Final Business Plan for Print

7/31/2019 Final Business Plan for Print

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ABSTRACT

Title : Iron Works: A Product Expansion

Total No. of Pages :

Authors : Acupan, John Cyrus M.

Dimayuga, Lalaine A.

Laylo, Louisa Mae C.

Marquez, Joy Florence E.

Type of Documentation : Business Plan

Name and Addresses of Institution : Lyceum of the Philippines University

Capitol Site, Batangas City

Summary

The company, Jose Vincent Enterprises, currently engaged in providing

services and products of aluminum and glass, will be extending its ability to

provide more services to its customer through embracing the needs of its clientsof iron works, specifically window grills and gates. Service and product expansion

has come up due to the demand of its existing glass and aluminum clients.

For the reasonable feasibility of the demand and income from the

additional service and product, the company has been encouraged to increase its

range of market in the area of Laguna, in Pagsanjan and its neighboring

municipalities.

The company believes that, through its new product, it will be able to provide

safety and security to its clients.


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SECTION I

THE EXECUTIVE SUMMARY

I. Company Profile

Jose Vincent Glass and Aluminum Enterprises is primarily engaged in the

supply and installation of glass and aluminum made doors, windows and other

products. The entity seeks to provide customers high quality products that would

satisfy their expectations when it comes to installing relevant parts of their

building.

The entity was founded on June 18, 2000 by Rolando Marquez at

Pagsanjan, Laguna and after 12 years of operation, the entity already

established its market from Pagsanjan, and other nearby municipalities in

Laguna. The management is headed by the manager and the assistant manager

who are Mr. Rolando Marquez and Mrs. Rebecca Marquez respectively.

II. Nature of the Products and Services

The iron work products that will be offered are similar to what is out in the

market nowadays. The product is customized; the design will depend on

customers specification.

III. Size and growth of the market

Today, we can notice that most residential houses, apartments and

commercial buildings and establishments uses metal grills, gates, roll ups and

other metal-made products. The explanation for this is that, at this moment

people are aware that theft is one of the highest criminal offenses, and for safety

purposes, iron grills for windows to be provided by the company, for example,


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would be a big help for household and other business establishments. For this

reason, demand for iron works increases.

IV. Background of the management

Jose Vincent Enterprises will be managed by the owner/manager,

Rolando Marquez. Financial activities are to be handled by Rebecca Marquez,

the assistant manager. Internal production such as building and constructing

products will be supervised by internal operation supervisor and the installing of

the finish products will be supervised by the external operation supervisor.

V. Financing Requirements

The financial requirement of the business plan will be obtained from the

earnings of the entity. The required capital is worth P 600, 000.00 It is estimated

that the company will recover what it has invested for a payback period of 2.16.

VI. Key projections

The proponents made financial assumptions for the first five years of

operations. Projected sales, gross profits, and net income were prepared to

determine the firms profitability, liquidity and solvency. Financial assumptions

were also made by the proponents to arrive at reliable and reasonable figures in

doing the financial statements.

VII. Proposed used of funds

The fund will be use for the purchase of facilities, equipment and tools

required in making ironwork products. The machines that will be purchase are

welding machine, cut-off machine, bar cutter, press drill, grinder, electric drill. The

fund will also be allocated in purchasing tools such as hammers, maso de bola,


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face cover, pliers, level bar, and vise grief. Residual part of the fund will be used

in purchasing raw materials needed.


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SECTION II

BUSINESS DESCRIPTION

I. Mission

Jose Vincent Enterprises seeks to provide customer high quality glass and

aluminum product such as doors and windows and ironworks products such as

grills and gates. It will ensure that products and services are offered at a

reasonable price, maintain timely service, accurate delivery and continuous

positive growth, and provide opportunities for both the employees and

customers.

II. History behind the idea

Today, establishments who offer glass and aluminum products and

services also offer iron works is a trend. For this reason, some walk-in customers

who are asking for the supply and installation of aluminum products also ask

regarding the iron work products and services.

In order that Jose Vincent Enterprises simultaneously join the competition,offering iron work products is considered.

III. Companys current legal form

Legal form of Jose Vincent Enterprises is a sole proprietorship which is

the simplest form of business and the easiest to register, through the Bureau of

Trade Regulation and Consumer Protection (BTRCP) of the Department of Trade

and Industry (DTI). It is owned by Rolando Marquez who has full control and

authority of its own and owns all the assets, and answers all liabilities or losses to

the extent of his personal assets. It is run by his means that it is highly flexible

and the owner retains absolute control over it.


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The problem, however, is that a sole proprietor has unlimited liability.

Creditors may proceed not only against the assets and property of the business,

but also after the personal properties of the owner. In other words, the law

basically treats the business and the owner as one and the same. This uniform

treatment also has important tax implications. Partnerships and corporations may

lessen their tax liability through a myriad of business expenses and other tax

avoidance techniques. These tax deductions may not be applicable to a sole

proprietorship. Also, the potential growth and reach of a sole proprietorship pale

in comparison with that of a corporation.

IV. Proposed Entry Strategy and Timeline of Events

In order that people be aware that Jose Vincent Enterprises is now

offering iron work products and services, management will be giving pamphlets

and will post out tarpaulins and posters to the targeted market areas. Also, since

the entity has a good reputation as to the quality of their work, contractors and

other client may recommend the entity.


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Gantt Chart

Activities January February March April May June

1. Plant Building

(installation of

electricity, etc.)

2. Materials

Procurement

3. Hiring of Workers

4. Entry to the Market

(proposed entry

strategy)

5. Start of Operation

(Opening to the

Market)


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V. Description of Initial Product and Services

The product and services that will be offered will be products made out of

metal such as grills and gates. The entity will also accept repairs, and it will make

sure that the products whether newly created or repair will be of great quality so

that the entity will meet its mission of satisfying the customers needs. The entity

will also make sure that design of the products is in accordance of the customers

specification.

VI. Product Research and Development

To ensure the quality of the productive, researches are done as to what

brands of tools and equipments that will produce great quality products. Product

scanning will be used as a basic tool in analyzing the products trends. In this

case, the company will be able to look for reliable and credible products that

would not fail them in providing services to their prospective clients.


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SECTION III

MARKET ANALYSIS

I. Description of the Industry

In adding up a new product, businessmen must be aware of the industry

they are entering to. The product must be with high demand in order to have a

return in the capital invested.

Nowadays, not only the awareness of criminal rates, like theft in

households and business establishments, is increasing but the criminal rate

itself. Thus, for the purpose of safety and security to homes and business

establishments, grills to windows and gates are demanded. If the demand is

increasing, so thus the supply must be to meet the needs of the customers.

Competitors are not a great threat in entering the said industry due to the

established trust and credibility of the company to its customers and contractors.

The probability of the constant growth of demand is more likely to be feasible.

II. Targeted Markets

For the reason that Jose Vincent enterprises do have a good reputation in

installing and supplying aluminum and glass products, it is highly probable that

customers will also trust the entity in iron work business. The primary targets for

the product are the households, located in Laguna especially Pagsanjan and

nearby towns such as Lumban, Kalayaan, Paete, Pakil, Pangil and Cavinte.The

households is one of the primary target since they are using ironworks products

for the improvement of their houses, or if not, for the construction of their new

houses. Next is the entrepreneurs who plan to open their business and the

company will the one to supply for their iron works needs


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III. Marketing Research

Marketing Research refers to the systematic, objective and exhaustive

gathering, recording and analyzing of data relevant to a specific marketing

situation. It is important for every business because this will serve as assistance

for management to come out with sound decisions.

Window grills are a part of a long-standing tradition of incorporating

security features with decorative accents in order to maintain the buildings look.

Window grills are available in a wide variety of designs and features such as

retractable grills and quick-release mechanisms.

Any opening in the structure of a building can become a potential point of

unauthorized entry. Windows are essentially susceptible to this in view of the fact

that some windows may be facing a deserted street. The glass pane allows

intruders and burglars to see through the windows and plan the break-in. Window

grills serve as protective shields for the window since breaking or cutting through

metal bars is extremely difficult.

By forming a protective covering over the windows, window grills protect

the breakable glass from damage caused by vandalism or attempted break-ins.Window grills can be designed in such a way that they are raised off the surface

of the window and the window surface is not easily accessible from the outside.

IV. Competition

There are already existing competition in the industry of iron works in Sta.

Cruz, Laguna, a nearby town of Pagsanjan and the center of business forLaguna. However, clients who acquire glass and aluminum products are the

source of demand of iron works thus shows a highly feasible demand.

In order to have a competitive advantage, Jose Vincent Enterprises will

assure costumer that products offered are of high quality and at a reasonable

price.


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V. Barriers to Entry

Introducing a new products and services offered is not an easy task.

There are lots of entry barriers. First, not all people will know that the product is

offered to the market by the company. Iron works industry is not new in the

market, so there are already existing competitors who already established their

market. Capitalization is another barrier. Entering this industry requires the

purchase of different machines and tools that will be used in operations. Another

barrier is pricing, the main material use is metal and its price in the market is

fluctuating, in order to have great return, management must assess when to

order and how many will be held as inventory.


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SECTION IV

THE MANAGEMENT TEAM

I. Background and Primary Responsibilities of the Management Team

Management is composed of manager, assistant manager, internal

operation supervisor and external operation supervisor.

Mr. Rolando Marquez, 45 years old, the manager will concentrate on client

contacts and will coordinate all projects of the entity.

Mrs. Rebecca Marquez, 43 years old, the assistant manager, will be in

charge in managing the financial activities of the entity.

Mr. Artemio Mendoza, the internal operation supervisor, will concentrate

on the direct supervision of workers; he will be assigned to ensure the quality of

the products.

Mr. Oliver Magpantay, will do the supervision of workers in installation of

the products created, he will ensure that products are properly installed.


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II Organizational Structure

III. Ownership

Jose Vincent Enterprises is a sole proprietorship entity that was formed on

June 18, 2000. It is owned by Rolando Marquez. The entity is registered to DTI to

operate under the said name in line of glass and aluminum industry.

Manager

InternalOperationSupervisor

ExternalOperationSupervisor

Worker

Worker

Worker

Worker

AssistantManager


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SECTION V

OPERATIONS

I. Marketing Strategy

These are the strategies that will be using in order for Jose Vincent

Enterprises to accomplish its objective in the market through selling its new

product and service of iron works to its target market.

Promotion Strategy. Promotion plays a vital role for an organization that it will

be able to introduce its products and services especially the new ones. It serves

as a communication bridge that connects the organization and its market tointeract with each other in the terms of business. Introduction of Jose Vincent

Enterprises product iron works would not be a hard task due to its established

name in the industry of aluminum and glass products. Through referrals of their

known contractors in the business, their new product and service iron works -

would be introduced to old and new customers. In this way of promotion, target

markets would be knowledgeable about the new offered product and service thus

bringing a large probability that the customers would be persuaded in patronizing

it.

Product Strategy. Each product has its own distinctiveness and innovations.

Customers always consider its usefulness and availability. Steel products are

considered substitutes for aluminum and glass in some cases. The needs of the

clients will not stick to glass and aluminum, many would also be needing iron and

grill products. In order to keep the clients through supporting their needs

additional product like this can help.

Pricing Strategy. Industry analysis will be a great help in order to scan the

competitors prices. Steel products and services price of the enterprise will not

go beyond the boundaries of the trend of prices in the industry. This will help the

enterprise to recover the initial costs of the new product and service. Moreover,


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free additional adjacent service can be offered in order to attract more clients. In

this kind of pricing strategy it is likely that the recovery of the cost will be

inevitable and at the same time, it will not hurt the clients budget.

Placement strategy. In the neighboring municipalities of Pagsanjan, where JoseVincent Enterprises is located, lie a number of prospective clients. In this case,

instead of collecting their needs of steel works in Sta. Cruz which is farther than

Pagsanjan, they can easily access their need in Pagsanjan. Through this, even

the clients were able to save costs like transportation costs.


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II. Production Plan

Plant Layout


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Plant Site

To Lumban To Cavinti

Plaza Zaguirre

Jose Vincent Enterprises

To Sta. Cruz


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Production Flow

Legend:

Inspection

Storage

Operation

Transportation

Order

Installation

Raw Materials

.Raw Materials

..Raw Materials

Raw Materials

Product

. Product


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Production Schedule

Manufacturing Process.

1. Measurement of the area where window grills and roll ups are to be

place.

2. Cutting the metal according to the size giving allowance for the design

agreed.

3. Putting the design to the metal.

4. Putting together the cut metal.

5. Usage grinder to smoothen edges.

6. Painting with red oxide: it will serve as protection against rust.

7. Installation.

Machines and Equipment. The machines and equipment that will be used are

welding machine, cut-off machine, bar cutter, press drill, steel vise, grinder, and

electric drill.

Utilities.The entity will be needing electricity for operations this will be provided

by First Laguna Electric Corporation (FLECO).

Waste Disposal. Proper Disposal will not be a problem because excess or

small-sized metal may be use for future projects and if not these may be produce

proceeds from selling scrap materials.

III. Personnel

The administration department of the company will be the one assigned in

administering the additional service and product to be provided for the

customers. For the manufacturing department, there will be at least four persons

to be hired. Each of them must possess the knowledge of making iron works to

produce good quality products. At least one of the hired workers must know how

to drive for the delivery purposes. The entity does not need to hire a large


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number of workers since the product is still at the introduction stage.

Furthermore, the entity is planning to purchase machineries that will make the

production process as fast as it could.

IV. Customer Support

It is important for both the entity and the customers to have contact

information. Customers need to know how can they reach the entity so that they

may inquire their questions regarding to the products and services offered. There

are different ways to contact the entity, through email address

[email protected], and landline number (049) 501 5183. Clients may

also inquire the personnel of Jose Vincent Enterprises, they may call Roland

Marquez at 09216581005 or Rebecca Marquez at 09162983290.

V. Future Research and Development Plans

In the succeeding years, the proprietorship will intend to expand not only

the business, but also the knowledge about the market trends, customers,

products and new technology available in the market. In enhancing the

knowledge of the workers, the entity will ensure that internal and external training

will continuously does.

The entity will intend that sales will increase accordingly.
mailto:[email protected]:[email protected]


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SECTION VI

CRITICAL RISK

I. External Risk

There are also risks which arise due to the events occurring outside the

business organization. Such events are generally beyond the control of an

entrepreneur. These factors are economic and natural factors.

Economic factors are the most important causes of external risks. They

result from the changes in the prevailing market conditions. They may be in the

form of changes in demand for the product, price fluctuations, changes in tastes

and preferences of the consumers and changes in income, output or trade

cycles. The conditions like increased competition for the product, inflationary

tendency in the economy, rising unemployment rate as well as the fluctuations in

world economy may also adversely affect the business enterprise. Such risks

which are caused by changes in the economy are known as 'dynamic risks'.

These risks are generally less predictable because they do not appear at regular

intervals. Natural factors are the unforeseen natural calamities over which an

entrepreneur has very little or no control.

II. Internal Risk

Business risks are of a diverse nature and arise due to innumerable

factors. It is inevitable for one company to encounter critical risks as a result of

different factors particularly internal risk in which arise from the events taking

place within the business enterprise. The proponents focused on internal risks

such as human, technological and physical factors.

In accordance with human factors, they may result negligence and

dishonesty of an employee and also, failure of suppliers to supply the materials

or goods on time or default in payment by debtors may adversely affect the

business enterprise. In technological factors are the unforeseen changes in the

techniques of production or distribution. If there is some technological

advancement which results in products of higher quality, then a firm which is


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using the traditional technique of production might face the risk of losing the

market for its inferior quality product and in physical factors result in loss or

damage to the property of the firm. They include the failure of machinery and

equipment used in business; fire or theft in the industry; damages in transit of

goods, etc.

III. Contingency Plans

The business venture will maintain contingency and emergency fund to assume

that all unexpected problems that may arise can be immediately addressed and

ultimately be given solution.


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SECTION VII

THE FINANCIAL PROJECTIONS

1. Jose Vincent Enterprises is registered as a VAT business.

2. Sales are equal to cost plus 100% mark-up and additional allowances for

the purpose of bidding.

3. Cost of sales includes only cost of materials, any labor attributable is to be

recognized in salaries and wages expenses under operating expenses.

4. All purchases and sales are assumed to increase 3.15 due to the effect of

inflation.

5. All cost will increase by 3.15% due to inflation except for depreciation.

6. Income from operation is subject to 12% tax.

7. There will be 280 working days per year.

8. The machinery, furniture and fixtures will be depreciated in straight line

method with 4 years useful life and without salvage value.


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Total Projected Cost

Welding machine

Cutting machine

Bar cutter

Press drill

Steel vise

Grinder

Electric drill

Delivery Truck

Start up cash

P6,600.00

16,000.00

3,800.00

5,200.00

2,500.00

3,000.00

8,500.00

375,500.00

421,100.00

178,900.00

600,000.00

In adding a new product it is estimated that Jose Vincent Enterprises will

invest 600,000.00. The amount of 421,100 will be used in purchasing delivery

truck and machinery needed in constructing grills. The 178,900.00 excess will be

used in purchasing direct materials for the grills.


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Statement of Comprehensive Income

For the year ended December 31

2013 2014 2015

Sales

Less: Cost of Sales(49.18)

936,864.58

460,750.00

986,705.77

485,261.90

1,039,198.52

511,077.83

Gross Income 476,114.58 501,443.87 528,120.69

Operating Expenses

Salaries & Wages

Utilities

Gasoline Expense

Depreciation Equipment

Depreciation Vehicle

Miscellaneous Expense

168,000.00

19,146.40

13,269.60

11,400.00

37,500.00

5,000.00

173,292.00

20,822.79

14,415.77

11,400.00

37,500.00

5,157.50

178,752.00

21,930.56

15,182.69

11,400.00

37,500.00

5,319.96

Total Operating Expense 254,316.00 262,588.06 270,082.21

Operating Income Before Tax 221,798.58 238,855.81 258,038.48

Less: Income Tax 26,615.83 28,662.70 30,964.62

Net Income 195,182.75 210,193.11 227,073.86


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Statement of Financial Position


2013 2014 2015

ASSETS

Current

Cash

Accounts Receivable

Inventory

353,576.31

28,105.94

46,445.00

459,857.49

29,601.17

47,908.00

567,898.37

31,175.96

49,417.10

Total Current Assets 428,127.25 537,366.66 648.491.43

Non-Current

Vehicle

Less: Accum. Depreciation

Machinery

Less: Accum. Depreciation

375,000.00

37,500.00

45,600.00

11,400.00

375,000.00

75,000.00

45,600.00

22,800.00

375,000.00

112,500.00

45,600.00

34,200.00

Total Non-Current Assets 371,700.00 322,800.00 273,900.00

Total Assets 799,827.25 860,166.66 922,391.43

LIABILITIES AND OWNER

EQUITYLiabilities

Accounts Payable

4,644.50 4,790.80 4,941.71

Total Liabilities 4,644.50 4,790.80 4,941.71

Owners equity

Marquez, Capital 795,182.75 855,375.86 917,449.72

Total Owners equity 795,182.75 860,166.66 922,391.43

Total Liabilities & Owners

Equity

799,827.25 860,166.66 922,391.43


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Projected Cash Flow Statement


2013 2014 2015

Cash Balance beginning

Add: Cash provided by operation

Cash sales

Collection of AR

600,000.00

843,178.12

114,480.52

353,576.31

888,035.19

151,192.88

459,857.49

935,278.67

144,779.56

Total 1,557,658.64 1,392,804.38 1,539,915.72

Less: Disbursements

Cash Purchases

Acquisition of Equipment

Acquisition of Truck

Payment of Accounts

Operating Expenses

Payment of Income tax

Withdrawal

380,396.25

45,600.00

375,000.00

122,154.25

254,316.00

26,615.83

365,043.68

-

-

126,652.45

262,588.06

28,662.70

150,000.00

384,440.20

-

-

121,530.32

270,082.21

30,964.62

165,000.00

Total 1,204,082.33 932,946.89 972,017.35Cash Ending Balance 353,576.31 459,857.49 567,898.37


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Rate of Return on Sales

ROS = Net Income / Sales

Year 1 Year 2 Year 3

Net Income 195,182.75 210,193.11 227,073.86

Sales 936,864.58 986,705.77 1,039,198.52

Return on Sales 20.83% 21.30% 21.85%

Return on sales measures the ability of the partnership to earn profit on sales. It

shows how much is earned for every peso of sale for the company. The table indicates

that on initial operation, 20.83% represents income for every peso sales.

The higher the ratio the more the profitable the business is, and the table above

shows that every year the entity becomes more profitable.

Rate of Return on Assets

ROA = Income before tax / Average total asset


Income before tax 221,798.58 238,855.81 258,038.48

Average total asset 799,827.25 854,996.96 913,808.19

Return on asset 27.73% 27.94% 28.24%

The rate of return on assets measures the entitys performance using assets to

generate earning independent of the financing of those assets. The rate of return on

assets relates on how well these assets are utilized without regard to how the firm

finance the acquisition of those investment.


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Based on the foregoing computation, on the first year of operation, 27.73%

represents the amount of profit for every peso of the assets invested; 27.94% for the

second year; and 28.24% for the third year.

This shows that the income earned by the business based on the asset invested.

A high rate means the assets are being used profitably by the business.

Rate of Return on Equity

ROE = Net income / Owners Equity


Net Income 195,182.75 210,193.11 227,073.86

Owners equity 795,182.75 852,674.71 916,279.05

Return on Equity 24.55% 24.65% 24.78%

The rate of return on owners equity measures the amount earned out of the

capital invested. It is an important indication of the entitys profitability because it

determines how well the company is performing with the investment contributed by theowners.

On the first year of operation, 24.55% represents income for every peso of

investment of the owner; 24.65% on the second year; and 24.78% on the third year.

Annual Cash Return


Net Income 195,182.75 210,193.11 227,073.86

Depreciation 48,900.00 48,900.00 48,900.00

Annual Cash Return 244,082.75 259,093.11 275,973.86


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Payback Period

Payback period measures the length of time required to recover the amount of

the initial investment. It is the time interval between the initial outlay and the whole

recovery of investment.

Year Amount of Cash Returns Period needed

1 244,082.75 1

2 259,093.11 1

3 275,973.86 .16

Payback Period 2.16 years

Payback period of the entity is 2.16 years. This means that the initial investment

will be recovered within the period of 2.16 years.

Equity

600,000

195,182.75 210,193.11 227,073.86 Net income

150,000 165,000

795,182.75 855,375.86 917,449.72


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Appendix A

Sales Budget

Pagsanjan Cavinti Lumban Kalayaan Paete Total Demand

(75%)

Target

(12.5%)

Ave. no

of

windows

Cost of

Sales

(2,425)

(49.18%)

Sales

Two-storey 16 19 13 9 14 71 54 7 14 237,650.00 483,224.89Bungalow 11 7 9 12 8 47 36 5 8 97,000.00 197,234.65

Apartment 7 1 5 2 3 18 14 2 10 48,500.00 98,617.32

Commercial 6 1 12 3 11 33 25 4 2 19,400.00 39,446.93

Renovation 6 12 6 4 5 33 25 4 6 58,200.00 118,340.79

Others 3 2 3 3 2

TOTAL 49 42 48 33 43 460,750 936,864.58


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Appendix B

Purchase Budget

Year1 Year 2 Year 3

Materials Requirement 460,750.00 485,261.90 511,077.83

Add: Desired Ending

Inventory

46,445.00 47,908.00 49,417.10

Total 507,195.00 533,169.90 460.494.93

Less: Beginning Inventory - 46,445.00 47,908.00

Total Purchases 507,195.00 486,724.90 512,586.93


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Appendix C

Desired Ending Inventory

` Unit Price (Php)# of UnitsRequired

Total Amount(Php)

Red Oxide (1 gal) 375 3 1125

Welding Rod 100 20 2000

Welding Stone 100 20 2000

Flat Bar Type

1/4 x 1 240 30 7200

1/8 x 1 175 30 5250

1/8 x 1/2 55 30 1650

3/16 x 1/2 85 30 2550

3/16 x 3/4 90 30 27003/8 x 1 1/4 45 30 1350

1/16 x 3/8 85 30 2550

Square Bar

1/2 x 1/2 155 10 1550

3/4 x 3/4 250 10 2500

5/8 x 5/8 310 10 3100

GI Pipe

#20 1" 660 3 1980

#40 1" 740 3 2220

#20 1 1/2" 990 3 2970

Angular3/4 x 3/4 x 1/8 210 5 1050

1 x 1 x 3/16 240 5 1200

Plain Round Bar5/8 300 5 1500

TOTAL 46,445

Year 1 Year 2 Year 346,445 47,908 49,417.10


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Appendix D

Personnel Plan

YearNo. of

WorkersRate (Php)

No. of WorkingDays

Salaries(Php)

1 2 300 280 168000

2 2 309.45 280 173292

3 2 319.2 280 178752


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Appendix E

Depreciation Schedule

Depreciation = Cost / useful life

Cost Useful life DepreciationMachiney 375,000.00 10 37,500.00

Delivery Truck 45,600.00 4 11,400.00


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Appendix F

Gasoline Expense

Year Sales (Php) 1.44% X Inflation Rate (3.15%)

1 921500 13269.60 13269.60

2 970523.80 13975.54 14415.77232

3 1022155.67 14719.04 15182.69146

Average Gasoline Expense

Gasoline for year (2008-2012)

Gasoline Expense (49,929 + 57,652 + 68,865 + 75,961 +77,893)/5Sales (4,121,209 + 4,367,416 + 4,556,036 + 4,797,381 +5,069,279)/5

= 1.44%


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Appendix G

Utilities Expense

Year Sales 2.08% X Inflation Rate (3.15%)

1 921500 19167.20 19167.20

2 970523.80 20186.90 20822.78223

3 1022155.67 21260.84 21930.55433

Average Utilities Expense

Utilities for year (2008-2012)

Utilities Expense (83,789 + 90,887 +92,683 + 102,592 +105,632)/5Sales (4,121,209 + 4,367,416 + 4,556,036 + 4,797,381 +5,069,279)/5

= 2.08%

Final Business Plan for Print

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