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Pdfcoffee.com Ukay Ukaya Ko Bi Feasibility Study PDF Free
Pdfcoffee.com Ukay Ukaya Ko Bi Feasibility Study PDF Free
Pdfcoffee.com Ukay Ukaya Ko Bi Feasibility Study PDF Free
Presented to
The Faculty of the College of Accounting Education
UM Tagum College
Tagum City
In Partial Fulfillment
Of the Requirements for the degree of
Bachelor in Science of Accountancy
PIA T. SURIL
PHEBE ZALLIA P. RADJAC
EMERY G. PUNO
ANA JANE R. BARET
ELIRA JI VILLEGAS
February 2020
APPROVAL SHEET
PANEL OF EXAMINERS
GINA FE ISRAEL
Dean of College
3
ACKNOWLEDGEMENT
This project feasibility study would not have been possible without the
guidance and the help of several individuals who in one way or another
completion of this study. The completion of this feasibility study was made
Mr. Michael John Ode, our instructor, for his patience and guidance,
encouragement and for sharing his expertise in writing this feasibility study;
To our parents, who gave us life and guided us ever since we were born, and
also to our friends, who always there for us. To our classmates and teachers
who gave us inspiration and support to finish this study; and above all, to
OUR LORD JESUS CHRIST, for His abundant graces and blessings
The Researchers
4
PREFACE
building a successful business that can stay in long run. The researchers also
give their utmost effort and time to the study more understandable most
Furthermore, this feasibility study can also give a big help to those who
are interested in starting a business that can generate much profit and they
can also use this to find information on how they will make their business
At last, the researchers of this study believe that they used their full effort
and determination to make this proposed feasibility study successful with the
TABLE OF CONTENTS
Page
TITLE PAGE i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
PREFACE iv
TABLE OF CONTENTS v
LIST OF TABLES ix
LIST OF FIGURES xi
Chapter
1 INTRODUCTION
Methodology 1
2 EXECUTIVE SUMMARY
3 MARKETING PLAN
Location 5
Market Area 7
Main Customer 7
Total Demand 7
Historical Demand 8
Projected Demand 9
Historical Supply 10
Projected Supply 11
Market Share 13
Summary of Sales 19
Marketing Strategy 20
Distribution Strategy 21
Pricing Strategy 21
4 DISTRIBUTION PLAN
Distribution Aspect 23
Source of Equipment 23
Planned Capacity 25
V
Store Lay-out 25
Fixed Capital 27
Utility Expense 31
Rent Expense 32
Supplies Expense 34
Transportation Expense 36
Benefits Contribution 38
Bookkeeper Honorarium 39
6 FINANCIAL PLAN
Financial Aspect 48
Major Assumption 48
Return on Investment 54
ANNEX A 55
ANNEX A 56
9
LIST OF TABLES
Table Page
2 Historical Demand 8
3 Projected Demand 9
4 Historical Supply 10
5 Projected Supply 11
7 Market Share 13
13 Summary of Sales 19
14 Marketing Strategy 20
15 Planned Capacity 25
16 Fixed Capital 27
1
21 Utility Expense 31
23 Rent Expense 32
25 Supplies Expense 34
27 Business Permit 35
28 Transportation Expense 36
29 Advertising Expense 36
32 Benefit Contribution 38
34 Bookkeeper Honorarium 39
LIST OF FIGURES
X
Figure Page
2 Technical Process 24
3 Store Layout 26
Chapter 1
INTRODUCTION
national highway and the marketability of its products and services. The said
study also considers the nature and extent of the market according to
The proponents conducted the study in order to identify the current and
future demand as well as the supply of the proposed business, analyze the
Methodology
This study conducted through surveys by gathering all the necessary data
and information in terms of the area and its population at Magnaga, Pantukan,
random respondents that will give reliable results to the entire study and aided
researchers interviewed some existing business that was the same from
conducted study.
2
Chapter 2
EXECUTIVE SUMMARY
clothes wherein revenue is derived from customers who buy the product
offered. The amount paid depends on the cost of clothes per kilo or bundle
near Magnaga National High School. The proposed business will offer clothes
and comfortable bedding that satisfies the needs and wants of the customers.
Table 1
durable clothing material for those with relatively low incomes. Some people
would resort to buying ukay-ukay items because the latter are relatively
homogenous with the brand new garments and accessories that may be
than their counterparts in the market, due partly to the inefficient local
productivity (Go 2002). The textile and garments industry still needs
banned the entry and sale of ukay-ukay items in the market. This
created discontent among their patrons, who look at ukay-ukay goods as the
most affordable in the market (Philippine Star 2002). This also entailed some
have every legal right to confiscate and even burn such items, ukay-
Development (DSWD).
5
Chapter 3
MARKETING PLAN
are suitable for any occasion. The said business guarantees its
also provides pillow, pillow covers, curtains, bed sheets, etc. All of these
more stylish. This is quite unique because the said location has a total
population of
Location
Davao De Oro near Magnaga National High School. The proponents chose
this site because of its high population and this location is at the center area of
the said barangay. Figure 1 shows the vicinity map of the proposed
business.
6
MAGNAGA
BARANGGAY HALL
MAGNAGA
NATIONAL HIGH
SCHOOL
UKAY-UKAYA
THIS SITE
KO BI
7
Market Area
Main Customer
Total Demand
researchers regarding the trend of the Ukay-ukay to those consumers for the
past three (3) years. Consequently, the said data in table 2 were used as the
basis for the projected demand of the Ukay-ukay for the next three (3) years.
As you can see on table 3, the future demand for the Ukay-ukay is increasing
Historical Demand
Table 2 shows the historical demand of ukay-ukay for the past three (3)
years. The proponents gathered data with regards to the total student’s
target populace patronized the business. There were 400 interviewees and
320 of them responded that they are purchasing Ukay-ukay at least seven
Table 2
Historical Demand
Average Frequency
Projected Demand
9
Table 3
Projected Demand
Increases Demand
Historical Supply
1
For the historical supply, the proponents identified only one (1)
existing business with the same nature as the proposed business situated at
crossing Magnaga near Catholic church that operates (5) days per
week. Table 4 shows the competitor’s supply for the past three (3) years.
Table 4
Historical Supply
Year Competitor
2016 20,000
2017 23,000
2018 26,000
Projected Supply
percentage increase in supply for the past three (3) years of business
1
operation. Base from the table below, it shows an average increase of 13%.
Table 5
Projected Supply
29, 380
1 26,000 13%
13%
2 29, 380 33, 199
area.
1
Table 6
Demand-Supply Analysis
Unsatisfied
Year Demand Supply Demand
Historical Value
2016 1, 120
21, 120 20, 000
2017 1,960
24, 960 23,000
2018
4,720
30, 720 26,000
Projected Value
1 29, 380
37,785 8,405
demand by the selling capacity. The base of getting the selling capacity
Table 7
Market Share
Demand
8,405
1 20,000 42%
13,277
2 22,000 60%
19,650
3 24,000 82%
Table 8 shows the historical selling price for the last three years.
Table 8
Table 9 indicates the Projected Selling Price of each new arrival of pants,
jacket, blouses and shirts, skirt and dress that is offered by “Ukay-Ukaya Ko
Bi”. It is assumed to increase P5.00 for second year as well as for third year.
Table 9
50.00
Pants 45.00 55.00
40.00
Jacket 35.00 45.00
35.00
Blouses and shirts 25.00 30.00
30.00
Skirt 25.00 35.00
40.00
Dress 35.00 45.00
Table 10 shows the sales revenue of the year 1 of the “Ukay-ukaya ko bi”
business. The data stated are based on the computation from the total
price to get the total sales. The total sales of the items are P650, 000.
Table 10
1
Sales Revenue
Year 1
Table 11 shows the sales revenue of the year 2 of the “Ukay-ukaya ko bi”
business. The data stated are based on the computation from the total
price to get the total sales. The total sales of the items are P 825,000.
Table 11
1
Sales Revenue
Year 2
Table 12 shows the sales revenue of the year 3 of the “Ukay-ukaya ko bi”
business. The data stated are based on the computation from the total
price to get the total sales. The total sales of the items are P 1,020,000.
Table 12
Sales Revenue
1
Year 3
percentage
Summary of Sales
Table 13 shows the summary of total sales revenue for the years 1, 2, and
3.
Table 13
Summary of Sales
1 P 650,000
2 825,000
3 1,020,000
Marketing Strategy
strategy to build name and have better relationship with the target
Table 14
Introducing the
business and the
Distribution of flyers and product to a large January 6 P2, 000
leaflets number of customers.
(300 pieces for whole
week)
Opening Promo All items for 25.00 only January 27 P16, 000
..
Distribution Strategy
The business uses direct selling for distribution to the customer on which
the target market can directly acquire the products. The location is accessible
Pricing Strategy
into specific kinds like women’s blouses, men’s shirts, kid’s wear, pants,
jackets
2
and others. The price of bales depends on the number of clothes each bale
has or the quality of clothes they carry. Some bales of 1000 pcs are sold at
Php11, 000-15,000, plus shipping price. At this rate, the investment is around
Basic “ukay” wares like shirts and blouses in Metro Manila are priced at an
average of Php75. Clearance sales may see the prices drop by at most
50%. But even when sold at a discount, entrepreneurs can still profit from a
sale because of the very low initial investment. Whether sold ‘fresh’ (within 3-5
days after the opening of the bale) or in a 3-for-100 bargain, the entrepreneur
can still profit or expect a return of investment amounting to 2-4x the original
with customers while balancing the flow of income and the disposal of
manipulate these factors, then return of investment can be maximized for each
bale.
2
Chapter 4
Distribution plan
Distribution Aspect
This chapter shows the process of purchasing the products for the
clothes, bags, shoes and etc. Second, the proponents will set the price of the
clothes, bags, shoes and etc. Third, the items or products will display in the
store and lastly, the payment of the customers. Furthermore, this chapter
corresponding cost and also the expenses of the business operation all
Source of Equipment
The equipment that is using can be found at the shopping malls in Tagum
City. The proponents will have an easily access to purchase the equipment
Planned Capacity
Table 15 shows the planned capacity of the business and it will assume to
Table 15
Planned Capacity
1 20,000
2 22,000
3 24,000
proponents will allocate the maintenance and repair of the equipment so that it
Store Lay-out
de Oro. The beneficial of the proposed business is that, the place is easy to
access to the customers and the business is near from national road. Figure 3
Stock Room
Cashier
Display
Area
ENTRANCE/EXIT
Fixed Capital
2
Table 16
Fixed Capital
Equipment
Sub-Total P 18,998.00
Sub-Total P 19,400.00
Table 17
Equipment
Depreciation
Estimated
Particulars Amount Life of Year 1 Year 2 Year 3
Asset
Ceiling Fan P 3,998.00 5 P 799.60 P 799.60 P 799.60
Total Purchases
2
Table 18, 19 and 20 show the total purchases of supply for the first three
Table 18
Year 1
Quantity Cost of
Particulars Purchases Selling Price Original Price Purchases
Table 19
Year 2
Quantity Cost of
Particulars Purchases Selling Price Original Price Purchases
Pants 11 60,500
5,500 55.00
Jacket 11 24,200
2,200 45.00
Blouses and 6 39, 600
shirts 6,600 35.00
Skirt 11 48, 900
4,400 35.00
Dress 11 36, 300
3,300 45.00
TOTAL 209,000
22,000
Table 20
3
Year 3
Quantity Cost of
Particulars Purchases Selling Price Original Price Purchases
TOTAL 252,000
24,000
3
Utility Expense
Table 21
TOTAL P 21,000.00
Utilities Expense
Table 22 shows the projected utilities expense for the first three
Table 22
Year Amount
1 P 21,000.00
2 22,050.00
3 23,152.50
Rent Expense
Table 23 shows the rent expense of the building where the business firm
Table 23
Rent Expense
Year Amount
1 P 60,000.00
2 63,000.00
3 66,150.00
The proponents make sure that they have purchased of high quality
Table 24
Year Amount
1 P 3,000.00
2 3,300.00
3 3,630.00
Supplies Expense
3
Table 25
Supplies Expense
Garbage 2 rolls
45.00 90.00
Cellophane
TOTAL P 5,520.00
Table 26
Year Amount
1 P 5,520.00
2 5,796.00
3 6,085.80
that the business permit will increase by 5% due to the changes in capital.
Table 27
1 P 3,000.00
2 3,150.00
3 3,307.50
Transportation Expense
3
is used in purchasing necessary material for the operation of the business and
Table 28
Transportation Expense
1 P 24,000.00
2 25,200.00
3 26,460.00
Advertising Expense
Table 29
Advertising Expense
Year 1 2 3
Total Amount P2, 250 P2, 250 P2, 250
the monthly salary of cashier is P 90,000.00 while the saleslady and sales boy
is P 72,000.00.
Table 30
TOTAL P234,000.00
Table 31 shows the projected salaries and wages of the employees where
Table 31
Benefits Contribution
3
Table 32 shows the Benefits Contribution of the employer where the total
Table 32
EE ER EE ER EE ER Total
Employees Monthly Monthly Monthly Monthly Monthly Monthly Yearly
Share Share Share Share Share Share Contributio
n
Table 33 shows the Total Projected Contribution and in every year there is
Table 33
Bookkeeper Honorarium
Table 34
Bookkeeper Honorarium
1 P 6,000.00
2 6,000.00
3 6,000.00
Summary of Expenses
4
Table 35, 36, and 37 shows the summary of operating expenses of the
proposed business.
Table 35
Year 1
Advertisement 2,250.00
TOTAL P 400,709.90
Summary of Expenses
4
Table 36
Year 2
Advertisement 2,250.00
Summary of Expenses
Table 37
4
Year 3
Advertisement 2,250.00
Chapter 5
enterprise that is owned and run by one person and in which there is no legal
distinction between the owner and the business entity. The capital is provided
itself, so as the expense and profit of the business. The over-all decision is on
The owner will be the one who manage and decide what will be
MANAGER
4
Bookkeeper
Sales Cashier
The table 38 below shows the qualification and functions of the workers. This
would help them to know their duties and responsibilities in order to do their
tasks properly.
4
Table 38
action.
● Communicate and
motivate employees
while establishing
appropriate methods
to evaluate job
performance.
Sales Lady/Men ● Assist customers and ● At least a high school
right conduct.
Cashier ● Scan the customer’s ● Have knowledge of
helpful information to
customers.
● Processing refunds
and exchanges,
resolving complaints.
Also, wrapping
purchases to ensure
safe transport.
Bookkeeper ● Recording transactions ● Accounting graduate and
posting
4
them to various
accounts.
Chapter 6
Financial Plan
Financial Aspect
Major Assumption
1. The Market share per year is 42%, 60% and 82% of the total
unsatisfied
demand.
4
year.
by 5% each year.
year.
Ukay Ukaya Ko Bi
Projected Income Statement
For the year ended December 31, Year 1-3
Expense 0 0
5,796.0 6,085.8
Store Supplies Expense 5,520.00 0 0
63,000.0 66,150.0
Rent Expense 60,000.00 0 0
3,150.0 3,307.0
Permit and Licenses 3,000.00 0 0
25,200.0 26,460.0
Transportation 24,000.00 0 0
32,640.0 32,640.0
Benefits Contribution 32,640.00 0 0
6,000.0 6,000.0
Bookkeeper Honorarium 6,000.00 0 0
245,700.0 257,985.0
Salaries and Wages 234,000.00 0 0
9,299.6 8,699.6
Depreciation Expense 9,299.60 0 0
2,250.0 2,250.0
Advertisement 2,250.00 0 0
Total Operating Expense P 400,709.60 P 418,385.60 P 436,359.90
Ukay Ukaya Ko Bi
Projected Cash Flow
For the year ended December 31, Year 1-3
Ukay Ukaya Ko Bi
ASSET
Current Asset
Non-Current Asset
Owner's Equity
financial ratios are important which will reflect the feasibility of the study.
The Gross profit ratio for the first three years of business operations of the
proposed business are 73%, 74%, and 75% respectively. Below show
The net profit ratios of the first three years of operation of the proposed
business are 12.20%, 24%, and 33% respectively. Below show the proposed
Return on Investment
Return on Investment
Divide: Total
Assets P 229,290.40 P 426,904.80 P 758,544.90
HISTORICAL DEMAND
PROJECTED DEMAND
PROJECTED SUPPLY