Fixed Assets Cost Lifespan Yearly

Depreciation

Multicab Php 150,000 10 years Php 15,000

Agrivet and Initial Inventory Monthly Sales Yearly Sales

Agricultural (Supplies)
Supplies

Formulated feeds Php 150,000 Php 200,000 x 12 Php 2,400,000.00

Medicines months yearly
/Insecticides/ Php 25,000
herbicides Php 25,000
Agricultural
Fertilizers

Prepaid Rent 1000 monthly x 12 12 months Php 12,000

(Public Market months
Ground Rental) Php 12,000

Salaries & Wages Php 24,000 12 months Php 216,000

Operating Php 25,000 12 months Php 108,000

Expenses

Total Initial Cost Php 411,000.00

Chapter VI FINANCIAL ASPECT

Investment Cost

Direct Materials: Cost per unit Subtotal Total

Inventories

Formulated Feeds 100 bags @ 600 Php 60,000

120 bags @ 500 Php 60,000 Php 150,000
40 sacks @1500 Php 30,000

Medicines 25 packs / bottle @ Php 25,000 Php 25,000

/Insecticides/ 1000
herbicides

Agricultural 25 sacks @ 1000 Php 25,000 Php 25,000

Fertilizers

Total Inventories Php 200,000

Salaries & Wages Monthly Yearly Annual Total

Manager / Owner 24 days x 350 = Php Php 100,800
8,400

Sales Attendant (2) 24 days x 200 x 2= Php 187, 200 Php 288,000
+ Php 9,600 + 250 x
Driver (1) = 3 in 24 days = Php
Total 6,000 = Php 15,600

Operating Monthly Yearly Annual Total

Expenses:

Electricity Php 1,000 @ 12 Php 12,000

months

Water Php 500 @ 12 Php 6,000

months

Gasoline Php 15,000 @ 12 Php 180,000

months

Rent Expense Php 1,000 @ 12 Php 12,000

months

Taxes & Licenses Php 416.67 @ 12 Php 5,000

months

Salaries and Wages: 24 days x 350 = Php Php 100,800

Manager + Sales 8,400 Php 187, 200
attendant + Driver 24 days x 200 x 2=
Php 9,600 + 250 x
24 = Php 6,000=
Php 24,000

Repair and Php 2,500 @ 12 Php 30,000

Maintenance months

Depreciation Php 1,250 @ 12 Php 15,000

Expense months

Total Monthly Php 45, 666.67 Php 548,000.00 Php 548,000.00

Operating
Expenses

Monthly Sales

Inventories Sales - Cost of Sales Gross Margin

Agrivet + Agricultural Php 200,000 70 % of Sales Php 60,000.00

Supplies (200,000) = 200,000-
140,000 = Php 60,000.00

Direct Labor / Salaries & Php 24,000

Wages

Operating Expenses Php 21,666.67 (Php 45, 666.67)

/Overhead

Gross Profit Php 14,333.33

Interest Expense (Php 1,000.00)

Net Profit before tax Php 13,333.33

Return of Investment Yearly net profit before tax / 0.3893or 38.93%

Total Initial Investment

Payback period Total initial investments / 28.18 months

Monthly net profit before tax 2.34 years
+ Monthly Depreciation
expense