Food Last Draft FORMAT

BISLIG CITY’S COMFORT FOOD: A FEASIBILITY STUDY
________________________________________________________________
An Undergraduate Thesis
Presented to the Faculty of the
College of Business and Management
De La Salle John Bosco College
Mangagoy, Bislig City
___________________________________
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
____________________________________________________
By
Jonah Praise D. Fejo
Juvy Mae D. Tabugon
Marie Fhe B. Tariman
Ronnel T. Tan
April 2021
i
APPROVAL SHEET
This undergraduate thesis entitled: “BISLIG CITY’S COMFORT
FOOD: A FEASIBILITY STUDY”, prepared and submitted by Tabugon,
et al., in partial fulfillment of the requirements for the degree of Bachelor
of Science in Business Administration, has been examined and is
recommended for acceptance and approval of ORAL EXAMINATION.
MR. ROGELIO P. MIRA

Adviser
________________________________________________________________________
PANEL OF EXAMINERS
Approved by the Committee on Oral Examination with grade of _____.
MRS. RAQUEL L. BAUTISTA, CPA

Chairman
PHANDORA V. CUNAHAP, MBA. CORAZON R. MANGUBAT, Ed.D

Member Member
________________________________________________________________________
Accepted and approved in partial fulfillment of the requirements
for the degree of Bachelor of Science in Business Administration.
PHANDORA V. CUNAHAP, MBA

PIC – Business Management
ii
ACKNOWLEDGEMENT
First and foremost, praises and glory to God, the Father Almighty
who showered us with so much blessings that brought to the success of
this research.
This research study would not become a reality without the kind
support and help from many individuals. It is a pleasure to express our
deepest sense of thanks and gratitude to Sir Nico and Sir Roger P. Mira,
for his expertise that made the completion of this study possible.
We would also like to thank Mrs. Raquel Bautista, Mrs. Corazon R.
Mangubat, and Ms. Phandora V. Cunahap, for sitting as our panelists
and for taking their time, dedication, and interest who have helped us in
so many ways.
Finally, to our parents, who have been with us all throughout this
roller coaster journey of doing this research. Your prayers,
understanding, love, and sacrifices are our greatest motivation. You are
all appreciated. Our heartfelt thanks.

iii
DEDICATION
It is with genuine gratitude and warm regard that we dedicated this work to our
support system and source of our inspirations,
Charlito and Liza Tabugon,
Fe Tariman, Dina Hussein and Leonila Enriquez,
Jesus and Raquel Fejo,
Rowena Tion, Arnel and Owen Tan
And lastly, to Almighty God, the author and giver of
knowledge, strength, and wisdom who
made it possible. All of these,
are gift to thee.

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TABLE OF CONTENTS
Page
List Of Tables viii
List Of Figures x
Business Logo xi
Executive Summary xi
Chapter
1 Introduction
Vision 3
Mission 3
Goal 3
Business Description
SWOT Analysis 4
Product Description
Crab Meat Snacks FAB 5
Sweet Potato Chips FAB 5
Industry Analysis
Outlook and Trends 7

v
Competitor Analysis 8
Strategies for Competitive Advantage 8

Barriers to Prevent Exploiting the Firm’s Market 9
Opportunity that can be Exploited 9
Industry Forecast 9
Chapter
2 Marketing Study
A.1 Market Analysis 10
A.2 Market Condition

A.2.1 Demand 11
A. 2.2 Crab Season 12
A. 2.3 Supply 12
A. 2.4 Demand and Supply Gap 13
A. 2.5 Projected Sales Volume 14
A. 2.6 Crab Meat Snacks Packaging 15
A. 2.7 Crab Meat Snacks Packaging
16
A. 2.8 Best Before End Date 17
A. 2.9 Nutrition Fact 17
A.3 Marketing Mix
A. 3.1 Product 18
A.3.2 Price 20
A. 3.3 Promotion 21
vi
A. 3.4 Place 23
A.4 Target Market 24
A.5 Product Positioning 24
A.6 Market Segmentation 24
A.7 Marketing Strategies
a. Objectives 25
b. Channel Distribution 25
c. Opportunity Analysis 26
Chapter
3 Technical Aspect
B.1 Size of the Facility 27
B.2 Procedures
a. Crab Meat Snacks 30
b. Sweet Potato Chips 31
B.3 Process
a. Crab Meat Snacks 32
b. Sweet Potato Chips 33
B.4 Equipment and Tools Used 34
B.5 Waste Disposal 35
Chapter
4 Financial Aspect
vii
C.1 Financial Assumptions 36
C.2 Projected Production Cost 38
C.3 Total Project Cost 39
C.4 Initial Working Capital 41
C.5 Financial Statement
C.5.1 Income Statement 42
C.6 Cash Flow Statement 44
C.7 Statement of Changes in Partner’s Equity 46
C.8. Balance Sheet 48
C.9 Financial Analysis
C.9.1 Break-even Point 50
C.9.2 Capital Recovery 55
A. Cash Payback 55
B. Accounting Rate of Return
56
C. IRR and Net Present value 56
D. Liquidity Analysis 58
E. Solvency Analysis 59
C.9.3 Profitability Analysis 59
Chapter
5 Management Aspect
viii
D.1 Business Structure 64
D.2 Organizational Chart 64
D.3 Management Qualifications 65
D.4 Work Hours 69
D.5 Compensation 69
D.6 Internal Controls 70
Socio-Economic Aspect 72
Chapter
6 Summary, Conclusion, Recommendations 73
Bibliography 76
Appendices 78
ix
LIST OF TABLES
Table Page
1 Projected Demand of Comfort Food 12
2 Projected Supply of Comfort Food 13
3 Supply and Demand Gap
14
4 Projected Sales Volume 20
5. Price 17
6 Projected Production Cost 38
7 Projected Project Cost 39
8 Initial Working Capital 41
9 Income Statement 42
10 Statement of Cash Flow 44
11 Statement of Changes in Partner’s Equity 46
12 Balance Sheet 48
13 Break-even Volume 50
14 Cash Payback 55
15 Accounting Rate of Return 56
16 Net Present Value 56

x
17 Internal Rate of Return 58
18 Liquidity Ratio 58
19 Solvency Ratio 59
20 Profitability Ratio 59
21 Rate on Return on Sales 62
22 Asset Turnover 62
23 Return on Assets 64
24 Employees Compensation and Benefits 70

xi
LIST OF FIGURES
Figure Page
1 SWOT Analysis 4
2 Crab Meat Snacks FAB 5
3 Sweet Potato Chips FAB 5
4 Competitor’s Strengths and Weaknesses 8
5 Market Analysis 11
6 Proposed Crab Meat Snacks Packaging 15
7 Proposed Sweet Potato Chips Packaging 16
8 Nutrition Fact 17
9 Proposed Crab Meat Snacks Product 19
10 Proposed Sweet Potato Chips 20
11 Social Media Cover Page 22
12 Tarpaulin Layout 23
13 Market Segmentation of Comfort Food 24
14 Channel Distribution 26
15 Floor Plan 29
16 Process of Crab Meat Snacks 32

xii
17 Process of Sweet Potato Chips 34
18 Equipment and Tool Used 35
19 Organizational Chart 65
Good Food Brings A Good

Mood
xiii
EXECUTIVE SUMMARY
The proposed study was conducted to determine the feasibility
on the production of comfort food.
A. Name of the Project Proposal
The proposed study is entitled "Bislig City’s Comfort Food: A
Feasibility Study”
B. Location
The location of the proposed study will be at Picasales St.,
Mangagoy, Bislig City. It is near the Mangagoy, public market and thus,
this location is appropriate since it is one of the busiest places in the
locality.
C. Vision, Mission, and Goal
Vision
To be globally competitive and innovative crabs and chips
production that enhance wealth creation in CARAGA region.
Mission
xiv
To lead the way in utilizing crabs and chips production by
producing creative comfort food as an inclusive development in the
region.
Goal
Becoming the market leader.
D. Product Description
Crab Meat Snacks are whole, deep-fried eggs dipped in real
crab meat batter coated in bread crumbs.
Sweet Potato Chips are long and thin crunchy potatoes finely
seasoned served as finger foods or side dish.
E. Industry Analysis
The future of the food processing market looks promising with
opportunities. Businesses could keep up with the trends in the market
because of the innovation brought from the international comfort food of
Europe. The major drivers for this market are the increasing demand for
ready-to-eat foods and easy-to-cook products with an
estimated Php196.8 trillion by 2024 with a CAGR of 4.3% from 2019 to
2024. It can also be seen in our locality that people living in Bislig City
want an easy-to-cook products, as easy as heat-and-eat
F. Competitor Analysis
xv
It shows the strengths and weaknesses of the competitors and the
strategies that the proposed study can compete with its competitors.
Thus, the business will use different platforms and strategies for the
business to not be exploited. First is the consistency of the quality of the
product, second, is the excellent customer service, and third, the price
range that is fair enough between the firm and customers.
G. Marketing Aspect
The proposed business can supply only 22% of the total demand.
Both indirect and direct channels of distribution will be used wherein the
product from the producer will be distributed to the intermediaries such
as the retailers and buyers, then to the consumers. Another channel of
distribution is through direct marketing in which the buyer can go
directly to the production area.
D. Technical Aspects
The area needed for the proposed business is 150 square meters,
which comprise the comfort room, storage room, and kitchen. The
business will start in the year 2021.
There were two different processes done in the proposed study. For Crab
Meat Snacks, cleaning of the crab, extracting crab meat, preparation of
the ingredients, coating the egg, dip in the egg, roll in breadcrumbs, and
lastly the packaging.

xvi
The sweet potato chips involve cleaning the sweet potatoes, peeling off
the skin, slicing the sweet potatoes, dredge in flour, and paced in a
ziplock bag for packaging. To meet the production volume, the proposed
study will have eight (8) hours of operation per day.
F. Financial Aspects
We prove the production of Comfort Food workable. To start the
business, the project cost amounting to Php 250,000.00, and the
partners agreed to contribute Php 62, 500.00 each. During the first year
of operation, the business net income after tax will be Php 113,542.17
The initial investment will be returned in more than a year or about 1.96
years. It has an IRR of 29.99% and an accounting rate of return of
54.41% which showed that the business is workable.
E. Management Aspect
The type of business ownership will be a partnership in which
partners contribute money, skills, and other resources, and share profit
and loss under the partnership agreement. There are four owners of the
business who are the financial manager, the production manager, and
two (2) marketing/sales manager. The business requires only 1 crab
extractor and 1 errand person to help run the business.
G. Socio- Economic Aspect

xvii
The proposed study would create wealth and growth in the city of
Bislig, where the business is being established. The business stimulates
job creation by providing employment opportunities to people that would
help lessen the unemployment rate in the city. With these, crab farmers
will increase the growth rate of crab farming in our locality, which results
in maintaining estuaries and planting more mangroves for crabs to live
and shelter.
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CHAPTER 1
INTRODUCTION
Eating is one of life’s greatest pleasures and pride—so is cooking
and serving good food to others with a special treat from time to time.
When you’re stressed out, upset, or frustrated, cravings for normally
forbidden foods are difficult to ignore. For, food is more than just a basic
necessity, hence, it is a pleasure that plays a significant role in
understanding happiness.
Republic Act No. 6977, as amended, otherwise known as the
“Magna Carta For Small Enterprise” an act to promote entrepreneurship
by strengthening development and assistance programs to micro, small,
and medium-scale enterprises. Section 2 of Republic Act No. 6977,
recognized MSMEs that have the potential for more employment
generation and economic growth and therefore can help provide a self-
sufficient industrial foundation for the country. It is declared the policy
of the State to promote, support, strengthen and encourage the growth
and development of MSMEs in all productive sectors of the economy,
particularly rural/agri-based enterprises.
Food processing is the transformation of food into a form that can
be used. It can cover the processing of raw materials into food via
different physical and chemical processes. Food processing has already
been used for centuries to preserve their foods, or simply to make foods
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edible. Processed food products brought so many benefits, for instance,
palatability, preserved and improved nutritional quality, and safety.
As explicitly stated by Raichur, (2014), the heat-and-eat food
category has a tremendous growth opportunity in the near future due to
a growing youth population and working woman segment. Thus,
increasing work and study commitments, declining culinary skills, the
rising need for convenience, and surging disposable incomes, along with
clever marketing will all lead to a higher demand for heat-and-eat
products.
As Bislig City was labeled as the “Booming City of the Bay” no
wonder that it is lavished with different varieties of agricultural land and
blessed with bodies of water wherefore, it is very abundant with
aquamarine resources. According to Mindanao Tourism Philippines
(2017), Bislig City is agricultural but also rich in aquamarine researchers
and thus has an abundance of fresh seafood. Mud crabs, found in
abundance. Likewise, lobsters, shrimps, sea urchins, giant clams are
found in Bislig City and they are being shipped to neighboring cities and
provinces.
These, and the foregoing scenario motivates the researchers to
pursue the study of the abundance of agricultural and aquamarine
resources in Bislig City and to grasp the opportunity of making it into a

3
comfort food production in Bislig City that could provide a delicacy that
is as easy as heat and eats.
Vision
To be globally competitive and innovative crabs and chips
production that enhance wealth creation in CARAGA region.
Mission
To lead the way in utilizing crabs and chips production by
producing creative comfort food as an inclusive development in the
region.
Goal
Becoming the market leader.
Business Description
D’ Owen Crab Meat Snacks and Sweet Potato Chips is a new and
innovative kind of business. It belongs to the food processing industry
sector through the form of partnership. Food Processing in the current
industry performance soars high from its net revenue increase of 69%
year over year. This means products in the food processing industry have
a greater chance to be successful in the market.
D’ Owen’s products appeal to all walks and backgrounds. In
addition, the business will attract customers who in the city and the
neighboring cities and municipalities in CARAGA REGION.

4
The distribution of the products will be through retailing and wholesaling
however, the business would also cater to the direct selling of the
products. Concerning the registration of the business, it will come forth
as long as the team started the business and all the much-needed and
important things are well-prepared.
SWOT ANALYSIS
Figure 1 shows the SWOT (Strengths, Weaknesses, Opportunities,
and Threats) Analysis of the proposed study. This allows the business to
have a strategic planning technique with a focus on leveraging strengths
and opportunities to overcome weaknesses and threats.
STRENGTHS WEAKNESSES
- New type of comfort food - New entrant in the market
- Localized taste - Limited choice of product
-Expertise in cooking
OPPORTUNITIES THREATS
- Rising demand for comfort - More competition

food - Price war
- Finding new varieties of - Uncertainty in social acceptance
comfort food products
Figure 1
SWOT Analysis of the

5
Product Description
Figure 2 shows the product descriptions of the crab meat snacks.
This includes the features, advantages, and benefits of the proposed
product.
Crab Meat Snacks is a whole soft or boiled egg wrapped with real
crab meat and flour, and then coated in bread crumbs and deep-fried.
Features Advantage Benefits
- packed with protein,

- 6 pieces per - Environmentall for building and
pack y friendly maintaining muscle.
- Packed with - Easy as “heat - contains omega-3
ziplock bag and eat” and fatty acids that
are good for the
heart
- rich sources
of vitamin D, B6,
B12 and minerals
Figure 2
Crab Meat Snacks Features, Attributes, and Benefits (FAB)
Sweet Potato Chips are long and thin in shape, and has a
crunchy-textured. It is seasoned and deep fried for use as a snack or a
side dish for some foods. Moreover, Sweet Potato Chips have a sweeter
6
flavor compared with potato fries. Thus, these chips offer a healthier
alternative to traditional types of potato chips.
Figure 3 shows the product descriptions of the sweet potato chips.
This includes the features, advantages, and benefits of the proposed
product.
Features Advantage Benefits
- starchy, sweet tasting root - 100% organic - Highly nutritious

vegetable - Environmentally - support healthy vision
- strong anti-inflammatory friendly - help manage stress
food level
- can be eaten in many ways, - support immune
fried, baked, steamed, etc. system
- considered as “super food”
pair perfectly with seafood
- packed in ziplock bag
Figure 3
Sweet Potato Chips Features, Attributes, and Benefits (FAB)

7
Industry Analysis
Outlook and Trends
According to a New Market Report, 2019, that, the food processing
market is expected to reach an estimated $4.1 trillion or Php196.8
trillion by 2024 with a CAGR of 4.3% from 2019 to 2024. The future of
the food processing market looks promising with opportunities in
beverage, dairy, meat & poultry, convenience food & snacks, fruits &
vegetables, and seafood industries. The major drivers for this market are
increasing demand for ready-to-eat food and easy-to-cook products,
changing lifestyles, and an increase in nuclear families and working
women. Emerging trends, which have a direct impact on the dynamics of
the industry, include the development of food processing technologies
that reduce detrimental changes in food and maintain nutritional value.
The business could keep up with the trends in the market here in
Bislig City and neighboring cities and municipalities, because of the
innovation brought from the international comfort food of Europe. As
stated above, it can also be seen in our locality that people living in Bislig
City want easy to cook products, as easy as heat-and-eat.
The combination of sweet and salty tastes will make people crave more.
8
Competitor’s Analysis
Figure 4 shows the competitor’s analysis, assessment of the
strengths and weaknesses of current and potential competitors.
This analysis provides both an offensive and defensive strategic context
to identify opportunities and threats.
Strengths Weaknesses
- names are already known - not technologically inclined

- location (advertising)
- customer loyalty - existing competitors of comfort
food
Figure 4
Competitor’s Strengths and Weaknesses
Strategies for Competitive Advantage

Strategies such as social media platforms, radio advertising, and
tarpaulins will introduce the comfort food product in the market. These
are the ways to market the products creatively and conveniently in the
means of technology — social media.

9
Barriers to Prevent Exploiting the Firm’s Market
Three things could help to prevent competitors from exploiting the
market of the firm one is the consistency of the quality of the crab and
other ingredients, second is the good customer service in terms of the
time delivering the product to the customers to build a good relationship
to the customers. Third and the last is the price range that is fair enough
between the firm and customers.
Opportunity That Can Be Exploited
The only thing that would allow competitors to exploit the firm’s
product is through replicating the idea of the business comfort food
products.
Industry Forecast
After the deep research, we come to know that this industry
business such as food production has a lot of potential customers from
the market. People in Bislig City want to eat food that tastes local that
comes from the sea with fresh quality ingredients. Customers vary from
different age groups or all walks of life. However, our target market would
be the retailers who wish to re-sell our products and market them on
their own.
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CHAPTER 2
MARKETING STUDY
A. Market Analysis
The chosen market for this market analysis is the food processing
industry. Food processing has become essential to the supply chain in
the global economy. It provides linkages to the two pillars of the
economy, agriculture and economy. There is a significant market need
for food processing, considering the growing youth population and
working woman segment that will all lead to a higher demand for heat-
and-eat products. However, this market need is filled by a significant
amount of competition — in which others, prefer freshly produced food
products. Regulation is not an issue.
Laborer’s Health and Safety Fund divided the market into three (3)
market segments, processed food, unprocessed food, and others. And,
58% showed dominance in the food processed preference of the people.
D’Owen Comfort Food products will suffice the wants and perhaps
the needs of the customer to have a product that is as easy as heat and
eats. There are so many competitors in the market thus, the business
will use a strategy that uses retailers as the target market to expand the
reach of the customers and capture a huge market not just in the locality
but also, in the other cities and municipalities in the region.

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Market Analysis (Food Preference)
Others
12%
Un- Processed
pro- 57%
cessed
30%
Figure 5
Market Analysis
A.2 Market Condition
A.2.1 Demand
Shown in Table 1 is the three-year projected demand of comfort
food in Bislig City. The projection was based on the judgmental method
with a conservative estimate of 10% annually because of the
unavailability of historical data on comfort food. Furthermore, there is an
increase annually because the business may penetrate the market
through promotional activities. The total estimated demand for comfort
food (crab meat snacks and sweet potato chips) is equivalent to 150
packs.
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Table 1
Projected Demand of Comfort Food
Quantity Quantity Quantity

Comfort
Unit Sold per Sold per sold per Year 1 Year 2 Year 3
Food
Day Week month
Crab Meat
packs 50 350 1400 16,800 18,480 20,328
Snacks
Chips packs 100 700 2800 33,600 36,960 40,656
Total 150 1050 4200 50,400 55,440 60,984
A.2.2 Crab Season
The primary season for all crab species is from October to January.
Other regions or places in the Philippines, specifically in San Fernando,
Bislig City even stretched the crabbing season until July. However, crab’s
prices typically soar high during upcoming holidays like Christmas and
New Year. Thus, when the crab supplies are low and prices are high, the
business will then introduce and make a shift into a new variety of meat
products such as, shrimp, fish, pork, and chicken.
A.2.3 Supply
Table 2 shows the projected supply of comfort food for five years.
We observed that there is a continuously increasing demand for comfort

13
food by 5% annually. The supply for year one is based on the judgmental
method however, data is not available in terms of the supply of comfort
food in the locality.
Table 2
Projected Supply of Comfort Food
Quantity Quantity Quantity

Comfort
Unit Sold per Sold per sold per Year 1 Year 2 Year 3
Food
Day Week month
Crab Meat
packs 8 56 224 2,688 2,822 2,963
Snacks
Chips packs 25 175 700 8,400 8,820 9,261
Total 40 280 1,120 11,088 11,642 12,224
A.2.4 Demand and Supply Gap Analysis
The gap of supply and demand shows the possibility of
increasing the production volume of comfort food for the next years of
operation. Table 3 shows the supply and demand gap of comfort food
production. The proposed comfort food production may capture 22% of
the market.
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Table 3
Supply and Demand Gap
Demand Supply Gap Market

Year
(packs) (packs) (packs) Share (%)
Year 1 50,400 11,088 39,312 22%
Year 2 55,440 11,642 43,798 22%
Year 3 60,984 12,224 48,760 22%
Total 166,824 34,954 131,870 22%
A.2.5 Projected Sales Volume
Table 4 shows the sales projection of the proposed study which
aims to dispense 11,088 packs of comfort food yearly. The comfort food
production increases by five percent (5%) and the price increases also by
five percent (5%) annually.
Table 4
Projected Annual Sales and Volume of Comfort Food
Year 1 Year 2 Year 3

Price Price Price
No.
Comfort per No. of Total per No. of Total per Total
of
Food pack Packs Php pack Packs Php pack Php
Packs
(Php) (Php) (Php)
Crab Meat
2,688 806,400 2,822 888,930 2,963 980,753
Snacks 300.00 315.00 331.00
15
Chips 8,400 672,000 8,820 740,880 9,261 814,968

80.00 84.00 88.00
Sales, ₱ 11,088 1,478,400 11,642 1,629,810 12,224 1,795,721
A.2.6 Crab Meat Snacks Packaging
Figure 6 shows the Crab Meat Snacks packaging. It utilizes the
zip lock bag that has a secure locking which can provide a good way to
ensure that the product inside is clean and free from damage. It could
also prevent contaminants such as moisture, dust, and dirt.

16
Figure 6
Packaging of the Crab Meat Snacks
A.2.7 Sweet Potato Chips Packaging
Figure 7 shows the Crab Meat Snacks packaging. It utilizes the
zip lock bag that has a secure locking which can provide a good way to
ensure that the product inside is clean and free from damage. It could
also prevent contaminants such as moisture, dust, and dirt

17
Figure 7
Packaging of the Sweet Potato Chips
A.2.8 Best Before End Date
Crab Meat Snacks – if properly stored, frozen crab meat will
maintain best quality for about 6 months in the freezer. Although, it
usually remains safe to eat after that.
Sweet Potato Chips – storing them in a freezable container
or freezer bag will prolong the shelf-life of the sweet potato chips.
A.2.9 Nutrition Fact
Figure 8 shows the Nutrition Fact of the Crab Meat Snacks. It
shows the the full detailed content of food nutrient content, such as the
amount of fat, cholesterol, sodium, carbohydrates, and the like, that the
product has.
18
Figure 8
Nutrition Fact
A.3 Marketing Mix
A.3.1 Product
Figure 9 is the well-packaged Crab Meat Snacks comfort food
product which is made with whole soft or hard-boiled egg wrapped in

19
crab meat, coated in bread crumbs and deep-fried. On a brighter note,
one of its advantages is that, it can be stored for a period of time (as long
as it is kept refrigerated and placed in an air-tight container)
CRAB MEAT SNACKS

Good Food Brings A Good Mood
MADE IN BISLIG Keep refrigerated
Cell No. 09457203600 DTI PERMIT NO. 06852524
BBE: 10-23-21
Figure 9
Proposed Crab Meat Snacks Product of the Study
Shown in figure 10 is the well-packaged Sweet Potato Chips
comfort food product that is made with real potato crisps. On a brighter
20
note, one of its advantages is that, it can be stored for a period of time
(as long as it is kept refrigerated and placed in an air-tight container or
ziplocked bag)
C HPotato
Real Sweet IPS Crisps
Good Food Brings A Good Mood
MADE IN BISLIG Keep refrigerated
Cell No. 09457203600 DTI PERMIT NO. 06852524
BBE: 10-23-21
Figure 10
Proposed Sweet Potato Chips Product of the Study
A.3.2. Price
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Table 5 shows the projected prices of comfort food. The
projected prices are computed based on the production cost. It has a
mark-up price of 5% and projected to increase by 5% annually.
Table 5
Comfort Production Production Mark Projected

Food Cost per Cost per up price per Year 1 Year 2 Year 3
piece (Php) pack (Php) price pack (Php)
@10%
Crab 35.73 214.36 85.64 300.00 300.00 315.00 330.75

Meat
Snacks
Chips 54.84 25.16 80.00 80.00 84.00 88.2
Price
A.3.3 Promotion
The following are the promotional activities that the
proposed study is going to adopt:
A. Radio Advertisement. This can help extend information
regarding the product and the business among its potential
customers. The product will be aired in the radio and it will
guarantee exposure in the market.
B. Social Media Advertisement. This platform will allow to
disseminate information about the current food products in town.

22
The product will be posted in the Facebook page to keep the
product to be exposed in the market.
Figure 11
D’ Owen Facebook Page
C. Tarpaulins. It helps promote the enterprise as well as the product
that can provide awareness to the possible buyers. The tarpaulins
can be posted in public areas where it can catch the attention of
the people.
23
Figure 12
D’ Owen Tarpaulin Layout
A.3.4 Place
The projected year that the business will start is in 2021. Therefore,
the researchers assumed to rent the former Monterey meat shop building
24
which is primarily located at Picasales St., Mangagoy, Bislig City. Thus,
the target location of this proposed study will be in this area. (see
appendix I)
A.4 Target Market
The target market of this comfort food products will be the retailers
who are currently operating in Bislig City. Thus, the said retailer
establishments will serve as the intermediary between the producer and
the consumers.
A.5 Product Positioning
To all walks of life who wants to find an instant mood
booster, D’ Owens Crab Meat Snacks and Sweet Potato Chips will give
you a good food that brings you into a good mood because it is made
with real crab meat and real sweet potato that gives a sweet-salty
sensation to everyone’s palate.
A.6 Market Segmentation
Figure 13 shows the Market Segmentation wherein it helps the
business to learn and understand their target audience and ideal
customers better.
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- Bislig City and -All walks of life. - Prefers easy to - Support local
neighboring cities cook food products.
and products. - Value budget
municipalities. - Values quality friendly prices.
products
Figure 13
Market Segmentation of Comfort Food
A.7 Marketing Program and Marketing Strategies
Objectives
The proposed study aims to realize the following objectives:
1. To develop a sustainable comfort food production in Bislig
City
2. To increase the revenue by 10% annually.
3. To meet the projected sales volume as well as the production
volume annually.
26
a. Channel Distribution
Direct Marketing. This channel of distribution is where the
buyer can go directly to the production area.
Indirect Marketing. The producers made products will be
distributed to the intermediaries such as the retailers, then to the
consumers.
Intermediaries
Producer (buyer) Consumer
Figure 14
Channel Distribution
b. Opportunity Analysis
According to Food Export Organization, the Philippines rapidly
expanding production of processed food roughly reached 1.3 trillion ($27
billion) that covers about 90 percent of the Philippine food and beverage
processing industry’s output, with excellent growth prospects stemming
from the country’s resilient economy and strong consumer base. As
eloquently stated by MarketsandMarkets, rise in disposable income due
to growth in the economy has led to an increase in demand for
convenience and processed foods.

27
The growing demand for heat and eat products has continuously
rise up. This proposed study is a great opportunity for the partners to
penetrate the region. On the other hand, the locality well be known to be
the first city in the CARAGA region to put up and establish a comfort
food product that uses the locality’s native resources. To top it all, the
Bislig City together with D’Owen Comfort Food will bring a brand to the
region along with its mission.

28
CHAPTER 3
TECHNICAL STUDY
B.1 Size of the Facility
The facility size of the proposed project is 150 meters square.
Shown in Figure 15 is the proposed floor plan of the business. It
composes of the storage area, preparation area, kitchen area, and
comfort room.
29
Figure 15
9
2
Floor Plan
30
B.2 Procedures
In production, there will be seven (7) processes involved in
producing the Crab Meat Snacks comfort food which are: (1) cleaning of
the crabs, (2) extracting crab meat, (3) preparing the ingredients, (4)
coating the egg, (5) dipping the egg, (6) rolling into the crumbs, and (7)
lastly placing of the finish product into its proper packaging with label.
Cleaning of the crabs. In cleaning the crabs, blanching is done
to be able to kill the crab.
Extracting crab meat. After blanching the crab, extraction of
the meat out of the crab shell is done after.
Preparation of the ingredients. After getting the meat out of
the crab preparation of the ingredients for wrapping the crab meat.
Coating the egg. When ingredients are well-blended, it is then
wrapped into the egg.
Dip in the egg. When the egg is well-coated already, dip it into
a bowl of whisked egg
Roll in breadcrumbs. After which the egg is dip, roll it into a
breadcrumb.
Packaging. It will utilize a ziplocked bag together with its logo
for its preservation.

31
In the Sweet Potato Chips production, there will be five (5)
processes that will be done that involves, cleaning of the sweet potatoes,
peeling off the skin, slicing the sweet potatoes, and placing the finish
product into its proper packaging.
Cleaning of the sweet potatoes. To clean the sweet potatoes, it
is washed in a running water to remove its dirt.
Peeling off the skin. After removing the dirt, it is then the skin
is removed through the use of a knife or a peeler.
Slicing of the sweet potatoes. After peeling off the skin, slicing
of the clean sweet potatoes into medium-sized strips.
Dredge in flour. When sweet potatoes are finely-sliced, dredge it
into the flour after.
Packaging. It will utilize a ziplocked bag together with its logo
for its preservation

32
B.3 Process
Figure 16 shows the process of making the crab meat snacks,
wherein, 7 (seven) steps are done to produce the finish product.
a. Crab Meat Snacks
Kill/clean the Extract the meat Prepare all Coat with
crabs through out of the crab the ingredients crab meat
blanching shell
Crab Meat
Dip it into the Roll it into
Snacks (Finish
breadcrumbs.
whisked egg.
Product)
Figure 16
Process of Crab Meat Snacks

33
b. Sweet Potato Chips
Figure 17 shows the process of making the crab meat
snacks, wherein, 7 (seven) steps are done to produce the finish
product.
Clean the sweet Peel off the skin. Slice the sweet Dredge into flour
Potatoes in water. potatoes into
strips.
Sweet Potato
Chips (Finish
product)
Figure 17
Process of Sweet Potato Chips

34
B.4 Equipment and Tools Used
Figure 18 shows the equipment and tools used to make the
proposed products of the business. These include, glass chest freezer,
kitchen utensils, ladles, colander, cooking pot, and measuring cups.
Figure 18
35
Equipment and Tools Used
B.5 Waste Disposal
Proper waste disposal is very important in any establishments. It
is one of the keys that attract customers and build customer
relationships. The city ordinance number 2009- 02 entitled “An
Ordinance Adopting the Ecological Solid Waste Management Program of
Bislig City” was enacted to maintain cleanliness as well as the protection
of everyone. The waste will be collected will be rendered to the City
Organic Agri-Fisheries Complex (COAFC) since they already have a
compost pit inside their facility, that would eventually turn into a
fertilizer. Furthermore, it is a great way of helping one of the city’s
advocacies – to help save our environment and to go organic.

36
CHAPTER 4
FINANCIAL STUDY
C.1 Financial Assumptions
The major assumptions used in financial aspect of the proposed
study are summarized below:
1. The organization is in the form of partnership with a total capital
investment of Php 250,000 thus, each of the four partners will
contribute Php 65,000.00
2. All sales and purchases are on cash basis. (No Accounts
Receivables and Accounts Payable)
3. The partners are expected to withdraw 50% of their share in their
net income allocation for personal use.
4. The partners agreed to share their profit and loss annually.
5. Sales price is expected to increase by 5% while the number of
customers is assumed to increase by 5% annually depending on
the production increase.
6. Direct Materials under Cost of Good Sold increases by 5% annually.
7. Rent and Utilities Expense are allocated between Production and
Administrative, 50% and 50% annually.
8. Salaries Expense will increase by 5% annually.
9. Utilities Expense will increase by 10% annually.

37
10. Office Supplies, Cleaning Supplies, and Kitchen Tools and Utensils
Expense will increase by 5% annually.
11. Advertising & Promotion Expense and Repair & Maintenance
Expense will increase 5% annually.
12. The business is non-VAT since the Sales is lower than P3,000,000
annually
13. The business is subject to 1% percentage tax as per CREATE
(Corporate Recovery and Tax Incentives for Enterprises) Law
14. The accounting policy of the business uses “Asset Method” in
treating supplies, and is assumed to consume 99% of the supplies
for the year.
15. Straight-line method is used for computing the depreciation of all
properties and equipment. The estimated useful lives of these
noncurrent assets are shown in their respective financial schedule.
16. Income tax rate is 30%
17. SSS Fund, PhilHealth Fund, and Home Development Fund (PAG-
IBIG) of the current month are to be paid next month. The
payment for the last month is to be processed the following year.
18. The business uses an Imprest System in maintaining their petty
cash. Petty Cash Fud is P20,000, to be used for small expenses.
19. Income tax for the whole year shall be treated as an expense, but,
income tax for the last month will be treated as Income Tax
Payable, to be paid the following year.

38
20. Percentage tax for the whole year shall be treated as an expense
but, income tax for the last quarter will be treated as Percentage
Tax Payable to be paid the following year
C.2 Projected Production Cost
The total project cost of the proposed study comprises of
variable cost and fixed cost. Table 6 shows the total production cost of
comfort food production. It shows that the crab meat snacks have the
selling price of Php 300.00 per pack and Php 80.00 per pack for sweet
potato chips.
Table 6
Projected Production Cost
Crab Meat Snacks

Measurement Pro-rata Costing
Raw Materials Needed Conversion Cost of Materials
Needed per Unit
Crab Meat 140 g 1 kilo=1000g P600/kilo 85.71
Plastic Packaging 1 pc P8.57/package 8.57
Printed bond paper with label 1 pc P7.14/package 7.14
MATERIAL COST PER UNIT 101.42
Annual Direct Labor Cost 53,760.00
Units Produced annually 11,421
LABOR COST PER UNIT 4.71
OVERHEAD COST PER UNIT 6.81
COST PER UNIT 214.36
Add: Mark Up 40% 85.64
SELLING PRICE 300.00
39
Table 6 (continued)
Sweet Potato chips

Measurement Pro-rata Costing
Raw Materials Needed Conversion Cost of Materials
Needed per Unit
Sweet Potato 1 pack P30/pack 30.00
Plastic Packaging 1 pc P8.57/package 8.57
Printed bond paper with label 1 pc P4.76/package 4.76
MATERIAL COST PER UNIT 43.33
LABOR COST PER UNIT 4.71
OVERHEAD COST PER UNIT 6.81
COST PER UNIT 54.84
Add: Mark Up 46% 25.16
SELLING PRICE 80.00
C.3 Projected Project Cost
Table 7 shows the total project cost of the proposed study. The
allocated budget for Development Cost is Php 100,000.00, in which the
Fixed Capital Investment is equivalent to Php 151,038.75.00 and a cash
allowance for extra funding of Php 20,939.30. Finally, the total project
cost of the proposed study is Php 250,000.00

40
Table 7
Total Project Cost
Bislig City’s Comfort Food

TOTAL PROJECT COST
Fixed Investment
NON-CONSUMABLES
Computer Set with Printer 10,000.00
Glass Chest Freezer 18,500.00
Heat Sealer Machine 800.00
Furniture and Fixtures 1,750.00
Mixing Bowl 476.00
Kitchen Utensils Set 316.00
Cooking Utensils Set 450.00
Measuring cups and spoons 308.00
TOTAL 32,600.00
FOOD
Crabs 7,500.00
Egg 3,600.00
Sweet Potato 900.00
Flour 600.00
White Pepper 140.00
Scallions 1,000.00
Garlic 1,800.00
White Onion 650.00
Soy Sauce 86.75
Salt 40.00
Oil 22.00
TOTAL 16,338.75
NON FOOD: PACKAGING
Ziplock 2,100.00
RUNNING TOTAL 51,038.75
Add: Development Cost 100,000.00
TOTAL INVESTMENT 151,038.75
TOTAL INITIAL WORKING CAPITAL 78,021.95
SUBTOTAL 229,060.70
Add: Cash Allowance For Extra Funding 20,939.30
TOTAL PROJECT COST 250,000.00
41
C.4 Initial Working Capital
Table 8 shows the initial working capital of the proposed study,
with a total of Php 78,021.95.
Table 8
Initial Working Capital
Initial Working Capital

Rent Expense 10,000.00
Advertising Expense 19,700.00
SSS Contribution 2,695.00
Phil Health Contribution 1,050.00
PAGIBIG Contribution 489.60
Office Supplies 625.75
Cleaning Supplies 1,329.00
Permit and Licensing 2,080.00
Salaries and wages 37,964.60
Utilities 2,088.00
INITIAL WORKING CAPITAL 78,021.95

42
C.5 Financial Statement
Financial Statement is the summary and written reports that
quantify the financial strength, performance and liquidity of a company.
The three (3) basic financial statements are the (1) balance sheet, (2)
income statement (also called profit & loss statement), and (3) cash flow
statement.
C.5.1 Income Statement
Income statement also called profit and loss statement is a
financial statement that shows how the net income of the firm is arrived
at over a stated period. It is assessed by giving a summary of how the
business incurs its revenues and expenses through operating and
nonoperating activities.
Table 9 shows the income statement of Comfort Food Business, the
projected revenue, and expenses for three years. For the first year, the
net income of the business is Php 113,542.17, with Php 130,635.21 on
the second year, and Php 163,880.43 on the third year. The annual
increase of net income is caused by increase number of sales of the
proposed products.
43
Table 9
Income Statement

Statement of Comprehensive Income / Income Statement
For the Years Ended December 31, 2021-2023
Notes 2021 2022 2023
Sales 1 1,478,400.00 1,629,810.00 1,795,721.00
Less: Cost of Goods Sold 2 783,683.16 878,901.18 964,530.39
Gross Profit 694,716.84 750,908.82 831,190.61
Less:
Salaries Expense payroll 351,000.00 368,568.00 386,988.00
13th Month Pay payroll 29,250.00 30,714.00 32,249.00
Employees Benefits 3 39,180.00 41,910.00 43,950.00
Rent Expense 4 60,000.00 66,000.00 72,600.00
Utilities Expense 5 12,528.00 13,776.00 15,156.00
Depreciation - Office Equipment and Furniture 6 2,232.50 2,232.50 2,232.50
Office Supplies Expense 7 563.25 647.75 686.00
Cleaning Supplies Expense 8 1,196.00 1,375.75 1,457.00
Permits and Licenses Expense 9 2,080.00 2,080.00 2,080.00
Advertising and Promotions Expense 10 19,700.00 20,685.00 21,720.00
Percentage Tax Expense 11 14,784.00 16,298.10 17,957.21
Total Expenses 532,513.75 564,287.10 597,075.71
Net Income(Loss) Before Tax 162,203.09 186,621.72 234,114.90

Less: Income Tax (30%) 48,660.93 55,986.52 70,234.47
Net Income(Loss) After Tax 113,542.17 130,635.21 163,880.43
3
4
44
C.6 Cash Flow Statement

Cash flow statement is a financial statement that shows how
changes in balance sheets account and income affect cash and cash
equivalent, and breaks the analysis down to operating, investing and
financing activities. Moreover, the statement of cash flow calculates
whether the business has the availability of cash as viewed in the cash
ending balance. Shown in Table 10 is the 3-year projection of the
statement of cash flow of the proposed study. The business has a cash
ending balance of Php 268,142.55 for the first year of operation.

45
Table 10
Statement of Cash Flow

Statement of Cash Flows
For the years ended December 31, 2021 - 2023
Pre-Operating 2021 2022 2023
Cash Flow From
Operating Activities
Received From Customers - 1,478,400.00 1,629,810.00 1,795,721.00
Payment for Prepaid Rent (29,500.00) - - -
Payment for Rent - (104,500.00) (125,400.00) (137,940.00)
Payment for Office Supplies (625.75) - (657.25) (690.25)
Payment for Cleaning Supplies (1,329.00) - (1,395.50) (1,466.00)
Payment for Kitchen Supplies and Utensils - (1,550.00) (1,704.75) (1,875.25)
Payment for Direct Raw Materials Inventory - (655,735.01) (722,918.12) (796,966.15)
Payment for Salaries - (369,544.80) (387,137.04) (407,252.40)
Payment for 13th Month Pay - (33,730.00) (35,418.00) (37,189.00)
Payment for Utilities Expense - (22,968.00) (27,344.00) (30,082.00)
Payment for SSS and EC Premiums - (44,990.00) (51,225.00) (54,280.00)
Payment for Philhealth Premiums - (23,100.00) (28,500.00) (28,800.00)
Payment for PAG-IBIG Premiums - (10,771.20) (11,853.44) (11,957.28)
Payment for Withholding Taxes (500.00) (5,000.00) (6,550.00) (7,205.00)
Payment for Permits and Licenses - (2,080.00) (2,080.00) (2,080.00)
Payment for Advertising and Promotions - (19,700.00) (20,685.00) (21,720.00)
Payment for VAT - (11,088.00) (15,919.58) (17,542.43)
Income Taxes Paid - (36,495.70) (54,155.12) (66,672.48)
Net Cash provided (used) by Operating activities (31,954.75) 137,147.30 136,867.20 172,002.76
Cash Flow from

Investing Activities
Cash Paid For Office Equipment and Furniture (11,750.00) - - -
Cash Paid For Production Equipments (19,300.00) - - -
Net Cash provided (used) by Investing Activities (31,050.00) - - -
Cash Flow from

Financing Activities
Cash Received from Partners' Contributed Capital 250,000.00 - - -
Cash Withdrawals of Partners for Personal Use - (56,000.00) (64,000.00) (80,000.00)
Net Cash provided (used) by Financing Activities 250,000.00 (56,000.00) (64,000.00) (80,000.00)
Net Cash provided (used) by Operating activities (31,954.75) 137,147.30 136,867.20 172,002.76
Net Cash provided (used) by Investing Activities (31,050.00) - - -
Net Cash provided (used) by Financing Activities 250,000.00 (56,000.00) (64,000.00) (80,000.00)
Increase (Decrease) in Cash in Bank 186,995.25 81,147.30 72,867.20 92,002.76

Add: Beginning Balance - 186,995.25 268,142.55 341,009.75
Ending Balance 186,995.25 268,142.55 341,009.75 433,012.51
5
4
46
C.7 Statement of Changes in Partner’s Equity

It is also called statement of retained earnings, is a financial
statement that a company is required to prepare along with other
important financial documents at the end of a reporting period.
The statement of owner’s equity reports the changes in company
equity. The changes that are generally reflected in the equity statement
include the earned profits, dividends, inflow of equity, withdrawal of equity,
net loss, and so on. Table 11 shows the statement of changes in partner’s
equity.
Table 11
Statement of Changes in Partner’s Equity

Statement of Changes in Partner's Equity
For the year ended December 31, 2021
Fejo, Capital Tabugon, Capital Tariman, Capital Tan, Capital TOTAL

Beginning Capital 62,500.00 62,500.00 62,500.00 62,500.00 250,000.00
Add: Share in the Net Profit 28,385.54 28,385.54 28,385.54 28,385.54 113,542.17
Running Total 90,885.54 90,885.54 90,885.54 90,885.54 363,542.17
Less: Withdrawals (14,000.00) (14,000.00) (14,000.00) (14,000.00) (56,000.00)
Partner's Equity 76,885.54 76,885.54 76,885.54 76,885.54 307,542.17
47
Table 11 (continued)


Running Total 109,544.34 109,544.34 109,544.34 109,544.34 438,177.37
Partner's Equity 93,544.34 93,544.34 93,544.34 93,544.34 374,177.37


Running Total 134,514.45 134,514.45 134,514.45 134,514.45 538,057.80
Partner's Equity 114,514.45 114,514.45 114,514.45 114,514.45 458,057.80
48
C.8 Balance Sheet

The balance sheet is a statement of the asset, liabilities, and
capital of the business or other organization at a particular point in time,
detailing the balance of the income and expenditure over the preceding
year. The balance sheet also indicates the company’s position where the
assets should be equal to the total equipment. Shown in Table 12 is the
balance sheet of the proposed study. In year one, the total asset is Php
333,160.60, Php 402,763.21 on the second year, and Php 491,179.32 on
the third year.

49
Table 12
Balance Sheet

Statement Of Financial Position / Balance Sheet
December 31, 2021 - 2023
Notes Pre-Operating 2021 2022 2023

ASSETS
Current Assets:
Cash and Cash Equivalents 12 186,995.25 268,142.55 341,009.75 433,012.51
Prepaid Rent 13 30,000.00 20,000.00 20,000.00 20,000.00
Office Supplies 14 625.75 62.50 72.00 76.25
Cleaning Supplies 15 1,329.00 133.00 152.75 161.75
Raw Materials Inventory 2 - 19,672.05 22,277.71 24,577.32
Total Current Assets 218,950.00 308,010.10 383,512.21 477,827.82
Noncurrent Assets:
Office Equipment and Furniture (Net) 16 11,750.00 9,517.50 7,285.00 5,052.50
Production Equipments (Net) 17 19,300.00 15,633.00 11,966.00 8,299.00
Total Non-current Assets 31,050.00 25,150.50 19,251.00 13,351.50
Total Assets 250,000.00 333,160.60 402,763.21 491,179.32
LIABILITIES AND PARTNERS' EQUITY

Liabilities
Current Liabilities:
Utilities Payable 18 - 2,088.00 2,296.00 2,526.00
SSS and EC Premiums Payable 19 - 4,090.00 4,285.00 4,545.00
Philhealth Premiums Payable 20 - 2,100.00 2,400.00 2,400.00
PAG-IBIG Premiums Payable 21 - 979.20 983.68 997.60
Withholding Tax Payable 22 - 500.00 550.00 605.00
Income Tax Payable 23 - 12,165.23 13,996.63 17,558.62
Percentage Tax Payable 24 - 3,696.00 4,074.53 4,489.30
Total Liabilities - 25,618.43 28,585.83 33,121.52
Partner's Equity
Fejo, Capital 62,500.00 76,885.54 93,544.34 114,514.45
Tabugon, Capital 62,500.00 76,885.54 93,544.34 114,514.45
Tariman, Capital 62,500.00 76,885.54 93,544.34 114,514.45
Tan, Capital 62,500.00 76,885.54 93,544.34 114,514.45
Total Partner's Equity 250,000.00 307,542.17 374,177.37 458,057.80
Total Liabilities and Equity 250,000.00 333,160.60 402,763.21 491,179.32
9
4
50
C.8 Financial Analysis

Financial Analysis is the examination of a business from a
variety of perspectives in order to fully understand the greater financial
situation and determine the strength of the business. A financial
analysis also looks at many aspects of business from its profitability and
stability to its solvency and liquidity.
C.9 Break-even Point
Table 13 shows the break-even analysis of the comfort food
production, wherein, there is no gain and no loss. This means that it is
only enough to cover the expenses of the operation. Break-even volume
is calculated using the following equations:
CM/Unit = Selling Price – Variable Cost
Fixed Cost
BEV =
Selling Price – Variable Cost
Where:
CM = Contribution Margin
BEV = Break Even Volume

51
Table 13
Break-Even Analysis
Daily Breakeven Analysis

Year 2021 2022 2023
Sample Day for the Year Apr-01 Apr-01 Apr-01
Fixed Costs
Total Selling & Administrative Expenses 1,584.86 1,679.43 1,777.01
Variable Cost
Direct Materials Over Units Produced 57.41 60.28 63.30
Direct Labor Over Units Produced 4.71 5.18 5.70
Overhead Over Units Produced 6.81 7.49 8.24
Total Variable Cost Per Unit 68.93 72.95 77.23
Average Selling Price of Units 133.33 139.99 146.90

Less: Total Variable Cost Per Unit 68.93 72.95 77.23
Gross Margin Per Unit 64.40 67.04 69.67

Divided by: Gross Margin Per Unit 64.40 67.04 69.67
Break Even In Units 25 25 26

Multiply: Average Selling Price 133.33 139.99 146.90
Break Even In Pesos 3,281.08 3,506.75 3,746.75
1
5
52
Weekly Breakeven Analysis

Year 2021 2022 2023
Sample Week for the Year Week 1 Week 1 Week 1
Fixed Costs
Variable Cost



2
5
53
Monthly Breakeven Analysis

Year 2021 2022 2023
Sample Month for the Year January January January
Fixed Costs
Variable Cost



3
5
54
Annual Breakeven Analysis

Year 2021 2022 2023
Fixed Costs
Variable Cost
Average Direct Materials Over Units Produced 57.41 60.28 63.30


Break Even In Units 8,268 8,417 8,570
Break Even In Units 8,268 8,417 8,570

Break Even In Pesos 1,102,441.60 1,178,267.57 1,258,907.66
4
5
55
C.9.1 Capital Recovery
Profitability analysis quantifies and assesses the business
capability to gain adequate return sales, total assets and investor’s
investment. The methods of evaluating investments involve the cash
payback, discounted payback, accounting rate of return and internal rate of
return.
a. Cash Payback
Cash Payback is the length of time before the original cost of
investment is recovered from the expected cash flow. Table 14 shows the
cash payback period. The computed cash payback of the proposed study
shows that it will take more than a year or about 1.96 years to recover the
investment.
Table 14
Payback Period
Payback Period
Expected Cash Flow Cumulative Net worth
Year 0 (250,000.00) (250,000.00)
Year 1 119,441.67 (130,558.33)
Year 2 136,534.71 5,976.37
Year 3 169,779.93
Payback Period is 1.96 years
56
b. Accounting Rate of Return
Table 15 shows the ARR or Accounting Rate of Return, also known
as the Average Rate of Return (ARR), is a financial ratio to calculate the
return, generated from net income of the proposed capital investment. The
ARR is a percentage return. The accounting rate of return is 54.41%.
Table 15
Accounting Rate of Return

Initial Investment Net income
Year 0 250,000.00
Year 1 113,542.17
Year 2 130,635.21
Year 3 163,880.43
Average 136,019.27
Accounting Rate of Return 54.41%
Accounting Rate of Return
c. Internal Rate of Return and Net Present Value
The IRR and NPV are shown in Table 16 and 17. The net present
value is Php98,980.11. Thus, by interpolation, the IRR of the proposed

57
project is 29.99% which is acceptable because the higher the project IRR the
more viable to undertake the project.
The computation of the net present value is as follows:
C1 C2 Cn
NPV =−C 0 + + + .. .
(1−r ) ( 1−r ) 2
(1+r )n
Where:
C0 = Cost of Investment
C1 = Cash Inflow in year 1
C2 = Cash Inflow in year 2
Discounted Factor = 1/ (1+r)
r = discounted rate
n = Cash Inflow for the nth year
Table 16
Net Present Value and Profitability Index
Net Present Value and Profitability Index

PV using Marginal Accepted
Year Cash Inflow
Rate of Return (10%)
2021 119,441.67 108,583.33
2022 136,534.71 112,838.60
2023 169,779.93 127,558.18
Total 348,980.11
Less: Cost of Investment (250,000.00)
Net Present Value 98,980.11
Profitability Index 1.40
58
Internal Rate of Return

Year Cash Inflow(Outflow)
Investment (250,000.00)
2021 119,441.67
2022 136,534.71
2023 169,779.93
IRR 29.99%
Table 17
Internal Rate of Return
d. Liquidity Analysis
Table 18 shows the Liquidity Ratio. Liquidity Ratio tells the company’s
ability to pay its short-term obligations. The figure shows that it can pay its
current liabilities almost above twice in the first year and increasing
thereafter.
Table 18
Liquidity Ratio
FINANCIAL RATIOS
Formula 2021 2022 2023
LIQUIDITY RATIOS
Current Assets 308,010.10 383,512.21 477,827.82
Current Liabilities 25,618.43 28,585.83 33,121.52
Current Ratio 12.02 13.42 14.43
Cash + Short Term Investments +

268,142.55 341,009.75 433,012.51
Net Receivables
Current Liabilities 25,618.43 28,585.83 33,121.52
Acid Test Ratio 10.47 11.93 13.07
59
e. Solvency Analysis
Solvency Ration tells how much of company’s assets are finances by
debt and equity. The table 19 shows that the company’s assets are mostly
financed by owners rather that the debtor.
Table 19
Solvency Ratio
SOLVENCY RATIOS
Formula 2021 2022 2023
Total Liabilities 25,618.43 28,585.83 33,121.52
Total Partner's Equity 307,542.17 374,177.37 458,057.80
Debt-to-Equity Ratio 0.08 0.08 0.07
Total Liabilities 25,618.43 28,585.83 33,121.52

Total Assets 333,160.60 402,763.21 491,179.32
Debt Ratio 0.08 0.07 0.07
C.9.2 Profitability Analysis
Table 21, 22 and 23 show the results on the evaluation of the
project in terms of profitability. The proposed study has a rate of return on
sales of 11%, 11%, and 13%, from year 1 to year 3, respectively. It shows
the amount of income per peso of sales. The result clearly states that there
is a positive return on the revenue as observed in its increasing increment.

60
Table 22 shows the asset turnover that has a rate of 4.44, 4.05, and 3.66,
from year 1 to year 3, respectively.
Table 22 shows the return on assets of the business having a rate
of 34% during the first year, 32% on second year, and 33% on third year.
This signifies the business efficiency in using its assets to generate income.
The computations of Rate of Return on Sales (RRS), Asset Turnover
and Return on Assets (ROA) are shown below.
Net Income
Rate of Return on Sales =
Sales
Annual Sales
Asset Turnover =
Ave. Total Assets
Return on Sales x Net Sales

Rate of Return on Assets =
Ave. Total Asset
61
Table 20
Profitability Ratio
PROFITABILITY RATIOS
Formula 2021 2022 2023
Net Sales - Cost of Goods
Sold 694,716.84 750,908.82 831,190.61
Sales 1,478,400.00 1,629,810.00 1,795,721.00
Gross Margin Ratio 0.47 0.46 0.46
Net Income 113,542.17 130,635.21 163,880.43

Net Sales 1,478,400.00 1,629,810.00 1,795,721.00
Net Profit Ratio 0.08 0.08 0.09
Net Sales 1,478,400.00 1,629,810.00 1,795,721.00

Total Assets 333,160.60 402,763.21 491,179.32
Total Assets Turnover
4.44 4.05 3.66
Ratio
Net Income After Tax 113,542.17 130,635.21 163,880.43

Total Assets 333,160.60 402,763.21 491,179.32
Return on Assets Ratio 0.34 0.32 0.33

Total Partner's Equity 307,542.17 374,177.37 458,057.80
Return on Equity 0.37 0.35 0.36

Initial Investment 250,000.00 250,000.00 250,000.00
Return on Investment 0.45 0.52 0.66
Operating Profit 162,203.09 186,621.72 234,114.90

Net Sales 1,478,400.00 1,629,810.00 1,795,721.00
Return on Sales 0.11 0.11 0.13
62
63
Table 21
Rate of Return on Sales
Operating Profit 162,203.09 186,621.72 234,114.90
Net Sales 1,478,400.00 1,629,810.00 1,795,721.00

Return on Sales 0.11 0.11 0.13
Table 22
Asset Turnover
Net Sales 1,478,400.00 1,629,810.00 1,795,721.00
Total Assets 333,160.60 402,763.21 491,179.32
Total Assets Turnover Ratio 4.44 4.05 3.66
2
6
63
Table 23
Rate of Return on Assets
Total Assets 333,160.60 402,763.21 491,179.32
Return on Assets Ratio 0.34 0.32 0.33

64
CHAPTER 5
MANAGEMENT STUDY
D. Business Structure
The type of business ownership will be partnership wherein the
partners will help to contribute any resources such as money and skills
and that, partners will be sharing the business profit and loss under the
agreement (See appendix L). The owners of the business are the general
manager, financial manager, marketing manager, and food truck
business. The proposed study will only require processing workers that
will help to complete the food production.
D.1 Organizational Chart
Figure 19 shows the Organizational chart of the business. It
encompasses with full-time workers namely, Financial Manager,
Production Manager, and Marketing/Sales Manager. Also, the business
has wage-earners too, these are the crab shell extractor and errand
person.
65
Figure 19
Organizational Chart
D.2 Management Qualifications
In every business, hiring employees that best suit to the
qualification is important in order to perform their job duties as well as
to contribute to the success of the management.

66
Job Title: Financial Manager
Qualifications
 Bachelor’s degree in finance or marketing.
 Strong skill in excel.
 Ability to make relevant decisions in management.
 Strong business administration understanding.
Responsibilities
 Prepare business activity reports and financial statements.
 Review financial reports of the business and flexible in
minimizing cost and maximizing profit.
 Good in management and financial decisions.
Physical Attributes and Characteristics
 Able to work well with others.
 Must be patient and approachable.
 Honest and dedicated to work.
 Must have good moral characteristics.
Job Title: Production Manager
Qualifications
 Bachelor’s degree in finance or marketing.

67
 Take initiatives of current offerings and come up with new
products or services.
 Excellent in verbal and written communication skills.
 Have a good time management skill.
Responsibilities
 Purchased the needed materials.
 Ensure that health and safety protocols are being followed.
 Create production schedule.
 Provide schedule for equipment’s maintenance.
 Able to work well with others.
 Must be patient and approachable
 Dedicated to work
 Must have good moral characteristics.
Job Title: Marketing Manager
Qualifications
 Having a high standard of personal cleanliness.
 Attention to detail.
 Good hand-eye coordination.
 Able to cope with the physical demands of the job.

68
Responsibilities
 Manage receipts, inventories, and escalation of sales.
 Monitor business sales performance.
 Dedicated to work.
 Good patience and approachable.
Job Title: Crab Shell Extractor
Qualifications
 Having a high standard of personal cleanliness.
 Attention to detail.
 Good hand-eye coordination.
Responsibilities
 Keep equipment clean, tidy, and organized at all times.
 Expect crab meat products thoroughly.
 Good patience and approachable.

69
Job Title: Errand Person
Qualifications
Responsibilities
 Buys materials that are forgotten to buy.
 Hardworking and approachable.
 Good physical condition.
D.3 Work Hours
The standard hours of work for the employees will be eight (8)
hours a day. However, overtime will be required for the employees if
there is an urgent work that needs to be completed. The proposed
business will be open from Monday-Saturday from 8:00 am-5:00 pm.
D.4 Compensation
As an exchange for the employees doing their particular job,
compensation will be given to the employees. There will be one crab
extractor (1) and one (1) errand person in the business. The
70
compensation for crab meat extractor and errand person will be the
minimum wage of P320 a day. The payment will be done every 15th and
30th week of the month. Table 17 shows the compensation paid and
benefits to the employee….
Table 23
Employees Compensations and Benefits
2021 Payroll
EMPLOYEE'S SHARE
Monthly Gross Less: Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Net Pay
Pay PAGIBIG PhilHealth (Net Pay x 12) Month Pay Compensation
Financial Manager 7,800.00 315.00 100.00 175.00 7,210.00 86,520.00 7,800.00 94,320.00
Operations Manager 7,150.00 270.00 100.00 175.00 6,605.00 79,260.00 7,150.00 86,410.00
Marketing Manager 1 7,150.00 270.00 100.00 175.00 6,605.00 79,260.00 7,150.00 86,410.00
Marketing Manager 2 7,150.00 270.00 100.00 175.00 6,605.00 79,260.00 7,150.00 86,410.00
MONTHLY TOTAL 29,250.00 1,125.00 400.00 700.00 27,025.00
ANNUAL TOTAL 351,000.00 13,500.00 4,800.00 8,400.00 324,300.00 324,300.00 29,250.00 353,550.00
RELATED TO PRODUCTION (COST OF GOODS SOLD-DIRECT LABOR)

EMPLOYEE'S SHARE
Monthly Gross Less: Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Net Pay
Pay PAGIBIG PhilHealth (Net Pay x 12) Month Pay Compensation
Crab shell Extractor 2,240.00 135.00 44.80 175.00 1,885.20 22,622.40 2,240.00 24,862.40
Errand Person 2,240.00 135.00 44.80 175.00 1,885.20 22,622.40 2,240.00 24,862.40
MONTHLY TOTAL 4,480.00 270.00 89.60 350.00 3,770.40
ANNUAL TOTAL 53,760.00 3,240.00 1,075.20 4,200.00 45,244.80 45,244.80 4,480.00 49,724.80
D.5 Internal Control Measures
General Asset Control
 There shall be written procedures for purchasing, recording of
assets, and inventories.

71
 There shall be record keeping of assets to ensure that it is properly
controlled and transactions are properly recorded as to account,
amount, and period.
 No one shall take any transactions for their personal benefit.
furthermore, all transactions must pass through the Financial
Manager’s hands before making any decisions.
Segregation of Duties
 There shall be segregation of duties in management to reduce
errors and fraud. Also, this ensures that errors, intentional or
unintentional, cannot be made without being discovered by
another person.
Signing of Cheques
 There shall be three (3) signatories known to the bank. Others are
spare in case the principal signatory is not available.

72
E. SOCI0-ECONOMIC STUDY
One of the most sought concerns of the businesses here in Bislig City
is social responsibility. The business does not affect the environment
negatively by following the protocols that our city has implemented, for
instance, waste disposal. The city ordinance No. 2009-02 of the Republic
Act 9003, which is the segregation of biodegradable, recycle, residual, and
special garbage, shall be strictly observed. Written procedures for the
disposal of waste materials, organic and packaging should be
communicated properly to all the employees.
The proposed study would create growth in the city of Bislig that
stimulates job creation and providing employment opportunities to people
that may reduce unemployment. With these, crab farmers will increase the
growth rate of crab farming in our locality which results in maintaining
estuaries and planting more mangroves for crabs to live and shelter.
73
CHAPTER 6
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
This chapter presents the summary, conclusions and recommendations of
the study.
SUMMARY
The study was conducted to determine the technical and economic
feasibility of establishing Comfort Food in Bislig City. The industry analysis
and market opportunity showed that there is a demand for comfort food in
our locality as well as its socio-economic impacts in the society. The
Comfort Food Business sells two (two) varieties of comfort food products
which are the Crab Meat Snacks and Sweet Potato Chips.
The proposed study will be located at the former Monterey Meat Shop
at Picasales St., Mangagoy, Bislig City. The proposed study will require two
(2) part-time wage earners namely, the crab meat extractor and the errand
person, to help and assist the owners of the business. Furthermore, the rest
of the business transactions and works will be handled by the
partners/owners of the business.

74
CONCLUSION
The proposed study has a net present value of Php 98,980.11 and,
respectively. The study is feasible based on the internal rate of return which
is approximately 29.99%. The cash payback of the proposed study will be
about 1.96 years, while the accounting rate of return is at 54.41%. In
addition, there is also an increasing rate of return on sales from 11% to 13%
within 3-year of operation. With all the abovementioned financial studies,
the researchers concluded that the Comfort Food business is feasible in
Bislig City.
Furthermore, the tax that the business contributes to the city will be
beneficial to the community. Also, crab farmers and sweet potato farmers
will get to increase their production to supply the business. To end this, the
business helps not only in providing job opportunities to the people, taxes to
the government but also, the business paved the way in helping nature and
the farmers as well.

75
RECOMMENDATION
The following are the recommendations that the researchers would like to
address are the following,
1) The business should go for expanding the product depth
specifically on selling more types of comfort food meat such as, fish,
chicken, and pork to meet the customer’s demand.
2) As the business grows, the business should conduct twice a
month meeting to discuss new ideas, suggestions, and operations. Also, the
business will have programs recognizing employees as well as their benefits.
3) The business should have this value-added product where the
sales people owner offers more than the expectation of their customers.
76
BIBLIOGRAPHY
77
Global Food Processing Market Report
https://www.businesswire.com/news/home/20190904005488/en/
Global-Food-Processing-Market-Report-2019-Trends-Forecasts-and-
Competitive-Analysis-2013-2024---ResearchAndMarkets.com
Date Accessed: March 3, 2021
Heat and Eat Growth Opportunity
https://www.foodnavigator-asia.com/Article/2014/07/29/Relatively-
new-heat-and-eat-segment-to-nearly-treble-by-2019
Date Accessed: February 24, 2021
Magna Carta for MSME’s
https://www.officialgazette.gov.ph/2008/05/23/republic-act-no-
9501/
Date Accessed: February 24, 2021
Why Crab Is Good For You
https://www.salcombefinest.com/blog/why-crab-is-good-for-you/
Date Accessed: March 7, 2021

78
APPENDICES
79
Appendix A
:
80
Appendix B
ARTICLE OF PARTNERSHIP
of
Comfort Food Business in Bislig City
KNOW ALL MEN BY THESE PRESENTS:
That we, Jonah Praise D. Fejo, Juvy Mae D. Tabugon, Marie Fhe
B. Tariman, and Ronnel Tan all single, all Filipinos, of legal ages, and
residence of Bislig City, Surigao del Sur, Philippines, partnership shall
commence as of the date it is signed, in accordance with laws of the
Republic of the Philippines. AND WE HEREBY CERTIFY:
ARTICLE I. Partnership Name: That the name of this partnership
shall be D’ OWEN and shall transact business under the said company
name.
ARTICLE II. Business Purpose: That the purpose/s for which this
partnership is formed:
1. To generate income.
2. To help create job opportunities to the people of Bislig City.
3. To establish new comfort food product in the city.
ARTICLE III. Principal Place of Business: That the principal
place of business of the partnership shall be located at: Picasales St.,
Mangagoy, Bislig City Surigao del Sur

81
ARTICLE IV. Term of Existence: That this partnership shall have
the terms of ten (10) years from and after the original recording of its
Articles of Partnership by the Securities and Exchange Commission.
ARTICLE V. Partner’s Circumstances: That the names,
nationalities and complete residence address of the partners are as follows.
Name Complete, Residence Address, Nationality. Jonah Praise D. Fejo P-3A
Castillo Village Mangagoy, Bislig City Filipino. Juvy Mae D. Tabugon P-3
Tabon, Bislig City Filipino. Marie Fhe B. Tariman P-3 John Bosco District
Mangagoy, Bislig City. Ronnel T. Tan P-13 Bliss Mancarogo, Poblacion Bislig
City
ARTICLE VI. Capital Contributions: That the capital of the
partnership shall be one-hundred ninety-two thousand one hundredfifty-
seven and seventy-five cents (P192, 157.75) Philippine Currency,
contributed in cash by the partners, as follows: Name Amount Contribution
Jonah Praise D. Fejo Php 48,039.44. Juvy Mae D. Tabugon Php 48,039.44
Marie Fhe B. Tariman Php 48,039.44 Ronnel T. Tan Php 48,039.44 That no
transfer of interest which will reduce the ownership of Filipino citizens to
less than the required percentage of capital as 84 provided by existing laws
shall be allowed or permitted to be recorded in the proper books of
partnership. ARTICLE VII. Sharing Ratios: That the profits and losses of this
partnership shall be dividend and distributed proportionately on the ratio of
the capital contribution of each partner.

82
ARTICLE VIII. Management: That this partnership shall be under
as General Manager, who shall be in charge of the management of the
affairs of the company. He shall have the power to use the partnership
name and in otherwise performing such acts as are necessary and expedient
in the management of the firm and to carry out its lawful purposes.
ARTICLE IX. Undertaking to Change Name: That the partners
undertake to change the name of this partnership, as herein provided or as
amended thereafter, immediately upon receipt of notice or directive from the
Securities and Exchange Commissions that another corporation,
partnership or person has acquired a prior right to the use of that name or
that the name has been declared as misleading, deceptive, confusingly
similar to a registered name, or contrary to public morals, good customs or
public policy.
Partnership
IN WITNESS WHERE OF, we have here unto affixed our
signatures this March 2021 at Atty. Domingo De Castro Law Office at
Espiritu St., Mangagoy, Bislig City, Surigao del Sur, Philippines.
Jonah Praise D. Fejo
Juvy Mae D. Tabugon
Marie Fhe B. Tariman
Ronnel T. Tan
83
Appendix C
Notes to Income Statement
Note 1 - Sales 2021 2022 2023
Estimated Number of Crab Meat Snacks Units Sold Annually 2,688 2,822 2,963
Multiply: Selling Price 300.00 315.00 331.00

Subtotal 806,400.00 888,930.00 980,753.00
Estimated Number of Chips Units Sold Annually 8,400 8,820 9,261
Multiply: Selling Price 80.00 84.00 88.00

Subtotal 672,000.00 740,880.00 814,968.00
Sales 1,478,400.00 1,629,810.00 1,795,721.00
Note 2 - Cost of Goods Sold 2021 2022 2023

DIRECT MATERIALS
Raw Materials Inventory, Beg - 19,672.05 22,277.71
Add: Direct Materials Purchases (Schedule 1) 655,735.01 722,918.12 796,966.15
Total Raw Materials Available for Use 655,735.01 742,590.17 819,243.85
Less: Raw Materials Inventory, Ending (19,672.05) (22,277.71) (24,577.32)
Direct Materials Used 636,062.96 720,312.47 794,666.54
Add: DIRECT LABOR (Schedule 2) 69,875.20 73,440.96 76,565.60
Add: OVERHEAD (Schedule 3) 77,745.00 85,147.75 93,298.25
Cost of Goods Sold 783,683.16 878,901.18 964,530.39
Note 3 - Employees Benefits 2021 2022 2023

SSS and EC Premiums Expense (Payroll) 25,980.00 27,510.00 29,550.00
PAGIBIG Premiums Expense (Payroll) 4,800.00 4,800.00 4,800.00
Philhealth Premiums Expense (Payroll) 8,400.00 9,600.00 9,600.00
Employees Benefits 39,180.00 41,910.00 43,950.00
Note 4 - Rent Expense 2021 2022 2023

Total Monthly Rent 10,000.00 11,000.00 12,100.00
Number of Months in a Year 12 12 12
Total Annual Rent 120,000.00 132,000.00 145,200.00
Multiply: Allocated to Selling and Administrative 50.00% 50.00% 50.00%
Rent Expense 60,000.00 66,000.00 72,600.00
84
Appendix C (continued)
Note 5 - Utilities Expense 2021 2022 2023

Monthly Electricity 795.00 874.00 962.00
Monthly Water 294.00 324.00 356.00
Monthly Internet 999.00 1,098.00 1,208.00
Total Monthly Utilities 2,088.00 2,296.00 2,526.00
Total Annual Utilities 25,056.00 27,552.00 30,312.00
Multiply: Allocated to Selling and Administrative 50.00% 50.00% 50.00%
Utilities Expense 12,528.00 13,776.00 15,156.00
Note 6 - Depreciation - Office Equipment and Furniture 2021 2022 2023

Chairs 298.00 298.00 298.00
Round Table 899.00 899.00 899.00
Wall fan 553.00 553.00 553.00
Computer Set with Printer 10,000.00 10,000.00 10,000.00
TOTAL PRICE 11,750.00 11,750.00 11,750.00
Less: 5% Salvage Value (587.50) (587.50) (587.50)
Depreciable Amount 11,162.50 11,162.50 11,162.50
Useful Number of Years 5 5 5
Depreciation - Office Equipment and Furniture 2,232.50 2,232.50 2,232.50
Note 7 - Office Supplies Expense 2021 2022 2023

Note Book 48.00 50.50 53.00
Pen 60.00 63.00 66.25
Daily Time Card 32.75 34.50 36.25
Correction Tape 45.00 47.25 49.50
Staple wire 25.00 26.25 27.50
Stapler 50.00 52.50 55.25
Log Book 255.00 267.75 281.25
Calculator 110.00 115.50 121.25
TOTAL 625.75 657.25 690.25
Add: Previous Balance of Supplies - 62.50 72.00
Less: Office Supplies on hand at year end (62.50) (72.00) (76.25)
Office Supplies Expense 563.25 647.75 686.00
Note 8 - Cleaning Supplies Expense 2021 2022 2023

Door Mat 70.00 73.50 77.25
Rug 60.00 63.00 66.25
Dish Washing Liquid 125.00 131.25 137.75
Sponge And Scrub 50.00 52.50 55.25
Dust Pan And Broom 175.00 183.75 193.00
Trash Bin 250.00 262.50 275.75
Mop 299.00 314.00 329.75
Pail 150.00 157.50 165.50
Trash Bag 150.00 157.50 165.50
TOTAL 1,329.00 1,395.50 1,466.00
Add: Previous Balance of Supplies - 133.00 152.75
Less: Cleaning Supplies on hand at year end (133.00) (152.75) (161.75)
Cleaning Supplies Expense 1,196.00 1,375.75 1,457.00
85
Appendix C (continued)
Note 9 - Permits and Licenses Expense 2021 2022 2023

DTI 530.00 530.00 530.00
Fire Protection 500.00 500.00 500.00
Business License 600.00 600.00 600.00
Solid Waste Management 150.00 150.00 150.00
Sanitation 300.00 300.00 300.00
Permits and Licenses Expense 2,080.00 2,080.00 2,080.00
Note 10 - Advertising and Promotions Expense 2021 2022 2023

Radio Advertisements 15,000.00 15,750.00 16,538.00
Social Media Advertisements 4,200.00 4,410.00 4,631.00
Tarpaulin 500.00 525.00 551.00
Advertising and Promotions Expense 19,700.00 20,685.00 21,720.00
Note 11 - Percentage Taxes Expense 2021 2022 2023

Gross Sales 1,478,400.00 1,629,810.00 1,795,721.00
Percentage Tax Rate: 1% 1% 1%
Advertising and Promotions Expense 14,784.00 16,298.10 17,957.21
86
Appendix D
Notes to Balance Sheet
2021 2022 2023

Note 12 - Cash and Cash Equivalent
Cash in Bank 248,142.55 321,009.75 413,012.51
Petty Cash 20,000.00 20,000.00 20,000.00
Cash and Cash Equivalent 268,142.55 341,009.75 433,012.51
2021 2022 2023

Note 13 - Prepaid Rent
2 Months Rent Deposit 20,000.00 20,000.00 20,000.00
1 Month Rent Advance 10,000.00 - -
Prepaid Rent 30,000.00 20,000.00 20,000.00
2021 2022 2023

Note 14 - Office Supplies
Beginning Balance 625.75 62.50 72.00
Add: Purchases - 657.25 690.25
Total 625.75 719.75 762.25
Less: Office Supplies Used (90%) (563.25) (647.75) (686.00)
Office Supplies 62.50 72.00 76.25
2021 2022 2023

Note 15 - Cleaning Supplies
Beginning Balance 1,329.00 133.00 152.75
Add: Purchases - 1,395.50 1,466.00
Total 1,329.00 1,528.50 1,618.75
Less: Office Supplies Used (90%) (1,196.00) (1,375.75) (1,457.00)
Cleaning Supplies 133.00 152.75 161.75
87
Appendix D (continued)
2021 2022 2023

Note 16 - Office Equipment and Furniture (Net)
Chairs 298.00 298.00 298.00
Round Table 899.00 899.00 899.00
Wall fan 553.00 553.00 553.00
Computer Set with Printer 10,000.00 10,000.00 10,000.00
TOTAL PRICE 11,750.00 11,750.00 11,750.00
Less: Accumulated Depreciation - 2,232.50 4,465.00
Less: Current Year's Depreciation 2,232.50 2,232.50 2,232.50
Office Equipment and Furniture (Net) 9,517.50 7,285.00 5,052.50
2021 2022 2023

Note 17 - Production Equipments (Net)
Glass Chest Freezer 18,500.00 18,500.00 18,500.00
Heat Sealer Machine 800.00 800.00 800.00
TOTAL PRICE 19,300.00 19,300.00 19,300.00
Less: Accumulated Depreciation - 3,667.00 7,334.00
Less: Current Year's Depreciation 3,667.00 3,667.00 3,667.00
Production Equipments (Net) 15,633.00 11,966.00 8,299.00
2021 2022 2023

Note 18 - Utilities Payable
Monthly Water 294.00 324.00 356.00
Monthly Internet and Telephone 999.00 1,098.00 1,208.00
Utilities Payable 2,088.00 2,296.00 2,526.00
2021 2022 2023

Note 19 - SSS and EC Premiums Payable
SSS Employee's Share (Payroll) 1,395.00 1,462.50 1,552.50
SSS Employer's Share (Payroll) 2,635.00 2,762.50 2,932.50
EC Employer's Share (Payroll) 60.00 60.00 60.00
SSS and EC Premiums Expense 4,090.00 4,285.00 4,545.00
88
89
Appendix D (continued)
2021 2022 2023

Note 20 - Philhealth Premiums Payable
Employee's Share (Payroll) 1,050.00 1,200.00 1,200.00
Employer's Share (Payroll) 1,050.00 1,200.00 1,200.00
Philhealth Premiums Expense 2,100.00 2,400.00 2,400.00
2021 2022 2023

Note 21 - PAGIBIG Premiums Payable
Employee's Share (Payroll) 489.60 494.08 498.80
Employer's Share (Payroll) 489.60 489.60 498.80
PAGIBIG Premiums Expense 979.20 983.68 997.60
2021 2022 2023

Note 22 - Withholding Tax Payable
Monthly Rent 10,000.00 11,000.00 12,100.00
Withholding Tax Rate 5% 5% 5%
Withholding Tax Payable 500.00 550.00 605.00
2021 2022 2023

Note 23 - Income Tax Payable
Income Tax of the Current Year 48,660.93 55,986.52 70,234.47
Income Tax of the Previous Year - 12,165.23 13,996.63
Less: Portion Paid (36,495.70) (54,155.12) (66,672.48)
Income Tax Payable 12,165.23 13,996.63 17,558.62
2021 2021 2022

Note 24 - Percentage Tax Payable
Percentage Tax from Sales 14,784.00 16,298.10 17,957.21
Vat Due 14,784.00 16,298.10 17,957.21

Add: VAT Payable from Previous Period - 3,696.00 4,074.53
Less: Portion Paid (11,088.00) (15,919.58) (17,542.43)
Percentage Tax Payable 3,696.00 4,074.53 4,489.30
90
Appendix E
Schedule
Schedule 1 - Direct Materials Purchases 2021 2022 2023

Estimated Number of Crab Meat Snacks Units To Be
2,769 2,907 3,052
Made Annually
Multiply: Material Cost per Unit 101.42 106.50 111.82
Subtotal 280,843.85 309,582.42 341,275.48
Estimated Number of Chips Units To Be Made

8,652 9,085 9,539
Annually
Multiply: Material Cost per Unit 43.33 45.50 47.77
Subtotal 374,891.16 413,335.70 455,690.67
Direct Materials Purchases 655,735.01 722,918.12 796,966.15
Schedule 2 - Direct Labor 2021 2022 2023

Annual Salaries Expense 53,760.00 56,448.00 59,280.00
13th Month Pay 4,480.00 4,704.00 4,940.00
Total Employee Benefits 11,635.20 12,288.96 12,345.60
Direct Labor 69,875.20 73,440.96 76,565.60
Schedule 3 - Total Overhead 2021 2022 2023

Rent Expense allocated for Production
Total Monthly Rent 10,000.00 11,000.00 12,100.00
Multiply: Allocated to Production 50.00% 50.00% 50.00%
Rent Expense allocated for Production 60,000.00 66,000.00 72,600.00
91
Appendix E (continued)
Utilities Expense allocated for Production

Monthly Water 294.00 324.00 356.00
Monthly Internet 999.00 1,098.00 1,208.00
Total Monthly Utilities 2,088.00 2,296.00 2,526.00
Multiply: Allocated to Production 50.00% 50.00% 50.00%
Utilities Expense allocated for Production 12,528.00 13,776.00 15,156.00
Kitchen Tools and Utensils

Mixing Bowl 476.00 523.50 575.75
Kitchen Utensils Set 316.00 347.50 382.25
Cooking Utensils Set 450.00 495.00 544.50
Measuring cups and spoons 308.00 338.75 372.75
Kitchen Tools and Utensils 1,550.00 1,704.75 1,875.25
Depreciation - Production Equipments

Glass Chest Freezer 18,500.00 18,500.00 18,500.00
Heat Sealer Machine 800.00 800.00 800.00
TOTAL PRICE 19,300.00 19,300.00 19,300.00
Less: 5% Salvage Value (965.00) (965.00) (965.00)
Depreciable Amount 18,335.00 18,335.00 18,335.00
Useful Number of Years 5 5 5
Depreciation - Production Equipments 3,667.00 3,667.00 3,667.00
Rent Expense allocated for Production 60,000.00 66,000.00 72,600.00

Utilities Expense allocated for Production 12,528.00 13,776.00 15,156.00
Kitchen Tools and Utensils 1,550.00 1,704.75 1,875.25
Depreciation - Production Equipments 3,667.00 3,667.00 3,667.00
Total Overhead 77,745.00 85,147.75 93,298.25
92
Appendix F
Employers/Employees Contributions
Monthly Gross Less: Employee's Contributions

Position Net Pay
Pay SSS PAGIBIG PhilHealth
Financial Manager 7,800.00 315.00 100.00 175.00 7,210.00
Operations Manager 7,150.00 270.00 100.00 175.00 6,605.00
Marketing Manager 1 7,150.00 270.00 100.00 175.00 6,605.00
Marketing Manager 2 7,150.00 270.00 100.00 175.00 6,605.00
Crab shell Extractor 2,240.00 135.00 44.80 175.00 1,885.20
Errand Person 2,240.00 135.00 44.80 175.00 1,885.20
MONTHLY TOTAL 33,730.00 1,395.00 489.60 1,050.00 30,795.40
ANNUAL TOTAL 404,760.00 16,740.00 5,875.20 12,600.00 369,544.80
Employer's Contributions
Position Total
SSS EC PAG-IBIG Phil Health
Financial Manager 595.00 10.00 100.00 175.00 880.00
Operations Manager 510.00 10.00 100.00 175.00 795.00
Marketing Manager 1 510.00 10.00 100.00 175.00 795.00
Crab shell Extractor 255.00 10.00 44.80 175.00 484.80
Errand Person 255.00 10.00 44.80 175.00 484.80
MONTHLY TOTAL 2,635.00 60.00 489.60 1,050.00 4,234.60
ANNUAL TOTAL 31,620.00 720.00 5,875.20 12,600.00 50,815.20
Total Labor Cost (2021)

Salaries Expense 404,760.00
Employer's Contributions 50,815.20
13th Month Pay 33,730.00
Annual Total 489,305.20
93
Appendix F (continued)
EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Financial Manager 595.00 10.00 100.00 175.00 880.00
Operations Manager 510.00 10.00 100.00 175.00 795.00
MONTHLY TOTAL 2,125.00 40.00 400.00 700.00 3,265.00
ANNUAL TOTAL 25,500.00 480.00 4,800.00 8,400.00 39,180.00
EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Crab shell Extractor 255.00 10.00 44.80 175.00 484.80
Errand Person 255.00 10.00 44.80 175.00 484.80
MONTHLY TOTAL 510.00 20.00 89.60 350.00 969.60
ANNUAL TOTAL 6,120.00 240.00 1,075.20 4,200.00 11,635.20
94
Appendix G
Utilities Expense
Utility Usage Amount Consumed/ Month
Water 15 m3 294.00
Electricity 75kwh 795.00
Internet 999.00
Total 2,088.00
Appendix H
Power and Light
Unit
Monthly
Description Cost/m3 Consumption
Consumption
(m3)
Water 19.6 15 294.00
Total 294.00
95
Appendix I
Power and Light
Wattage Estimated Total

Number Total Hours Price/
/ KwH used Monthly
of Unit Wattage /Day KwH
Unit Monthly Payment
Fluoresce-
8 15 160 7 19 11 209
nt Lamp
Computer
1 35 45 7 20 10 200
Set
Heat
Sealing 1 15 30 7 10 5.6 56
Machine
Glass
Chest 1 335 335 7 33 10 330
Freezer
Total 795.00
Appendix J
Permit and Licensing Monthly/Yearly
DTI 530
Fire Protection 500
Business License 600
Solid Waste Management 150
Sanitation 300
Total 1,780.00
Permit and Licensing

96
Appendix K
Business Location
97
Appendix L
Time Table
96
98
Appendix K
Floor Plan
97
98
CURRICULUM
VITAE
99
JUVY MAE D. TABUGON

Purok-3 Magsaysay St.,
Tabon, Bislig City
0995-151-8604
maetabugon715@gmail.com
Objective:
To be able to be part of the company that allows to foster professional

growth and rewarding career that enables me to utilize my skills and
knowledge.
PERSONAL DATA
Date of Birth : July 15, 1999
Place of Birth : Tabon, Bislig City
Status : Single
Gender : Female
Nationality : Filipino
Age : 21 years old
Religion : Roman Catholic
EDUCATIONAL ATTAINMENT
Tertiary : De La Salle John Bosco College

La Salle Drive, Mangagoy, Bislig City
Major in Marketing Management – 2018-present
Secondary : Tabon M. Estrella National High School
P-4 Sugala St., Tabon, Bislig City
S.Y. 2012-2018
Primary : Plaza Central Elementary School
P-4A Plaza St., Tabon, Bislig City
S.Y. 2006-2012
AFFILIATIONS
Junior Executive Club
Auditor
2019-2020
100
SEMINARS AND TRAININGS ATTENDED
Entrepreneurial Learning Session July 16, 2018
2018 Business Week’s Learning Session August 16, 2019

Bislig Chamber of Commerce
CARAGA Student Business Seminar and February 11-12, 2020

Research Conference
Father Saturnino Urios University
Butuan City
CHARACTER REFERENCES
CORAZON R. MANGUBAT
Vice-Chancellor of Academics and Research
La Salle Drive, John Bosco District, Mangagoy, Bislig City
ROGELIO P. MIRA
College Instructor

College Instructor
JUVY MAE D. TABUGON

Applicant
101
JONAH PRAISE D. FEJO

Purok-3A Castillo Village
0916-539-2778
jonahfejo77@gmail.com
Objective:
To be able to improve my skills and build a good relationship to the

people. And create employee reliability in a workplace atmosphere of
discipline that benefits both employer and employees.
PERSONAL DATA
Date of Birth : February 22, 2000
Place of Birth : Mangagoy, Bislig City
Status : Single
Gender : Female
Age : 21 years old
Religion : Pentecost

Secondary : De La Salle John Bosco College
S.Y. 2012-2018
Primary : De La Salle John Bosco College
S.Y. 2006-2012

102


Research Conference
Butuan City
CORAZON R. MANGUBAT
ROGELIO P. MIRA
College Instructor

College Instructor
JONAH PRAISE D. FEJO

Applicant
103
MARIE FHE B. TARIMAN

P-3 John Bosco District
0945-450-7238
mariefhe.tariman99@gmail.com
Objective:
To be able to develop and enhance my capacity to work with

competence and quality output in the future.
PERSONAL DATA
Date of Birth : September 26, 1999
Status : Single
Gender : Female
Age : 21 years old

Secondary : Andres Soriano Colleges of Bislig
Andres Soriano Ave., Mangagoy, Bislig City
S.Y. 2012-2018
Primary : Mangagoy North Elementary School
S.Y. 2006-2012

104


Research Conference
Butuan City
CORAZON R. MANGUBAT
ROGELIO P. MIRA
College Instructor

College Instructor
MARIE FHE B. TARIMAN

Applicant
105
RONNEL T. TAN
P-13 Mancarugo Bliss Project
Poblacion, Bislig City
0907-408-0971
jobals20165@gmail.com
Objective:
To be able to apply my knowledge and understanding as well as

to enhance my skills. Also, to become a good contribution to the company
in the future.
PERSONAL DATA
Date of Birth : July 10, 1996
Status : Married
Gender : Male
Age : 25 years old

Major in Financial Management – 2018-present
Secondary : De La Salle John Bosco College
S.Y. 2009-2013
Primary : Mangagoy Central Elementary School
S.Y. 2008-2019

106


Research Conference
Butuan City
CORAZON R. MANGUBAT
ROGELIO P. MIRA
College Instructor

College Instructor
RONNEL T.TAN
Applicant
107

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BISLIG CITY’S COMFORT FOOD: A FEASIBILITY STUDY

Presented to the Faculty of the

College of Business and Management

De La Salle John Bosco College

Mangagoy, Bislig City

of the Requirements for the Degree

Bachelor of Science in Business Administration

Jonah Praise D. Fejo

Juvy Mae D. Tabugon

Marie Fhe B. Tariman

This undergraduate thesis entitled: “BISLIG CITY’S COMFORT

FOOD: A FEASIBILITY STUDY”, prepared and submitted by Tabugon,

et al., in partial fulfillment of the requirements for the degree of Bachelor

of Science in Business Administration, has been examined and is

recommended for acceptance and approval of ORAL EXAMINATION.

MR. ROGELIO P. MIRA

Approved by the Committee on Oral Examination with grade of _____.

MRS. RAQUEL L. BAUTISTA, CPA

PHANDORA V. CUNAHAP, MBA. CORAZON R. MANGUBAT, Ed.D

Accepted and approved in partial fulfillment of the requirements

for the degree of Bachelor of Science in Business Administration.

PHANDORA V. CUNAHAP, MBA

who showered us with so much blessings that brought to the success of

support and help from many individuals. It is a pleasure to express our

We would also like to thank Mrs. Raquel Bautista, Mrs. Corazon R.

Mangubat, and Ms. Phandora V. Cunahap, for sitting as our panelists

roller coaster journey of doing this research. Your prayers,

all appreciated. Our heartfelt thanks.

support system and source of our inspirations,

Charlito and Liza Tabugon,

Fe Tariman, Dina Hussein and Leonila Enriquez,

Jesus and Raquel Fejo,

Rowena Tion, Arnel and Owen Tan

And lastly, to Almighty God, the author and giver of

knowledge, strength, and wisdom who

made it possible. All of these,

are gift to thee.

List Of Tables viii

Crab Meat Snacks FAB 5

Sweet Potato Chips FAB 5

Outlook and Trends 7

Strategies for Competitive Advantage 8

Opportunity that can be Exploited 9

A.1 Market Analysis 10

A.2 Market Condition

A.4 Target Market 24

A.5 Product Positioning 24

A.6 Market Segmentation 24

A.7 Marketing Strategies

B.1 Size of the Facility 27

a. Crab Meat Snacks 30

b. Sweet Potato Chips 31

a. Crab Meat Snacks 32

b. Sweet Potato Chips 33

B.4 Equipment and Tools Used 34

B.5 Waste Disposal 35

C.1 Financial Assumptions 36

C.2 Projected Production Cost 38

C.3 Total Project Cost 39

C.4 Initial Working Capital 41

C.5 Financial Statement

C.5.1 Income Statement 42

C.6 Cash Flow Statement 44