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

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 Bossings 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.

Chapter II
PROJECT SUMMARY

A. Name of the Business

The proposed project plan is Bossings Pizza. The main product
of the business is the pizza itself. The name Bossing refers to being a
leader. Thus, Bossings Pizza means a leading pizza. It will become
trending and popular. Thus, Bossings 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 Bossings 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.
C. Descriptive Definition of the Project
The proposed project plan is named Bossings 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 pizza box. The feasibility study was accomplished within a

month.
D. Project Long-Range Objectives
The Bossings 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 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.

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.
5

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.

Chapter III
MARKET STUDY
A. Product Description
The Bossings 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 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
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
Sliced pizza
Whole Pizza
(Solo)
Total

Price
15.00
60.00
75.00

Total Pizzas
Sold
120
20

Sales per
day
1,800.00
1,200.00
3,000.00

C. Supply
Since the proposed location of the proposed Bossings 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
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 Bossings Pizza will
also increase. The Bossings 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 Bossings Pizza prices are shown in the table

below:
Table 2. Bossings Pizza Prices
Kind of Flavor
Cheese and Cheese Pizza
Sausage Pizza
Hawaiian Pizza
Beef Burger Pizza
Mushroom Pizza

Solo Pizza
38
38
38
38
38

Buy 4 Pizzas for

Php145.00 in a box.

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 Shakeys Pizza.
Comparing to the price of the competitor, the whole solo pizza is
being sold to PHP60.00 with the same flavor. Hence, Bossings Pizza is
more affordable than the competitors pizza.

E. Marketing Program
Bossings Pizza product will be placed to a (7 (18cm)) 7 1/8 x 7 1/8 x 1
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 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 Bossings Pizza will be by flyers and by
recorded advertisement of the business for a lesser expense. Theres no need
9

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

since this is just a small business.

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
10

the customers which is good also for the body. The table below shows the
ingredients of the pizza.
Table 3. Ingredients of Bossings Pizza
Hawaiian Pizza

Cheese and Cheese

Pizza

Mushroom Pizza

Sausage Pizza

Beef Burger Pizza

Homemade pizza crust

Pizza sauce
Shredded mozzarella cheese
Sliced cooked ham
Pineapple chunks (canned or
fresh)
Homemade pizza crust
Shredded Cheese
Pizza sauce
Homemade pizza crust
Sliced Mushroom in can
Shredded Cheese
Garlic
Pizza Sauce
Homemade pizza crust
Pizza sauce
Sausage
Shredded Cheese
Homemade pizza crust
Pizza sauce
Grind beef meat
Shredded Cheese

B. Production Process
The process on how to make the Bossings 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 Bossings Pizza

11

Homemade
Pizzas

Delivery of the
Pizzas to the
Business Location

Frozen Pizzas

Customer's
Choice of Pizza

Customer's
Feedback in
Suggestion Box
(Optional)

Serving the
Product to the
Customer

Placing the
cooked pizza in a
box.

Cooking the Pizza

for 10 to 15 mins.

Future
Improvement of
the Business

C. Production Schedule
The proposed business hour for the proposed Bossings 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
Baker's Stove

Qty.
1

Brand/Description
La Germania
12

Total
Cost
17,000.00

Annual
Dep.
1,700.00

and Oven
Dough Mixer

Cooking pan

Cutting Board
Mugs and
Glasses
Plates and
Bowl

Kitchen
utensils
Roller knead
Cooler

Freezer
Trays
Cutlery
containers
Water
Dispenser
*Cleaning
Tools
Garbage
Containers
Wipers

Homemaker bench mixer

Teflon Coated Wok with
Cover
Crushed Bamboo Cutting
Board

2,000.00

200.00

800.00

160.00

100.00

20.00

15

Novo Brand

200.00

40.00

10

140.00

28.00

200.00

40.00

1
1

Plastic Plates and Bowl

Set of spoon and fork
including spatula and other
kitchen utensils such as
knife
Ordinary wood-made roller
knead
Orocan Koolit Ice Chest

150.00
500.00

30.00
100.00

1
2

Fujidenzo 22.0 CU.ft 1Door Solid Top Chest

Freezer FC-22 ADF (White)
Sterilite Mini Storage

27,500.00
250.00

2,750.00
50.00

150.00

30.00

600.00

60.00

1 Set

2
1

Novo Brand
ACL water dispenser (cold
water)

50.00
2
4

Novo Brand
Non-cotton wipers

Total

E. Plant Location
Figure 2. Location Map and Lay-out

13

200.00
50.00
49,840.0
0

5,258.0
0

F. Pizza Box Lay-out

14

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

Direct Materials

Particulars
15

Total Cost

Raw Materials

Sub-total
Cleaning Materials
Packaging Materials

Flour
Pizza Sauce
Cheese
Sausage
Grind Beef
Mushroom in can
Ham
Pineapple chunks
Garlic
Eggs
Margarine
Oil
Condiments
Dishwashing soap
Pizza Box 7 (18cm)) 7 1/8 x 7 1/8 x 1
with logo
Pizza Box (15 (39cm)) 15 1/8 x 15 1/8 x
1 with logo
Tie Box

Sub-total
Total Direct Materials

9,600.00
300.00
2,400.00
840.00
400.00
520.00
400.00
1,100.00
60.00
468.00
1,500.00
1,512.00
500.00
19,600.00
100.00
10,000.00
3,880.00
120.00
14,000.00
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

16

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
17

MANAGEMENT STUDY

The Bossings 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 doesnt
mean the delivery service of the business to the customers but he/she
delivers the uncooked pizzas from the bakers 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

Manager

1
Deliveryman/Storeke
eper

1 Kitchen Staff

Figure 3. Organizational Chart of the Business

B. Functions

18

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

Requirements

Personn

Salary per

Total Salary

month

per year

Php 5,000.00

Php 60,000.00

Php 3,000.00

Php 36,000.00

Php 6,000.00

Php 72,000.00

el
1
Manager

Owner of the
company and
knows how to
manage the

Kitchen Staff

business.
Knows how to
bake pizza and
willing to work.
No disease.
Preferably male;

Storekeeper/

20-25 years old.

Knows how to

man/Deliver

drive single

y man

motor; 20-25
years old

Total

Php
168,000.00
19

D. Time Table
Table 7. Time Table of the Business

Month
1
Particulars
Acquisition of fixed assets and direct
materials; completion of legal forms of the
business.
Installation of different equipment.
Sampling Promotion.
Start of the business

20

Month
2

Month
3

1 2 3 4 1 2 3 4 1 2 3 4

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
To be Acquired
Particulars
Fixed Asset
Tools, Machinery,& Equipment

Equity

(Sched. 2)
Vehicle (Single Motor) Sched. 3
Sub-total
Working Capital:
Operating Cost
Direct Materials (Sched. 4)
Goodwill expense- Food Stall
Sub-total
Total

Total

49,840.00
40,000.00
89,840.00
2,000.00
33,700.00
20,000.00
55,700.00
145,540.00

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.

21

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:
( Cost Residual Value )

Depreciation per annum

=
Useful Life

b. Projected Income Statement

Table 8. Income Statement of Bossings Pizza for the year ended
Dec. 31
Particulars
Sales (Sched. 8)
less: Cost of
Goods Sold
(Sched. 9)
Depreciation
expense
Gross
Operating
Profit
Less: Income Tax
Expense (Sched.
10)
Net Operating
Profit

Year 1
1,046,976.
00

Year 2
1,072,512.0
0

Year 3
1,098,048.
00

Year 4
1,123,584.0
0

Year 5
1,149,120.0
0

618,187.33

603,770.60

612,869.99

621,970.49

631,072.14

9,258.00

9,258.00

9,258.00

9,258.00

9,258.00

419,530.6
7

459,483.4
0

475,920.0
1

492,355.5
1

508,789.86

300,032.32
119,498.3
5

308,203.84
151,279.5
6

316,375.36
159,544.6
5

324,546.88
167,808.6
3

22

332,718.40
176,071.46

c. Projected Cash Flow Statement

Table 9. Cash Flow of the Bossings Pizza for the year ended Dec. 31.
Particulars
Cash Inflows
Sales
Add. Investments
Total
Cash Outflows
Acquisition of Fixed
Assets
Purchases of Direct
Materials
Office Supplies
Operating Costs
Labor/Administrative
Expense
Rent Expense
Goodwill expense-Food
Stall
Permits and Licenses
Payment for Income Tax
Expense
Total
Net Cash Flow
Add. Cash Balance,
Beginning

Preoperation

Year 1

Year 2

Year 3

Year 4

Year 5

0.00
150,000.00
150,000.0
0

1,046,976.0
0
0.00
1,046,976.
00

1,072,512.0
0
0.00
1,072,512.
00

1,098,048.0
0
0.00
1,098,048.
00

89,840.00

0.00

0.00

0.00

0.00

0.00

33,700.00
2,000.00

370,700.00
474.00
37,910.00

405,400.00
174.00
37,321.60

405,400.00
174.00
37,434.32

405,400.00
174.00
37,548.16

405,400.00
174.00
37,663.14

0.00
0.00

168,000.00
18,250.00

168,000.00
18,250.00

168,000.00
18,250.00

168,000.00
18,250.00

168,000.00
18,250.00

20,000.00
0.00

0.00
3,100.00

0.00
2,585.00

0.00
2,585.00

0.00
2,585.00

0.00
2,585.00

0.00
145,540.0
0
4,460.00

300,032.32

308,203.84

316,375.36

324,546.88

332,718.40

898,466.32
148,509.68

939,934.44
132,577.56

948,218.68
149,829.32

956,504.04
167,079.96

964,790.54
184,329.46

0.00

4,460.00

152,969.68

285,547.24

435,376.56

602,456.52

23

1,123,584.0
0 1,149,120.00
0.00
0.00
1,123,584.
1,149,120.
00
00

Cash Balance, Ending

4,460.00

152,969.68

285,547.24

24

435,376.56

602,456.52

786,785.98

d. Projected Balance Sheet

Table 10. Balance Sheet of Bossings Pizza for the year ended Dec.
31.
Year 1

Year 2

Year 3

Year 4

Year 5

152,969.
68
35,946.6
7
188,916
.35

285,547.
24
63,906.6
7
349,453.
91

435,376.
56
82,880.0
0
518,256
.56

602,456.
52
92,866.6
7
695,323
.19

786,785.
98
93,866.6
7
880,652
.65

49,840.0
0
40,000.0
0
89,840.
00
9,258.00
80,582.
00
269,498
.35

49,840.0
0
40,000.0
0
89,840.0
0
18,516.0
0
71,324.0
0
420,777.
91

49,840.0
0
40,000.0
0
89,840.
00
27,774.0
0
62,066.
00
580,322
.56

49,840.0
0
40,000.0
0
89,840.
00
37,032.0
0
52,808.
00
748,131
.19

49,840.0
0
40,000.0
0
89,840.
00
46,290.0
0
43,550.
00
924,202
.65

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

150,000.
00
0.00
119,498.
35
269,498
.35

269,498.
35
0.00
151,279.
56
420,777.
91

420,777.
91
0.00
159,544.
65
580,322
.56

580,322.
56
0.00
167,808.
63
748,131
.19

748,131.
19
0.00
176,071.
46
924,202
.65

269,498
.35

420,777.
91

580,322
.56

748,131
.19

924,202
.65

Assets
Current Assets
Cash
Direct Materials
Inventory
Total Current
Assets
Non-Current
Assets
Tools, Machinery
and Equipment
Vehicle (Single
Motor)
Sub-Total
Less: Accumulated
Depreciation
Total Non-Current
Assets
Total Assets
Liabilities
Tax Payable
Total Liabilities
Owner's Equity
Cap., Beg.
Add. Investment
Add: Net Income
Cap., End
Total Liabilities
and Owner's
Equity

25

D. Financial Analysis
a. Return on Investment
Return on Investment=Ave. Annual Net Income/Total Investments X
100%
Table 11. Return on Investment
Year
1
2
3
4
5
Total Net Income
Divided by Critical
Asset Life
Average Net Income
Total Project Cost
Return on
Investment

Net Income
119,498.35
151,279.56
159,544.65
167,808.63
176,071.46
774,202.65
5
154,840.53
145,540.00
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.

26

b. Payback Period
Table 12. Payback Period

Year
1
2
3
4
5
Total Project Cost
Less Cummulative
Total where investment
is to be recovered
Total amount to be
recovered
Divided by Net
Income+Dep.
Where the investment
is recovered
Quotient
Years
Months(Multiplied by
12)
Payback Period

Net
Income+
Depreciatio
n
128,756.35
160,537.56
168,802.65
177,066.63
185,329.46
145,540.00

Cummulati
ve Total

128,756.35
169,795.56
187,318.65
204,840.63
222,361.46

Payback
Period

128,756.35
16,783.65

128,756.35
0.13

1.56
Less than a
year

-1

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.

27

c. Net Income: Sales Ratio

Table 13. Net Income: Sales Ratio
Particulars
Net Income
Gross
Revenue
Net
Income
Rate

Year 1
119,498.35
1,046,976.
00

Year 2
151,279.56
1,072,512.
00

Year 3
159,544.65
1,098,048.
00

Year 4
167,808.63
1,123,584.
00

Year 5
176,071.46
1,149,120.
00

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.

28

E. Schedules
Schedule 2. Tools, Machinery and Equipment

Particulars
Baker's Stove and Oven
Dough Mixer
Cooking pan
Cutting Board
Mugs and Glasses
Plates and Bowl
Kitchen utensils
Roller knead
Cooler
Freezer
Trays
Cutlery containers
Water Dispenser
Cleaning Tools
Total

Total Costs
17,000.00
2,000.00
800.00
100.00
200.00
140.00
200.00
150.00
500.00
27,500.00
250.00
150.00
600.00
250.00
49,840.00

Annual
Dep.
1,700.00
200.00
160.00
20.00
40.00
28.00
40.00
30.00
100.00
2,750.00
50.00
30.00
60.00
50.00
5,258.00

EUL
10
10
5
5
5
5
5
5
5
10
5
5
10
5

Schedule 3. Vehicle (Single Motor)

Particulars
Vehicle
Total

Cost
40,000.00
40,000.00

EUL
10

Annual
Dep.
4,000.00
4,000.00

Schedule 4. Operating Cost

Particulars
Water Refill Expense

Year 1
3,600.0
0

Year 2
3,636.0
0
29

Year 3
3,672.3
6

Year 4
3,709.0
8

Year 5
3,746.1
7

8,500.0
0
7,560.0
0
18,250.
00
37,910.
00

Gas Refill Expense

Electricity Expense
Delivery Expense
Total

7,800.0
0
7,635.6
0
18,250.
00
37,321.
60

7,800.0
0
7,711.9
6
18,250.
00
37,434.
32

7,800.0
0
7,789.0
8
18,250.
00
37,548.
16

7,800.0
0
7,866.9
7
18,250.
00
37,663.
14

Schedule 5. Direct Materials

Particular
s
Raw
Materials
Cleaning
Materials
Packaging
Materials
Total

Preoperatio
n
19,600.0
0

Year 1
215,600.
00

Year 2
235,200.0
0

Year 3
235,200.0
0

Year 4
235,200.0
0

Year 5
235,200.0
0

100.00
14,000.0
0
33,700.0
0

1,100.00
154,000.
00
370,700.
00

2,200.00
168,000.0
0
405,400.0
0

2,200.00
168,000.0
0
405,400.0
0

2,200.00
168,000.0
0
405,400.0
0

2,200.00
168,000.0
0
405,400.0
0

Schedule 6. Office Supplies

Particular
s
Calculators
Notebook
Ballpen
Total

Year
1
300.0
0
90.00
84.00
474.0
0

Year 2

Year 3

Year 4

Year 5

0.00
90.00
84.00

0.00
90.00
84.00

0.00
90.00
84.00

0.00
90.00
84.00

174.00

174.00

174.00

174.00

Schedule 7. Direct Materials Inventory Summary

Particulars
Direct
Materials
Inventory,
Beg.
Add: Direct
Materials

Year 1

Year 2

Year 3

Year 4

Year 5

33,700.0
0
370,700.
00

35,946.67
405,400.0
0

63,906.67
405,400.0
0

82,880.00
405,400.0
0

92,866.67
405,400.0
0

30

Purchased
Direct
Materials
Available
Less: Direct
Materials
Used
Direct
Materials
Inventory,
End

404,400.
00

441,346.6
7

469,306.6
7

488,280.0
0

498,266.6
7

368,453.
33

377,440.0
0

386,426.6
7

395,413.3
3

404,400.0
0

35,946.6
7

63,906.67

82,880.00

92,866.67

93,866.67

Schedule 8. Sample Revenue

Particulars
Year 1
If 82 pizzas
Php 38
Year 2
If 84 pizzas
Php 38
Year 3
If 86 pizzas
Php 38
Year 4
If 88 pizzas
Php 38
Year 5
If 90 pizzas
Php 38

Annual Revenue

per day including the promos @

1,046,976.00
per day including the promos @
1,072,512.00
per day including the promos @
1,098,048.00
per day including the promos @
1,123,584.00
per day including the promos @
1,149,120.00

Schedule 9. Cost of Goods Sold Summary

31

Particulars
Direct Materials
Inventory, Beg.
Add: Direct
Materials
Purchased
Direct Materials
Available
Less: Direct
Materials
Inventory,End
Direct Materials
Used
Add: Labor/
Administrative
Exp.
Rent Expense
Goodwill ExpenseFood Stall

Year 1
33,700.0
0

Year 2
35,946.6
7

Year 3
63,906.6
7

Year 4
82,880.0
0

Year 5
92,866.6
7

370,700.
00
404,400.
00

405,400.
00
441,346.
67

405,400.
00
469,306.
67

405,400.
00
488,280.
00

405,400.
00
498,266.
67

35,946.6
7
368,453.
33

63,906.6
7
377,440.
00

82,880.0
0
386,426.
67

92,866.6
7
395,413.
33

93,866.6
7
404,400.
00

168,000.
00
18,250.0
0
20,000.0
0
39,910.0
0

168,000.
00
18,250.0
0

168,000.
00
18,250.0
0

168,000.
00
18,250.0
0

168,000.
00
18,250.0
0

0.00
37,321.6
0

0.00
37,434.3
2

0.00
37,548.1
6

0.00
37,663.1
4

2,585.00
174.00
621,970.
49

2,585.00
174.00
631,072.
14

Operating Costs
Permits And
Licenses
3,100.00 2,585.00 2,585.00
Office Supplies
474.00
174.00
174.00
Cost of Goods
618,187. 603,770. 612,869.
Sold
33
60
99
Schedule 10. Income Tax Expense Summary
Particulars
Income Before
Tax
Less: Basic
Amount

Excess
Multiply: Tax
Percentage
Sub-Total
Add: Basic Tax
Income Tax Due

Year 1
1,046,976
.00
500,000.0
0
546,976.0
0

Year 2
1,072,512
.00
500,000.0
0
572,512.0
0

Year 3
1,098,048
.00
500,000.0
0
598,048.0
0

Year 4
1,123,584
.00
500,000.0
0
623,584.0
0

Year 5
1,149,120
.00
500,000.0
0
649,120.0
0

0.32
175,032.3
2
125,000.0
0
300,032.3
2

0.32
183,203.8
4
125,000.0
0
308,203.8
4

0.32
191,375.3
6
125,000.0
0
316,375.3
6

0.32
199,546.8
8
125,000.0
0
324,546.8
8

0.32
207,718.4
0
125,000.0
0
332,718.4
0

32

Schedule 11. BIR Policy for the Individual Taxpayers

If Taxable Income is:
Not over 10, 000.00
Over 10, 000.00 but not over
30,000.00
Over 30,000.00 but not over
70,000.00
Over 70,000.00 but not over
140,000.00
Over 140,000.00 but not over
250,000.00
Over 250,000.00 but not over
500,000.00

Tax Due is
5%
500+10% of the excess over 10,000
2,500+15% of the excess over
30,000
8,500+20% of the excess over
70,000
22,500+25% of the excess over
140,000
50,000+30% of the excess over
250,000
125,000+32% of the excess over
500,000

Over 500,000.00

Schedule 12. Licenses and Permits

Particula
rs
Business
Permit
DTI
Registratio
n
Cedula
Purok
Clearance
Barangay
Clearance
Total

Year 1

Year 2

Year 3

Year 4

Year 5

2,450.00

2,450.00

2,450.00

2,450.00

2,450.00

515.00
75.00

0.00
75.00

0.00
75.00

0.00
75.00

0.00
75.00

10.00

10.00

10.00

10.00

10.00

50.00
3,100.00

50.00
2,585.00

50.00
2,585.00

50.00
2,585.00

50.00
2,585.00

33

Schedule 13. The Business Permit

Particulars
Billboard Fee
Sanitary Fee
Municipal
ecology
Mayor's Permit
Weight and
Measure
Zoning Fee
Basic Tax
Clearance
Total

Amount
250.00
300.00
300.00
500.00
50.00
50.00
1,000.00
2,450.0
0

34

35