Chapter I

INTRODUCTION

Pizza is oven-baked flat bread generally topped with tomato

sauce and cheese. It is commonly supplemented with a selection of meats,

vegetables and condiments. The term first appeared in 997 AD, "in a Latin

text from the southern Italian town of Gaeta", in Lazio, Central Italy. The

modern pizza was invented in Naples, Italy, and the dish and its variants have

since become popular in many areas of the world.[2] In 2009, upon Italy's

request, Neapolitan pizza was safeguarded in the European Union as

a Traditional Specialty Guaranteed dish. Pizza is prepared fresh, frozen and in

portioned slices or pieces, and various types of ovens are used to cook

pizzas. Many varieties exist, and several similar dishes are prepared from

ingredients commonly used in pizza preparation, such

as calzone and Stromboli (Miller, Hanna, 2006). 

Filipino special homemade pizza is a typical pizza made of oven-baked

flat, round bread topped with tomato sauce, cheese and various toppings.

Filipino Pizzas come into different varieties. Some Filipino pizzas are topped

with tinapa, Pampanga tocino, Vigan longganisa, Lucban longganisa, and itlog

na maalat (http://filipinostylere cipe.com/tag/pizza).

Pinoy pizzas are made by layering ingredients that will produce the

best flavor. The base is made of dough, which is pasted with a red sauce.

Pizza sauce is made almost entirely out of tomatoes. This sauce can either be

1

made at home or bought from a store. Tomatoes are well-known sources of

lycopene, an antioxidant capable of many functions including diabetes,

cancer and heart disease prevention. Another nutrient that can benefit

diabetics is alpha-lipoic acid, which helps normalize the amount of glucose

(sugar) in the blood. Pizza sauce also carries choline, a nutrient associated

with preserving memory, improving sleep and aiding muscle movement. In

addition, tomatoes are believed to be great sources of vitamins A and C, folic

acid and carotene (Merano, Vanjo, 2014)

The researchers of this study had proposed a business about pizza

named Bossing’s Pizza. Since pizza have been known from almost all

Filipinos, this could be an advantage for promoting a special homemade pizza

that is served hot to the customers in the proposed location. The composition

of the tomato sauce used in the proposed pizza is also good for the health of

the customers due to different nutritional value of the tomato sauce such as

lycopene that is good for the heart.

2

Chapter II

PROJECT SUMMARY

A. Name of the Business

The proposed project plan is Bossing’s Pizza. The main product

of the business is the pizza itself. The name Bossing refers to being a

leader. Thus, Bossing’s Pizza means a “leading pizza”. It will become

trending and popular. Thus, Bossing’s Pizza is memorable.

B. Location

The proposed location of the business is in Kapatagan, Lanao del

Norte particularly in the main market area. There are vacant spaces for

rent for a small business like the proposed Bossing’s Pizza. The

location is a non-secluded area. Thus, it is a busy area for marketing

not only for wet goods (fishes and meats) but also for snack corners,

small restaurants and others. It is a very attractive place. The

terminals for tricycle to Sapad and other areas like to Maranding and

Taguitic are located near to the main market area. Hence, the people

could walk-in or ride with a public transport such as bicycles.

3

C. Descriptive Definition of the Project

The proposed project plan is named Bossing’s Pizza. This is a

small business where you can buy hot pizza with an affordable price.

There are five kinds of flavor offered by the proposed business namely:

Cheese and Cheese Pizza, Sausage Pizza, Hawaiian Pizza, Beef Burger

Pizza and Mushroom Pizza. The finished product pizza will be place in a

(7″    (18cm)) 7 1/8 x 7 1/8 x 1 3/4 or in a (15″  (39cm) ) 15 1/8 x 15

1/8 x 1 ¾ pizza box. The feasibility study was accomplished within a

month.

D. Project Long-Range Objectives

The Bossing’s Pizza long range objectives are summarized as

follows:

To provide quality pizza with an affordable amount

To increase sales by 5% after five years.

To add new branches in Maranding, Lala, and Tubod area after

five years.

E. Major Assumption and Summary of Findings and Conclusions

a. Market Feasibility

The proposed business location would be one of the food stall in the

main market building of Kapatagan, Lanao del Norte. The probable market

would be the people of Kapatagan and the neighbor provinces. The

4

increasing population would be a great advantage for the proposed business.

The raw supply is available in the proposed location. Thus, there could be a

great convenience in comes with source of supplies. The demand would

increase upon the increase of good feedbacks from the customers and would

probably result to increase with the availability of supply.

b. Technical Feasibility

The product of the proposed business would have five different flavors.

The pizza in the box is served hot to the customers. The proposed business

hour of the proposed location would be from 4:00 am to 5:30 pm. The people

in the market of the proposed location tend to do marketing as early as 3:00

am. The pizzas are made at home and frozen before delivering to the

business location. The delivery schedule would be from 3:00 am. The

schedule for the acquisition of additional direct material is made once every

month. The acquisitions of the fixed assets are made upon pre-operation

months of the proposed business.

c. Financial Feasibility

The proposed business financial analysis shows an increasing trend on

profitability ratio of net income over sales. It shows that the business as it

grows is ongoing. There is less than a year on the payback period of the total

project cost invested by the owner. The financial statements also show that

there is 154% on the return on investment after five years.

5

d. Management Feasibility

The management of the proposed business will be operated by the owner

itself his/her employees. There are 2 saleslady/man and at the same time the

delivery person of the proposed business. One kitchen staff is required to

prepare the pizzas.

F. Socio-Economic Contribution

The proposed business would probably benefit the economic status of the

proposed location through the additional investments of the proposed

company. It will also benefit the people for the additional employment and

additional income. The employer who is the owner will also benefit from this

study to see the feasibility of the proposed business to the proposed location

and the projected income and profitability ratio of the company. This could be

an additional source of income for the employer. Thus, this business could be

an example for a small business with a continuous income.

6

Chapter III

MARKET STUDY

A. Product Description

The Bossing’s Pizza product will have five different kinds of

flavors namely the Cheese and Cheese Pizza, Sausage Pizza, Hawaiian

Pizza, Beef Burger Pizza and Mushroom Pizza. This is a solo pizza for

each kind of flavor. If the customer will buy one kind of flavor of pizza,

the pizza will be cooked for 10 to 15 minutes in the oven and will be

placed on a box before serving to the customer. Thus, the product is a

hot pizza on a a (7″ (18cm)) 7 1/8 x 7 1/8 x 1 3/4 or in a (15″ 

(39cm) ) 15 1/8 x 15 1/8 x 1 ¾ pizza box. The main customers of the

business are not only the people of Kapatagan but also the people in

the neighboring area such as in Maranding, Lala. The main purpose of

the business is to promote new taste of pizza with an affordable

amount.

B. Demand

7

Though the product, pizza, is not new for the people of

Kapatagan, there is a less of promotion for the product since the pizza

that being sold-out to the market was ready made and is served not

hot. The people of Kapatagan has known and tasted pizza (homemade

pizza) with an ordinary pizza bread top with hotdog, pineapple chunks

and tomato sauce. Thus, the people are still looking for a new pizza

with a better quality of taste and with affordable price.

According to the latest survey of the researchers, there is one

homemade pizza owner who delivers pizza to five different areas in

Kapatagan. One of which is in RM Pharmacy, and the four areas will be

located in the main market area. These pizza were sliced into six equal

parts and being sold-out to the market. The main users of pizza will be

the travelers, students, workers and others. The competitor pricing

strategy and its actual sales were shown below price were shown

below.

Table 1. Competitors Pizza Sales

Particulars PriceTotal Pizzas

SoldSales per

daySliced pizza 15.00 120 1,800.00Whole Pizza (Solo) 60.00 20 1,200.00Total 75.00 3,000.00

C. Supply

Since the proposed location of the proposed Bossing’s Pizza is a

crowded area, it is assumed that there will be an increase on demand.

In Kapatagan particularly in RM Pharmacy Pizza Stall as one of the

8

major producers of pizza in the proposed location, the last survey

resulted to a ratio of every sixty slices of pizza (6 pizzas) were sold to

twenty persons each day due to that some buy two to three slices and

some buy one slice for a taste. And there is a ratio of 10 out of 30

customers who buy pizza for almost every day. Thus, the people

interest on pizza is increasing. Thus, the supply of Bossing’s Pizza will

also increase. The Bossing’s Pizza product will be a homemade ready

to cook pizza. Moreover, the pizza will be served hot to the customers

with a proper packaging.

D. Competitive Position

The proposed Bossing’s Pizza prices are shown in the table

below:

Table 2. Bossing’s Pizza Prices

Kind of Flavor Solo Pizza

Buy 4 Pizzas for

Php145.00 in a box.

Cheese and Cheese Pizza 38

Sausage Pizza 38

Hawaiian Pizza 38

Beef Burger Pizza 38

Mushroom Pizza 38

9

As shown in table above, all solo pizzas amounted to Php38.00.

If the customer will buy 4 pizzas, they will be discounted for Php7.00

for a total of Php145.00. Each pizza will be placed in a box and is

served hot for 10 to 15 minutes like any other known pizza such as

Pizza Hut and Shakey’s Pizza.

Comparing to the price of the competitor, the whole solo pizza is

being sold to PHP60.00 with the same flavor. Hence, Bossing’s Pizza is

more affordable than the competitor’s pizza.

E. Marketing Program

Bossing’s Pizza product will be placed to a (7″ (18cm)) 7 1/8 x 7 1/8 x 1

¾ small box with the logo of the business. And each 4 pizzas will be placed

on a (15″ (39cm)) 15 1/8 x 15 1/8 x 1 ¾ bigger box with the same logo of the

business. This is other way of promoting the business. The business upon

opening will not use the freebies promos such as free mugs or t-shirts of have

a caravan. The other promotion of the Bossing’s Pizza will be by flyers and by

recorded advertisement of the business for a lesser expense. There’s no need

to use other media like radio communication as practiced by other companies

since this is just a small business.

10

Chapter IV

TECHNICAL STUDY

A. The Product

The proposed business will manufacture pizzas with five different kind of

flavor. These pizzas are homemade ready to cook pizzas that is served hot to

the customers which is good also for the body. The table below shows the

ingredients of the pizza.

11

Table 3. Ingredients of Bossing’s Pizza

Hawaiian Pizza Homemade pizza crustPizza sauceShredded mozzarella cheeseSliced cooked hamPineapple chunks (canned or

fresh)Cheese and Cheese Pizza Homemade pizza crust

Shredded CheesePizza sauce

Mushroom Pizza Homemade pizza crustSliced Mushroom in canShredded CheeseGarlicPizza Sauce

Sausage Pizza Homemade pizza crustPizza sauceSausageShredded Cheese

Beef Burger Pizza Homemade pizza crustPizza sauceGrind beef meatShredded Cheese

B. Production Process

The process on how to make the Bossing’s Pizza should remain

confidential in this study to retain the trade secret of the company. The figure

below shows the service process of the proposed business to the customers.

Figure 1. Service Process of Bossing’s Pizza

12

C. Production Schedule

The proposed business hour for the proposed Bossing’s Pizza Business is

from 4:00 am to 5:30 pm. The people in the market of the proposed location

tend to do marketing as early as 3:00 am. The pizzas are made at home and

frozen before delivering to the business location. The delivery schedule would

be from 3:00 am. Assumed that every day, the business can produce 90

uncooked pizza that totaled for 2520 pizzas per month.

D. Tools, Machinery and Equipment

The table below shows the tools, machinery and equipment needed by the

proposed business and its annual depreciation.

Table 4. Tools, Machinery, Equipment

Particulars Qty. Brand/DescriptionTotal Cost

Annual Dep.

Baker's Stove 1 La Germania 17,000.00 1,700.00

13

Homemade PizzasDelivery of the Pizzas

to the Business Location

Frozen Pizzas Customer's Choice of Pizza

Cooking the Pizza for 10 to 15 mins.

Placing the cooked pizza in a box.

Serving the Product to the Customer

Customer's Feedback in Suggestion Box

(Optional)

Future Improvement of the Business

and OvenDough Mixer 1 Homemaker bench mixer 2,000.00 200.00

Cooking pan 2Teflon Coated Wok with Cover 800.00 160.00

Cutting Board 1Crushed Bamboo Cutting Board 100.00 20.00

Mugs and Glasses 15 Novo Brand 200.00 40.00Plates and Bowl 10 Plastic Plates and Bowl 140.00 28.00

Kitchen utensils 1 Set

Set of spoon and fork including spatula and other kitchen utensils such as knife 200.00 40.00

Roller knead 1Ordinary wood-made roller knead 150.00 30.00

Cooler 1 Orocan Koolit Ice Chest 500.00 100.00

Freezer 1

Fujidenzo 22.0 CU.ft 1-Door Solid Top Chest Freezer FC-22 ADF (White) 27,500.00 2,750.00

Trays 2 Sterilite Mini Storage 250.00 50.00Cutlery containers 2 Novo Brand 150.00 30.00Water Dispenser 1

ACL water dispenser (cold water) 600.00 60.00

*Cleaning Tools 50.00Garbage Containers 2 Novo Brand 200.00Wipers 4 Non-cotton wipers 50.00

Total49,840.0

05,258.0

0

E. Plant Location

Figure 2. Location Map and Lay-out

14

F. Pizza Box Lay-out

15

G. Food Stall

The food stall of the business is rented in an amount of Php50.00 per day

in a total of Php18, 250.00 annually. A payment for goodwill is made since

the food stall was owned by the Local Government amounted to Php 20,

000.00. Its dimension is 2X4 meter including its front row and back row.

H. Direct Materials

The purchased of direct materials includes the raw materials needed in

making the pizza, packaging materials for the packaging of the product and

cleaning materials for the maintenance of sanitation in the business. The

direct materials purchased are assumed to be a fixed charge. Raw materials

are acquired once a month. The unit cost of each pizza flavor was not shown

to retain the trade confidentiality. The assumptions were shown below.

Table 5. List of Direct Materials

16

Direct Materials Particulars Total CostRaw Materials Flour 9,600.00

Pizza Sauce 300.00Cheese 2,400.00Sausage 840.00Grind Beef 400.00Mushroom in can 520.00Ham 400.00Pineapple chunks 1,100.00Garlic 60.00Eggs 468.00Margarine 1,500.00Oil 1,512.00Condiments 500.00

Sub-total 19,600.00Cleaning Materials Dishwashing soap 100.00

Packaging MaterialsPizza Box 7″ (18cm)) 7 1/8 x 7 1/8 x 1 ¾ with logo 10,000.00Pizza Box (15″ (39cm)) 15 1/8 x 15 1/8 x 1 ¾ with logo 3,880.00Tie Box 120.00

Sub-total 14,000.00Total Direct Materials 33,700.00

I. Operating Costs

Though the proposed location water supply for washing is available

and is free for every rented stall, to make it more safe for the customers, the

company will provide a water refill supply. The nearest water refill station is

in ACD Drinking water Refill Station that would worth Php25.00 for every

refill. Assumed that the water refill is thrice a week worth Php 75.00. .

Delivery expense is Php 50.00 per day. Pryce gas tank is worth Php 1,350.00

and Php 650.00 for refill. Electricity is assumed to worth Php 630.00 per

month. Electricity increase by 1% every year as well as the water refill,

delivery and gas refill expense.

J. Waste Disposal System

17

The proposed company will segregate their waste through non-

biodegradable (e.i. plastics) and biodegradable (e.i. pizza boxes) products. It

is assumed to have 1 garbage can volume of garbage per day that the

business could have. And since the business includes the sanitary fee in

applying the business permit, a garbage collector from the government is

assigned to collect the wastes.

Chapter V

18

MANAGEMENT STUDY

The Bossing’s Pizza business is a sole proprietorship type of business. It

will be operated by the owner itself. The manager administers the entire

business. The kitchen staff is assigned at home to bake and prepare the

pizzas. The storekeeper serves the customers. The delivery man doesn’t

mean the delivery service of the business to the customers but he/she

delivers the uncooked pizzas from the baker’s location to the business

location. The storekeeper in-charge will be the delivery man of the business.

All employees and employer is assumed to have 12 and a half hour devoted

time for the business since this is located in the province area.

A. Organizational Chart

Figure 3. Organizational Chart of the Business

B. Functions

19

Manager

1 Kitchen Staff 1 Deliveryman/Storekeeper

Manager- the owner of the business and generally manage the

company

Kitchen Staff- bakes the pizza and monitor the direct materials

availability

Storekeeper/Delivery man- serve the customers and delivers the pizza

from the main production to the business location

C. Labor Requirements

Table 6. Labor Requirements

Particulars Required

Personn

el

Requirements Salary per

month

Total Salary

per year

Manager

1 Owner of the

company and

knows how to

manage the

business.

Php 5,000.00 Php 60,000.00

Kitchen Staff 1 Knows how to

bake pizza and

willing to work.

No disease.

Preferably male;

20-25 years old.

Php 3,000.00 Php 36,000.00

Storekeeper

/man/

1 Knows how to

drive single

20

Delivery

man

motor; 20-25

years old

Php 6,000.00 Php 72,000.00

Total Php

168,000.00

D. Time Table

Table 7. Time Table of the Business

Particulars

Month 1

Month 2

Month 3

1 2 3 4 1 2 3 4 1 2 3 4Acquisition of fixed assets and direct materials; completion of legal forms of the business.

Installation of different equipment.

Sampling Promotion.

Start of the business

21

Chapter VI

FINANCIAL STUDY

A. Total Project Cost

The total project cost of the business is worth Php 145, 540.00.

Schedule 1. Total Project Cost

Particulars

To be Acquired

Equity TotalFixed AssetTools, Machinery,& Equipment (Sched. 2) 49,840.00Vehicle (Single Motor) Sched. 3 40,000.00Sub-total 89,840.00Working Capital:Operating Cost 2,000.00Direct Materials (Sched. 4) 33,700.00Goodwill expense- Food Stall 20,000.00Sub-total 55,700.00Total 145,540.00

22

B. Sources of Financing

An assumption that the owner invested worth Php 150,000.00 as cash on

hand was used in this study.

C. Projected Financial Statement

a. Financial Assumptions

The pre-operating cost of the “operating cost” is worth Php2, 000.00.

The Goodwill expense of the food stall is worth Php20, 000.00.

The business bought a vehicle (single motor) for the delivery goods

from plant to business location worth Php 40, 000.00 with an annual

depreciation of Php 4, 000.00.

The direct materials is assumed to be a fixed charge.

To get the depreciation per annum, the formula below was used:

Depreciation per annum =

( Cost   −   Residual Value )

Useful Life

b. Projected Income Statement

Table 8. Income Statement of Bossing’s Pizza for the year ended

Dec. 31

Particulars Year 1 Year 2 Year 3 Year 4 Year 5Sales (Sched. 8) 1,046,976. 1,072,512.0 1,098,048. 1,123,584.0 1,149,120.0

23

00 0 00 0 0less: Cost of Goods Sold (Sched. 9) 618,187.33 603,770.60 612,869.99 621,970.49 631,072.14Depreciation expense 9,258.00 9,258.00 9,258.00 9,258.00 9,258.00Gross Operating Profit

419,530.67

459,483.40

475,920.01

492,355.51 508,789.86

Less: Income Tax Expense (Sched. 10) 300,032.32 308,203.84 316,375.36 324,546.88 332,718.40Net Operating Profit

119,498.35

151,279.56

159,544.65

167,808.63 176,071.46

24

c. Projected Cash Flow Statement

Table 9. Cash Flow of the Bossing’s Pizza for the year ended Dec. 31.

ParticularsPre-

operation Year 1 Year 2 Year 3 Year 4 Year 5Cash Inflows

Sales 0.001,046,976.0

01,072,512.0

01,098,048.0

01,123,584.0

01,149,120.0

0Add. Investments 150,000.00 0.00 0.00 0.00 0.00 0.00

Total150,000.0

01,046,976.

001,072,512.

001,098,048.

001,123,584.

001,149,120.

00Cash Outflows

Acquisition of Fixed Assets 89,840.00 0.00 0.00 0.00 0.00 0.00Purchases of Direct Materials 33,700.00 370,700.00 405,400.00 405,400.00 405,400.00 405,400.00Office Supplies 474.00 174.00 174.00 174.00 174.00Operating Costs 2,000.00 37,910.00 37,321.60 37,434.32 37,548.16 37,663.14Labor/Administrative Expense 0.00 168,000.00 168,000.00 168,000.00 168,000.00 168,000.00Rent Expense 0.00 18,250.00 18,250.00 18,250.00 18,250.00 18,250.00Goodwill expense-Food Stall 20,000.00 0.00 0.00 0.00 0.00 0.00Permits and Licenses 0.00 3,100.00 2,585.00 2,585.00 2,585.00 2,585.00Payment for Income Tax Expense 0.00 300,032.32 308,203.84 316,375.36 324,546.88 332,718.40

Total145,540.0

0 898,466.32 939,934.44 948,218.68 956,504.04 964,790.54Net Cash Flow 4,460.00 148,509.68 132,577.56 149,829.32 167,079.96 184,329.46Add. Cash Balance, Beginning 0.00 4,460.00 152,969.68 285,547.24 435,376.56 602,456.52

25

Cash Balance, Ending 4,460.00 152,969.68 285,547.24 435,376.56 602,456.52 786,785.98

26

d. Projected Balance Sheet

Table 10. Balance Sheet of Bossing’s Pizza for the year ended Dec.

31.

Year 1 Year 2 Year 3 Year 4 Year 5AssetsCurrent AssetsCash 152,969.68 285,547.24 435,376.56 602,456.52 786,785.98Direct Materials Inventory 35,946.67 63,906.67 82,880.00 92,866.67 93,866.67

Total Current Assets 188,916.35 349,453.91 518,256.56695,323.1

9 880,652.65

Non-Current AssetsTools, Machinery and Equipment 49,840.00 49,840.00 49,840.00 49,840.00 49,840.00Vehicle (Single Motor) 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00Sub-Total 89,840.00 89,840.00 89,840.00 89,840.00 89,840.00Less: Accumulated Depreciation 9,258.00 18,516.00 27,774.00 37,032.00 46,290.00Total Non-Current Assets 80,582.00 71,324.00 62,066.00 52,808.00 43,550.00

Total Assets 269,498.35 420,777.91 580,322.56748,131.1

9 924,202.65

LiabilitiesTax Payable 0.00 0.00 0.00 0.00 0.00Total Liabilities 0.00 0.00 0.00 0.00 0.00

Owner's EquityCap., Beg. 150,000.00 269,498.35 420,777.91 580,322.56 748,131.19Add. Investment 0.00 0.00 0.00 0.00 0.00Add: Net Income 119,498.35 151,279.56 159,544.65 167,808.63 176,071.46

Cap., End 269,498.35 420,777.91 580,322.56748,131.1

9 924,202.65Total Liabilities and Owner's Equity 269,498.35 420,777.91 580,322.56

748,131.19 924,202.65

27

D. Financial Analysis

a. Return on Investment

Return on Investment=Ave. Annual Net Income/Total Investments X

100%

Table 11. Return on Investment

Year Net Income1 119,498.352 151,279.563 159,544.654 167,808.635 176,071.46

Total Net Income 774,202.65Divided by Critical

Asset Life 5Average Net Income 154,840.53

Total Project Cost 145,540.00Return on

Investment 106.39

The table above shows that after five years there is 106.39% on return

of investment. Thus, there is a gain generated in the proposed business. This

also means that the business is favorable for additional branches of the

proposed business in the neighbor provinces after five years.

28

b. Payback Period

Table 12. Payback Period

Year

Net Income+

Cummulative Total

Payback Period

Depreciation

1 128,756.35 128,756.35 12 160,537.56 169,795.563 168,802.65 187,318.654 177,066.63 204,840.635 185,329.46 222,361.46

Total Project Cost 145,540.00Less Cummulative

128,756.35

Total where investment is to be recoveredTotal amount to be recovered 16,783.65Divided by Net Income+Dep.

128,756.35Where the investment is recoveredQuotient 0.13YearsMonths(Multiplied by 12) 1.56 -1

Payback PeriodLess than a year

The payback period shows that the total project cost can be recovered

with less than one year. Thus, it ascertains that the proposed business is

worth pursuing.

29

c. Net Income: Sales Ratio

Table 13. Net Income: Sales Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5Net Income 119,498.35 151,279.56 159,544.65 167,808.63 176,071.46Gross Revenue

1,046,976.00

1,072,512.00

1,098,048.00

1,123,584.00

1,149,120.00

Net Income Rate 11.41 14.11 14.53 14.94 15.32

The net income shows the profitability ratio of the proposed business on

income after deduction of all expenses including the income tax expense to

the sales revenue of the proposed business. It shows an increasing trend of

ratio. Thus, the business as it grows is ongoing.

30

E. Schedules

Schedule 2. Tools, Machinery and Equipment

Particulars Total Costs EULAnnual Dep.

Baker's Stove and Oven 17,000.00 10 1,700.00Dough Mixer 2,000.00 10 200.00Cooking pan 800.00 5 160.00Cutting Board 100.00 5 20.00Mugs and Glasses 200.00 5 40.00Plates and Bowl 140.00 5 28.00Kitchen utensils 200.00 5 40.00Roller knead 150.00 5 30.00Cooler 500.00 5 100.00Freezer 27,500.00 10 2,750.00Trays 250.00 5 50.00Cutlery containers 150.00 5 30.00Water Dispenser 600.00 10 60.00Cleaning Tools 250.00 5 50.00Total 49,840.00 5,258.00

Schedule 3. Vehicle (Single Motor)

Particulars Cost EULAnnual Dep.

Vehicle 40,000.00 10 4,000.00Total 40,000.00 4,000.00

Schedule 4. Operating Cost

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

31

Water Refill Expense3,600.0

03,636.0

03,672.3

63,709.0

83,746.1

7

Gas Refill Expense8,500.0

07,800.0

07,800.0

07,800.0

07,800.0

0

Electricity Expense7,560.0

07,635.6

07,711.9

67,789.0

87,866.9

7

Delivery Expense18,250.

0018,250.

0018,250.

0018,250.

0018,250.

00

Total37,910.

0037,321.

6037,434.

3237,548.

1637,663.

14

Schedule 5. Direct Materials

Particulars

Pre-operatio

n Year 1 Year 2 Year 3 Year 4 Year 5Raw Materials

19,600.00

215,600.00

235,200.00

235,200.00

235,200.00

235,200.00

Cleaning Materials 100.00 1,100.00 2,200.00 2,200.00 2,200.00 2,200.00Packaging Materials

14,000.00

154,000.00

168,000.00

168,000.00

168,000.00

168,000.00

Total33,700.0

0370,700.

00405,400.0

0405,400.0

0405,400.0

0405,400.0

0

Schedule 6. Office Supplies

Particulars

Year 1 Year 2 Year 3 Year 4 Year 5

Calculators300.0

0 0.00 0.00 0.00 0.00Notebook 90.00 90.00 90.00 90.00 90.00Ballpen 84.00 84.00 84.00 84.00 84.00

Total474.0

0 174.00 174.00 174.00 174.00

Schedule 7. Direct Materials Inventory Summary

Particulars Year 1 Year 2 Year 3 Year 4 Year 5Direct Materials Inventory, Beg. 33,700.00 35,946.67 63,906.67 82,880.00 92,866.67Add: Direct Materials

370,700.00 405,400.00 405,400.00 405,400.00 405,400.00

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PurchasedDirect Materials Available 404,400.00 441,346.67 469,306.67 488,280.00 498,266.67Less: Direct Materials Used 368,453.33 377,440.00 386,426.67 395,413.33 404,400.00Direct Materials Inventory, End 35,946.67 63,906.67 82,880.00 92,866.67 93,866.67

Schedule 8. Sample Revenue

Particulars Annual RevenueYear 1If 82 pizzas per day including the promos @ Php 38 1,046,976.00Year 2If 84 pizzas per day including the promos @ Php 38 1,072,512.00Year 3If 86 pizzas per day including the promos @ Php 38 1,098,048.00Year 4If 88 pizzas per day including the promos @ Php 38 1,123,584.00Year 5If 90 pizzas per day including the promos @ Php 38 1,149,120.00

Schedule 9. Cost of Goods Sold Summary

Particulars Year 1 Year 2 Year 3 Year 4 Year 5Direct Materials Inventory, Beg. 33,700.00 35,946.67 63,906.67 82,880.00 92,866.67Add: Direct Materials Purchased 370,700.00 405,400.00 405,400.00 405,400.00 405,400.00Direct Materials Available 404,400.00 441,346.67 469,306.67 488,280.00 498,266.67Less: Direct Materials Inventory,End 35,946.67 63,906.67 82,880.00 92,866.67 93,866.67

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Direct Materials Used 368,453.33 377,440.00 386,426.67 395,413.33 404,400.00Add: Labor/ Administrative Exp. 168,000.00 168,000.00 168,000.00 168,000.00 168,000.00Rent Expense 18,250.00 18,250.00 18,250.00 18,250.00 18,250.00Goodwill Expense-Food Stall 20,000.00 0.00 0.00 0.00 0.00Operating Costs 39,910.00 37,321.60 37,434.32 37,548.16 37,663.14Permits And Licenses 3,100.00 2,585.00 2,585.00 2,585.00 2,585.00Office Supplies 474.00 174.00 174.00 174.00 174.00Cost of Goods Sold 618,187.33 603,770.60 612,869.99 621,970.49 631,072.14

Schedule 10. Income Tax Expense Summary

Particulars Year 1 Year 2 Year 3 Year 4 Year 5Income Before Tax 1,046,976.00 1,072,512.00 1,098,048.00 1,123,584.00 1,149,120.00

Less: Basic Amount 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00

Excess 546,976.00 572,512.00 598,048.00 623,584.00 649,120.00Multiply: Tax Percentage 0.32 0.32 0.32 0.32 0.32Sub-Total 175,032.32 183,203.84 191,375.36 199,546.88 207,718.40Add: Basic Tax 125,000.00 125,000.00 125,000.00 125,000.00 125,000.00Income Tax Due 300,032.32 308,203.84 316,375.36 324,546.88 332,718.40

Schedule 11. BIR Policy for the Individual Taxpayers

If Taxable Income is: Tax Due isNot over 10, 000.00 5%Over 10, 000.00 but not over 30,000.00 500+10% of the excess over 10,000Over 30,000.00 but not over 70,000.00

2,500+15% of the excess over 30,000

Over 70,000.00 but not over 140,000.00

8,500+20% of the excess over 70,000

Over 140,000.00 but not over 250,000.00

22,500+25% of the excess over 140,000

Over 250,000.00 but not over 500,000.00

50,000+30% of the excess over 250,000

Over 500,000.00125,000+32% of the excess over 500,000

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Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Business Permit 2,450.00 2,450.00 2,450.00 2,450.00 2,450.00DTI Registration 515.00 0.00 0.00 0.00 0.00Cedula 75.00 75.00 75.00 75.00 75.00Purok Clearance 10.00 10.00 10.00 10.00 10.00Barangay Clearance 50.00 50.00 50.00 50.00 50.00Total 3,100.00 2,585.00 2,585.00 2,585.00 2,585.00

Schedule 12. Licenses and Permits

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Schedule 13. The Business Permit

Particulars AmountBillboard Fee 250.00Sanitary Fee 300.00Municipal ecology 300.00Mayor's Permit 500.00Weight and Measure 50.00Zoning Fee 50.00Basic Tax Clearance 1,000.00

Total2,450.0

0

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