PROJECT HIGHLIGHTS

Project: Banana Chips Production

Plant Site:

Proposed Market Outlets: Supermarkets, Groceries

Total Project Cost: Cost/Month Unit Cost % to Total

P1,994,817.35 (Peso/ Pack)

Financing Scheme:
Equity

Unit Cost of production:

P10.41 /100 gms.

Proposed selling Price:

P15.00 / 100 gms.

Gross Sales (P15 X 38,556 pcks X 12

mos) P6,940,080.00

Gross profit
P2,123,665.00

Net Profit
P1,735,020.00

Return on Investment
(1,735,020/1,994,817.35) 87%

Payback Period
1 year and 2 months
Product Costing
Basis: 30-day month Operation (38,556
packs @ 100 gms.)

Direct Materials P299,250.00 P7.76 68.98%

Direct Labor 30,000.00 .78 6.93%
Factory Overhead
Indirect Labor 12,000.00 .31 2.75%
Packaging Materials 13,493.70 .35 3.11%
Utilities 15,000.00 .39 3.47%
Depreciation 28,457.84 .74 6.58%
Repairs & Maintenance 3,000.00 .08 .71%
Total factory overhead P71,951.54 P1.87 16.62%
Total Production Cost P401,201.54 P10.41 92.53%
Selling and Administrative Expenses
Salaries P19,500.00 .50 4.44%
Office supplies 1,000.00 .03 .27%
Permits and licenses 150.00 - -
Insurance 3,500.00 .09 .80%
Depreciation (Office) 7,214.30 .19 1.69%
Repairs and Maintenance 1,000.00 .03 .27%
Total Selling & Administrative Exp. 32,364.30 .84 7.47%
TOTAL COSTS & EXPENSES 433,565.84 11.25 100%
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 Capital Investment

Fixed Assets Total

Land (150 sq. m. @ P300.00/so.m.) P45,000.00
Building (100 sq.m. @ P8,000/sq m.) 800,000.00
Laboratory Equipment 20,500.00
Production Equipment 61,400.00
Office equipment & Furniture 15,000.00 941,900.00
Working Capital Requirements 867,131.68
Pre-Operating Expenses 4,650.00
Contingency 181,135.67
Total project Cost 1,994,817.35
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