Republic of the Philippines

Department of Education
Region X

Division of Bukidnon
BUKIDNON NATIONAL SCHOOL OF HOME INDUSTRIES
North Poblacion, Maramag, Bukidnon

“CHEAPY CHIPS”

A BUSINESS PLAN

PRESENTED TO THE FACILITY OF BUKIDNON NATIONAL

SCHOOL OF HOME INDUTRIES

FINAL REQUIREMENT FOR ENTREPRENUERSHIP

BY
ZANDARA KATE M. CADELIÑA
SHERYL R. CANGAS
JANAH KATE P. CATLI
PHENIE ROSE L. DOGYU-AN
JOHANNA P. FANTONIAL
APRIL MAE G. HEMAR
KRISTINE KAYE A. LIWANAN
APRIL ROSE CLEIR L. MACALOS
SOFIA BETINA TARE
BEA A. TASIC

TO
MR. REY S. JACOB

MAY 2022
 TABLE OF CONTENTS

Page
TITLE PAGE i
TABLE OF CONTENTS ii
EXECUTIVE SUMMARY
Type of Business 3
Management, Marketing & Financial Highlights 4
Socio-Economic Contributions 4
MARKETING PLAN
Product/Service to Sell 6
Target Market 6
Market Segmentation 7
Demand and Supply Analysis 8
Projected Sales 8
Marketing Program/Strategies 9
PRODUCTION PLAN AND OPERATIONS SYSTEMS
Technical Production Description 12
Production/Operations Process 13
Production Schedule 14
Plant/ Factory Location 14
Plant Layout 14
Waste Disposal System 15
Quality Control 15
Suggested Selling Price 15
ORGANIZATIONAL PLAN
Legal Form of Business 16
Organizational Structure 16
Brief Job Descriptions 17
Administrative and Overhead cost 18
Gantt chart Activities 18
FINANCIAL PLAN
Total Project Cost 19
Sources of Financing 19
Projected Financial Statement 24
List of Assumptions Used 27
APPENDICES
Logo with descriptions 28
Market Survey Questionnaire 28
Market Survey Result 29
Sample Marketing Material 30
Other Document 30

ii
I. EXECUTIVE SUMMARY
Cheapy Chips is a small business run by 10 amazing Grade 12 students of
ABM at Bukidnon National School of Home Industries, these individuals are,

➔ Ms. Zandara Kate Cadeliña ➔ Ms. April Mae Hemar

➔ Ms. Sheryl Cangas ➔ Ms. Kristine Kaye Liwanan
➔ Mr. Janah Kate Catli ➔ Ms. April Rose Cleir Macalos
➔ Ms. Phennie Rose Dogyu-an ➔ Ms. Sofia Betina Tare
➔ Ms. Johanna Fantonial ➔ Ms. Bea Tasic

In the time of pandemic everything that we use got change and all round us fall
apart and must be done in new ways to protect ourselves and our loved ones. One of
the old ways that really change when the pandemic hits us is the way of schooling.
From physical learning to modular and online classes. These days of 2022, limited face
to face is being implemented. And by that we the grade 12 senior high school students
are obligate to create our own small business to fulfill our requirement on
Entrepreneurship. And the individuals mentioned above were given a chance to create
a small business. They started to their small business by gathering and made a focus
group discussion to come up with a great business product idea. They start from
scratches until they decide what product should produce. They come up the product by
doing deep research about the product that are born in the time of pandemic. By that it
gives them a bright idea about creating the Cheapy Chips. Which is a type of vegetable
chips, this type of chips is very unique and innovative. It is also a good type of product
since it doesn’t only stratify your cravings, it also gives you health benefits. We vision
our product to hit our target market.

This company aims to satisfy the snack cravings of the people, and give them a
healthy, delicious, and affordable snack. Since this product is very innovative it has a
potential to have a good public image if the company will work hard for it. The
packaging must be nice to catch the attention of our target customers, it is a good help
to our product if the packaging is very presentable. 2

Cheapy chips is an affordable vegetable snack, its given that it is very healthy
and suitable to everybody since the main ingredient of this snack is Chinese Cabbage.
Many people might get curios about the product, which is a good thing. Because of
their curiosity they will buy the product to answer their curiosity. And by that the main
goal of the production team is to create a perfect and nice quality of cheapy chips to hit
the expectation of the customers. The Cheapy Chips is a chip that can satisfy your
snack cravings with a healthy effect on your body. Also, this type of product is not yet
existing on the market, based on the gathered data that we have. The only direct
competitor that we have is the kangkong chip. Cheapy Chips is crunchy outside and
soft inside that you can still taste the Chinese cabbage. This type of snack is for
everyone who likes to eat snack but want to be healthy. The final appearance of our
product is golden brown with a yummy smell.

Missions
Our mission is to serve a healthy, delicious, and affordable snack. We want to
satisfy the snack cravings of our dear customers. Our product will give a satisfaction
for the customers cravings and sooth the hunger of our dear customers. We aim to
serve our customers a crispy, delicious, healthy, and friendly price.

Vision
Our vision is to become a number 1 producer of cheapy chips and increase the
number of productions over in retail the years. A food manufacturing business known
for its good customer service and abiding efforts to give a best quality of our product.
Create more flavor to widen our target market or customers, as well as become a well-
known local brand. Engage outlets and broad product distribution.

Goals Objectives

1. To Provide a Healthy and Good 1. Ensure the quality of ingredients

Quality Product to be used in the product.
2. To create more Flavors and 2. Understand the product deeply to
Packaging develop new flavor and discover
3. To Establish an Outlets and new type of packaging.
Product Distribution 3. To widen the availability of the
4. To Promote Local Product product.
5. To Ensure Financial 4. Maintain locality by selecting and
Sustainability promoting local products in the
business.
5. Innovation around sustainable
 3

products.

6. To provide incentives to motivate

employees by the end of the
month

7. To ensure a good quality of

product in the whole duration of
the business.

A. Type of Business: FOOD MANUFACTURING

1. Nature

The Cheapy Chips food business offers an innovative product that will sooth
your snack cravings. The product has its culture originality or authenticity, unique
texture, tasty snacks every time of the day, good for the health, affordable and
extremely delicious, the product is called “Cheapy Chips”. The taste and texture is
unique which it makes the product more modern and better. The product will not only
satisfy the customers by it sense but also its context which promotes of the Filipino
snacks. The authenticity of one Filipino snack can be seen in the product itself. Culture
traditional and modernity in one product.

2. Name
Sineas Company

Our business is called “Sineas Company”, the entrepreneurs came with this
name because we combine the names of the entrepreneurs.

3. Product/Services

The Cheapy Chips is served in set or pack. The product came from vegetable
which is the Chinese Cabbage with a seasoned batter. It is named that way because our
product is a chip that is very cheap and affordable in all age. The taste, texture and
context will be primarily factors to be offered to the customers and these factors will
satisfy their taste and money. We have a competitor as of now but then we have our
advantages that we make sure that our product is unique, new to people, good taste.
good customer service, reliability, stability, and expertise.

B. Management, Marketing & Financial Highlights

Based in the management, the entrepreneurs were divided into three (3) teams,
the marketing team, production team, and the finance team. The marketing team are
the one who manage in their Facebook business page, promotion of the product, and
response to the customers. The production team manage the process of the product.
They are the one’s who purchase, cook, and packaging the product. Lastly, the finance
team are the one who manage and budgeting the money. They are also the bookkeepers
and keeps the money.

The marketing will start by creating a business Facebook Page and in the
business page, will be posting promotional video, and posting the about of the product
to catch the attention of our customers. The marketing ensures to stay in active within
8-hours a day to stay in touch of the possible customer to order our product. We must
ensure that our marketing team will provide good customer service to our customers.

The financial focuses on the cash in and cash out. The financial team always
record the money that the business uses in its need and the money that will added.
Finance is very important in running a business it is the pillars of the business. This
business venture will become successful if the money or the financial status will
improve in the long run.

C. Socio-Economic Contributions/Corporate Social responsibility | Sustainability

Development Goals

The food manufacturing catering industry makes a valuable contribution to the

economy, and also impacts upon society.

Ventures operation for profit contribute to local and national economies.

Businesses pay tax which allow the government to fund community services. They
also purchase food, tools and supplies from other businesses. Work for the community
is generated. The wages also contribute to tax, funding economic growth.
 5

Cheapy Chips is the chosen to be the business product to produce, setting it to

become successful in the future. Their unwavering dedication to provide the needs of
their valued customers and their passion for pure, fresh, healthy, delicious, and
affordable price to ensures that the business will be successful. Their profitability, the
engine for their continued growth, depends on innovation, performance, and versatility
in all fields. But Sineas Company’s mission is about more than delicious and healthy
cheapy chips. Their main goal is to satisfy the snack craving of their target costumers
with a healthy benefit snack ang with a friendly price.

The purpose of this study is to encourage those people who are still thinking
about the possibilities of building a small business despite of the pandemic. Starting a
home-based snack business, might sound fun and easy to do after all, you’re already
making a healthy and affordable snack for everyone. It helps the community to create
more opportunities for everyone to have a possible job. As the business venture
become more successful, it needed to pay tax based on the business income or based
on the entrepreneur income. By that, it contributes to the economy growth of our
country.

II. MARKETING PLAN

A. Product/Service to sell

Product/Service to sell 1. Product/Service Description (Features,

Advantage, and Benefits)

Product: Cheapy Chips

Cheapy Chips is a vegetable snack made to satisfy your snack cravings.

The main ingredient of this snack is Chinese Cabbage, along with seasoned
batter. The batter contains flour, corn starch, breading mix, and cold water.
According to Monarch Manor (2022), Chinese Cabbage helps build strong
bones, fights fatigue and anemia, helps regulate blood pressure, cardiovascular
health, weight loss, strength the immune system, highly beneficial to eye
health, digestive system, helps combat skin infections, and disorders. The
entrepreneurs offer free delivery service with a minimum of five orders. And
for below five orders we only accommodate their orders through meet up.

B. Target Market

1. Area Coverage

The target place of the Sineas Company to sell Cheapy Chips will be in
North Poblacion Maramag, Bukidnon. The total land area of North Poblacion is
447.26 km2(172.169 sq mi).

2. Consumer/Costumer

The Cheapy Chips’ target market focuses the junior individuals who
live in North Poblacion at Maramag Bukidnon. It also caters senior individuals
in all genders.

C. Market Segmentation
 Market Segmentation

Geographic Demographic Psychographic

 Lifestyle-
 Region- X Social
 Country -  Personality-
Philippines  Age – 10 above Compassionate
 Population –  Gender- Male & and Responsible
almost Female  Values-
36Million  Ethnicity- cooperate social
 Climate – Hot Cultural responsibility
Cold and value Tradition  Interest-
  Nationality- cooking
 Filipino
  Occupation-
students, parents,
teachers, etc.
 Income- 50-100
a day

D. Demand and Supply Analysis

1. Competitors Profile
Direct- Kangkong chips original by Josh Mojica.

Indirect- Bog’s Banana Chips

2. Present and potential suppliers

Present Supplier: Boy Lamas Store/ RNN Store
Potential Suppliers: Maramag Public Dry Market

The most effective suppliers are those who offer products or services
that match-exceed-the needs of your business, so when you are looking for suppliers,
it’s best to be sure of your business needs and what you want to achieve by buying,
rather than simply paying for what suppliers want to sell you.

Projected sales (5 year)

1. Per-Year

YEAR 1 – 156,500

YEAR 2 - 232,500

YEAR 3 – 313, 000

YEAR 4 – 391,250

YEAR 5 – 469,500

2. IN VOLUME AND IN PESOS

VOLUME

YEAR 1 – 6,260

YEAR 2 – 9,420

YEAR 3 – 12,520

YEAR 4 – 15,650

YEAR 5 – 18,780
9

D. Marketing Programs/Strategies
 PRODUCT STRATEGY
The process in creating our product is very delicate and safe. The
production team always practice the proper food handling and performing the
minimum standard health protocol to ensure the safety of our dear customers.
The utilities that we use are 100% clean. While the ingredient of the product is
carefully examined by the purchaser before they buy the ingredients, the main
ingredient (Chinese cabbage) must be fresh as possible with a light green color
to give a crispy and delicious snack to our customers. By ordering online, the
product will be delivered or received by the customer on the time they desire,
as the order is received by the customer, the payment will be automatically
collected and recorded. Our product can be reached out online through our
Facebook, as our major social media platform, where large number of people
are active and easily attract by our product.

 PLACE STRATEGY
Our business, Cheapy Chips offer free delivery in every five (5) and
above orders; every below five (5) orders we only cater meet up at Perimeter
Fountain Maramag Bukidnon. This stated location is an advantage to our
business since it is best for its people population and the nearest area where
some of group can easily gather.

 PRICING STRATEGY
The pricing strategy that we are planning to apply to our product is
based on the calculated over all total expense of our production and we will just
add a markup. Our price will remain the same over and over the time even if
the supplier’s price will increase. We plan to reduce the number of chips we put
inside the packaging, or we might change the packaging itself. The main goal
in our pricing strategy is to be affordable for our customers to patronize our
product.

 PROMOTION STRATEGY
Cheapy Chips will be introduced by using the modern way of
advertising to promote public identification and brand recognition. Using the
most efficient social media platform of all times Facebook. Through Facebook
page the product will be advertise and communicating the clients will also be
held in the Facebook page. On other hand, using online platform will help the
 business gain better communicate to the customers and can engage the business
in large scale promotion.

 PEOPLE STRATEGIC
We ensure to maintain good customers service and good
communication skills in responding to our customers. Our Facebook page
SINEAS COMPANY will be active 8hrs in weekdays. We ensure to
accommodate the customers’ orders and concern. The strategic of our people
reflects the need to bolster our capabilities to match our positioning applied in
the followers in social media platforms.

 Manager
 Cook
 Utility
 Finance holder

Our team is consisting of ten multi-skilled members who works with

their skills, knowledge and in their best to help our business become successful
in long run. Knowing ourselves in where we mostly excel gives us better
motivation and inspiration to do our respective responsibilities in all due
respect to our duties. We do our best to maintain the nice atmosphere in our
workplace to avoid misunderstanding.

In people strategy, our focuses are to build a strong bond or relationship

with our workers or business personnel to have a nice atmosphere and to easy
achieve our goals in our business. By that we made a nice idea by dividing the
team by distributing the members based on their strength and weaknesses. In
that way our business will run smoothly. In the selection process, the
background of each must check in line of a business and be able to apply open-
mindedness, optimism, creativeness, and critical thinking.

Overall, the goal of our employees is to give the customers need and to
satisfy their snack cravings. With a proper food handling and practicing the
minimum health protocol to ensure the employees and customers safety. The
 personnel are all empowered to take any reasonable action to avoid a customer
becoming dissatisfied that makes them no longer take an order or buy our
product.

III. Production Plan and Operations Systems

Production Plan and operating system (manufacturing type)

Technical production description (input-process-output)

Product description: cheapy chips is a unique product that has a bit sweet flavor
with a cheesy and healthy value that will reduce stress to the customer.

Raw Materials

Indirect Equipment

Particular’s Quantity Unit Unit cost Cost/ day Cost/ Cost/

(P) (P) week month
(P) (P)
Chinese 1 Kg. 50.00 50.00 250.00 1,000.00
Cabbage
All 1/2 Kg. 28.00 3.60 18.00 360.00
Purpose
Flour
Cornstarch 1/2 Kg. 23.00 1.39 6.95 139.00
Breading 1 Pack 15.00 1.13 5.65 113.00
mix
Oil 1/2 Kg. 55.00 55.00 165.00 1,980.00
cheese 2 Mini 12.00 12.00 60.00 1,200.00
Pack
Total 4,792.00
This table shows the monthly cost of the project of raw materials which is 4,792.00.

Tools and Equipment

Direct Equipment

Particular’s Quantity Unit Unit cost Total

Portable 2 Pcs. 800.00 800.00
Butane Gas
Stove
Total 800.00

Materials
Particular’s Quantity Unit Cost Total
Knife 2 Pcs. 60.00 60.00
Chopping 1 Pc. 50.00 50.00
Board
Bowl 1 Pc. 45.00 45.00
 Wire Whisk 1 Pc. 55.00 55.00
Measuring 1 Set 129.00 129.00
Cups
Measuring 1 Set 50.00 50.00
Spoon
Plastic 1 Pack 8.00 8.00
Wrapper
Aluminum 25 Pcs. 125.00 125.00
Package
Sticker Paper 1 Pc. 8.00 8.00
Cooking Pan 2 Pcs. 500.00 500.00
Food tong 2 Pcs. 60.00 60.00
Total 1,090.00

Production/ Operation Process

Process

Purchasing of Raw Materials

Peel and wash the Chinese Cabbage and then

cut it into fourth quarters.

Mixed the 2 cups of All-Purpose Flour, 1 cup

Cornstarch, and 4 tbsp. of Breading mix.

Put all the chopped Chinese Cabbage into the

batter.

Pre-Heat the pan and put the oil and let it boil.

Fry the battered Chinese Cabbage. After

cooking for 5 minutes put it into the plate with
kitchen towel to remove excess oil then pack it
into Aluminum Package.
 14

Production Schedule
Manufacturing Monday Tuesday Wednesday Thursday Friday
Steps
Production
Planning
(RED)
Evaluating
Capacity &
Output
(GREEN)
Investment &
Capital
(YELLOW)
Raw Material
Procurement
(ORANGE)
Job Process
(PINK)
Packaging
(VIOLET)
Sale
(BROWN)

Plant/ Factory Location

SINEAS Company’s sells to store that are permits the business of promoting
and merchandising the product or goods in their store. Cheapy Chips is manufactured
at Purok 1A North Poblacion, Maramag, Bukidnon. The plant capacity is about 18x20
sq. meters that was enough to accommodate and well equipped of every needed for the
production.

Plant Layout

Cooking Area
Storage v
Washing Area
Room Table

Table
Comfort
Room
Manager’s

Manager’s CR
 15

Waste Disposal System

Reduce, reuse, and recycle are the three R’s for proper garbage disposal.
Separate biodegradable and non-biodegradable materials. The protection of the
environment and the population’s health are the most significant reasons for waste
collection. Rubbish and waste can pollute the air and water. Garbage that is left to rot
emits hazardous fumes that mix with the air and create respiratory difficulties in
individual.

Quality Control System

They use only the best quality ingredients and the cleanest equipment to ensure
adequate cleanliness during production. To avoid failures, they use suitable processing
procedures. Adopts adequate distribution channels to ensure the product’s excellent
quality.
IV. ORGANIZATIONAL PLAN
A. Legal Form of Business
The Sineas is run under partnership. A business company owned by two
or more persons, who pledge to share their money, property, or industry to contribute
into a common fund with the intention of dividing the profit among themselves.
Currently, the business is owned by ten amazing grade 12 Accountancy, Business and
Management students from Bukidnon National School of Home Industries.

B. Organizational Structure
In order to get our foundation right, we plan to have qualified and
seasoned workers who understand this organization deeply and also have the expertise
to help us achieve our objectives and goals.

Sofia Betina Tare

General Manager

Laborers
Zandara Kate Cadeliña
Sheryl Cangas
Janah Kate Catli
Phenie Rose Dogyu-an
Johanna Fantonial
April Mae Hemar
Kristine Kaye Liwanan
April Rose Cleir Macalos
Bea Tasic

Human Resource Complement with Proposed Monthly Salary

Position Monthly Salary Mark up Total Amount
(30%) (A) + (B)
 17
General Manager 3,000 900 3,900
Laborer 1,500 450 1,950
Total 5,850

Brief Job Description and Specification per position

Position Task and Responsibilities

General Manager 1. Responsible to operate the business. A general

manager can be a multi-tasker, she can manage in
marketing, production but mostly she in a job
specification in financial management where keeps
records and budgeting money in the business.
Laborer 1. Managed product quality and make sure issues
resolved quickly.
2. Cleaning and preparing all cooking ingredients.
3. Manage and determine operating costs that are in
line with the company’s budget.

Office Furniture and Fixtures needed with corresponding cost

Furniture and Unit Costs Quality Total
Fixtures
Table 600 3pcs 1,800

Chairs 50 12pcs 600

Total 2,400

Administrative and overhead cost

Particulars Cost (P)
Selling Cost 25
Promotion 50
Total selling cost 75
Administrative cost
Manager salary 5,200
Fringe benefit 520
Total administrative cost 5,720
Total 5,870
 This table shows the normally selling and administrative cost of the project
which results to 5,870 per month.

E. Gantt Chart Activities

GANTT CHART

D D D D D D D D D D
A A A A A A A A A A
Y Y Y Y Y Y Y Y Y Y
1 2 3 4 5 6 7 8 9 10
Production Planning
Evaluating capacity
and output
Investment and
capital
Raw material
procurement
Job process
Packaging
Sale

PRODUCTION TEAM

FINANCE TEAM

MARKETING TEAM
V. Financial Plan

1. Mode of financing
Table 1: Total Project Cost (operational expenses for the next 6 months)

Particulars Cost/month (P) % Share

Equity 23,856 100%
Loan 0 0%
Total 28,752 100%
This table shows the total of the project cost in 6 month which the 100% of
equity and 0% coming from loans.

2. Source of Financing

Table 4: Direct Labor Cost

Particulars Number Working Rate/ Day Rate /

Days (P) Month (P)
Laborer 9 20 440.00 8,800.00
Fringe 880.00
benefits(10%)
Total 9,680.00
This table shows the direct labor cost which includes the laborer’s monthly
salary and his fringe benefits which is 10% of his monthly salary. The overall direct
labor cost is 9,680.00.

Table 5: Production Cost

Particulars Cost/Month (P) Cost/ Year (P)

Direct Materials 1,090.00 13,080.00
Direct Labor 9,680.00 116,160.00
Indirect Materials 4,792.00 57,504.00
Total 15,562.00 186,744.00
This table shows the monthly and yearly production cost comprising of direct
cost, indirect cost, direct labor cost. Which is 186,744 in a year and 15,562 in a month.

Table 6: Indirect Labor and Budgetary Salary

 20
Particulars Number Rate / Month (P)
Manager 1 5,200.00
Fringe benefits (10%) 1 520.00
Total 5,720.00

This table shows the monthly indirect labor and budgetary salary of the
manager that result to 5,720.00.

Table 7: Operating Expense

Particulars Cost (P)

Electric bill 50
Water bill 50
Rent expense 500
Salaries expense 200
Miscellaneous Expense 1,090
License and permit 200
Transportation 150
Total 3,840
This table shows the monthly operating expenses of the project that result to
3,840.

Table 8: Selling and Administrative Cost

Particulars Cost (P)

Selling cost 25
Promotion 50
Total selling cost 75
Administrative cost
Manager salary 5,200
Fringe benefit 520
Total administrative cost 5,720
Total 5,870
This table shows the monthly selling and administrative cost of the project
which results to 5,870 per month.

Table 9: Working Capital

 21

Particulars Cost (P)

Direct materials 1,090
Indirect materials 4,792
Direct labor 9,680
Operating expense 3,840
Selling and administrative cost 5,870
Total 25,272
This table shows the working capital required monthly to operate the projected
it is sum into 25,272.

Table 10: Projected Cost

Particulars Cost (P)

Fixed assets
Tools and equipment 800
Furniture and fixture 2,400
Subtotal 3,200
Working capital 25,272
Total 31,672
This table shows the monthly project cost which is the basis for analyzing how
much capital is needed in the business. In this project the project cost is 31,672.00.

Table 11: Loan Amortization (20%)

Interest Annual Principal Yearend

Year (P) Payment Payment Balance
(P) (P) (P)
5,000
1 1,500 1,000 1,000 4,000
2 1,200 1,000 1,000 3,000
3 900 1,000 1,000 2,000
4 600 1,000 1,000 1,000
5 300 1,000 1,000 0
This table shows the amortization of the loans being incurred in this project the
loans incurred is 5,000 payables with 30% interest annually for 5 years. 22

Table 12: Depreciation

 Life span Original cost (P) Salvage (P) Depreciation cost
(P)
5 5,882 1,176.4 941.12
The above table shows the depreciation of the fix assets within 5 years.

Table 13: Projected Operating Expense

Particulars (5%) 2023 2024 2025 2026 2027

(P) (P) (P) (P) (P)
Electric bill 600 1,200 1,800 2,400 3,000
Water bill 600 1,200 1,800 2.400 3,000
Rent expense 6,000 12,000 18,000 24,000 30,000
Salaries expense 2,400 4,800 7,200 9,600 12,000
Miscellaneous 3,000 6,000 9,000 12,000 15,000
Expense
License and permit 200 400 600 800 1,000
Transportation 120 240 360 480 600
Total 12,920 25,840 38,760 51,680 64,600
This table shows the project operating expense for five years from 2023-2027.

Table 14: Sales Forecast

Particular 2023 2024 2025 2026 2027

(P) (P) (P) (P) (P)
Volume of 6,260 9,420 12,520 15,650 18,780
Production
(10%)
Price (P) 25 25 25 25 25
Total 156,500 232,500 313,000 391,250 469,500
This table shows the sale forecast of the project for five years.

Table 15: Other expense

Particulars 2023 2024 2025 2026 2027

(P) (P) (P) (P) (P)
Interest 1,500 1,200 900 600 300
expense
 23

Depreciation 188.22 188.22 188.224 188.22 188.22

Total 1,688.22 1,388.22 1,088.22 788.22 488.22
The above table shows the other expenses involve in having the projected done.

Table 16: Projected Selling and Administrative cost

Selling Month 2023 2024 2025 2026 2027

(P) (P) (P) (P) (P) (P)
Promotional 50 600 1,200 1,800 2,400 3,000
cost
Total selling 25 25 25 25 25 25
cost
Administrative
cost
Manager 5,200 62,400 124,800 187,200 249,600 312,000
salary
Fringe Benefit 520 6,240 12,480 18,720 24,960 31,200
(10%)
Total 5,720 68,640 137,280 205,920 274,560 343,200
administrative
cost
Total 11,515 131,665 275,785 413,665 551,545 689,425
The above table shows the projected selling and administrative cost within five
years from 2023-2027.

Table 17: Projected Production Cost

Particulars 2023 2024 2025 2026 2027

(P) (P) (P) (P) (P)
Direct 13,080 26,160 39,240 52,320 65,400
materials
Direct labor 116,160 232,320 348,480 464,640 580,800
Indirect 57,504 115,008 172,512 230,016 287,520
materials
Total 186,744 373,488 560,232 746,976 933,720
 The above shows the projected production cost of the projected within five
years from the year 2023-2027.

C. Projected Financial Statement ( 5-year)

Cheapy Chips
Projected profit and loss statement
(2021-2025)
Particular 2023 2024 2025 2026 2027
Sales 156,500 232,500 313,000 391,250 469,500
Less: sales 7,825 11,625 15,650 19,562.5 23,475
return and
allowance 5%
Net Sales 148,675 220,875 297,350 371,687.5 446,025
Cash sales 118,940 176,700 237,880 297,350 356,820
(80%)
Add; account 29,735 44,175 59,470 74,337.5 89,205
receivables
(30%)
Total sales 148,675 220,875 297,350 371,687.5 446,025
Cost and
expenses 23,856 47,712 71,568 95,424 119,280
Beginning
inventory
Add: 186,744 373,488 560,232 746,976 933,720
production
cost

Less: ending 23,857 47,712 71,568 95,424 119,280

And
inventory
(30%)
Total cost of 186,744 373,488 560,232 746,976 933,720
goods sold
Gross Profit 3,773,470 5,812,500 7,264,768 9,034,274 11,668,139.5
2
Less: 46,080 92,160 138,240 184,320 230,400
operating
expense
Depreciation 188.22 188.22 188.22 188.22 188.22
exp.
Interest 1,500 1,200 900 600 300
expense
 25

Bad debts 594.7 883.5 1,189.4 1,486.75 1,784.1

(2%)
Total cost 48,362.92 94,431.72 140,517.6 186,594.97 232,672.32
2
Net Profit 2,610,310 4,074,300 4,951,528 6,145,994 8,204,819.52
from
operation
Less: selling
and 70,440 140,880 211,320 281,760 352,200
administrativ
e expense
(5%)
Net Income 2,610,310 4,074,300 4,951,528 6,145,994 8,204.819.52
before tax
Less: income 39,568.68 23,133.15 37,220.14 49,254.6 69,463.53444
tax
Net income 180,257.3 131,087.8 181,722 240,478.33 296,134.0153
after tax 2 5 4

Cheapy Chips
Projected Cash Fund Outflow
(2022-2027)
Particular 2023 2024 2025 2026 2027
Cash Inflow 28,752
Owner’s 0
Equity Loan
Net A/R 29,735 44,175 59,470 74,337.5 89,205
Cash sale 118,940 176,700 237,880 297,350 356,820
Total Inflow 177,427 220,875 297,350 371,687.5 446,025
Cash Outflow
Production
Cost 186,744 373,488 560,232 746,976 933,720
Operating 1,688.22 1,388.22 1,088.22 788.22 488.22
Expenses
Selling and 70,440 140,880 211,320 281,769 352,200
Administrativ
e exp.
Net cost from 48,362.92 94,431.72 140,517.62 186,594.97 232,672.32
Operations
Principal 1,000 1,000 1,000 1,000 1,000
Payment
Interest 1,500 1,200 900 600 300
Expense
Fixed Asset 31,672
Income Tax 39,568.68 23,133.15 37,220.14 49,254.6 69,463.53444
Total Cash 122,103.6 119,764.87 179,637.76 237,449.57 303,435.85444
outflow
Net Cashflow 55,323.4 101,110.13 117,712.24 134,237.93 142,589.14556
Add cash 0 55,323.4 45,786.73 71,925.51 62,312.42
beginning
Net cash
balance 55,323 45,786.73 71,925.51 62,312.42 80,276.72556

Cheapy Chips
Projected Balance Sheet
(2022-2027)
Particular 2021 2022 2023 2024 2025
Current
Assets
Cash on Hand
55,323 45,786.73 71,925.51 62,312.42 80,276.72556
Inventory
23,856 47,712 71,568 95,424 119,280

Account 29,735 44,175 59,470 74,337.5 89,205

Receivable
(30%)
Less: Bad 594.7 883.5 1,189.4 1,486.75 1,784.1
depts. (2%)
Net Account 29,735 44,175 59,470 74,337.5 89,205
Receivable
Total Current 60,064.7 89,233.5 120,129.4 150,161.75 180,194.1
Assets
Fixed Asset 31,672 31,672 31,672 31,672 31,672
Less: 188.22 376.44 556.66 752.88 941.1
Accumulated
Depreciation
Net Book 31,483.78 31,295.56 31,115.34 30,919.12 30,730.9
Value
TOTAL 91,548.48 120,529.06 151,244.74 181,080.87 210,925
ASSETS
Liabilities
Loan 4,000 3,000 2,000 1,000 0
TOTAL 4.000 3,000 2,000 1,000 0
LIABILITIE
S
 Capital 28,752 57,504 86,256 115,008 143,760
Beginning
Net Profit 180,257.32 131,087.85 181,722 240,478.334 296,134.0153
After Tax
Capital 180,257.32 188,591.85 267,978 355,486.344 439,894.0153
Ending
Total 213,027.32 249,095.85 356,234 471.494.344 583,654.0153
Liabilities
and Capital

Major Assumptions

1. Source of funds
a. Owner’s equity was assumed 80% of initial investment
b. Bank loan was assumed 20% of initial investment
2. Volume of production was estimated to increase at five percent (10%) per year.
3. Price of the product was assumed to maintain over the year.
4. Direct labor was expected to increase at five (5%) per year.
5. Fringe benefit was estimated to increase at five percent (10%) per year.
6. Manager’s compensation shall increase at five percent (5%) per year.
7. Interest loan was assumed to be zero (0%) since the company doesn’t have any
loans.
8. Operating expenses was assumed to have five percent (5%) increase per year.
9. Sales return and allowances was estimated at five percent (5%) at the gross
sales.
10. Direct material shall increase at five percent (10%) per year
11. Allowance for bad debts was estimated two percent (2%) per year.
12. Accounts receivable was estimated twenty percent (20%) of the total sales.
13. Ending inventory was set at twenty percent (20%) of the total sales.
14. A cash sale was computed through total sales deducted by accounts receivable.

VI. APPENDIX A

Logo with descriptions

“SINEAS COMPANY”, the entrepreneurs came with this business name by mixing all
the names of its owner. SINEAS company put a Chinese cabbage on its logo since the
main ingredients of their product is Chinese cabbage. They also included their tag line
on their business logo to catch the attention of their target customers.

29

Market Survey Questionnaire

NAME:
AGE:

1. Are you familiar with this product?

Yes
No
Maybe
 30

Market Survey Result

Survey Results
120%

100%

80%

60%
Survey Answers
40% Survey Result
20%

0%
g r s s
: No te
-8 in de Ye Ye
Q1 ra kag w 5 : 6 :
: c Po Q Q
Q2 : Pa es
e
Q3 h e
:C
Q4

Figure 1: Survey Result

The figure above are the survey results coming from our possible customer. We
survey for about 20 people; the purpose of this survey is to gather data of what they’ll
think about our product Cheapy Chips. Out of 20 people, 100% of them are not
familiar of our product; 80% of them rate 8 out of 10 the quality of our product, 90%
of them are chose packaging be the best of our product. 95% of them prefer the chips
will be partner in cheese powder,90% people approved the product as affordable, and
100% of them are willing to buy and recommend our product to their friends and
families.
 31

Sample Marketing Material

Other Documents
32