1

Multi-rem
A Feaibility Study Presented to
Accountancy, Business and Management Strand
San Pablo Colleges

In Partial Fulfillment of the requirements

By:
Leaders:
Gesmundo, Princess Phoebe A.
Tan, Charles David
Members:
Briones, Ariza Joyce
Caya, Jazmeer
Dela Cruz, Carla
Del Rosario, Aquila
De Villa, Maxine
Espiritu, Regine
Factora, Stephanie Shane
Mangubat, Dustine Haves
 2

Acknowledgement

The completion of this feasibility study would not have been possible
without the encouragement and assistance of some persons who have
given their time and solicited advice to this study.
First and foremost, our utmost appreciation to our class adviser,
Mrs. Dynise Angeles for her valuable support, in which it is very useful in
the days to come.
To our subject teachers for their patience and guidance,
encouragement and for sharing their expertise in writing this feasibility
study.
We would like to express also our special thanks of gratitude to our
family who supported us morally and financially.
Last but not the least, the one above all of us, for answering our
prayers for giving us the strength and wisdom, thank you so much Dear
God.
 3

Dedication

We dedicate this feasibility study to God Almighty our creator, our

hope and our strength, to our family and friends who have been the best
supporters and stress relievers throughout this project.
We would also like to dedicate this feasibility study to our fellow
Accountancy, Business and Management (ABM) students especially to
our team who also work hard to propose and innovate products that is
possibly useful for the next generations.
 4

TABLE OF CONTENTS

1 INTRODUCTION…………………………………………… 4
1.1 Management Feasibility…………………………………… 5
1.2 Environmental and Industry Analysis……………………. 5
1.3 Production Plan…………………………………………….. 6
1.4 Operational and Marketing Feasibility….………………… 6
1.5 Organizational Plan,,,,……………………………………... 6
1.6 Financial Plan………...…………………………………….. 7
1.7 Timetable……..……………………………………………… 7

2 MANAGEMENT FEASIBILITY………………...………….. 8
2.1 Mission………...……………………………………………… 8
2.2 Vision……………………………….…………………………. 8
2.3 The Location…………………………………………………. 8
2.4 Floor Plan……..……………………………………………… 8
2.5 Company Information………………………………………. 10
2.6. Company Logo……………………………………………… 11
2.7. The Product…………………………………………………. 11
2.8. The Rationale and Purpose of the Study…………………. 15
2.9. Scope and Limitation………………………………………... 15
2.10. Summary of Future Plan…………………………………….. 15
2.11. Start-up Summary……………………………………………. 15
2.12. Product attribute……………………………………………… 20

3 ENVIRONMENTAL AND INDUSTRY ANALYSIS……… 21

3.1. Size of the Primary Target Market…………………………. 21
 5

3.2. Market Position and Market Shares……………………….. 24

3.3. SWOT Analysis……………………………………………… 26
3.4. Competitors…………………………………………………... 28

4 Production Plan…………………………………….…….. 29
4.1 Production Plan……………………………………………. 29
4.2 Distribution Channels………………………………………. 32

5 OPERATIONAL PLAN AND MARKETING PLAN……. 33

5.1. Target Market………………………………………………. 33
5.2. Marketing Strategies……………………………………… 33

6 ORGANIZATIONAL PLAN………………………………. 35
6.1 Organizational Structure…………………………………. 36
6.2 Employee’s Duties and Responsibilities………………… 36
6.3 Employee’s Daily Rate and Salaries……………………. 38

7 MAJOR FINACIAL AND OPERATIONA ASSUMPTION....39

7.1. Product Costing and Breakeven Points…………………..40

8. TIMETABLE/ MILESTONE……………………………. 45
8.1. Conclusion……………………………………………….. 48
8.2. Recommendation…………………………………………. 49
 6

Introduction
Nowadays, company products are a major deal. A common lamp is
just a device for giving us light when it’s dark. We would like to break that
perception from simple purpose to an interesting idea that the consumers
will possibly look forward to it, bringing in our product, “Aero-Max Lamp”
(Multi-rem) is a multi-purpose furniture that is innovated in a unique way
and can guarantee a person will likely to enjoy the structure of bamboos
and wood joined together to entertain them using the three senses, sense
of sight, sense of hearing and sense of smell.
The lamp is movable, multi-rem is instantly an accessory and it
shades the glare of the light from the bulb to visualize the peacefulness of
a home, aside from that, it has a built-in speaker for smart phones
especially for a music lover person that multi-rem will hold his phone and it
will provide the loudness of sound. Lastly, when the lamp is on and heated,
it has an ability to make a person relax and feel comfortable because of its
aroma-therapy. Promoting a multi-purpose invention is also promoting a
contemporary artifact made from the Philippines and which is a bonus
contribution to our community. People may not be interested to arts but
they might be interested to a good quality and an affordable device. In
general, consumers and manufacturing businesses may benefit from this
design.
 7

Chapter 1
Executive Summary

Management Feasibility
Presenting exceptional furniture is one of the business' objectives.
The company name, Novus which means "new" and its tag line "Think
oustide the box" clearly states that the mission of the business is to
produce a useful and unique product to serve up consumers and its vision
that the company contribute to level up our economic rate. Using "Novus"
and its tag line to our logo is easy to remember and it has a prospective to
prove that our company is innovative.
The agreed business type is partnership and all partners are equally
divided to our business which are handled by aspiring entrepreneurs.
Product shows uniqueness and traditional design that makes the product
excellent.

Environment and Industry Analysis

This chapter analyzes the market for entrepreneurs to know who are
their possible consumers. The market study is the most essential part of
the entire Feasibility Study. It discusses the viability of the proposed project
through determining the needs and wants of the market and then matching
it with the appropriate products and services that will satisfy those needs.
A careful analysis of the demand and supply of the product is needed for it
dictates the feasibility and profitability of the entire project.
This part should be given the first consideration because necessary
information regarding the target market and the demand and supply
analysis would be obtained from this study. In order to achieve certain goal,
the general objective of this study is to determine the marketability of the
product or service. This includes the demand and supply situations, pricing
 8

strategies and marketing programs, and the survey results. Also the
possible competitors are identified in this part.

Production Plan
Our production system shall strive to attain service excellence in
addition to manufacturing safe, quality products. In order to improve
productivity in our field we intend to minimize our materials and use it
efficiently. The company obtains the finest raw materials from local
suppliers to also promote local businesses here in our country. The Novus
Company intends to utilize every resource it has to the fullest possible
extent. We ensure that the use of natural resources are fully utilized. In
producing the products, the company converts the raw materials into
finished goods and make them as inventories. The producers sells it
directly to the market that consists of possible consumers.

Operational and Marketing Feasibility

This chapter refers to the target market and marketing strategies.
The target market shows the list of the people who answers our survey
about our product. It shows that at the age of 13 to 48 years old, people
are willing to buy our product. The marketing strategies is consists of 4p's
which are the product, price, promotion and place. In this part the
marketing strategies are very important tools in having a business. These
are the essential tools on how the business will grow.

Organizational Plan
 9

This chapter includes the employees responsibilities and duties.

Every employees has their tasks and contribution to an organization.
Organizational structure is important for any growing company to provide
guidance and clarity on specific human resource issues, such as
managerial authority. And in this chapter it also includes the flow of the
salaries wherein the employees will receive their salaries every 15th and
30th of the month, and 13th month pay.

Financial Plan
In this chapter is the evaluation of the Company’s financial state
including in these are the income and expense on a yearly schedule. This
is the evaluation of your business whether you have profit or loss. We
determine the cost of our product by doing product costing and break even
points and attain our yearly sales resulting to profit for our Company.

Timetable
This timetable summary is it the milestones set the plan tactics into
practical, concrete terms, with real budgets, deadlines, and management
responsibilities. It includes the plan of the business. It it necessary to your
ongoing plan. Using this you're having a proper planning management
through thinking strategy, and actions for business offerings and
marketing.

Chapter 2
 10

MANAGEMENT FEASIBILITY
Mission
The Novus Company rely on finest materials to innovate the
standard of living and seeks to develop customer satisfaction through a
safe and high quality product.
Vision
Novus as a foremost furniture manufacturer in the region sets
standards, introduces new design of trendy basic furniture with an
emphasis of creativity and innovation.
The Location
The workplace is located at

Figure 2.1 Location

Floor Plan
The layout refers to the arrangement of the facilities such as working
area, waiting area, employees’ place and head’s office. This is
 11

for an organized, continuous operation for making Aero-max lamp (Multi-

rem). Aside from major facilities, there are also comfort room, canteen,
meeting area and garage for a convenient legal transaction in and out the
workplace.

Figure 1.2 Floor Plan

Area and description Covered Floor

Area
Garage - parking lot, space for the
vehicles of the employees and First floor
workers.
 12

Waiting area - where in the people

sit or stand until the event or 124.75 First floor
appointment for which they are
waiting begins.
Employees’ office- paper works 21.408 First floor
held here
Head’s Office- office of the First floor
manager 12.567
Meeting area- the area which the
meeting held ; assembly point 21.06 First floor

Canteen- wherein the employees of

the company place to take a break 28.79 First floor
Workplace- - the production of the
product held in here. 56.045 First floor

Total Covered Area 124.75

Company Information
Our company seeks to build and create a new way of living with the
use of natural resources and modern materials that will surely last and It is
called NOVUS that means “NEW” in latin.
The business type we use is partnership and all are partners are
equally divided to our business which are handled by aspiring
entrepreneurs. We built an organization that will help our company grow
and innovate products for our quality customer. For a convenient price Php
995.00 everyone can avail our first product multi rem that can be used for
different occasions.
 13

Company Logo

Figure 1.3 Company logo

The origin of the company name “NOVUS” is derivative of the Latin
word “novis” means New. Was the first term in ancient Rome for a man
who was the first in his family to serve in the Roman Senate or, more
specifically, to be elected as consul. And What Does “Think Outside of the
Box” Means? It is supposed to mean thinking creatively, freely, and off the
beaten path. It also to think in a innovative, original manner or imaginatively
using new ideas instead of traditional or expected ideas. This is the exact
definition of the company’s activity

The Product
People nowadays prefer to stay at their room rather than going out
because of the toxicity around us. That’s why we came up to this idea to
innovate what we have in our rooms. We turned the lamp into more useful
one by adding a speaker and a scented bulb. The following pictures are
raw materials.

Plug
Switch
 14

Bulb Holder Wires

Bulb Abaca Balls

 15

Nails Sander

Ply Wood
Hacksaw
 16

Drill Wood Adhesive

Bandsaw
Silicone

Bamboo Essential Oils

Figure 2.4 Raw materials and Equipments

 17

The Rationale and Purpose of the Study

It is basic to direct point by point investigation to decide the potential
market for the item before business begins its task. A fruitful business relies
upon exact investigation and great market for the item. This investigation
will help uncover any blemishes in the thought or its execution so as to
make prompt move.
Scope and Limitation
The scope of this business proposal is to capture multi-purpose
lamp in business as it were. The study is limited only to the professionally
skilled employees, organizational structure, product and services
description and market sales and strategies. The financial forecast in this
study is limited to five years.
Summary of Future Plans
After three years of operation, the Novus company plans to create,
develop and expand not only the purpose of the product but also having
more and trendy but still unique and traditional design for the lamp for each
year which lead to increase the capacity of the production of the company.
The company with the product; multi rem is looking forward to be
well-known locally and internationally thus the company wants to enlarge
the working place and the production. Also, The company make the
preservation of wood carvings and hire more man power to be able to
create more unique and traditional design.

Start-up Summary
Table 2.1 Start-up Cost for Multi-rem
Materials Quantity Price in Total
Peso
 18

Socket 260 35 9,100

Plug 260 50 13,000
Switch 260 20 5,200
Wire 260 50 13,000
Bulb 780 25 19,500
Silicone 52 185 9,620
Essential Oil 65 180 11,700
Paint 52 250 13,000
Abaca Balls 780 20 15,600
Wood 65 35 2,275
Adhesives
Total 850 111,995

Table 1.2 Start-up Cost for Machineries

Price in Estimated Total
Materials Quantity Peso Life
Band Saw 3 5 years 54,518
18,172.67
Table Saw 3 8,750 5 years
26,250
Total 80,768

Table 1.3 Start-up Cost for Tools

 19

Materials Price in Estimated Total

Quantity Peso Life
Drill 3 5 years 3,897
1,299
Sander 3 1,299 5 years 3,897
Total 40,689

Table 1.4 Start-up Cost for Furnitures and Fixtures

Price in Estimated Total

Materials Quantity Peso Life
Sliding 12 1,800 10
Door years 21,600
Corner 3 7,000 10
Sofa years 21,000
Modular 1 9,000 10
Sofa years 9,000
 20

Toilet Bowl 4 3,700 10

years 14,800
Sink 2 2,385 10
years 4,770
Table 4 1,100 10 4,400
Seater (4) years
Table 1 1,800 10 1,800
Seater (10) years
Table 1 650 10 650
(single) years
Chair 1 500 10 500
(single) years
Wall 1 500 5 500
Cabinet years
Door Mat 11 100 5 1,100
years
Office 4 2,500 10 10,000
Table Set years
Total 81,120
31,305

Table 2.5 Start-up Cost for Office Equipment

Materials Quantity Price in Total
Peso
Air Conditioner 3 25,000 75,000
Exhaust Fan 1 1,000 1,000
Office Vault 1 22,000 22,000
Photo Copier 1 4,000 4,000
Computer 5 16,000 80,000
 21

Telephone 2 700 1,400

Water 2 2,000 4,000
Dispenser
Cycling Fan 4 3,000 12,000
Fluorescent 28 400 11,200
Wall Clock 5 250 1,250
Total 74,350 211,850

Table 1.6 Start-up Cost for Office Supplies

Materials Quantity Price in Peso Total
Bond Paper 5 boxes 1,600 8,000
Printer Ink Set 5 1,000 5,000
Photocopier Ink 5 90 450
Set
Ballpen 3 box (12 pcs. 80 240
each box)
 22

Pencil 3 box (12 pcs. 60 180

each box)
Eraser 1 box (12 pcs. 60 60
each box)
Folder Set 2 150 300
Stamp 1 250 250
Stamp Ink 1 30 30
Stapler 3 50 150
Stapler Wire 1 box 15 15
Total 3385 14,675

Product Attribute
a) Product Quality
Multi-rem are fast becoming the new standard for both homeowners
and commercial customers. We can assure the high quality of this product,
we undergo with the study to guarantee the quality of it. The multi-rem has
a various material that maintain the good capacity and durability. It is free
from deficiencies because it is made up of bamboo and wood. It’s not
plastic or rubber that can be burned, or metal that can be deformed.
b) Product Features
The product features three various purposes in a single product.
The product consists of a lamp, speaker and air aroma. It is a product that
is very useful perfect for every members of the family, through this product
they will feel relaxed and enjoy the feeling of being at home.
c) Product Style and Design
The final element in the product attribute decision is the overall
product design and style. The multi-rem works as three (3) useful
equipment in our house or business. The product has lamp, speaker and
 23

air aroma, as well that makes it different from the other lamp. The product
has combination of wood and bamboo that makes it stronger. Furthermore,
it uses silicone and essential oils to have long lasting scent. In order to
achieve eco-friendly feature, we used a classic style, to accent details we
used brown and cream colors. The overall design of the multi-rem is fine
enough to capture the attention of the consumers. Otherwise, we can
assure when it is use, it will also achieve the consumers’ needs.

Chapter 3
Environment and Industry Analysis

Size of the Primary Target Market

The business conducted a survey with 50 randomly selected
respondents among the people who live in San Pablo City, Laguna area.

Age Respondents
 24

13-19 years old 23

20-25 years old 18

26-34 years old 6

35-48 years old 3
49 years old and 0
Table 3.1 Profile of the
above
Respondents
Total 50
The table reveals
that out of fifty (50) respondents, with ages responding from 13 to 49 years
old and above. 46% of the respondents belong to ages ranging from 13-19
years old, 36% are 20-25 years old, 12% are 26-34 years old and 6%
belongs to 35-48 years old and 0% are 49 years old and above. For the
total of 100%.

Table 3.2
Yes No
Does listening 44 6
to music your
hobby?
Do you prefer 38 12
to have a lamp
in your room?
Have you tried 29 21
using air
aroma lamp?
Does aromas 41 9
help you
 25

relax?
Do you prefer 38 12
a classic style
of lamp?
Are you 42 8
comfortable
using night
light while
sleeping?
Do you like 39 11
portable
speakers?
Are you 43 7
interested in a
long lasting
product that
can help your
living?
Do you prefer 43 7
a multi
purpose
products?
Would you like 42 8
a lamp that
has a speaker
and air aroma?
 26

As shown in table 3.2, the respondents give positive evaluation to

the multi purpose lamp called multi-rem. The competitive advantages of
the product is that it can easily be used and having a three (3) purposes in
one product.
At last, the demonstrator asked the respondents if they will
recommend the product to the other consumers and all of them said yes.
Market Position and Market Shares

Chart I. Demand for Speaker

Demand

68% 50 repondents
100%
34 respondnets

Figure 3.1 Demand for Speaker

This chart shows that our 50 respondents who participated in our
study states that 68%of them are listening to music or prefer to have a
speaker

Chart II. Demand for Lamp

 27

36%
Demand

50 respondents
18 repondents

100%

Figure 3.2 Demand for Lamp

This chart shows that our 50 respondents who participated in our

study states that 36% of them often prefer to have their lamp in their room.
Chart III. Demand for Air Aroma

Demand

32%
50 respondents
16 respondents
100%

Figure 3.3 Demand for Air Aroma

This chart shows that our 50 respondents who participated in our
study states that 32% of them are using air aroma and it helps them to
relax.
 28

We therefore conclude that in the 50 respondents who participated

in our study gave us a result of a good outcome of our product. The
respondents gave their feedback on how they would likely to use each
purpose (lamp, speaker and air aroma) in one product.

SWOT ANALYSIS
A SWOT analysis is a framework that identifies the strengths,
weaknesses, opportunities and threats of an organization. Specifically, it is
a basic, straightforward model that assesses what an organization can and
cannot do as well as the potential opportunities and threats. The method is
to take the information from an environmental and industry analysis and
separate it into internal (strengths and weaknesses) and external forces
(opportunities and threats).

Table 2.1 SWOT Analysis for Aero-max Lamp (Multi-rem)

Opportunities Threats
1. A new invention 1. It can be easily
External to introduce to replicated and
consumers other inventors
2. There’s no might build
Internal competitors better than the
nearby the store. product
3. The capacity to 2. Bad reviews
create more about the
products product
3. Bias costumers
Strength (S1O1, S2O2, S3O3) (S2T2, S1T3, S3T3)
 29

1. The use of S1O1 S2T2

natural 1. Invent an eco- 1. Design
resources. friendly product products based
2. A trendy and S2O2 on costumer
basic kind of 2. The higher needs
furniture demand the S1T3
3. High supply of increases profit 2. Use of home-
materials S3O3 grown natural
3. Distribute our resources as
products to the materials
other market S3T3
3. Efficient use of
natural
resources as
materials
Weakness (W1O1, W1O2, W2O2) (W1T1, W2T2, W3T3)
1. There’s a W1O1 W1T1
tendency that 1. Create 1. Our product is
a person advertisements flexible and can
might not want and promote the be develop
the specific benefits W2T2
purpose of the W1O2 2. Innovate the
product 2. Conduct a product and
survey beyond free trials
2. Consumers the location W3T3
might not buy W2O2 3. Use alternative
because it’s 3. Give a full review materials that
not yet tested of the product can suit the
 30

by the through social material

consumers media
promotions

3. Shortage of
raw materials

Competitors
One of the factors that need to consider by any business entity to
ensure success is the leading with competitors.
There are four (4) major factors that determine the nature and intensity of
the rivalry (competition) among existing firms in an industry. These factors
are:
a.) The number and balance of competitors
b.) The degree of difference between products
c.) The growth rate of an industry
d.) The level of fixed cost
Base on the facts that there is a high pressure on the market entrant due
to numerous competitors, it can also signify the possibility of success once
proper marketing and business strategy were being executed.

Table 2. List of Identified Competitors

Competitor’s Name Product Address
SYLpauljoyce Furniture, Lights & Daang Maharlika
Decor Highway, San Pablo
City, Laguna
 31

Practical Home Style Furnitures, Appliances, Brgy. San Francisco

Chandeliers Kalihan, San Pablo
City, Laguna
Wilcon Depot Home interior Dona Maria Village
Phase 2, San Pablo
City, Laguna

Chapter 4
PRODUCTION PLAN
The making of this product is quite hard and consumed a lot of time
and energy but with the help of some equipment, the production process
became quick. The process and procedures in creating the multi-rem will
start in buying the primary materials from the suppliers. The process of
making the multi-rem is listed below:
Step 1:
For the wooden speaker, materials are some inch of ply woods, a
hammer, small nails, wood adhesives, a drill, sander, wood shaper, and a
hack saw. Cut out the ply woods, there are some messing around with the
hacksaw that may be needed in order to cut out the larger slices. Once the
 32

woods are cut out, they can be sanded to be as close to perfect as possible.
Use a pencil to sketch the size of the phone and drill it after.

Ply wood Bandsaw

Sander Drill

Step 2:
For the lamp base, drill a hole through the center of the item you’re
using as a base, extend the hole from the back side of the same piece so
it would be much easier for the cord to pass through. After drilling it, insert
the cord and provide an allowance to insert it inside the wood speaker.

Bamboo Drill

Step 3:
For the electrical wirings, you’ll need some sort of housing for the
bowl of a socket, switches, wirings, plug and screwdriver. Strip the end of
the wire, peel it apart and twist the copper wires. Insert the wires into the
 33

prongs carefully then put on the rest of the socket parts. When the lamp
base is ready, the lamp is wired and fitted with its hardware components.
Then insert the wires inside the laminated ply woods that will be the
speaker.
Step 4:
For the scented bulb, it consists of silicone and scented oils. Mix the
two thoroughly and make sure that there will be no smell of chemical. After
mixing, dip the bulb and hang it for 24 hours.

Silicone Essential Oil Bulb

Step 5:
Use a palm or lightweight rotary sander to completely sand the parts
of the lamp. Then stain the wood to make one variety of wood and to accent
details.
Step 6:
Once the entire piece is stained and already dry, put the scented
bulbs and attach the abaca balls.

Distribution Channels
The entrepreneur will find a supplier that will supply the raw
materials that will be using in producing Multi-rem. The distribution of
 34

channels that we are using is the producer to consumer wherein the one
who creates the product or the what we called producer directly sells the
product to consumers or customers.

Supplier

Producer Consumer

Chapter 5
OPERATIONAL PLAN AND MARKETING PLAN
Target Market
The target market of Mult-rem can be anyone because it’s perfect
for all ages. Both Male and Female can use this product, anytime and
anywhere with electricty. A product that can be enjoyed by a whole group.
 35

49 years old and

above
6%
35-48 years old
12%

13-19 years old

46%

20-34 years old

36%

13-19 years old 20-34 years old 35-48 years old 49 years old and above

Figure 5.1 Specific consumers of Multi-rem

As shown above we have the target market of people who are 49
years and above which is 6%. 35-48 years old is 12% which are the ones
who mostly stay at home. 20-34 years old is 36% which are some of college
students and working people and lastly 46% which are the 13-19 years old
who’s more likely to enjoy our product. The age percentage of the
respondents will help the proponents to easily know their target market.

Marketing Strategies
This chapter refers to the marketing activities to create,
communicate and deliver to the customer.
1. Product. Our company decided to create a multi-purpose lamp which
aims to give the people a high-quality design and at the same time a stress-
free product.
 36

2. Price. The company considers so many factors before pricing the

product. It includes the functions of the product, the consumer’s ability to
pay the product, the cost o the production, the pricing of the competitors
and the state of the market of the product. Multi-rem aims to develop a
product that provides convenience in the most affordable way possible for
the market. The cost of the multi-rem sums up to P710.80 this includes the
lamp, air aroma and the speaker. The Novus Company is planning to sell
the product in the market for a budget friendly price of P995.12

3. Promotion The product needs various ways to attract customers by using

different types of advertisements:
a.) Face-to-face marketing Meeting someone in person is a much
different experience from meeting him or her online. The company will
inform the customers on how and what the product can do by means of
demonstrating and gives free trial.
b.) Online Marketing It is an effort to spread the word about your
product that uses the internet to reach people. It's anything that you can do
online to get more eyeballs on you, grab attentions and hoprfully get them
to buy from you.
c.) Catalog. Marketing Many consumers still prefer to look at a
catalog instead of a website or go to a store. Letter box drops are highly
effective when it comes to targeting customers.

4. Place. The company assures they have the right location for the
business to bring the highest possible benefits to them. The company and
workplace is situated at Maharlika Highway,1-C Bagong Bayan San Pablo
City Laguna.
 37

Chapter 6
ORGANIZATIONAL PLAN

Organizational Structure
 38

Manager

Financial Marketing
Supervisor Department Department

Accountant Marketing Officer

Team Leader

Workers

Delivery Man

Fig. 6.1 Organizational Structure

Table 6.1 Employee’s Duties and Responsibilities

Position Duties and Responsibilities
Manager The manager is responsible for overseeing and leading
the work of a group of people in many instances. The
 39

manager is also responsible for planning and

maintaining work systems, procedures, and policies
that enable and encourage the optimum performance of
its people and other resources within a business unit.
Supervisor A supervisor is responsible for the productivity and
actions of a small group of employees. The supervisor
has several manager-like roles,responsibilities, and
powers. As a member of management, a supervisor's
main job is more concerned with orchestrating and
controlling work rather than performing it directly.
Team Leader A team leader is responsible for guiding a group of
employees as they complete a project. They are
responsible for developing and implementing a timeline
their team will use to reach its end goal. Some of the
ways team leaders ensure they reach their goals is by
delegating tasks to their members, including
themselves.
Workers Workers operate machinery, feeding products into the
production line, possibly a conveyor line, such as in a
canning factory. They monitor the machines, raising any
issues with their manager, and as well, control and
adjust machine settings, such as the speed.
Delivery Man A Delivery Man is responsible for conduct inspections
of vehicle before departing to deliver goods. Pack and
load products onto trucks according to company’s
specifications, Deliver orders to customers on assigned
routes, Maintain ongoing communication with route
dispatcher, Unload goods as per client specifications,
 40

Also delivery man need to review deliveries with

customers to ensure products meet their needs and
obtain delivery confirmations from each customer.
Financial Responsible for management of the organization’s
Department cashflow and ensuring there are enough funds available
to meet the day-to-day payments. This area also
encompasses the credit and collections policies for the
company’s customers, to ensure the organization is
paid on time, and that there is a payment policy for the
company’s suppliers.
Marketing The Marketing Department plays a vital role in
Department promoting the business and mission of an organization.
It serves as the face of your company, coordinating and
producing all materials representing the business.

Table 6.2 Employee’s Daily Rate and Salaries

 41

Position No. of Daily Rate Monthly Annual

Personnel Salary Salary
Manager 1 ₱ 914.90 ₱ 19,899.00 ₱ 238,788.00
Supervisor 1 836.83 18,201.00 218,412.00
Team 1 712.64 15,500.00 186,000.00
Leader
Workers 8 3,017.69 65,634.67 787,616.00
Delivery 1 338.88 7,371.00 88,452.00
Man
Accountant 1 887.86 19,300.00 231,600.00
Marketing 1 836.74 18,199.00 218,388.00
Officer
Total ₱ 5,793.81 ₱164,104.67 ₱1,969,256.00
Employees will receive their salaries every 15 th and 30th day of the
month. They are also entitled for the 13th month pay (computed-based on
their sale and the number of attended works in a year) that will be given
every 20th of December. Employees are also entitled for five (5) years.
100% on their daily rate will be given on regular holidays and 30% for
special holidays provided that employee(s) are present at work on the said
special holiday date.

CHAPTER 7
Major Financial and Operation Assumptions
 42

1. Business operation will start from Monday to Saturday, and

business hours will be from 8:00 in the morning till 5:00 in the
afternoon.
2. Regular mark-up price will be 40% of the regular price for direct
customer.
3. All employees who receives less than Php 10,000 salary are not
qualified for income tax computations.
4. Fixed assets have no salvage value and will be depreciated based
on their useful life straight-line method.
5. The company will use calendar method and will start its operating
cycle from January and will end at December of the year.
6. Target sales volume will be 3,120 units for year 2019, 4120 units
for 2020, 5120 units for 2021, 6,120 units for 2022, and 7,120 units
for 2024.
7. Beginning inventories (including raw materials and other
ingredients and suppliers) are good for one-year operation for the
year.
8. 3,120 units will be produced and more units will be produce on
upcoming years
9. Utilities and other operational expenses will be increased 4% each
year.
10. SEC, BIR and Business Permit and Licenses represents one-
month contribution and will be remitted the following month.
11. Transportation expense account will be solely use for depositing
money to the bank and other essential matter that require
transportation allowance.

Product Costing and Breakeven Points

Product Costing
 43

Materials Quantity Unit Cost Amount

Socket 3,120 35 ₱ 109,200
Plug 3,120 50 156,000
Switch 3,120 20 62,400
Wire 3,120 50 156,000
Bulb 9,360 25 234,000
Essential Oil 780 180 140,400
Paint 624 250 156,000
Abaca Balls 9,360 20 187,200
Wood Adhesives 780 35 27,300
Silicone 624 180 112,320
Total Materials Used ₱ 1,340,820
Labor 787,616
Indirect Labor 88,452
Depreciation
Band Saw 545.18
Table Saw 262.50
Total Production Cost ₱ 2,217,695.68
Units Produced 3,120
Unit Cost ₱ 710.80
Mark Up (40% of the regular 284.32
Selling price)
Regular Selling Price ₱995.12

Breakeven Point
Variable Costing (Year 2019)
 44

Sales (3,120 x ₱ 995.12) ₱ 3,104,774.40

Variable Cost (3,120 x ₱ 710.80) (2,217,696)
Contribution Margin 887,078.40
Fixed Cost (303,276.08)
Net Income ₱ 583,802.32

a) Fixed Costs
Depreciation – Band Saw ₱ 545.18
Depreciation – Table Saw 262.50
Depreciation – Tools and Equipment 4,833.90
Depreciation – Office Equipment 42,370.00
Depreciation – Office Supplies 1,476.50
Depreciation – Vehicle 5,000.00
Salary Expense 238,788.00
Total ₱ 303,276.08

BEP in Pesos ═ Fixed Cost

Contribution Margin Ratio
═ 303,276.08
28.57%
═ 1,061,519.36

BEP in Units ═ 303,276.08

710.80
 45

═ 427 units

Variable Costing @ Breakeven Point

Sales (427 x 995.12) ₱ 424,916.24
Variable Cost (427 x 710.80) (303,511.60)
Contribution Margin 887,078.40
Fixed Cost (303,276.08)
Net Income ₱705,206.96

Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023
Annual Sales
Unit Sold 3,120 4,120 5,120 6,120 7,120
Selling Price 995.12 995.12 995.12 995.12 995.12
Gross Sale ₱3,104,774.40 ₱4,099,894.40 ₱5,095,014.40 ₱6,090,134.40 ₱7,085.254.40

Breakeven Point Margin of Safety 427 427 427 427 427

Annual Sale-Breakeven Point 2,693 3,693 4,693 5,693 6,693
 46

NOVUS Company
San Pablo City
Income Statement
Projected
Note Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023
Net Sales 1₱ 3,104,774.40 4,099,894.40 5,095,014.40 6,090,134.40 7,085.254.40
Cost of Goods Sold -873,127.68 -3,164,354.08 -3,545,112.08 -3,925,862.08 -4,306,612.08
Gross Profit 2,231,646.72 935,540.32 1,549,902.32 2,164,272.32 2,778,642.32
Selling and Administrative Expense 2 -345,269 -345,269 -345,269 -345,269 -345,269
Income before Income Tax 1,886,377.72 590,271.32 1,204,633.32 1,819,003.32 2,433,373.32
Income Tax 0 0 0 0 0
Income after Income Tax ₱ 1,886,377.72 590,271.32 1,204,633.32 1,819,003.32 2,433,373.32

GOO

Note 1: Cost of Goods Sold

Beginning Inventory ₱ 1,340,820 1,770,570 2,200,320 2,630,070 3,059,820
Purchases 854.428 854.428 854.428 854.428 854.428
Total Goods Available for Use 2,195,248 2,624,990 3,054,748 3,484,498 3,914,248
Ending Inventory -303,511.60 -353,511.60 -403,511.60 -453,511.60 -503,511.60
Total Materials Used 1,891,736.40 2,271,478.40 2,651,236.40 3,030,986.40 3,410,736.40
Labor 787,616 787,616 787,616 787,616 787,616
Manufacturing Overhead 104,259.68 105,259.68 106,259.68 107,259.68 108,259.68
Total Manufacturing Cost 2,783,612.08 3,164,354.08 3,545,112.08 3,925,862.08 4,306,612.08
Finished Goods,Begnning 1,914,184.40 1,914,184.40 1,914,184.40 1,914,184.40
Total Goods Available for Sale 2,783,612.08 5,078,538.48 5,459,296.48 5,840,046.48 6,220,796.48
Finsihed Goods,Ending -1,914,184.40 -1,914,184.40 -1,914,184.40 -1,914,184.40 -1,914,184.40
Total Cost of Goods Sold ₱ 873,127.68 3,164,354.08 3,545,112.08 3,925,862.08 4,306,612.08
 47

(A) Manufacturing Overhead

Indirect Labor ₱ 88,452 88,452 88,452 88,452 88,452
Depreciation:
Band Saw 545.18 545.18 545.18 545.18 545.18
Table Saw 262.50 262.50 262.50 262.50 262.50
Lights and Water 9,000 9500.00 10,000 10,500 11,000
Gas and Fuel 6,000 6,500 7,000 7,500 8,000
Total ₱ 104,259.68 105,259.68 106,259.68 107,259.68 108,259.68

Schedule 2. Selling and Administrative Expense

Salary Expense ₱ 238,788.00 238,788.00 238,788.00 238,788.00 238,788.00
Depreciation:
Band Saw 545.18 545.18 545.18 545.18 545.18
Table Saw 262.50 262.50 262.50 262.50 262.50
Depreciation:Tools and Equipment 4,833.90 4,833.90 4,833.90 4,833.90 4,833.90
Depreciation:Office Equipment 42,370 42,370 42,370 42,370 42,370
Depreciation:Office Supplies 1,476.50 1,476.50 1,476.50 1,476.50 1,476.50
Depreciation:Vehicle 15,000 15,000 15,000 15,000 15,000
Advertising Expense 3,500 3,500 3,500 3,500 3,500
Business Permit,Registration
Licenses and other operating expense 38,492.92 38,492.92 38,492.92 38,492.92 38,492.92
Total ₱ 345,269 345,269 345,269 345,269 345,269
 48

Chapter 8
TIMETABLE/MILESTONE
MONTH 2019 2020 2021 2022 2023
January Requiremen Adding Adding Adding Adding
ts Detailed more units more units more units more
to to to units to
production production production producti
(150 units) (200 units) (250 units) on
(300
units)
February Design Planning 25 units
Delivered for the cost
Develop 20 units developme
concept of sold nt of the 50 units
the project Aero-max Explore sold
Lamp(Multi new
-rem) markets or
50 units improve
sold marketing

March Estimating 20 units Establish a

potential sold new labor
costs and 30 units force for
stating sold Purchase the 20 units
budget additional improveme sold
Developmen Customers Equipment nts
t Feed-back
Testing of Analysis
 49

the product 50 units

sold
April Present the
product to
the client Applying of
Launch of new 30 units 25 units 20 units
Aero-max marketing sold sold sold
Lamp(Multi- strategies
rem) 100
units
May 20 units sold 40 units 20 units 50 units 10 units
sold sold sold sold
June Half-year Half-year Half-year Half-year Half-
assessment assessmen assessmen assessmen year
of the t of the t of the t of the assess
operation operation operation operation ment of
the
10 units operatio
sold n
July 10 units sold 20 units 15 units Special
sold sold sales/
promoti
on
August 20 units 10 units 15 units 50 units
sold sold sold sold
 50

Septembe 20 units sold Review Review

r General General
Marketing Marketing 20 units 50 units
Plan and Plan and sold sold
Sales Sales
Developme Developme
nt nt
October Planning for
a new 20 units 20 units 50 units
marketing sold sold sold
strategies
November 20 units sold 20 units 15 units 50 units
sold sold sold
December 30 units sold 10 units 30 units 15 units Expand
sold sold sold Market
reach
 51

Conclusion
The study is feasible because the target population are willing and
capable of availing the product. The survey is designed and distributed to
target respondents where it obtained positive results saying that they are
willing to patronize the proposed products. The result of survey shows that
there is a big possibility of the business to grow and it will be a profitable
business. After the survey was conducted it is believed that such the right
economic condition is properly managed, and the proposed business is
very capable to put up in San Pablo City.
 52

Recommendation
After conducting the feasibility study needed, all of the analysis,
surveys, computations and interviews, the researchers had come up with
the findings and recommendations that will help the company in deciding
to continue the systematic plan.
Based on the information presented in this feasibility study, it is
recommended that the Novus Company can begin the project initiation and
to focus on how the product will be known in the market and maximize the
marketing strategy. The conclusion of this feasibility study shows that the
project will be highly capable to put up in San Pablo City and beneficial to
any markets across the country.
References
Job Hero. (2019). In https://www.jobhero.com/factory-worker-job-
description/
Study.com. (2018). In https://www.indeed.com/hire/job-
description/delivery-
Wikipedia. (2019). Ontario. In Ontario Ministry of Labour.
Retrieved from https://en.wikipedia.org/wiki/Supervisor
Heathfield S. (2018). In https://www.thebalancecareers.com/sample-
manager-job-description-1919126
DOLE, National Wages and Productivity Commission. (2019).
In http://www.nwpc.dole.gov.ph/regional_updates/new-wage-order-for-
workers-in-calabarzon/
Charter Selection. (2017). In https://www.charterselection.com/marketing-
job-descriptions/marketing-officer-job-description
Monster. (2019). United States.
In https://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-
advice/job-descriptions/accountant-general-job-description-sample.aspx