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

nutrients

benefits
that

the National

towards

easily

Library

consumers

assimilate

of

Medicine,

since

the
part

it

body.
of

the

has

essential

According
NIH

to

(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-salabat1388742).
In accordance with this matter, Gingers Best beverages was
founded by the idea of introducing the wonder of Ginger and bring
the products closer to the general public in an innovative flavor
and content that will surely catch the taste buds of health
conscious consumers and gradually become part of the customers
daily food intake.
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 doesnt 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

chocolate to milk and other flavors offered.

ranging

from

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 Gingers 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 consumers health.

Location of the project

Gingers 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 proponents 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
Gingers Best is a kind of beverage made from a natural
ginger in a powdered form. It is naturally processed with no
artificial flavor or preservatives added. It offers variants of
flavor the Classic Salabat and Choco Salabat that will give a new
bound taste to consumers with the 50% honey and 50% sugar content
of the salabat products that only the proposed projects 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 Salabat and

Classic Salabat.

Vision
Gingers

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 gingers 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
Planning for the

Date

March 2017
project
Preparation for the

II

April 2017
project
Presentation of the

III

May 2017
feasibility study
Application for the

IV

business permits and

June August 2017

license
Price canvassing for
V

the materials needed

September 2017
for the product
Arranging of the

VI

materials needed for

October 2018

the product
Promotion of the

November - December

project

2017

VII

Figure 1
Project Time Table
Nature

of

the

Project.

Gingers

best

is

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.

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. Gingers 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 wont 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.

Below shows the product preparation guide:

Classic Salabat Ingredients: (the quantity of the ingredients is
according to number of salabat to be produce)

1 kg. Fresh Ginger

kg. brown sugar

Method:
1. Wash ginger 5-6 times in fresh water each time or until ginger
gets

very

clean.

We

don't

2. Chop ginger in to small pieces.

have

to

peel

ginger.

Smaller you make better it

is.
3. Sundry ginger pieces in a clean cloth for 2 days or until
ginger gets completely dried, it may take 1 day or 3-4 days too.
4. Once ginger is totally dried pulse in mixer or spice grinder
into

fine

powder

in

batches

if

making

in

large

quantity.

5. Sieve ginger powder, transfer back the remaining amount into

mixer

and

grind

again.

6. Sieve one more time and sundry for 30 minutes ginger powder
again.
7. Store in air tight container and use as required.

Choco Salabat Ingredients: (the quantity of the ingredients is

according to number of Choco Salabat to be produce per day)

1 kg. Fresh Ginger

kg. brown sugar

250 grms.Powdered Choco

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

materials

ginger

farmers

especially

and

ginger

vendors
for

the

through

purchasing

production

of

raw

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 Gingers 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.
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

municipalities

consumers

purchased

on

coming
marketing

from

the

during

the

neighboring
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.
Recently, Maranding, Lala, Lanao del Nortes 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

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

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

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. Gingers Best will offer a good quality of ginger
products such as Classic Salabat and Choco Salabat that will
satisfy the taste of prospect consumers, that comprises of adults
and health conscious customers from the locality.

Product. The products will be cooked in its traditional way

in

able

to

maintain

the

original

taste

of

the

food.

But,

presentation will be something different. The proponents wants

to emphasize the importance of appearance of packaging and food
preparation enable to attract customers as well as to achieve

customers delight through safe and quality products. Gingers

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.

Posters

will

be

placed

in

the

proponents production area. The design of the poster can able to

catch the attention of the customers because of the information
provided as well as its aesthetic. Chosen colors are pleasing to
the eye and will surely boost the interest of the customers to
try and taste the product. Also, the proponents will be using
free website in order to reach wider range of possible customers.
This will be of great help for the consumers to know the concept
behind

Gingers

Best

beverage.

It

will

also

provide

good

communication relationship in ways that, the proponents will be

giving information and customers will be giving comments and

suggestions for product improvements and other concerns.

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 Gingers Best proposed project. These 100
respondents

were

come

from

the

present

total

population

of

Maranding, Lala Lanao Del Norte and the proponents used the
Slovenes formula. The survey was distributed among the residents
of Lala. It was used so that the proponents would be able to know
the respondents perception and preference regarding to their
proposed business.

Slovenes Formula
The proponents used the Slovenes 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

peoples

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 customers taste and preferences when
it

comes

to

gingers

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 gingers 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
Purchaser/
Manager

Cook

Delivery / Personnel / Cashier

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 Mondays to
Friday.

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

Issues receipt;
Balances cash and prepares
Records the daily sales in
Responsible for summing up

the product;
cash report;
the record book;
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 oclock in the

morning and will end at five oclock 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, Gingers Best beverages have 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

Maranding.

Waste Disposal

provided

by

the

Municipal

Water

District

of

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 GINGERS 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)
Brown sugar (1kg)

Php 80.00
40.00
Php 120.00

Overhead Cost 30%

Labor Cost 10%
Profit 45%
Total

Php 36.00
12.00
54.00
Php 222.00
= 8 packs / 27.85 per pack

Salabat (choco)
Ginger
Brown sugar
Powdered choco

Php 80.00
40.00
38.00
Php 158.00

Overhear Cost 30%

Labor Cost 10%
Profit 45%
Total

Php 47.4
15.8
71.1
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 customers demand, GINGERS BEST will
entertain comments and suggestion since there will be number and
the email address provided and will be printed in every products
packaging. This will help in enhancing and provide suggestive
factors about the products.

Supply
Part of the raw materials to be used in GINGERS BEST will
be

locally

plantation

purchased.
of

ginger

Supply
which

is

for

ginger

located

at

will

come

Barangay

from
De

the

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 projects 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
Office Equipment
Kitchen Equipment
Kitchen Utensils
Cleaning and General Supplies
Furniture and Fixture
Other Necessities
Total
Add: Operating Expense
Personnel Uniform
Meal Allowance
Transportation Allowance
Business Permit
Water Consumption
Light Consumption
Losses and Breakage
Advertisement and Promotion
Maintenance Cost
Total
Working Capital
Total Project Cost Estimated

Fix Assets
Php 300
4, 775
2,040
730
1,900
4,900
Php 14, 645
Php 450.00
2,000.00
1,000.00
1,090.00
200.00
200.00
2,000.00
670.00
633.00
8,243
Php 8,243.00
Php 5,880.00
Php 28,468.00

Facilities and Designs

1. Equipment
Quantity

Unit

1
1

Piece
Piece

Item
Description
Calculator
Scissor

Unit Price

Total Price

Php200.00
100.00

Php200.00
100.00

Total

Php 300.00

2. Supplies
Quantity

Unit

Piece

2
6
6

Pieces
Pieces
Pieces

6
6
Total

Pieces
Pieces

Item
Description
Record
Notebook
Ball pen
Scotch Tape
Long
Envelope
Folder
Fastener

Unit Price

Total Price

Php 100.00

Php 100.00

6.00
3.00
5.00

12.00
18.00
30.00

7.00
3.00

42.00
18.00
Php 220.00

3. Kitchen Equipments
Quantity

Unit

Unit

500
3
1

Pieces
Unit
Unit

Pieces

Item
Description
Working
Table
Fire Wood
Wok
Weighing
Scale
Wooden
Laddle

Unit Price

Total Price

Php 750.00

Php1,500.00

2.00
300.00
1,000.00

1,000.00
900.00
1,000.00

125.00

375.00

Total

Php 4,775.00

4. Kitchen Utensils
Quantity
3
3
3
3

Unit
Pieces
Pieces
Pieces
Pieces

Item Description
Kitchen Knives
Basin
Chopping Board
White Cloth50

Unit Price
Php 100.00
50.00
30.00
50.00

Total Price
Php 300.00
150.00
90.00
150.00

2
1
3
Total

Piece
Set
Piece

Sifter
Measuring Cups
Hard towel

200.00
300.00
50.00

400.00
300.00
150.00
Php 2,040.00

4. Cleaning and General Supplies

Quantity

Unit

2
1
1

Pieces
Piece
Kilogram

2
2

Pieces
Boxes

1
Total

Piece

Item
Description
Trash can
Dust pan
Detergent
Powder
Apron
Anti Bacterial
Soap
Soft Broom

Unit Price

Total price

Php 150.00
90.00
120.00

Php 300.00
90.00
120.00

60.00
20.00

120.00
40.00

60.00

60.00
Php 730.00

Other Necessities
Quantity

Unit

1
1
700
Total

Unit
Unit
Pieces

Item
Description
Wall Clock
Sealed
Plastic Ware

Unit Price

Total Price

Php 200.00
500.00
600.00

Php 200.00
500.00
4,200.00
Php 4,900.00

Personnel Uniform
Quantity

Unit

Pieces

Total

Item
Description
T-shirt with
Print

Unit Price

Total Price

Php 150.00

Php 450.00

Furniture Fixture
Quantity

Unit

Pieces

2
Total

Pieces

Item
Description
Plastic
Chair
Table

Unit

Total

Php 300.00

Php 900.00

500.00

1,000.00
Php 1,900.00

Maintenance Cost
Maintenance Cost
Record book
Ball pen
Scothtape
Long Envelope
Folder
Fastener
Dishwashing Liquid
Anti-bacterial Soap
Detergent powder
Total

Price
100.00
12.00
18.00
30.00
35.00
18.00
110.00
40.00
120.00
633.00

Estimated Life Span

Particulars that have a 1 year estimated life span
Item Description
Hand Towel
White Cloth
Soft Broom

Estimated Life Span

1 year
1 year
1 Year

Wall Clock

1 Year

Particulars that have a 2 years estimated life span

Item Description
Measuring Cups
Knives
Scissors
Wooden Ladle

Estimated Life Span

2 years
2 years
2 years
2 years

Particulars that have a 5 years estimated life span

Item Description
Calculator
Wok
Sealed
Basin
Mixing Bowl
Sifter
Chopping Board
Weighing Scale

Estimated Life Span

5 years
5 years
5 years
5 years
5 Years
5 Years
5 Years
5 Years

Particulars that have 7 years estimated life span

Item Description
Plastic Chair
Tables

Estimated Life Span

7 years
7 years

Schedule of Depreciation

Acquisition Cost
Formula: Depreciation Cost= Estimated Life Span

Particular
Office
Equipment
Kitchen
Equipment
Kitchen
Utensils
Furniture and
Fixture
Other
Necessities
Total

Cost

Life Span

Depreciation

P300.00

2 years

P150.00

4,775.00

5 years

955.00

2,040.00

5years

408.00

1,900.00

7 years

271.50

4,900.00

5years

980.43

P13,915.00

P2,764.43

Total Project Cost Estimated

Particulars
Fixed Assets
Operating Expense
Working Capital
Total

Cost

14, 645
8,243.00
5,880.00

28,468.00

Working Capital

Ginger
Sugar
Condense Milk
Chocolate Powder
Total

30
30
30
30

Kg
Kg
cans
Packs

Php 2,000.00
1,200.00
1,140.00
1,140.00
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
Product

Estimated
Number of
product sold

Amount of
product

Less 10%

Total sales

16

36.00

36

324.00

16

27.00

39

350.00

Salabat
(Choco)
Salabat
(Plain)
Total

32

Php674.00

Table of Sales Forecasted

Sales per day

Php824.00
X

Php4, 120
Sales per week

Php16, 480
Sales per month X

12

Total Annual Sales: Php197, 760

Gingers Best Consignee

Consignee

Product

No. Sold

Metro

Plain Salabat
Choco Salabat

10
13

Plain Salabat
Choco Salabat

Price

Total

Less 10%

Total

27
36

270
468

27
46

243
422

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Goldsupermart

K and L

Red store
Omandam

store
Mercury Drug

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Plain Salabat
Choco Salabat

10
13

27
36

270
468

27
46

243
422

Store
Javs Mini
Mart
Honey Mart
Magdales
store
Yadz Store

Iris Store

8,360
16,480

TOTAL( EVERY 15TH DAY OF A MONTH)

TOTAL PER MONTH

Financial Statement
I.

Test Profitability
Net Before Tax
A. Net Profit Margin =

Annual Sales X 100

Year

Net Income Before

Tax

Annual Sales

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%

Net Profit

II. Test of Capital Investment

A. Average rate of Return

Average Net Income

Total Project Cost * 100

18,707
28,468x 100

=
=

B. Payback Period

65%
Total Average Cost
Average Net Income

28,468
18,707

1.2 / one year

APPENDIX G
Gingers Best Assumption Milestone

Year
2019
2020
2021
2022

Assumption Milestone
Innovation of new ginger
products
Hiring of employees
Putting up a stall
Distribution of Gingers 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 w
1,100
=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.UBENGUBE.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-profilehistory.pdf.
http://en.wikipedia.org/wiki/Gingerproducts

Lay-out of the Project