Thesis Chapter 3

St.
John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy
Chapter III
TECHNICAL ASPECTS
There is more competition for the business than ever before and the competition is
getting stiffer every week and every month. Customers today are tougher to sell to than ever
before. Attaining world-class efficiency and quick adoption of cutting edge technology is a
must to satisfy the increasing demand of the customer. Decisions related to what form of
technology in this study to use and when to change technology are critical. Technology
involves the actual processes used in transporting raw materials and other inputs into
appropriate outputs. Other than technology, items taken deliberately are the product itself
and the manufacturing process, plant size and production schedule, plant location and
layout. The prime raw material of the proposed product which is pork is propagated by the
owner of Sorosoro Ibaba Development Cooperative in Sorosoro Ibaba, Batangas City.
Direct labor requirements, computation of businesss days of operation, utilities,
facilities and waste disposal are also included in this aspect of the study.
The Technical Aspects is the discussion of the basic and operational flow of the
project. It is one of the essentials of this study because this factor responds to the basic
structure of the proposed study.
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This includes the list of equipment, materials, structure plan and also the source of
the supplies use in the proposed project. The business plan, promotion strategies, utilities,
facilities, layout designs and location.
Physical property of the product
The physical property of the products refers to the external features of the product
itself, the way it was prepared and cooked if needed and presentation of other content of the
product the packaging its safety and sanitation procedures that may be observe of the
consumers.
Chemical Property of the product or service
The chemical property of the product refers to the internal content or the chemical
composition of the product that basically represent the nutrients that the product can offer
to the consumers. Other product presents their chemical information through the nutritional
facts seen at the back of the packaging.
Product Quality
Product quality is when a product does what you say it will do when you sold it, and
continues to do it. The percentage of time that the product delivers on the promises will be
the quality rating. Most people do not think seriously about food safety until them or a loved
one gets sick from unknowingly eating contaminated food. The JOPAM Company will never
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cease to provide our customers with high quality products that is risk- free and at the same
time economical.
Product Description
The importance of describing the product is to be acquainted with the nature and all
the features the product constitutes of such like the physical and chemical composition.
Sigwich is an exceptional brunch- a catalyst. It weighs 100 grams a piece of Sisig.
Sisig is a rich source of high-quality protein, as well as various vitamins and minerals. With
age, maintaining muscle mass is an important health consideration. Without exercise and
proper diet, muscle mass naturally degenerates with age, an adverse change that is associated
with many age-related health problems. Sisig promotes muscle growth and maintenance, and
improves exercise performance.
Product Packaging and Labeling
Customers are extremely visual. Unless the product has been tried before by the
customer or is recommended by a trusted source, the only way the buyer can choose a
product is based on the packaging and on the price of sigwich.
In addition, the appearance of physical facilities in a product is essential in building
credibility and buyer confidence.
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Production Process
Production is a process that is concerned with the transforming a large of inputs
into those outputs that are required by the market. Generally, this involves the use of the raw
materials, equipment and manpower to create quality products.
Production as a source of economic well-being and has a role in the society that
aims directly or indirectly to satisfy the needs of customer. The satisfaction of needs
originates from the use of commodities which are produced. The needs satisfaction increases
when the quality-price-ratio of the commodities improves and more satisfaction is achieved
at less cost. It helps the firm to develop unique and better quality products. It is the
foundation for earning profits by producing goods and services and selling them in the
market.
The more efficient and effective the production process, the more competitive and
profitable the business will be. The production is more efficient, when it is providing right
quality of goods with the right price at the right time.
Figure 3.1 Process flow in the Production of Sisig Sandwich
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Raw
materials
Preparing Packaging
Cooking
Figure 3.2 Product Logo
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Figure 3.3 Product label
Production Site
The proposed product to be feasible should be in the best location. The
proponents found an existing 30 square meters building which is located beside jeepney
terminal at Terminal, Crossing Calamba City, Laguna. The rent for that structure was
P10,000 a month. It is stated in the contract that the rent will not increase in 2years. It will
increase P2,000.00 on 3rd year of operation.
Reason for choosing a site
The store location chosen is Terminal, Crossing because most of the working and
travelling customer populate in this area anytime of the day.
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Floor Plan
Cart Lay Out
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Raw Materials
The following are the raw material to be used in the production of sisig sandwich:
Pork (Kasim)
Pork is the culinary name for meat from the domestic
pig. It is the most commonly consumed meat
worldwide, with evidence of pig husbandry dating
back to 5000 BC. Pork is eaten both freshly cooked
and preserved.
Bread
Bread is a food made of flour, water, yeast or another
leavening agent, mixed together and baked.
Rice
Rice is the seed of the grass species. It is the most
widely consumed staple food for a large part of the
worlds human population, especially in Asia.
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Catsup
Banana ketchup or banana sauce is a popular Philippine
fruit ketchup condiment made from mashed banana,
sugar, vinegar, and spices. Its natural color is brownish-
yellow, but it is often dyed red to resemble tomato
ketchup.
Water
Water is a colorless, transparent, odorless, tasteless liquid
that forms the seas, rivers, and rain and is the basis of the
fluids of living organisms.
Soy Sauce
Soy Sauce is a condiment made from a fermented paste
of boiled soybeans, roasted grain, brine, and
Aspergillusoryzae or Aspergillussojae molds.
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Black Pepper
Black Pepper is widely used as a spice and a condiment
and may be used as whole or ground.
Ginger
Ginger is a hot fragrant spice made from the rhizome
of a plant. It is chopped or powdered for cooking,
preserved in syrup, or candied.
Chili Flakes
Chili Flakes is a hot-tasting spice made from ground
dried red chilies.
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Garlic Powder
Garlic Powder is ground, dehydrated. It is a very
common seasoning.
Calamansi
Calamansi is a small, very roundcitrus fruit thats
ubiquitous in the Philippines.
Butter (Dairy Cream Classic)
Butter is a pale yellow edible fatty substance made by
churning cream and used as a spread or in cooking.
Egg(Chicken)
Egg is an oval or round object laid by a female bird,
reptile, fish, or invertebrate, usually containing a
developing embryo.
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Salt
Salt is essential for human life, and saltiness is one of
the basic human tastes.
Mayonnaise
Mayonnaise is a thick dressing of egg yolks, vinegar or
lemon juice, oil, and seasonings, used for salads,
sandwiches, vegetable dishes, etc.
Onion
Onion is a round vegetable that is usually white,
yellow, or red. Composed of several concentric layers
and has a strong smell and taste. Edible and can be
used in cooking.
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Kitchen Tools, Materials and Equipment

Burger Pan.
An appliances for grilling a food. An informal
restaurant or a room in a restaurant where grilled foods
are served.
Gas Stove.
A gas stove is a cooker/stove which uses natural gas,
propane, butane, liquefied petroleum gas or other
flammable gas as a fuel source.
Rice Cooker
A rice cooker or rice steamer is an automated kitchen
appliance designed to boil or steam rice.
Hair Net
A piece of fine mesh fabric for confining the hair.
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Tupperware
A range of plastic containers used chiefly for storing food.
Gloves
A rubber glove is a glove made out of rubber. Rubber
gloves can be unsupported (rubber only) or supported
(rubber coating of textile glove). Its primary purpose is
protection of the hands while performing tasks involving
chemicals.
Steel Table.
A piece of furniture with a flat top and one or more
legs, providing a level surface on which objects may be
placed, and that can be used for such purposes as eating,
working, or for the preparation for cooking.
Tong.
A Chinese association or secret society in the US,
frequently associated with underworld criminal activity.
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Freezer
A refrigerated compartment, cabinet, or room for preserving
food at very low temperature.
Generator
It is device that generates electricity from mechanical
energy, usually via electromagnetic induction.
Extension Cord
An extension cord, power extender, or extension lead is
a length of flexible electrical power cable with a plug on
one end and one or more sockets on the other end
usually of the same type as the plug.
Pan
A container made of metal and used for cooking food.
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Casserole
A deep round usually porcelain dish with a handle used for
heating substances in the kitchen.
Spoon spatula
A metal, wooden or plastic utensil having a shallow concave
part, usually elliptical in shape, attached to a handle, used in
heating or serving food, stirring, etc.
Kitchen Knife
An instrument for cutting, consisting essentially of a
thin, sharp-edged, metal blade fitted with a handle.
Tablespoon
It is a large spoon used for eating or serving.
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Bowl
A round, deep dish or basin used for food or liquid. A
round, deep dish or basin used for food or liquid.
Measuring cups
A cup marked in graded amounts, used for measuring
ingredients in cooking.
Chopping Board
It is a durable board on which to place material for
cutting. It is commonly used in preparing food.
Pot holder
A piece of quilted or thick fabric for handling hot dishes
and pans.
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Apron
A protective or decorative garment worn over the front of
ones clothes and tied at the back.
Kitchen/dish towel
A dish towel is a cloth used to dry dishes after they have been
washed
Nutrition facts
Ingredients: Pork, onion, soy sauce, black pepper, ginger, chili flakes, garlic powder,
calamansi, butter, mayonnaise, salt.
Nutrition Facts Cholesterol 50grms 17%
Serving Size 1 piece (100 grams) Sodium 350 grms 15%
Amount per Serving Carbohydrates 32grms 11%
% Daily Value Energy 430kcal
Total Fats 30 grms 46% Protein 8grms 0%
Saturated Fats 8 grms 40% Calcium 39 grms 4%
Phosphorus 83 grms 0% Iron 3mg 21%
B-Carotene 564 ug 0% Vitamin A 202 ug 20%
The Nutrition Facts were computed by the Nutritionist in the City Main Health
Office. The proposed product is a food rich in protein for tissue synthesis and tissue
repairing, building antibodies (protein form immune system molecules that fight diseases)
maintaining acid-base balance (protective barrier against excess acidity or alkalinity) and also
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protein that provides energy if carbohydrates and fats are insufficiently consumed. The
proposed product is affordable, easy to prepare and edible for human consumption.
Quality Control Procedure
For the quality control of the product, one of the proponents will be part of the
business operation. The manager will be responsible in supervising and directing the
operations on activities of the business.
The business should expect a high inventory turnover rate due to raw materials
having a short expiry date to ensure quality control, procedures will need to be established
ensuring the taste remain.
Labor Requirements
The Production workers are expected to be efficient and effective in doing their
tasks for the operation of the proposed business. There will be 3 workers in the production.
They are responsible for the processing of the product.
Table 3.1 employees Salaries and Wages
Salaries and Number of Rate per day No. of Rate per year
wages employees Working days
General Manager 1 400.00 306 122,400.00
Accountant 1 400.00 306 122,400.00
Service Crew 1 1 400.00 306 122,400.00
Service Crew 2 1 340.00 306 104,040.00
Production 1 340.00 306 104,040.00
Worker 1
Production 1 340.00 306 104,040.00
Worker 2
Total 6 2,220.00 679,320.00
The business will operate seven(7) days a week. The total number of working days of
sisig sandwich manufacturing company is 354days. The said days are computed by deducting
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the number of holidays (9 legal holidays and 2 special holidays) from 365days which is the
total number of days in a year. Computation of days in operation:
Schedule 3.1 Operation Schedule in the Firm
Total number of days in a Year 365 Days

Holidays Date
New Years Holiday January 01 1
Araw ng Kagitingan April 09 1
Maundy Thursday - 1
Good Friday - 1
Labor Day May 01 1
Independence Day June 12 1
National Heroes Day August 31 1
*Ninoy Aquinos Day August 21 1
All Saints Day November 01 1
Christmas Day December 25 1
*Rizal Day December 30 1
Total Working Days 354
The total number of operating days for the store is 354 days. It is computed by 9
legal holidays and *2 special holidays from 365 days a year. Their rate at these days will be
much higher than ordinary days.
The production will have a maximum 8 working hours per day. At exactly 5:00am to
6:00pm the store will operate and at 12:00noon to 1:00pm will be the lunch break of the
employees.
Table 3.1Direct Labor
Production Worker
No. of working days Rate per day Rate per year
No.
2 306 340 208,080.00
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Business Location
Theres an old saying that the three most important factors in choosing property are
location, location, location. When deciding on a site for a business, one has to decide on
what best suits his/her particular needs.
The location of the proposed business is one of the essential factors intended in
order to construct the establishment. The proponents intended to establish the business in
Terminal, Crossing Calamba City, Laguna which has a vast percentage of people dropping by
and shopping.
Map of City of Calamba
Waste Disposal
Sigwich Corporation promotes food safety whereas we look after the well-being of
our patron. That being said, sanitation should not only be exercised outside but also inside-
the company. Proper segregation of trash will be the top most priority in terms of cleanliness
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in the company. The major concern and what comes after the partition of trash is its
disposal. Carefully and with discipline, the trash will be disposed according to its level of
threat to the environment. Convertible trash will be sold for an additional peso.
Historically, some wastes were disposed of in regular landfills. This resulted in
unfavorable amounts of fatal materials seeping into the ground. These chemicals eventually
entered natural hydrologic systems. Many landfills now require countermeasures against
groundwater contamination. Pyrolysis, incineration, destruction and waste-to-energy and
Portland cement can be a mean to waste disposal. The waste will be collected by the garbage
collector at 9:00pm to 10:00pm in Terminal, Crossing.
Schedule 3.2 Weekly Rest Days Schedule
EMPLOYEE MON. TUE. WED. THURS. FRI. SAT. SUN.
General Manager RD
Accountant RD
Service Crew 1 RD
Service Crew2 RD
Production
RD
Worker 1
Production
RD
Worker 2
Legend:
RD - Rest Day
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Daily raw material used in the production
Table 3.2 Direct Materials
Total
Unit
Direct material Source Quantity Unit Cost per
cost
Day
Pork Lean Trade Market Calamba 5 Kilo 180.00 1,035.00
Onion Trade Market Calamba Kilo 30.00 30.00
Isaw Casing Trade Market Calamba 200 Pieces 00.80 160.00
Soy sauce Trade Market Calamba 1 Pack 9.00 9.00
Black pepper Trade Market Calamba 50 grams .12 6.00
Ginger Trade Market Calamba 100 grams 16.00 16.00
Chili flakes Trade Market Calamba 1 Pack 10.00 10.00
Garlic powder Trade Market Calamba 1 Pack 10.00 10.00
Calamansi Trade Market Calamba Kilo 20.00 20.00
Butter(Dairy cream) PuregoldCalamba 3 Piece 27.50 82.50
Egg Trade Market Calamba 11 Piece 3.50 38.50
Rice PuregoldCalamba 2 Kilo 40.00 80.00
Bread Trade Market Calamba 20(6pcs.) Pack 10.00 200.00
Catsup(papa) PuregoldCalamba 2 Bottle 18.00 36.00
Salt Trade Market Calamba 50 grams 2.00 2.00
Mayonaise(Real) Trade Market Calamba 1 Kilo 80.00 80.00
Cooking oil Trade Market Calamba 3 Bottle 16.00 408.00
Total 472.92 2,223.00
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Annual Raw Materials used in the Production
Table 3.3 Annual Direct Materials
Unit Total Cost

Direct material Source Quantity Unit
cost per Day
Pork Lean Trade Market Calamba 2,035.50 Kilo 180.00 366,390.00
Onion Trade Market Calamba 177 Kilo 60.00 10,620.00
Isaw Casing Trade Market Calamba 50,976 Piece 00.80 40,780.80
Soy sauce Trade Market Calamba 354 Pack 900.00 3,186.00
Black pepper Trade Market Calamba 17.70 Kilo 40.00 708.00
Ginger Trade Market Calamba 35.40 Kilo 160.00 5,664.00
Chili flakes Trade Market Calamba 354 Pack 10.00 3,540.00
Garlic powder Trade Market Calamba 354 Pack 10.00 3,540.00
Calamansi Trade Market Calamba 88.50 Kilo 80.00 7,080.00

Butter(Dairy
PuregoldCalamba 1,062 Piece 27.50 29,205.00
cream)
Egg Trade Market Calamba 3,894 Piece 3.50 13,629.00
Rice PuregoldCalamba 708 Kilo 40.00 28,320.00
7,080
Bread Trade Market Calamba Pack 10.00 70,800.00
(6pcs.)
Catsup(papa) PuregoldCalamba 708 Bottle 18.00 12,744.00
Salt Trade Market Calamba 17.70 Kilo 40.00 708.00
Mayonnaise
Trade Market Calamba 354 Kilo 80.00 28,320.00
(Real)
Cooking oil Trade Market Calamba 1,062 Bottle 16.00 16,992.00
Total 784.80 642,226.80
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Indirect Materials - Daily
Table 3.4 Indirect Materials
Total Unit
Indirect
Source Quantity Unit Unit Cost Cost per
Materials
Day
Calamba old
Water 1 Gallon 25 25.00
Market
Label Trade 220 Pieces 1.00 220.00
Plastic Trade 150 Pieces 1.95 292.50
Paper
Trade 100 Pieces 1.95 195.00
packaging
Total 29.90 732.50
Freight in
Supplier Location Amount
JenJen Meat Stall Trade Market Calamba 50.00
Abadiano SukiMart Trade Market Calamba 50.00
Total Weekly Freight -in 100.00
Total Monthly Freight -in 400.00
Total Yearly Freight -in 4,800.00
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Table 3.5Indirect Materials Annually
Total Unit
Indirect
Source Quantity Unit Unit Cost Cost per
Materials
Day
Calamba old
Water 354 Gallon 25 8,850.00
Market
Label Trade 77,880 Pieces 1.00 77,880.00
Plastic Trade 53,100 Pieces 1.95 103,545.00
Paper
Trade 35,400 Pieces 1.95 69,030.00
packaging
Total 29.90 259,305.00
Table 3.6Kitchen, Tools, materials and equipment
Description Quantity Unit Unit cost Amount
Patty grilled pan 1 Piece 1,500.00 1,500.00
Gas stove 1 Piece 775.00 775.00
Rice cooker 1 Piece 3,875.00 3,875.00
Hairnet 10 Piece 15.00 150.00
Tupperware 2 Piece 74.00 222.00
Disposable
30 Packs 42.00 1,260.00
gloves
Tong 2 Piece 52.00 104.00
Freezer 1 Piece 12,799.00 12,799.00
Generator 1 Piece 5.950.00 5,950.00
Extension cord 1 Piece 599.75 599.75
LPG 1 Tank 595.00 595.00
Pan 1 Piece 225.00 225.00
Casserole 1 Piece 250.00 250.00
Spoon spatula 3 Piece 65.00 260.00
Knife 1 Set 429.75 429.75
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Tablespoon 5 Piece 15.00 75.00
Bowl 5 Piece 35.00 175.00
Measuring cups 2 Set 379.50 759.00
Chopping board 2 Piece 89.00 178.00
Pot holder 4 Pairs 35.00 140.00
Apron 2 Piece 50.00 100.00
Kitchen towel 5 Piece 25.00 125.00
Weighing scale 1 Piece 399.75 399.75
Total 28,274.75 30,946.25

Source: SM Department Store and ACE Hardware
Table 3.7 Cleaning Supplies/Safety Supplies
Fire Extinguisher 1 Piece 1,250.00 1,250.00
Broom 1 Piece 50.00 50.00
Dustpan 1 Piece 30.00 30.00
Floor mop 1 Piece 100.00 100.00
Trash can 2 Piece 58.00 116.00
Floor mat 2 Piece 30.00 60.00
Trash bag 12 Piece 24.00 288.00
Sponge 4 Pack 17.00 68.00
Wiping Cloth 4 Piece 24.00 96.00
Disinfectant 4 Piece 50.00 200.00

Dish washing
5 Bottle 29.00 145.00
liquid
Detergent
4 Kilo 125.00 500.00
powder
Toilet pump 1 Piece 51.00 51.00
Tissue 12 Roll 28.00 336.00
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Air freshener 4 Piece 41.00 164.00
Toilet Liquid 4 Bottle 42.00 168.00
First aid kit 1 Set 1,300.00 1,300.00
Total 3,324.00 4,922.00
Source: Newstar
Table 3.8Office Equipment
Description Brand Quantity Unit Unit cost Amount
Computer Acer 1 Set 21,488.00 21,488.00
Printer Canon 1 Piece 3,400.00 3,400.00
Cellular
Samsung 1 Piece 3,675.00 3,675.00
Phone
Total 28,563.00 28,563.00
Source: SM Department Store SM City Calamba
Table 3.9 Furniture & Fixtures
Mono block 2 Piece 149.00 298.00
Chairs 1 Piece 1,989.00 1,989.00
Office table 2 Piece 675.00 1,350.00
Stand pan 1 Piece 1,175.00 1,175.00
Wall pan 1 Piece 1,025.00 1,025.00
Air condition 1 Piece 9,995.00 9,995.00
Wall clock 1 Piece 309.75 309.75
File Cabinet 1 Piece 1,350.00 1,350.00
Water dispenser 1 Piece 5,599.75 5,599.75
CCTV Camera 1 Piece 1,800.00 1,800.00

Exhaust fan 1 Piece 839.75 839.75
Total 24,907.25 25,731.25
Source: SM Department Store SM City Calamba
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Table 3.10Office Supplies
Tape 1 Pieces 50.00 50.00
Ruler 2 Pieces 10.00 20.00
Paper clip 5 Set 12.00 60.00
Push pins 1 Box 15.00 15.00
Scissors 1 Pieces 15.00 15.00
Correction tape 10 Pieces 18.00 180.00
Pencil sharpener 8 Pieces 5.00 40.00
Calculator 2 Pieces 83.00 166.00
Pen 2 Box 55.00 110.00
Pencil 3 Box 45.00 135.00
Rubber bands 1 Box 50.00 50.00
Eraser (rubber) 1 Pieces 10.00 10.00
Log book 5 Pieces 60.00 300.00
Journal record 5 Pieces 45.00 225.00

Bond paper
1 Reams 150.00 150.00
(short)
Bond paper
1 Reams 170.00 170.00
(Long)
High Lighter Pen 6 Pieces 25.00 150.00
Scotch tape 15 Pieces 20.00 300.00
Official receipt 10 Pieces 13.50 135.00
Folder (short) 20 Pieces 5.00 100.00
Folder (long) 20 Pieces 7.00 140.00
Wall Clock 2 Pieces 124.00 248.00
Ink Cartridges 1 Pieces 7,690.00 7,690.00
Sticker paper 500 Pieces 2.00 1,000.00
Total 8,679.50 11,459.00

Source: Newstar
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Table 3.11 Total Cost of tools, equipment, supplies and others
Description Amount
Kitchen Tools, materials and Equipment
30,946,.25
Office supplies
Office Equipment 28,563.00
Cleaning/Safety Supplies 4,922.00
Office Supplies 11,459.00
Furniture and Fixture 25,731.25
Total 101,621.50
Table 3.11 shows the total cost of tools, equipment, supplies and others.
Schedule 3.3 Rent Expense
Year Monthly Annually
1 10,000.00 120,000.00
2 10,000.00 120,000.00
3 12,000.00 144,000.00
4 12,000.00 144,000.00
5 12,000.00 144,000.00
Pre-Operating Expenses
Reconstruction of the building need some materials to fit in the interest of the
proponents materials needed are electrical for light and source of energy and for the electric
equipment. Reconstruction materials and labor is 28,468.60. The following is the full
computation of the electrical materials reconstruction materials and labor fee.
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Table 3.12 Electrical Materials

Fluorescent Light 1 Pieces 260.00 260.00
Light bulb 3 Pieces 65.00 195.00
Switch 4 Pieces 40.00 160.00
Electric Wire 1 Pieces 1,500.00 1,500.00
Total 1,865.00 2,115.00
Source: ACE Hardware SM City Calamba
Table 3.13 Construction Materials

Faucet 1 Piece 130.00 130.00
Sink, Tissue,
1 Set 2,895.00 2,895.00
Toilet
Bowl 1 Kilo 75.00 75.00
Nail 1 Set 45.60 45.60
Screw 2 Roll 77.00 154.00
Wire 1 Kilo 63.00 63.00
Concrete nail 2 Set 2,000.00 4,000.00
Window 2 Pieces 55.50 111.00
Toilet bowl 1 Pieces 2,600.00 2,600.00
Fly wood 3 Pieces 1,600.00 4,800.00
Door 2 Pieces 145.00 290.00
Door knob 2 Pieces 105.00 210.00
Coco lumber 3 Pieces 925.00 2,775.00
Paint 3 Gallons 475.00 1,425.00
Cement 12 Bags 120.00 1,440.00
Steel bows 1 Cubic meter 40.00 40.00
White sand 3 Cubic meter 600.00 1,800.00
Total 11,949.10 22,853.60
Source: ACE Hardware SM City Calamba
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Table 3.14 Construction Labor
Position Quantity Duration Rate per day Amount
Carpenter 2 3 500.00 1,500.00
Painter 1 2 300.00 600.00
Laborer 1 3 250.00 750.00
Electrician 1 1 650.00 650.00
Total 5 9 1,700.00 3,500.00
Table 3.15Total Pre-operational Expenses
Description Amount
Electrical Materials 2,115.00
Construction Materials 22,853.60
Construction Labor 3,500.00
Total 28,468.60
Utilities
Cost of electric consumption
The electricity will be provided by Meralco. The computations of the kilowatts used
everyday and in a year as follows
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Table 3.16 Annual Electricity Consumption
Watts- KW/watts KW-hours

Description Quantity Watts Usage hours per
per day
day
Freezer 1 1000 24 24,000 1,000 24.00
Computer 1 200 6 1,200 1,000 1.20
Printer 1 150 3 450 1,000 0.45
Phone 1 50 3 150 1,000 0.15
Air Conditioner 1 1,550 5 7,750 1,000 7.75
Exhaust fan 1 30 8 240 1,000 0.24
Wall fan 1 50 8 400 1,000 0.40
Stand fan 1 50 8 400 1,000 0.40
Water dispenser 1 40 8 320 1,000 0.32
CCTV Camera 1 15 24 360 1,000 0.36
Fluorescent light 1 125 8 1000 1,000 1.00
Rice cooker 1 350 4 1,400 1,000 1.40
Light bulb 3 8.40 6 50.40 1,000 0.05
Total 15 3,618.40 116 37,720.40 37.72
* watts x hours usage/1,000kw/unit = kw/day
Total KW used per year = Total watts-hours per day x No. of productive day/1,000
= 37,720.40 x 354/1,000
=P13,353.02 kilowatts
Total Electricity per year = Total KW used per day x Rate/KW
= 13,353.02 x 8.66
= 115,637.15
Schedule 3.4 electricity consumption
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Cost of Water Consumption
The location has existing water consumption Calamba Water District will be the
provider. The proponents estimate that the company will use 24 cum per month with total
of 473.55 x 12 months = P5,682.60/year.
Table 3.17 Computation for water consumption
Average cubic meter (cum.) 24 cm
Less: Minimum cubic meter 10 cm
Total cubic meter 14 cm
Multiply by: price per cubic meter 20.09
Total cubic meter consumed 281.26
Add: Regular payment 183
Amount of water consumption before tax 464.26
Add: franchise tax (2%) 9.29
Net amount of water consumption 473.55
Drinking water
One gallon of water at 25.00 per every 3 days is estimated to be consumed. P25.00 x
354 days/3 = P2,950.00.
Drinking water P 2,950.00
Water consumption 5,682.60
Total water cost P 8,632.60
Schedule 3.5 Total water cost
85
St. John Colleges
Communication
The proponents used cellular phone to transact business to the clients or customer.
Communication (prepaid load)
Table 3.18 Communication
Utilities Amount
Electricity 115,637.15
Water 8,632.60
Communication 1,500.00
Total 125,769.75
Miscellaneous Expenses
It is often a general ledger account in which very small amount are recorded. The
proponents estimated P5,000.00 of it for the first year of operation.
Table 3.19 Labor Requirement
General Manager 1
Accountant 1
Service Crew 2
Production Worker 2
Total 6
86
St. John Colleges
The Big 5 Company

Project Cost Statement
For the Year 2017
Fixed Assets Requirement

Kitchen Tools, Materials and Equipment 30,946.25
Office Equipment 28,563.00
Furniture and Fixtures 25,731.25
Leasehold Improvements 28,468.60 166,195.85
Acquisition of Expendable Items
Selling and Marketing Expense 6,030.00
Rent Expense 10,500.00
Utilities Expense 10,746.73
Office Supplies (3 months) 2,364.75
Cleaning/Safety Supplies (3 months) 1,230.50 29,960.42
Working Capital (3 months)
Direct Materials 160,556.70
Freight-in 1,200.00
Direct Labor 52,020.00
Factory Overhead 108,756.33 322,533.03
Business Permits and Licenses 11,455.00
Total 477,657.55
Contingency Fund (13.15%) 72,342.45
Total Cost of Investment P550,000.00
Schedule 3.6 Project Cost Statement
87

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owner of Sorosoro Ibaba Development Cooperative in Sorosoro Ibaba, Batangas City.

Direct labor requirements, computation of businesss days of operation, utilities,

structure of the proposed study.

facilities, layout designs and location.

Physical property of the product

Chemical Property of the product or service

facts seen at the back of the packaging.

Sigwich is an exceptional brunch- a catalyst. It weighs 100 grams a piece of Sisig.

improves exercise performance.

Product Packaging and Labeling

product is based on the packaging and on the price of sigwich.

In addition, the appearance of physical facilities in a product is essential in building

credibility and buyer confidence.

Production is a process that is concerned with the transforming a large of inputs

materials, equipment and manpower to create quality products.

quality of goods with the right price at the right time.

Figure 3.1 Process flow in the Production of Sisig Sandwich

Figure 3.2 Product Logo

Figure 3.3 Product label

The proposed product to be feasible should be in the best location. The

increase P2,000.00 on 3rd year of operation.

Reason for choosing a site

travelling customer populate in this area anytime of the day.

Cart Lay Out

Pork is the culinary name for meat from the domestic

pig. It is the most commonly consumed meat

worldwide, with evidence of pig husbandry dating

back to 5000 BC. Pork is eaten both freshly cooked

Bread is a food made of flour, water, yeast or another

leavening agent, mixed together and baked.

Rice is the seed of the grass species. It is the most

widely consumed staple food for a large part of the

worlds human population, especially in Asia.

Banana ketchup or banana sauce is a popular Philippine

fruit ketchup condiment made from mashed banana,

sugar, vinegar, and spices. Its natural color is brownish-

yellow, but it is often dyed red to resemble tomato

Water is a colorless, transparent, odorless, tasteless liquid

fluids of living organisms.

Soy Sauce is a condiment made from a fermented paste

of boiled soybeans, roasted grain, brine, and

Aspergillusoryzae or Aspergillussojae molds.

Black Pepper is widely used as a spice and a condiment

and may be used as whole or ground.

Ginger is a hot fragrant spice made from the rhizome

of a plant. It is chopped or powdered for cooking,

preserved in syrup, or candied.

Chili Flakes is a hot-tasting spice made from ground

dried red chilies.

Garlic Powder is ground, dehydrated. It is a very

Calamansi is a small, very roundcitrus fruit thats

ubiquitous in the Philippines.

Butter (Dairy Cream Classic)

Butter is a pale yellow edible fatty substance made by

churning cream and used as a spread or in cooking.

Egg is an oval or round object laid by a female bird,

reptile, fish, or invertebrate, usually containing a

Salt is essential for human life, and saltiness is one of

the basic human tastes.

Mayonnaise is a thick dressing of egg yolks, vinegar or

lemon juice, oil, and seasonings, used for salads,

sandwiches, vegetable dishes, etc.