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Feasibility study about Poultry Business

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feasibility study about Poultry Business

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Feasibility study about Poultry Business

  1. 1. St. Anthony’s College San Jose de Buenavista, Antique INTRODUCTION Livestock raising is a common business in our country. In this business, varieties of products are derived depending on what production the entrepreneur is in. It requires knowledge and skills in order to succeed in this field. Thus, interest, capital, ability to manage the project and the demand for the product in the locality is taken into 1 consideration. One of the livestock raising industry is poultry. It can be specialized into egg production, chicken breeding, and raising broilers for meat production. It has been a popular and lucrative job due to the increasing demand from the emerging business and increasing population. This feasibility project is primarily focused on the poultry production specifica l ly the 45 days broiler meat production. This business, the Chic’N Poultry Business, will be engaged in raising and selling good quality dressed chicken and its by-products such as intestine, liver, feet, head, neck and gizzard. It will serve the demand of poultry meat in Bugasong and probably the neighboring municipalities in the near future.
  2. 2. St. Anthony’s College San Jose de Buenavista, Antique EXECUTIVE SUMMARY 2 BACKGROUND INFORMATION The proposed project name is “Chic’N Poultry Business” which will be located at Brgy. Sabang West, Bugasong, Antique. The poultry farm has an easy access to transportation, electricity and water supply. The business is a sole proprietorship owned by Mrs. Arleen N. Sidayon. Chic’N Poultry Business is engaged in growing broiler and producing chicken meat. It will focus on selling the Best Dressed Chicken and its by-products with its superior taste and texture. MARKETING ASPECT The business will cater the unfilled demand of dressed chickens and its by-products in the market. The demand and supply of the project is based on the survey that was conducted. The price will be based on the prevailing market price of the product. To attract prospective buyers, streamers will be put up and fliers will be distributed in public places. Word-of-mouth will also be a good way to introduce the product. The products will be distributed through delivery which will be scheduled before the market days of Bugasong. Walk-in customers will also be accommodated. The target markets are business establishments such as restaurants, meat shops, barbeque stalls, roasted chicken food stall and food catering businesses.
  3. 3. St. Anthony’s College San Jose de Buenavista, Antique 3 TECHNICAL ASPECT The proposed project is located at an accessible area. The place is spacious and surrounded by trees which is appropriate to relieve the chicken from stress and diseases. The location has a built-in well which will help sustain the water supply. The business will be engaged in growing the broiler chicken until it is processed into a dressed chicken and ready for delivery. The wastes will be dumped in a compost pit. ORGANIZATIONAL ASPECT The project is owned by Mrs. Arleen N. Sidayon. The owner will be the manager and the bookkeeper. There will be three staff that will help in the operation of the business. FINANCIAL ASPECT The source of financing will be 25% from the bank loan and the 75% will be provided by the proponent. The financial aspect of the business requires high cost to put up the project but a good gain can also be expected. SOCIO-ECONOMIC ASPECT The project aims to contribute benefits to the people of Bugasong because it will hire three staff who are residents of the local area. It will generate additional income to the government through paying taxes and in complying the permits needed in the operation of the business. It will also help increase the supply of dressed chicken and its by-products in the market.
  4. 4. St. Anthony’s College San Jose de Buenavista, Antique BACKGROUND INFORMATION 4 A. Name of the Business The project is named “Chic’N Poultry Business” as a short but catchy term for our product which is chicken. B. Location The project is located at Brgy. Sabang West, Bugasong, Antique. It is a spacious area surrounded by trees which is suitable for raising chickens. It is far from neighboring houses to avoid disturbance and has an easy access of transportation, electricity and water. C. Vision, Mission and Objectives Vision Chic’N Poultry Business aims to be the leading suppliers of dressed chicken and its by-products in Bugasong, Antique as well as in the neighboring towns. Mission Chic’N Poultry Business is committed to promote good and high quality with low price dressed chicken and by-products to the people living in Bugasong, Antique and other neighboring towns.
  5. 5. St. Anthony’s College San Jose de Buenavista, Antique Objectives The objective of the proposed project is to promote convenient distribut ion of dressed chicken and its by-products for consumers’ consumption, retailers and other food business establishments to satisfactorily avail their needs. Indicatively, the project wants to attain the following: a. To expand the operation of the business in the neighboring towns after 5 5 years. b. To increase profit by 5% annually. c. To provide good and high quality products. d. To be the leading supplier of dressed chicken and its by-products in Bugasong and other neighboring towns.
  6. 6. St. Anthony’s College San Jose de Buenavista, Antique MARKETING ASPECT 6 A. Description of the Product Chic ‘N Poultry Business will raise 45 days broiler chickens with a target weight of 1.6 kilo each. Broiler chicken are day old chicks that typically have white feathers and yellow skin which become full grown broilers at an average of 45 days. The business will produce dressed chickens that are fresh and well-cleaned. Aside from the dressed chicken, the business will also offer its by-products such as gizzard, liver, intestines, feet, head and neck. B. Target Market Chic’N Poultry Business primarily targets to supply business establishments such as restaurants, meat shops, barbeque stalls, roasted chicken food stall and food catering businesses in the municipality of Bugasong. Moreover, the demand of dressed chicken in the market of Bugasong is 2,472 kilos. There are two existing competitors namely Chynn-Chynn’s Store which produces 731 kilos of dressed supply chicken every week or 2,924 kilos a month and Magnolia which produces 366 kilos a week or 1,464 kilos per month. Both competitors are located at the public market of Bugasong. The data for demand and supply is located at Schedule 1.
  7. 7. St. Anthony’s College San Jose de Buenavista, Antique Product Price per kilo (Regular Seasons) Chicken P 120.00 P 130.00 Intestines P 80.00 P 80.00 Liver P 150.00 P 150.00 Feet P 80.00 P 80.00 Head P 50.00 P 50.00 Neck P 90.00 P 90.00 Gizzard P 140.00 P 140.00 7 C. Pricing Strategy In order to be competitive, the products will be sold based on market price in Bugasong. The average inflation rate of dressed chicken and its by-products is 5% (Philippine Statistics Authority,Antique). The regular seasons of dressed chicken and by-products are January, February, June, July, August, September, October and November while the peak seasons are March, April, May and December. The products are listed below with their respective market price per kilo. Table 1. Prices of Products D. Distribution Strategy Price per kilo (Peak Seasons) The products will be distributed through delivery. The market days in Bugasong are Wednesday and Sunday. Prior to the market days, there will be a scheduled delivery every Tuesday and Saturday using the delivery vehicle
  8. 8. St. Anthony’s College San Jose de Buenavista, Antique (multicab) owned by the proponent. If the customer would like to order not on scheduled time of delivery or there are possible walk-in customers, the manager’s decision depends if there is an excess products as reserved for the following day provided that the customer will also be the one who will pick-up the product. 8 The cost of delivery is shown below: Cost of gasoline per Scheduled Delivery Amount Weekly P 250.00 Monthly P1,000.00 Table 2. Cost of Delivery E. Promotional Strategy The promotional strategies to be used by Chic ‘N Poultry Business are through word of mouth, placement of streamers and distribution of fliers. The streamers will be placed at the municipal plaza of Bugasong, public market and in front of the poultry farm two weeks before opening of the business. The fliers will be distributed to the business establishments such as restaurants, meat shops, barbeque stalls, roasted chicken food stall and food catering businesses in Bugasong as well as the by-passers in the public market two weeks before the opening of the business.
  9. 9. St. Anthony’s College San Jose de Buenavista, Antique The following table shows the cost of promotional materials: Cost per Unit Number of Pieces Total Cost Supplier P200 3 P 600.00 Boytex Printing 1 450 450.00 Tres Marias TOTAL P1,050.00 Table 3. Cost of Promotional Materials Promotional Material Streamer (2x1 m) Flier (8.5 x 5.5 in) Computer Shop *The canvass of promotional materials is presented in Exhibit 20B. 9 F. Sales Projection Services (Bugasong) (Bugasong) Based on the survey, the unmet demand for dressed chicken in a week is 1,375 kilos or 5,500 kilos in a month. The market share of dressed chicken in Bugasong is 12% (Philippine Statistics Authority, 2014). The projected sales for the first year of operation is P1,279,488. The projected annual growth rate for dressed chicken and its by-products is 8% and the inflation rate of prices is 5% (Philippine Statistics Authority, 2014).
  10. 10. St. Anthony’s College San Jose de Buenavista, Antique The projected sales for five years is presented below: Table 4. Projected Sales 10 Year Sales-Dressed Chicken (Schedule 2A) Sales -By-Products (Schedule 2B) Total Sales 1 P 1,085,007.00 P 194,481.00 P 1,279,488.00 2 1,342,593.00 240,993.00 1,583,586.00 3 1,514,938.00 272,933.00 1,787,871.00 4 1,789,854.00 309,966.00 2,099,820.00 5 1,955,082.00 351,274.00 2,306,356.00
  11. 11. St. Anthony’s College San Jose de Buenavista, Antique TECHNICAL ASPECT 11 A. Nature of the Product Chic ’N Poultry Business grows and produces dressed broiler chicken. Broiler chicken is a specialized breed of chicken intended to grow approximate ly 45 days, the best breed of chicken to raise for meat production. Dressed chicken will only be sold in whole and specific prices will be placed on its by-products. The business will focus on selling the Best Dressed Chicken and its by-products with its superior taste and texture. The major consumers of the product will be restaurants, market, various institutions with food catering services, and high income households. Products Description Dressed Chicken It is a processed chicken. Intestine It is a long tube in the body of the chicken. Liver This is the largest organ of the chicken. It is a dark brown part internal organ of the chicken. Feet These contain relatively little meat, and are eaten mainly for the skin and cartilage.
  12. 12. St. Anthony’s College San Jose de Buenavista, Antique Head It is the upper part of the chicken which is mostly grilled. Neck It is a part between the head and the body of the chicken which is mostly grilled or fried. Gizzard It is a dark brown and hard part of the chicken. Table 5. Description of Products 12 B. Location of the Business Chic’N Poultry Business is located at Brgy. Sabang West, Bugasong, Antique. The site has an easy access to transportation, electricity and water supply. There is a built-in well in the site which can be used in maintaining the cleanliness of the poultry farm. The location is surrounded by the trees which helps the chickens avoid stress which is cause of too much heat of sun.
  13. 13. St. Anthony’s College San Jose de Buenavista, Antique PURCHASE REARING DRESSING DISPOSAL 13 C. Operational Process Figure 1. Operational Process Price canvass of one (1) day old chick Supplier Purchase of one (1) day old chick Payment and receipt of chick Set up (feeders, waterers, artificial brooders and ventilation) Chicks Arrival and unloading of chicks Feeding and giving of water three (3) times a day Vaccination Fasting of chicken for four (4) to eight (8) hours Weighing of chicken Stunning/ bleeding Scalding and removal of feathers under controlled heat (600) Evisceration/ Removal of Internal Organs Washing/ cleaning of products Refrigeration Take cu stomers’ orders Customer Purchase order Pickup and del ivery of goods Bi l l customers and issue Col lection of payment Issuance of receipts
  14. 14. St. Anthony’s College San Jose de Buenavista, Antique 14 a. Feeding Schedule Age of chicks in days Type of feeds Consumpti on Cost per Sack Total Cost per 800 chicks Supplier 0-14 Chick Booster 3 sacks/800 heads P1,350.00 P 4,050.00 Pacifica Agri-Vet Supplies 15-28 Broiler Starter 4 sacks/800 heads P1,500.00 P 6,000.00 Stephen & Diane Store 29-45 Broiler Finisher 4 sacks/800 heads P1,250.00 P 5000.00 Pacifica Agri-Vet Supplies Table 6. Feeding Schedule (Department of Agriculture) b. Drinking Water The chicks will be provided with numerous drinking bowls since they easily get thirsty, especially in hot weather. It will also help them to learn quickly how to drink. These will place be in bright places so they can be easily found and accessible to approach. The source of water will be from the Bugasong Water District.
  15. 15. St. Anthony’s College San Jose de Buenavista, Antique Age of chicks in days No. of hours in light No. of hours in dark 0-3 23 1 4-7 18 6 8-14 14 10 15-22 16 8 23-28 18 6 29 to market age 22 2 15 c. Light In the first week, the chicks will be given enough light to enable them to keep eating. For the first three days, flocks are usually expose to 23 hours of light and one hour of darkness to allow for adjustment to their surroundings and for finding feed and water. The hour of darkness adapts the flock to darkness and prevents later piling in case of electrical failure. Light duration is then controlled from day four to five or six weeks, depending on target weight and duration of the grow out. Table 7. Light Schedule (Department of Agriculture)
  16. 16. St. Anthony’s College San Jose de Buenavista, Antique 16 d. Temperature Chick’s temperature is 38.6°C and becomes 40.5°C in 7 days. The coop temperature must be 31°C-35°C in the first day and this is lowered by 3°C at the end of the first week. After this, temperature is maintained at 21°C-24°C. Age of chicks in days Brooding temperature oC 0-7 31 – 35 8-15 27-31 15-27 21-24 28-45 Remove the supply of heat Table 8. Temperature Schedule (Department of Agriculture) e. Vaccination Program The broiler chickens will be vaccinated in order to prevent them from diseases such as New Castle Disease and Infectious Bursai Disease. The NCD Vaccine is administered on the 7th and 17th day of the chick. One drop of vaccine in the eyes or one drop in the nostril is given. Care should be taken not to release the chick until it has inhaled the nasal drop and/or blinked its eye. The IBD Vaccine is mixed with water on the 7th and17th day of the chick. This is performed to prevent the increase number of mortality of chickens. Vaccine Schedule Cost per Head New Castle Disease Vaccine 7 days old P 1.50 P 2.00
  17. 17. St. Anthony’s College San Jose de Buenavista, Antique 17 Infectious Bursai Disease Vaccine New Castle Disease Vaccine Infectious Bursai Disease Vaccine 17 days old P 1.50 P 2.00 Table 9. Vaccination Schedule D. Land, Delivery Vehicle and Building The owner has an available land and delivery vehicle to be used for the entire operation. The land has an area of 300 square meters which is enough to put up a poultry farm. The building costs P 80,809.00. The lay-out of the poultry farm is presented at Exhibit 33 and the detailed computation for the building is located at Exhibit 6. E. Equipment, Supplies and Furniture and Fixtures Equipment Particulars QTY Unit Unit Cost Estimated Useful Life Total Cost Supplier Operating Equipment Knives 3 Item P130.00 5 P390.00 Bandiola Plastic Goods
  18. 18. St. Anthony’s College San Jose de Buenavista, Antique 18 Weighing scale 2 Item 1,980.00 (60 kilos) 5 3,960.00 Charlie Auto Supply Kawa 1 Item 2,900.00 (extra size) 5 2,900.00 Bandiola Plastic Goods Plucker 1 Item 19,000.00 10 19,000.00 Olx.com Artificial Brooder 5 Item 150.00 5 750.00 Dinglasan Furniture Freezer 2 Item 15,000.00 7 30,000.00 Gaisano Grand Mall of Antique Chopping Board 2 Pieces 350.00 5 700.00 Dinglasan Furniture Waterers 25 Pieces 110.00 5 2,750.00 Pacifica Agri-Vet Supplies Shovel 2 Item 450.00 5 900.00 Robert Trading Wheel borrow 1 Item 2,195.00 5 2,195.00 Susana Marketing
  19. 19. St. Anthony’s College San Jose de Buenavista, Antique Bucket 5 Item 250.00 5 1,250.00 Bandiola 19 Plastic Goods Tub/Basin 10 Item 260.00 5 2,600.00 Bandiola Plastic Goods Generator 1 Item 15,000.00 10 15,000.00 Aton Marketing Total Operating Equipment P82,395.00 Office Equipment Calculator 3 Item 465.00 5 1,395.00 Gaisano Grand Mall of Antique Stapler 2 Item 40.00 5 80.00 Hercyl’s Mini Mart Total Office Equipment P1,475.00 TOTAL COST OF EQUIPMENT P83,870.00 Table 10. List of Equipment *The canvas of cost of equipment is presented in Exhibit 2. Description – Operating Equipment  Knives- A sharp edge equipment for cutting. It is used in cleaning the chicken.
  20. 20. St. Anthony’s College San Jose de Buenavista, Antique  Weighing Scale- A measuring device used to weigh live and dressed chicken.  Large Pan (Kawa) – A large piece of cookware used for boiling or roasting foods. It will be used in the scalding procedure to help soften the feathers.  Plucker- An electric equipment with rubber fingers that enables easy feathering of 20 the chicken.  Artificial Brooders – It is a 120 watts capsule which is used to supply heat to the chicks in the brooding house from day old to 2 weeks. This is in the form of electric, kerosene lamp or aid of charcoal.  Freezer- A cooling equipment used in freezing the clean chicken that is ready for delivery.  Chopping Board – It is a durable board made of wood or plastic and come in various widths and sizes. It will be used as a place material for cutting the chicken.  Waterers – It is an inverted vessel that is used as drinkers. It is a semi-circular, fairly wide and supported by an additional bracket to permit easier adjustment and easy cleaning.  Shovel- A tool used for digging and cleaning the poultry house.  Wheelbarrow- It is cart that bring items from one place to another. It will be used to carry the feeds and manure of chickens.  Bucket- It is a container used in getting water and cleaning the poultry house.  Tub/Basin- It is an open usually circular vessel with sloping or curving sides used typically for holding water or other materials. This is where the chickens are placed after cleaning.  Generator – It is a machine used to supply electricity.
  21. 21. St. Anthony’s College San Jose de Buenavista, Antique 21 Description - Office Equipment  Calculator – It is a device that performs arithmetic operations on numbers.  Stapler – It is machine for fastening together sheets of paper or the like, with wire staples. Supplies Particulars Quantity Unit Unit Cost Total Cost Supplier Office Supplies Folder 20 Pieces P5.00 P100.00 Gaisano Grand Mall of Antique Record Book 5 Item 85.00 425.00 Gaisano Grand Mall of Antique Ballpen 10 Item 11.00 110.00 Gaisano Grand Mall of Antique Receipts 50 Item 44.00 2,200.00 Gaisano Grand Mall of Antique Correction Fluid 2 Item 14.00 28.00 Gaisano Grand Mall of Antique Total Office Supplies P2,863.00 Operating Supplies Plastic Bag 1 Item 100.00 100.00 Bandiola Plastic Goods Total Operating Supplies P100.00 Cleaning Supplies Waste can 1 Item 160.00 160.00 Bandiola Plastic Goods Broom 2 Item 130.00 260.00 Bandiola Plastic Goods
  22. 22. St. Anthony’s College San Jose de Buenavista, Antique Dustpan 2 Item 50.00 100.00 Bandiola 22 Plastic Goods Total Cleaning Supplies P520.00 TOTAL SUPPLIES P3,483.00 Table 11. List of Supplies *The canvas of cost of supplies is presented in Exhibit 3. Description – Office Supplies  Folder – A piece of cardboard folded to make a file in which necessary documents can be held, compiled and filed.  Record Book – It is used to monitor the inventory level, credits of customers, attendance of staff, expenses and revenues.  Ballpen – It is an instrument with ink used for writing.  Receipts – It is a printed acknowledgement which serves as an evidence of payment.  Correction Fluid – An opaque liquid used to paint over a written or printed errors and provide a surface for adding a correction. Description – Operating Supplies  Plastic –A thin transparent waterproof material used for wrapping the products sold by the business. Description – Cleaning Supplies  Waste Can –A container for waste wherein people throw their trash especially papers.
  23. 23. St. Anthony’s College San Jose de Buenavista, Antique  Broom –A brush for sweeping inside the office.  Dustpan –A container with a flat base and an open front into which dirt and dust 23 can be swept. Furniture and Fixtures Particulars Unit Cost Quantity Estimated Useful Life Total Cost Supplier Monoblock Chair P300.00 5 3 P1,500.00 Bandiola Plastic Goods Wooden Table 3,299.00 1 4 3,299.00 Gaisano Furniture Filing Cabinet 14,500.0 0 1 4 14,500.00 Gella Gen. Merchandising Total P19,299.00 Table 12. List of Furniture and Fixtures *The canvas of cost of furniture is presented in Exhibit 4 Description – Furniture and Fixtures  Monoblock Chair – A plastic furniture that is used for sitting accommodation of customers and staff.  Wooden Table – A wooden furniture use in the reception area and paper works area of the manager.
  24. 24. St. Anthony’s College San Jose de Buenavista, Antique  Filing Cabinet – A furniture that is used as storage compartment. It will be the place where the files of the business are kept. Description No. Monthly Salary Owner/Manager 1 P8,080.00 Caretaker/Maintenance 1 6,012.70 Operational Staff 1 6,529.50 24 F. Labor Requirements/Manpower Chic’N Poultry Business will have three employees in the operation and management of the business. Table 13. List of Monthly Salaries Operational Staff/Driver G. Utilities The poultry business needs water and electricity. Water is important in order to provide water supplements to the chicken and to clean the poultry house. The source of water will come from an existing deep well within the vicinity and a faucet; therefore the need for water supply is enough to operate the business. Also, this project needs electricity to provide light to the chicken. It will serve as a source of artificial heat for them. 1 7,286.30 TOTAL 4 P27,908.50
  25. 25. St. Anthony’s College San Jose de Buenavista, Antique 25 Utilities Monthly Usage Rate Monthly cost Supplier Water 22.72 Cubic Meter P22 per Cubic Meter P500.00 Bugasong Water District Electricity (Schedule ) 328.03 kilowatt P10.30 per kilowatt 3,378.71 ANTECO Transportation 1,000.00 Sea Oil Communication P L A N 499.00 Globe TOTAL P5,377.71 Table 14. List of Utilities Expense H. Waste Disposal In order to make the project environment friendly it needs proper disposal of waste. In connection with this, the project must have a compost pit, about 2 meters wide and 2 meters deep. The compost pit will be the dumping site of the waste of chicken which shall be covered to minimize the spreading of odor. I. Fiscal and Legal Regulations The business, in order to start its operation, needs several permits such as DTI permit and Mayor’s Permits. These permits are renewable annually.
  26. 26. St. Anthony’s College San Jose de Buenavista, Antique 26 Amount Annual Registration (BIR) P500 DTI 300 Mayor's Permit 2,000 Business Clearance to Operate 30 Police Clearance 75 Sedula 22 Fire Clearance 50 Sanitary Permit 125 Environmental Compliance Certificate (DENR) 500 TOTAL P3,602 Table 15. List of Permits
  27. 27. St. Anthony’s College San Jose de Buenavista, Antique ORGANIZATIONAL ASPECT Owner/Manager Operational Staff 27 A. Form of Organization The business will adopt a sole proprietorship type of organization where the owner will also be the manager. This form of organization is chosen because it is easy to establish. B. Organizational Chart Caretaker/ Maintenance Operational Staff/Driver Figure 2. Chic’N Poultry Business – Organizational Structure
  28. 28. St. Anthony’s College San Jose de Buenavista, Antique 28 C. Functions and Job Descriptions The employees of the business will have the following functions: Job Title Description Owner/Manager Responsible for the production and business management. Supervise the daily operation. Purchase chicks, feeds and other necessities for the rearing of chicks. Accepts orders. Receive payments from the customers and issues official receipts. Pays the bills. Acquire assets. Approves the credits of customers. Negotiate with the customers concerns. Responsible for the bookkeeping. Renew the licenses and permits. Pay premiums of SSS and Phil health. Approves transactions related to the business. Hires and fires employees. Caretaker/Maintenance Replenish food and water for the chickens on daily basis. Administer the vaccination of the chicken.
  29. 29. St. Anthony’s College San Jose de Buenavista, Antique Clean the cages, office and the surroundings of the poultry farm. Administer the vaccination. Operational Staff Responsible for the purchase, loading and unloading of 29 chicks. Responsible for the weighing, bleeding, scalding, evisceration, cleaning and refrigeration of the product. Administer the delivery of the customer’s orders. Operational Staff/Driver Responsible for the purchase, loading and unloading of chicks. Drive the delivery truck. Responsible for the weighing, bleeding, scalding, evisceration, cleaning and refrigeration of the product. Administer the delivery of the customer’s orders. Check the condition of delivery truck regularly. Table 16. Functions and Descriptions of Employees D. Qualifications For the above positions and their corresponding tasks and functions, the following qualifications are required: 1. Owner/Manager  Is willing to finance the business.  Able to manage the business.
  30. 30. St. Anthony’s College San Jose de Buenavista, Antique  Is knowledgeable in poultry industry. 30 2. Caretaker/Maintenance  Male, a full time worker whom able to maintain poultry cleanliness and administer the rearing of chickens.  At least 18-35 years old.  Must be loyal and trustworthy.  Must be responsible, industrious and hard worker.  Is knowledgeable about poultry industry. 3. Operational Staff  Male, at least 20-35 years old.  At least high school graduate.  Must be loyal and trustworthy.  Must be responsible, industrious and hard worker.  Is knowledgeable about poultry industry. 4. Operational Staff/Driver  Male, at least 20-35 years old.  At least high school graduate. Must have a driver’s license.  Proficient in driving and repairing of delivery truck.  Must be loyal and trustworthy.  Must be responsible, industrious and hard worker.  Is knowledgeable about poultry industry.
  31. 31. St. Anthony’s College San Jose de Buenavista, Antique 31 E. Compensation Package The business will give the following compensation package for its employees: Position Monthly Wages SSS Philhealt h Net Pay per Month Net Annual Salary Owner/ Manager P7,440.00 P552.50 P87.50 P8,080.00 P96,960.00 Caretaker/ Maintenance 5,520.00 405.20 87.50 6,012.70 72,152.40 Operational Staff 6,000.00 442.00 87.50 6,529.50 78,354.00 Operational Staff/Driver 6,720.00 478.80 87.50 7,286.30 87,435.60 TOTAL P25, 680 P1,878.50 P350.00 P27,908.50 P334,902.00 Table 17A. Compensation Package Total Contribution – Employer Position SSS PhilHealth Total Contribution per Month Total Annual Contribution Owner/Manager P552.50 P87.50 P640.00 P7, 680.00 Caretaker/Maintenance 405.20 87.50 492.70 5, 912.40 Operational Staff 442.00 87.50 529.50 6, 354.00
  32. 32. St. Anthony’s College San Jose de Buenavista, Antique 32 Operational Staff/Driver 478.80 87.50 566.30 6, 795.60 TOTAL P1,878.50 P350.00 P2, 228.50 P26, 742.00 Table 17B. Total Contribution - Employer
  33. 33. St. Anthony’s College San Jose de Buenavista, Antique FINANCIAL ASPECT 33 A. Basic Financial Assumptions 1. Selling price of dress chicken and its by-product will increase annually by 5% (Philippine Statistics Authority, Antique). 2. Annual growth is 8% (Philippine Statistics Authority). 3. The total project cost is P810,000 pesos only. 4. Depreciation expense is computed using Straight-line Method. 5. The source of financing will be 25% bank loan and 75% owner contribution. 6. The collateral for the loan in the bank is the land title of the owner. 7. Utilities and office supplies will increase at 4.68% every year (Philippine Statistics Authority). 8. Feeds and vaccine consumption will increase at 4.68% every year (Philippine Statistics Authority). 9. Mortality rate is 2% every batch (Department of Agriculture). 10. Working capital period is 3 months. B. Total Project Cost Property, Plant and Equipment (Schedule 3) P 583,978.00 Working Capital (Schedule 4) 218,370.00 Pre-Operating Cost (Schedule 5) 7,652.00 TOTAL P 810,000.00
  34. 34. St. Anthony’s College San Jose de Buenavista, Antique 34 C. Source of Financing Debt (Bank Loan) 25% P 205,000.00 Equity Contribution 75% Noncash (Exhibit 22) P 400,000.00 Cash 205,000.00 605,000.00 TOTAL P 810,000.00 Source of Financing Description Debt The 25% of the fund will be obtained from the agricultural loan from Land Bank of the Philippines in which the land of the owner will serve as a collateral. The term of loan is 5 years diminishing balance with interest of 8%. Equity The 75% of the fund will be funded by the owner . It is composed of a delivery vehicle amounting to P150,000, land costing P250,000 and cash of P205,000. Table 18. Description of Source of Financing
  35. 35. St. Anthony’s College San Jose de Buenavista, Antique 35 D. Projected Financial Statements Financial Statement Description Income Statement Formal statement showing the financial performance of an entity for a period of time Statement of Financial Position Formal statement showing the economic resources, liquidity, solvency, financial structure and capacity for adaptation of an entity Statement of Cash Flow Formal statement which provides information about the cash receipts and cash payments of an entity during a period Table 19. Description of Financial Statements
  36. 36. St. Anthony’s College San Jose de Buenavista, Antique CHIC 'N POULTRY BUSINESS Projected Income Statement For the Year Ended Dec. 31, xxxx Year 1 Year 2 Year 3 Year 4 Year 5 Sales (Schedule 6) P1,279,488 P1,583,586 P1,787,871 P2,099,820 P2,306,356 Cost of Sales (Schedule 7) 962,537 1,073,167 1,140,582 1,246,339 1,347,706 Gross Profit 316,951 510,419 647,288 853,482 958,650 Less: Selling and Administrative Expenses (Schedule 8) 71,895 73,370 73,868 74,390 74,935 Earnings Before Interest and Taxes 245,056 437,049 573,420 779,092 883,715 Less: Interest Expense (Schedule 9) 16,400 13,120 9,840 6,560 3,280 Earnings Before Taxes 228,656 423,929 563,580 772,532 880,435 Less: Income Taxes (Schedule 10) 32,164 87,179 219,074 212,210 246,739 Net Income P196,492 P336,750 P344,506 P 560,322 P633,696 36
  37. 37. St. Anthony’s College San Jose de Buenavista, Antique CHIC N' POULTRY BUSINESS Statement of Financial Position For the Year Ended Dec. 31, xxxx Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 37 ASSETS Current Assets Cash P218,370 P382,150 P713,939 P1,052,963 P1,607,244 P2,234,230 Inventory (Schedule 11) 31,843 35,935 40,548 45,740 51,560 Total Current Assets 218,370 413,993 749,874 1,093,511 1,652,964 2,285,790 Noncurrent Assets Property, Plant and Equipment (Schedule 3) 583,978 570,378 556,777 543,177 529,576 515,976 Other Assets Pre-Operating Costs (Exhibit 31) 7,652 6,122 4,591 3,061 1,530 - TOTAL ASSETS P810,000 P990,492 P1,311,243 P1,639,749 P2,184,070 P2,801,766
  38. 38. St. Anthony’s College San Jose de Buenavista, Antique 38 LIABILITIES AND OWNER'S EQUITY Long-term Liabilities Loan Payable (Schedule 9) 205,000 164,000 123,000 82,000 41,000 - Owner's equity Capital (Schedule 12) 605,000 630,000 655,000 680,000 705,000 730,000 Accumulated Earnings (Net Income) 196,492 533,243 877,749 1,438,070 2,071,766 TOTAL LIABILITIES AND OWNER'S EQUITY P810,000 P990,492 P1,311,243 P1,639,749 P2,184,070 P2,801,766
  39. 39. St. Anthony’s College San Jose de Buenavista, Antique CHIC N' POULTRY BUSINESS Cash Flow Statement For the Year Ended Dec. 31, xxxx Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow from Operating Activities Net Income P196,492 P336,750 P344,506 P560,322 P633,696 Add/Less Adjustments: Increase in inventory -31,843 -4,092 -4,613 -5,191 -5,821 Depreciation-Building (Exhibit 30) 8,081 8,081 8,081 8,081 8,081 Depreciation-Equipment (Exhibit 27) 11,660 11,660 11,660 11,660 11,660 Depreciation-Furniture (Exhibit 28) 3,860 3,860 3,860 3,860 3,860 Depreciation-Delivery Vehicle (Exhibit 29) 15,000 15,000 15,000 15,000 15,000 Amortization of Pre-Operating Costs (Exhibit 31) 1,530 1,530 1,530 1,530 1,530 Net increase (decrease) in cash from operating activities 0 204,780 372,789 380,024 595,261 668,005 39 Cash Flow from Investing Activities Building (Exhibit 6) -80,809 Purchase of Equipment (Exhibit 7) -83,870 Purchase of Furniture & Fixtures (Exhibit 8) -19,299 Pre-Operating Costs (Schedule 5) -7,652 Net increase (decrease) in cash from investing activities -191,630 0 0 0 0 0
  40. 40. St. Anthony’s College San Jose de Buenavista, Antique 40 Cash flow from Financing Activities Loan Release (Schedule 9) 205,000 Annual Payment of Principal (Schedule 9) -41,000 -41,000 -41,000 -41,000 -41,000 Capital Contribution in Cash 205,000 Net increase (decrease) in cash from financing activities 410,000 -41,000 -41,000 -41,000 -41,000 -41,000 NET CASH FLOW 218,370 163,780 331,789 339,024 554,261 627,005 Add: Beginning Cash Balance 0 218,370 382,150 713,939 1,052,963 1,607,224 Cash Ending Balance 218,370 382,150 713,939 1,052,963 1,607,224 2,234,230
  41. 41. St. Anthony’s College San Jose de Buenavista, Antique 41 E. Financial Evaluation a. Net Present Value NPV is the excess of the present values of a project’s inflows over the amount of the investment. It provides an absolute measure of a project’s worth because it measures the total present value of the present return. The project is accepted if the NPV is equal or greater than zero; otherwise, reject. If the project is positive, the entity will earn a return equal to or greater than its cost of capital. Financial evaluation shows that the net present value of the project after 5 years is P 1,004,720. Cost of capital is 6%* Cash Inflow PV of 1 at 6% Present Value Year 1 P204,780 0.94 P193,188 Year 2 372,789 0.89 331,781 Year 3 380,024 0.84 319,075 Year 4 595,261 0.79 471,503 Year 5 668,005 0.75 499,173 Total 1,814,720 Less: Investment 810,000 Net Present Value P1,004,720 Table 20A. Net Present Value Computation Calculation for Cost of Capital Cost of Capital Proportion WACC Debt 8% 25% 2% Equity 5% 75% 4% Total 6% Table 20B. Cost of Capital Computation
  42. 42. St. Anthony’s College San Jose de Buenavista, Antique 42 b. Internal Rate of Return It is also known as discounted rate of return. It is a time adjusted rate of return which equates the present value of the future cash inflows with the cost of investment which produces them. If the project’s IRR is greater than the cost of capital, then accept the project; if not, reject. The IRR of the project is 46.87% which is higher than the 6% cost of capital. Cash Inflow Year 1 P204,780 Year 2 372,789 Year 3 380,024 Year 4 595,261 Year 5 668,005 Total 2,220,860 Divide by 5 years 5 Average Cash Return P444,172 Table 21A.Average Cash Return Computation PV Factor: Investment 810,000 Divide by Average Cash Return 444,172 Total 1.823618 Table 21B. Present Value Factor Computation Interpolation Method IRR= 45% + 5%(.051909/.138901) 45% 1.875527 45% + 0.018686 0.051909 IRR= 46.87% ? 1.823618 0.138901 50% 1.736626 Table 21C. Internal Rate of Return Computation
  43. 43. St. Anthony’s College San Jose de Buenavista, Antique 43 c. Accounting Rate of Return ARR is also called simple rate of return which measures the project’s profitability from a conventional accounting standpoint by relating the required investment to the future annual net income. Under this method, a project is accepted if the ARR is greater than the cost of capital but reject if it is less than the required rate of return. The accounting rate of return is 12.13%, 32.92%, 42.05%, 55.85% and 73.70% respectively for five years. The project is profitable based on the financial evaluation. Net Income Average Net Income Divided by Investment ARR Year 1 P196,492 P98,246 P810,000 12.13% Year 2 336,750 266,621 810,000 32.92% Year 3 344,506 340,628 810,000 42.05% Year 4 560,322 452,414 810,000 55.85% Year 5 633,696 597,009 810,000 73.70% Table 22. Accounting Rate of Return Computation d. Profitability Index It is known as beneficial/cost ratio present value desirability index. It is the ratio of the total present value of future cash inflow divided by its investme nt. This method is used as a means of ranking projects in a descending order of desirability. The project with PV Index of one or greater than one is accepted
  44. 44. St. Anthony’s College San Jose de Buenavista, Antique because it maintains and enhances the wealth of the owners as reflected in the share price of the firm’s common stock. If the project is less than one, reject. The profitability index of the project based on the financial evaluation is 2.24 .This project is acceptable because it can maintain or enhance the wealth 44 of the owner. Profitability Index = PV of Cash Inflows/ Net Investment = P 1,814,720/810,000 = 2.24 Table 23. Profitability Index Computation e. Payback Period This method refers to the length of time before investment is recovered. It is the time where the cumulative cash inflows is equal to the cost of investme nt. If the payback period is less than or equal to the maximum allowed payback period by the management, accept; otherwise, reject. Thus, the more quickly the cost of an investment can be recovered, the more desirable is the investme nt. The project financial evaluation regarding payback period showed 2.61 years. This means that the project cost could be recovered in less than 5 years. The project is acceptable and a desirable investment.
  45. 45. St. Anthony’s College San Jose de Buenavista, Antique 45 Initial Capital Cash Inflow Cumulative cash Inflow Outstanding Balance Payback Period Years Year 0 810,000 Year 1 204,780 204,780 605,220 1 Year 2 372,789 577,569 232,431 1 Year 3 380,024 957,593 0.61 Year 4 595,261 1,552,854 Year 5 668,005 2,220,860 2.61 Table 24. Payback Period Computation
  46. 46. St. Anthony’s College San Jose de Buenavista, Antique 46 f. Break-even Analysis It is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. Once the break-even point has been reached, the net operating income will increase by the amount of the unit contribution margin for each additional unit sold. Year 1 Year 2 Year 3 Year 4 Year 5 Sales Php 1,279,488 100.00% Php 1,583,586 100.00% Php 1,787,871 100.00% Php 2,099,820 100.00% Php 2,306,356 100.00% Cost of Sales Php 962,537 75.23% Php 1,073,167 67.77% Php 1,140,582 63.80% Php 1,246,339 59.35% Php 1,347,706 58.43% Gross Profit Php 316,951 24.77% Php 510,419 32.23% Php 647,288 36.20% Php 853,482 40.65% Php 958,650 41.57% Variable Expenses (Table 25B) Php 228,549 17.86% Php 246,212 15.55% Php 251,690 14.08% Php 285,830 13.61% Php 307,789 13.35% Contribution Margin Php 88,402 6.91% Php 264,207 16.68% Php 395,598 22.13% Php 567,652 27.03% Php 650,861 28.22%
  47. 47. St. Anthony’s College San Jose de Buenavista, Antique The financial evaluation shows that the break-even point in peso for the year is P893, 494. This means that the sales for the said year should not be lower than this point to recover the fixed cost. Table 25A. Break-Even Analysis Computation Year 1 Year 2 Year 3 Year 4 Year 5 47 Variable Expenses Utilities Expense (Exhibit 18A) Php225,066 Php242,566 Php247,873 Php281,835 Php303,607 Miscellaneous and Supplies (Exhibit 17A) Php3,483 Php3,646 Php3,817 Php3,995 Php4,182 TOTAL Php228,549 Php246,212 Php251,690 Php285,830 Php307,789 Table 25B. Variable Expenses Computation Fixed Expense (Table 25C) Php 61,733 Php 62,733 Php 62,733 Php 62,733 Php 62,733 Divided by: CM Ratio 6.91% 16.68% 22.13% 27.03% 28.22% Break-Even in Pesos Php 893,494 Php 376,004 Php 283,516 Php 232,058 Php 222,297
  48. 48. St. Anthony’s College San Jose de Buenavista, Antique Year 1 Year 2 Year 3 Year 4 Year 5 48 Fixed Expenses Selling Expenses (Exhibit 26) P11,000 P12,000 P12,000 P12,000 P12,000 Depreciation – Equipment (Exhibit 27) 11,660 11,660 11,660 11,660 11,660 Depreciation – Furniture (Exhibit 28) 3,860 3,860 3,860 3,860 3,860 Depreciation – Delivery Vehicle (Exhibit 29) 15,000 15,000 15,000 15,000 15,000 Depreciation – Building (Exhibit 30) 8,081 8,081 8,081 8,081 8,081 Amortization of Pre-Operating Costs (Exhibit 31) 1,530 1,530 1,530 1,530 1,530 Repairs and Maintenance (Schedule 8) 2,000 2,000 2,000 2,000 2,000 Permits and Licenses (Exhibit 21) 3,602 3,602 3,602 3,602 3,602 Other Expenses 5,000 5,000 5,000 5,000 5,000 TOTAL P61,733 P62,733 P62,733 P62,733 P62,733 Table 25C. Fixed Expenses Computation
  49. 49. St. Anthony’s College San Jose de Buenavista, Antique 49 g. Return on Investment ROI is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of differe nt investments. The higher the return on ROI of a project, the greater the profit earned per peso invested in the operating assets. The return on investment of the project for the first year is 24.26%. This means that there is high profit earned per peso invested in the project. Net Income Per Year Year 1 196,492 24.26% Year 2 336,750 41.57% Year 3 344,506 42.53% Year 4 560,322 69.18% Year 5 633,696 78.23% Total 2,071,766 Divide by 5 years 5 Average net Income 414,353 Divide by project Cost 810,000 ROI 51.15% Table 26. Return on Investment Computation
  50. 50. St. Anthony’s College San Jose de Buenavista, Antique SOCIO-ECONOMIC ASPECT 50 A. Government Benefits The Government will benefit on the taxes and permits paid by the business. These taxes and permits increased the revenue of the government. They use this fund to support its projects and expenditures for the development of the municipality as well as the whole country. B. Customers/Consumer Benefits The customers will have sufficient supply of dressed chicken and its by-products. The wholesalers and business establishments such as restaurants, meat shops, barbeque stalls, roasted chicken food stall and food catering businesses will have convenience in getting their supplies with lesser time, cost, effort and price. C. Employment Benefits The business will provide additional employment for the unemployed residence especially in the town of Bugasong.
  51. 51. St. Anthony’s College San Jose de Buenavista, Antique IMPLEMENTATION October November December January February 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Table 27. Implementation Schedule 51 Study of the project Proposal of business plan to the proponent Acceptance of the proposal by the proponent and application for loan Application for necessary permits and licenses Construction of Poultry House and Cleaning of the Area Acquisition of Equipment, Furniture and Supplies Hiring of Personnel Start of Promotional Activities Acquisition of Feeds and Vaccines and Final Set up of the Poultry Farm Commencement of the Project Start of selling products in the market
  52. 52. St. Anthony’s College San Jose de Buenavista, Antique Study of the project will begin from the first week up to the second week of October in order to ensure its feasibility. Also during the second week of October, the proposed business plan will be discussed to the proponent. Then acceptance of the proposal by the proponent and application for loan will be made on the third week of October. On the last week of the month, application for necessary permits and licenses will be prepared. Construction of the Poultry house and cleaning of the area will start from the fourth week of October up to the third week of November followed by the acquisition of necessary equipment, furniture and supplies which will be done after the construction of the poultry house up to the first week of December. There will be a hiring of Personnel on the second week of December and on the third week; two months prior to the beginning of the project, the promotional activities for the business will begin. Then on the last week of December, acquisition of feeds and vaccines and final set up of the poultry farm will be made. The commencement of the project will be on the first week of January and five weeks after the start of the business, it is anticipated that product will start selling at the market. 52
  53. 53. St. Anthony’s College San Jose de Buenavista, Antique CONCLUSION The proposed project is feasible because the results of the study are in conformity with the objectives of the project which is to promote convenient distribution of dressed chicken and its by-products for consumers’ consumption, retailers and other food establishments to satisfactorily avail their needs. In the socio-economic and environmental impact, part of the revenue of the business will support the project of the government in the form of taxes paid; it will be also be beneficial to the hired workers of the business for the improvement of their standard of living through salaries and wages. In relation to its technical and operational aspects, an encouraging result is obtain. The business is located in a proper place for raising chicks. The workers employed are also qualified and the equipment used are modernized. In respect to its organization and management aspect it shows sign of positivity. The proponent’s interest is in the field of business, thus, it is a sign that she can handle the proposed business well. The business will be easily managed and supervised by the owner since she will only hire three workers to help her in the daily operation of the business. The financial aspect also shows a positive result, the first five years of operation is expected to generate enough revenue to cover all the expenses incurred and at the same time generate profit for the owner. The proposed business will be able to fully return the initial investment within 2.61 years. To sum it all, based on the analysis and the results of the data gathered, putting up Chic’N Poultry in Sabang West, Bugasong, Antique is favorable. 53
  54. 54. St. Anthony’s College San Jose de Buenavista, Antique RECOMMENDATION The researchers of this feasibility study recommend that the business can opt to use a credit system in the sales transaction, in addition to the cash basis system currently used. Moreover, if the business becomes profitable and the proponent wants to continue the operations of the business after five years, she can decide to reconstruct the building from using light materials into concrete in order that the structure will be usable for a longer period and for a more efficient and suitable place for operation. Lastly, as the business grows, the manager can hire employees in addition to the existing staff for a more effective operation. These include the operational staff and 54 caretaker/maintenance.
  55. 55. St. Anthony’s College San Jose de Buenavista, Antique 55 ANNEX SCHEDULES Schedule 1A - Demand per Week (kilos) Minimum Maximum 1 to 5 2 5.71% 2 10 6-10 7 20.00% 42 70 11-15 11 31.43% 121 165 16-20 2 5.71% 32 40 21-25 1 2.86% 21 25 Others(please specify) 12 34.29% 2,208 2,208 Total 35 100.00% 2,426 2,518 TOTAL 2,472 Schedule 1B – Demand and Supply per Week and Unmet Demand (kilos) Total demand by consumer per week (Schedule 1A) 2,472 Total supply by the competitors per week: Magnolia Chynn-Chynn’s Store 366 731 Less: Total Supply per week 1097 Total Unmet Demand 1375 Market Share 12% x 12% Total Captured Market per Week 165
  56. 56. St. Anthony’s College San Jose de Buenavista, Antique 56 Assumptions: Regular sales is 150 heads or 165 kilos. There will be additional 100 heads sold during local fiestas –March, April, May- by 167%(Philippine Statistical Authority). Annual growth rate is 8% and inflation rate is 5% per year. The prices per year is presented in Exhibit 1. Schedule 2A.a– Sales Projection of Dressed Chicken (Year 1) TOTAL SALES: P1,085,007 Month Week No. of Heads Procured Mortality (2%per batch) No. of Heads for Disposal Ave. Weight per Head (Kilo) Price per Kilo Total Sales per Week January 1 150 3 2 150 3 3 150 3 4 250 5 February 1 150 3 2 150 3 147 1.1 P120 P19,404 3 150 3 147 1.1 120 19,404 4 250 5 147 1.1 120 19,404 March 1 250 5 245 1.1 130 35,035 2 250 5 147 1.1 120 19,404 3 250 5 147 1.1 120 19,404 4 250 5 147 1.1 120 19,404 April 1 250 5 245 1.1 130 35,035 2 250 5 245 1.1 130 35,035 3 250 5 245 1.1 130 35,035 4 150 3 245 1.1 130 35,035 May 1 150 3 245 1.1 130 35,035 2 150 3 245 1.1 130 35,035 3 150 3 245 1.1 130 35,035 4 150 3 245 1.1 130 35,035 June 1 150 3 147 1.1 120 19,404 2 150 3 147 1.1 120 19,404 3 150 3 147 1.1 120 19,404 4 150 3 147 1.1 120 19,404
  57. 57. St. Anthony’s College San Jose de Buenavista, Antique July 1 150 3 147 1.1 120 19,404 2 150 3 147 1.1 120 19,404 3 150 3 147 1.1 120 19,404 4 150 3 147 1.1 120 19,404 August 1 150 3 147 1.1 120 19,404 2 150 3 147 1.1 120 19,404 3 150 3 147 1.1 120 19,404 4 150 3 147 1.1 120 19,404 September 1 150 3 147 1.1 120 19,404 2 150 3 147 1.1 120 19,404 3 150 3 147 1.1 120 19,404 4 150 3 147 1.1 120 19,404 October 1 150 3 147 1.1 120 19,404 2 150 3 147 1.1 120 19,404 3 150 3 147 1.1 120 19,404 4 150 3 147 1.1 120 19,404 November 1 400 8 147 1.1 120 19,404 2 400 8 147 1.1 120 19,404 3 400 8 147 1.1 120 19,404 4 162 3 147 1.1 120 19,404 December 1 162 3 147 1.1 120 19,404 2 162 3 392 1.1 130 56,056 3 162 3 392 1.1 130 56,056 4 162 3 392 1.1 130 56,056 TOTAL 8,910 178 7,938 P1,085,007 Schedule 2A.b– Sales Projection of Dressed Chicken (Year 2) 57 TOTAL SALES: P1,342,593 Month Week No. of Heads Procured Mortality (2%) No. of Heads for Disposal Ave. Weight per Head (Kilo) Price per Kilo Total Sales per Week January 1 162 3 159 1.1 P126 P22,037 2 162 3 159 1.1 126 22,037 3 162 3 159 1.1 126 22,037 4 270 5 159 1.1 126 22,037 February 1 162 3 159 1.1 126 22,037 2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22,004
  58. 58. St. Anthony’s College San Jose de Buenavista, Antique 4 270 5 159 1.1 126 22,004 March 1 270 5 265 1.1 137 39,875 2 270 5 159 1.1 126 22,004 3 270 5 159 1.1 126 22,004 4 270 5 159 1.1 126 22,004 April 1 270 5 265 1.1 137 39,875 2 270 5 265 1.1 137 39,875 3 270 5 265 1.1 137 39,875 4 162 3 265 1.1 137 39,875 May 1 162 3 265 1.1 137 39,875 2 162 3 265 1.1 137 39,875 3 162 3 265 1.1 137 39,875 4 162 3 265 1.1 137 39,875 June 1 162 3 159 1.1 126 22,004 2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22,004 4 162 3 159 1.1 126 22,004 July 1 162 3 159 1.1 126 22,004 2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22,004 4 162 3 159 1.1 126 22,004 August 1 162 3 159 1.1 126 22,004 2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22,004 4 162 3 159 1.1 126 22,004 September 1 162 3 159 1.1 126 22,004 2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22004 4 162 3 159 1.1 126 22,004 October 1 162 3 159 1.1 126 22,004 2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22,004 4 162 3 159 1.1 126 22004 November 1 432 9 159 1.1 126 22,004 2 432 9 159 1.1 126 22,004 3 432 9 159 1.1 126 22,004 4 175 4 159 1.1 126 22,004 December 1 175 4 159 1.1 126 22,004 2 175 4 423 1.1 137 63,800 3 175 4 423 1.1 137 63,800 4 175 4 423 1.1 137 63,800 TOTAL 9,623 192 9,368 P1,342,593 58
  59. 59. St. Anthony’s College San Jose de Buenavista, Antique Schedule 2A.c– Sales Projection of Dressed Chicken (Year 3) 59 TOTAL SALES: P1,514,938 Month Week No. of Heads Procured Mortality (2%) No. of Heads for Disposal Ave. Weight per Head (Kilo) Price per Kilo Total Sales per Week January 1 175 4 171 1.1 P132 P24,829 2 175 4 171 1.1 132 24,829 3 175 4 171 1.1 132 24,829 4 292 6 171 1.1 132 24,829 February 1 175 4 171 1.1 132 24,829 2 175 4 171 1.1 132 24,829 3 175 4 171 1.1 132 24,829 4 292 6 171 1.1 132 24,829 March 1 292 6 286 1.1 143 45,013 2 292 6 171 1.1 132 24,829 3 292 6 171 1.1 132 24,829 4 292 6 171 1.1 132 24,829 April 1 292 6 286 1.1 143 45,013 2 292 6 286 1.1 143 45,013 3 292 6 286 1.1 143 45,013 4 175 4 286 1.1 143 45,013 May 1 175 4 286 1.1 143 45,013 2 175 4 286 1.1 143 45,013 3 175 4 286 1.1 143 45,013 4 175 4 286 1.1 143 45,013 June 1 175 4 171 1.1 132 24,829 2 175 4 171 1.1 132 24,829 3 175 4 171 1.1 132 24,829 4 175 4 171 1.1 132 24,829 July 1 175 4 171 1.1 132 24,829 2 175 4 171 1.1 132 24,829 3 175 4 171 1.1 132 24,829 4 175 4 171 1.1 132 24,829 August 1 175 4 171 1.1 132 24,829 2 175 4 171 1.1 132 24,829 3 175 4 171 1.1 132 24,829 4 175 4 171 1.1 132 24,829 September 1 175 4 171 1.1 132 24,829 2 175 4 171 1.1 132 24,829 3 175 4 171 1.1 132 24,829 4 175 4 171 1.1 132 24,829
  60. 60. St. Anthony’s College San Jose de Buenavista, Antique October 1 175 4 171 1.1 132 24,829 2 175 4 171 1.1 132 24829 3 175 4 171 1.1 132 24,829 4 175 4 171 1.1 132 24,829 November 1 467 9 171 1.1 132 24,829 2 467 9 171 1.1 132 24,829 3 467 9 171 1.1 132 24,829 4 189 4 171 1.1 132 24,829 December 1 189 4 171 1.1 132 24,829 2 189 4 458 1.1 143 71,990 3 189 4 458 1.1 143 71,990 4 189 4 458 1.1 143 71,990 TOTAL 10,399 208 10,104 P1,514,938 Schedule 2A.d– Sales Projection of Dressed Chicken (Year 4) 60 TOTAL SALES: P1,789,854 Month Week No. of Heads Procured Mortality (2%) No. of Heads for Disposal Weight per Head (kilo) Price per Kilo Total Sales per Week January 1 189 4 185 1.1 P139 P28,287 2 189 4 185 1.1 139 28,287 3 189 4 185 1.1 139 28,287 4 315 6 185 1.1 139 28,287 February 1 189 4 185 1.1 139 28,287 2 189 4 185 1.1 150 30,561 3 189 4 185 1.1 150 30,561 4 315 6 185 1.1 150 30,561 March 1 315 6 309 1.1 150 50,936 2 315 6 185 1.1 150 30,561 3 315 6 185 1.1 150 30,561 4 315 6 185 1.1 150 30,561 April 1 315 6 309 1.1 150 50,936 2 315 6 309 1.1 150 50,985 3 315 6 309 1.1 150 50,985 4 189 4 309 1.1 150 50,985 May 1 189 4 309 1.1 150 50,985 2 189 4 309 1.1 150 50,985 3 189 4 309 1.1 150 50,985 4 189 4 309 1.1 150 50,985 June 1 189 4 185 1.1 139 28,287
  61. 61. St. Anthony’s College San Jose de Buenavista, Antique 2 189 4 185 1.1 150 30,561 3 189 4 185 1.1 150 30,561 4 189 4 185 1.1 150 30,561 July 1 189 4 185 1.1 150 30,561 2 189 4 185 1.1 150 30,561 3 189 4 185 1.1 150 30561 4 189 4 185 1.1 150 30,561 August 1 189 4 185 1.1 150 30,561 2 189 4 185 1.1 150 30,561 3 189 4 185 1.1 150 30,561 4 189 4 185 1.1 150 30,561 September 1 189 4 185 1.1 150 30,561 2 189 4 185 1.1 150 30,561 3 189 4 185 1.1 150 30,561 4 189 4 185 1.1 150 30,561 October 1 189 4 185 1.1 150 30,561 2 189 4 185 1.1 150 30,561 3 189 4 185 1.1 150 30,561 4 189 4 185 1.1 150 30,561 November 1 504 10 185 1.1 150 30,561 2 504 10 185 1.1 150 30,561 3 504 10 185 1.1 150 30,561 4 204 4 185 1.1 150 30,561 December 1 204 4 185 1.1 150 30,561 2 204 4 494 1.1 150 81,510 3 204 4 494 1.1 150 81,510 4 204 4 494 1.1 150 81,510 TOTAL 11,226 225 10,929 P1,789,854 Schedule 2A.e– Sales Projection of Dressed Chicken (Year 5) 61 TOTAL SALES: P1,955,082 Month Week No. of Heads Procured Mortality (2%) No. of Heads for Disposal Weigh t per Head (Kilo) Price per Kilo Total Sales per Week January 1 204 4 200 1.1 P146 P32,120 2 204 4 200 1.1 146 32,120 3 204 4 200 1.1 146 32,120 4 340 7 200 1.1 146 32,120 February 1 204 4 200 1.1 146 32,120 2 204 4 200 1.1 146 32,107 3 204 4 200 1.1 146 32,107
  62. 62. St. Anthony’s College San Jose de Buenavista, Antique 4 340 7 200 1.1 146 32,107 March 1 340 7 333 1.1 158 57,910 2 340 7 200 1.1 146 32,107 3 340 7 200 1.1 146 32,107 4 340 7 200 1.1 146 32,107 April 1 340 7 333 1.1 158 57,910 2 340 7 333 1.1 158 57,910 3 340 7 333 1.1 158 57,910 4 204 4 333 1.1 158 57,910 May 1 204 4 333 1.1 158 57,910 2 204 4 333 1.1 158 57,910 3 204 4 333 1.1 158 57,910 4 204 4 333 1.1 158 57,910 June 1 204 4 200 1.1 146 32,107 2 204 4 200 1.1 146 32,107 3 204 4 200 1.1 146 32,107 4 204 4 200 1.1 146 32,107 July 1 204 4 200 1.1 146 32,107 2 204 4 200 1.1 146 32,107 3 204 4 200 1.1 146 32,107 4 204 4 200 1.1 146 32,107 August 1 204 4 200 1.1 146 32,107 2 204 4 200 1.1 146 32,107 3 204 4 200 1.1 146 32,107 4 204 4 200 1.1 146 32,107 September 1 204 4 200 1.1 146 32,107 2 204 4 200 1.1 146 32,107 3 204 4 200 1.1 146 32,107 4 204 4 200 1.1 146 32,107 October 1 204 4 200 1.1 146 32,107 2 204 4 200 1.1 146 32,107 3 204 4 200 1.1 146 32,107 4 204 4 200 1.1 146 32,107 November 1 544 11 200 1.1 146 32,107 2 544 11 200 1.1 146 32,107 3 544 11 200 1.1 146 32,107 4 220 4 200 1.1 146 32,107 December 1 220 4 200 1.1 146 32,107 2 220 4 533 1.1 158 92,656 3 220 4 533 1.1 158 92,656 4 220 4 533 1.1 158 92,656 TOTAL 12,116 242 11,796 P1,955,082 62
  63. 63. St. Anthony’s College San Jose de Buenavista, Antique Schedule 2B.a– Sales Projection of By-Products (Year 1) No. of Heads Sold Ave. Weight in every head(Kilos) Total Kilos Yield for the Year Intestines 7,938 0.15 1,190.7 P50 P59,535 Liver 7,938 0.05 396.9 90 35,721 Feet 7,938 0.05 396.9 60 23,814 Head 7,938 0.05 396.9 40 15,876 Neck 7,938 0.05 396.9 70 27,783 Gizzard 7,938 0.05 396.9 80 31,752 TOTAL 47,628 0.40 3,175.2 194,481 Schedule 2B.b– Sales Projection of By-Products (Year 2) 63 No. of Heads Sold Ave. Weight in every head (Kilos) Total Kilos Yield for the Year Price per Kilo Sales Price per Kilo Sales Intestines 9,368 0.15 1,405.21 P52.50 P73,773.32 Liver 9,368 0.05 468.402 94.50 44,263.99 Feet 9,368 0.05 468.402 63.00 29,509.33 Head 9,368 0.05 468.402 42.00 19,672.88 Neck 9,368 0.05 468.402 73.50 34,427.55 Gizzard 9,368 0.05 468.402 84.00 39,345.77 TOTAL 66,208 0.40 3,747.22 P240,992.80
  64. 64. St. Anthony’s College San Jose de Buenavista, Antique Schedule 2B.c– Sales Projection of By-Products (Year 3) 64 No. of Heads Sold Ave. Weight (Kilos) Total Kilos Yield for the Year Price per Kilo Sales Intestines 10,104 0.15 1,515.66 P55.125 P83,550.92 Liver 10,104 0.05 505.221 99.225 50,130.55 Feet 10,104 0.05 505.221 66.150 33,420.37 Head 10,104 0.05 505.221 44.100 22,280.25 Neck 10,104 0.05 505.221 77.175 38,990.43 Gizzard 10,104 0.05 505.221 88.200 44,560.49 TOTAL 60,624 0.40 4,041.77 P272,933.00 Schedule 2B.d– Sales Projection of By-Products (Year 4) No. of Heads Sold Ave. Weight (Kilos) Total Kilos Yield for the Year Price per Kilo Sales Intestines 10,929 0.15 1,639.35 P57.88125 P94,887.63 Liver 10,929 0.05 546.45 104.18630 56,932.58 Feet 10,929 0.05 546.45 69.45750 37,955.05 Head 10,929 0.05 546.45 46.30500 25,303.37 Neck 10,929 0.05 546.45 81.03375 44,280.89 Gizzard 10,929 0.05 546.45 92.61000 50,606.73 TOTAL 65,574 0.40 4,371.60 P309,966.20
  65. 65. St. Anthony’s College San Jose de Buenavista, Antique Schedule 2B.e– Sales Projection of By-Products (Year 5) 65 No. of Heads Sold Ave. Weight (Kilos) Total Kilos Yield for the Year Price per Kilo Sales Intestines 11,796 0.15 1,769.350 P 60.77531 P107,532.90 Liver 11,796 0.05 589.784 109.3956 64,519.75 Feet 11,796 0.05 589.784 72.93038 43,013.17 Head 11,796 0.05 589.784 48.62025 28,675.45 Neck 11,796 0.05 589.784 85.08544 50,182.03 Gizzard 11,796 0.05 589.784 97.24050 57,350.89 TOTAL 70,776 0.40 4,718.27 351,274.20 Schedule 3 – Property, Plant and Equipment (5 Years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Land (Exhibit 5) 250,000 P275,000 P300,000 P325,000 P350,000 P375,000 Building (Exhibit 6) 80,809 72,728 64,647 56,566 48,485 40,405 Equipment (Exhibit 7) 83,870 72,210 60,551 48,891 37,231 25,571 Furniture and Fixture (Exhibit 8) 19,299 15,439 11,579 7,720 3,860 0 Delivery Vehicle (Exhibit 9) 150,000 135,000 120,000 105,000 90,000 75,000 TOTAL P583,978 P570,378 P556,777 P543,177 P529,576 P515,976
  66. 66. St. Anthony’s College San Jose de Buenavista, Antique Schedule 4– Working Capital (3 months) 66 Amount 2,400 heads(chicks) @ P25 (Based on Procurement-Schedule 2) P60,000 Feeds for 2400 heads: Chick Booster ( Schedule 32B ) 12,150 Broiler Starter ( Schedule 32B ) 18,000 Broiler Finisher ( Schedule 32B ) 15,000 Vaccine for 2400 heads New Castle Disease Vaccine (Exhibit 13C) 7,200 Infectious Bursai Disease Vaccine (Exhibit 13C) 9,600 Labor (Exhibit 15B.1) 77,040 Delivery Expense ( Exhibit 16B ) 3,000 Miscellaneous & Supplies Expense ( Exhibit 17B ) 2,833 Utilities (Exhibit 18C ) 13,497 TOTAL P218,370 Schedule 5 – Pre-Operating Cost Amount Feasibility Study Expense (Exhibit 19) P1,500 Technical Layout 1,500 Advertising Expense (Exhibit 20) 1,050 Permits and Licenses (Exhibit 21) 3,602 TOTAL P7,652
  67. 67. St. Anthony’s College San Jose de Buenavista, Antique Sales -By-Products (Schedule 2B) 1 P 1,085,007.00 P 194,481.00 P 1,279,488.00 2 P 1,342,593.00 P 240,993.00 P 1,583,586.00 3 P 1,514,938.00 P 272,933.00 P 1,787,871.00 4 P 1,789,854.00 P 309,966.00 P 2,099,820.00 5 P 1,955,082.00 P 351,274.00 P 2,306,356.00 67 Schedule 6 – Projected Sales (5 Years) Year Sales-Dressed Chicken (Schedule 2A) Schedule 7 – Cost of Sales (5 Years) Total Sales Year 1 Year 2 Year 3 Year 4 Year 5 Direct Materials (Exhibit 23) 403,350 495,969 557,484 628,629 707,515 Direct Labor (Exhibit 15A) 237,942 237,942 237,942 237,942 237,942 Overhead (Exhibit 24) 315,347 332,535 337,515 371,133 392,547 Total 956,639 1,066,446 1,132,940 1,237,704 1,338,003 Loss due to Death of Chicks (Exhibit 25) 5,898 6,721 7,642 8,635 9,703 TOTAL COST OF SALES P962,537 P1,073,167 P1,140,582 P1,246,339 P1,347,706
  68. 68. St. Anthony’s College San Jose de Buenavista, Antique Schedule 8 -Selling and Administrative Expenses (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 68 Selling Expense (Exhibit 26) 11000 12000 12000 12000 12000 Utilities Expense (Exhibit 18A) 6679 6991 7319 7662 8020 Miscellaneous and Supplies Expense (Exhibit 17) 3483 3646 3817 3995 4182 Depreciation Expense-Office Equipment (Exhibit 27) 11660 11660 11660 11660 11660 Depreciation Expense – Furniture (Exhibit 28) 3860 3860 3860 3860 3860 Depreciation Expense- Delivery Vehicle (Exhibit 29) 15000 15000 15000 15000 15000 Depreciation Expense- Building (Exhibit 30) 8081 8081 8081 8081 8081 Amortization of Pre-Operating cost (Exhibit 31) 1530 1530 1530 1530 1530 Repairs and Maintenance 2000 2000 2000 2000 2000 Other Expenses 5000 5000 5000 5000 5000 Permits and Licenses (Exhibit 21) 3602 3602 3602 3602 3602 Total 71895 73370 73868 74390 74935 , Schedule 9 – Interest Expense (5 Years) Year Principal Interest Total Payment Balance 0 P205,000 1 P41,000 P16,400 P57,400 164,000 2 41,000 13,120 54,120 123,000 3 41,000 9,840 50,840 82,000 4 41,000 6,560 47,560 41,000
  69. 69. St. Anthony’s College San Jose de Buenavista, Antique 5 41,000 3,280 44,280 0 Amount of Loan 205,000 Interest rate 8%, diminishing balance Term 5 years 69 Schedule 10A – Income Taxes Earnings before taxes Less: Basic Personal Exemption TAXABLE INCOME (a) (b) Tax Due (a +b) Year 1 P228,656 P50,000 178,656 22500 9664 P32,164 Year 2 423,929 50,000 373,929 50000 37179 87,179 Year 3 563,580 50,000 513,580 125000 94074 219,074 Year 4 772,532 50,000 722,532 125000 87210 212,210 Year 5 880,435 50,000 830,435 125000 121739 246,739 Schedule 10B – Graduated Tax Table Taxable Income Tax Due Not over P 10,000 5% Over P10,000 but not over P30,000 P 500 + 10% of excess over P 10,000 Over 30,000 but not over 70,000 2,500 + 15% of excess over P 30,000
  70. 70. St. Anthony’s College San Jose de Buenavista, Antique Over 70,000 but not over 140,000 8,500 + 20% of excess over P 70,000 Over 140,000 but not over 250,000 22,500 + 25% of excess over P 140,000 Over 250,000 but not over 500,000 50,000 + 30% of excess over P 250,000 Over 500,00 125,000 + 32% of excess over P 500,000 70 Schedule 11A– Inventory (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 Chicks on hand (Schedule 11B) 810 875 945 1,020 1,100 Multiply by: Cost per Head P25 P26 P28 P29 P30 Total 20,250 22,969 26,044 29,519 33,429 Feeds Chick booster (Schedule 11B) 4,101 4,637 5,242 5,923 6,687 Broiler starter (Schedule 11B) 3,645 4,122 4,660 5,265 5,944 Broiler Finisher (Schedule 11B) 1,013 1,145 1,294 1,463 1,651 Vaccine New Castle Disease (NCD Vaccine) (No. of Heads x 1.5) 1,215 1,312.50 1,417.5 1,530 1,650 Infectious Bursai Disease Vaccine (No. of Heads x 2) 1,620 1,750 1,890 2,040 2,200 TOTAL P31,843 P35,935 P40,548 P45,740 P51,560
  71. 71. St. Anthony’s College San Jose de Buenavista, Antique Schedule 11B – Chicks on Hand (Inventory for 5 Years) Year 1 71 Week No. of Heads Chick Booster Broiler Starter Broiler Finisher November 4 162 P820 P1,215 P1,013 December 1 162 820 1,215 2 162 820 1,215 3 162 820 4 162 820 TOTAL 810 P4,101 P3,645 P1,013 Year 2 Week No. of Heads Chick Booster Broiler Starter Broiler Finisher November 4 175 P927 P1,374 P1,145 December 1 175 927 1,374 2 175 927 1,374 3 175 927 4 175 927 TOTAL 875 P4,637 P4,122 P1,145 Year 3 Week No. of Heads Chick Booster Broiler Starter Broiler Finisher November 4 189 P1,048 P1,553 P1,294 December 1 189 1,048 1,553 2 189 1,048 1,553 3 189 1,048 4 189 1,048 TOTAL 945 P5,242 P4,660 P1,294 Year 4 Week No. of Heads Chick Booster Broiler Starter Broiler Finisher November 4 204 P1,185 P1,755 P1,463 December 1 204 1,185 1,755 2 204 1,185 1,755 3 204 1,185
  72. 72. St. Anthony’s College San Jose de Buenavista, Antique 4 204 1,185 TOTAL 1,020 P5,923 P5,265 P1,463 Year 5 72 Week No. of Heads Chick Booster Broiler Starter Broiler Finisher November 4 220 P1,337 P1,981 P1,651 December 1 220 1,337 1,981 2 220 1,337 1,981 3 220 1,337 4 220 1,337 TOTAL 1,100 P6,687 P5,944 P1,651 Schedule 12 – Capital (5 Years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Beginning Capital P605,000 P605,000 P630,000 P655,000 P680,000 P705,000 Increase in Capital (Due to the increase in land) 25,000 25,000 25,000 25,000 25,000 NEW CAPITAL P630,000 P655,000 P680,000 P705,000 P730,000
  73. 73. St. Anthony’s College San Jose de Buenavista, Antique EXHIBITS 73 Exhibit 1 – Price Schedule (5 years) Year 1 Year 2 Year 3 Year 4 Year 5 For regular P120 P126 P132 P139 P146 For peak season 130 137 143 150 158 Ave. Inflation rate is 5% per year (based on PSA) Exhibit 2 – Canvass of Supplies SUPPLIES GAISANO GRAND MALL OF ANTIQUE GIAN’S HERCYL’S MINI MART BANDIOLA CHARLIE ROBERT TRADING Record Book (500 pages) P105; 89 P85 Ballpen (Faber Castle) 11 12 P12 Receipt: Small Big 19.75 44 Daily Time Record Calculator: Scientific Ordinary 660 465 Folders: Long 5 4.75
  74. 74. St. Anthony’s College San Jose de Buenavista, Antique Short Stapler 78 40 White Ink: 74 Big Small 35 14 69 Yellow Pad 24.75; 29.75 50; 26.50; 16 25 Paper Clip 15 Paper Clamp 30 3; 4; 5 Broom: Soft broom Broomstick P130 Dustpan 50 Trashcan: Large Medium 750 160 Tub: Large Medium Small 260 220 160 Bucket: Medium Large(24L) 160 250 Spade P520 P450 Exhibit 3– Canvass of Furniture and Fixtures Furniture& Fixtures Gaisano Grand Mall of Antique Bandiola Plastic Goods Gella General Merchandising Rose Furniture
  75. 75. St. Anthony’s College San Jose de Buenavista, Antique 75 Monoblock Chair P350 P300 Wooden Table 3,299 P3,500 Filing Cabinet P14,500 15,000
  76. 76. St. Anthony’s College San Jose de Buenavista, Antique 76 Exhibit 4 – Canvass of Equipment Equipment Bandiola Plastic Goods Charlie Trading Gaisano Grand Mall of Antique Pacifica Agri- Vet Supplies Botika Dela Serna Olx. Com Dinglasan Furniture Robert Trading Aton Marketing He rcyl’s Minimart Susana Marketing Knives P130 (large) Weighing scale P1,980 (60 kilo) P980 (10 kilo) P930 (15 kilo) P1,129 (20 kilo) Kawa P2,900 (extra size) P1,800 (size no.1) P1,300 (size no.2)
  77. 77. St. Anthony’s College San Jose de Buenavista, Antique 77 P1,200 (size no.3) Plucker P19,000 Artificial Brooder P150 Freezer P15,000 Chopping Board P700 Waterers plastic P110 (big) P55 (small) Shovel P450 Wheel borrow P2,195 Bucket P250 Tub/Basin P260 Generator P15,000 Calculator P465 Stapler P40
  78. 78. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 5 – Land (5 years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Land P250,000 P250,000 P275,000 P300,000 P325,000 P350,000 78 Increase in Value of Land 25,000 25,000 25,000 25,000 25,000 New Value of Land P275,000 P300,000 P325,000 P350,000 P375,000 As assess by the local assessor of Bugasong Exhibit 6A– Detailed Cost of Building Expenses Amount Labor (30 days, 3 person, P150 per day) P13,500 Hallow blocks (500 blocks x P25) 12,500 Cement (10 sacks x P450) 4,500 Iron Bars 1,200 Steel thrust 5,000 Galvanize Iron 12,000 Bamboo Poles (50poles x P40) 2,000 Bamboo Sheets (30sheets x P400) 12,000 Supplies 5,000 Nipa (20pcs x P300) 6,000
  79. 79. St. Anthony’s College San Jose de Buenavista, Antique Electrical Fixtures 5,000 Food Allowance 2,109 TOTAL P80,809 79 Exhibit 6B – Cost of Building (5 Years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Building P80,809 P80,809 P80,809 P80,809 P80,809 P80,809 Less: Accumulated Depreciation (Exhibit 30) 0 8,081 16,162 24,243 32,324 40,405 Carrying Amount P80,809 P72,728 P64,647 P56,566 P48,485 P40,405 Exhibit 7 – Cost of Equipment (5 Years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Equipment (Exhibit 27) P83,870 P83,870 P83,870 P83,870 P83,870 P83,870 Less: Accumulated Depreciation (Exhibit 27) 0 11,660 23,319 34,979 46,639 58,299 Carrying Amount P83,870 P72,210 P60,551 P48,891 P37,231 P25,571
  80. 80. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 8 – Cost of Furniture and Fixtures (5 Years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 80 Furniture and Fixture (Exhibit 28) P19,299 P19,299 P19,299 P19,299 P19,299 P19,299 Less: Accumulated Depreciation (Exhibit 28) 0 3,860 7,720 11,579 15,439 P19,299 Carrying Amount P19,299 P15,439 P11,579 P7,720 P3,860 0 Exhibit 9 – Cost of Delivery Vehicle (5 Years) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Delivery Vehicle (Exhibit 29) P150,000 P150,000 P150,000 P150,000 P150,000 P150,000 Less: Accumulated Depreciation (Exhibit 29) 0 15,000 30,000 45,000 60,000 75,000 Carrying Amount P150,000 P135,000 P120,000 P105,000 P90,000 P75,000 Exhibit 10A – Cost of Chick Booster (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 No. of Heads Sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796
  81. 81. St. Anthony’s College San Jose de Buenavista, Antique Divided by Average No. of Heads per Sack (Exhibit 32) 800 800 800 800 800 Total 10 12 13 14 15 Multiply by: No. of Sacks per 800 heads (Exhibit 32) 3 3 3 3 3 Total 30 35 38 41 44 Multiply by: Cost per Sack (Exhibit 32) P1,350 P1,413 P1,479 P1,549 P1,621 TOTAL COST OF FEEDS P40,186 P49,645 P56,051 P63,465 P71,706 Exhibit 10B - Cost of Feeds Consumed (Lost Heads) Year 1 Year 2 Year 3 Year 4 Year 5 Lost Heads 175 191 208 225 242 81 Divided by: Ave. no of heads per 3 sack 800 800 800 800 800 0.22 0.24 0.26 0.28 0.30 Multiply by: No. of sacks per 800 heads 3 3 3 3 3 0.66 0.72 0.78 0.84 0.91 Multiply by Cost per sack* P1,350 P1,413 P1,479 P1,549 P1,621 Total cost of feeds consumed P886 P1,012 P1,154 P1,307 P1,471
  82. 82. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 10C – Cost of Vaccination (Lost Heads) Year 1 Year 2 Year 3 Year 4 Year 5 NCD Lost Heads 175 191 208 225 242 Average cost per head P1.50 P1.50 P1.50 P1.50 P1.50 82 TOTAL COST-NCD P263 P287 P312 P338 P363 IBD Lost Heads 175 191 208 225 242 Average cost per head P2.00 P2.00 P2.00 P2.00 P2.00 TOTAL COST-IBD P350 P382 P416 P450 P484 Exhibit 11 – Broiler Starter (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 No. of Heads Sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796 Divided by Average No. of Heads per Sack (Exhibit 32) 800 800 800 800 800 Total 10 12 13 14 15
  83. 83. St. Anthony’s College San Jose de Buenavista, Antique Multiply by: No of Sacks per 800 heads (Exhibit 32) 4 4 4 4 4 Total 40 47 51 55 59 Multiply by: Cost per Sack (Exhibit 32) P1,500 P1,570 P1,644 P1,721 P1,801 TOTAL COST OF FEEDS P59,535 P73,548 P83,039 P94,023 P106,231 83 Exhibit 12 – Broiler Finisher (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 No. of Heads Sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796 Divided by Average No. of Heads per Sack (Exhibit 32) 800 800 800 800 800 Total 10 12 13 14 15 Multiply by: No of Sacks per 800 heads (Exhibit 32) 4 4 4 4 4 Total 40 47 51 55 59 Multiply by: Cost per Sack (Exhibit 32) P1,250 P1,309 P1,370 P1,434 P1,501 TOTAL COST OF FEEDS P49,613 P61,290 P69,199 P78,352 P88,526
  84. 84. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 13A– Cost of New Castle Disease Vaccine Year 1 Year 2 Year 3 Year 4 Year 5 No. of Heads sold (Schedule 2) 7,938 9,368 9,368 10,929 11,796 Multiply by: Average cost per head (Exhibit 13B) P1.50 P1.50 P1.50 P1.50 P1.50 Multiply by: no. of times to take vaccination per heads (Exhibit 13B) 2 2 2 2 2 TOTAL P23,814 P28,104 P28,104 P32,787 P35,388 84 Exhibit 13B – Vaccination Schedule Vaccine Schedule Cost per Head New Castle Disease Vaccine Infectious Bursai Disease Vaccine 7 days old P 1.50 P 2.00
  85. 85. St. Anthony’s College San Jose de Buenavista, Antique 85 New Castle Disease Vaccine Infectious Bursai Disease Vaccine 17 days old P 1.50 P 2.00 Exhibit 13C -Schedule of Vaccine for 3 Months NCD IBD Heads sold 2,400 2,400 Multiply by: Average cost per head P1.5 P2.00 Multipy by: no. of times to take vaccination per heads 2 2 Total P7,200 P9,600 Exhibit 14 – Cost of Infectious Bursai Disease Vaccine Year 1 Year 2 Year 3 Year 4 Year 5 No. of Heads sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796 Multiply by: Average cost per head (Exhibit 13B) P2.00 P2.00 P2.00 P2.00 P2.00
  86. 86. St. Anthony’s College San Jose de Buenavista, Antique Multiply by: no. of times to take vaccination per heads (Exhibit 13B) 2 2 2 2 2 TOTAL P31,752 P37,472 P40,416 P43,716 P47,184 86 Exhibit 15A – Labor Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Direct Labor Caretaker/Maintenance Staff (Exhibit 15B) P72,152 P72,152 P72,152 P72,152 P72,152 Operational Staff (Exhibit 15B) 78,354 78,354 78,354 78,354 78,354 Operational Staff/Driver (Exhibit 15B) 87,436 87,436 87,436 87,436 87,436 Total Direct Labor 237,942 237,942 237,942 237,942 237,942 Indirect Labor 96,960 96,960 96,960 96,960 96,960
  87. 87. St. Anthony’s College San Jose de Buenavista, Antique Owner/Manager (Exhibit 15B) TOTAL P334,902 P334,902 P334,902 P334,902 P334,902 87 Exhibit 15B – Compensation Package Monthly salary SSS Philhealth Monthly Annual Owner/ Manager P7,440.00 P552.50 P87.50 P8,080.00 P96,960.00 Caretaker/ Maintenance 5,520.00 405.20 87.50 6,012.70 72,152.40 Operational Staff 6,000.00 442.00 87.50 6,529.50 78,354.00 Operational Staff/ Driver 6,720.00 478.80 87.50 7,286.30 87,435.60 TOTAL P25,680.00 P1,878.50 P350.00 P27,908.50 P334,902.00 Exhibit 15B.1 Labour for 3 Months Monthly salary Owner/Manager 7,440.00 Caretaker/Maintenance 5,520.00 Operational Staff 6,000.00 Operational Staff/Driver 6,720.00 Total 25,680.00 Multiplied by 3 Months 3 Total Labour for 3 Months 77040
  88. 88. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 16A – Delivery Schedule Cost of gasoline per scheduled delivery Amount Weekly P 250.00 Monthly P1,000.00 Exhibit 16B – Delivery Expense for 3 Months 88 Gasoline Schedule Weekly Monthly 3 Months Cost of gasoline as scheduled: 250 1000 3000 Exhibit 17A – Miscellaneous and Supplies Expense (5 Years) Unit Qua ntity Unit Cost Year 1 Year 2 Year 3 Year 4 Year 5 Folder Pieces 20 P5.00 P100 P105 P110 P115 P120 Record Book Item 5 85.00 425 445 466 488 510 Ballpen Item 10 11.00 110 115 121 126 132 Receipts Item 50 2,200 2,303 2,411 2,524 2,642 Correcti on Fluid Item 2 14.00 28 29 31 32 34 Plastic Item 1 100.00 100 105 110 115 120 Waste Can Item 1 160.00 160 167 175 184 192
  89. 89. St. Anthony’s College San Jose de Buenavista, Antique Broom Item 2 130.00 260 272 285 298 312 Dustpan Item 2 50.00 100 105 110 115 120 TOTAL P3,483 P3,646 P3,817 P3,995 P4,182 Exhibit 17B – Miscellaneous and Supplies Expense for 3 Months Unit Quantity Unit Cost Year 1 Folder Pieces 19 5.00 95 Record Book Item 3 85.00 255 Ballpen Item 9 11.00 99 Receipts Item 45 44.00 1,980 Correction Fluid Item 1 14.00 14 Plastic Item 1 100.00 100 Waste Can Item 1 160.00 160 Broom Item 1 130.00 130 Dustpan Item 1 50.00 50 TOTAL 2,883 89 Exhibit 18A – Utilities Cost (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 Water P6,000 P6,281 P6,575 P6,882 P7,205 Electricity (Exhibit 33) 212,387 229,294 233,980 267,291 288,382 For Overhead 218,387 235,575 240,555 274,173 295,587 Electricity (Exhibit 34) 691 723 757 793 830 Communication 5,988 6,268 6,562 6,869 7,190
  90. 90. St. Anthony’s College San Jose de Buenavista, Antique 90 For Administrative/operating expense 6,679 6,991 7,319 7,662 8,020 TOTAL 225,066 242,566 247,873 281,835 303,607 Exhibit 18B – Utilities Monthly Expense Utilities Monthly Usage Rate Monthly cost Supplier Water 22.72 cu. m P 22 per cu. m. P500 Bugasong Water District Electricity 328.03 kilowatt P 10.30 per kilowatt 3,378.71 ANTECO Transportation 1,000 Communication PLAN 499 Globe TOTAL P5,377.71 Exhibit 18C – Utilities Expense for Working Capital (3 months) Utilities Monthly Usage Rate Monthly cost Supplier Water 22.72 cu. m P 22 per cu. m. P500 LOWA Electricity 242.71 kilowatt P 10.30 per kilowatt 2,500 ANTECO Transportation 1,000
  91. 91. St. Anthony’s College San Jose de Buenavista, Antique Communication PLAN 499 Globe Total 4,499 multiply by 3 months 3 Total P13,497 Exhibit 19 – Feasibility Study Expense 91 Amount Research Expense P450 Transportation 550 Printing 200 Binding 300 TOTAL P1,500 Exhibit 20A– Advertising Expense Price per unit No. of Pcs. Amount Streamer 200 3 P600 Flier 1 450 450 TOTAL P1,050 Exhibit 20B – Canvass of Promotional Materials Eye Catcher Computer Shop Tres Marias Computer Shop Barte.com Boytex Printing Services Angel’s Printing Shop Streamer (2x1m) P200 P220
  92. 92. St. Anthony’s College San Jose de Buenavista, Antique 92 Flier (8.5x5.5 in) P1.00 P1.00 P2.00 Exhibit 21 – Permits and Licenses Amount Annual Registration (BIR) P500 DTI 300 Mayor's Permit 2,000 Business Clearance to Operate 30 Police Clearance 75 Sedula 22 Fire Clearance 50 Sanitary Permit 125 Environmental Compliance Certificate (DENR) 500 TOTAL P3,602 Exhibit 22 – Non Cash Equity Contribution Amount Vehicle P150,000 Land 250,000 TOTAL 400,000 Exhibit 23 – Direct Materials (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 Heads sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796
  93. 93. St. Anthony’s College San Jose de Buenavista, Antique Multiply by: Cost per Head* P25 P26 P28 P29 P30 Total 198,450 245,910 278,466 316,285 358,480 93 Feeds Chick Booster (Exhibit 10) 40,186 49,645 56,051 63,465 71,706 Broiler Starter (Exhibit 11) 59,535 73,548 83,039 94,023 106,231 Broiler finisher (Exhibit 12) 49,613 61,290 69,199 78,352 88,526 Vaccine: New Castle Disease (NCD Vaccine) (Exhibit 13) 23,814 28,104 30,312 32,787 35,388 Infectious Bursai Disease Vaccine (Exhibit 14) 31,752 37,472 40,416 43,716 47,184 TOTAL P403,350 P495,969 P557484 P628,629 P707,515 Exhibit 24 – Overhead (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 Owner/Manager (Exhibit 15A) P96,960.00 P96,960.00 P96,960.00 P96,960.00 P96,960.00 Utilities (Exhibit 18A) 218,387 235,575 240,555 274,173 295,587 TOTAL P315,347 P332,535 P337,515 P371,133 P392,547 Exhibit 25 – Mortality Schedule (5 Years)
  94. 94. St. Anthony’s College San Jose de Buenavista, Antique Year 1 Year 2 Year 3 Year 4 Year 5 Lost heads (Schedule 2) 175 191 208 225 242 Multiply by: Cost per Head* P25 P26 P28 P29 P30 Total 4,375 5,014 5,732 6,512 7,354 Feeds Chick Booster (Exhibit 10B) 886 1012 1154 1307 1471 Broiler Starter Broiler Finisher Vaccine: New Castle Disease (NCD Vaccine) 263 287 312 338 363 Infectious Bursai Disease Vaccine 350 382 416 450 484 TOTAL P5,898 P6,721 P7,642 P8,635 P9,703 94 Exhibit 26 – Selling Expense (5 Years) Year 1 Year 2 Year 3 Year 4 Year 5 Transportation 11,000* 12000 12000 12000 12000 * 11 months of delivery (P1,000 x11) Gasoline Schedule Weekly Monthly Yearly Cost of gasoline as scheduled: 250 1000 12000 Exhibit 27 – Depreciation of Equipment Equipment Total Cost Estimated Useful Life Annual Depreciation Expense Knives P390 5 P78.00
  95. 95. St. Anthony’s College San Jose de Buenavista, Antique Weighing Scale 3,960 5 792.00 Kawa 2,900 5 580.00 Plucker 19,000 10 1,900.00 Artificial Brooder 750 5 150.00 Freezer 30,000.00 7 4,285.71 Chopping Board 700.00 5 140.00 Waterers 2,750.00 5 550.00 Shovel 900.00 5 180.00 Wheel borrow 2,195.00 5 439.00 Bucket 1,250.00 5 250.00 Generator 15,000.00 10 1,500.00 Tub 2,600.00 5 520.00 Relating to Operation 82,395.00 11,364.71 Calculator 1,395.00 5 279.00 Staplers 80.00 5 16.00 Office Equipment 1,475.00 295.00 95
  96. 96. St. Anthony’s College San Jose de Buenavista, Antique TOTAL 83,870.00 11,660 Exhibit 28 – Depreciation Expense of Furniture and Fixtures 96 Furniture Total Cost Estimated Useful Life Annual Depreciation Monoblock Chair P1,500 5 P300 Wooden Table 3,299 5 660 Filing Cabinet 14,500 5 2,900 TOTAL P19,299 P3,860 Exhibit 29 – Depreciation Expense of Delivery Vehicle Total Cost Useful life Annual Depreciation Delivery Vehicle P150,000 10 P15,000 Exhibit 30 – Depreciation Expense of Building Building Total Cost Useful life Annual Depreciation Poultry house P80,809 10 P8,081
  97. 97. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 31 – Amortization of Pre-Operating Costs (5 Years) Amortization Carrying Amount Year 0 P7,652.00 Year 1 P1,530.40 6,121.60 Year 2 1,530.40 4,591.20 Year 3 1,530.40 3,060.80 Year 4 1,530.40 1,530.40 Year 5 1,530.40 0 97 Exhibit 32A – Feeding Schedule Age of chicks in days Type of feeds Consumption Cost per Sack Total Cost per 800 chicks 0-14 Chick Booster 3 sacks/800 heads P1,350.00 P 4,050.00 15-28 Broiler Starter 4 sacks/800 heads P1,500.00 P 6,000.00 29-45 Broiler Finisher 4 sacks/800 heads P1,250.00 P 5000.00
  98. 98. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 32B – Cost of feeds for 3 Months Chick Booster 98 Broiler Starter Broiler Finisher No. of Heads Sold (Schedule 2) 2,400 2,400 2,400 Divided by Average No. of Heads per Sack (Exhibit 32A) 800 800 800 Total 3 3 3 Multiply by: No of Sacks per 800 heads (Exhibit 32A) 3 4 4 Total 9 12 12 Multiply by: Cost per Sack (Exhibit 32A) 1,350 1,500 1,250 TOTAL COST OF FEEDS 12,150 18,000 15,000 Exhibit 33 A Year 1 Age No. of hours in light Bulb (watts) Total Days of Usage Total Usage – kW- (150 heads; 31 batches) Total Usage – kW- (250 heads;9 batches) Total Usage – kW-(400 heads;3 batches) Total Usage -kW- (162 heads;5 batches) 0-3 23 125 3 1,604.25 776.25 414.00 279.45 4-7 18 125 4 1,674.00 810.00 432.00 291.60 8-14 14 125 7 2,278.50 1,102.50 588.00 396.90 15-22 16 125 8 2,976.00 1,440.00 768.00 518.40 23-27 18 125 5 2,092.50 1,012.50 540.00 364.50 Total 10,625.25 5,141.25 2,742.00 1,850.85 Multiply P10.30 P10.30 P10.30 P10.30 (rate) Total P109,440.10 P52,954.88 P28,242.6 P19,063.76 TOTAL COST PER YEAR P212,387
  99. 99. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 33B Year 2 99 Age No. of hours in light Bulb (watts) Total Days of Usage Total Usage - kW- (162 heads; 31 batches) Total Usage - kW-(270 heads;9 batches) Total Usage-kW-( 432 head; 3 batches) Total Usage-kW-( 175 heads; 5 batches) 0-3 23 125 3 1,732.59 838.35 447.12 301.875 4-7 18 125 4 1,807.92 874.8 466.56 315 8-14 14 125 7 2,460.78 1,190.7 635.04 428.75 15-22 16 125 8 3,214.08 1,555.2 829.44 560 23-27 18 125 5 2,259.9 1,093.5 583.2 393.75 Total 11,475.27 55,52.55 2,961.36 1,999.375 Multiply (rate) P10.3 P10.3 P10.3 P10.3 Total P118,195.3 P57,191.27 P30,502.01 P20,593.56 TOTAL COST PER YEAR P229,294 Exhibit 33C Year 3 Age No. of hours in light Bulb (watts) Total Days of Usage Total Usage-kW- (175 heads; 31 batches) Total Usage-kW-( 292 heads; 9 batches) Total Usage (467 heads;3 batches) Total Usage-kW-( 189 heads; 5 batches) 0-3 23 125 3 1,871.625 906.66 483.345 326.025 4-7 18 125 4 1,953.00 946.08 378.27 340.20 8-14 14 125 7 2,658.25 1,287.72 294.21 463.05 15-22 16 125 8 3,472.00 1,681.92 336.24 604.80 23-27 18 125 5 2,441.25 1,182.60 378.27 425.25 Total 12,396.13 6,004.98 1,870.335 2,159.325 Multiply (rate) P10.30 P10.30 P10.30 P10.30 Total P127,680.10 P61,851.29 P19,264.45 P22,241.05 TOTAL COST PER YEAR P233,980
  100. 100. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 33D Year 4 100 Age No. of hours in light Bulb (watts) Total Days of Usage Total Usage-kW-( 162 heads; 31 batches) Total Usage-kW-( 189 heads; 5 batches) Total Usage-kW-( 189 heads; 31 batches) Total Usage-kW-( 315 heads; 9 batches) 0-3 23 125 3 1,732.59 326.025 2,021.355 978.075 4-7 18 125 4 1,807.92 340.2 2,109.24 1,020.6 8-14 14 125 7 2,460.78 463.05 2,870.91 1,389.15 15-22 16 125 8 3,214.08 604.8 3,749.76 1,814.4 23-27 18 125 5 2,259.9 425.25 2,636.55 1,275.75 Total 11,475.27 2,159.325 13,387.82 6,477.975 Multiply P10.3 P10.3 P10.3 10.3 Total P118,195.3 P22,241.05 P137,894.5 P66,723.14 TOTAL COST PER YEAR P267,291 Exhibit 33E Year 5 Age No. of hours in light Bulb (watts) Total Days of Usage Total Usage-kW- (204 heads; 31 batches) Total Usage-kW-( 340 heads;9 batches) Total Usage-kW-( 544 heads;3 batches) Total Usage-kW-( 220 heads;5 batches) 0-3 23 125 3 2,181.78 1,055.70 563.04 379.5 4-7 18 125 4 2,276.64 1,101.60 587.52 396.00 8-14 14 125 7 3,098.76 1,499.40 799.68 539.00 15-22 16 125 8 4,047.36 1,958.40 1,044.48 704.00 23-27 18 125 5 2,845.80 1,377.00 734.4 495.00 Total 14,450.34 6,992.10 3,729.12 2,513.50 Multiply P10.30 P10.30 P10.30 P10.30 Total P148,838.50 P72,018.63 P38,409.94 P25,889.05 TOTAL COST PER YEAR P288,382
  101. 101. St. Anthony’s College San Jose de Buenavista, Antique Exhibit 34 Year 1 Year 2 Year 3 Year 4 Year 5 Freezer P1,500 P1,570 P1,643 P1,720 P1,801 40 watts bulb (Inside the poultry House) Exhibit 35 1,186 1,242 1,300 1,361 1,425 691 723 757 793 830 101 40 watts bulb( outside the poultry house) Administrative Exhibit 35 Unit No. of Hours Usage per unit Total Usage Rate Total Monthly Cost Freezer 1 24 145.63 145.63 P10.30 P1,500 40 watts bulb (Inside the poultry House) 4 24 28.8 115.2 10.30 1,186.56 40 watts bulb( outside the poultry house) 4 14 16.8 67.2 10.30 691.16 Total P3,377.72
  102. 102. St. Anthony’s College San Jose de Buenavista, Antique 102 Exhibit 36– Technical Layout

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