"BAMA Gaufre" 2 -

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Introduction

Waffle has been introduced during 14th to 16th century, and it has been

known to be a household snack or a light meal to those people who are in a

hurry. In the Western Countries, such as United States of America, they consider

waffle as a breakfast meal which pairs with a maple syrup and fruit juice or black

coffee. Now, in today’s generation, waffle has evolved itself by not just only a

household food but into a more marketable business such as the world renowned

Belgian Waffle and the Philippines’ Waffle Time. Waffle, a classic yet renowned

snack has not only fed up the Western countries but the entire world already with

different variations and twist. In our group, this snack will be laid with a little twist

from its original concept and will be known as the “BAMA Gaufre”.

BAMA Gaufre (pronounced as “goof”) is a derivation of two main raw

materials of the product. The Banana and Mango which the name BAMA came

from and the first two letters of the fruit was combined to become the word

“BAMA”. On the other hand, Gaufre is a French word which means Waffle in

which French is one of the three main languages the country of Belgium uses

that is said to be the origin of Waffle.

The concept of BAMA Gaufre, is to use Waffle recipe which is the culprit

why the snack is a heavy meal since it uses ingredients similar into making waffle

which is prepared through waffle iron. However, the BAMA Gaufre will not be

cooked into a Waffle Iron which is should be done when cooking waffles but in

our case, it will be steamed. Moreover, the BAMA Gaufre will be a more

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innovative product using the abundance of our local crops here in the Philippines

most especially in Mindanao.

Being one of the largest exporters of Banana and Mangos in Asia, our

product is pertinent for this. In a tropical country, such as ours

(http://www.hobotraveler.com/tropical/list-of-tropical-countries.php), these fruits

are not any more seasonal yet a whole year round crop which is available in

every farm. Ripe Mangoes and Banana will serve as the filling of the product thus

making it as “BAMA Gaufre”. By the name itself, it would somehow generate

curiosity to the consumer because the name is peculiar.

Our proposed product, the BAMA Gaufre, which the local ingredients are

abundant with a reasonable price, will help our local farmer who produce

mangoes and bananas and would somehow improve their economic situation.

Furthermore, our product offers a healthy option to students that are still within

their budget.

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CONCEPTUAL FRAMEWORK

MARKET

ANALYSIS

TECHNICAL

ASPECT

FINANCIAL

ASPECT

MANAGEMENT

ASPECT

SOCIO-

ECONOMIC

BENEFIT

Description

and Outlook

Size of the

Industry

Target

Market

Market

Segmentation

Marketing and

Sales Activities

Detailed

Product

Competition

The Product

Product

Process

Machinery and

Equipment

Structures

Raw

Materials

Details of Financial

Assumption

Initial Capital

Requirement

Cost & Expense

Schedule

Projected

Financial Aspect

Financial

Ratios

Management

Staff Structure

Key Manager

Legal Structure

of the Program

Owners

Socio-

Desirability

Contribution to

Income &

Employment

Socio-Economic

Benefit

Plant

Location

Plant Size and

Production

Plant

Layout

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STATEMENT OF THE PROBLEM

In business environment, determining the competent condition of your product is

very important. This is to know the possible condition of your product in the

middle of the business operation as compared with the any other possible

competitor.

These are the following problems will be considered in taking this feasibility

study.

1. What is the marketing feasibility of the project considering the following:

a) Description and outlook of the industry

b) Size of the Industry

c) Target Market

d) Market Segmentation and Presentation

e) Marketing and Sales Activities

f) Competition

2. What is the technical feasibility of the proposed business considering the

following:

a) The Product

b) Production

c) Machinery and Equipment

d) Plant Size and Production Schedule

e) Plant Location

3. What is the financial feasibility of the proposed business considering the

following:

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a) Details of Financial Assumptions

b) Initial Capital Requirements

c) Projected Financial Statements

d) Financial Ratios

4. What is the management feasibility of the proposed business considering

the following:

a) Management Staff Structure

b) Key Managers and Personnel

c) Legal Structure of the Program

d) Owners

5. What is the socio-economic benefit of the feasibility of the proposed

business considering the following:

a) Social Desirability

b) Contribution to Income and Employment

c) Tax Contribution

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Chapter 2

Market Analysis

This chapter will discuss the description and outlook of the industry, size

of the industry, target market, market segmentation and presentation, market

sales and activities and detailed production and competition.

Description and Outlook of the Industry

Waffle, being one of the most known breakfast meal in Western Countries

such as the United States of America and Europe has been around during the

Medieval Age. This snack has already set its name in every corner of the world.

In these countries, waffle is usually enjoyed during breakfast coupled with a

maple syrup and fruit juice or coffee. Moreover, waffle nowadays comes with

diverse taste and variations depending on the culture where it is being sold.

Here in the Philippines, waffle has become one of the famous snacks

which are commonly seen in schools and malls. For instance, the Philippine’s

Waffle Time has set its name in the market popping out like mushroom in key

cities here in the Philippines. Earlier this year, the Famous Belgian Waffle had

also invaded Cagayan de Oro as one of their market, setting one of their prime

branches at Limketkai Mall and satellite locations in Centrio and SM.

Entrepreneurs tend to open up a franchise business in waffle industry

where urbanization and economic growth is augmenting thus making their

product more profitable. Moreover, Waffle is following global development

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creating a scene in the market of Cagayan de Oro city making it as waffle frontier

in the next few years.

Size of Industry

Waffle Time and the Famous Belgian Waffle is the two major waffle seller

here in the city that is widely scattered in key economic areas such as the malls

and schools. Having been able to satisfy the customer’s taste buds, these two

waffle seller had undisputedly set their pedestal in the market. On the other hand,

by launching our BAMA Gaufre (which is steamed and has a fruit filling) is also

affordable in the marketplace will give the customers a new innovative product to

enjoy and a healthier snack. Our prime target markets are the students of Capitol

University having a population of 4,975.

In Cagayan de Oro city alone, there are more than fifteen waffle outlets.

Although our product is new because it’s different on its original concept, the

taste of BAMA Gaufre is surely Pinoy that is diverse from other present products.

SUMMARY OF RESPONDENTS

Market Segment Total Number of

Respondents Percentage

Arts and Sciences 5 1.35%

Business Administration 69 18.65%

Computer Science 19 5.14%

Criminology 31 8.38%

Education 49 13.23%

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Engineering 24 6.49%

Maritime Education 139 37.56%

Nursing and Midwifery 34 9.2%

TOTAL 370 100%

MARKET SEGMENTATION AND PRESENTATION

The group surveyed a total of 370 respondents.

Year Level

CAS CBA CME

CoCS

CoCrim

CoE CoEng’g

CoN & GM

No. of Respondents

First 1 23 56 10 9 21 6 7 133

Second 1 18 39 5 9 13 4 8 96

Third 2 14 44 2 6 9 5 8 90

Fourth 1 14 0 2 7 7 4 11 44

Fifth 0 0 0 0 0 0 5 0 5

TOTAL 5 69 139 19 31 49 24 34 370

METHODS OF DATA

In this study, we used structured questionnaire in collecting data, wherein

the set of questions was given to the respondents with regards to the product.

The method will help proponents to find out the food inclination of each

respondent that represents our target market. It will help us lead to a new

innovative product that has a big probability to boom in the business world.

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SOURCE OF DATA

The sources of data were accumulated through the results from the

structured questionnaires from the respondents of Capitol University. That

includes the following programs/courses: BS in Maritime Education which has the

greatest sample size of the production of Capitol University, BS in Nursing and

School of Midwifery, BS in Computer Science and Information Technology, BS in

Criminology, BS in Secondary Education and Elementary Education, BS in

Business Administration, BS in Arts and Science and BS in Engineering.

VALIDATION OF INSTRUMENTS

Accurate data were from the results that came from the survey through

our structured questionnaire was answered by the respondents; the survey was

conducted last August 7, 2014

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PRODUCT TASTE

ANSWER No. of Respondents Percentage

YES 358 96.77%

NO 12 3.23%

TOTAL 370 100%

Note: The table shows 96.77% of the respondents have already tasted a waffle.

ANSWER No. of Respondents Percentage

YES 13 3.51%

NO 357 96.49%

TOTAL 370 100%

Note: In this table, it reveals 96.49% of the respondents have not yet eaten a

steamed waffle which means we have a vast possibility in entering the waffle

industry with a new innovative product

.

CONSUMPTION TO RAW MATERIALS

ANSWER No. of Respondents Percentage

Mango Only 49 13.25%

Banana Only 12 3.26%

I eat both 285 77%

I don’t eat both 24 6.49%

TOTAL 370 100%

Note: The table tells us 77% of the respondents eat both ripe mangos and

bananas and only 6.49% are the ones who don’t eat both mango and banana.

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WILLINGNESS TO BUY

ANSWER No. of Respondents Percentage

YES 231 62.43%

NO 18 4.86%

MAYBE 121 32.71%

TOTAL 370 100%

Note: The table shows 62.43% of the respondents are willing to buy a new

version of a waffle.

Q#5 Do you wish to pair your Steamed Waffle with a drink?

94.86% percent of the respondents agreed to pair their waffle with a drink.

Q#6 What drink would match the Steamed Waffle?

This table shows 35.71% of the respondents would prefer Juice to match the

product, followed by Shake, Soda and Water.

YES 351 94.86%

NO 19 5.14%

TOTAL 370 100%

Soda 94 26.86%

Water 30 8.57%

Juice 125 35.71%

Shake 101 28.86%

TOTAL 350 100%

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Q#7 What do you consider in buying a product?

Our respondents consider Quality in buying a product which is then followed by

Price, Brand and its Packaging.

Quality 213 57.57%

Brand 33 8.91%

Packaging 28 7.57%

Price 96 25.95%

TOTAL 370 100%

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MARKET SEGMENTATION AND PRESENTATION

According to Sakana Maki Sushi’s Feasibility Study, they stated the

students of the specified courses have a daily allowance ranges from 30-100

pesos. More so, 62% of the respondents are willing to try the product.

Our product, the BAMA Gaufre, provides a high nutritional value compare

to other waffle being sold in the market, wherein the market itself can enjoy

without the fear of acquiring health problems. However, we will emphasize too

much of anything is not good.

Students nowadays are now prone and vulnerable of acquiring early

health problems because of the unhealthy foods that are exposed to them that

are sold in the sidewalks. Not mentioning the pollutions, dust and other airborne

diseases may acquire by those products since it sold in the street. We also saw

this threat that’s why creating health beneficial food products is our chief

objectives.

MARKETING SALES AND ACTIVITIES

To uphold our product by the customers in the market, we will distribute

flyers and leaflets in selected places in the city like schools and malls and other

strategic locations.

We will also use social networking sites as a medium of our

advertisement; it is a common knowledge today that most of the people

(http://www.emarketer.com/Article/Social-Networking-Reaches-Nearly-One-Four-

Around-World/1009976) have their own Facebook, Twitter, Instagram and other

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similar social networking sites. This advertisement is free and there would be no

additional marketing and promotional expenses in our part.

To entice more customers to buy our product, posters and vast tarpaulins

are neatly displayed in store area containing all the necessary advertisement and

product information so our customers can have an easy outlook and product

knowledge.

“BAMA GAUFRE”

DESCRIPTION OF THE PRODUCT

Waffle is one of the oldest products invented; it started during the

medieval times, around 9th to 10th century and was later on introduced to the

whole world during the 14th to 16th century.

By the early 20th century, waffle recipes become rare in recipe books, and

only 29 professional waffle craftsmen, the oublieurs, remained in Paris. Waffles

were shifting from a predominately street-vendor-based product to an

increasingly homemade product, aided by the 1918 introduction of GE’s first

electric commercial waffle maker. By the mid-1930s, dry pancake/waffle mix had

been marketed by a number of companies, including Aunt Jemima, Bisquick, and

a team of three brothers from San Jose, Calif. – the Dorsas. It is the Dorsas who

would go on to innovate commercial production of frozen waffles, which they

began selling under the name “Eggo” in 1953

(http://en.wikipedia.org/wiki/Waffle#History).

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In the 21st century, waffle continues to evolve. What began as flour and

water heated between two iron plates

(http://www.tastespotting.com/search/waffles/1) or commonly known as waffle

irons, are now popular worldwide. These are produces in different varieties, sizes

and flavors, with has distinctive taste depending on the culture taste of the

customer where it is created.

Today, consumers have become more health conscious on the product

they eat. In order to compete with the new trend in the market arena, developing

healthier products with a delicious taste is a grand concept. The research

signifies consumers are drifting en route for convenience, health and wellness.

Mango, the products main ingredient contains varieties of phytochemical

and nutrients which are under preliminary research for their potential various

disease process.

Banana is known for its potassium content which is beneficial for

cardiovascular aspects. It also contains low glycemic carbohydrates with fiber

that speeds up the digestions; banana also contains vast amounts of vitamins,

nutrients and minerals.

The Cagayan de Oro business environment as well as its municipal zest

combined with its (http://www.zamboanga.com) warm and easy nature of the

local people. These give it an independent setting that gives numbers of

businessmen to stay in the city for good.

This project will help to give employment to the local people, and will help

to grow the economy of the city by paying tax and purchasing resources from the

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local farmers who grow mangos and bananas. The local farmers will supply

tomato and mango will have a regular customer for their products and regular

income.

COMPETITION

The following are the firms/establishments that offer Waffle in key areas

here in Cagayan de Oro.

1. Famous Belgian Waffle

2. Waffle Time

The above mentioned competitors are the two major waffle sellers that

offer varied waffle flavors in Cagayan de Oro; they also provide best selling

waffle available in the market.

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CHAPTER 3

Technical Study

This chapter will discuss the product, its process, production schedule,

equipment used, plant size and plant layout and structures.

THE PRODUCT

The BAMA Gaufre, the new twist in waffle, is made by using the waffle

mixture similar in making a homemade waffle. However, our product does not

follow the usual concept in making a waffle which is using a waffle iron to cook it

but it is done by steaming the waffle. The filling of the waffle is the mango and

banana. The waffles are sliced into identical slices and can be served with

cheese on top of it.

PRODUCTION PROCESS

Ingredients and Preparation of the Waffle Recipe:

3 eggs

1 ½ cups milk

one tablespoon baking powder

¼ teaspoon salt

1/8 cup of condensed milk.

2 cups flour

½ cup melted butter

1/2 cup sugar

one tablespoon vanilla

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Butter

Mashed mango

Preparing the steamer and fruits

Add some water in the steamer.

Slice the Banana into rectangular strips and line strips with the mango.

Mixing the ingredients

Mix all the dry ingredients (flour, sugar, salt and baking powder) into one

large bowl.

In a separate bowl, mix the eggs and melted butter. Beat the mix

ingredients thoroughly.

Mixed altogether the dry ingredients with the eggs and butter into a large

bowl and add milk, vanilla and condensed milk.

It should be mixed thoroughly until there are no visible small groups of

flour.

Add the mashed mango and stir.

Steaming the BAMA Gaufre

Prepare the molding Tupperware.

Put a moderate amount of the Waffle Recipe into the Tupperware and put

the Banana and Mango on top of it for the filling. Once done putting the

fruits, add another layer of the Waffle recipe.

Cover the Tupperware with aluminum foil to prevent the water from

dripping into the product. Put it into the steamer in 15 to 20 minutes.

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Get the product from the steamer and turn the Tupperware upside down

into a plate; it will slide down automatically to the plate. To garnish, add

some quick melt cheese.

Slice the Steamed Waffle and it’s ready to serve.

PLANT SIZE AND PRODUCTION SCHEDULE

YEAR DAILY (unit)

TOTAL UNITS

(year)

TOTAL AMOUNT

(year)

1st 35 slices 6,720 P 100,800

2nd 45 slices 8,640 129,600

3rd 45 slices 8,640 129,600

4th 60 slices 11,520 172,800

5th 75 slices 14,400 216,000

TOTAL 260 slices 49,920 P 748,800.00

Machinery and Equipment

The product requires electric equipment such as steamer for cooking the

BAMA Gaufre, Refrigerator for storing the finished products and the raw

materials that is being used. We also need measuring cups, large bowls, spatula

and other baking tools for the preparation of the product.

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PLANT LAYOUT

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PLANT LOCATION

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CHAPTER 4

Financial Aspect

In business, management and financial aspect go hand in hand. Proper

management cannot push through without capitalization is properly laid down

through the use of the financial statements.

Details of the Financial Assumptions

The selling price of each slice of the product is Php 15.00 for the first period

of the operation and will increase 2.00 pesos in every period.

1. Demand is 6,720 pieces for the period and will have an increase of 10% in

every period.

2. Purchase is P 17,826 for the first and will have an increase of 10% per

period.

3. Raw materials end is 3% of the total purchase.

4. Office supplies are assumed to increase 5% every period.

5. Business permit and licenses are assumed to be P1,500.00 and will

remain constant for the next five years.

6. Manufacturing overhead (Electricity) will have an increase of 5% per

period.

7. Transportation expense will increase by 5% in every year.

8. Salaries and wages will have 5% in every year.

9. SSS, Medicare is assumed to increase 5% annually.

10. Rental expense is P 1,000 monthly and will remain constant for the next

five years.

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11. Income tax rate is 32%..

12. 13th month pay will increase by 5% annually.

13. Advertisement and Promotion will have an increase of 5% annually.

Form of Ownership

The type of ownership will be Partnership. It is composed of nine (9) partners

wherein each of them will be contributing P 6,667.67 as initial investment. Every

one of them is responsible and liable for any inconsistency in every business

transactions.

The partners will then set specific dates to visit the field to observe and

check the workers. Each of them is paid with equal salary, which is covered up

already in the investment of the partners

Initial Capital Requirements

The project will be operated by the partnership and have a capital

contribution to finance the proposed project. Each contribution of the partners is

as follows.

Partners Form of Investment Amount

Basilio, Christian Cash P 6,666.67

Emilia, John Paul A. Cash P 6,666.67

Itum, Suzette Q. Cash P 6,666.67

Jaguit, Charmaine Cash P 6,666.67

Japson, Denmark Cash P 6,666.67

Maglangit, Garry A. Cash P 6,666.67

Moral Jr., Reynaldo Cash P 6,666.67

Nambatac, Angela P. Cash P 6,666.67

Revil, Luis Lorenzo Cash P 6,666.67

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SCHEDULE 1

FIXED ASSET

Particular Amount

Furniture P 5,700.00

Tools and Equipments 2,800.00

Total P 8,500.00

SCHEDULE 2

SELLING ACTIVITY SCHEDULE

YEAR DEMAND (units)

SELLING PRICE

(Php) Earning (Php)

1st 6,720.00 15.00 P 100,800.00

2nd 7,392.00 17.00 125,664.00

3rd 8,131.20 19.00 154,489.40

4th 8,944.32 21.00 187,830.72

5th 9,838.75 23.00 226,291.25

TOTAL 41,026.27 P 795,078.77

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SCHEDULE 3

PURCHASE OF RAW MATERIALS

ITEMS UOM DAILY MONTHLY YEARLY

AMOUNT

(Php)

Egg Pieces 3 48 576 P 3,000.00

Mangoes Kg .5 8 96 1,200.00

Banana pieces 3 48 576 750.00

Butter Cup 1 16 192 2,000.00

Milk Cup 1.5 24 288 4,000.00

Condense Cup .25 4 48 1,000.00

Flour Cup 2 32 384 3,300.00

Sugar Cup .5 8 96 2,000.00

Calumet Tablespoon 1 16 192 576.00

TOTAL P 17,826.00

SCHEDULE 4

OUTRIGHT EXPENSES

ITEMS QTY

UNIT

PRICE

(Php)

AMOUNT EST. LIFE

(year)

ANNUAL

DEPRECIATION

(Php)

Booth 1 5,000.00 P5,000.00 5 P 1,000.00

Table 1 500.00 500.00 5 100.00

Stool

(chair)

1 200.00 200.00 5 40.00

TOTAL P5,700.00 P 1,140.00

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TOOLS AND EQUIPMENT

ITEM QTY

UNIT

PRICE

(PHP)

AMOUNT

(PHP)

EST.

LIFE

(Year)

ANNUAL

DEPRECIATION

(Php)

Steamer 1 560.00 560.00 5 P 112.00

Stove

(Electric)

1 920.00 920.00 5 184.00

Molder 10 55.00 550.00 5 110.00

Measuring

Cups

6 90.00 per

set

90.00 5 18.00

Mixer 1 40.00 40.00 5 8.00

Bowl 2 75.00 150.00 5 30.00

Tupperware 1 120.00 120.00 5 24.00

Knife 1 60.00 60.00 5 12.00

Ladle 1 125.00 125.00 5 25.00

Food Tong 1 70.00 70.00 5 14.00

Scoop 1 25.00 25.00 5 5.00

Chopping

Board 1 90.00 90.00 5 18.00

TOTAL P 2,800.00 P 560.00

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SCHEDULE 5

OFFICE SUPPLIES

ITEMS QTY (PC)

UNIT PRICE

(Php) AMOUNT

Ballpen 12 5.00 60.00

Columnar 2 25.00 50.00

Paper 500 0.25 125.00

TOTAL P 235.00

SCHEDULE 6

EMPLOYEE SALARY AND WAGES

Daily (Php) Monthly (Php) Yearly (Php)

P 200.00 P 3,200.00 P 38,400.00

Less: Yearly contribution for SSS, Medicare, Pag-Ibig (Php) : 4, 926.00

TOTAL : P 33,474.00

DIRECT LABOR

Per Preparation

Schedule (Php) Monthly (Php) Yearly (Php)

40.00 P 640.00 7,680.00

Less: Yearly contribution for SSS, Medicare, Pag-Ibig (Php) : 985.20

TOTAL : P 6,694.80

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SCHEDULE 7

BUSINESS PERMIT

Permit Amount (Php)

Mayor’s Permit 1,400.00

Fire Permit 100.00

Total P 1,500.00

SCHEDULE 8

OVERHEAD EXPENSES

EXPENSES (Php)

UTILITIES MONTHLY (PHP) ANNUAL (PHP)

Electric P 300.00 P 3,600.00

Water 150.00 1,800.00

TOTAL P 450.00 P 5,400.00

SCHEDULE 9

TRANSPORTATION EXPENSE

DAILY (PHP) MONTHLY (PHP) YEARLY (PHP)

P 14.00 P 224.00 P 2, 688.00

RENTAL EXPENSE

MONTHLY YEARLY (Php)

P 1,000.00 P 12,000.00

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13th MONTH PAY

EMPLOYEE AMOUNT (PHP)

Service Crew P 4,000.00

Waffle Expert 1,000.00

TOTAL P 5,000.00

ADVERTISEMENT AND PROMOTION EXPENSE

COLATERALS EXPENSE (PHP)

Streamers P 300.00

Flyers 300.00

TOTAL P 600.00

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BAMA Gaufre

Statement of Cashflow

For the Years Ended 2014-2016

2014 2015 2,016.00

CASH FLOW AMOUNT AMOUNT AMOUNT

Cash Balance, Beg

60,971.00 87,865.40

Partners Contribution 60,000.00 Sales 100,800.00 125,664.00 154,492.80

TOTAL 160,800.00 186,635.00 242,358.20

Less: Cash Outflow Purchase of Fix Assets 2,800.00

Purchase of Furniture and Fixtures 5,700.00 Purchase of Raw Materials 17,826.00 19,608.60 21,569.46

Payment to Direct Labor 6,694.80 7,029.54 7,381.02

Lights and Water 5,400.00 5,670.00 5,953.50

Salaries and Wages 33,474.00 35,147.70 36,905.09

Transportation 2,688.00 2,822.40 2,963.52

Rent 12,000.00 12,000.00 12,000.00

Advertisement & Promotions 600.00 630.00 661.50

SSS & Philhealth 5,911.20 6,206.76 6,517.10

Permit & License 1,500.00 1,500.00 1,500.00

13th Month Pay and others 5,000.00 5,250.00 5,512.50

Office Supplies 235.00 246.75 259.09

Income Tax 0.00 2,657.85 8,929.83

TOTAL 99,829.00 98,769.60 110,152.60

Cash Balance, End 60,971.00 87,865.40 132,205.60

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BAMA Gaufre Statement of Income

For the Years Ended 2014-2016

2014 2015 2016

AMOUNT AMOUNT AMOUNT

SALES: UNIT SALES 6,720 7,392 8,131.20

SELLING PRICE 15 17 19.00

TOTAL 100800 125664 154,492.80

LESS: COST OF SALES MATERIALS Raw Materials, Beg

534.78 588.26 ADD: Purchase Available for Use 17,826.00 19,608.60 21,569.46

LESS: Materials, End 534.78 588.26 647.08

17,291.22 19,555.12 21,510.63

Direct Labor 6,694.80 7,029.54 7,381.02 FACTORY OVERHEAD

Light and Water 5,400.00 5,670.00 5,953.50 Rent 12,000.00 12,000.00 12,000.00

17,400.00 17,670.00 17,953.50

TOTAL COST OF SALES 41,386.02 44,254.66 46,845.15

GROSS PROFIT 59,413.98 81,409.34 107,647.65

LESS: OPERATING EXPENSE Salaries and Wages 33,474.00 35,147.70 36,905.09

Transportation 2,688.00 2,822.40 2,963.52 Advertisement & Promo 600.00 630.00 661.50 SSS, Philhealth, Pag-Ibig 5,911.20 6,206.76 6,517.10

Permit & Licenses 1,500.00 1,500.00 1,500.00 Office Supplies 235.00 246.75 259.09

13th Month Pay 5,000.00 5,250.00 5,512.50 Outright Expense 1,700.00 1,700.00 1,700.00

TOTAL OPERATION EXPENSE 51,108.20 53,503.61 56,018.79

INCOME BEFORE TAX 8,305.78 27,905.73 51,628.86 Less: INCOME TAX (32%) 2,657.85 8,929.83 16,521.23 INCOME AFTER TAX 5,647.93 18,975.90 35,107.62

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BAMA Gaufre

Statement of Balance Sheet

For the Years Ended 2014-2016

2014 2015 2016

AMOUNT AMOUNT AMOUNT

ASSETS Current Assets Cash 60,971.00 87,865.40 132,205.60

Raw Material, End 534.78 588.258 647.08

Total Current Assets 61,505.78 88,453.66 132,852.68

Non Current Assets Tools and Equipment 2,800.00 2,800.00 2,800.00

Furnitures and Fixtures 5,700.00 5,700.00 5,700.00

TOTAL 8,500.00 8,500.00 8,500.00

Less: Outright Expense 1,700.00 3,400.00 5,100.00

Total Non Current Assets 6,800.00 5,100.00 3,400.00

TOTAL ASSESTS 68,305.78 93,553.66 136,252.68

LIABILITIES and PARTNER'S CAPITAL Tax Payable 2,657.85 8,929.83 16,521.23

Partners Capital 60,000.00 65,647.93 84,623.83

ADD: Net Income 5,647.93 18,975.90 35,107.62

Total 65,647.93 84,623.83 119,731.45

TOTAL LIABILITIES AND CAPITAL 68,305.78 93,553.66 136,252.68

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FINANCIAL RATIOS

2014 2015 2016

Payback Period =

Investment 60,000.00 60,000.00 60,000.00

Net Income 5,647.93 18,975.90 35,107.62

TOTAL

10.62336037 3.161906191 1.709030512

2014 2015 2016

Gross Margin Ratio =

Gross Profit 59,413.98 81,409.34 107,647.65

Sales 100,800.00 125,664.00 154,492.80

TOTAL

0.589424405 0.647833413 0.696781007

2014 2015 2016

Current Ratio =

Current Assets 61,505.78 88,453.66 132,852.68 Current Liabilities 2,657.85 8,929.83 16,521.23

TOTAL

23.1411815 9.90541019 8.041329023

2014 2015 2016

Return of Total

Assets =

Net Income 5,647.93 18,975.90 35,107.62

Total Assets 68,305.78 93,553.66 136,252.68

TOTAL

0.082685981 0.202834345 0.257665557

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FINANCIAL RATIO ANALYSIS

Payback Period

The payback period of the capital invested for the project on its first year will

be ten years after. However, considering that there is an increase of sales

that fallouts having an augmenting amount of the net income, within the next

4 to 5 years, the invested capital will be returned already.

Gross Margin

For the first year of the business, we have 58.94% for our Gross Margin. It

means that after paying off our inventory cost, we still have 58.94% of our

sales revenue to cover our operating costs. Moreover, for the succeeding

year of the business, we have an increase of 5.84% in our Gross Margin that

indicates our company is selling our inventory in a higher profit percentage.

Current Ratio

The Current Ratio of the company is relatively high. As perceived in our

financial ratio, we have more than a 100 times current assets than our

liabilities. The result signifies that our company is capable of paying our

debts as identified on the company’s financial ratio computation.

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Return of Total Assets

Considering that the company is still on its start-up phase, we have a stumpy

percentage on our ROA. However, for the succeeding years of the operation

of the business, it is prominent that our ROA is increasing which is an

indicator that our company can earn a return on investment.

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Break-Even Point in Sales

Units

Solving the above equation for x which equals break-even point in sales units, we

have:

Break-even Sales Units = FC

P – v

Solution

We have,

P = P15

V = 3.65

FC = 24,200.00

Substituting the known values into the formula for the breakeven point in sales

units, we have:

Breakeven Point in Sales Units (x)

BEV = 24,200.00 / (15 – 3.65)

BEV = 24,200.00 / 11.35

BEV = 2132.16 units

Break-even Point in Sales Peso = P 15 x 2132.16

= P 31,982.4

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CHAPTER 5

MANAGEMENT FEASIBILITY

Management Structure

OWNERS

Manager

Worker

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KEY MANAGERS AND PERSONNEL

Owners:

To make sure the business runs correctly.

Has the knowledge of the product the business is offering

Make sure the policies within the business are working, and

employees are following laws.

The owner should be aware of the market for their product and

should find ways to fit their product into the market

Managers:

Managers are usually responsible for ensuring the people assigned

to them are doing their task correctly.

Managers are operating the business well.

Ensure procedures are being followed. Set priorities.

Workers:

Follow the policy of the business.

Taking reasonable care to protect themselves and the business.

Proper use of safety equipment, clothing and device matters.

Cooperating with the workplace safety and health.

Report accidents, occupation illness and near misses.

Cooperate with your employer and supervisor.

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CHAPTER 6

SOCIO-ECONOMIC STUDY

INTRODUCTION

This chapter includes the socio-economic benefits of the proposed project.

The proposed project aims to help our localities and the farmers of the country.

Nowadays, it is important small entrepreneurs should realize the worth of

creating or starting a business would largely contribute to the socio-economic

development of the country.

In this certain project, the researcher considers the whole part of the

business especially the social impact in the community.

CONTRIBUTION TO INCOME AND EMPLOYMENT

The main goal of a certain business is to have high income especially in the part

of the owner. A business should create a harmonious relationship between the

manager and employees to attain the main goal of the business which is to have

income. All workers need income to support their own needs and also for their

service rendered in the business. Building up this business is a great opportunity

for unemployed people to have a job. It will also be their opportunity of having

another source income.

TAX CONTRIBUTION

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The business is expected to give great contribution to the government in

the form of taxes. The tax payment from the business would help the localities as

well as the economy for its future projects especially for the agriculture projects

will benefit farmers. This would help the country to become more progressive.

RECOMMENDATION

After considering all the important factors in the study such as the

marketing, technical, and socio-economic and management study. Based on the

study, it is recommended the proposed project, BAMA Gaufre, will be pursued

and establish at the CU Food Court. It will decrease the unemployment rate and

be able to help our government to improve infrastructures. In order for it to

compete with other pancake business establishments, its product must be

improved.