ANNEX J: OPERATIONAL PLAN

Production Process

In Milktihan, we sell not just different flavors of milk tea but

also, we offer pastries such as donuts, cakes and cupcakes and we

serve it, so we also rendered service.

Process Flow

Milktihan has a business process which aims to provide an

affordable product and high-quality services for our customers. Since

it is a business were we the business owners tend to sell milk tea and

pastries. This section shows the process flow of the business from the

inventory requisition flow to cash handling flow. The supply chain of

the business is also part of in these process flow.

The following are the process flow of the Milktihan:

List of the Production

Process Flowchart
 Procedures

1. Start
Start
The assigned
person will
2. The requisition inventory fill up the
purchased
starts with the assigned requisition
slip
person who will purchased
Pass the
purchased
and fill up the requisition
requisition
slip. slip to the
manager
3. Then pass it to the for
approval The
manager for approval. purchased
requisition
4. The manager approved by slip is
approved by
the purchase requisition slip the
manager
with a purchase order. Forward the
purchased
5. The purchased requisition
requisition
slip to the
slip will be forwarded to the
supplier
supplier.

6. End End

Table 1: Inventory Requisition Flow

List of the Production

 Procedures Process Flowchart

1. Start
Start
2. The assigned person will
The assigned
purchase the raw materials person will
purchase the
from the supplier. raw materials
Receive
3. The purchased product will
the
receive by the manager and the products Double check
the received
staff. products

4. The manager and the staff

will double check the

Received
purchased products to know if the good
conditions
it is at a good condition and the The
and right
products
products
right products. that have
and will
damage will
5.The manager received it in issue the
not be
Receiving
accepted.
good conditions and right Report and
forward to
products and will issue the cashier.

Receiving Report and forward

to cashier. Products that have

damage will not be accepted.

End
6. End

Table 2: Inventory Receiving Flow

 List of the Production
Process Flowchart
Procedures

1. Start
Start
Prepare and
2. Prepare and arrange the arrange the
ingredients
ingredients of the said product
of the said
product
together with the equipment.
together
3. Put ice and milk in a blender with the
Put ice and
equipment.
milk in a
and blend until smoot.
blender and
4. In a cup, add in cooked blend until
smoot. Add in
Tapioca Pearls and the cooked
Tapioca
powdered flavoring that a Pearls and
the
customer wants. Prepare the powdered
serving tool flavoring
5. Prepare the serving tool for for the said that a
product and customer
the said product and serve it to serve it to the wants.
customer.
the customer.

6. End End

Table 3: Production Process for Milk Tea Products

 List of the Production
Process Flowchart
Procedures

1. Start
Start
2. Prepare and arrange the

ingredients of the said product

together with the equipment. Prepare and

arrange the
3. In a medium bowl combine ingredients
with the End
flour, baking powder, and salt;
equipment.
set aside. In a large mixing bowl

combine eggs, sugar, and vanilla

and prepare the coating and

Make the Coat the
toppings for donuts. batter an donut
prepare the
4. On a well-floured surface, roll coating and
toppings for
the dough and cut the dough donuts.

into classic rings

5. Fry the doughnuts and drain

Fry and
the donuts on paper towels to drain the
Roll and cut
the dough. donuts
avoid a greasy eating experience.

6.Then coat the donut.

7. End

Table 4: Production Process for Donut Products

 List of the Production
Process Flowchart
Procedures

1.Start
Start

2. Prepare and arrange the

Prepare and
arrange the
ingredients and the
ingredients Preheat
equipment. and the the oven
equipment. and
3. Preheat the oven to 325 °F grease
and flour
(163 °C) and grease and flour a cake
pan.
a cake pan.

4. Cream the butter and Cream the

butter and
sugar. 
sugar. 
5. Add the eggs and vanilla. Add the
eggs and
vanilla.
6. Stir in the cake flour.
Stir in the
7. Pour the batter into the cake flour.

pan. Pour the

batter into
8. Bake the cake for 1 hour 15 the pan.

minutes. Bake the

cake
9. End
End

Table 5: Production Process for Cake Products

 List of the Production
Process Flowchart
Procedures

1. Start
Start
2. Cream together the butter with

the sugar until light and moist. End

Cream
3. Add the vanilla extract and mix together
the
it in. butter Let the
and cupcakes
4. Add the eggs (one at a time) to
sugar cool
the batter.

5. Add the flour with the baking

soda and milk Add the Bake the

vanilla cupcakes
6. Preheat oven to 350°F and extract
and mix
add the batter into the cupcake it in.

liners. Preheat
oven and
7. Bake the cupcakes for 15-20
Add the add the
minutes.
eggs to batter
the into the
8. Let them cool for a few minutes
batter. cupcake
in the pan then take them out. liners.
Add the flour with the
9. End baking soda and milk
Table 6: Production Process for Cupcakes
 List of the Production
Process Flowchart
Procedures

1. Start
Start End
2. Heat 5 quarts of water on high

heat to a rolling boil.

3. Add 3 cups of tapioca pearls Heat a

Pour
water on
and cook for 3 minutes on high tapioca
high heat
into a
to a rolling
heat. Stir lightly to prevent container
boil.
to store.
sticking.

4. Boil for 12 minutes on medium

heat with cover on.

Add Rinse the
5. Remove from heat and let sit for tapioca tapioca
pearls, and drain
15 minutes with cover on. cook it on excess
heat and water
6. Rinse tapioca under lukewarm stir lightly

or cold water and drain excess

water.
Boil for 12 Remove
7. Pour tapioca into a container to from heat
minutes on
medium and let sit
store.
heat with with
cover on. cover on.
8. End

Table 7: Production Process for Tapioca Pearls

 List of the Production
Process Flowchart
Procedures

1. Start
Start End

2. Dissolve the gelatin in hot

water.
Put the
Dissolve
coffee jelly
the
3. Combine with the coffee and into a
gelatin in
container
hot
sugar. to store.
water.

4. Pour the mixture into a

container.

5. Chill until firm. Combine Cut the

with the coffee
coffee jelly into
and a small
6. Cut the coffee jelly into a small
sugar. cube.
cube.

7. Put the coffee jelly into a

container to store. Pour the

mixture Chill
into a until
8. End container. firm.

Table 8: Production Process for Coffee Jelly

List of the Production

 Procedures Process Flowchart

1. Start
Start

2. The cashier will get the The cashier will

get the
customer’s order. customer’s
order.

3. The cashier will issue a

The cashier will
receipt and receive the issue a receipt
and receive the
customer’s payment. customer’s
payment.
4. The production staff will

prepare the order of the The production

staff will prepare
customer and serve it. the order of the
customer and
serve it
5. End
End

Table 9: Cash Sales Flow

 List of the Production
Process Flowchart
Procedures

1. Start
Start The cashier
2. The cashier will receive the will receive the
customer’s
customer’s payment and issue a payment and
issue a
receipt. The cashier
receipt.
will count
3. When the business end at 7pm, all the
income of
the cashier will count the all the the shop
when the
income of the shop for that day.
business
The cashier
hours end.
will prepare
4. The cashier will prepare the
the deposit
deposit slips and log book. slips and log
book.
Endorse
5. Endorse cash and deposit slips cash and
deposit
to the manager. slips to the
manager. Manager will
sign the log
6. Manager will sign the log book book and
deposit the
and deposit the cash to BDO.
Return cash to BDO.
validated
7. Return validated deposit slips to deposit
slips to the
the cashier for recording. cashier for
recording.
8. End
End
Table: 10 Cash Handling Flow

Raw Materials
 Table 11: List of materials, description and quality needed of the
Milktihan.

Raw Materials Description Quantity Needed

A. Direct Materials

B. Indirect
Materials

Total Material Costs

Quality Control

Providing good quality products and services for our customer is

one of the most important things in our business. We owners of the

Milktihan and its employers are giving all our effort to our customers

for us to reach their expectation in our business like a good quality

service and also giving the product that they want.

Maintaining the cleanliness and the good ambiance of the place

like the ingredients of our products should be arranged properly and

the unsold pastries will be put in a freezer, quality control of our

business is observed and maintained. If the process flows of the

business are followed correctly, the quality of our items can also be

sustained.
 Monitoring the supply and quality of the ingredient of our

products and our utensils will be continuous, if there is a bad

feedback from our customers it will be resolved by giving solutions and

if the customer will receive a wrong order it will be noted so that we

can pay more attention to our customers’ and give them the correct

order. With this move we can make a quality control in our business.

Milktihan’s quality control does not require a large amont of

money to ensure that the quality control plan of the business will be

maintained and followed since it is part of the business standard

operational procedures.

Waste Disposal

The waste disposal of our business is handled in accordance

with the city ordinances and other applicable local, national and

international Lawson environment. The Milktihan will follow the Davao

City Ecological Solid Waste Management Ordinance of 2009, (City

Ordinance No.0371-10) Section 10. Mandatory Segregation of Solid

Waste – The segregation of waste at source by all establishments is

mandatory.

The Milktihan owners also follow the Davao City Environment

and Natural Resources Office (CENRO) which mandated to ensure a

clean, green, and healthy environment by segregating waste properly

before disposal and recycling to reduce garbage like reusing plastic or

cartoons.

Milktihan does not invest any amount for waste disposal

because it is part of the production process of the business.

Facilities

Having a good and high quality of equipment’s can help the

Milktihan to easily implement all of their marketing strategies and also

it helps the business to have good and high-quality products.

Storage, Office and Store Location

The Office, Storage and store are located at Talomo, Davao City,

Davao del Sur. The business owners ensure that they built the

business in accordance with the law; comply all the requirements and

gets clearance from the local authorities.

Location Plan

Milktihan is located at Talomo, Davao City beside the RAC

building. The place is strategically located along the McArthur

Highway.
Figure 1: Shows the location of Milktihan in Talomo, Davao City as

provided by Google maps.

Milktihan’s shop is a rent a space at Talomo, Davao City, Davao

Del Sur beside the RAC building.

Store Lay-out
 The Milktihan’s layout, design and concept is protected by the

Republic Act 9150 Series of 2011, an “act of providing protection of

layout-designs (Topographies) of integrated circuits, amending for the

purpose certain sections of Republic Act no. 8293, otherwise known as

the intellectual property code of the Philippines and for other

purposes” (CDAsia, n.d).

Figure 2: Lay-out plan of Milktihan shop at Talomo, Davao City.

Equipment and Other Fixed Assets

Milktihan require equipment’s such as freezer, and air

conditioner. These equipment’s serves to maintain and preserve the

ingredients that will be used in making milk tea and also to minimize

the hotness of the said place.

Enable to start up the said business the owners must ensure

that there is enough supply of electric power for the said equipment’s

and the cleanliness by cleaning and monitoring the said equipment’s.

Table 12: List of Equipments and Other Fixed Assets, Number,

Specifications, and Purpose

Equipment/ Number Specifications Purpose

and
Other fixed
Assets
SEALING ONE (1) 200MM plastic sealer Use to seal
MACHINE the milk tea
Capacity: 500 per hour. products.

Automatic grade: manual.

Packaging type: plastic

 Weight: 13kg.

MILK TEA THREE 8 liters(200Xh240) For keeping

BARREL (3) the product
WATER JUG N.W :2.5KG warm/cold.

FREEZER ONE (1) Hanabishi HASREF 18 To store ice

and other
1.8 Cu ft. Freezer ingredients
in making
capacity (DIM milk tea.

weight):34.83

Fast Freezing mode

Handle both sides

 AIR ONE (1) Panasonic air con o.75hp To
CONDITIONER minimize
6.3m x 6.3m = 40m the hotness
of the
WRACR410 Remote place.

KITCHEN SINK ONE (1) For

AND WASHING costumers
SINK and staff
use.
TABLES AND 40 To be used
CHAIRS (FORTHY by the
) costumers,
NORMAL cashier and
CHAIRS staff in the
10 (TEN) said place.
ROUND
TABLE
10(TEN)
HIGH
CHAIRS

SOUND ONE (1) Two loud speakers with For live

SYSTEM band
10” woofers and performanc
e and for
integrated storage special
events.
compartment for cables

and other accessories

4XLR+1/4” mic/line.

Alto Mixpack 5 powered

sound system

200 W RMS, 400 W peak

 power removable 8-

channel.

oven One Roller Grill Convection For the

(1) production
Oven FC 60 of pastries ;
cakes,
Made of stainless steel cupcakes
and
Weighs 34 kg. and donuts,

Dimensions (mm) 595 x

610 x 590.

Table 13: List of Equipments and Other Fixed Assets, Suppliers

and Prices.

Equipment/ Suppliers Prices No. Total Terms

Other per of Cost of
 Fixed Unit Units Purchase
Assets
Freezer Hanabishi P14,999 1 P14,99 1-year
Appliances 9 warranty

Air Panasonic P10,000 1 P10,00 1-year

conditioner Appliances 0 warranty

Sealing LOCAL P3,500 1 P3,500 1-year

machine SUPPLIER warranty
Milk tea LOCAL P2,000 3 P6,000 1-year
barrel water SUPPLIER warranty
jug
Sound Gaisano P18,999 1 P18,99 1-year
system mall of 9 warranty
Davao
Tables and LOCAL P45,000 10(TABLE) P45,00
chairs SUPPLIER 40(CHAIRS) 0
Sink LOCAL P3,200 2 P6,400
SUPPLIER
Oven EMCOR P61,050 1 P61,05 1-year
San Pedro 0 warranty

Table 14: Schedule of Cost, Useful Life, and Depreciation Rate for

Equipment’s and Other Fixed Assets.

 Equipment Cost Estimated Depreciation rate
and other useful life (Annually)
fixed assets (years)

Freezer P14,999 5 5%

Air P10,000 5 5%
conditioner
Sealing P3,500 5 5%
machine
Milk tea P2,000 5 5%
barrel water
jug

Sound system P18,999 5 5%

Tables and P45,000 5 20%

chairs
Sink P3,200 5 20%

Oven P61,050 5 5%

Maintenance and Repair

 Maintenance and repairs of Freezer and air conditioner are

assigned independently to the technician of the supplier. Repairs refer

to the refrigeration system of two equipment that includes the

consumption of energy, maintaining the coldness, and the

consumption of the electricity if its increasing or not. Since the

equipment covered with warranty agreement for one to two years, the

supplier of the said equipment will provide all the repair of the said

units.

Maintenance and repair have an estimated monthly budget of

P1,000 and will be increased by 10% on the following years.

Staffing Requirements

Milktihan has a four operation staffs who work on the daily

basis of the business: five managers who can also serves as cashier,

barista, assistant baker and waiter/waitress. Our business also has a

baker, dishwasher, janitor and guard as part of our employee or staff.

Each of our staffs or employees went through a proper training in

terms of their jobs since they have a responsibility on the day-to-day

operation of the business. The main focus on hiring an employee or

staff for our business is to choose the best employees or staffs that

suits to the given job in order to ensure the competitive and

production advantages. All of our employees or staffs are monitored

and manage by the manager.We the owners of Milktihan together with

our employees or staffs maintain the cleanliness and sanitation of the

products we serve even inside and outside of the business.

The Milktihan follows the mandatory daily minimum wage rate

of Region 11. The daily minimum wage rate of the Region 11 according

to Department of Labor and Employment is ₱396.00 per day for non-

agriculture/Industrial/Commercial and Retail/Service employing more

than 10 workers.

Our employees or staffs work from Mondays to Saturdays or six

days a week. They are all a minimum wage earner in Region 11 and

they shall receive an ₱10.00 per day in their Cost of Living Allowance

according to Department of Labor and Employment. All of them is

given a Social Security System (SSS) and Pag-ibig Benefits. They are

also insured with Employees Compensation Commission (ECC) and

Phil health Insurance Corporation (PHIC). Milktihan is already a

registered employer with SSS, PHIC and PAG-IBIG.

Salaries and wages are given every 15 th and 30th month.

Deductions of employee shares in the benefits together with the

employer shares are remitted on the following month.

 Milktihan
Salaries and Benefits (Php.)
Staff Basic Pay COLA Allowance Total
Manager/ 6,200.00 200.00 1,500.00 7,900.00
Cashier
Baker/ 6,200.00 200.00 1,500.00 7,900.00
Assistant
baker/ Barista
Dishwasher/ 6,200.00 200.00 1,500.00 7,900.00
Janitor/ Guard
Total 18,600.00 600.00 4,500.00 23,700.00

Staff Employer Share Total

SSS ECC PHIC PAG-IBIG
Manager/ 496.00 10.00 138.00 124.00 768.00
Cashier
Baker/ 496.00 10.00 138.00 124.00 768.00
Assistant
Baker/ Barista
Dishwasher/ 496.00 10.00 138.00 124.00 768.00
Janitor/
Guard
Total 1,488.0 30.00 414.00 372.00 2,304.00
0

Staff Total Salaries Total Benefits

Manager/ Cashier 7,900.00 768.00
Baker/ Assistant 7,900.00 768.00
Baker/ Barista
Dishwasher/ 7,900.00 768.00
Janitor/ Guard
Total 23,700.00 2,304.00

Table 15: Salaries and Benefits

Production Plan

Milktihan need to produce at least 10 large, medium and small

size of any milk tea flavor and 10 servings of any kind of our pastries.

Therefore, at least 30 milk teas and 30 servings of any kind of pastries

to sell per day.

Production Volume

The volume indicate below is good for 3 months production of

the Milktihan.

List of raw Suppliers Price Volume Total Cost

Materials (Php.) (Php.)

For Milk Tea

Wintermelon Tea Alley 360.00/ 20 kilos 7,200.00

Milk Tea
Powder Supplier kilo
CVA Bldg.
Shop 8 JP
Laurel,
Bajada
Davao City
Strawberry Tea Alley 360.00/ 20 kilos 7,200.00
Milk Tea
Powder Supplier kilo
CVA Bldg.
Shop 8 JP
Laurel,
Bajada
Davao City
Chocolate Tea Alley 360.00/ 20 kilos 7,200.00
Milk Tea
Powder Supplier Kilo
CVA Bldg.
Shop 8 JP
Laurel,
Bajada
Davao City
Ceremonial Tea Alley 360.00/ 20 kilos 7,200.00
Milk Tea
grade Matcha Supplier Kilo
CVA Bldg.
green tea powder Shop 8 JP
Laurel,
Bajada
Davao City
Brown Sugar Baking 48.00/ 10 480.00
Pantry C
Lizada St. Kilo Kilos
Poblacion
District,
Davao City,
Davao Del
Sur
Muscovado Baking 65.00/ 10 kilos 650.00
Pantry C
Sugar Lizada St. Kilo
Poblacion
District,
Davao City,
Davao Del
Sur
Tapioca Pearls Tea Alley 105.00/ 10 1,050.00
Milk Tea
Supplier Kilo Kilos
CVA Bldg.
Shop 8 JP
Laurel,
Bajada
Davao City
Coffee Jelly Tea Alley 230.00/ 10 kilos 2,300.00
Milk Tea
Supplier
 CVA Bldg. Kilo
Shop 8 JP
Laurel,
Bajada
Davao City
Black Tea Tea Alley 450.00/ 20 9,000.00
Milk Tea
Supplier Kilo Kilos
CVA Bldg.
Shop 8 JP
Laurel,
Bajada
Davao City
Fresh Milk Baking 109.89 15 1,637.25
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Evaporated Milk Baking 68.09 15 1,021.35
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Condense Milk Baking 47.00 15 705.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Carrot Bankeroha
n Public
Market
Taro Tea Alley 360.00/ 20 7,200.00
Milk Tea
Supplier CVA
 Bldg. Shop 8 Kilo Kilos
JP Laurel,
Bajada Davao
City
Dragon Fruit Tea Alley 360.00/ 20 7,200.00
Milk Tea
Supplier CVA Kilo Kilos
Bldg. Shop 8
JP Laurel,
Bajada Davao
City
Caramel Syrup Tea Alley 160.00 15 2,400.00
Milk Tea
Supplier CVA
Bldg. Shop 8
JP Laurel,
Bajada Davao
City
For Pastries

All-purpose flour Baking 58.00/ 40 2,320.00

Pantry C
Lizada St. Kilo Kilos
Poblacion
District,
Davao City,
Davao Del
Sur
Cake flour Baking 58.00/ 20 kilos 2,320.00
Pantry C
Lizada St. Kilo
Poblacion
District,
Davao City,
Davao Del
Sur
Cocoa Powder Baking 310.00/ 30 kilos 6,200.00
Pantry C
Lizada St. Kilo
Poblacion
District,
Davao City,
Davao Del
Sur
Baking Powder Baking 145/ 15 2,175.00
Pantry C
Lizada St. Kilo Kilos
Poblacion
District,
Davao City,
Davao Del
Sur
Baking Soda Baking 28.00 10 280.00
Pantry C
Lizada St. Kilos
Poblacion
District,
Davao City,
Davao Del
Sur
Brown Sugar Baking 48.00/ 20 kilos 960.00
Pantry C
Lizada St. Kilo
Poblacion
District,
Davao City,
Davao Del
Sur
Icing Sugar Baking 90.00 20 1,800.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Butter Baking 82.35 20 1,647.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Canola oil Baking 125.00 10 1,250.00
Pantry C
Lizada St.
 Poblacion
District,
Davao City,
Davao Del
Sur
Vegetable oil Baking 75.00/ 1 10 750.00
Pantry C
Lizada St. liter liters
Poblacion
District,
Davao City,
Davao Del
Sur
Cream cheese Baking 207.00 10 2070.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Egg Egg 162.50/ 30 4,875.00
Supplier
Davao Tray trays
Farms
Corporation
San Ped
Extension
Baranggay
5-B Davao
City
Vanilla Extract Baking 199.00/ 1,180 995.00
Pantry C
Lizada St. 236 ml. ml.
Poblacion
District,
Davao City,
Davao Del
Sur
Coffee Baking
Pantry C
Lizada St.
Poblacion
 District,
Davao City,
Davao Del
Sur
Salt Baking 5.35/ 1,250 26.75
Pantry C
Lizada St. 250 g. g.
Poblacion
District,
Davao City,
Davao Del
Sur
Low Fat Milk Baking 105.00 15 1,575.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Evaporated Milk Baking 29.00 15 435
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Buttermilk Baking 41.80 15 627.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Apple sauce

Red food coloring Baking 58.00 10 580.00

Pantry C
Lizada St.
Poblacion
District,
 Davao City,
Davao Del
Sur
Whipped cream Baking 189.00 20 3,780.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Heavy cream Baking 189.00 20 3,780.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Carrots Bankeroha
n Public
Market
Orange Bankeroha
n Public
Market
Cherries

Cornstarch

Mango puree

Unflavored Baking 25.00 15 375.00

Pantry C
gelatin Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Chocolate chips Baking 109.00 20 2,180.00
Pantry C
Lizada St.
Poblacion
 District,
Davao City,
Davao Del
Sur
Unsalted butter Baking 66.00 15 990.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
White cake mix Baking 250.00/ 15 kilos 3,750.00
Pantry C
Lizada St. Kilo
Poblacion
District,
Davao City,
Davao Del
Sur
Sour cream Baking 90.00 15 1,350.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Granulated Baking 45.00 20 900.00
Pantry C
sugar Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Confectioner’s Baking 48.00 20 960.00
Pantry C
sugar Lizada St.
Poblacion
District,
Davao City,
Davao Del
 Sur
Almond extract Baking 44.00 15 660.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Shredded Bankeroha
n Public
coconut Market

Lemon Bankeroha
n Public
Market
Fresh

strawberries

Margarine Baking 95.00 10 950.00

Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Active dry yeast Baking 50.00 20 1,000.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Fruit jam Baking 96.00 20 1,920.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
 Sur
Greek yogurt Baking 190.00 15 2,850.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Light corn syrup Baking 93.00 5 465.00
Pantry C
Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Rainbow Baking 25.00 10 250.00
Pantry C
sprinkles Lizada St.
Poblacion
District,
Davao City,
Davao Del
Sur
Table 16: List of raw materials, Suppliers, Price, Volume & Total Cost

Cost of Raw Materials

Costs of the raw materials are provided above.

Labor Costs

Our business Milktihan which is a milk tea shop is offering

services and products to the people. The labor cost plays a major role
in operating expenses it sums up all the wages paid to the employees

and their benefits.

Overhead Expenses

Ongoing expenses of an operating a business, it cannot be

traced to or identified with any particular cost unit. Our business is

just starting so an overhead is the start-up entrepreneur who rents

commercial space in a trendy location for an operation. The money

spent on rent might be better invested in advertising or promotion for

the new business. It is important to monitor overhead costs in our

business because they aren’t directly related to revenues they can

drain a business unnecessarily when not properly controlled.