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1.0 PROJECT TITLE: Its Cookie Time! Sugar Free Oatmeal Cookies

1.0 PROJECT TYPE: Food Production

1.0 PROPONENTS:

3.1 Types: Private Sector Group

SEC- Registered Partnership/ Profit (Corp. /Asso.)

3.2 Name: Its Cookie Time!

3.3 Address: 2 nd Floor Camiling Public Market

4.0 Coverage

4.1Location: Region III Province of Tarlac

4.1.1. 2nd

Floor Camiling Public Market4.1.2 Our intended market is people of all ages.

4.2 Product: Our product is cookies which refers to a small and hard, often sweetened, flour

based product.

5.0 Duration

5.1 Pre Implementation: To complete all the requirements in putting up our business we

need at least six months.

5.2 Implementation: We are targeting at least 2 to 3 years so that the project will be

implemented.

6.0 Funding Requirement:

6.1 Equity: Charmaine P20,000

Regie- P15,000

Glaiza- P15,000

Total: P50,000

7.0 Contact Person:

7.1 Name: Its Cookie Time!

7.2 Address: 2 nd Floor Camiling Public Market

7.3 Phone #: 09465448416

7.4 E-mail: [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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8.0The Project

8.1. Justification

Its Cookie Time! That is the name of our business. Our business will produce healthy

and delicious cookies. It is just an ordinary cookie which the main ingredients is oats and honey

but we assure everybody that it will change the eating lifestyle of people who will go to buy our

product. It will also help the progression of the town. The government and private sector groups

will help the sub sectors in advertising our product. Our product will be known in the community

or it will be just like the other product in the market. By the consistency of the policy, the

business will be successful. They cannot immediately notice our product because they think its

just an ordinary cookie. The direct benefits with the proponents will be the profit of the business

monthly and the indirect benefits will be the increase of the productivity. We all know that there

are so many people who suffer from diabetes and we assure everybody that our cookies willchange their eating lifestyle because our cookies will give them an extra ordinary impact that

will contribute health benefits to them. By giving discounts and freebies to the customers are the

strategies that we will implement in our business. The negative impact of our project to the

people in the environment is they cannot easily get what our product wanted to imply. If our

product will be known in our town it will help people to enhance their healthy eating lifestyle.

The impacts of our product in any interested groups are they will love our product because it is

sugar free and healthy. Our product will make the people realize that instead of eating junk

foods or any kind of food which is not healthy, they just buy our cookies and eat it because it is

healthy. Private sector groups will help to determine whether our product is really healthy and

sugar free cookies.

8.2Project Description:

Cookies refer to a small and hard, often sweetened, flour based product. Since it is

already known in the market, the proponents innovation is to create a product by selecting

healthy and beneficial food using oats plus honey and turn them to delicious sugar free oatmeal

cookies.

8.3Objectives:

8.3.1. Development Objectives:

Our foremost priority is to provide excellent food services to the people and surrounding

community by establishing a successful enterprise. Our development objectives are establishing

high quality jobs for target food service employees, including good wages and benefits, career

advancement opportunities access to training and capacity building, participation in decision

making and opportunities for ownership.8.3.2. Immediate Objectives:

We are looking forward that our product will be in the top of the line in healthy eating lifestyle

and producing sugar free and nutritious oatmeal cookies. For five years operation, the enterprise

can attain more than six branches around the country. And by making a trademark in food


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industry of introducing innovated products that observes health benefit products and affordable

price to the market.

8.4Beneficiaries:

We are going to focus people of all ages who seek for healthy food. We are going to

provide sugar free and healthy cookies. Our business will also create opportunity for those who

are high school graduate who are looking for job. Our business will also increase tax that

Camiling will gain.

8.5 Location:

The main project is located at the 2 nd floor of Camiling Public Market. Busy foot traffic

where the number of people who pass by the area. It is important that business will mostly rely

on walk-in customers mostly students, employee, professionals and commuters in the town who

will be the component of the target market including the health conscious individual and sugar

level challenged persons.

8.6 Scope:

8.6.1 In creating this feasibility study, the group concentrated on the financial viability of

the project as the primary concern. All business is created with the intent of making money.

After this criterion is resolved, the group concentration on the design concept to make sure that

the cookie stand is one of a kind. The human factor is also not forgotten, we incorporate design

and management aspect that enhance the working condition of the employees above and beyond

the set standards of the government. The environment impact of the project was also given quite

a consideration. Materials used are environmentally friendly and various type of recycling

program is incorporated in the management.

8.6.2 Our strategy will be giving 20% discount to customers who will buy 50pcs. of the

product.

Its Cookie Time!


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Another is posting of banner at least 1meter away before reaching the store. Banners in

front of the store will get the attention of the people passing by the business area.

8.8 Budgetary Requirements:

Component/Activity

ProponentComponent (P)

From Other Sources (P)

TOTAL (P)

Putting of Equity 15,000 --- 15,000

Obtaining of Financing

10,000 --- 10,000

Registration 5,000 --- 5,000

Installation of Equipment

10,000 --- 10,000

Start of the

NormalOperation of theBusiness

10,000 --- 10,000

8.9 Project Analysis:

8.9.1. Competitiveness Aspect

a. The price of our product is affordable compared to other cookies of our competitors.

We are able to put low price for the customers can afford to buy our product.

b. Our product can be substitute for food which is rich in sugar.

c. Our product can be also exported because it is healthy and sugar free.

8.9.2. Market Aspect

a. Our product can assure customers that they will benefit from it because it is healthy.

b. It is essential to combine the findings on the demand and supply situations. As the

demand increases, the supply of the product decreases or vice versa.

c. Our target market is those people of all ages.

d. Our business must focus on the marketing aspect which the companies 4Ps which are

the products, price, place and promotion for the successful outcome of the business.

e. Selling Expenses are expenses incurred and related to making sales. The

marketing/selling expenses that we think our project will encounter are sales salaries & wages,

advertising, travel, rent, utilities, telephone, commissions, depreciation, office supplies, postage,

etc.

f. Our projected selling price for our product is 8 pesos each. In a small box it has 12 pcs.

cookies worth of P100.00, in medium box it has 15 pcs. cookies worth of P125.00 and in large

box it has 20 pcs. cookies worth of P150.00.

g. Other basic assumptions that are included in our project are frictionless markets,rational investors, and equal access to market prices and information.


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8.9.3 Technical Aspect

a. If you are selling a product, your reader will want to know what it is, what it does, and

its features and benefits. Consider including pictures if they would help your reader get a better

understanding of your product. Discuss its size, shape, color, cost, design, quality, capabilities,

technological life-span and patent protection. You may also wish to explain how it is produced,

the materials required, and the type of labour needed. If you offer your customers a service,

explain what that service(s) are, how they work, and what they need address in the marketplace.

Where will you operate? What makes your service different? What materials or equipment is

needed? What are your days and hours of operation? Explain the steps in your service process

and the benefits you offer your clients. Write this section with enough information to satisfy an

outsider's need to understand your service without boring them with trivial details .

b. Cookie Delight used a stall for its commercial space it has enough space to produce

number of cookies and to serve customers demand.

c. Operating Schedule

Working Days Working Hours Number of Hours

Monday 8am-5pm 9 hours

Tuesday 8am-5pm 9 hours

Wednesday 8am-5pm 9 hoursThursday 8am-5pm 9 hours

Friday 8am-5pm 9 hours

Saturday 8am-5pm 9 hours

Total number of

working hours

54 hours

d. Recipes for oatmeal cookie sugar free appear in many cookbooks, and the basicingredients are flour, honey and eggs. Other ingredients may vary depending on the recipe but

may include melted butter, salt, vanilla extract and almond extract. Commercial manufacturers

may also add baking soda and baking powder.

e. Machine and equipment requirements are stall, microwave oven, mixer or hand mixer.

Stall 15,000

Microwave Oven 18,000

Mixer or Hand Mixer 5,000

f. Manpower requirements of our business are baker and cashier/saleslady.

g. The requirements needed for the facility and building of our business is the entire

machine, equipments and other supplies to be used in our business.


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i. Utilities needed in our business are water, electricity, and rental of the commercial

space.

j. We required that twice a month is the equipment repair and maintenance schedule in

our business.

k. The best method of managing waste is prevention and reduction, which can be

achieved in a number of ways like recycling.

l. Production Cost

Product Cost

Rental 2,500

Machine and equipments 23,000

Utensils 4,210

Packaging Supplies 12,000

Supplies 7,100

Registration 1,190

8.9.4 Financial and Economic Aspect

a. Identification of costs and benefits, and related information/ assumptions

The financial analysis of our project can identified as physical goods, labour, contingency

allowances and taxes. These purposes can help our project to ascertain the investment of our

project. Their function is to paint a current picture of the asset that can be compared to similar

businesses or predict future performance based on past performance. The economic analysis of

our project also includes working capital, transfer payments and depreciation which also help our

project to determine if it will be a successful one.

If our business will be able to achieve our goal, it is not impossible that we can put up

another branch of it and we will make sure that it will be wider than the first one.

b. Conduct of financial Analysis

We conduct financial analysis so that we can determine the viability of our project.

Benefit Cost Ratio is one of the discounted measure in our project proposal attempts to

summarize the overall value for money. The higher the BCR the better the investment. The net

present value (NPV) is the major criterion at which the financial viability of our project is

evaluated to. This criterion requires that each component of our project should have a positive

NPV to become financially viable since only at this point that our project can expect not only torecover the initial capital investment and to earn a rate of return equal to the discount rate, but

also to receive an addition to the real net worth equal to the positive amount of the NPV. The

FIRR takes into consideration the initial investments, working capital and cash inflows generated

throughout the project life. The FIRR takes into consideration the initial investments, working


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capital and cash inflows generated throughout the project life. The purpose of return on

investment is to measure per period, rates of return on money invested in an economic entity in

order to decide whether or not to undertake an investment. In Break-Even Analysis it can be

observed that the cookie production component performs very well as far as achieving break-

even sales is concerned at all the assumed changes of rates in revenues and operating expenses.

Result on this analysis is summarized as follows:

Selling Price per box of cookies: (Base on demand)

No of box of cookies (Per annum)

Assumptions a b c

Break Even Sales P 100.00 P85.00 P70.00Projected Sales P 150.00 P 125.00 P 100.00Projected Profit

Margin at Break-EvenSales

P50.00 P40.00 P30.00

c. Conduct of Sensitivity Analysis

The sensitivity analysis is undertaken to determine the effect of changes of important variables inthe financial projections. The following hypotheses were considered:

Projected revenues increased by 30 and 50 percent.

Projected costs decreased by 30 and 50 percent.

Estimated interest rate reduced to 6 percent.

d. Preparation of projected financial statements:

Its Cookie Time! PROJECTED CASH FLOW

For the year ended December 31, 2013, 2014, 2015, 2016, 2017

2013 2014 2015 2016 2017Cash Flows fromOper. Activities:Recipients fromCustomers

804,630 865,900 900,100 930,800 950,000

Payments toSuppliers

90,340 100,500 120,900 130,650 150,000

Payments for Salaries

96,000 96,000 96,000 96,000 96,000

Payments for other Oper.Expenses

85,689.92 90,000 95,800 100,100 105,600


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Cash Generatedfrom Oper.Activities

532,600.08 579,400 587,400 604,050 598,400

Income TaxesPaid

5,106.58 5,106.58 5,106.58 5,106.58

Net Cash usedfrom Oper.Activities

532,600.08 574,293.42 582,293.42 598,943.42 593,293.42

Cash FlowsInvestingActivities:Purchase of Property andEquip.

9,210

Net Cash used inInvesting

Activities

9,210

Cash Flows fromFinancingActivities:CapitalInvestment

50,000

Withdrawal of the Partners

90,000 105,000 120,000 130,000 135,000

Net Cash Flowsfrom FinancingActivities

(40,000) 105,000 120,000 130,000 135,000

Net increase incash

483,390.08 469,293.42 462,293.42 468,943.42 458,293.42

Cash Balance,Beginning

483,390.08 959,683.50 1,421,926.92 1,890,870.34

Cash Balance,End

483,390.08 959,683.50 1,421,926.92 1,890,870.34 2,349,163.76

Its Cookie Time! PROJECTED BALANCE SHEET


2013 2014 2015 2016 2017ASSETSCurrent Assets:Cash 483,390.08 469,293.42 462,293.42 468,943.42 458,293.42InventoryTotal CurrentAssets

483,390.08 469,293.42 462,293.42 468,943.42 458,293.42

Non-CurrentAssets:KitchenEquipment

4,210 5,000 6,000 7,000 8,000

Accum.Dep.-Kitchen Equip.

421 500 600 700 800

Store Furnitureand Fixtures

5,000 6,000 7,000 8,000 9,000

Accum.Dep.-F&F

500 600 700 800 900


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Total Non-Current Assets

8,289 9,900 11,700 13,500 15,300

TOTALASSETS

491,679.08 479,193.42 473,993.42 482,443.42 473,593.42

LIABILITIES

ANDPARTNER'SEQUITY:Income TaxPayable

5,106.58 5,106.58 5,106.58 5,106.58 5,106.58

SSS Payable 2,500 2,500 2,500 2,500 2,500Phil HealthPayable

2,500 2,500 2,500 2,500 2,500

TOTALLIABILITIES:PARTNER'S

EQUITYCharmaine,Capital

185,626.60 200,981 186,920 198,100 200,100

Regie, Capital 147,972.95 134,052.92 138,483.42 137,118.42 131,693.42Glaiza, Capital 147,972.95 134,052.92 138,483.42 137,118.42 131,693.42TOTALPARTNER'SEQUITY

481,572.50 469,086.84 463,886.84 472,336.84 463,486.84

TOTALLIABILITIESAND

PARTNER'SEQUITY

491,679.08 479,193.42 473,993.42 482,443.42 473,593.42

Its Cookie Time!PROJECTED INCOME STATEMENT


2013 2014 2015 2016 2017Sales 483,390.08 959,683.50 1,421,926.92 1,890,870.34 2,349,163.76Less: Cost of Sales

90,340 100,500 120,900 130,650 150,000

Gross Profit 393,050.08 859,183.50 1,301,026.92 1,760,220.34 2,199,163.76Less:OperatingExpensesDepreciation 2,400 2,400 2,400 2,400 2,400Utensils 4,210 4,210 4,210 4,210 4,210PackagingSupplies

12,000 14,000 16,000 18,000 20,000

Advertising 6,000 6,500 7,000 7,500 8,000Utilities 21,081 22,100 23,000 23,900 24,800Miscellaneous 10,000 10,500 11,000 11,500 12,000Rental 30,000 30,000 30,000 30,000 30,000Pre-taxEarnings

85,691 89,710 93,610 97,510 101,410

Less: IncomeTax Expense

5,106.58 5,106.58 5,106.58 5,106.58 5,106.58

Net Income 302,252.50 764,366.90 1,202,310.34 1,657,603.76 2,092,647.18


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8.9.5. Socio- Economic Aspect

a. An economic analysis was done to determine the projects desirability in terms of its

net economic contribution to the society. Data from the market, technical and financial aspects of

the project study were utilized to project the economic costs and benefits of the project. Among

the items considered were the resource flows emanating from the project, the externalities and

other intangible effects of the project. The proposed business will create employment and income

for some individuals and become part of the solution to solve the employment problem of the

community.

b. As a result, economic status of these people will uplift and will increase as well.

Government will also benefit from this proposed business through taxes that will be paid by the

paid by the company to assist different government projects. The bigger income of the business

would mean a bigger tax that will be remitted.

8.9.6. Organizational/Management Aspect:

a.

b.

JOB TITLE JOB SPECIFICATION JOB DESCRIPTION

BAKER Male/ Female 21- 30 years old At least 1 year

experience in baking Passed in Medical

Examination

Bakers mix and bakeingredients to produce cookies.

SALESLADY/CASHIER

Female

21- 25 years old Should be able torepetitious work accurately;

Need basicmathematical skills;

Need good manual

Cashiers total bills, receivemoney make change, fill outcharge forms, and give receiptsat supermarkets, departmentstores, gasoline servicestations, restaurants and manyother businesses.

OWNER/MANAGER Charmaine Angelica M. AcostaRegie G. AlcalaGlaiza Mariz S. Ramilo

SALESLADY/CASHIER

BAKER


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dexterity; Should be neat in

appearance;


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Republic of the PhilippinesTarlac College of AgricultureMalacampa, Camiling, Tarlac

Institute of Business and Management

A FEASIBILITY STUDY OF COOKIE PRODUCTION

Submitted by:Charmaine Angelica M. Acosta

Regie G. AlcalaGlaiza Mariz S. Ramilo

BSBA IV-B

Submitted to:Orlando H. Locading Jr.

Harold DC. Pilot

Instructors

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