I.

Executive Summary

a. Project Name Manufacturing of Charcoal Briquettes in

Zamboanga City

b. Location Waray-waray after Barangka River Bridge.

Upper Bunguiao. Zamboanga City.

c. Proponent Sampang, Fatima Azza

Adjail, Farnisha
Lapitan, Nicole Dorothy
Soriano, Joshua

d. Project Description CharCubes is a business in Zamboanga

City that manufactures charcoal briquettes
that are compressed blocks of coal dust
made out of coconut shells used for fuel
and kindling to start a fire. CharCubes
briquettes are different from the lump coal
we are used to as they provide stable burn,
maintain a steady temperature for a longer
period of time, and could be reignited a
second time after use.

e. Objective of the Project - Generate income

- Introduce a new product in the market -
charcoal
cubes/briquettes
- Provide job opportunities in Zamboanga
City

f. Project Benefits

g. Project Cost

h. Project Funding

i. Contingency Plan
II. Introduction

a. Nature of the business

CharCubes is a manufacturing business that processes raw materials, such as coconut shells
and cassava binder, into square shaped charcoal briquettes in Zamboanga City. The method of
production allows us to produce large quantities per production to use our resources
efficiently. CharCubes are essentially beneficial to consumers, such as grilling businesses and
households, as it provides an alternative to lump charcoal – these briquettes are cheaper,
ignitable for 3 hours depending on their usage, smoke-free and more convenient to use.
b. Background of the Study
The idea of charcoal briquette was inspired by a Youtube video posted by Business Insider
that is filmed in India. With the help of Philippine Coconut Authority (PCA) in Zamboanga,
the researchers were able to inquire and expand their knowledge regarding this study.
According to a news article posted by Rebecca Cairns in CNN’s website, The Philippines is
one of the top producers of coconuts and coconut products in the world, and in every year, an
estimated 9 billion husks are burned or left in the field, where they can take years to
biodegrade. The researchers have also observed that there is coconut waste spotted around the
city, and this inspired the researchers to come up with a way to turn biomass waste into a
recycled product that could benefit proponents, consumers, and society. Upon researching
about the product, the proponents found out that charcoal briquette is more eco-friendly
compared to the usual charcoal that is in the market since it releases less smoke and is
cheaper and reusable up to 3hours.
c. Significance of the Study
This study will benefit the following:
● Grilling Businesses
As these businesses primarily use charcoal to generate income, this study will introduce and
give them the necessary information to find a new efficient and innovative alternative to their
usual charcoal.

● Business Students
With this study, students who are taking up business related courses could use this as a
reference for academic purposes. They could gain and learn techniques, ideas, and strategies
from this study.
 ● Future Researchers
This study will serve as a reference and guide for the researchers in the field of business as it
will give them the information needed for them to make a study.

d. Objectives of the Study

The study is to attain the following:
- To determine if manufacturing of Charcoal Briquettes is feasible in Zamboanga City;
- To be able to determine if the proposed project is profitable;
- To determine the required capital needed for the project;
- To be able to formulate a marketing strategies in promoting the project; and
- To be able to determine the market position of the proposed project.

e. Scope and Limitation of the Study

The proponents detained their target market to lechon baboy roasting businesses in
Zamboanga City. This study is limited to the licensed and registered lechon baboy roasting
businesses within the 5 kilometer radius of barangay Sta. Maria. The marketing of
CharCubes’ charcoal briquettes will be focused on the lechon baboy roasting businesses
within the scope, excluding the other potential market outside these respective places and
businesses of similar nature, like grilling businesses and Inasalan restaurants, that could be
interested in the charcoal briquettes CharCubes will be manufacturing.

Furthermore, this feasibility study will analyze the marketing, management, technical,
socio-economic, and financial aspect of the proposed study.

The marketing aspect will focus on the proposed products' projected demand and supply for
their 3 year operation, its price, marketing program, and projected sales.

The management aspect will focus on how the business will function and operate with its
management. It will include the type of business organization the proponents plan on
establishing, the organizational chart, a clear and detailed identification of duties and
responsibilities of the employees, qualifications of the people to be involved in the business,
and compensation.

The technical aspect will be focusing on the production and administrative operation of the
proposed business. This area will include the location and layout of the production, its
process and size, utility schedule, acquisition of raw materials, as well as office supplies
needed. The waste disposal management and factors that may affect the operation process
will also be included in this segment.

The socio-economic aspect will focus on the duties and responsibilities of CharCubes to its
employees, as well as its impact and benefit to the local people, municipality, environment,
community, and the country's economy as a whole.

The financial aspect will detail the funding of the proposed business. This part of the study
will determine how much is needed to establish a charcoal briquetting business. It will
provide a three-year projected financial statement that will include the financial position,
income statement, cash flow, as well as financial analysis and ratios.

f. SWOT (Strength, Weaknesses, Opportunities, and Threats)

Strength Weaknesses
- Location of the plantation - Lack in capitalization
- Knowledge on the production of the - The proposed product is new to the
product market
- the proposed product is reusable - The proposed business relies
- The proposed product emits less primarily on biomass waste
smoke -
-

Opportunities
- Creates employment
- Creates a new innovative, efficient,
and cheaper alternative to charcoal
Threats
- Electric fluctuations in the city
- Weather conditions that could affect
the delivery of supplies and products

g. Methodology
The proponents used Quantitative Research Method and Random Sampling Method in
gathering the needed data or information, such as the following:
In determining the number of respondents needed for the survey, the proponents used the data
found in the 2022 Licensed Businesses masterlist provided by the City Hall's licensing office,
as well as local websites that provide a list of known Businesses in Zamboanga City. 32
lechon roasting businesses located within the 5 kilometer radius of Sta. Maria were identified
from the data gathered, and computed the sample size using Slovin's Formula:
 where: N= Total Population of the Target Market (lechon baboy roasting
businesses within the 5 kilometer radius of Sta. Maria) e= Marginal
Error

=_____32_____
1 + 32 (5%) 2
= 30 respondents

In gathering the necessary data for this study, the proponents formulated a survey
questionnaire which was answered in person by the respondents together with a letter that
indicated the intention of the proponents in conducting the survey and a confidentiality
notice.
The proponents also visited the office of Philippine Coconut Authority R9- Zamboanga City
located at Center San Ramon, Zamboanga City last November 16, 2022 and interviewed the
OIC Division Chief Engr. Clifford Tagatac. In this visit and interview, the proponents were
given a detailed and informative tour about charcoal briquetting. The proponents were shown
the different equipment used in making charcoal briquettes. A step by step process video
posted on Youtube was also used to gather more information as to how charcoal briquettes
are used. This information was used as an inspiration in the manufacturing process of this
study.

h. Definition of Terms
● Briquettes- is a compressed block of coal dust or other combustible biomass
material used for fuel and kindling to start a fire.
● Lump Charcoal- Charcoal made from whole pieces of hardwood is called
lump charcoal.
● Kindling- is easily combustible material for starting a fire.
● Binder- A binder is simply something which holds the charcoal briquette
together while it is being moved about or while it is burning.
● Paya - coconut shell
III. Marketing Aspect

A. Market Description
CharCubes’ are pressed blocks made of coconut shell, these briquettes are gone
through a process, one is binding by using binders such as starch, it is commonly used in
igniting and maintaining a fire and mostly used in grilling and in other modes of
cooking.Since CharCubes are compacted blocks, they are denser and more concentrated fuel
source as compared to lump charcoals and coconut shell charcoals. Furthermore, CharCubes
are hotter, slow-burning, smokeless, ashless and long lasting that could be used up to 3 hours.
CharCubes has the advantage of an abundant supply of raw materials, it only needs simple
technology, convenient in operation, and low cost.

CharCubes’ (Charcoal Briquettes) are not yet available in the market in Zamboanga
City, where its market only offers a charcoal that is made of coconut shell and wood for it
will be an opportunity for the business to offer. CharCubes is also considered as an
eco-friendly product that does not destroy the society due to its primary raw material is
combustible biomass material, the coconut shell which is already available around
Zamboanga City.

The primary target market of the study are the licensed lechonan businesses within the
scope that use different types of charcoal in Zamboanga City.

B. Nature of Demand

In the 2022 licensure data of new and renewed businesses in Zamboanga City, there
are a total of 32 lechon baboy businesses that use different types of charcoal on their
business operations that are licensed and registered and are also within the scope of5km
radius center of barangay Sta. Maria, Zamboanga City with 5 registered lechonan businesses,
Tumaga has 3, San Roque has 4, Tetuan has 9, Pasonanca has 3, Tugbungan has 1, Canelar
has 1, Guiwan has 2, Divisoria has 2, Governor Ramos has 1, and Putik has 1. Thereby, 30 of
total lechonan businesses will represent the total registered lechonan businesses in
Zamboanga City within the scope of 5km radius.

Table 1. What kind of Charcoal are used

What kind of charcoal do you usually use?

Choices # of Respondents %

Paya/Shell 0 0%
 Kahoy/wood 30 100%

Total 30 100%

Table 1 above shows that out of 30 respondents, 100% or 30 of the respondents are
using Kahoy/wood Charcoal, whereas 0% or 0 out of 30 respondents are Paya/Shell
Charcoal because kahoy/wood charcoal is much cheaper, lights and burns fast than
Paya/Shell Charcoal.

Table 2. Where charcoals are usually bought

Where do you usually purchase charcoal?

Choices # of Respondents %

Malls 0 0%

Market 7 23.3%

Direct Supplier 23 76.7%

Total 30 100%

Table 2 above shows where the respondents usually buy their charcoals wherein 23 or
76.7% of the 30 respondents get their charcoals from Direct Supplier because it is much more
cheaper especially when it is bulked orders, whereas 7 or 23.3% out of 30 respondents
usually buy their charcoal from the Market/Palengke because it is convenient and accessible
for them to purchase if ever they ran out of charcoals while operating their business, and none
of the respondents are buying charcoals from the malls.

Table 3. Sacks of Charcoal consumed in a day

How many sacks do you consume in a day?

Choices # of Respondents %

1sack 0 0%

2 sacks 4 13.3%

3 sacks 3 10%

4 sacks 2 6.9%

5 sacks 8 26.7%

8 sacks 1 3.3%

10 sacks 6 19.9%
 15 sacks 4 13.3%

20 sacks 1 3.3%

70 sacks 1 3.3%

Total 30 100%

Table 3 above shows how many sacks of charcoal do respondents consume in a day,
where out of 30 respondents, 4 out of the respondents consume 2 sacks of charcoal a day, 3 of
them consume 3 sacks, 2 of them consume 4 sacks, 8 of them consume 5 sacks, 1 of them
consume 8 sacks. 6 of them consume 10 sacks, 4 of them consume 15 sacks, 1 of them
consumes 20 sacks, also 1 out of 30 respondents consumes 70 sacks of Charcoal a day. Thus,
respondents who consume 2-10 sacks of charcoal per day they most probably sell 2-10 lechon
baboy per day as well, since the average number of sacks of charcoal for them to cook a
lechon baboy is 1 sack, whereas respondents who consume 15-70 sacks per day are
businesses that produces a large numbers of lechon baboy per day.

Table 4. Cost spend for 1 sack of charcoal

How much do you usually spend for 1 sack of charcoal?

Choices # of Respondents %

200 1 3.3%

220 4 13.3%

230 2 6.7%

250 8 26.7%

300 7 23.3%

350 8 26.7%

400 0 0%

Total 30 100%

Table 4 shows how much do they usually spend for 1 sack of charcoal, where 1 out of
30 respondents usually spend 200 pesos per sack of charcoal, 4 of them spend 220 pesos, 2 of
them spend 230 pesos, 8 of them spend 250 pesos, 7 of them spend 300 pesos, and another 8
out of 30 respondents usually spend 350 pesos of charcoal per sack. Thus, the data shows
different prices of Kahoy/Wood charcoal since all of the respondents use kahoy/wood
charcoal, it may differ the prices from their different suppliers and sources of charcoal.
Table 5. Frequency of buying Charcoal
How often do you usually purchase charcoal?

Choices # of Respondents %

Weekly 17 56.7%

Twice a week 1 3.3%

Twice a month 8 26.7%

monthly 4 13.3%

Total 30 100%

Table 5 above shows that among 30 respondents, 17 of them usually purchase

charcoal weekly, 1 usually purchases charcoal twice a week, 8 answered twice a month, 4 of
them usually purchase charcoal monthly. The frequency level of the respondent regarding
purchasing charcoal for their business operation is necessary to know how much charcoal
should be supplied for them.

Table 6. Number of sack/s of charcoal purchased

How many sacks do you purchase?

Choices # of Respondents %

4 1 3.3%

5 1 3.3%

10 8 26.7%

15 2 6.6%

20 3 10%

25 1 3.3%

30 2 6.6%

35 2 6.6%

40 5 16.6%

50 1 3.3%

70 1 3.3%
 100 1 3.3%

200 1 3.3%

280 1 3.3%

Total 30 100%

Table 6 shows how much sack/s of charcoal do respondents purchase, where 1 out of
30 respondents buys 4 sacks, another 1 respondent buys 5 sacks, 8 of them buy 10 sacks, 2 of
them buy 15 sacks, 3 of them buy 20 sacks, 1 of them buys 25 sacks, 2 of them buy 30 sacks,
2 of them buy 35 sacks, 5 of them buy 40 sacks, 1 of them buys 50 sacks another 1 of them
buys 70 sacks, 1 of them buys 100 sacks and 1 out of them buys 280 sacks of charcoal. Thus,
respondents buy these numbers of charcoal either weekly, twice a week, bi-monthly or
monthly.

Table 7.
Are you able to reuse your charcoal multiple times?

Choices # of Respondents %

YES 2 6.7%

NO 28 93.3%

Total 30 100%

Table 7 above shows if respondent’s usual charcoal could be used multiple times,
where 2 out of 30 total respondents answered YES which means they can use their
kahoy/wood purchased charcoal multiple times, and 28 out of 30 respondents said NO which
means, they could not use their purchased usual kahoy/wood charcoal multiple times after
use.

Table 8. Willingness to patronize Charcoal Briquettes

Are you willing to buy CharCubes, for 10kg per pack worth 550?

Choices # of Respondents %

YES 26 86.7%

NO 4 13.3%

Total 30 100%
 Table 8 above shows that out of 30 respondents, 86.7% or 26 of the respondents are
willing to patronize CharCubes’ Charcoal Briquettes because they want to lessen their cost
since 3.75 sacks of Kahoy/wood charcoal is equivalent to 1 sack of 10 kg Charcoal
Briquettes, and 4 or 13.3% out of total respondents does not want to patronize Charcoal
Briquettes because they want to stick using their usual kahoy/wood charcoal. Thus, this data
means, there is a positive market response and demand for the product.

Table 9. How many sacks of charcoal do you need for lechon?

How much do you usually spend for 1 sack of charcoal?

Choices # of Respondents %

1 sack 13 43.3%

1.5 sacks 17 56.7%

230 30 100%

Table 9 shows that out of 30 of total respondents, 13 of them use 1 sack of charcoal
per lechon baboy and 17 out of 30 total respondents use 1.5 sacks of charcoal per lechon
baboy.

C. Projected Demand

In conducting the survey to the target businesses of CharCubes, the proponents have
determined that the demand for charcoal is dependent on the demand for lechon baboy. The
demand for lechon baboy varies on the occasion and holidays there are in a month. The peak
months for the businesses are usually in December, January and May.

All months are normal months except the 3 months mentioned as peak months, the
average number of lechon baboy sold per day is 10. During peak months, the average number
of lechon baboy sold per day is at 20. 1 lechon baboy requires 1.5 sacks of charcoal.

Table 10: Normal and Peak Months of Demand for Charcoal

Normal Months (February to November) Peak Months (December to January)

Daily Sales per Business Daily Sales per Business

10 pcs of lechon baboy 20 pcs of lechon baboy

Sacks of charcoal needed per day Sacks of charcoal needed per day

20 sacks of charcoal 40 sacks of charcoal

 The percentage of demand for lechon baboy from the normal months to the peak
months rises at 200%. With this information, it is presumed that the demand for charcoal will
rise, as it is proportional to the demand of lechon baboy.

Table 11: Projected Demand for the next 3 years

PROJECTED DEMAND

NORMAL MONTHS(9 PEAK MONTHS (3

YEAR ANNUALLY
months) months)

1 31,977 63,954 95,931

2 32,712.47 65,425 98,137
3 33,464.86 66,930 100,395

D. Demand Analysis
Transfer to Competitive position
According to the licensed businesses data given to the proponents by the city licensing office,
the lechon roasting businesses have grown by 2.3%. Since the demand for charcoal depends
on the demand for lechon baboy, the proponents have decided to use this growth rate to
determine how much the demand of charcoal will increase for the next 3 years - the
calculated number of sacks of charcoal to be demanded is shown at the table above (Table
11).

E. Nature of Supply

The main suppliers of charcoal used by the lechon roasting businesses surveyed are the
market (wet markets, Sta. Cruz Bagsakan) and direct suppliers that are in contract with the
lechonan businesses.

Table 12: Suppliers and Monthly Purchases

NATURE OF SUPPLY
# of sacks
Name of Supplier purchased per Total per year
month
Market 113 1,356
Direct Supplier 4,410 52,920
Malls 0
Total 4,523 54,276
The table above shows how much sacks of charcoal are being purchased a month from the
suppliers of the surveyed businesses.

F. Projected Supply
Table 13. Projected Supply
PROJECTED SUPPLY
growth rate 2.30%
Year 1 54,276.00
Year 2 55,524.35
Year3 56,801.41

G. Supply Analysis

The proponents used 2.3% growth rate of lechonan in Zamboanga City according to
the source of licensing office provided by Zamboanga City Hall. Which indicates that
lechonan businesses in Zamboanga City have increased 2.3% from the past years. Thereby,
the supply of Charcoal Briquettes for the first year is 54,276, for the second year is 55,524.35
and for the third year is 56,801.41. These numbers of projected supply are multiplied by the
growth rate of lechonan businesses mentioned above which is 2.3% .

H. Market Share
The major competitor of the CharCubes is the existing supplier of wood charcoal, which is
mostly used by the target market, the lechonan. As illustrated above, the competitor holds
49.3% of the total demand. Out of 26,880 full capacity, 70% utilization rate was used to
compute the market share of charcoal briquette (CharCubes) in the industry, which gives
53,760 packs, which holds 15.4% of the total demand for charcoal. Therefore, 35.4% of the
total demand is unserved.

I. Demand and Supply Analysis

Table 14. Demand, Supply and Gap Analysis
Growth rate: 2.30%
YEAR DEMAND SUPPLY GAP
1 95,931 54,276 41,655
2 98,137 55,524 42,613
3 100,395 56,801 43,593

J. Competitive Position

Wood charcoal (kahoy) Charcoal Briquettes

P280 for 1 sack (18 kilos worth of charcoal) P550 for 10 kilos of charcoal briquettes

Ignition time of 1 hour Ignition time of 3 hours

Non-reusable, reduces to ash after every use Reusable, could be extinguished with water
and still be used once dried
According to the survey conducted, the businesses spend at least 300 pesos for 1 sack
of wooden charcoal. The wooden charcoals are often packed in 25 kg rice sacks but they do
not weigh an exact 25 kilos of charcoals; they usually only weigh 18 kilos. According to the
respondents, 1.5 sack of charcoal has an ignition time of 1 hour.

Charcoal briquettes could be ignited for 3 hours. Alongside with its long kindling
time, charcoal briquettes could also be reused even if it would be extinguished with water.
This means that if there will be leftover charcoal briquettes left in the roasting area overnight,
the charcoal briquettes could be reignited with no problem.

1 lechon baboy that weighs 20 kilos

Cooks for 1 hour
Requires 1.5 sacks of wood to be fully roasted
 Wood charcoal (kahoy) Charcoal Briquettes

1.5 sacks of wood x 280 pesos = 420 pesos 1 sack of charcoal briquettes x 550 pesos =
of charcoal to roast 1 lechon baboy that 550 pesos to cook 2 lechons baboy that
weighs 20 kilos weighs 20 kilos

CharCubes’ (charcoal briquettes) primary raw material is the paya or the coconut husk to
make a traditional wooden charcoal and turn it into innovative and more efficient kindlers.
Wooden charcoal’s ignition time usually only lasts up to 1 hour and cannot be used once
extinguished with water. Whereas, Charcoal Briquettes could be used upto 3 hours and
could be reused once extinguished by water.

Char Cubes' is much cheaper than the usual Wood Charcoal. In roasting the lechon baboy,
on average 20 kilos of pork, it needs 1.5 sacks of wooden charcoal and roast it for 1 hour.
Whereas, if 10kg of CharCubes’ (Charcoal Briquettes) were to be used, it could already
cook 2 pork lechons with an average size of 20 kilos, because the ignition time of Charcoal
Briquettes could last up to 3 hours.

Price difference, to cook a 20kg size of pork for 1.5 hours using Wooden Charcoal costs
420 pesos, whereas a 10kg Charcoal Briquettes can cook 2 lechons that costs 550 pesos.

It is cheaper to use 1 box of charcoal briquettes than 2 sacks of wood charcoal in roasting
lechon baboy. Because charcoal briquettes could burn for at least 3 hours, there will be
leftover briquettes that could be used in the next roast. The businesses could save 290 pesos
in roasting 2 lechons if they used charcoal briquettes instead of wood charcoal.
Economically, Charcoal Briquettes is eco-friendly since it is made out of mass waste which
is the coconut husk or paya.

K. Marketing Program

PRODUCT

CharCubes’ charcoal briquettes are organic and all natural coconut shell charcoal and
are made with pulverized charcoal that are compressed biomass to make coherent shapes, the
CharCubes provide a more consistent temperature and have less smoke than the traditional
carbon. Providing high energy efficiency and durability as CharCubes has an ignition time of
3 hours and could be reused even if extinguished by water. The CharCubes are available in 10
kg per sack.

PLACE

The product will be manufactured in Waray-waray after the Barangka River Bridge.
Upper Bungiao. Zamboanga City. The business does not require physical stores since the
business is manufacturing, the distribution of CharCubes will be through delivery and will be
distributed to various lechon baboy businesses in Zamboanga city.

PRICE
Price competition is the core element in the free economy, which is why in setting
prices for products various kinds of supply and demand forces show their behavior in the
general market. According to the lechonans, the wooden charcoal that is currently available
in the market is usually packed in a 50kg size sack. Charcoal briquette can last upto 3 hours
which is equivalent to 4.5 sacks of wooden charcoal that can cause around P1,050 which is
more expensive compared to a pack (10kg) of charcoal briquette which only costs P550 per
pack. With charcoal briquette costing P550 makes it more practical to use aside from it is
more eco-friendly compared to the wooden charcoal that is already existing in the market.

PROMOTION
CharCubes will utilize social media platforms like facebook, instagram and twitter.
However, most of the platforms, Facebook will be the focus in promoting the product since it
will be used as a tool for communicating the consumers and other inquiries of the customers.
CharCubes will also be promoting their product by going to lechon roasting businesses to
introduce their charcoal briquettes and let the business owners know that such product exists.

L. Projected Sales

Full Capacity: 5,376 boxes of 10kg of Charcoal Briquette

Projeted Projected
Year Utilization Rate Production Sales
2023 70% 3,763 2,069,760
2024 80% 4,301 2,365,440
2025 90% 4,838 2,661,120

CharCubes has an overall capacity of producing 5,376 boxes of 10 kilos briquettes per
year but will be producing according to the utilization rate to ensure the longevity of the
assets used in the production. To get the projected sales, the projected production per year is
multiplied by the selling price of 10 kg worth of charcoal briquettes that is 550 pesos per box.
For the first operating year, the utilization rate is 70% which means the expected finished
product for the first year is 3,763, and the projected sales is P2,069.00, as shown in the table
above.

5,760 is the total boxes of CharCubes (Charcoal Briquettes) produced per year, where
per box weighs 10kg. Thus, 5,376 is the 100% or the full capacity of the projected
production.
IV. Technical Aspect

A. Product Description

CharCubes’ charcoal briquettes are compressed block of coal dust made out of
coconut shells and are molded into cubed bricks. These cubed charcoal briquettes are used for
fuel and kindling to start a fire. These briquettes could be used in cooking, barbecue, and
industrial purposes.

Size 25mm x 25mm per 1 piece of charcoal briquettes

Weight 13.8g per 1 piece of charcoal

Color Black

Packaging CharCubes’ charcoal briquettes are sold 10 kilos and are packed
in a carton box

The logo of the shop is printed on a matte paper sticker and is

pasted on the front of the carton box.

Pricing 10 kilos of CharCubes is sold for P550.00

B. Manufacturing Process
The whole manufacturing process of producing charcoal briquettes takes about 3 to 4 days. The output
of a continuous operation is about 280 kilograms of briquettes per production.

Step 1: Carbonization
Machinery: Kiln
Carbonization time: 7 hours
# of employees needed: 2
Capacity:

The charcoal can be harvested the next day.

Step 2: Grinding
Machinery: charcoal grinder
Output: 20 kg of charcoal every 30 minutes
# of employees needed: 1-2

Step 3: Mixing
Machinery: Mixer
Output: 8 kg of mixed charcoal every 10 minutes
# of employees needed: 1

Step 4: Moulding
Machinery: Motorized briquetting machine
Output: 1 ton of briquette per day
# of employees needed: 2-3

Step 5: Moulding
Machinery: Oven
Time needed: 3 hours per 50 kg of briquettes
# of employees needed: 1
 C. Packaging

The finished product, charcoal briquettes that are 25mm x 25mm in size and weighs
13.8 grams per piece, are packed by 10 kilos and are packaged in a double walled corrugated
box supplied AC Customized boxes . Each box with the dimensions of 12 inches in length by
10 inches in width by 6 inches in height is priced at 30 pesos and CharCubes will be
purchasing 3,000 pieces of boxes per year.

D. Business Transaction Flow Chart

E. Plant Size
 The land area allotted for Charcrubes measures a total of 400 square meters which,
300 square meters is apportioned for the production area, 75 sqm is allocated for storage, and
25 sqm is for administration office area.

F. Machinery and Equipment

Machinery Description Picture Source Qty Total Price

and
Equipment

Kiln Used for the PCA 2 P 10,000.00

carbonization of
the dry coconut
shells

Charcoal Pulverizes the PCA 1 P 30,000.00

Grinder charcoaled
coconut shells into
fine powder

Mixer Used to mix the PCA 1 P 87,184.00

powdered
charcoal, binder,
and water
Motorized Molds the PCA 1 P
Briquetting softened charcoal 194,529.00
Machine mixture into cubes

Oven Used to bake the PCA 1 P 5,000

briquettes and
hardens the cubes

Delivery To pick-up raw ISUZU 1 P 475,000

Vehicle materials and
deliver the
products to the
customers

Generator To have an NMN 1 85,000

alternative power Petroleum
in case there is a Products
power shortage. Trading

TOTAL
P886,713

G. Furniture and Fixtures

Particulars Image Functions Source Qty Cost

Table For doing Budget Wise 1 P 3,600

office work (Sangali)
purposes.

Plastic For seating Budget Wise 5 P 1,450

Chairs (Sangali)
Printer To be used KCC mall de 1 8,000
for printing ZC
documents

Computer To be used KCC mall de 1 20,000

for office ZC
purposes.

Total P28,000

H. Office Supplies
Total Cost of Production, Office and Sanitary Supplies Used for the Business
Establishment
IMAGE PARTICULA FUNCTION/ SUPPLIER UNIT QUA TOTAL
R S COST NTI COST
(PHP) TY (PHP)

MATCHES To be used in BudgetWise, 30 2 60

starting a fire Sangali
for branch
carbonizing
purposes.

Face Mask To be used BudgetWise, 100 3 300

during the Sangali
production branch
and/or inside
the business
establishment

Labor Gloves To be used BudgetWise, 50 (per 5 250

during the Sangali pair)
production branch

HBW Ball pen To be used in BudgetWise, 120 120

administration Sangali 1(12
or branch pcs/b
management ox)
office.

Record Book To be used in BudgetWise, 70 2 140

recording Sangali
important data branch
 Official To be used for Printing 70 (per 3 210
Receipt Business Press, ZC – bundle)
Transactions Bureau of
Internal
Revenue
Approved

Paper clips To clip or BudgetWise, 35 2 70

hold papers Sangali
branch

Stapler To staple and BudgetWise, 140 1 140

attach Sangali
important branch
documents

Scotch Tape To be used in BudgetWise, 30 20 600

packaging the Sangali
product branch

Folders To organize BudgetWise, 10 5 50

documents Sangali
branch

BondPaper For printing BudgetWise, 210 1 210

and writing Sangali
purposes branch

TOTAL 2150
COST

CLEANING SUPPLIES
IMAGE PARTICULAR FUNCTION/ SUPPLIER UNIT QUANTI TOTAL
S COST TIY COST
(PHP)

BROOM Used for BudgetWise, 75 1 75

cleaning Sangali
maintenance branch
inside the
business
establishment
 Walis Tingting Used for Sangali 20 2 40
cleaning Market
maintenance
in and outside
the operation
area.

Dust pan Used for BudgetWise, 40 1 40

cleaning Sangali
maintenance branch
inside the
business
establishment

ISOPROPYL To be used for BudgetWise, 60 1 60

Alcohol sanitation Sangali
purposes branch

Trash bins For storing BudgetWise, 1 800 800

trashes Sangali
branch

TOTAL 1,015

TOTAL COST OF ALL MACHINERIES AND EQUIPMENTS

CATEGORY TOTAL COST (PHP)

Machineries and Equipment P 801,731

Furniture and Fixtures 5,050

Office Supplies 31,125

Cleaning Supplies 1,015

TOTAL P 838,921

I. Plant Location

The CharCubes Manufacturing Plant is located at Waray-waray after the Barangka

River Bridge. Upper Bungiao Zamboanga City. Given the business emits smoke, the location
itself must be 50 meters away from houses and highways and the size of the plant is ideal and
preferable for the manufacturing capacity of the business.
 J. Legal Expense

Particulars Cost

Business Registration 500

DENR 1,240

ECC 5,055

BIR 500

Mayor’s permit 500

TOTAL P7,795

K. Rent Expense
The Manufacturing Plant is located at Waray-waray after the Barangka River Bridge,
Upper Bunguiao Zamboanga City. This place will cost 750 Php per square meter and since
the manufacturing plant needs 400 square meters it will cost 300,000 php. The location will
be purchased instead of renting it.

L. Utilities Expense
Utility Particulars Daily Cost Monthly Yearly Sources
Cost Cost

Electricity Machineries

- Grinder 4kW x 14.2 x

5hours= 284 2,272

- Mixer 3kW x 14.2 x

4.17hours = 177.5 1,420

- Motorized 11kW x 14.2x

Briquettin 6.72hours= 1,049 8,392
g
Machine

- Computer 0.35kWh x 14.2x

and 2hours= 9.94 79.52
Printer
0.65kWh x 14.2x
2pcs x 8hours=
- Electric 147.68 1,181.15
Fan
0.072/kWh x14.2
x10pcsx 8hours=
- Flouresce 81.792 654.34
nt Ceiling
Light
0.01kWh*x 14.2x
- Internet 8hours= 1.136 9.09
Modem
Total - 13,008.1

Water Cleaning and 155.9 3,429.8

other necessities
to water

Fuel Generator 4 gallons

(reserve)
x
217.472)=
869.09
Deliver Vehicle
75 liters x
52.90/liter
= 3,967.5
 4,836.59

Internet Modem - Php 1,299

WiFi

TOTAL 22,673.49

M. Plant Layout

N. Building and Facilities

The plantation would be located far from the city proper of Zamboanga City and it
will be designed as an industrial building type. The total size of the land to be used from the
whole area is 400 square meters. The land has a market value of P750.00 which will cost up
to P300,000. The company will shoulder the construction of the facilities in which according
to the Philippine Statistic Office the average construction cost for an industrial construction is
P7,345 per square meter which will cost the company around P2,754,375. Out of 400 square
meters, 375 sqm will be used as a production area and the rest will serve as the parking and
for other purposes.

O. Raw materials

The following particulars are computed by production/batch.

IMAGE PARTIC FUNCTIO SUPPLIER UNIT QUANTI TOTAL

 ULAR N/S COST TY COST
(PHP)

Coconut Powderized Contract 60 pesos 20 sacks 1,200

shell coconut with Dulian per sack
shell will be coconut (approx.
used as the suppliers 120 pcs
main per sack)
component
of the
briquettes

Cornstarc Serves as KCC 950 5 kg 190 pesos

h the binder pesos per
of the raw 25 kg
materials sack

P. Product Cost

Particulars Cost per production Cost per 10 kg box

Direct Raw Materials

Coconut Shell P 1,200 85.71

Cornstarch 76 2.71

Water 0.56 0.02

Indirect Raw Materials

Box 840 30

Direct Labor

Production Staff (3) 2,632.5 94.02

Manufacturing Overhead
and operating expense

Utilities (Electricity)

Production machines 2,559.5 91.41

TOTAL 303.87

The cost of production of charcoal briquettes that costs P550.00 per 10 kilos each is P303.87
V. Management Aspect

A. Name and Type of Business Organization

CharCubes derived from Charcoal and Cubes that were decided by the
proponents. CharCubes was considered out of other suggested business names
because it will be easily remembered and somehow states the obvious on what the
business really is.

The proposed business will be funded by the father of one of the proponents
and managed by the proponents. This business offers a new kind of charcoal in the
market. It is a Sole Proprietorship type of business in which the owner will be
personally responsible for its debts. The proposed business will be a manufacturing
type of business named CharCubes, which will be the first business to produce and
supply Charcoal Briquettes in Zamboanga City.

B. Organizational Structure

The figure represents the organizational structure of CharCubes business. The owner will
be the general manager and will hire a secretary to assist the manager in supervising the
business and all the production workers would be regular employees and will be hired by the
owner.

C. Recruitment Program

Applicants for this business will have to meet and consider all the job
requirements and the admin or the manager of the business will oversee the hiring
 procedure. In regards with the location of the business, all the potential laborers must
originally reside in the said barangay. The applicants will have to go through a
screening process and they will be interviewed. Finally , the owner will assess the
hiring process and will have to decide, once the applicant is hired there are
orientations prepared for them to ensure the business’ and the laborer’s convenience
and safety.

D. Training Program
New employees that passed the application interview are to proceed to training
and development programs to be able to fully understand the processes and operations
needed for the daily course of business.
Hired employees shall submit themselves into an orientation regarding proper
introduction of the business, relevant matters are to be discussed including; sets of
policies at work, job responsibilities and obligations, salary and benefits. They will
also be tasked to observe how the process is done and how cleanliness of the
production area is preserved. After the orientation, newly hired employees are
subjected to enter into a 2 to 3 training days process regarding their designated
working area with supervision of their heads.

E. Compensation Package

The production employees will be compensated based on their log book. There will be
288 working days per annum (265 days less 18 legal holidays and 52 Sundays) for
regular employees. Salaries will be given every 15th and 13th day of the month. All
employees are entitled to Health and Social Insurance. The office will also be
operating from Monday to Saturday every week except when there is a holiday.
Employees will only be paid according to the number of days they have rendered
working at least 8 hours a day.

Position No. of Max. No. of Daily MONTHLY Yearly

Workers Annual Work
Days (22 working
days)

General 1 288 500 11,000 144,000

Manager
Secretary 1 288 380 8,360 109,440

Production 3 288 400 26,400 345,600

Workers

Security Guard 2 288 182 4,000 48,048

Driver 1 288 400.00 8,800 115,200.00

Bookkeeper 1 4 times a month 500/visit 2,000 24,000

total 786,288

F. Fringe Benefits
The benefits listed below are in addition to the regular compensation offered
to employees. Human resources uses fringe benefits to help acquire and retain top
people and build a motivated staff. Because employee salaries will not be increased,
fringe benefits will not be increased as well. The following are the benefits:

Financial Benefits: Employees will receive a 13th month pay. Annual

salary will be divided by 12 months.

FRINGE BENEFITS: PHIC, SSS, PAG-IBIG.

 G. Working Hours
The manufacturing business will operate at least 8 hours a day and it will open
at 8am and close at exactly 5pm. As per mandated by law, employees should work at
least 8 hours a day as the business operates. There are 2 Security guards who will shift
every 8 hours.

H. Office Hours
Employees will be working eight hour shifts Monday to Saturday and it will
shut down every Sunday and during legal holidays. The owner and as well as
employees must be at the factory at 8am for the preparation of the operation of the
business.There will be a one hour lunch break that starts at 12 noon and will resume at
1:00pm in the afternoon, and the factory will close at 5pm.

I. Business Policies

Every business needs a business policy to guarantee that all its personnel are well-disciplined
in terms of both their work performance and their moral character. Workers are required to be
clean and dressed appropriately for work. The company will give a shirt for the employees'
uniform.

a. General Policies:

● No work, no pay
● Every day employees must record their time-in and time-out.
● Employees must avoid being tardy and must be at the establishment 30 minutes
before it opens.
● Management determines and sets the plan for rest days.
● Employees are not permitted to use their mobile phones or any other electronic
devices during business hours.
● The highest standards of cleanliness and sanitation shall always be adhered to.
● Management determines and sets the plan for rest days.
● There will be no bringing or consuming of alcoholic beverages.
● There will also be a no-smoking and no-gambling policy in the place.
● Unless there is a valid reason, tardiness will result in a salary decrease.
● Employees who have a high number of absences are liable to disciplinary action.
● Any infractions of the policies will result in a warning.

b. Production Employees Policies:

● Employees in the production department are expected to dress in their working attire.
● When arriving at work, production personnel must wear the right uniform.
● Proper uniform consists of white T shirt, denim pants, and proper boots including
sanitary safeguards such as white rubber gloves, hairnet, face mask, and apron.

c. Personal Hygiene Policies:

● Jewelries are not allowed during working hours
● Employees should wear their proper working attire neatly.
VI. Financial Aspect

A. Financial Assumption

Financial Assumption:
Reference/Basis
ZC Licensing
1 Growth Rate - Lechon business 2.3% Office

2 Inflation rate 6.1% PSA

3 Estimated Useful life (Recovery period)

Machinery and Equipment 10 years
Office Furnitures and Equipment 5 years
Building and Facilities 20 years

using straightline method in computing the depreciation

4 amounts rounded-off to the nearest peso

5 Inventory at the end (unsold charcoal) 15% of production

Year 1 Year 2 Year 3

Production 3,763 4,301 4,838

Unsold 15% 15% 15%

Total 564 645 726

Cost 305 324 344

Inventory End 172,020.00 208,980.00 249,744.00

A. Project Cost

Project Cost
A. CAPITAL ASSETS
Particulars Qty Price Amount
Machinery and Equipment

Kiln 2 units 5,000.00 P 10,000.00

Charcoal Grinder 1 unit 30,000.00 30,000.00

Mixer 1 unit 87,184.00 87,184.00

Motorized Briqueting Machine 1 unit 194,529.00 194,529.00

Oven 1 unit 5,000.00 5,000.00

Delivery Vehicle 1 unit 475,000.00 475,000.00

Generator 1 unit 85,000.00 85,000.00

Total P 886,713.00

Office Furniture and Equipment

Table 1 unit 3,600.00 P 3,600.00

Plastic Chairs 5 units 290.00 1,450.00

Printers 1 unit 8,000.00 8,000.00

Computer 1 unit 20,000.00 20,000.00

Total P 33,050.00

Manufacturing Plant (Lot) P 300,000.00

Building Facilities P 2,754,375.00

TOTAL CAPITAL ASSETS P 3,974,138.00

B. DIRECT COSTS
Particulars Qty (1 month) Price Amount
Cost of Materials
Coconut Shell
20 sacks 60.00 P 1,200.00
Cornstarch
5 kgs 38.00 190.00

Total P 1,390.00

Cost of Labor

Production Workers 22 days @ 400/day 8,800.00 35,200.00

Overhead

Boxes 250 bxs 30.00 P 7,500.00

Electricity 12,084.00

Water 3,430.00
Fuel-Generator 869.00

Total P 23,883.00

TOTAL DIRECT COSTS P 60,473.00

C. OPERATING EXPENSES

Salary and Allowance P 28,160.00

Employees Fringe Benefits 3,949.00

Office Supplies 2,150.00

Cleaning Supplies 1,015.00

Utilities 8,060.00

Bookkeeper 2,000.00

Security Guards 8,000.00

Training Cost 5,000.00

Taxes and Licenses 7,795.00

Total P 66,129.00

TOTAL PROJECT COST P 4,100,740.00

Detailed Computation of Project Costs:

Salary and Allowances

Total

General Manager 22 500 /day P 11,000.00

Secretary 22 380 /day 8,360.00

Driver 22 400 /day 8,800.00

Total P 28,160.00

Employees Fringe Benefits

SSS PHIC HDMF Total

General Manager 1,055.00 248.00 220.00 P 1,523.00

Secretary 818.00 200.00 167.00 1,185.00

Driver 865.00 200.00 176.00 1,241.00

Total 2,738.00 648.00 563.00 P 3,949.00

Office Supplies
Particulars Qty Price Amount

Matches 2 pcs 30.00 60.00

Face Mask 3 boxes 100.00 300.00

Labor Gloves 5 pairs 50.00 250.00

Ballpen 1 set 120.00 120.00

Record Book 2 pcs 70.00 140.00

Official Receipts 3 booklets 70.00 210.00

Paper Clips 2 boxes 35.00 70.00

Stapler 1 unit 140.00 140.00

Scotch Tape 20 pcs 30.00 600.00

Folders 5 pcs 10.00 50.00

Bondpaper 1 ream 210.00 210.00

Total P 2,150.00

Cleaning Supplies
Particulars Qty Price Amount

Broom 1 unit 75.00 75.00

Walis Tingting 2 units 20.00 40.00

Dustpan 1 unit 40.00 40.00

Alcohol 1 unit 60.00 60.00

Trashbins 1 unit 800.00 800.00

Total P 1,015.00

Utilities

Light P 1,924.00
 Fuel-Delivery Truck 4,837.00

Internet 1,299.00

Total P 8,060.00

Taxes and Licenses

Business Registration P 500.00

DENR 1,240.00

ECC 5,055.00

BIR 500.00

Business Permit 500.00

Total P 7,795.00

B. Projected Statements of Income

PROJECTED STATEMENTS OF INCOME

For 3 Years Period
(In Philippine Peso)

Sc
h Year 1 Year 2 Year 3
Sales 1 P 2,069,650.00 2,511,784.00 2,999,560.00
Less: Cost of Goods
Manufactured 553,656.00 707,215.00 723,040.00
Gross Income P 1,515,994.00 1,804,569.00 2,276,520.00
Less: Operating
Expenses 2 879,147.00 867,048.00 867,352.00
Net Income before
income tax P 636,847.00 937,521.00 1,409,168.00
Less: Income Tax 12 190,032.00 280,235.00 421,729.00

Net Income P 446,815.00 657,286.00 987,439.00

C. Projected Statements of Financial Position

PROJECTED STATEMENTS OF FINANCIAL POSITION

For 3 Years Period
(In Philippine Peso)
 Sch Year 1 Year 2 Year 3
ASSETS
Current Assets

Cash P 824,428.00 1,767,956.00 3,089,124.00

Merchandise Inventory 172,020.00 208,980.00 249,744.00

Total 996,448.00 1,976,936.00 3,338,868.00

Non-current Assets
Property, Plant and Equipment,
net 13 P 3,741,139.00 3,508,140.00 3,275,141.00

TOTAL ASSETS P 4,737,587.00 5,485,076.00 6,614,009.00

LIABILITIES AND EQUITY

Current Liabilities:

Income Tax payable 13 190,032.00 280,235.00 421,729.00

Equity 4,547,555.00 5,204,841.00 6,192,280.00

TOTAL LIABILITIES & EQUITY P 4,737,587.00 5,485,076.00 6,614,009.00

D. Projected statement of Changes in Equity

PROJECTED STATEMENTS OF CHANGES IN EQUITY

For 3 Years Period
(In Philippine Peso)

Sc
h Year 1 Year 2 Year 3

Capital Investment, Jan P 4,100,740.00 4,547,555.00 5,204,841.00

Add: Income 446,815.00 657,286.00 987,439.00
Total P 4,547,555.00 5,204,841.00 6,192,280.00

E. Projected Statements of Cash Flows

PROJECTED STATEMENTS OF CASH FLOWS
 For 3 Years Period
(In Philippine Peso)

Direct Method 646,148.00 634,049.00 634,353.00

Year 1 Year 2 Year 3

Cash Inflows:

Capital Investment P 4,100,740.00

Cash Collections 2,069,650.00 2,511,784.00 2,999,560.00

Total Cash Inflows P 6,170,390.00 2,511,784.00 2,999,560.00

Less: Cash Outflows

Purchase of Manufacturing Lot P (300,000.00)

Purchase of Machinery and Equipment (886,713.00)

Purchase of Office Furnitures &
Equipment (33,050.00)

(2,754,375.00
Construction of Building Facilities ) - -

Purchase of Raw Materials (16,680.00) (17,697.00) (18,777.00)

Payment of Direct Labor (422,400.00) (422,400.00) (422,400.00)

Payment of Ovehead Costs (286,596.00) (304,078.00) (322,627.00)

Payment Operating Expenses (646,148.00) (634,049.00) (634,353.00)

Payment of Income Tax (190,032.00) (280,235.00)

Net Cashflows P 824,428.00 943,528.00 1,321,168.00

Add: Cash balance, January 01 - 824,428.00 1,767,956.00

Cash balance, December 31 P 824,428.00 1,767,956.00 3,089,124.00

VI.i. Supporting Schedules

Supporting Schedules

Schedule 1: Sales
Year 1 Year 2 Year 3

Charcoal (boxes of 10 kls) P 5,376 5,376 5,376

Utilization Rate of Production 70% 80% 90%
Total 3,763 4,301 4,838

Price per sack 550.00 584.00 620.00

Total P 2,069,650.00 2,511,784.00 2,999,560.00

Schedule 2: Cost of Goods Manufactured

Year 1 Year 2 Year 3

Inventory, Beginning P - 172,020.00 208,980.00

Raw Materials 16,680.00 17,697.00 18,777.00

Direct Labor 422,400.00 422,400.00 422,400.00

Overhead Cost 286,596.00 304,078.00 322,627.00

Total P 725,676.00 916,195.00 972,784.00

Less: Inventory, End 172,020.00 208,980.00 249,744.00

Total P 553,656.00 707,215.00 723,040.00

Year 1 Year 2 Year 3

Production P 3,763 4,301 4,838

Unsold 15% 15% 15%

Total 564 645 726

Cost 305.00 324.00 344.00

Inventory End P 172,020.00 208,980.00 249,744.00

Schedule 3: Operating Expenses

Year 1 Year 2 Year 3

Salary and Allowances (Sch 4) P 337,920.00 337,920.00 337,920.00

Fringe Benefits (Sch 5) 47,388.00 47,388.00 47,388.00

13th Month Pay (Sch 6) 28,160.00 28,160.00 28,160.00

Office Supplies (Sch 7) 2,150.00 2,133.00 2,422.00

Cleaning Supplies (Sch 8) 1,015.00 228.00 243.00

Utilities (Sch 9) 96,720.00 96,720.00 96,720.00

Bookkeeper 24,000.00 24,000.00 24,000.00

Security Guards 96,000.00 96,000.00 96,000.00

Training Costs 5,000.00 - -

Taxes and Licenses (Sch 10) 7,795.00 1,500.00 1,500.00

Depreciation (Sch 11) 232,999.00 232,999.00 232,999.00

Total P 879,147.00 867,048.00 867,352.00

Schedule 4: Salary and Allowances

Year 1 Year 2 Year 3

General Manager P 132,000.00 132,000.00 132,000.00

Secretary 100,320.00 100,320.00 100,320.00

Driver 105,600.00 105,600.00 105,600.00

Total P 337,920.00 337,920.00 337,920.00

Schedule 5: Fringe Benefits

Year 1 Year 2 Year 3

SSS P 32,856.00 32,856.00 32,856.00

PHIC 7,776.00 7,776.00 7,776.00

PAG-IBIG 6,756.00 6,756.00 6,756.00

Total P 47,388.00 47,388.00 47,388.00

Schedule 6: 13th Month Pay

Year 1 Year 2 Year 3

General Manager P 11,000.00 11,000.00 11,000.00

Secretary 8,360.00 8,360.00 8,360.00

Driver 8,800.00 8,800.00 8,800.00

Total P 28,160.00 28,160.00 28,160.00

Schedule 7: Office Supplies

Year 1 Year 2 Year 3

Matches P 60.00 64.00 68.00

Face Mask 300.00 318.00 337.00

Labor Gloves 250.00 265.00 281.00

Ballpen 120.00 127.00 135.00

Record Book 140.00 149.00 158.00

Official Receipts 210.00 223.00 237.00

Paper Clips 70.00 74.00 79.00

Stapler 140.00 - 158.00

Scotch Tape 600.00 637.00 676.00

Folders 50.00 53.00 56.00

Bondpaper 210.00 223.00 237.00

Total P 2,150.00 2,133.00 2,422.00

Schedule 8: Cleaning Supplies

Year 1 Year 2 Year 3

Broom P 75.00 80.00 85.00

Walis Tingting 40.00 42.00 45.00

Dustpan 40.00 42.00 45.00

Alcohol 60.00 64.00 68.00

Trashbins 800.00 - -

Total P 1,015.00 228.00 243.00

Schedule 9: Utilities
Year 1 Year 2 Year 3

Light P 23,088.00 23,088.00 23,088.00

Fuel-Delivery Truck 58,044.00 58,044.00 58,044.00

Internet 15,588.00 15,588.00 15,588.00

Total P 96,720.00 96,720.00 96,720.00

Schedule 10: Taxes and Licenses

Year 1 Year 2 Year 3
Business Registration 500.00 500.00 500.00

DENR 1,240.00 - -

ECC 5,055.00 - -

BIR 500.00 500.00 500.00

Business Permit 500.00 500.00 500.00

Total P 7,795.00 1,500.00 1,500.00

Schedule 11: Depreciation

Year 1 Year 2 Year 3

Machinery and Equipment (10 years) P 88,671.00 88,671.00 88,671.00

Office Furniture and Equipment (5 years) 6,610.00 6,610.00 6,610.00

Building Facilities (20 years) 137,718.00 137,718.00 137,718.00

Total P 232,999.00 232,999.00 232,999.00

Schedule 12: Income Tax

Year 1 Year 2 Year 3

Net Income before tax P 636,847.00 937,521.00 1,409,168.00

Tax rate 30% 30% 30%

Income Tax P 190,032.00 280,235.00 421,729.00

Schedule 13: Property, Plant and Equipment,

net
Year 1 Year 2 Year 3

Manufacturing Plant-Lot P 300,000.00 300,000.00 300,000.00

Machinery and Equipment (10 years) 886,713.00 886,713.00 886,713.00

Office Furniture and Equipment (5 years) 33,050.00 33,050.00 33,050.00

Building Facilities (20 years) 2,754,375.00 2,754,375.00 2,754,375.00

Total P 3,974,138.00 3,974,138.00 3,974,138.00

Less: Accumulated Depreciation 232,999.00 465,998.00 698,997.00

Property, Plant and Equipment, net P 3,741,139.00 3,508,140.00 3,275,141.00

VII. Socio-Economic Aspect

This chapter discusses the benefits of the proposed business project of CharCubes and how
the business affects the economy and employment, society, environment, and market share

a. Effects of the CharCubes to the Economy

New businesses means employment opportunities not just for the business, but for the people
of Zamboanga City as well. CharCubes’ business activities may influence a country's economic
performance by bringing new products, methods, and production processes to the market and by
boosting productivity and competition more broadly.

b. Effects of CharCubes to the Environment

CharCubes’ charcoal briquettes are innovative and more sustainable than the
traditional charcoal. Not only do the briquettes recycle waste that could otherwise end up
polluting the environment, they also burn cleaner than firewood, releasing less greenhouse
gases. Using briquettes as an alternative energy source reduces woodcutting that is
contributing to deforestation.

Aside from producing eco-friendly products, CharCubes also makes sure that the
process of producing the products are non-contaminating and clean as well. The process of
converting biomass to solid fuel is also non-polluting. CharCubes also makes sure that the
packaging do not produce unnecessary waste, too. The cardboard box used as packaging
could also be added as a kindle along with the briquettes.

c. Effects of the CharCubes to the Society

Charcoal has been used since the earliest times for a range of purposes, including art,
medicine, and fuel. Filipinos commonly use charcoal as a kindle to cook and grill food.
CharCubes will be introducing an innovated version of charcoal to the public – charcoal
briquettes that are cheaper, more efficient to use, and more sustainable to the users, as well as
the environment.

d. Effects of the CharCubes to the Market Share

The new business could potentially contribute to the growth of the Gross Domestic Product (GDP) as
well as the Gross National Product (GNP) of the Philippines. GDP is a measurement of all officially
recognized final goods and services produced within a country in a certain period while GNP is a
measure of a country’s economic performance, or what its citizens produced and whether they
produced these items within its borders. Since the business will provide new opportunities for a good
investment, it will surely increase the said two economic measurements. A good GDP bandgap signify
a good standard of living of a certain country
VIII. Conclusion and Recommendation

Links
https://www.seriouseats.com/grilling-smackdown-lump-charcoal-vs-briquette
https://edition.cnn.com/2021/10/28/asia/philippines-coconuts-plastic-alternative-climate-spc-i
ntl-hnk/index.html

Market description
https://www.sciencedirect.com/topics/engineering/briquette