango juice in Digos City and
Bansalan based on the survey conducted. Out of 100 respondents, 91% agreed
to patronize the product. To get the projected demand of mango juice, multiply
Table 23. Projected Demand of Mango Juice for the next five years
Year Population 91% of the Annual demand of
total population mango juice (in litres)
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E. Supply Analysis for Mango Juice
Table 24 shows the supply of mango juice for the past five years. The
Table 24. Supply of Mango Juice for the past five years
2010 62,400
2011 74,880
2012 93,600
2013 99,840
2014 106,080
Table 25 shows the projected supply of mango juice for the next five
years. The supply increases as the years goes by. The statistical straight line
Table 25. Projected Supply of Mango Juice for the next five years
2015 121,056
2016 132,288
2017 143,520
2018 154,752
2019 165,984
31
Table 26 shows the projected demand, supply and gap of Mango
Juice in the area of Digos City and Bansalan for the next five years. The
gap increases as the years goes by. The demand per week will be
multiplied into 52 weeks to get the final demand for the product.
Table 26. Projected Demand, Supply and Gap for Dried Mangoes
Table 27 shows the projected gap and market share of dried mangoes,
the statistical straight line method was used to compute the projection. The
projected share of 45,500 kilos per year, pack in 250 grams, operates 5 days a
week and 52 weeks in a year. For the projected demand and supply, the project
will attempt to fill up the unsatisfied demand for the next five years from 2015-
2019. It is expected that the demand for the product will increase in the next five
years of operation.
Table 27. Projected Gap and Market Share for Dried Mangoes
Year Gap (Kg) Market Share (Kg) Percent Market Share (%)
32
2015 766,882 45,500 5.93
2016 819,880 45,500 5.54
2017 863,570 45,500 5.26
2018 916,562 45,500 4.96
2019 969,566 45,500 4.69
Table 28 shows the projected demand, supply and gap of mango juice in
the area of Digos City and Bansalan for the next five years. The gap increases as
the year goes by. The demand per week will be multiplied into 52 weeks to get
Year Demand (in litres) Supply (in litres) Gap (in litres)
2015 1,495,221 121,056 1,374,165
2016 1,580,662 132,288 1,448,374
2017 1,666,103 143,520 1,448,374
2018 1,737,304 154,752 1,582,552
2019 1,836,985 165,984 1,671,001
Table 29 shows the projected gap and market share of mango juice, the
statistical straight line method was used to compute the projection. The projected
share of 31,200 litres per year is based on the capacity of the plant, which will
produce 120 litres daily and pack in 200 ml. , operates 5 days a week and 52
weeks in a year. For the projected demand and supply, the project will attempt to
fill up the unsatisfied demand for the next five years from 2015-2019. It is
expected that the demand for the product will increase in the next five years of
operation.
Table 29. Projected Gap and Market Share for Mango Juice.
33
Year Gap (in litres) Market Share (in litres) Percent Market Share%
Table 30 and 31 shows the projected sales volume and peso sales of dried
mangoes and mango juice. To get the projected sales volume, multiply its
market share by 4 since the product is 250 grams per pack. For the projected
peso sales, the price of the product will be multiplied by its projected sales
volume.
Table 30. Projected Sales Volume and Peso Sales for Dried Mango
34
Table 31. Projected Sales Volume and Peso Sales for Mango Juice
1. Target Market
2. Proposed Product
35
3. Proposed Promotional Activities
4. Placement
The proposed project will be using the direct and indirect channel of
distribution. The products are sold directly from the producers to the
company vehicle.
5. Selling Price
The selling price of the proposed project will be Php 95 for every
250 grams of dried mangoes and Php 5 for every 200 mL of mango
factors:
36
Increased cost of electricity
Management Aspects
Organizational structure
Manager
1. Manager
37
- The manager/cashier is responsible of the customer and responsible
for the records of all the payments made and balances and cost and
Qualifications
2. Production Workers
product.
Qualifications
3. Secretary
38
Qualifications
4. Security Guard
` Qualifications
Technical Aspect
39
Sorting- mangoes are sorted according to size and maturity. It will then be
40
Time per process: 5-8 mins.
sugar, it will then be put in a large trays to make them ready for dehydration
process
Loading- packed dried mangoes are placed into the delivery trucks and is now
ready to be delivered
Sorting- mangoes are sorted according to size and maturity. It will then be
42
Mixing- sliced mangoes are mixed with citric acid and sugar
Filling into Tetra-packs- mango juice will be packed 200 mL per tetra-packs
Manufacturing Processes
weighed; sample and labelled, also primarily sorting should be done at this stage.
Mangoes are sorted according to size and maturity. Mangoes to be dried must be
carefully selected. It will then be washed manually and blanched either with hot
or live stream. Sorting and grading is the next step and to be followed by peeling
sugaring follows. Cut pieces of mango are soaked in syrup or sugar, it will then
43
be put in a large trays to make them ready for dehydration process and to
heating and storage which is the used for producing mango juice itself. The pulp
is blended with citric acid and sterilized water. After pasteurization, the juice is
hot-filled into tetra-packs. The container is sealed and put in a water bath. This
process can further lengthen the shelf life of the juice. A hydro cooling is done.
The proposed project will operate 5 days a week for 8 hours. Workers will
work 20 days a month, 260 days a year or 52 weeks a year. The production will
depend on the quantity or stock of mangoes and other materials. It has a rated
capacity of 200 kilos per day for dried mangoes and 120 per day for mango juice.
The plat has a dimension of 15 x 25 meters. Operation will start at 8:00 in the
morning and will end at 5:00 in the afternoon. The proponent will have an initial
capacity of 52,000 kg. that will increase every year. Electricity and water bills will
be paid by the occupant of the space where it has their own measuring device,
the offering rental fee is thirty five thousand pesos per month and it is still
negotiable. The site also is a few kilometres away from its source of raw
44
The main source of mango is situated in Bansalan. Sugar, sulphur dioxide
and citric acid will be delivered by the supplier. The plant will designate garbage
area wherein wastes of the plant will be temporarily placed. These wastes such
as mango seeds, skins and plastics will be collected by the garbage trucks of
The project will be a great help to the community and the people residing
the area. The government will be benefited by this project because they will pay
necessary permit and taxes to them. It will also serves as an opportunity to those
unemployed individual nearby. In return, those individual will also pay their
CHAPTER V
FINANCIAL ASPECT
This chapter discusses the project cost, project administrative cost, utility
cost, operating cost depreciation cost, projected income statement, cash inflow
and outflow, and the projected balance sheet. It also presents the computation
45
for the return on investment, return on equity, payback period and benefit cost
Table 32 shows that the total project cost summed up to Php 4,032,546
which includes the total fixed asset amounting to Php 3,282,546 adding the total
operating capital amounting to Php 750,000.
46
Based on the survey result, price for dried mango on its first year of
operation is 95 pesos. Mango juice has an initial price of 5 pesos and both
= 9750 x 104.99
47
Monthly Revenue: 862,680
Assumptions are made in this study. Salary and benefits of the personnel
5% annually. Cost of sales and service (direct materials and direct labor) will also
years and furniture and fixtures is for ten (10) years. Computation of tax is based
sales and service, administrative expenses, operating expenses from the total
48
Total Account receivable per Month: Php 95
Projected Expenses:
Table 34 shows the payback period of the cash investment. The projected
payback period of the project is derived by dividing the total investment with the
period is four
months and nine days. This means that the investment will be recovered after
49
Net Cash Flow
Investment Period
After Tax
0
5 4,032,546.00 2,114,411.96 1.90
Major Assumptions
Total Sales
Table 35 and 36 shows the total sales for dried mango and mango juice.
In the first year of production for dried mango, the total is Php11,115,000, in the
second year is Php 11,115,000., in the third year is 12,254,580, in the fourth
and in the fifth year of production is Php 13,511,160. For mango juice, first year
of production, the total is Php 780,000, in the second year is Php 819,000, in the
third year is Php 859,950, in the fourth year is Php 902,538 and in the fifth year
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Table 35. Total Sales for Dried Mango
Year 1 (Php) Year 2 (Php) Year 3 (Php) Year 4 (Php) Year 5 (Php)
Sales 11,115,000 11,670,750 12,254,580 12,867,660 13,511,160
Total 11,115,000 11,670,750 12,254,580 12,867,660 13,511,160
Year 1 (Php) Year 2 (Php) Year 3 (Php) Year 4 (Php) Year 5 (Php)
Sales 780,000 819,000 859,000 902,000 948,000
Total 780,000 819,000 859,000 902,000 948,000
The proposed project will require a set of facilities for the operation of the
business. Table 37 shows the furniture and fixtures needed for the project with
basis.
Quantity Unit Description Unit Cost (Php) Total Unit Cost (Php)
51
10 pcs Seats 350 3500
5 pcs Faucets 88 440
5 pcs Sinks 748 3740
3 pcs Bathroom Suites 966 2898
2 pcs Bookshelves 999 1098
Table 38 shows the list of utensils and supplies that is needed to the proposed
corresponding price.
52
Item Quantity Rated Unit Total
Cost
Capacity (Php)
Drying Machine 2 pieces 4Hp 1,000,000 2,000,000
Sealing Machine 1 piece 1 Hp 120,000 120,000
Pasteurizer Machine 1 piece 4 Hp 115,000 115,000
Generator 1 piece 45,000 45,000
Weighing scale (big) 1 piece 12,000 12,000
Weighing scale (small) 1 piece 2,000 2,000
Kettle 2 pieces 84,420 168,840
Gas stove burner 2 pieces 2,800 5,600
Delivery truck 1 piece 750,000 750,000
Table 40 shows the labor requirements for the business for the manager
or cashier Php.8, 500.00 is their monthly salary, for the production workers,
security guard and driver is Php. 7, 000.00 each, secretary will get Php 7,500 per
month and their Benefit will be 10% of their monthly salary and for the 13 th month
53
Security 1 7,000 700 7,000
Guard
Driver 1 7,000 700 7,000
Total 12 37,000 3,700 37,000
Table 41 shows the direct labor expense annually in first year of operation is Php
the third year of the operation, Php 2,794,506.75 in the fourth year of the
(DASURECO) and Bansalan Water District for the water supply. The estimated
monthly cost for the electricity and water is shown on Table 40.
Consuming
Consumption Per Month Consumptions Total (Php)
Month
Electricity 12 36,000 432,000
Water 12 2,700 32,400
Total 38,700 464,400
54
Table 43 shows the list of the raw materials needed for the operation with
their corresponding amount and the estimated cost for five years of operation.
Table 44 shows the total projected cost for the five years of the operation.
Account Title Year 1 (Php) Year 2 (Php) Year 3 (Php) Year 4 (Php) Year 5 (Php)
55
7
2,794,506. 2,934,232.
Direct Labor 2,414,000 2,534,700 2,661,435
75 08
Overhead Cost
464,000 487,200 511,560 537,138 563,994.9
Expense
10,349,950.4
Total 8,514,930 8,940,676.5 9,387,307.3 9,857,095.75
5
Table 45 shows the five years projected administrative costs which in year
Promotions and
5,000 5,250 5,512.50 5,788.1 6,077.5
Advertisement
56
Permits and
4,000 4,200 4,410 4,630.5 4,862.0
Licences
Building
6,000 6,300 6,615 6,945.7 7,293
Maintenance
Operating Expense
Table 46 shows the total projected operating cost. In the first year of the
operation is Php 8,949,930, in the second year is Php 8,949,930 , in the third
year is Php 8,949,930, in the fourth year of the operation is Php 10,360,662.55,
Account
Year 1 (Php) Year 2 (Php) Year 3 (Php) Year 4 (Php) Year 5 (Php)
Title
Cost of
Services 8,514,930 8,940,676.5 9,387,307.3 9,857,095.75 10,349,950.45
Sold
57
Selling
and Adm. 435,000 456,750 479,587.5 503,566.8 528,745.1
Cost
Depreciation Schedule
equipment is depreciated for ten (10) years, furniture and fixtures is for five (5)
58
Table 47. Depreciation Schedule
Estimated Annual
Actual Salvage
Item Life in Depreciation Cost
Value (Php) Value (Php)
Years (Php)
Furniture and
22,636 2,263.6 5 4,074.48
Fixtures
Machines and
3,218,440 321,844 10 289,659.6
Equipment
Utensils and
41,470 4,147 1 37,323
Supplies
Total 3,328,546 328,254.6 331,057.08
Table 48 shows the projected income statement for the next five years of
59
Table 48. Projected Income Statement
10,349,950.4
Less: Cost of Goods sold 8,514,930 8,940,676.5 9,387,307.3 9,857,095.75
5
Sel. and Adm. Cost 435,000 456,750 479,587.5 503,566.8 528,745.1
331,057.0 331,057.0
Dep. Cost 331,057.08 331,057.08 331,057.08
8 8
10,197,951.8 10,691,719.6
Total Expenses 9,280,987.08 9,728,483.58 11,209,752.63
8 3
Table 49 shows the projected cash flow for the next five years of the
Pre- Year 1
Account Title Year 2 (Php) Year 3 (Php) Year 4 (Php) Year 5 (Php)
operating (Php)
60
Cash Inflows
Equity Cash 4,032,546.00
Revenue 11,895,500.00 12,489,750.00 13,114,530.00 13,770,198.00 14,459,640.00
Cash Outflows
Fixed Assets 3,282,546.00
Cost of Goods
Sold
8,514,930.00 8,940,676.50 9,387,307.30 9,857,095.75 10,349,950.45
Sel. and Adm.
435,000.00 456,000.00 479,587.50 503,566.80 528,745.00
Cost
Income Tax 710,544.13 757,605.25 807,304.99 859,113.07
Total Cash
3,282,546.00 8,949,930.00 10,107,220.63 10,624,500.05 11,167,967.54 11,737,808.52
Outflow
Net Cash
750,000.00 2,945,570.00 2,382,529.37 2,490,029.95 2,602,230.46 2,721,831.48
Inflows
Add: Cash Beg. 750,000.00 3,695,570.00 6,078,099.37 8,568,129.32 11,170,359.78
Cash Balance
750,000.00 3,695,570.00 6,078,099.37 8,568,129.32 11,170,359.78 13,892,191.26
End
Table 50 shows the projected balance sheet this shows if the operation
Pre-
Account Title Year 1 (Php) Year 2 (Php) Year 3 (Php) Year 4 (Php) Year 5 (Php)
operating
Assets
61
Current Assets
Operating
750,000.00 3,695,570.00 6,078,099.37 8,568,129.32 11,170,359.78 13,892,191.26
Cash
Current Assets 750,000.00 3,695,570.00 6,078,099.37 8,568,129.32 11,170,359.78 13,892,191.26
Machines and
3,218,440.00 3,218,440.00 3,218,440.00 3,218,440.00 3,218,440.00 3,218,440.00
Equipment
Less: Acc.
289,659.60 579,319.20 868,978.80 1,158,638.40 1,448,298.00
Dep.
Subtotal 3,218,440.00 2,928,780.40 2,639,120.80 2,349,461.20 2,059,801.60 1,770,142.00
Fur. and Fix. 22,636.00 22,636.00 22,636.00 22,636.00 22,636.00 22,636.00
Less: Acc.
4,074.48 8,148.96 12,223.44 16,297.92 20,372.40
Dep.
Subtotal 22,636.00 18,561.52 14,487.04 10,412.56 6,338.08 2,263.60
Utensils and
41,470.00 41,470.00 41,470.00 41,470.00 41,470.00 41,470.00
Supplies
Less: Acc. Dep 37,323.00 74,646.00 111,969.00 149,292.00
Subtotal 41,470.00 4,147.00 -33,176.00 -70,499.00 -107,822.00 41,470.00
Sub. Prop.
3,282,546.00 2,951,488.92 2,620,431.84 2,289,374.76 1,958,317.68 1,813,875.60
And Equip.
Total Assets 4,032,546.00 6,647,058.92 8,698,531.21 10,857,504.08 13,128,677.46 15,706,066.86
Liab. And
Own. Equit.
Current
Liabilities
Inc. Tax.
710,544.13 757,605.25 807,304.99 859,113.07 913,995.95
Payable
Current
710,544.13 757,605.25 807,304.99 859,113.07 913,995.95
Liabilities
Owner's Equity
Equity Beg. 4,032,546.00 4,032,546.00 5,936,514.79 7,940,925.96 10,050,199.09 12,269,564.39
Add: Net
1,903,968.79 2,003,661.17 2,109,273.13 2,219,265.30 2,335,891.42
Income
Total Owner's
5,936,514.79 7,940,175.96 10,050,199.09 12,269,464.39 14,605,455.81
Equity
Total Liab.
6,647,058.92 8,698,531.21 10,857,504.08 13,128,677.46 15,706,066.86
And Equity
62
Table 51 shows the projected income statement this shows the total tax
Profitability Analysis
63
Table 52 shows the financial analysis of the proposed project for the first
the first year, 46.69% for the second year, 52.30% for the third year, 55.03% for
the fourth year and 57.92% for the fifth year. The return on equity is projected to
be 32.07% for the first year 25.23% for the second year 20.98% for the third
year, 18.08% for the fourth year and 15.99% for the fifth year.
Table 53 shows the benefit cost ratio for the first five years of the
business.
CHAPTER VI
64
Summary
up a Dried Mango and Mango Juice Production at Bansalan, Davao del Sur was
carefully analyzed the different aspects of starting any business. It includes the
and finally the financial aspect of the proposed project. The research came to the
The market area of the proposed business is identified as the whole Digos
Conclusion
The proponent analyzed the different aspects of putting Dried Mango and
competitor’s analysis, site evaluation and the financial statement. The researcher
In table 2 and 10, it clearly emphasize that most of the buyers of the
product were retailers/wholesalers since its purpose of buying is for selling. They
usually purchase the product at Davao City to avail lesser price. The site is 375
square meters at Poblacion Uno, Bansalan, Davao del Sur. Type of energy
65
available is electricity and water supply, the area is very accessible and the
offering rental fee is Php 35,000 per month. Lastly, is the approval plan, this
feature of the proposed Dried Mango and Mango Juice Production. Based on the
prices of the products, the initial price of dried mango will be Php 95 and Php 5
for mango juice. Operation hour is from 8:00am- 5:00pm and will open 5 days a
It is estimated that the earning before tax is Php 1,023,652 monthly for the
first year of operation. The payback period of the proposed project is 2 months
and 3 days of operation. It shows that the operation will be recovered in a year of
operation.
BIBLIOGRAPHY
66
Kumar, Kirti and Baju, Malik (1998), The Benefits of Mangoes. Retrieved on
/mango.html.
Siao, Yulin (1900), Investment and Money. Retrieved on September 9,2011 from
http:sanko.com/.
Tirtha, Sakar (1998), Amazing Facts in Foods. Retrieved on June 17, 2012 from
http://www.fedupwithfoodadditives.info/factsheets/driedfruit.
Wiley, Shawn (2014), Global Competitions. Retrieved on March 30, 2013 from
http://www.competitionsanddemand/meetup/relevance.info/global
67
APPENDICES
Appendix A
Highway
68
4. Visibility from the Major - Thirty meters (25 m)
Highway
area
Month
Plan Approval
Appendix B
Competitors Profile
PFIC MFIC
69
Number of years in the
5 years 4 years
Business
Clean, Clean,
Atmosphere Bright Bright,
Attractive Attractive
PFIC MFIC
70
Number of orders per 20,000 tetra-pack per 5,000 tetra-pack
Month month per month
Clean, Clean,
Atmosphere Bright Bright,
Attractive Attractive
Appendix C
71
Supply Survey Questionnaire
Name: Date:
Address:
Note: Please give your best answer to the following question. All answers are considered right
and shall be held confidential.
Signature: ________________
Name: Date:
Address:
72
Note: Please give your best answer to the following question. All answers are
considered right and shall be held confidential.
Appendix D
73
Demand Survey Questionnaire
Name: Date:
Address:
Note: Please give your honest answer to the following question. All answers are considered right
and shall be held confidential.
Signature:
________________
74
Name: Date:
Address:
Note: Please give your honest answer to the following question. All answers are considered right
and shall be held confidential.
Signature:
________________
Appendix E
Communication Letter
75
August 13, 2015
_____________
_____________
Sir/Madam:
Greetings of peace and prosperity!
I, Derren Ivy Shine Veňigas, a fifth year student of Bachelor of Science in
Industrial Engineering of the University of Southern Mindanao Kidapawan City
Campus, College of Industry and Technology, is currently having my Feasibility
Study entitled, “Shine Dried Mango & Mango Juice Production”.
I have chosen your company as one of my sources of data. Any information that
your company could give, will do a lot towards the accomplishment of my study.
Please allow me to administer a question for this study in your company. Rest
assured that all information you will give will be kept confidential.
I am hoping for your positive response with this matter.
Thank you and more power!
Respectfully yours,
A. Personal Data
C. Affiliations
ORGANIZATIONS:
Philippine Institute of Industrial Engineers S.Y. 2011-2016
(PIIE) Member
Working Youth Club (WYC) Member S.Y. 2014-2015
77
DERREN IVY SHINE VEŇIGAS
78