Republic of the Philippines

Infotech Development Systems Colleges

Dunao, Ligao City

Fullsaver’s Computer Dealer and Repair Shoppe

A project feasibility presented

to the faculty of INFOTECH in partial fulfillment

of the requirements in English 201

Technical Writing and Methods of Research

Submitted by:

Jaybe N. Bustamante

Submitted to:

Mr. Roger Relato

Adviser

Republic of the Philippines

Infotech Development Systems Colleges

Dunao, Ligao City

Result of the oral defense for Jaybe N. Bustamante, candidate for the Computer

Programming NC IV

Title: Fullsaver’s Computer Dealer and Repair Shoppe

Place: Infotech Development Systems Colleges

Ligao City Campus

Date: June 5, 2010

Panelist of Examination Action

MR. JOBREN CONSUELO _______________________

Panelist

MS. KATRINA PRIANES _______________________

Panelist

MR. ROGER RELATO _______________________

Panelist

A C KN O W LE D GM E N T

The author is indebted to the follow person who made possible the realization of this

research.

Mr. Roger Relato who serve as our research adviser, who game suggestion for the

improvement of this study, his wise counsel, tireless encouragement and undying consideration

and support, thanks sir.

To my other researcher, who share knowledge and experienced.

To my classmate and all other who is one way or another helped in the accomplishment

of their study.

Special acknowledgment is extended to my family members especially to my parents,

whose patience and understanding and give support made this book possible and to my girlfriend

Monette Ballesteros, who always there to support me with love and encouragement.

And above all to the LORD who without His endless guidance and wisdom this study

would not be realized.

Thanks be to God…

J.N.B.

TABLE OF CONTENT

Title Page

Result for the Oral Defense

Acknowledgment

Table of Content

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chapter I

Summary of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Name and Location of the Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Market Share and Market Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Product’s Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Methods of Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Market Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Technical Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Financial Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Chapter II

General Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Management of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Type of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Recruitment Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Building Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Furniture and Fixture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Legal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Status and Timetable of the Project . . . . . . . . . . . . . . . . . . . . . . . . . 18

Chapter III

Economic Aspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Market Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Demand Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Supply Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Competitive Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Marketing Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Contribution to the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Chapter IV

Financial Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Description of the Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Project Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Fixed Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Supply and Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Salaries and Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Income Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Chapter V

Technical Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Plant Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Floor Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

1

Introduction

Computer dealer shop is best described as a store that sells computers to the small

businessperson or personal user. And Octagon Computer Superstore is most known

computer store not only in Legazpi but all over the Philippines. And with its wide variety

of products, Octagon Computer Superstore is the one of the most successful Computer

dealer shop in Philippines.

Computer dealers and repair shop is one of the most in demand businesses here in

Albay. Nowadays, personal computers are really in demand because of the fast changing

technology that the people embraced just like here in Philippines. Some have their own

desktop or laptop to prepare their assignments and paper works. The people today are

very busy and would want to do their jobs in a beautiful and innovative environment that

could satisfy their needs and lessen their stress due to busy schedule. But some cannot

really afford their own personal computer because of the financial problem even if they

want to.

To help solve these problems, Fullsaver’s Computer Dealer and Repair Shoppe

will be constructed. The goal of this business is also the dream come true for the

researcher’s family - To be successful in every way.

2

Chapter I

SUMMARY OF THE PROJECT

Name of the Firm

The proposed name of the firm is “Fullsaver’s Computer Dealer and Repair

Shoppe”.

Location of the Firm

The business will be renting a space along Cevallos St., corner Mabini St.,

Ilawod, Guinobatan, Albay.

Brief Description of the Project

Fullsaver’s Computer Dealer and Repair Shoppe is a Computer store that sells

computer units and parts to a costumer with an affordable price. Since the business needs

a lot investment, the type of business will be partnership type. The business is partnered

with Mr. Jay-ar B. Nuelan, Mr. Louie O. Dy, Carj Nantiza for the import and distribution

of the wholesale priced products, and Mr. Richard Rivera for the Capitalist and Service

Industrial contribution.

Market Projections

Fullsaver’s Computer Dealer and Repair Shoppe will be constructed at

Guinobatan, Albay. The Plant Site in near to the main highway of the municipality. The

target consumers are families, office workers, and nearby neighborhood in demand of

3

personal computer and owners of personal computer having trouble with their system

unit. And as we know Guinobatan, Albay is one the productive municipality in Albay, by

some of the business establishments and home owners with a personal computer unit.

Market Shares

Fullsaver’s Computer Dealer and Repair Shoppe will grab 100% market shares.

The shop will be built in Guinobatan and with no other competitors. Different marketing

strategies and promotions will be considered.

Market Prices

Price is the amount of money charged for a product. Fullsaver’s Computer Dealer

and Repair Shoppe’s product pricing is very affordable. With a low additional percentage

price to the product, the business will surely click to the market. Leaflets will be

distributed and hand-out to various business establishments and houses. Promos and

services offered will be displayed on the store window. The owner will offer promos to

attract the consumers like 10% Off on selected products for the opening of the Fullsaver’s

Computer Dealer and Repair Shoppe.

4

Table 1 - Products and Service list and its respective prices

Item / Service Price

Computer Unit (Pentium Dual CPU 2.5Ghz, 160Gb. HD,DVD RW,

1Gb DDR2, 17” LCD Monitor, PC Table) 18,000.00

Motherboard

• ECS

• MSI

2,500.00

2,900.00

Monitor

• LCD 17”

• CRT 17”

5,000.00

2,100.00

System Chassis 650.00

Keyboard

• USB

• PS2

170.00

150.00

Mouse 95.00

Webcam 280.00

Printer

• Canon IP1900 Series

• HP Deskjet D320

2,100.00

2,800.00

Memory

• DDR (1Gb) 400Mhz 2nd hand

• DDR2 (1Gb) 800Mhz

1,300.00

1,450.00

CPU

• Intel

• AMD

3,100.00

2,800.00

Graphic Card

• GeForce 8500 GT 512mb

• ATI Radeon X700 512mb

2,700.00

2,400.00

WLAN Card

• Linksys

1,200.00

Power Supply Unit

• 500 watts

• 600 watts

450.00

580.00

USB Flash drive

• 2 Gb

• 4 Gb

195.00

370.00

W Router

• Linksys

• Aetheros

3,200.00

2,900.00

Optical Drive

• DVD RW

• DVD ROM

1,600.00

1,200.00

5

Hard Disk Drive

• SATA 160 Gb

• SATA 320 Gb

• IDE 120 Gb

• IDE 160 Gb

2,700.00

4,900.00

1,600.00

2,400.00

Accessories

RJ 45

UTP

USB Extension 2.0

Card Reader

5 in 1

8.00

15.00/m

20.00/m

100.00

Tools

Crimping tool

Side Cutter

Digital Tester

75.00

65.00

320.00

Software

OS

• Windows 7 Ultimate

• MAC OSX Snow Leopard

Antivirus

• Kaspersky Internet Security

• AVG 9.0 Antivirus and Firewall

• McAfee Internet Security

Visual Art Application

• Adobe CS 4 Master Edition

• COREL Draw x4 Collectors

Edition

5,000.00

2,200.00

780.00

560.00

700.00

2,100.00

1,000.00

Services

• Troubleshoot and Check-up

• Reformat and OS Installation

• Application Installation

FREE

200.00

50.00 / application

6

Methods of Financing

This business starts with the capital of P 1,500,000.00 Two Million Five Hundred

Thousand Pesos contributed by each partner as follows:

Table 2 - Methods of Financing Tab

Name Amount Contributed Type of Partner

Jay-ar Nuelan Php 375,000.00 Capitalist Industrial

Louie Dy Php 375,000.00 Capitalist Industrial

Jaybe Bustamante Php 375,000.00 Capitalist Industrial

Richard Rivera Service Industrial

Carj Nantiza Php 375,000.00 Capitalist Industrial

Capitalist Industrial Partner – one who contributes in money, property, and industry.

Service Partner – one who contributes industry, labor, skill or service.

Market Feasibility

This business provides a costumer with different parts and even a unit of computer.

Computer Services are also provided by the business with the help of the well-trained

technician.

Here in Guinobatan there is no other business like this is ever constructed or

opened on the said municipality. And number of household with a computer unit in

Guinobatan is greatly increasing and with the low price presented by the business, some

people from Polangui or Ligao will never go to Legazpi to buy some parts of the

computer they needed. Demand of business or working person wanting for a computer

unit is also increasing.

7

Technical Feasibility

The business is about computer selling and repairing. Selling Clerk, Cashier, and

Technicians will entertain and help costumer to find and get what they. The present

Guinobatan ALECO to provide the electricity and Guinobatan Water District for the

water to operate the business, and the Mayor’s Permit for the Plant Site Survey. All of

these, the business is possible in every aspects that the business need.

Financial Feasibility

Financial is the most important on a business. Fullsaver’s Computer Dealer and

Repair Shoppe is feasible because of the partnered proprietorship. With the help of the 3

Capitalist partners the business will be successful.

8

Chapter II

GENERAL DESCRIPTION

As the popularity of the computer continuous to grow at an exponential rate, and

becoming necessity of life, Fullsaver’s Computer Dealer and Repair Shoppe provides

communities with the affordable price of latest and even slightly used computers and give

a satisfaction service in preparing a computer to our valued customer.

Management of the Project

The Fullsaver’s Computer Dealer and Repair Shoppe will be managed by the

proponents of the business. They have an ability to manage a store type business and a

skill regarding with computers. With a background of Computer Hardware Servicing, a

Computer Programming graduate and a two Accountancy graduates, the proponents said

that they are willing to face any problem regarding to the productive of the business, and

be known at the province of Albay.

The following person is the one will handle as the major operators in this project:

Name Obligation

Jaybe Bustamante

The Manager. In charged for the quarter

of the financial matters.

Jay-ar Nuelan

In charged for the quarter of the financial

matters. In charged for the renovation of

the rented space.

9

Louie Dy

In charged for the quarter of the financial

matters. In charged for the securing the

permits and registration of the business.

Carj Nantiza

In charged for the quarter of the financial

matters. In charged for the deal on

computer parts and computer distributor.

Richard Rivera

In charged for the legal caused of the

business.

Type of Business

Partnership – is an organization where two or more person binds themselves to

contribute money, property, or industry into a common fund with the intention of

dividing profits among themselves.

Table 2 - Methods of Financing Table

Name Amount Contributed Type of Partner

Jay-ar Nuelan Php 375,000.00 Capitalist Industrial

Louie Dy Php 375,000.00 Capitalist Industrial

Jaybe Bustamante Php 375,000.00 Capitalist Industrial

Richard Rivera Service Industrial

Carj Nantiza Php 375,000.00 Capitalist Industrial

Benefits of partnership type of business

• Partnership is relatively easy to establish; however times should be invested in

developing the partnership agreement, in our case there’s no problem about it

because we are mostly friends and we are devoted to make our business progress.

10

• With more than one owner, the ability to raise funds- Debt vs. Equity maybe

increased.

• Higher quality employees. Partnerships tend to attract better employees because

of the possibility of becoming a principal in the firm.

• Easy form. Procedures and expenses are minimized.

• The business usually benefit from partners who have complementary skills.

• Better decision- making capability. Two heads are better than one.

• Managerial flexibility. Generally, important decisions can be quickly, although

not as fast in a sole proprietorship.

11

Figure 1 - Organizational Chart

Louie Dy

Part Owner

Jaybe

Bustamante

Part Owner / OIC

Manager

Carj Nantiza

Part Owner

Jay-ar Nuelan

Part Owner

Richard Rivera

Part Owner / PC

Technician Specialist

Selling Clerk

Cashier

Technician

12

Table 3 - Position and its Duty

Organizational chart is a diagram of the company or business firm structures.

The market for the services and items offered in Fullsaver’s Computer Dealer and Repair

Shoppe will offer is growing rapidly. The some computer shop in Legazpi hasn't come to

this area yet, but similar services are growing rapidly on a global scale. Large cities that

cater to large numbers of traveling business people have been saturated with businesses

offering the services Fullsaver’s Computer Dealer and Repair Shoppe will offer. My area

supports a population that has many of the same needs and interests of this larger group.

The office worker, family and student’s population continues to grow. AC Computer

Shop will target these groups with the use of fliers and tarpaulin.

Position Time Devoted Qualification Compensation

Manager 9 hrs/day

Part owner and the one

who will handle the

business.

The one who will recruit

employee

7,500.00/month

Part Owners

(daily checking

without time

recording or duty)

2,500.00/month

Head Technician 8 hrs/day

Part owner. Comtech

graduate, and the head of

the Technician of the shop

5,000.00/month

Selling Clerk 8 hrs/day

Atleast High school

graduate. With pleasing

personality and good

communication

20.00/hour

(160.00/day)

(4,160.00/month)

Cashier 8 hrs/day

Female 18 – 22 yrs. old.

Atlest 2 year college

course graduate.

23.25/hour

(185.00/day)

(4,810.00/month)

Technician 8 hrs/day

Computer Technician

graduate. TESDA NC II

passer is highly appropriate

22.50/hour

(180.00/day)

(4,680.00/month)

13

Recruitment Program

The Fullsaver’s Computer Dealer and Repair Shoppe will recruit applicants with

the required qualification which is shown below:

Table 4 – Position offered and its Qualification

Position Sex Status Age Qualification

Selling Clerk

Male or

Female

Single 18 to 23 y/o

At least high school

graduate.

With pleasing personality

and good communication

skill to a costumer.

Cashier Female Single 18 – 22 y/o

Al least 2 years college

level or graduate.

With pleasing

personality.

Technician Male Single 18 – 22 y/o

Must be Computer

Technician Graduate.

CHS NC II passer is

highly appropriate.

14

Training Program

Many business firms require their employee to attend training programs and

seminars to equip them with additional skills for there works and business trends.

The Fullsaver’s Computer Dealer and Repair Shoppe will conduct a one week

training program to trained and develop the highly level of skills of the employee and to

enhance their skills in their present job.

Fridge Benefits

According to Omnibus Rules Implementing the Labor Code, proponent must give

benefits to their employee. Here are some of the benefits Fullsaver’s Computer Dealer

and Repair Shoppe will provide to their employee: SSS Contribution, which every month

the employee must deduct 10% in their salaries. And PHILHEALTH and Holiday bonus

on every holiday on Philippines calendar.

Facilities

Fullsaver’s Computer Dealer and Repair Shoppe will be renting a space near the

Guinobatan ALECO. The space measures 30 sq.m. The proponents will rent the said

space with an amount of Php 4,500.00 monthly and a down payment advance worth

9,000.00. The space doesn’t still have a glass door and windows and so the proponents

will install some addition layer to make the building be attractable to the costumer.

15

Building Renovation and Rent Cost

Rented Space: 30 sq. m. with a rent price of Php 4,500.00 monthly

A down payment for the contract worth of Php 9,000.00

Renovation Cost: Php 95,000.00

Total Cost: Php 104,000.00

Table 5 - Utility Requirements and its Cost

UTILITIES COST/MONTH COST/YEAR

WATER Php 75.00 Php 900.00

ELECTRICITY Php 1,500.00 Php 18,000.00

Machinery and Equipment

The project will have to use some computer repairing tools for computer trouble shooting

and assemble

Table 6 - Machineries and Equipments’ Costs

Equipment Price

2 Soldering Iron 220.00

2 Convertible Screw Driver 80.00

Anti Static Wrist Band 300.00

Rubber Mat 30.00

Thermal Paste 50.00

Digital Tester 250.00

Crimping tool 80.00

Side cutter 40.00

Current Tester 25.00

Computer set for the teller 10,000.00

total Php11,075.00

16

Table 7 - Furnitures and Fixtures’ Costs

Description Quantity Unit Price Total Price

Divider 5 3,000.00 15,000.00

Table for repairing area 1 1,000.00 1,000.00

Table for the teller area 1 2,000.00 2,000.00

Office chair 2 740.00 1,480.00

Mono block chair 7 220.00 1,540.00

Padlock 3 750.00 2,250.00

Cabinet for the new supplies 2 900.00 1,800.00

Air Conditioner 1 6,500.00 6,500.00

total Php31,570.00

The materials needed for the operation of the business:

Table 8 - Materials’ Costs

Description Price

Personalized Receipt 2500 pcs. 400.00

Ball pen 12 pcs. 48.00

Stapler 100.00

Staple Wire 30.00

Canon IP1900 Printer 2,100.00

Record Book 30.00

Fire Extinguisher 10 lbs. 3,900.00

Total Php6,608.00

17

Table 5. Utility Requirements and its Cost

Waste Disposal

Fullsaver’s Computer Dealer and Repair Shoppe can manage the waste disposal

properly, because every Monday, Wednesday, Friday and Sunday is the schedule in

collecting all the garbage in barangay Ilawod, Guinobatan.

Table 9 - Cleaning Materials’ Costs

Cleaning Materials Price

Broom & Dust Pan Php. 105.00 – replace every 5 months

Trash Can 100.00

Feather Dust 60.00 – 2pcs. Good for 3 months

Mop 250.00 – replace every 5 months

Powder Soap 60.00 – 6pcs. Good for 2 months

Air Freshener 175.00 – replace every 2 months

Total Php750.00

Legal Requirements

1. Registration with BIR ( Bureau of Internal Revenue)

2. Registration of Business Name with DTI (Department of Trade and Industry)

3. Barangay Clearance and Business Permit

4. Mayors Permit

Table 10 - Legal Requirements Cost

Barangay Clearance Php 120.00

Mayor’s Permit 4,000.00

Business Tax 950.00

Business Plate 100.00

Sanitary Permit 250.00

Occupational Tax 400.00

18

Inspection Fee 500.00

Filing 100.00

Processing 120.00

Zoning 350.00

Electrical Inspection 250.00

Fire Inspection 350.00

BIR 300.00

DTI 5,750.00

Total Php 13,570.00

Status and Timetable of the Project

Fullsaver’s Computer Dealer and Repair Shoppe will start the renovation of the

site and recruiting of employee after securing all the permit and legal matters this August

2010 and the business will become operational in the month of December 2010.

(See at the next page for illustration of the timetable of the business)

19

Charter III

ECONOMIC ASPECTS

Market Study

Fullsaver’s Computer Dealer and Repair Shoppe will be constructed at

Guinobatan, Albay. The Plant Site in near to the main highway of the municipality. The

target consumers are families, office workers, and nearby neighborhood in demand of

personal computer and owners of personal computer having trouble with their system

unit. And as we know Guinobatan, Albay is one the productive municipality in Albay, by

some of the business establishments and home owners with a personal computer unit.

Demand Analysis

Knowing and studying the market are very important factors in a proposed

business in order to be sure if it has the potential or ability to grow in the market. The

proponent had conducted an observation method which result, the project is feasible and

has a potential to grow in the market which at 3rd

District of Albay.

Demand of Computer Unit for the last 3 years in Polangui to Guinobatan,

according to the statistic number of buyers in Denver Computer Shoppe and All

Electronics, Legazpi City

Table 10. Demand of Computer for the last 3 years from Polangui to Guinobatan,

Year Quantity Demand

(in peso)

2007 430,000.00

2008 550,000.00

2009 680,000.00

20

Supply Analysis

Looking of the supplies of the goods is not easy. However, with the help of the

partners of the proponent, the supplies and equipment were ease to find. For the brand

new computer unit, ASUSTek Corporation Philippines and MSI Computer Corporation

Asia became the wholesale supplier of the computer unit for the business. And JYM

Computer Center for wholesale supplier of computer parts and accessories.

Competitive Position

Since there are no other businesses same with Fullsaver’s Computer Dealer and

Repair Shoppe in Guinobatan, the prevailing prices of the products is implemented in but

if the project is buy a computer set in the selected supplier cost Php18,000.00 the

business will sell at the market with the cost of Php28,000 – Php38,000, increasing at

least 10% of the price. Because we all know that, the business wants to gain profitable

income and to reach the goal or objectives of the project.

Marketing Program

Fullsaver’s Computer Dealer and Repair Shoppe have two main strategies. The

first strategy focuses on attracting novice computer users including office workers and

family wanting to have computer unit in their home, and by providing them a novice

friendly computer unit.

The second, and most important, strategy focuses on pulling in the Computer

Shop Technician. Computer Shop Technician are extremely familiar with the computer

hardware and its accessories. This group of customers serves an important function at

21

Fullsaver’s Computer Dealer and Repair Shoppe. Technicians have knowledge in

computer repairing and hardware upgrading which novice computer users find attractive

and exciting.

And in order to make the business known by some of the costumers, it will

introduced by using flyers, enumerating its service given and their prices and the location

of the project.

Contribution to the Economy

The project should be construct because the proponents wants to help people’s

demands, the number of workers that the business to be employed is 3, with 5 months

contract, and renewable by the recommendation of the Manager or the Head Technician.

All workers will utilize the whole day from Monday to Saturday meaning there are no

schedule shifting will happen. The days per year that the project will operate are 365

days.

22

Chapter IV

FINANCIAL STUDY

Depreciation of the Fixed Asset

Building = Cost of the Rent and Renovation

Estimated Life

= 104,000.00

10 years

= Php 10,400.00

Machinery and

Equipment = Cost of Machinery and Equipments

Estimated Life

= 17,683.00

15 years

= Php 1,180.00

Furniture, Fixtures and

Cleaning Materials = Cost of Funiture, Fixtures and Cleaning Materials

Estimated Life

= 32,320.00

5 years

= Php 6,646.00

Legal Requirement = Cost of Legal Requirement

Duration

= 13,570.00

1 year

= Php 13,570.00

23

Project Cost

Fixed Cost

Building = 104,000.00

Machinery and Equipment = 17,683.00

Furniture, Fixtures and

Cleaning Materials = 32,320.00

Legal Requirement = 13,570.00

Total = 167,573.00

Table 11. Fixed Cost

Supply and Operation

Working Capitals = 800,000.00

Operating Expenses = 30,000.00

Pre-Operation Expenses = 20,000.00

Research and Development = 5,000.00

Total Project Cost = 855,000.00

Table 12.Project Cost

Salaries and Wages

Position Time Devoted Compensation Annually

Manager 9 hrs/day 7,500.00/month 90,000.00

Part Owners

(quarterly checking

of store without time

recording or duty)

3,500.00/month 42,000.00

Head Technician 8 hrs/day 5,000.00/month 60,000.00

Selling Clerk 8 hrs/day

20.00/hour

(160.00/day)

(4,160.00/month)

50,000.00

Cashier 8 hrs/day

23.25/hour

(185.00/day)

(4,810.00/month)

58,000.00

Technician 8 hrs/day

22.50/hour

(180.00/day)

(4,680.00/month)

56,160.00

Total Labor and Wages Php356,160.00

Table 13.Salarie and Wages

Table 6. Time Table

Activities AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Securing the

permits

Building

Renovation

Preoperating

Materials / And

Products

Evaluation

Recruitment

Program

Training Program

Start of Operation

Projected Balanced Sheet

For Five Years Period

Current Assets Year 1 Year 2 Year 3 Year 4 Year 5 Cash 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00

Inventory 890,000.00 890,000.00 890,000.00 890,000.00 890,000.00

Total Current Asset 1,690,000.00 1,690,000.00 1,690,000.00 1,690,000.00 1,690,000.00

Fixed Assets

Building 10,400.00 10,400.00 10,400.00 10,400.00 10,400.00

Machinery and

Equipment

1,180.00 1,180.00 1,180.00 1,180.00 1,180.00

Furniture, Fixtures

and

Cleaning Materials 6,646.00 6,646.00 6,646.00 6,646.00 6,646.00

Legal Requirement 13,570.00 13,570.00 13,570.00 13,570.00 13,570.00

Accumulated

Depreciation 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Total Fixed Assets 41,796.00 41,796.00 41,796.00 41,796.00 41,796.00

Capitals

Jaybe Bustamante 375,000.00

Louie Dy 375,000.00

Jay-ar Nuelan 375,000.00

Carj Nantiza 375,000.00

Total Capital 1,500,000.00

Projected Cash Flow

For Five Years Period

Cash Receipt Year 1 Year 2 Year 3 Year 4 Year 5 Sales 900,000.00 990,000.00 960,000.00 1,300,000.00 1,480,000.00

Invested 800,000.00 890,000.00 800,000.00 980,000.00 1,100,000.00

Total 1,700,000.00 1,880,000.00 1,760,000.00 2,280,000.00 2,580,000.00

Cash

Disbursement

Acquisition of Fixed

Asset 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00

Labor and Wages 356,160.00

380,000.00

390,000.00

430,000.00

480,000.00

Advertising 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00

Office Supplies 6,608.00 6,608.00 6,608.00 6,608.00 6,608.00

Telephone 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00

Water 600.00 600.00 600.00 600.00 600.00

Electricity 12,000.00 12,000.00 12,500.00 12,000.00 13,000.00

Research and

Development 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Miscellaneous 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00

Maintenance 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Taxes 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

Total 463,368.00 487,208.00 497,708.00 537,208.00 588,208.00

Net 930,000.00 910,000.00 923,000.00 970,000.00 1,300,000.00

Less 463,368.00 487,208.00 497,708.00 537,208.00 588,208.00

Total 466,632.00 422,792.00 425,292.00 432,792.00 711,792.00

Cash Ending 466,632.00 422,792.00 425,292.00 432,792.00 711,792.00

Income Statements

For Five Years Period

Department # of

Buyers Cost/Month Cost/Year I

Cost/Year

II

Cost/Year

III

Cost/Year

IV

Cost/Year

V

Computer Set 5 60,000.00 720,000.00 730,000.00 800,000.00 800,000.00 900,000.00

Tools 20 90,000.00 1,080,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,300,000.00

Device 10 50,000.00 600,700.00 700,000.00 750,000.00 800,000.00 900,000.00

Accessories 20 20,000.00 240,000.00 300,000.00 350,000.00

400,000.00 400,000.00

Others 30 80,000.00 960,000.00 970,000.00 1,000,000.00 1,080,000.00 1,000,000.00

Total 85 300,000.00 3,600,000.00 3,900,000.00 4,100,000.00 4,280,000.00 4,500,000.00

Chapter V

TECHNICAL STUDY

Plant Site