longganisa feasibility study

Brgy. Paldit Pangasinan

CHAPTER I PROJECT BACKGROUND AND HISTORY Project Proponents The proponents of the business are Melody Ocampo Silvertino and ______. They thought of a product that is well known in the market which is Longganisa. The business is named Mel’s Special Longganica because Longganisa is a main dish for Filipinos, and thus, Longganisa is similar to a chorizo and also closely associated with the Portuguese linguiça. Its defining characteristics are interpreted differently from region to region. Longganisa refers to sausages flavoured with indigenous spices, with each region having its own specialty. Among others, Lucban is known for its garlic-laden longanizas. Guagua for its salty, almost sour, variety. Longganisang hamonado (from the Spanish: longaniza jamonada), by contrast, is known for its distinctively sweet taste. Unlike Spanish chorizo, Filipino longganisa can also be made of chicken, beef, or even tuna. Commercial varieties are made into links, but homemade sausages may be simple patties Propose name of the Business The proposed name of the business is Mel’s Special Longganisa which comes from the proponents name. Mel’s Special Longganisa had been chosen in order to procure the best business with our specialization in servicing the people and giving them the best food product available in the country.

Type of Business Organization Partnerships The proposed business will be organized as a general partnership. This partnership will be formed according to the articles of the Civil Code of the Philippines that defines partnership as an organization where two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves. The partnership will operate based on its partnership agreement in its Article of Partnership specifies the functions and responsibilities of each members. This type of business ownership is considered because of the following advantages: •

it could easily be formed

•

there are more persons to conduct the business and to handle its problems

•

and the combined ability and resources of partners are source of strength.

The proposed business will adopt the line type of internal organization. Under this type of organization, there is a direct flow of authority from one top position to immediately subordinate levels. This authority flows to subordinate positions directly below and as it goes down it is subdivided. The line type of organization has clear and distinct channels of authority and responsibility

Location of the Business The business is located in Barangay Paldit Pangasinan where one of the proprietor was residing. The business would be located in Barangay Paldit Pangasinan where many people are passerby and Brief History of the Business The Vigan longaganisa is a small and plump native sausage, good for about two or three bites. It is garlicky and has a yellowish color. Although it is eaten anytime, even as a bread filling, it is traditional favored as breakfast fare together with fried eggs and steamed or fried rice. It is best dipped in Ilocos vinegar with plenty of chili, garlic and onions. Filipinos cook them in a pan with water. The longganisa cooks in its own fat after the water evaporates and is then cooked further until it slightly caramelizes. A tip to avoid crumbling is to place it in the freezer for a while before frying it. Vigan longganisa is said to be an influence of the Mexican salami. The tradition of making this native has existed since the period of the Spanish galleon trade. It is distinct from other Philippine sausages because of its use of the local sugar cane vinegar and Vigan-grown garlic, which are major products of the city as well. The Biguenos are so fiercely proud of their longganisa that they have made it as the product they would like to be most known for. They had it recognized as the city’s One Town, One Project (OTOP) selection under this national government program.

They’ve endeavored throughout the years to be the top longganisa producer in the Philippines. Longganisa (sometimes spelled longanisa, longaniza, langgonisa, langgoniza) are Filipino chorizos or sausages. These cured sausages are known in many Philippine regions. The famous types of longganisa originate from the towns of Vigan , Lucban, and Guagua. Pork is the most preferred meat used in making this sausage. Other alternatives are chicken, beef, and tuna.

CHAPTER II TECHNICAL STUDY PRODUCTION DESCRIPTION Mel’s Special Longganisa is determined to become a daily necessity for local Longganisa in an Eggshell dessert addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet Longganisa in an Eggshell dessert and great service, Mel’s Special Longganisa will capitalize on its proximity to the Barangay Paldit Pangasinan to build a core group of repeat customers. Mel’s Special Longganisa will offer its customers the best prepared Longganisa in an egg shell in the area that will be complimented with other pastries, as well as free books that its patrons can read to enjoy their visit. PRODUCTION SCHEDULE In starting the operation of the business, the owners should complete the necessary documents and requirements needed for the legalization; this stage of business is organized in a formal manner, which requires registration in various regulating government agencies. Before a partnership can operate legally, it must first to comply with certain level registration that are summarized as follows: Place of Registration 1. Security and Exchange Commission (SEC)

2. Department of Trade and Industry (DTI) 3. City of Municipal Hall Permit (Mayor’s Permit) 4. Bureau of Internal Revenue 5. Social Security System 6. Other Agencies as may be required In building business there are certain requirements to make specific business legal. If the following cannot be obtained the operation will not function well. BIR 1902 Business Permit

DTI application For employees: SSS,PhilHealth,Pag- ibig

Barangay Clearance

Declaration of real property tax

Fire Inspection CertificateSEC Sanitary plumbing Permit Building Permit Manufacturing process The production is very simple. Its main concern is to ensure the quality and taste of its product. Figure 1.4 Shows Manufacturing Process of Longganisa in an Egg Shell Combine all ingredients,

Crack egg shell in two not even and pour leche plan in the biggest part.

Top with the egg shell remaining

Freeze for 30 minutes and serve

Recipe of Longganisa in an egg shell •

6 large eggs

•

3 cups whole milk

•

1/2 vanilla bean, seeds scraped

•

1/2 cup sugar

•

1 envelope unflavored gelatin (about 2 1/4 teaspoons)

•

1/2 teaspoon salt

Directions

Using a paring knife, score eggshells two-thirds of the way up, and carefully crack. Separate egg whites and yolks. Transfer 5 egg yolks to a bowl; reserve egg whites and remaining yolk for another use. Bring a small pan of water to a boil. Add eggshells, and boil 3 minutes. Using a slotted spoon, remove shells, and drain. Scrape out membrane, and discard. Set eggshells aside in an egg carton. Put milk, vanilla bean and seeds, and sugar into a medium saucepan; sprinkle with gelatin. Let stand until softened, about 3 minutes. Cook over low heat, stirring until sugar and gelatin are dissolved, about 2 minutes. Whisk salt with egg yolks. Slowly whisk in hot milk mixture until combined, and then pour back into saucepan. Cook over low heat, stirring occasionally, until custard is thick enough to coat the back of a spoon, about 3 minutes. Remove vanilla bean. Pour custard through a sieve into a pitcher; discard solids. Pour 2 tablespoons custard into each eggshell, and divide remaining custard among six 6-ounce ramekins (alternatively, divide all custard among eight 6-ounce ramekins). Refrigerate until set, about 4 hours. BUILDING & FACILITIES EQUIPMENT

QTY.

UNIT COST

TOTAL COST

Computer w/printer

2

25,000

25,000

Telephone

2

1,500

3,000

Wall clock

2

200

400

Fax Machine

1

5,000

5,000

Television

4

5,000

20,000

CD player

1

5,000

5,000

CD rack

1

400

400

Medicine Cabinet

1

550

550

Component

1

19,550

19,550

Emergency light

4

1,450

5,800

Generator

1

12,675

12,675

1000

2,000

Office Chairs

2

Air Conditioner

4

17,000

68,000

Exhaust fan

2

1,800

3,600

Fire extinguisher

4

3,600

14,400

Oven chamber

1

100,100

100,00

Walking chiller

1

98,700

98,700

Griller

1

50,000

50,000

CAKE CABINET

2

60,000.00

WATER SOFTENER

1

8,000.00

Gas range (heavy Duty)

1

15,770

15,770

Water dispenser

1

1,000

1,000

Stainless knives

1set

200

200

Spoodle

4

20

80

Ladle

4

20

80

Measuring cups

1set

30

90

Mortar and pestle

2

40

80

Dessert plates

250

200

50,000

Glasses

250

50

12,500

plates

250

60

15,000

tray

75

200

15,000

Tissue holder

40

30

1,200

Pitcher

3

250

750

Longganisa in an Eggshell dessert Mugs

100

90

9,000

Kettle

2

300

600

Juice dispenser

7

500

3,500

cups

250

25

6,250

Knife sharpener

2

250.00

500.00

120,000.00 8,000.00

Wooden rice spoon

2

30.00

60.00

Set of measuring spoon

1

34.75

34.75

Measuring cup

1

40.00

40.00

Bottle opener

1

85.00

85.00

Food tongs

3

70.00

210.00

WASTE DISPOSAL In Barangay Paldit Pangasinan especially in the place where the shop is located, the proponents will pay the disposal team which comes everyday to pick up the garbage. Every other day of throwing the garbage will make the environment of the Mel’s Special Longganisa. It will provide customer satisfaction on seeing the environment of the Mel’s Special Longganisa business in neat. SWOT Strengths: 1. Demand: The demand for Product and quality products at competitive prices is

enormous in Barangay Paldit Pangasinan. 2. Customer base: The customer base which is the main element whilst determining

the target market in Barangay Paldit Pangasinan. 3. Location: The location factor as argued by Laurence Mathew (2005) is a critical

element for strategic positioning of an organization in the target market. The fact that the Barangay Paldit Pangasinan importance and a shop located there can attract customers from both the national and international market makes the location factor

as a key strength for setting-up a Mel’s Special Longganisa Longganisa in the Barangay Paldit Pangasinan.

Weaknesses: 1. Volatile customer base: The major weakness is the volatile nature of the

customer base in the Barangay Paldit Pangasinan. The fact that even though the customer potential in the Barangay Paldit Pangasinan is vast, but ever changing due to the nature of the business in the Barangay Paldit Pangasinan makes the customer potential as a critical weakness as much as it is argued as a strength. Since this is an apparent factor for any shop in Barangay Paldit Pangasinan, the weakness is oblivious in nature. 2. Seasonal business: Another important factor that needs to be considered is that

Barangay Paldit Pangasinan caters high level of customers during the periods of holiday making whilst supports only the business travellers at other times. This makes it clear that the business for the Mel’s Special Longganisa Longganisa is seasonal in nature. Opportunities: 1. Differentiation by Pricing: the demand for quality products at competitive

pricing is an increasing demand at the Barangay Paldit Pangasinan especially from the customers visiting from the far east of the world as argued by Laurence Mathew (2005). This demand can1 be harnessed by the Mel’s Special Longganisa Longganisa through providing value-added services and quality products at competitive prices.

The financial analysis in the next section will provide a deeper insight on the pricing of the products. 2. Diverse Target market: The diversity in the market which is merely due to the

diversity in the passengers to the Barangay Paldit Pangasinan provides an effective method of attracting a niche market or more than one segment of the market with customised products whilst providing a base line of product range to meet the overall demand of the customers. 3. Promotion through embracing culture: The fact that the Barangay Paldit

Pangasinan caters visitors from difference culture makes it clear that the Mel’s Special Longganisa Longganisa can attract customers through embracing its promotions reflecting upon specific culture. This even though might appear niche marketing, is actually a successful method of reaching the wider market where the visitors would appreciate the innovation in the promotion as argued by Laurence Mathew (2005). Threats: 1. Terrorism: The major threat is the element of disaster that can be caused by

terrorist attacks. The fact that Barangay Paldit Pangasinan is a pivotal location for terrorist attack is the major threat faced by any shop in Barangay Paldit Pangasinan. 2. New entrants and costs: The threat of new entrants in the market is a critical

element. This is also an increasingly concerning factor with the rapid deployment of the construction project for Barangay Paldit Pangasinan which not only increases the opportunities from development but also the threat of new entrants and stiff competition in the target market.

From the analysis above it is clear that even though there are potential threats and certain weaknesses in starting a Mel’s Special Longganisa Longganisa at the Pangasinan, the strengths and opportunities are out performing the weaknesses and threats thus justifying the investment for a new Mel’s Special Longganisa Longganisa in Pangasinan.

DEMAND AND SUPPLY DEMAND

Based on the data gathered, the past demand shows an increase from 68,850 in 2010 to 76,260.00 and has annual average increase of 2.58%. Year

Y

X

X2

EXY

2010

68,880.00

-2

4

-137,760.00

2011

69,700.00

-1

1

-69,700.00

2012

71,340.00

0

0

0

2013

73,800.00

1

1

73,800.00

2014

76,260.00

2

4

152,520.00

EY=

359,980.00

SOLUTION: Yc = a+ bx Where: A

= y/n = 359,980/5 = 71,996

B

= xy/x2

10

EXY= 18,860.00

= 18,860 / 10 = 1,886 Yc

= 71,996 + 1,886x

Project demand Year

X

EXY

2010

3

77,654

2011

4

79,540

2012

5

81,426

2013

6

83,312

2014

7

85,198

The proponents use statistical straight line method to project the demand for five years. The projection shows that the demand of Mel’s Special Longganisa in an Eggshell has annual increase of 2.35% and it increases from 77,654 in year 2005 to 85,198 in year 2009.

C. Supply

The table is presented to determine the supply of Mel’s Special Longganisa Product in Barangay Paldit Pangasinan. The supply shows that the past supply of Mel’s Special Longganisa increased from 52,137 in 2001 to 61,664 in 2005, with an average annual increase of 4.31%. Past supply of Mel’s Special Longganisa Year

Supply

Supply

2010

37,741

52,137

2011

39,654

55,516

2012

40,054

56,076

2013

42,111

58,955

2014

44,046

61,664

Projected supply of Mel’s Special Longganisa

Year

Y

X

X2

EXY

2010

52,137

-2

4

-104,274

2011

55,516

-2

4

-55,516

2012

56,076

-2

4

0

2013

58,955

-2

4

58,955

2014

61,664

-2

4

125,528

EY=284,348

10

Solution : Yc = a + bx Where: A

= y/n = 284,348 / 5 = 56.870

B

= xy / x2 =

Yc

22,493 / 10 = 2,249

= 56,870 + 2,249x

Year

X

Yc

2010

3

63,617

2011

4

65,866

2012

5

68,115

2013

6

70,364

2014

7

72,613

EXY=22,493

The proponents used statistical straight line method in projecting the supply for the next five years. The period supply for Mel’s Special Longganisa in Barangay Paldit Pangasinan. This shows an increase from 63,637 in 2005 to 72,613 in 2009 and having an average annual increase of 3.36%, Demand and supply analysis, demand/supply gap As a result f an average annual increase of 2.58% in past demand and an average of 4.31% increase in supply for sweets shop, still it is very insufficient to satisfy the demand of Mel’s Special Longganisa in Barangay Paldit Pangasinan. .

The demand and supply gap analysis shows that the supply cannot meet the

increasing demand of Mel’s Special Longganisa in Barangay Paldit Pangasinan, the percentage of unsatisfied was presented in the table below. Year

demand

supply

demand

unsatisfied

and supply gap 2010

68,880

52,137

16,734 24.31%

2011

69,700

55,516

14,184 20.35%

2012

71,340

56,076

15,264 21.40%

2013

73,800

58,955

14,845 20.12%

2014

76,260

61,664

14,596 19.14%

demand

Demand and supply analysis

The demand and supply gap analysis from the past gap analysis shows the unsatisfied consumer of Mel’s Special Longganisa in Barangay Paldit Pangasinan, since 2010 having 54.31% to 19.14%. but by entering into the business to contribute the proponents share the unsatisfied consumer and will tend to drop form 18.08% in 2010 to 14.77% in 2012.

Projected

Projected demand

unsatisfied

Year

demand

supply and supply gap

demand

2010

77,654 63,617

14,038

18.08%

2011

79,540 65,866

13,674

17.19%

2012

81,426 68,115

13,311

16.36%

2013

83,812 70,364

12,448

14.85%

2014

85,198 72,613

12,585

14.77%

CHAPTER III THE MARKET STUDY Demand of product Based on the research, Longganisa has evolved into one of the world’s most popular desserts, that’s why the demand for this is very promising.

Price of the product Longganisa has chosen for the study because It has proven its worth in terms of taste. The product will surely be liked by the consumers. The price is considered to be cheaper that other products such as tocino, hotdogs, and ham. It would only cost a customer P35.00 for a Longganisa with 6 division. Since Pangasinan o is as one of the known place in, the location is considered as advantage. The area is one of the most desirable locations.

The marketing program for the product Longganisa is situated in the area not high traffic count because it is located at Barangay Paldit Pangasinan, which has a great advantage in achieving the kind of atmosphere the business would like to have. Based on the market analysis, the product has an edge over its competitors. Because it capitalize on its unique concept and its flavors gives reference to the children imagination by which art, together with other children parts, is created. Organizational Chart

PROPONENTS

Staff

OVERALL OBJECTIVES •

To lend its continuity and vitality in producing delicious and nutritious Longganisa compare to any shops existing t o d a y.

SPECIFIC OBJECTIVES •

To

Provide

customers

with

a

unique

taste

of

Longganisa •

To grow at a profitable rate to create employment

•

To maintain healthy ingredients for personal wellbeing

•

T o e s t a b l i s h n e w s t a l l e v e r y 2 ye a r s

CHAPTER IV MANAGEMENT OF THE STUDY Logo and Description

This is the chosen logo because it shows the product itself, the Longganisa.

It is considered to be a mouthwatering photo that

consumers would surely like to taste and will be very affordable for e v e r yo n e . Longganisa Recipe Yield 12 to 15 pieces Prep Time 15 to 20 minutes Cooking Time 15 to 20 minutes, including boiling and frying 3 tablespoons brown sugar 1/2 tablespoon rock salt

1 tablespoon minced garlic 1 teaspoon liquid seasoning 1 teaspoon freshly ground black pepper 3 tablespoons local white vinegar 1/2 kilo double ground pork fresh pork casing (washed very well in water and vinegar; or use synthetic casing, available in stores where ingredients for meat processing are sold) 3/4 to 1 cup water 1 In a bowl, mix brown sugar, rock salt, minced garlic, liquid seasoning, cracked black pepper, and vinegar until well incorporated. 2 Add mixture to the ground pork and blend well so the seasoning is well distributed. Set aside. 3 Knot one end of the casing. Using a funnel, slowly stuff the pork mixture into the casing until the mixture reaches the knotted end; tie the other end to enclose. 4 Using kitchen twine, tie the filled casing at intervals to make 2-inch sausages. Refrigerate until ready to cook. 5 To cook: In a pan, boil sausages in 3/4 to 1 cup of water until water evaporates. Fry in its own oil or add cooking oil until golden brown.

Job titles

Proprietress – Responsible in the over – all operation of the

business

from

Marketing

to

Book

keeping

to

operation. Server – Responsible for sales remittance. Do assigned tasks and assignment given by the manager. Do the end line jobs in the operations. Plant Lay-out 30sqm

Management

I.1.

OTHER MARKET INFLUENCES

Desserts like Longganisa are extra little something at the end of a meal that just screams luxury and decadence. It’s a little bit of s e l f i n d u l g e n c e t h a t m a k e u s f e e l g o o d . U n f o r t u n a t e l y, m o s t f o o d also rely heavily on sugar or other ingredients that we know aren’t good for us. That good feeling quickly that it turns into guilt Longganisa is a sweet concoction made with meat and flavorings. time if we could make Well, the thought of making each tiny Longganisa just seemed too much work. Longganisa would be easier. Same taste, same texture but with a much cheaper price. The essence of e- commerce in our research is rapidly growing business that most people are now eager to run with. As the Internet has covered almost all the world including every nook and corner, people now can connect with the opposite pole within a few second at minimum price. So, the marketing through internet has become easy and any product of any place is available everywhere. It means your business can spread worldwide in short span. More and more businesses owners are going for online business as it can bring more potential clients to them. For any kind of product, whether it is medi cina l, home appliance or clothing, yo u can view your required the items from home with the help of

I n t e r n e t m a r k e t i n g w e b s i t e s a n d p l a c e o r d e r f o r t h e i t e m s yo u w a n t . A n d o n t i m e , y o u w i l l g e t t h e p r o d u c t s a t yo u r t h r e s h o l d . MARKETING STRATEGY As the customers today are smarter than before, they like to have different kind of things from different part of the world. Internet marketing has made it easy and sitting at home, customers can search for the products they want to buy and can order it. Before g o f o r b u yi n g i t , c u s t o m e r s c a n v i e w t h e p r o d u c t . I n c l u d i n g a l l t h e facilities and convenience that both the customers and the business owners may get from the e-commerce marketing, there is much importance of online marketing. QUALITY ASSURANCE These

quality

standards

will

be

based

on

customer

expectations with regard to: •

Performance

•

Product life

•

Appearance

•

The

Quality

Assurance

Program

will

integrate

all

functions of the company is a coordinated, responsive, and efficient effort to achieve this quality goal by: •

Maintaining high standards in purchasing raw materials and components.

•

Continuing

to

improve

our

manufacturing

facilities

equipment and methods. •

M a i n t a i n i n g a q u a l i t y a s s u r a n c e o r g a n i z a t i o n a n d s ys t e m which will assure quality products at optimum costs.

The Quality Assurance organization shall have the primary responsibility

for

measuring

quality

and

providing

quality

motivation; however, quality consciousness is to be an integral part of

the

activities

Consequently

all

of

each

members

department of

within

management

are

the to

company. continually

stimulate and encourage commitment on the part of all employees to f u l f i l l t h e c o m p a n y' s p o l i c y . T h i s c o m m i t m e n t w i l l b e d i r e c t e d toward the following priorities: •

Quality products and services

•

On-time delivery

•

Cost

Projected financial statement Table 1.6 Shows the Projected Balance Sheet of Mel’s Special Longganisa 2012

2013

2014

2015

Assets

Current Assets Cash Prepaid rent

654,160.00

1,422,640.00

2,259,616.00

3,172,472.00

30,000.00

30,000.00

30,000.00

30,000.00

Merchandise inventory

8,410.00

9,251.00

10,176.10

11,193.71

1,461,891.00

2,299,792.10

3,213,665.71

11,520.00

11,520.00

11,520.00

11,520.00

2,200.00

2,200.00

2,200.00

2,200.00

9,320.00

9,320.00

9,320.00

9,320.00

Php715,610.00

Php1,484,931.00

Php2,322,832.10

Php3,236,705.71

715,610.00

1,484,931.00

2,322,832.10

3,236,705.71

Total Current Assets

692,570.00

Fixed Assets Machineries and equipment Less: Accu. Depreciation Total Fixed Asset

Total Assets

Liabilities and

owner equity

Projected Balance Sheet Table 1.6 Shows the Projected Balance Sheet of Mel’s Special Longganisa 2012

2013

2014

2015

Assets

Current Assets Cash Prepaid rent Merchandise inventory

654,160.00

1,422,640.00

2,259,616.00

3,172,472.00

30,000.00

30,000.00

30,000.00

30,000.00

9,251.00

10,176.10

11,193.71

1,461,891.00

2,299,792.10

3,213,665.71

11,520.00

11,520.00

11,520.00

11,520.00

Less: Accu. Depreciation

2,200.00

2,200.00

2,200.00

2,200.00

Total Fixed Asset

9,320.00

9,320.00

9,320.00

9,320.00

Total Assets

Php715,610.00

Php1,484,931.00

Php2,322,832.10

Php3,236,705.71

715,610.00

1,484,931.00

2,322,832.10

3,236,705.71

Total Current Assets

8,410.00

692,570.00

Fixed Assets Machineries and equipment

Liabilities and owner equity

E.) Financial Analysis

Profitability Net Profit Margin = Net income after tax Sales

T a b l e 1 . 7 S h o w s t h e N e t P r o f i t M a r g i n o f Mel’s Special Longganisa Year 1

Year 2

Year 3

Year 4

Year 5

P287, 040

P331, 520

P373, 024

P418, 144

P478, 542

672,000

739,200

813,120

894,432

983,875

.43

.45

.46

.47

Operating Profit Margin = Profit before taxes

Sales

.49

T a b l e 1 . 8 S h o w s t h e O p e r a t i n g P r o f i t M a r g i n o f Mel’s Special Longganisa Year 1 P358, 800 672,000 .53

Year 2

Year 3

Year 4

Year 5

P414, 400

P466, 280

P522, 680

P598, 178

813,120

894,432

983,875

.57

.58

739,200 .56

.60

Gross Profit Margin = Gross Profit Sales

T a b l e 1 . 9 S h o w s t h e G r o s s P r o f i t M a r g i n o f Mel’s Special Longganisa Year 1

Year 2

Year 3

Year 4

Year 5

P268,320

P295,152

P324,667.2

P357,133.92

P392,847

672,000

739,200

813,120

894,432

983,875

.40

.40

.40

.40

23

.40

Sources of financing the project From Savings accounts From parents

P30, 000.00 35, 000.00 P65, 000.00

Projected Cash Flow Table 1.5 Shows the Cash Flow of Mel’s Special Longganisa

Cash Receipts

2012

2013

2014

2015

2016

P672,000

P739,200

P813,120

P894,432

P983,875

420, 000

462, 000

508, 200

559, 020

614, 922

67, 200

67, 200

73, 920

84, 000

84, 000

120, 000

120, 000

120, 000

120, 000

120, 000

5,000

5, 000

6, 000

7, 000

7, 000

12, 000

14, 400

15, 600

16, 800

18, 000

5, 000

5, 000

6, 000

6, 500

7, 000

71, 760

82, 880

93, 256

104, 536

119,636

712, 960

768,480

836, 976

912, 856

985, 558

from operation Cash Disbursements Purchases Salaries Rent Bonus Misc. Taxes and licenses Income tax Net Cash

Cash Bal. beg.

58, 800

654, 160

1, 422, 640

2, 259, 616

3, 172, 472

Cash Bal. end.

654, 160

1, 422, 640

2, 259, 616

3, 172, 472

4, 158, 030

Current operating expenses PERMITS AND BUSINESS REGISTRATION Barangay clearance

P

70.0

Business permit (barangay)

250.00

Business tax (local tax)

300.0

Permit fees-Mayor’s permit

300.00

PENRO

500.00

Fire safety

156.00

Sticker/Plate

150.00

Health fee

550.00

Sanitary inspection fee

500.00

BIR

600.00

DTI

500.00

Total

P3, 976.0

SOCIO ECONOMIC STUDY A) Employment Mel’s Special Longganisa Contribution to social and economic development is primarily for the employment of the people specifically to the resident of Barangay Paldit Pangasinan. B.) Income Its ability to generate consistent profits will ultimately determine its worth in the market place. C.) Taxes With the taxes, Mel’s Special Longganisa will pay to the Municipal Hall and BIR, it will be a part on building a progressive nation. D.)Supply of Commodities There is a large market for longganisa. Supply is likely promising. E.) Demands of Materials Demands for materials are considered adequate