Chapter 1

INTRODUCTION

All over the world, ginger has been consumed as a flavor of

drink delicacies, spice or even medicine. It also provides a lot

of health benefits towards consumers since it has essential

nutrients that easily assimilate the body. According to

the National Library of Medicine, part of the NIH (National

Institutes of Health), ginger is widely used throughout the world

for treating loss of appetite, nausea and vomiting after surgery,

nausea resulting from cancer treatment, stomach upset, morning

sickness and motion sickness .It has also many useful minerals

like calcium, magnesium, copper, and zinc

(http://www.nutritionrank.com/calories-ginger-tea-salabat-

1388742).

Maranding, Lala, Lanao del Norte is known to be one of the

highly urbanized barangay in Mindanao. Micro and macro

enterprises are everywhere in the area and stalls are being set-

up to trade with the neighboring barangays and even neighboring

towns. It is one of the busiest province among Lanao area. Though

majority of its area is for agriculture and fishery, this place

is also fine enough for ginger plantation. There are numerous

different establishments around the area, but only few sells

products out from ginger. The researchers decided to establish a

homemade based type of business with consignment basis in the

area, to further introduce the delicious taste of ginger and

bring ginger products closer to the general public. The study

aims to enhance consumer’s awareness in various health and taste

benefits out of ginger and gradually become part of the

customer’s daily food intake.

As starting business, products of the Classic Salabat

and Choco Salabat will be consigned to groceries and local market

of the area. Consignees will have commission of 10% of every

pack.

People tend to patronize the usual choco drinks and milk

beverage over ginger flavored drinks and the usual patronizers of

salabat are only part of the adults and the younger tends to seek

the usual beverages of chocolate, milk and coffee.

The Chocolate flavored Salabat in which the specialty of the

proposed project will tend to convince the market especially the

children and teens to try a new drink that doesn’t goes away with

the usual taste of chocolate but with the twist and aroma of

ginger the uniqueness and availability of the product in the

market will contribute to the strength of the proposed project.

Limited variants offered by the proposed project will

induced the markets preferences of salabat drinks, which makes

the market to exclusive choices of the Salabat with honey and the

Choco Salabat only. The two variants served to the market and

also the absences of product are services in the community. The

proponents will give some job opportunities to some income –

generating project offered to the local suppliers of raw

materials. Materials supplies of the proposed project will cater

an opportunities to both the proposed project and the people of

the local area.

Competitive aspects from the competitors are those ready to

drink milk, and different variants of drinks ranging from

chocolate to milk and other flavors offered.

The proposed project will be having its different products

and also the absences of product are services in the community.

The proponents will give some job opportunities to some suppliers

of raw materials.

The proponents foresee that the proposed project is a good

business to be put up in the Municipality of Lala, Lanao del

Norte. The proponents will do their best to work and will take

all the risk to make the proposed project become real.

Chapter 2

PROJECT SUMMARY

This chapter comprises the name at the project location of

the project, brief description of the project, objectives at the

projects, highlight of the project which includes history,

projects time table, nature of the project and the source or mode

of financing. It is also contains the major assumptions and

summary of findings on market feasibility, technical feasibility,

management feasibility, socio- economic feasibility and financial

feasibility.

Name of the project

The name of the proposed project is Ginger’s Best. Ginger

comes from the main ingredient ginger and the proponents call it

“Best” because it has many nutritive values and it is efficient

to our health.

Location of the project

Ginger’s Best will be located at Purok 3, San Isidro

Lower, Lala, Lanao del Norte, along the highway. Since it is a

home-based type, the proponents will be using the extension of

the house owned by the proponent’s family. The production area

has a total area of ten square meters and it will compose of the

dishwashing area, packing area, storage, and the cooking area.

Brief Description

Ginger’s Best as the proposed project is a home-base with

consignment basis type of business will offer classic salabat and

choco salabat with the overlapping competition in the market in

terms of the like products, Ginger’s best new innovation for the

product will be used. Compare to other salabat product, Ginger’s

Best honey-sugar combination for sweetening the salabat will give

anew bound taste to consumers with the 50% honey and 50% sugar

content of the salabat products that only the proposed project’s

Ginger Best offers.

Aside from being considered as a herbal drink, the choco

salabat will be enjoy by children for its chocolate flavor and

honey content.

Since the products are home-made, the proponents planned to

have two productions per day, one in the morning and one in the

afternoon. Production will estimated produce 12 packs each of the

Salabat with honey and Choco Salabat, production time in the

morning will start at 8:00 a.m. to 11:00 a.m. while from 11:30

a.m. to 4:00 p.m. in the afternoon.

Highlights of the project

History. The proponents made an ocular survey in the

community and found out that ginger products especially salabat

is not as popular and being patronized by most of the consumers

compared to chocolate drinks, milk and coffee though there are

consumers who patronize Salabat but not as popular as the other

drinks. So in aid to that, the proposed project had

conceptualized a product for all ages. The Choco na Salabat and

the Classic Salabat.

Vision

Ginger’s Best envision to broaden the taste of salabat

product that will cater the taste of consumers, and also to be

the leading supplier of Ginger Beverage.

Mission

To provide the good quality, delicious nutritious and

affordable Ginger beverage to the market.

Goal

The goal of ginger’s Best is to achieve its manifested

desire to promote and introduce a herbal medicine in a form of

beverage that is mainly made out of ginger.

General Objectives

1. To introduce to the local ginger farmers and vendors

through purchasing of raw ingredients for production.

2. To provide the consumers of all ages and the community

on healthy and nutritive ginger beverage.

3. To provide healthy and nutritive ginger products in an

affordable price within their specified budget.

4. To promote a herbal drink that can be enjoyed by all.

Project Time Table

Phase Description Date

IPlanning for the

projectMarch 2017

IIPreparation for the

projectApril 2017

IIIPresentation of the

feasibility studyMay 2017

IV

Application for the

business permits and

license

June – August 2017

V

Price canvassing for

the materials needed

for the productSeptember 2017

VI

Arranging of the

materials needed for

the product

October 2018

VIIPromotion of the

project

November - December

2017

Figure 1

Project Time Table

Nature of the Project. Ginger’s best is a homemade type of

business with consignment basis of business that offers healthy

beverages made from Ginger. Since Maranding among the provinces

of Lanao del Norte, the prospect of numerous consumers and

prospected consignees will be offered by the municipality, and in

order to that, the proposed project will have the chance and

opportunities to sell the products in an affordable cost.

Ginger’s Best will offer Classic Salabat and Choco na Salabat.

Mode of Financing. The capital for the proposed business is

28,468 pesos. The funds that will be used will come from the

proponents’ personal money, since it is a partnership type of a

business.

Major Assumption and Summary of Findings

Market Feasibility. The target markets of the proposed

project are the, Chocolate lovers and beverage patronizes and

consumers which includes, employee, students, and teachers along

the area.

Technical Feasibility. Ginger’s Best is a kind of beverage

mainly made from ginger. A balance taste of sweet-spicy can be as

detectable as it is. The beverage won’t be as very sweet rather a

well balanced sweetness will be taste due to the use of honey in

the product content.

Product will be process for at least two hours and will be

packed in 250 grams for both choco salabat and classic salabat.

Ingredients with measurements

Step by step processing

The process of the choco salabat is the ff.

Ingredients with measurement

Step by step processing

Management Feasibility. The proposed project will be managed

by the proponents. Since it is a starting business, the proposed

project will be the working personnel for the proposed project.

Each one will act as a purchaser, cook and delivery personnel.

The division of labor will be done by the proponents and in vice

versa.

Socio- Economic Feasibility. Gingers Best will contribute to

the local ginger farmers and vendors through purchasing raw

materials especially ginger for the production of ginger

beverages. Also the proposed project will introduce a product

that has a good nutritive value making it has a good source of

healthy ginger beverage that will be available in the market.

Financial Feasibility. The estimated project cost for the

proposed project “Ginger’s Best” will have a total of Twenty

Eight Thousand Six Hundred Forty Eight (P 28,648.00). The

estimated cost covers the equipment including the purchase of

supplies, cash on hand for the daily operational expenses of the

proposed project, permit and licenses, tools and utensils.

Chapter 3

MARKETING STUDY

This chapter consists of the marketing environment, which

includes the economic factors of the community, demographic

factors, social and cultural factors political and legal forces,

technology and competition. It is also presents the marketing

mix, which comprises the market, product, promotion and

advertising and channel of distribution. It also includes the

market survey of the proposed project.

Marketing Environment

Economic Factors of the Community. Sixty percent of the main

source of income of the constituents comes from fishing and

agriculture, ten percent comes from handicrafts and only thirty

percent comes from the business. The average per capital income

for those rural and the urbanizing barangays ranges from Php 28,

000.00 to Php35, 000.00 per annum while in the upper barangays

average per capital income ranges from Php15, 000.00 to Php

20,000.00. And from coastal barangays ranges from Php 35,000.00

to Php50, 000.00 for there’s a fishpond operator.

Maranding, Lala, Lanao del Norte has 27 barangays

respectively, and barangay Maranding is the commercial market

place, wherein fisherman, farmers, lemon growers brought their

products to be sold and other alternative crops displayed during

the scheduled market day every Wednesday and Sunday of the week.

There are also consumers coming from the neighboring

municipalities purchased on marketing during the market day.

Large number of people from other provinces will come and visit

Maranding, Lala, Lanao del Norte for their new and organized

constructed public market.

Rice is the main product of Lala. It is the main source of

livelihood in the municipality.

Recently, Maranding, Lala, Lanao del Norte’s economy had

improved and it can be seen through numerous snack bars, fast

food restaurants and fashion boutique. The Agriculture and the

Aquatic resources also help in boosting in the economy of

Maranding, Lala, Lanao del Norte.

Demographic Factors. The municipality of Maranding, Lala,

Lanao del Norte is one of the progressive municipality in the

twenty two municipalities of Lanao del Norte and Located in

Panguil Bay. It is a first class local government unit. Lala has

twenty seven barangays, has a total land area of 25,048.41

hectares which include the area that is now being contested by

the Municipality of Lala with an approximate area of 759

hectares.It is observed that Lala is a predominantly Christian

community having forty five percent of its population as Roman

Catholic and twenty five percent belong to the different

denomination. Cebuano and Maranao are the common language spoken

in the municipality.

Social and Cultural Factors. Maranding is well- known as

Rice and Crabs growers, which was displayed during Araw ng Lala,

Celebration every 22nd of March. Basically a thanks giving

Honoring for the rich bounty and abundance it provides for the

municipality. The Alimango Festival is seen to be a crowd drawer

for both local and foreign tourist. Alimango Street Dance Contest

and Band Competition joined by different schools and barangay.

The festival promotes a community-based and oriented agricultural

tourism which centers the display, sale and promotion of alimango

which abounds in the coastal barangays of Lala in the province of

lanao del Norte. The highlights of the festival are the Alimago

street dance contest, showing off a package of native and

indigenous costumes and dances, depicting and promoting local

cultures and traditions, and the pageant of Miss Lala.

Technology. Maranding, Lala, Lanao del Norte, residents and

business of basic utilities such as the electric power that is

supplied by LANECO, the water that is supplied also by Lala Water

District. The town also provided with telephone and communication

access by the Philippine Long Distance Company (PLDT) under the

management of Telecommunication Management and Services

Incorporated (TMSI). Maranding, Lala, Lanao del Norte also has

existing transfer of cash remittance such as ML Kwarta Padala,

Palawan Pawnshop, Pera Express, Cebuana Lhuiller, 1stValley Bank,

LBC Pera Padala, RD Pawnshop, One Network Bank, and many more.

The prime mode of car transportation is tricycle and sikad. There

are also vans, jeepneys, and buses for long distance travel.

Competition. Competition in Business in Rural area is not as

stressful as in the urban areas. The proponents are aware that

the success of the business depends on the lowest prices of

products and quality costumer services.

Marketing Mix

Market. Ginger’s Best will offer a good quality of ginger

products such as Classic Salabat and Choco Salabat that will

satisfy the taste of prospected consumers, that comprises of

adults and health conscious customers from the locality.

Product. Ginger’s Best will offer nutritious, delicious and

health beneficial products such as Classic Salabat, and Choco

Salabat.

Pricing. The price of the product will depend on the

ingredients used, cost labor cost, overhead cost, that will be

calculated to obtain the price of the product. Mark up will be

utilized in the accumulating the selling price of the products.

Promotion and Advertisement. The proponents will have its

promotion and advertising two months before the opening of the

business. This can be done through free tasting, giving of flyers

and word of mouth promotion. Flyers will be disseminated at bus

stop, public market, schools, town plaza.

Channel of Distribution. Customers can avail the products

directly in the production area and in the consignees grocery

store like Fe A. Escobia Store, Abby Store, LJH Store, Metro Gold

Super Mart, Omandam Store, K and L Store, Premier Merchandise,

Honey Mart, RM pharmacy / Grocery, and Mercury Drug Store are

among the grocery stores that are accessible to the locality and

also within the local market.

Market Analysis

The proponents used different techniques in gathering

information to support the study.

Survey

The proponents conducted survey among 100 respondents to get

their opinion regarding Ginger’s Best proposed project. These 100

respondents were come from the present total population of

Maranding, Lala Lanao Del Norte and the proponents used the

Slovene’s formula. The survey was distributed among the residents

of Lala. It was used so that the proponents would be able to know

the respondent’s perception and preference regarding to their

proposed business.

Slovene’s Formula

The proponents used the Slovene’s Formula to determine the

needed number of respondents.

Formula:

n = N/1+ (N) (e) 2

Where:

Where:

N = total population of Lala in the year 2014

e = margin of error which is 10%

n = number of needed respondents

Solution:

N = 46,332

Solution:

N =46,332 = 99.7 round of to 100

1+ (46,332) (.10)2

Sampling Techniques

The proponents used the random sampling to gather

information from the target market. Surveys and interviews are

conducted to further the people’s demand regarding Ginger

products by using a specific number of persons or respondents

from different barangays within the locality.

Survey Questionnaire

In order to have an access on the pertinent information and

gather important data about customer’s taste and preferences when

it comes to ginger’s product, the proponents agreed to use

Questionnaires. In this process, the proponents find it very easy

and reliable. The proponents used the checklist format. Questions

are made for the proponents to get their personal choice when it

comes to ginger’s products. By these questions, the proponents

will be able to determine the demand of the product. The

proponents provided 100 survey questionnaires which are all in

English language.

Chapter 4

MANAGEMENT STUDY

The chapter shows the organizational chart type of

operation. It also presents the job analysis which comprises the

Job description and Work schedule of employees and operating

policies and are also discuss in this chapter.

Organizational Chart

Figure 2

Organizational Chart

A. Type of Operation

The proposed project will be a partnership type of

business. And will be managed by the proponents. The working

personnel will have its duties and can work in vice versa.

And since, the business is just starting; the working

personnel will be the proponents themselves.

The proposed project will operate from Monday’s to

Friday.

Purchaser/ Manager

Cook

Delivery / Personnel / Cashier

Job Analysis

Job Description

Purchaser / manager

Manages the whole operation scheme;

Checks the products quality control;

Responsible for the purchasing of the ingredients;

Responsible for checking of purchases and expenses;

Assist the baker;

Handles customer complaints and queries;

Take charge of all inventories.

Delivery Personnel/ Cashier

Responsible for delivering the product;

Issues receipt;

Balances cash and prepares cash report;

Records the daily sales in the record book;

Responsible for summing up the monthly and yearly sale;

Cook

Responsible for the quality of the product.

Maintains the cleanliness of the production area.

Responsible for the whole kitchen operation.

Contributes to the innovation of new products in the future.

Operating Policies and Schedules

Business operation will start at eight o’clock in the

morning and will end at five o’clock in the afternoon;

Proponents should respect her co-employee and

customers.

Schedule of duty should be strictly followed.

Orderliness should be observed in the business.

Time management should be observed especially in

delivering the products.

Chapter 5

TECHNICAL STUDY

This chapter contains the project description, utilities,

waste disposal, facilities and equipment, labor requirements and

building layout.

Utilities cover the source of electricity and water supply

and waste disposal cover the proper way of discharging the

garbage.

Facilities and equipment state the tools needed in the

operation and its fixture. Labor requirements state the workforce

of the establishment and the benefits that they can acquire.

Building layout gives a brief summary of the building itself.

Project Description

The proposed project is a home-base type with consignment

basis for the selling. Products will be fully process with the

home of Ms. Leah Huiso at San Isidro Lower, Lala, Lanao del Norte

and will be consigned to different grocery stores such as Metro

Gold Super Mart, Omandam Store, K and L store, Fe A. Escobia,

Abby Store, LJS store, Premier Merchandise, Mercury Drug Store,

RM Pharmacy/ Grocery,

Beverage out of ginger will be the main and only proponent

of the proposed project in the starting years, but would later

innovate ginger products in its milestone. Classic Salabat are of

the two variants which the proposed product offers to the market.

A different salabat will be introduced by the proposed project. A

salabat made from pure ginger and will use a combination of 50%

sugar and 50% honey as the sweetener content. Compared to the

other salabat products, Ginger’s Best beverages have a balanced

sweetness content due to lesser sugars out from the other salabat

sold, and the usage of honey for a ginger beverage is new to the

market.

Products will be produced during a two production per day,

one in the morning and one on the afternoon. The proposed project

will have a new packing for products and will be packed in 250

grams both classic and choco salabat.

Utilities

Electricity and water supply serves a very important role

in business operation. Electricity supply will be provided by the

Lanao del Norte Electric Cooperatives (LANECO) and the water

supply will be provided by the Municipal Water District of

Maranding.

Waste Disposal

Sanitation and hygiene maintenance will be observed by the

proposed project. Thus, two garbage cans will be provided with

black trash bag for proper waste disposal and will be collected

by the garbage collector every Wednesday and Sunday.

Logo Description

The logo of the project will be named as “GINGER’S BEST”

which comes from the main ingredient Ginger. It is colored by

green, yellow and black because it symbolizes the nature and also

it is round shape and green in color because of the belief of

luck.

Logo Design

Sample Food Costing

Classic Salabat

Ginger (1 kg) Php 80.00Brown sugar (1kg) 40.00

Php 120.00

Overhead Cost 30% Php 36.00Labor Cost 10% 12.00Profit 45% 54.00Total Php 222.00

= 8 packs / 27.85 per pack

Salabat (choco)

Ginger Php 80.00Brown sugar 40.00Powdered choco 38.00

Php 158.00

Overhear Cost 30% Php 47.4Labor Cost 10% 15.8Profit 45% 71.1Total Php 292.3

= 8 packs / 36.53 per packs

Chapter 6

SOCIO – ECONOMIC STUDY

This chapter determines the socio – economic contributions

of the project. It shows how this people develop the community,

save, use and lowering the price of local materials in the

implementation of the project.

Demand

To provide the customer’s demand, GINGER’S BEST will

entertain comments and suggestion since there will be number and

the email address provided and will be printed in every product’s

packaging. This will help in enhancing and provide suggestive

factors about the products.

Supply

Part of the raw materials to be used in GINGER’S BEST will

be locally purchased. Supply for ginger will come from the

plantation of ginger which is located at Barangay De Asis,

Kapatagan, Lanao del Norte, in which the production can sustain

the proposed project the aimed and needed amount of ginger for

production and also the grandfather of one of the proponents

owned one of the ginger farming field in the said location of

ginger plantation. Another option will be the public market that

can provide the supply of ginger during market days.

Chapter 7

FINACIAL STUDY

It also presents detailed figures to show the improvement of

the project’s financial condition over time. These may be shown

by the preparation of statements and schedules on the profits

expected to be realized, modes of financing needed to optimize

the project performance and other financial conditions which are

vital to the business success of the venture.

Project Cost Estimated

Particular Fix Assets

Office Equipment Php 300

Kitchen Equipment 4, 775

Kitchen Utensils 2,040

Cleaning and General Supplies 730

Furniture and Fixture 1,900

Other Necessities 4,900

Total Php 14, 645

Add: Operating Expense Php 450.00

Personnel Uniform 2,000.00

Meal Allowance 1,000.00

Transportation Allowance 1,090.00

Business Permit 200.00

Water Consumption 200.00

Light Consumption 2,000.00

Losses and Breakage 670.00

Advertisement and Promotion 633.00

Maintenance Cost 8,243

Total Php 8,243.00

Working Capital Php 5,880.00

Total Project Cost Estimated Php 28,468.00

Facilities and Designs

1. Equipment

Quantity Unit Item Description

Unit Price Total Price

1 Piece Calculator Php200.00 Php200.001 Piece Scissor 100.00 100.00

Total Php 300.00

2. Supplies

Quantity Unit Item Description

Unit Price Total Price

1 Piece Record Notebook

Php 100.00 Php 100.00

2 Pieces Ball pen 6.00 12.006 Pieces Scotch Tape 3.00 18.006 Pieces Long

Envelope5.00 30.00

6 Pieces Folder 7.00 42.006 Pieces Fastener 3.00 18.00

Total Php 220.00

3. Kitchen Equipments

Quantity Unit Item Description

Unit Price Total Price

2 Unit Working Table

Php 750.00 Php1,500.00

500 Pieces Fire Wood 2.00 1,000.003 Unit Wok 300.00 900.001 Unit Weighing

Scale1,000.00 1,000.00

3 Pieces Wooden Laddle

125.00 375.00

Total Php 4,775.00

4. Kitchen Utensils

Quantity Unit Item Description Unit Price Total Price3 Pieces Kitchen Knives Php 100.00 Php 300.003 Pieces Basin 50.00 150.003 Pieces Chopping Board 30.00 90.003 Pieces White Cloth50 50.00 150.002 Piece Sifter 200.00 400.001 Set Measuring Cups 300.00 300.003 Piece Hard towel 50.00 150.00

Total Php 2,040.00

4. Cleaning and General Supplies

Quantity Unit Item Description

Unit Price Total price

2 Pieces Trash can Php 150.00 Php 300.001 Piece Dust pan 90.00 90.001 Kilogram Detergent

Powder120.00 120.00

2 Pieces Apron 60.00 120.002 Boxes Anti -

Bacterial Soap

20.00 40.00

1 Piece Soft Broom 60.00 60.00Total Php 730.00

Other Necessities

Quantity Unit Item Description

Unit Price Total Price

1 Unit Wall Clock Php 200.00 Php 200.001 Unit Sealed 500.00 500.00

700 Pieces Plastic Ware 600.00 4,200.00Total Php 4,900.00

Personnel Uniform

Quantity Unit Item Description

Unit Price Total Price

3 Pieces T-shirt with Print

Php 150.00 Php 450.00

Total

Furniture Fixture

Quantity Unit Item Description

Unit Total

3 Pieces Plastic Chair

Php 300.00 Php 900.00

2 Pieces Table 500.00 1,000.00Total Php 1,900.00

Maintenance Cost

Maintenance Cost PriceRecord book Ᵽ100.00Ball pen 12.00Scothtape 18.00Long Envelope 30.00Folder 35.00Fastener 18.00Dishwashing Liquid 110.00Anti-bacterial Soap 40.00Detergent powder 120.00

Total Ᵽ 633.00

Estimated Life Span

Particulars that have a 1 year estimated life span

Item Description Estimated Life SpanHand Towel 1 yearWhite Cloth 1 yearSoft Broom 1 YearWall Clock 1 Year

Particulars that have a 2 years estimated life span

Item Description Estimated Life SpanMeasuring Cups 2 years

Knives 2 yearsScissors 2 years

Wooden Ladle 2 years

Particulars that have a 5 years estimated life span

Item Description Estimated Life SpanCalculator 5 years

Wok 5 yearsSealed 5 yearsBasin 5 years

Mixing Bowl 5 YearsSifter 5 Years

Chopping Board 5 YearsWeighing Scale 5 Years

Particulars that have 7 years estimated life span

Item Description Estimated Life SpanPlastic Chair 7 years

Tables 7 years

Schedule of Depreciation

Acquisition CostFormula: Depreciation Cost= Estimated Life Span

Particular Cost Life Span DepreciationOffice

EquipmentP300.00 2 years P150.00

Kitchen Equipment

4,775.00 5 years 955.00

Kitchen Utensils

2,040.00 5years 408.00

Furniture and Fixture

1,900.00 7 years 271.50

Other Necessities

4,900.00 5years 980.43

Total P13,915.00 P2,764.43

Total Project Cost Estimated

Particulars CostFixed Assets ₱14, 645Operating Expense ₱8,243.00Working Capital ₱5,880.00

Total ₱28,468.00

Working Capital

Ginger 30 Kg Php 2,000.00Sugar 30 Kg 1,200.00Condense Milk 30 cans 1,140.00Chocolate Powder 30 Packs 1,140.00Total Php 5,580.00

Major Assumptions:

1. Meal allowance will increase (3) % three percent after 2

years of operation.

2. Transportation fee will have an amount of 12,000.00 and will

increase 3% annually.

3. Permit and license fees will have an amount of ₱ 1,090.00 and

will remain constant at ₱ 1,143. 68 in the next year to come.

4. Repair and maintenance will have an allocated budget at ₱

633.00 and will increase by 5% after 3 years of operation.

5. Uniform allowance will have an amount of ₱ 450.00 for the

first year of operation and will increase by 4% annually.

6. Losses and breakages will have an amount of ₱ 2,000.00 and

will remain constant in succeeding years.

7. Water consumption will have an amount of ₱ 2,400.00 for the

first year of operation and will increase 2% annually.

8. Advertisement and promotions will have an amount of ₱ 670.00

and will decrease annually by 5%.

9. Office and cleaning supplies will have an amount of ₱

1,030.00 for the first year of operation and will increase by

5% annually.

10. Light and power will have an amount of ₱ 2,400.00 for the

first year of operation and will increase by 3% annually.

10. Depreciation cost will be ₱ 2,764.43 and will increase by 3%

annually.

11. Sales will have an amount of ₱197,760.00 and will increase

by 3% annually.

12. Total purchased is assumed to be 40% of the annual sales.

13. Thirty- two percent (32%) of the gross profit will serve

as an income tax expense.

Forecasted Sales of Product

Wherein:

N = Number of Product

A = Amount of Product

T = Total sales

Formula for maximum sales of product:

N x A = T

ProductEstimated Number of

product sold

Amount of product

Less 10% Total sales

Salabat (Choco)

16 36.00 36 324.00

Salabat (Plain)

16 27.00 39 350.00

Total 37 Php674.00

Table of Sales Forecasted

Sales per day Php824.00

X 5

Php4, 120

Sales per week X 4

Php16, 480

Sales per month X 12

Total Annual Sales: Php197, 760

Ginger’s Best Consignee

Consignee Product No. Sold Price Total Less 10% Total

Metro

Goldsupermart

Plain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

K and LPlain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Red storePlain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Omandam

store

Plain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Mercury Drug

Store

Plain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Javs Mini

Mart

Plain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Honey MartPlain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Magdales

store

Plain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Yad’z StorePlain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

Iris StorePlain Salabat 10 ₱ 27 270 27 243

Choco Salabat 13 ₱ 36 468 46 422

Ginger Candy 10 ₱ 19 109 10 99

TOTAL( EVERY 15TH DAY OF A MONTH) ₱ 8,360

TOTAL PER MONTH ₱ 16,480

Financial Statement

I. Test Profitability

Net Before Tax

A. Net Profit Margin = Annual Sales X 100

YearNet Income Before

TaxAnnual Sales Net Profit

2017 52,758.57 197,760.00 26%

2018 53,423.12 203,692.8 26%

2019 57,039.91 209,803.52 27%

2020 59,083.23 216,097.68 27%

2021 62,045.14 222,580.61 28%

II. Test of Capital Investment

A. Average rate of Return =

=

= 65%

B. Payback Period =

=

=

Average Net IncomeTotal Project Cost * 100

18,70728,468x 100

Total Average CostAverage Net Income

28,46818,707

1.2 / one year

APPENDIX “G”

Ginger’s Best Assumption Milestone

Year Assumption Milestone

2019Innovation of new ginger

products

2020Hiring of employees

2021Putting up a stall

2022Distribution of Ginger’s Best

to other municipalities.

APPENDIX “J”

Computation of Monthly Light and Power Consumption

Lighting

40 w x 2 x 22= 1,760 w =1,760 w1,100

=1.76 kw x Php 9/ kw

= Php 15.84

Power

890 w x 4 x 22 = 78,320 w

=78,320 w 1,000

=78.32kw x Php 9/ kw

= Php185.85

Total = Php 15.94 + Php185.96

= Php200.00 per month

APPENDIX “I”

Computation of Monthly Water Consumption

Occupant-2

Consumption/Person/Pay-25

Number of Days of Operation/MO.-24

LET:

N- Monthly water bill

N-2(25) =50 (24) = 1,200 GR. /MO

N=4,560 LIT/MO.

N=4.65 cubic meter/MO.

Water Rate- First 10 cubic meter =Php 250.00

N= Php 200.00

Bibliography

Books

1.) Cobe, Patricia. How You Plan and Prepare Meals.

Webster Division.McGraw-Hill Book Company

2.) Smith, Claire Gordun.1998. Basic Flavorings Ginger.

Courage Books, an imprint of Running Press

Book Publishers 125 South Twenty-Second

Street Philadelphia, Pennsylvanian 19103-4399

3.) Brown, Amy. 2005. Understanding Food Principles and

Preparation. 2nd edition. Wadsworth Publishing Company.

4.) Eustaquio, Ditablan S. 2005. Feasibility Study Handbook.

Mandaluyong City: National Bookstore.

5.) Andrews Sudhir. 2008. Food & Beverage Management: New

Delhi: M6 Graw – Hill Publishing Company Limited

6.) Microsoft Encarta 2008. 1993 – 2007 Microsoft

Corporation.

7.) Paterno, Vicente T. 1975. Preparing Project Feasibility

Studies. Volume 2. Avenue Quezon City: Friends

Enterprises.

8.) White, Bennette Ruth. 1985. Food and your Future. New

Jersey: Prentice – Hall, Inc.

Unpublished Materials

Colot, Lady Flor M; Burlat, Manilyn P. 2012.“UBENG-

UBE”.Feasibility Study, Mindanao State University – Maigo School

of Arts and Trades.Maigo, Lanaodel Norte. April 11, 2012

Webliography

http://www.shapefit.com/healthy-snack-foods.html

http://www.lala.gov.ph/wpeontent/uploads/2010/03lala-LGU-profile-

history.pdf.

http://en.wikipedia.org/wiki/Gingerproducts

Lay-out of the Project