Final Paper

JMJ Marist Brothers
Notre Dame of Marbel University

Senior High School Department
City of Koronadal, South Cotabato
MARKETING PLAN
Description of the Product
A sleeping bag with an attach pillow case that is 20 inches wide and 20
inches long with an attached zipper on the upper part and it will serve as a bag of
the owner to place his or her clothes. The sleeping bag is 6 feet long and 4.5 feet
wide and the color of the sleeping bag will include dark colors (black, gray, dark
blue, maroon). It is shaped rectangular when used as a bedding and when folded.
It includes zippers, foam, nylon taffeta cloth and oxford cloth. This product is used
as a protection against wind, cold, weather and rain during outdoor expeditions.
Target Market
The main target will be people who ages from 17 to 50 years old.
Specifically;
1. College Students and Young Professionals who are into travelling, camping
and adventures. They are usually the ones who go out for outdoor activities
required by their organization to participate in for academic purposes and
mandatory programs. With the use of the Eas-z’s sleeping bag it will lessen their
baggage and it will help them to sleep comfortably on the ground.
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JMJ Marist Brothers
Market Area
The market area will be at Koronadal City which is located in the biggest
Island of the Phillippines-Mindanao, a crown city in South Central Mindanao.
We chose the city of koronadal because it is surrounded by mountains and
there is a higher possibility that the koronadaleños are interested in camping
and travelling since the city is surrounded by mountains and it has areas for
camping.
Figure 1. Market Area – City of Koronadal
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JMJ Marist Brothers
Total Demand
Our total demand includes people that ages 17 to 50 years old. Three out
of five Filipinos 15 years old and over travelled within the country, according to the
results of the 2016 Household Survey on Domestic Visitors (HSDV).
Table 1. Percent Distribution of Domestic Travelers during the past six months, Philippines: 2016
Age Group 100

15 – 24 27.9
25 – 34 24.1
35 – 44 18.6
45 – 54 14.6
55 – 64 8.9
65 and over 5.9
Table 1 shows the preliminary results of the HSDV 2016, jointly conducted
by the Philippine Statistics Authority (PSA) and the Department of Tourism (DOT),
presents that 59 percent of Filipinos 15 years old and over travelled within the
country.
Table 2. Projected Age Group Population, 2018
Age Group Population

School – going Population
18 756
(Tertiary 17-21 )
Working Age ( 15 - 64) 115 342
Table 3. Data on College Institutions - Enrollment in Koronadal City, 2017 - 2018
City/Province Total
Koronadal City – college enrollees 12 534
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JMJ Marist Brothers
Table 4. Projected working age population, 2018
Working Age ( 17 – 50 ) 90 216
Table 5. Total Age Group Population

= Working age ( 17 to 50) - Koronadal City (college enrollees)
= 90 216 – 12 534
= 77 682
Table 5 shows that the total population of the college students and young
professionals in koronadal city is 77 682. According to Rappler, Filipino millennials
naturally link their personal dreams with their careers and when they are asked
what they are setting their money for, 10% answered that travel is their top priority.
Table 3 shows the total number of enrolment for AY 2017-2018 in koronadal city
which is 12 534 including ACLC, Goldenstate, Green Valley, ICSC, Kings’s,
Korbel, MITC, MSST, MCT, NDMU, RMMC, SPTI, RPC, St. Alexius, STI colleges
in Marbel or Koronadal City.
Table 6. Table Presentation Demand

= Total projected age group population x percentage of people who prioritizes travel
= 77 682 x 10%
Total Demand = 7 768
In line with this, 10% of the total projected school-going population (tertiary
level) and working age is 7 768, which is the total population of college students
and young professionals who are interested in travelling, camping and adventures.
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JMJ Marist Brothers
Supply
The product doesn’t have a direct competitor since it is a sleeping with

different features compared to a regular sleeping bag because its pillow case will
serve as the owner’s bag for his/her clothes and belongings and the sleeping bag
itself is wide enough for a number of 3 – 5 people to sit on when placed and spread
on the ground. Thus, our indirect competitors include KCC Mall of Marbel, Ace
centerpoint and Gaisano Grand Mall.
Direct Competitors = 0
Indirect Competitors = 3
Table 7. Indirect Competitors
Estimated Sold
Indirect Competitors Price Supply (per month)
Supplies (per year)
KCC Mall of Marbel 450 60 540 - 650
Ace Centerpoint 380 30 150 - 240
Gaisano Grand Mall 1200 10 30 - 95
Table 4 shows that KCC Mall of Marbel’s product costs 450 pesos and according
to their sales ladies their supplies ranges from 60 units and above every month and they
usually sell 20 to 60 units per month and it usually depends on what season it’s
demanded. Ace Centerpoint’s product costs 380 pesos lesser than KCC’s price and
according to their sales lady their supply per month ranges on the maximum of 30 units
and they can sell 10 to 20 units per month. Gaisano’s product costs 1 200 pesos because
unlike KCC and ACE’s product their sleeping bag are thicker and are made from high
quality cloth unlike what KCC and ACE sells. Gaisano have 10 units of supply per month
and sells an estimation of 30 - 95 units per year.
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JMJ Marist Brothers
Supply and Demand Analysis
Table 8. Supply and Demand Analysis
Demand – Supply
= 7 768 – 0
= 7 768
The total population for the demand of sleeping bag is 7 768 subtracted to
its zero direct competitor equals to 7 768. With three indirect competitors who
caters a total 12.4% in the market, leaving 87.6% for the new entrants.
Market Share
The product has zero total number of direct competitors and has a total of
three indirect competitors. As a fact that the business is new in the market, the
business decided to cater 3.7% or 288 out of the total demand. The business can
cater the total of 288 target market in a year by producing 24 units of the product
per month. In order to persuade more people to buy our product we will strengthen
our strategies and identify our weaknesses in order to avoid the possible threats
to our business.
Selling Price
To determine the selling price, we used the cost-plus pricing by computing

the direct materials needed including nylon taffeta, oxford cloth, zippers and bag
straps as well as the estimated packaging expenses. And then, adding the
expenses for the labor and the additional mark-up rate of 50% which will cost the
product with the total of 1 552.5 pesos. The mark-up rate of the product will be
50% for the business to cover up the expenses.
Table 9. Selling Price

Total
Php 1 552.50
(1035 + 50% mark-up rate)
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JMJ Marist Brothers
Promotional Measures
In promoting our business, we will persuade other customers in the market by

alluring their attention to our product especially when it comes to its packaging
because according to Miranda Brookins, a marketing professional, the visual
presentation of product packaging helps attract consumers and persuade them to pick
up a product, learn what it’s used for and determine if the product will add value to
their lives. Second, we will advertise our product online through our social media
accounts and pages. Lastly, applying personal selling and telemarketing wherein we
will rely on our interpersonal and communication skills
Promotional Budget
Our online marketing will cost 100 pesos per month since we are going to need to
promote our product, in creating our social media accounts and updating our
customers for our future promos. Advertisements will cost 600 every 3 months
including our fliers, posters or tarpaulin printings. Our product will be packaged by a
brown thick paper bag with a printed label of our company logo and added information
about the business.
Table 10. Promotional Budget
Marketing Strategy Cost (Php) TOTAL COST (annual)

Online Marketing
 Facebook
1 200
 Instagram 100 per month
 Twitter
Advertisements 600 every 3 months 2 400
Php 3 600.00
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JMJ Marist Brothers
Competition
Since our product is different from other businesses, we don't have any direct
competitors. On the other hand, we have three indirect competitors around our market
place which are KCC Mall of Marbel, ACE Centerpoint, and Gaisano Grand Mall
Koronadal. They are known as well established businesses and they are strong
competitors since they are well known in the market. We will be able compete our
product because of its different features that our indirect competitors doesn’t have.
Including how our sleeping bag lessen the baggage of the campers and the fact that
they can store their belongings in it and they can also relax and feel the comfort it
provides.
Sales Forecasts
The computation done for the sales forecast of our business shown below are
all based from what we have researched and from what we have estimated. The sales
forecast were properly computed and the exact amounts are placed correctly. From
the total demand of 7 768 and a market share of 3.7% or 288, we will produce 24
units of our product every month that costs 1 552.5 pesos per unit. With the total of
Php 447 120 for the first year. we will increase by 50% on the second year and 25%
of the first year will be added in our increase in production on the third year because
we will add 1 tailor who will produce 12 more units in our production per month.
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JMJ Marist Brothers
Sales Forecast
 7 768 (total demand)

x 3.7 % (market share)
288
 24 units/per month x 12 months in a year = 288 units per year
 Php 1 552.5 x 24 units/month = Php 37 260 x 12 months = Php 447 120 (year 1)
3000000 sales
2000000
1000000
0
2018 2019 2020 2021 2022
sales
Figure 2. Sales Forecast
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JMJ Marist Brothers
PRODUCTION PLAN
Production Process
The flow chart below outlines the process of manufacturing our sleeping
bag. First, buying of the high quality raw materials specifically in Ace Centerpoint.
Second, delivery of the raw materials to our production area. Third, cutting and
preparing of components in our production area. In 1 month, each tailor should be
able to produce 12 units to achieve the production of 24 units per month as said
on the sales forecast. Fourth, assembling the product. Fifth, checking the quality
of the product by the owner and the tailors. Lastly, if products are good, they are
packed and ready to sell by the owners.
Buying of high Cutting and

quality raw Delivery of Preparing of
materials Raw Materials components
Product Product
Packaging Assembling
Quality Check
Figure 3. Process flow chart
1st Step: Buying of raw materials needed in ACE Centerpoint.
2nd Step: Delivery of raw materials at Purok Hillside, Sta. Cruz, Koronadal City
(production and selling area).
3rd Step: 2 tailors hired will each cut and prepare the product which involves 2
sewing machines.
4th Step: The tailors will assemble the product. Each tailor should be able to
produce 12 units per month.
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JMJ Marist Brothers
5th Step: The quality of the finished product will be checked .by the owners and the
laborers.
6th Step: The owners will pack the finished product and sell it.
Fixed Capital
Life of Fixed Capital
The table below shows the fixed capital needed in the operation of the
business. The cost of every furniture was only estimated and the quantity shown
was projected based on the number of equipment that they will need and also
based on their capacity to produce.
Table 11.Fixed Capital for Machine, Equipment, Furniture and Fixtures
Machine Cost Quantity Total cost
Sewing Machine 10 000 2 20 000
Equipment Cost Quantity Total cost
Electric Fan 1 945 2 3 890
Furniture and Fixtures Cost Quantity Total cost

Display Shelves 3 250 2 6 500
Wooden Table 2 040 2 4 080
Counter Table 2 000 1 2 000
Mono block Chair 450 3 1 350
Total cost of Machine, Equipment and Furniture and Fixtures Php 37 820
The business decided to rent a space for their first and second year. The
total cost of the furniture and fixtures was determined by multiplying their cost and
the projected quantity. Lastly, by adding all the total cost, the amount needed to
acquire the listed furniture and fixtures will be Php 37 820.
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Table 12. Fixed Capital total depreciation
Fixed Capital Total Depreciation
Fixed Capital Cost Salvage value Estimated life Depreciation
Sewing Machine
Machine 20 000 2 000 28 643
(2)
Display Shelves 6 500 500 10 600
Furniture and Table 4 080 300 15 252

Fixtures Chair 1 350 150 15 80
Counter Table 2 000 400 10 160
Equipment Electric Fan 3 890 300 10 359
TOTAL 2 094
The depreciation of the fixed capital was computed by subtracting the total
cost to the projected salvage value and the difference was divided to its estimated
life. Thus, the amount computed is Php 2 094
Sources of Fixed Capital
The source of fund for the fixed capital will come from the personal
investment of the owners of the business. The business will also loan from the East
West Bank for the first year.
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JMJ Marist Brothers
Table 13. Fixed Capital Maintenance and Repair Cost
Maintenance and Repairs

Maintenance Repairs
Sewing Machine 50 250
Electric Fan 100 200
Display Shelves 10 50
Wooden Table 10 50
Counter Table 150 300
Chair 10 30
TOTAL Php 940
Planned Capacity
The business will hire 2 tailors who can produce 12 units of sleeping bag in
24 working days a month and can produce 288 units a year. The business will also
own 2 manual sewing machines for each tailor in order to achieve our goal to
produce 288 units for the first and second year.
Future Capacity
In the third year of production, the business expects to increase its annual
sales by 25 percent. In order to achieve this increase, the business decided to hire
1 tailor and add 1 manual sewing machine.
Location and Layout
The physical store of the Eas-z company is located at Purok Hillside, Sta.
Cruz, Koronadal City, South Cotabato. The business decided to set its business
here because it's near to camping areas and the downtown area. It is also near to
our target market. In addition, the business is far away from its competitors and it
will attract campers and travelers as they pass by or if they will be needing the
product.
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Location Map
Figure 4. Location Map
Facility Layout
Figure 5. Planned Facility Layout
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JMJ Marist Brothers
Raw Materials and Supplies
The raw materials needed in our product includes the Oxford cloth where it
is woven 100% of polyester oxford fabric and finished with a durable water
repellent and then laminated with a thin black polyurethane coating on the back. It
means it is waterproof on both sides and has crazy strong durability. Second, the
nylon tafetta cloth, it has a shiny surface and a crisp hand feel and is considered
medium to heavy in weight and also considered as a durable fabric. Third, bag
zippers and strap.
Bag Zipper Bag Strap Nylon Tafetta Oxford Cloth
Figure 6. Raw Materials of the Product
Sources
The nylon and oxford cloths will be obtained in Koronadal City.

Specifically in Ace centerpoint and stores where they sell cloths or other bag
components that are durable and has high quality textures can be bought.
Availability
The oxford, nylon taffeta cloth and other raw materials will be bought
in ACE Centerpoint of Marbel by roll or pack. Thus, the business plans to order
bundle of raw materials needed in the future in companies that produce high quality
products related to our product.
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JMJ Marist Brothers
Labor
Cost of Labor
We will hire 2 tailors in order to produce the 288 units of sleeping

bags. Each tailor will produce 3 sleeping bags in 6 days. The salary of each tailor
is Php 150 per unit of the product they produce. They will receive Php 1 800
monthly and will receive Php 21 600 per year.
Labor Availability
Our tailors are the relatives of one of the proponents of the company who
lives in the vicinity of Koronadal City. When unexpected events occur the laborer
may loss his/her salary for the fail production he/she may lost. Since their salaries
will be based on the number of units they will produce.
Labor Productivity
Each tailor will work for 6 days in a week. From Monday to Saturday.
They will be working 8 hours a day (9am to 5pm). In 6 days each laborers can
produce 3 sleeping bags. One laborer can produce 1 bag every 2 days and will
result to 6 units of sleeping bag every week. 24 sleeping bags will be produced in
1 month. In 1 year, the tailors would be able to produce and achieve a total of 288
units.
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Factory Overhead Expenses
Table 14. Total Factory Overhead Expenses
Indirect Materials 21 600

Utilities
Water (150/month) 3 600
Electricity (150/month)
Rent Expense 72 000
Internet Installation 1 308
TOTAL Php 98 508.00
Production Cost
Table 15. Total Expenses of Production Cost
Direct materials per unit

Nylon Taffeta (2 ½ meters) 198
Oxford (2 ½ meters) 324
Foam (2 meters) 200
Zipper (1 meter) 5
Strap (2 meters) 8
Adjuster (4 pc) 50
TOTAL Php 810.00
Production Cost
Factory Overhead Expense 6 409
Raw Materials and Supplies 885
TOTAL Php 7 294.00
Labor Cost
Labor Php 150.00
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Fixed Cost
Furniture and Fixtures 38 760
Depreciation 2 094
Rent Expense 6 000
Salaries 8 000
Utilities 300
Php 55 154.00
Table 16. Total Expenses of Production Cost Annually
Production Cost ( 1 308 + 254 880) 256 188

Labor Cost (150 x 288) 43 200
Fixed Cost 212 454
TOTAL 511 842
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JMJ Marist Brothers
ORGANIZATIONAL AND MANAGEMENT PLAN
Form of Business Ownership
The business is a partnership. The capital will be provided by the

proponents. 100 percent of the financial requirement will be divided among the 5
owners. The proposed business will be managed by the owners. The business will
also hire employees needed by the business to help the owners to the day-to-day
operations of the business
Organizational Structure
Owner
Bookkeeper
Sales Representative Tailor (2)
Figure 7. Organizational Structure
Figure 3 shows the relationship of the owners to the sales representative to

the tailors and the bookkeeper. According to the flow chart the owners holds
responsible for the two tailors as well as the bookkeeper. The owners are the ones
responsible for buying the raw materials of the product, and on operating sales
such as selling the products to the customers since the owners already have the
knowledge and background on how to run a business. The business decided to
outsource a bookkeeper who have the background on how to keep records of the
financial affairs of a business so that the owners will be sure that they won’t have
any errors in analyzing the transactions occurring in the business.
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Key Officers and Personnel
The owners will take the responsibilities as the cashier, sales person, and
production manager since the business is a new entrant and the owners are capable of
handling the business with the positions mentioned. Table 7 shows the position, job
qualification and job description of the staffs needed in the business.
Table 17. Qualification/Duties and Responsibilities
Position Job Qualification Job Description

 Male or Female
 18 and above  Sew garments, using
 Must have a high school threads and needles or
diploma sewing machine
Tailor  Must have at least one  Confers with customer
year experience in to determine type of
tailoring material and garment
 Must be good in design style desired.
and art
 Responsible for cash
keeping
 Male or Female
 25-30 years old  Responsible in
 Must have a Bachelor’s recording of sales
Degree in any Business transactions and cash
majors flows
 Preferably a graduate of  Deals with sales
Financial Management , invoices, income,
Accountancy or receipts and payments
Bookkeeper Accounting Technology  Prepare the monthly
 Must have at least one financial statements
year experience in
managing cash of the  Helps to prepare annual
business accounts
 Must be knowledgeable  Completes Value Added
in accounting and cash Tax (VAT) returns
work with less  Responsible for
supervision checking the accounts if
they are accurate
 Sales representatives
 Male or Female sell retail products,
 It must be a college goods and services to
graduate customers.
Sales Representative  Must have a product
Knowledge  Sales representatives
 Must have a college work with customers to
diploma find what they want,
create solutions and
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JMJ Marist Brothers
 Must have at least one ensure a smooth sales

year working experience process.
in other company  Sales representatives
 will work to find new
sales leads, through
business directories,
client referrals, etc.
Table 18. Workers’ Wages
Position No. of Hours Number of Rate of Salary and Wages

Duty (Minimum) Employees Salary per
unit
2 Monthly Yearly
Days
Tailor 8 2 150 150 3 600 43 200
Bookkeeper 8 1 x x 2 000 24 000
Sales Rep. 8 1 x x 6 000 72 000
Total Php 3 800 Php 67 200
Pre – Operating Activities
Figure 4 below presents the Pre – Operating Expenses of the Business

including the permits needed of the business which are the BIR, mayors/business permit,
SEC registration certificate and barangay clearance for the business to ensured that the
financial health of the company is in good standing and in order to file for a yearly tax
return supporting the legitimacy of the business. Secondly, Internet Installation for the
promotion and advertisement of the business including online marketing for the product
to be easily introduce in the market since online marketing increases the visibility of our
business, help us connect easily with our customers, helps us cope up with the
competition and it will legitimate our business by establishing and maintaining the
presence of our business online.
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Table 19. Pre – Operating Expenses
Activities Estimated cost

Permits:
BIR ₱500.00
Mayors permit/business permit ₱470.00
SEC registration certificate ₱2000.00
Barangay clearance ₱50.00
Internet installation ₱1 308.00

Total: ₱4 328.00
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FINANCIAL PLAN
Total Projected Cost
Building (Rent) Php 18 000

Furniture and Fixtures 13 930
Machinery and Equipment 23 890
Depreciation 2 094
Factory Overhead Expenses 1 308
Utilities 900
Salaries 45 600
Maintenance and Repairs 940
Pre – Operating Expenses 3 347
Raw Materials 74 520
TOTAL PROJECTED COST Php 183 929
The statement above shows the total projected cost of the business. It shows the
amount of the building rented for three months. The equipment involves the sewing
machine and counter table and the amount of their depreciation is shown. The statement
also shows its furniture and fixtures. The wages of the laborers were obtained by
multiplying their salaries for three months for the bookkeeper and for the tailor per units
they produce. The utilities were multiplied for three months. The raw materials were
multiplied to the number of units to be produce for 3 months.
Sources of Financing
Equity
With the total projected cost of 183 929 pesos shown above, the 5 business
owners will contribute Php 20 000 each equally. Therefore, the business owners
will provide the amount of Php 100 000.
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Borrowed (Loan)
The business will borrow an amount of Php 500 000 to the EastWest Bank
in order to pay and support the total projected cost of the business as well as to
continue the cash flow and production process of the business. The amount will
be paid in 1 year term with a collateral and will have an 8% interest which is 40
000 pesos with a total of 540 000 pesos.
Terms and Condition
 We certify that all the information in this application and the documents
submitted in support thereof are complete, true and correct and all the
signatures therein are genuine.
 We hereby authorize and permit the bank to request information and to
make necessary inquiries about us and our business from third parties
in connection with our loan application and any updates thereon.
 We consent to the use and disclosure by the bank of information relating
to us, our loan application and our transactions with the bank to any
subsidies and affiliate agents, members of Filinvest group of companies,
it’s third party service providers, other association, credit information
bureaus and collection information technology systems, data processing
and storage and statistics and risk analysis purpose.
 We also express our desire to be referred to the products and services
of and thereof allow the bank to share the information we have provided
to its subsidiaries, affiliates and members of the Filinvest group of
companies.
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Financial Statement
Cash Flow Statement
Year 1
Cash flow from Operating Activities

Cash received from Sales 447,120.00
Cash paid to Raw Materials (237,600.00)
Cash paid to Direct Labor (43,200.00)
Cash paid to Overhead (20,300.00)
Cash paid to Rentals (72,000.00)
Promotional (3,600.00)
Salaries (96,000.00)
Cash paid to Utilities (4,908.00) (30,488.00)
Net Cash Inflow from Operating Activities (30,488.00)
Cash flow from investing activities

Cash paid to purchased Equipment (37,820.00)
Net cash outflow from investment activities (37,820.00) (37,820.00)
Cash flow from Financing Activities

Bank Loans 500,000.00
Cash contributed by the owner to the business 100,000.00
Net cash Inflow from Financing Activities 600,000.00
Net Increase(Decrease) in cash balance 531,692.00
Cash begin
Cash end 531,692.00
Year 2

Cash received from Sales 670,680.00
Cash paid to Utilities (4,908.00) 65,052.00
Net Cash Inflow from Operating Activities 65,052.00
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Bank Loans -
Cash contributed by the owner to the business 100,000.00 100,000.00
Cash begin 531,692.00
Cash end 658,924.00
Year 3

Cash received from Sales 1,173,690.00


Bank Loans -
Cash end 967,226.00
Year 4

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Promo (14,400.00)


Bank Loans
Cash end 1,524,243.00
Year 5

Cash paid to Raw Materials (1,403,325.00)
Promo (18,000.00)
Cash flow from investing Activities

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Bank Loans
Cash begin 1,524,243.00
Cash end 2,456,132.50
Income Statements
Year 1
Eas-z
Income Statement
For the year ended December 31, 2019
Sales 447,120.00
Cost of Goods Sold (254,880.00)
Gross Profit 192,240.00
Operating Expense
Utilities Expense 4,908.00
Pre-operating Expense 3,020.00
Depreciation Expense 2,094.00
Rent Expense 72,000.00
Interest Expense 40,000.00
Promotional Expense 3,600.00
Salaries Expense 139,200.00 264,822.00
Operating Income (72,582.00)
Tax Expense (21,774.60)
Net Income after Tax (50,807)
Year 2
Eas-z
Income Statement
Sales 670,680.00
Operating Expense
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JMJ Marist Brothers

Operating Income 59,938.00
Tax Expense 17,981.40
Net Income after Tax 41,957
Year 3
Eas-z
Income Statement
Sales 1,173,690.00
Operating Expense
Year 4
Eas-z
Income Statement
Sales 1,760,535.00
Cost of Goods Sold (1,003,590.00)
Operating Expense
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Year 5
Eas-z
Income Statement
Sales 2,640,802.50
Cost of Goods Sold (1,505,385.00)
Gross Profit 1,135,417.50
Operating Expense
Balance Sheets
Year 1
Eas-z
Balance Sheet
Assets Liabilities
Current Asset Current
Cash 531,692.00 Taxes Payable (21,774.60)
Non-current Equity
Equipment 37,820.00 Capital 549,193
Accumulated Depreciation (2,094.00) Loans Payable 40,000.00
35,726.00
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Total 567,418 567,418

Year 2
Eas-z
Balance Sheet
Assets Liabilities
Cash 655,904.00 Taxes Payable 17,981.40
Non-current Equity
Accumulated Depreciation- (2,094.00)
Equipment
35,726.00
Total 691,630 691,630
Year 3
Eas-z
Balance Sheet
Assets Liabilities
Cash 961,186.00 Taxes Payable 75,109.50
Non-current Equity
Equipment
45,083.00
Total 1,006,269 1,006,269
Year 4
Eas-z
Balance Sheet
Assets Liabilities
Cash 1,515,183.00 Taxes Payable 149,724.00
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Non-current Equity
Equipment 47,820.00 Capital 1,410,542
Equipment
45,083.00
Total 1,560,266 1,560,266
Year 5
Eas-z
Balance Sheet
Assets Liabilities
Cash 2,444,052.50 Taxes Payable 262,185.75
Non-current Equity
Equipment 47,820.00 Capital 2,226,950
Equipment
45,083.00
Total 2,489,136 2,489,136
Financial Analysis
Return on Investment
Year Income/Loss Total assets Return on Investment

2019 (50,807) 567,418 -0.09
2020 41,957 691,630 0.06
2021 175,256 1,006,269 0.17
2022 349,356 1,560,266 0.22
2023 611,767 2,489,136 0.25
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The table above shows the return on investments of the business. For the first
year of the business, it didn’t earn an income therefore its return on investment is
negative. However, it increased on the following year. For 2020, it has 6% return on
investment, 17% for the year 2021, 22% in year 2022 and 25% for the year 2023. This
means that even though the business doesn’t have a return on its first year, the
business continues to utilize its assets on the following years.
Break Even Point
𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡

Break Even Point=
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡−𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
212,454
=
1552.50−960
212,454
=
592.50
=359
The break-even point of the business is 359. It is the result by dividing the total fixed
cost of 212,454 pesos to the difference of the selling price per unit and production cost
per unit amounting to 592.50 pesos. This means that the business won’t break even
until they sell 359 units of sleeping bag and they won’t make a profit until the 360th one.
Payback Period
Year Cash Flow Net Invested Cash

0 0 P600,000
1 -50,807 P600,000
2 41,957 P558,043
3 175,256 P382787
4 349,356 P33431
5 611,767 0
33
JMJ Marist Brothers
The payback period of the Eas-z company is somewhere between year 4 and
year 5 because there is still an amount of Php 33,431 investments that the company
must pay. While there’s an amount of Php 611,767 cash flow projected in the year 5.
34

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JMJ Marist Brothers

Notre Dame of Marbel University

Description of the Product

Figure 1. Market Area – City of Koronadal

Age Group 100

Table 2. Projected Age Group Population, 2018

Age Group Population

Table 3. Data on College Institutions - Enrollment in Koronadal City, 2017 - 2018

Table 4. Projected working age population, 2018

Working Age ( 17 – 50 ) 90 216

Table 5. Total Age Group Population

Table 6. Table Presentation Demand

The product doesn’t have a direct competitor since it is a sleeping with

Table 7. Indirect Competitors

Supply and Demand Analysis

Table 8. Supply and Demand Analysis

To determine the selling price, we used the cost-plus pricing by computing

Table 9. Selling Price

In promoting our business, we will persuade other customers in the market by

Table 10. Promotional Budget

Marketing Strategy Cost (Php) TOTAL COST (annual)

 7 768 (total demand)

Figure 2. Sales Forecast

Buying of high Cutting and

Figure 3. Process flow chart

1st Step: Buying of raw materials needed in ACE Centerpoint.

Life of Fixed Capital

Table 11.Fixed Capital for Machine, Equipment, Furniture and Fixtures

Machine Cost Quantity Total cost

Sewing Machine 10 000 2 20 000

Equipment Cost Quantity Total cost

Electric Fan 1 945 2 3 890

Furniture and Fixtures Cost Quantity Total cost

Table 12. Fixed Capital total depreciation

Fixed Capital Total Depreciation

Fixed Capital Cost Salvage value Estimated life Depreciation

Display Shelves 6 500 500 10 600

Furniture and Table 4 080 300 15 252

Counter Table 2 000 400 10 160

Equipment Electric Fan 3 890 300 10 359

Sources of Fixed Capital

Table 13. Fixed Capital Maintenance and Repair Cost

Maintenance and Repairs

Location and Layout

Figure 4. Location Map

Figure 5. Planned Facility Layout

Raw Materials and Supplies

Bag Zipper Bag Strap Nylon Tafetta Oxford Cloth

Figure 6. Raw Materials of the Product

The nylon and oxford cloths will be obtained in Koronadal City.

We will hire 2 tailors in order to produce the 288 units of sleeping

Factory Overhead Expenses

Table 14. Total Factory Overhead Expenses

Indirect Materials 21 600

Table 15. Total Expenses of Production Cost

Direct materials per unit

Table 16. Total Expenses of Production Cost Annually

Production Cost ( 1 308 + 254 880) 256 188

ORGANIZATIONAL AND MANAGEMENT PLAN

Form of Business Ownership

The business is a partnership. The capital will be provided by the

Sales Representative Tailor (2)

Figure 7. Organizational Structure

Figure 3 shows the relationship of the owners to the sales representative to