FINANCIAL PLAN

Binangonan Funeral Services is located at Darangan Binangonan, Rizal but

its services are open to all households in any part of Binangonan. The household

population in Binangonan Rizal is 69,786 as stated in the www.PhilAtlas.com.

Despite the huge population, only 15% of the population were the target market

size of the business as 80% of the population were loyal customers of the business’

competitors. On the other hand, Binangonan Funeral Services has no specific

number of customers everyday but the estimated average number of service units

that Binangonan Funeral Services can produce for a month is eight units. As stated

in the service production cost of the paper, the selling price per unit of the service

is 32, 009. 54 Pesos. Therefore, in order to get the market size of the business,

the variables needed are the following:

• Total population in Binangonan, Rizal = 69,786

• Estimated average number of services that Binangonan Funeral Services

can produce for a month =8

• Selling price per unit = 32, 009. 54 Pesos

Computation for Market Size:

Total Population x Service Produced/ Year x Selling Price per Unit

Step 1: 8 x 12 (months) = 96 (Annual Estimated Services)

Step 2: 69, 786 x 96 x 32, 009. 54 Pesos = 214, 446, 504, 810

Therefore, the total market size is 214, 446, 504, 810.

 The previously specified total market size is not yet final because the

percentage of loyal clients or customers from the business’ competitors will be

deducted from its count to get the remaining market size where Binangonan

Funeral Services will get its target market size. Binangonan Funeral Services has

nine (9) business competitors within Binangonan led by St. Peter Chapels covering

almost the 20% of the total market size, which is 42, 889, 300, 962. The eight

remaining business competitors equally occupy 7.5% of the market size, which

make up the 60% of the total market size. Overall, 80% of the total market size,

which is 171, 557, 203, 848 was covered by the business competitors. The

remaining market size is 20% and the target market size of Binangonan Funeral

Services is 15% from it, which totals in 32, 116, 975, 721.

Step 3: Deduction of competitors’ market size. (80%)

: 214, 446, 504, 810 x .80 = 171, 557, 203, 848

: 214, 446, 504, 810 - 171, 557, 203, 848 = 42, 889, 300, 962

Therefore, the remaining market size is 42, 889, 300, 962 (20%).

Step 4: Binangonan Funeral Services’ target market size. (15%)

: 42, 889, 300, 962 x .15 = 6, 433, 395, 144. 3

Therefore, the total market size of Binangonan Funeral Services is 6, 433, 395,

144. 3. Binangonan Funeral Services projects 5% growth in the year 2026 and

10% growth in the year 2027. The table below shows the sales forecast of the

business for the year 2026 to 2027.

 Binangonan Funeral Services

SALES FORECAST

Year 2026 – 2027

2026 2027

6, 755, 064, 901. 52 7, 430, 571, 391. 67

Total Sales Forecast Pesos Pesos

Sales Forecast Computation:

Year 2026 (5% growth)

: 6, 433, 395, 144. 3 x .05 = 321, 669, 757. 215

: 6, 433, 395, 144. 3 + 321, 669, 757. 215 = 6, 755, 064, 901. 52 Pesos

Year 2027 (10% growth)

: 6, 755, 064, 901. 52 x .10 = 675, 506, 490. 152

: 6, 755, 064, 901. 52 + 675, 506, 490. 152 = 7, 430, 571, 391. 67 Pesos
 Binangonan Funeral Services

PROJECTED STATEMENT OF COMPREHENSIVE INCOME

Year 2026

Sales Revenue: 6, 755, 064, 901. 52 Pesos

Cost of Sale: 307, 291, 584 Pesos

Gross Profit: 6, 751, 991, 986 Pesos

Operating Expenses: 2, 194, 940. 04 Pesos

Net Income Before Tax: 6, 749, 797, 045. 96 Pesos

Income Tax: 1, 012, 798, 797. 9 Pesos

Net Income After Tax: 5, 736, 998, 248 Pesos

The sales revenue was from the total sales forecast calculated in the prior

part of the financial plan, which is 6, 755, 064, 901. 52 Pesos. The cost of sale and

the operating expenses were all based on the production cost calculated before

the financial plan. In cost of sale, the service production cost per unit, which is 22,

863. 96 was multiplied and calculated into its annual total amount resulting to 307,

291, 584 Pesos. On the other hand, the operating expenses were all based on the

expenses shown in the production cost (from variable and fixed cost) such as the

salary expenses, utilities expenses, and the other necessary expenses for funeral

services summing up into its annual calculation, which is 2, 194, 940. 04 Pesos.
The income tax was from the 15% of the gross profit calculated above. The gross

profit was from the deduction of sales and cost of sales resulting in the total amount

of 6, 751, 991, 986 Pesos. The net income before tax was also deducted from the

gross profit and operating expenses which total 6, 749, 797, 045. 96 Pesos and

lastly, the net income after tax was the result when the income tax was deducted

from the net income before tax.

Binangonan Funeral Services

PROJECTED STATEMENT OF COMPREHENSIVE INCOME

Year 2027

Sales Revenue: 7, 430, 571, 391. 67 Pesos

Cost of Sale: 338, 020, 742. 40 Pesos

Gross Profit: 7, 092, 550, 649 Pesos

Operating Expenses: 2, 414, 434. 044 Pesos

Net Income Before Tax: 7, 090, 136, 215 Pesos

Income Tax: 1, 114, 585, 708. 75 Pesos

Net Income After Tax: 5, 975, 550, 506 Pesos

 The sales revenue for the year of 2027 is 7, 430, 571, 391. 67 Pesos

increased 10% higher from the prior year. The cost of sales and the operating

expenses were all based on the production cost calculated before the financial

plan as well. In cost of sale, the service production cost per unit is 22, 863. 96 was

multiplied and calculated into its annual amount resulting to 307, 291, 584 Pesos

and was also increased 10% higher making it 338, 020, 742. 40 Pesos. The gross

profit was the result from the deduction of cost of sale from the sales revenue. The

operating expenses were all also based on the expenses shown in the production

cost (from variable and fixed cost) such as the salary expenses, utilities expenses,

and the other necessary expenses for funeral services and was 10% higher from

the year 2026 summing up into its annual calculation, which is 2, 414, 434. 044

Pesos. The income tax was from the 15% of the gross profit calculated above

resulting to 1, 114, 585, 708. 75 Pesos. The net income before tax was also

deducted from the gross profit and operating expenses which total 7, 090, 136,

215 Pesos. At last, the net income after tax was the result of when the income tax

was deducted from the net income before tax coming up into the total number of

5, 975, 550, 506 Pesos.

.
 EXECUTIVE SUMMARY

The "BINANGONAN FUNERAL SERVICES, The Way to Paradise, is a

business that aims to provide customers with high-quality funeral services. This

business services include a complete package of funeral necessities, allowing

customers to have more quality and convenient funeral services for their family,

particularly for their loved ones who have died. One of the most important issues

that this company is focusing on is the embalming procedure, which is an inter

procedure used to keep the deceased's bodies from decaying. This business

additionally offers other funeral necessities such as flower arrangements, funeral

backdrops such as lights, food and drinks for guests who will visit at the wake

(kutkutins), ordinary and elegant funeral cars, funeral appliances such as water

dispensers, tables and chairs, chapels for the event of funeral wake, video

presentations to remember and honor the deceased individual, and cremation

services depending on the family 's wants and needs. This type of product is

offered by the business for the benefit of the deceased individual's family. This

business considers not only the money to be made, but also the families left behind

by the deceased person. Providing package services benefits the deceased

individual family's convenience and can also reduce their emotional and physical

stresses.

The BINANGONAN FUNERAL SERVICES, The Way to Paradise will be

located on Manila East Road, Barangay Darangan, Binangonan, Rizal near the

Rizal Provincial Hospital System, Binangonan Annex and the main goal of the

business was to get customers from the mentioned hospital and offer services to
the people or the families of the deceased people who are not readily prepared for

the death of their loved ones to purchase and access funeral package services on

this business. The Binangonan Funeral Services, The Way to Paradise has a direct

competitor on its location at Manila East Road, Barangay Darangan, Binangonan,

Rizal. The name of the business competitor is Jumil's Memorial Corporation.

The customers will be given an allotted enough time to complete their

payment for the funeral package service that they purchase. This ensures the

certainty of business income and profit. The startup Capital for this business will

leave no stone unturned in generating their funds rightly. This business is a

partnership business that will be owned by Mr. Carl Magsino and Ms. Jan Elaine

Tangonan. The total business capital needed to build this business will cost three

million pesos (3,000,000.00). 67% of the start – up capital will be from personal

savings of Mr. Carl Magsino (1,000,000.00 pesos) and Ms. Jan Elaine P.

Tangonan (1,000,000.00 pesos). The other 33% of the startup capital will be from

the Land Bank of the Philippines through business loan with one million pesos

(1,000,000.00).

The business will be operated by thirteen employees who are dedicated to

serving the people, from the production and service management to the highest

positions in the management. The professional employees who work for the

internal management of the business as well as the service and product manager

will receive a total of 470. 00 pesos per day. On the other hand, the employees

who work in service and production management will receive a total amount of
350. 00 pesos per day. All of the employees will receive benefits from SSS,

PhilHealth, and Pag-IBIG.

The Binangonan Funeral Services have no specific total number of services

to be produced as its services production will depend on the number of customers

that they will have in a certain period of time. The type of funeral business depends

on the number of customers who will undesirably need their service at a specific

time. This is because the service that this type of business offers has something

to do with the deaths of individuals in which the service will be executed. The

average number of customers of Binangonan Funeral Services each month ranges

from four to five customers, and eight is the highest. Despite this, the Binangonan

Funeral Services are still open to customers who are willing and desirable to take

a plan with the business services.

The processing plant of the business, or specifically the morgue, will be

located in the basement of the business’ establishment. It is located on the most

hidden part of the establishment to avoid its exposure to people. The Binangonan

Funeral Services purchases its funeral tools and equipment in one specific store

located in Manila, Philippines named "Funeral Necessities” that offers a 10%

discount on every product that Binangonan Funeral Services will purchase on

them.

The estimated cost of service production of the Binangonan Funeral

Services has the total amount of 32, 009. 54 Pesos. At last, the Binangonan

Funeral Services has an estimated net income after tax for the year 2026 that cost

5, 736, 998, 248 Pesos, and 5, 975, 550, 506 Pesos for the year 2027.