PRODUCTION AND MARKETING OF MALUNCHYRON CHIPS

(GREENCRISP DELIGHT ENTERPRISE)

Proposal Development Project

Submitted to the Faculty of the

Department of Management

Cavite State University - Carmona Campus

Carmona, Cavite

In partial fulfilment

of the requirements for the degree

Bachelor of Science in Business Management

KIM CRIS C. PASION

FROILAN KLEIN O. FERNANDEZ

ANGELA AMOR MEDINA

JUNE 2024
APPROVAL SHEET
 BIOGRAPHICAL DATA

The entrepreneur, Kim Cris C. Pasion was born on February 28, 2002 in Carmona,

Cavite. He is the third child among the 5 children of Tomateo Pasion and Mrs.

Mariadel Pasion. He is currently residing at Zone 7 Corehouse Bancal Carmona,

Cavite with his family.

He attended schools when he was in elementary in General Luna Central

Elementary School graduated in 2014. While he attended of his 4 school year in

Junior High and finished the last 10th grade at Carmona National High School located

at Carmona, Cavite in 2018. He attended senior highschool and take Accountancy and

Business Management Strand in Angelo Levardo Loyola Senior High School and

graduated in the year 2020.

In his search for a college school, he tried only one school and got luck because he

got enrolled at Cavite State University - Carmona Campus under Bachelor of Science

in Business Management major in Marketing Management program.

He obtained his degree in 2026.

ⅲ
 BIOGRAPHICAL DATA

The entrepreneur, Froilan Klein O. Fernandez, was born on August 22, 2003 in

Silang, Cavite. He is the eldest child among the 3 children of Mr. Rolando Canoy and

Mrs. Marilyn O. Fernandez. He is currently residing at Block 6E Lot 4 GMA Village,

Barangay Poblacion 5, General Mariano Alvarez, Cavite with his family.

He attended different schools when he was in elementary due to moving from

place to place but he finished at Mapaya 1 Elementary School at San Jose Occidental,

Mindoro for his primary education in 2016. While he attended of his 3 school year in

Junior High at San Jose National High School and finished the last 10th grade at

Manuel I. Santos Memorial National High School located at Taytay, Rizal in 2022.

In his search for a college school, he tried only one school and got luck because

he got enrolled at Cavite State University - Carmona Campus under Bachelor of

Science in Business Management major in Marketing Management program.

He obtained his degree in 2026.

ⅳ
 BIOGRAPHICAL DATA

The entrepreneur, Angela Amor O. Medina was born on September4, 2003 in

Macalelon Quezon. She is the third child among the 3 children of Marvin O.

Medina and Mrs.Amor O.Medina. He is currently residing at Lantic Carmona cavite.

She attended schools when she was in elementary in Maduya elementary school and

graduated in 2016. While she attended of her 4 school year in Junior High and

finished the last 10th grade at Carmona National High School located at Carmona,

Cavite in 2020.

In her search for a college school, he tried only one school and got luck because she

got enrolled at Cavite State University - Carmona Campus under Bachelor of Science

in Business Management major in Marketing Management program.

She obtained his degree in 2026.

ⅴ
 ACKNOWLEDGEMENT

The entrepreneurs would like to take this privilege to give thanks and express

an appreciation behind this successful enterprise development project:

Mr. Harold M. Magallanes, adviser and technical critic, for his unending love,

passion, and encouragement to the entrepreneurs. Also, for molding the entrepreneurs

to be the best version of themselves so that they can confidently accomplish their

paper.

Mr. Michael G. Consignado, Ph. D., Department Research Coordinator, for

showing entrepreneurs the greatest affection and support.

Ms. Maria Andrea C. Francia, Chair of the Department of Management, for

willingly lending time and assistance to complete this project.

Mr. Carlo Emil B. Manabo, Campus Research Coordinator, for his unwavering

assistance and desire to increase business owners' self-confidence.

Prof. Cristina M. Signo, Campus Administrator, for her wholehearted support in

approving the project.

To the family of entrepreneurs, for unending love and support in all aspects;

and

To Almighty God, for the provisions, guidance, protection and, blessings all

throughout the process. All for Him!

The entrepreneurs are really blessed and grateful.

THE ENTREPRENEURS
 TABLE OF CONTENTS

PAGE

APPROVAL SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ⅱ

BIOGRAPHICAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ⅲ

ACKNOWLEDGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ⅵ

LIST OF TABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ⅸ

LIST OF FIGURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ⅺ

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Nature of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Objectives of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Time and Place of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

DESCRIPTION OF THE ENTERPRISE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Organization and Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Time Table of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Manufacturing Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Direct Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Indirect Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Tools and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Office and shop supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Process flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Manufacturing volume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Fixed cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Variable cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
MARKETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Source of Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Capital Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Projected Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Projected Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
 LIST OF TABLES

TABLE PAGE

1. Cost of direct materials for Malunchyron . . . . . . . . . . . . . . . . . . . . . . . 11

2. Cost of indirect materials for Malunchyron . . . . . . . . . . . . . . . . . . . . . . . 12

3. Tools and equipments for Malunchyron . . . . . . . . . . . . . . . . . . . . . . . . . . 13

4. Office and shop supplies for Green Crisp Delights . . . . . . . . . . . . . . . . . . 14

5. Project Manufacturing volume of Malunchyron

Chips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

6. Fixed cost to be used in the manufacturing of Malunchyron

Chips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7. Variable cost to be used in the manufacturing of Malunchyron

Chips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8. Promotional Tool used for Malunchyron . . . . . . . . . . . . . . . . . . . . . . . . . . 19

9. Project Pricing of Malunchyron

Chips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

10. Capital Breakdown of Green Crisp Delights Enterprise . . . . . . . . . . . . . . . 23

11. Projected Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

12. Projected Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

 LIST OF FIGURES

FIGURE PAGE

1. Logo of Greencrisp Delight Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2. Location map of Greencrisp Delight Enterprise . . . . . . . . . . . . . . . . . . . . 6

3. Organizational chart of Greencrisp Delight Enterprise . . . . . . . . . . . . . . . 7

4. Gantt chart of activities of Greencrisp Delight Enterprise . . . . . . . . . . . . 9

5. Manufacturing area layout of Greencrisp Delight Enterprise . . . . . . . . . . 10

6. Process flow to be used in the manufacturing of Malunchyron Chips . . . 15

7. Picture of Malunchyron Chips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

 PRODUCTION AND MARKETING OF MALUNCHYRON (GREENCRISP
DELIGHT ENTERPRISE)

KIM CRIS C. PASION

FROILAN KLEIN O. FERNANDEZ

ANGELA AMOR MEDINA

An enterprise development project proposal submitted to the faculty of the

Department

of Management, Cavite State University – Carmona Campus Carmona, Cavite in

partial fulfilment of the requirements for the degree of Bachelor of Science in

Business

Management Major in Marketing Management. Prepared under the supervision of Mr.

Harold Magallanes.

INTRODUCTION

Chicharon, a crispy and flavorful Filipino snack, has become an integral part

of the country’s culinary landscape. This deep-fried delight, known for its irresistible

crunch and savory goodness, is more than just a snack — it’s a cultural icon that has

evolved over the years. In this exploration of chicharon, we dive into its historical

1
 roots, preparation methods, regional variations, cultural significance, and the

unique

experience it offers to those who relish its crispy allure. (Silayushi Japanese

Restaurant, 2019)

Chicharon is knowned for its filled flavor, perfect to pair with a rice meal, as a

road trip snack, or even pairing it with alcohol during those late-night drinking

sessions. Chicharon is a Filipino snack dish made with dried-up pork rind and then

deep-fried to achieve a puffed consistency, usually served with vinegar dip.

However, while chicharon Philippines is typically made of fried pork belly or pork

rinds, these delicious cracklings have taken many forms in Philippine cuisine and are

also made using other ingredients such as chicken skin, pork ears, omentum

(bulaklak), and intestines (isaw) as well as tuna skin. (Delicacies.ph, 2023)

Chicharon’s roots are deeply embedded in the Philippines’ culinary history,

reflecting a confluence of cultural influences and the creative use of available

ingredients. The term ―chicharon‖ is derived from the Spanish word ―chicharrón,‖

which broadly refers to any type of deep-fried meat or skin. The concept of frying

pork skin likely found its way to the Philippines through the influence of Spanish

colonialists. (Silayushi, 2019)

Thus, entrepreneurs came up with the idea of creating a new kind of chicharon. It is a

healthier alternative to traditional chicharon, made from malunggay leaves. To create

our malunggay chicharon, we start by carefully selecting fresh malunggay leaves,

known for their numerous health benefits. We then combine these nutrient-rich leaves

with a mixture of rice flour, creating a perfect balance of flavors and textures.

2
 After preparing the mixture, we season it with just the right amount of salt and

pepper, enhancing the taste profile of our chicharon.

Next, we take the mixture and place it in a specially designed molder, shaping

it into bite-sized pieces. These molds help us achieve a consistent size and shape for

our chicharon, ensuring a visually appealing product.

Once the molds are filled, we carefully steam the chicharon, allowing the

flavors to infuse and the mixture to set. This steaming process ensures that our

chicharon maintains its shape while also retaining its moisture, resulting in a

satisfyingly crispy texture.

To further enhance the texture and flavor, we then proceed to dry the

chicharon under the warm embrace of the sun. This natural drying process allows the

chicharon to develop a delightful crunch, while also preserving its nutritional value.

Finally, when our malunggay chicharon has been perfectly dried, we deep fry

it to achieve that irresistible golden brown color and crispy texture. This step adds the

finishing touch, creating a delightful snack that is both visually appealing and

incredibly tasty.

At Green Delights, we take pride in crafting our malunggay chicharon with

utmost care and attention to detail. Each step in the process is carried out with love

and dedication, resulting in a snack that not only satisfies your taste buds but also

nourishes your body with the goodness of malunggay. These healthy crackers are

packed with nutrients that can boost your immune system.

3
Nature of the Project

Moringa, locally known as malunggay, is native to subtropical regions in the

world where it has been used as a low-cost solution to undernourishment, as well as

remedy to common ailments of the locals. According to Fahey (2005), all parts of the

tree, particularly the leaves, are edible and with reported nutritional, prophylactic and

therapeutic uses. Malunggay leaves are rich in minerals, vitamins and other essential

phytochemicals (Gopalakrishnan & Deriya,2016).

These are attributed to the high levels of macro- and micronutrients and

phytonutrients in M. oleifera. Hence, moringa is dubbed as a ―Miracle Tree‖. The

leaves have the highest amount of calcium and phosphorus among vegetables

(Prabhakar and Hebbar 2008)

For this project, the enterprise will be in the form of partnership, with each

entrepreneur responsible for providing an equal amount of capital to run the business.

In addition to that, the company is named GreenCrisp Enterprise as it offers local

healthy foods; crackers. Shown below is the logo of the company (Fig.1).

Figure 1. Enterprise Logo of GreenCrisp Delights

4
Objectives of the Project

Overall, the main goal of this project is to enhance the entrepreneurial skill of

the entrepreneurs and to gain knowledge on how to incorporate a business to gain

profit.

In particular, the project aims to;

1. introduce an innovative version of chicharon in the market;

2. determine the marketability of Malunchyron Chips;

3. determine the gain profit in 3 months operation of Greencrisp Delight

Enterprise, and;

4. identify and solve the problems that may occur during the whole period

operation of Greencrisp Delight Enterprise.

Time and Place of the Project

The enterprise will operate from March 2024 to June 2023. The production

will be done every Monday, Tuesday and Wednesday while selling and distribution

will be done by the rest of the week except Sunday. The production activities will be

from 8 am. to 4 p.m .; while the selling and distribution activities will be from 9 a.m.

to 5 p.m. Nine Sundays will be allotted for purchasing of raw materials, and

monitoring and recording of the daily transactions of the enterprise. The remaining

Sundays will serve as the rest days of the entrepreneurs.

5
 Further, the enterprise will be located at Barangay Lantic Carmona City,

Cavite. This location is near to schools and some companies which are the markets of

the enterprise. (Fig.2)

Figure 2. Location map of GreenCrisp Enterprise

6
 DESCRIPTION OF THE ENTERPRISE

Organization and Management

In establishing an enterprise, it is essential to have entrepreneurs who would

manage and lead the whole organization for it to attain the goals and objectives of the

business enterprise. The GreenCrisp Enterprise will be managed and supervised by

three entrepreneurs of which both will perform specific roles and do their assigned

task effectively and efficiently. Organizationally, the positions will be fairly and

equally distributed to both entrepreneurs which will be based on their skills and the

knowledge of the assigned task (Fig. 3).

Figure 3. Organizational chart of GreenCrisp Enterprise

Particularly, Angela Amor Medina will be the financial manager of which she

will deal with handling of capital, performing the computation of the net income, and

7
monitoring the budget as well. On the other hand, Froilan Klein O. Fernandez will be

the marketing in-charge. As the marketing manager, he will ensure that all the needed

materials will be available. He will also deal with the distribution of the product,

transaction with the customers, and conceptualization of the marketing strategy. And

lastly, Kim Cris C. Pasion will be responsible for the sales of the enterprise and he

will take the responsibility in the production and sales aspect of the enterprise, such as

production of the product, monitoring of all the materials needed, the decision making

in terms of design, styles, and features of the product; and selling the product and

communicating with the customers.

Also, all entrepreneurs will ensure that the right amount of product will be

produced properly and efficiently. All in all, the entrepreneurs will act responsibly as

the owners of the firm for overall attainment of the goals and objectives of the

enterprise.

A partnership is an arrangement between two or more people to oversee

business operations and share its profits and liabilities. In a general partnership

company, all members share both profits and liabilities (Kopp, 2023). The founding

partners of the enterprise will distribute management duties. The four duties will be

the following: marketing, sales, finance, and production.

Manufacturing

The production process will be done by creating a finished product from its raw

materials which is to be sold in the market. The production of Malunchyron will be

scheduled every Mondays to Wednesday from 8 a.m. to 4 p.m. The initial capital will

8
be used to purchase the raw materials.

Time Table of Activities.

The Gantt chart shows the starting time and the duration of the planned

activities that are listed. March 2024 will be the starting point of planning phase of the

project. On April 2024 until June 2024 will be the start and ending period of the

implementation and control phase. This period was chosen as the enterprise will be

required to operate for 4 months.

Figure 4. Gantt chart of activities of Greencrisp Delights Enterprise

Manufacturing Area.

The production area is designed to make a neat and clean, and smooth process

of our product. The actual production area of Greencrisp Delight Enterprise will be

9
located at Blk1 Lot 75, Cedar 1, Brgy. Lantic, Carmona, Cavite. Our production area

will have a sub-areas such as: (1) storage room, where all cooking tools and

equipment’s are neatly organized, the raw materials that are keep clean and labeled

and other ingredients for our product; (2) cooking area, the part of our manufacturing

area where our desired product will be cooked and processed; (3) drying area, this is

located outside of our manufacturing area. In this area, there are tables placed here

where the raw product will be set in the sunlight for drying process; (4) washing area,

where all of the materials that used in production of product will be washed and

sanitized; (5) packaging area, where the finished product will be packed and labeled,

and; (6) comfort room, that are for staff personal use.

Figure 5. Greencrisp Delights Enterprise manufacturing area layout

10
Direct Materials.

According to Carter (2009) " Direct raw material costs are all raw materials that

form an integral part of the finished product and are included explicitly in the

calculation of production costs". The Direct Materials of MALUNCHYRON CHIPS

are: Malunggay leaves, Rice flour, Salt, Chicken Powder and cooking oil. For The

production of MALUNCHYRON CHIPS, The overall cost amounted to Php 1,075.

(Table 1)

Indirect Materials.

According to Ahmad (2009) "The cost of production is the costs incurred in

processing raw materials into a product." The indirect Materials to be used are:

11
 Sticker paper, Logo print and Pouch for the packaging of Malunchyron (both

Cheese and Plain). Overall the total amount for the three months would be Php 9,680.

(Table 2)

Tools and Equipment.

The tools and equipment used in the preparation process would be essential to

ensure consistency and accuracy in the results. Here is the list of the tools and

equipment that would be important for making Malunggay Chicharon: Deep Fryer or

Deep Pan, Molder, Mixing Bowl, Slotted Spoon, Measuring Spoons and Cups, Food

Processor, Storage Container, LPG Tank, Colander, Caserole, Frying Paddle,

Chopping board, Portable stove,and kitchen weighing scale. The Overall amount For

Malunchyron chips Tools amd Equipment is Php 4,134.00. (Table 3)

12
Table 3. Tools and equipment to be used in the production of Malunchyron

Office Shop and Supplies.

You're going to need a variety of shop and office supplies to run a profitable

Malunggay Chicharon business and keep things running smoothly. The following

items are necessary for a Malunggay Chicharon business's office and shop: a , pens,

notepads, calculators, record book, receipt pad, facemask, tissue paper, garbage bag,

dishwashing liquid, sponge, apron, Pot holder, kitchen towel, and hairnet.(Table 4)

13
Table 4. Office and shop supplies to be used by GreenCrisp Enterprise

Process Flow.

In order to produce 30 packs of Malunchyron, the entrepreneurs will follow

specific procedures. The procedures include: Preparation, Mixing, Steaming, Drying,

Frying and Packaging. (Fig. 6)

14
 Figure 6. Process flow to be followed in the production of Malunchyron

Preparation.

In making this product, all ingredients need to be prepared. You need 3 cups of

processed malunggay leaves, 2 cups of rice flour, salt, pepper, cooking oil, and water.

You need to prepare also the tools and equipment will be used such as measuring cups

and spoons, mixing bowl, deep fryer pan, molder, food processor, portable stove,

steamer, container, knife, weighing scale, colander, spoon and fork, caserole,

chopping board, and frying ladle.

Mixing.

In a mixing bowl, put the 3 cups of processed malunggay leaves, 2 cups of rice

flour, 2 tsp of salt, 1 tsp of pepper, and 2 cups of water. Using a spoon stir it until the

desired mixture is achieved.

15
Steaming.

Coat the molders with cooking oil, put a medium amount of the mixture of

malunchyron and put it in the steamers for 5 mins.

Drying.

Remove the steamed malunchyron mixture and put it in a clean container. Place

it directly in the sunlight for 2-3 days.

Frying.

Heat the oil and set the fire to medium, make sure the oil is very hot before you

deep fry the steamed malunchyron mixture. Deep the mixture and wait for the mixture

to stretch out then put it in a clean container.

Packaging.

Let the oil drain and you can now put it in our packaging pouch.

Manufacturing Volume.

The entrepreneurs gathered information from their competitors as basis of the

production volume of the product. The entrepreneurs consider the direct competitors

which include the gender and development livelihood project of Biñan City, Laguna

16
and the ―Adventure of Zero‖ of JA Enterprise. According to the interview and

research of the entrepreneurs with their competitors, the first competitor is producing

and selling 100 packs of mushroom chips per day. While, the second competitoris

producing 95 packs of litsong kawali chips per day. With these, the entrepreneurs

decided to produce Malunchyron with volume less as that of the competitors since

they will be a new business enterprise. Likewise, their capacity to produce is only

around 40 to 60 packs with enough learning and experience in producing the product.

. In addition, the entrepreneurs conducted a sensory evaluation and found out

that 50 percent of the participants want plain flavor and 50 percent want cheese flavor.

That is, for the first month, a total of 125 will be produced for plain flavor and 125

packs for cheese.

For the second month, a total of 270 packs of Malunchyron is projected to be

produced and sold. Particularly, 135 packs for plain flavor will be produced and 135

packs for cheese flavor packs of Malunchyron is projected to be produced and sold.

For the third month, a total of 280 packs of Malunchyron is projected to be

produced and sold. In particular, 140 packs for plain flavor will be produced and 140

packs for cheese flavor. An increase of 32 percent based on the first month’s volume

for the second month is estimated while there is no particularly increase based on the

first month’s volume for the third month is projected. This is due to the observed

rainy seasons and to maybe seize the opportunity for additional sales and to sustain

the needs of their target market who will patronize the product.

All in all, the projected production volume of Green Crisp Enterprise for three months

of operation will be 800 packs of Malunchyron (both Plain and Cheese) (Table 5).

17
Table 5. Production volume of Malunchyron

Fixed Cost.

According to Small Business Authority (2012) and Regus (2010) describe fixed

costs on marketing staff, designers, and office space as being converted to variable

costs. The Fixed cost for the three months process are (1) Office and Shop supplies (2)

Advertising Expense (3) tools and Equipment (4) allowance of the Entrepreneurs (5)

Electricity (6) Rentals (Production site) 300 per month (7) LPG tank. The Overall

Total amount for the Fixed cost Of MALUNCHYRON CHIPS is Php 12,893.00

(Table 6)

Table 6. Fixed costs of Green Crisp Delight Enterprise

18
Variable Cost.

According to Noreen and Soderstorm (1994) suggested that in terms of activity

level, costs are divided into fixed and variable. Variable costs change proportionately

with changes in level of activity due to the increase of production volume. These cost

is the Direct materials and indirect materials, During three months of Process, The

seperate Variable Of MALUNCHYRON CHIPS - Malunchyron Plain and cheese

amounted to Php 5,340 and Php 5,390.00. The overall variable cost amounted to Php

14,920.00 (Table7)

Table 7. Variable Cost of Green Crisp Enterprise

MARKETING

Marketing is a societal process by which individuals and groups obtain what

they need and want through creating and exchanging products and value with others

19
 (Kotler & Armstrong, 2015). Likewise, marketing provides products or

services which meet the needs and wants of customers, focusing on basic marketing

concepts and applications. Through the use of marketing, the entrepreneurs easily

identified what kind of product is needed in the society. Also, it helps the

entrepreneurs to identify the product that they shall produce and the kind of

promotion strategy they will use to advertise the product and keep the customer

loyalty.

Product.

This can be classified as good or service that is being consumed. Malunchyron

is a delicious and healthy finger food that can be enjoyed on any occasion. This

product is made using malunggay, which is also a superfood packed with nutrients.

Consuming malunggay can have various health benefits, such as improving blood

glucose control, lowering the risk of cancer, and promoting bone health. It's a great

source of minerals and vitamins too. The entrepreneurs behind Malunchyron believe

that everyone, especially kids, will love the taste of this crispy chip. They have

innovated the product by using malunggay, making it a nutritious and tasty snack.

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 Figure 7. Picture of Malunchyron

Price.

Price refers to the amount where the consumers will pay for the specific product

or service (Britannica, 2017). As number of economic factors has a huge effect in

pricing, pricing is a fundamental consideration that receives a major emphasis in

marketing. With this, the price of Malunchyron is systematically computed given the

factors observed by the entrepreneurs. First, the entrepreneurs determined the prices

of their competitors and used cost- plus pricing before setting their price at Php 75.

Accordingly, the prices of their competitors range from Php 75 to Php 100. After

consideration, the entrepreneurs computed the unit cost by adding the variable costs

and fixed costs of producing Malunchyron and dividing the sum to the total

production volume. From the unit cost, mark-up is computed in consideration of the

selling price set by the entrepreneurs.

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 Relatively, to determine the general acceptability of Malunchyron, a sensory

evaluation to 50 respondents is conducted. The evaluation revealed that 61 percent out

of 50 respondents liked the color of the product very much (Appendix Fig. 2); 71

percent liked the texture very much (Appendix Fig. 3); 78 percent liked the taste very

much (Appendix Fig. 4); 64 percent liked the aroma very much (Appendix Fig. 5);

and 79 percent generally accepted the product (Appendix Fig. 6).

For the pricing of Malunchyron, the computation is as follows (Table 9):

Malunchyron (Plain) Unit Cost = Fixed Cost + Variable Cost

Production Volume

= Php 12,893.00 + Php 5,340.00

400 packs

= Php 45.58

Unit Cost = Php 45.58

Selling Price = Php 50 (set by the entrepreneurs)

Mark-up = Selling Price – Unit Cost

= Php50.00 – Php 45.58

= Php 4.42

Mark-up = Php 4.42

Malunchyron (Cheese) Unit Cost = Fixed Cost + Variable Cost

Production Volume

= Php 12,893.00 + Php 5,390.00

400

= Php 45.71

Unit Cost = Php 45.71

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 Selling Price = Php 50 (set by the entrepreneurs)

Mark-up = Selling Price – Unit Cost

= Php 50.00 – Php 45.71

= Php 4.29

Mark-up = Php 4.29

Table 9. Pricing of Malunchyron

FINANCE

Sources of capital. Capital is crucial to function a business for it is the money that
shall be used to build, run, or grow a business. The Green Crisp Delights Enterprise
provided an equal amount of money as their initial capital, since it was a partnership
type of business. Specifically, Php 5,000.00 for each entrepreneur for an overall total
of 15,000. The stated contributions from the entrepreneurs will come from their
parents and savings.

Capital Breakdown. The starting capital of 30,000 will be distributed to the direct
materials and indirect materials to be used in the production of Malunchyron. Other
expenses to be incurred will also have an allocation including the costs for office and
shop supplies, tools and equipment, rentals, allowance, utilities, and transportation.
(Table 10)

Table 10. Capital breakdown of Green Crisp Delights Enterprise

TOTAL PERCENTAGE
ITEM
(Php) (%)
Direct materials 1,050.00 3.50
Indirect Materials 9,320.00 31.07
Utilities 400.00 1.33
Rent 900.00 3.00
Allowance 4,500.00 15.00
Entrepreneur 3.00 0.01
Spoilage 0.00 0.00
Transportation 1,080.00 3.60
Tools and Equipment 4,134.00 13.78
Office and Shop Supplies 969.00 3.23
Advertising expense 300.00 1.00
Cash in Bank 3,500.00 11.67
Cash on hand 3,700.00 12.33
TOTAL 30,000.00 100

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Net Income. Calculated by subtracting all expenses from total sales, amounts to PHP
3,490.25 for Green Crisp Delights Enterprise’ first three months of operation, as
indicated in (Table 11). The figures presented in the table reflect the initial markup for
each product prior to any adjustments.

Table 11. Projected Net Income

PRODUCT APR.1-APRIL30 MAY.1-MAY.30 JUN.1-JUN.30 TOTAL
NAME (Php) (Php) (Php) (Php)

Malunchyron - Plain 552.50 596.70 618.80 1,768.00

Malunchyron - Cheese 536.25 579.50 606.60 1,722.35

GRAND TOTAL 1,088.75 1,176.20 1,225.40 3,490.35

Sales. Based on the production volume and the selling price of Malunchyron
amounting Php 50.00 each, the enterprise will obtain a total of Php 6250.00
(125pieces of Malunchyron - Plain) and also Php 6250.00 (for 125 pieces of
Malunchyron – Cheese) for the first month; Php 6,750.00 (135 pieces of Malunchyron
- Plain) and also Php 6750 (for 135 pieces of Malunchyron – Cheese) for the second
month; and Php 7000.00 (140pieces of Malunchyron - Plain) and also Php 7000.00
(for 140 pieces of Malunchyron – Cheese) for the third and last month of selling. All
in all, with the projected volume of 800 pieces of Malunchyron (both Plain and
Cheese), there would be Php 40,000 total projected sales.

Table 12. Projected sales

PRODUCT APR.1-APR.30 MAY1-MAY30 JUN.1-JUN30 TOTAL
NAME (Php) (Php) (Php) (Php)

Malunchyron - Plain 6,250.00 6,750.00 7,000.00 20,000.00

Malunchyron - Cheese 6,250.00 6,750.00 7,000.00 20,000.00
GRAND TOTAL 12,500.00 13,500.00 14,000.00 40,000.00

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 APPENDICES

Appendix Figure 2. Result of sensory evaluation according to color

Appendix Figure 2. Result of sensory evaluation according to Texture

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Appendix Figure 3. Result of sensory evaluation according to Taste

Appendix Figure 4. Result of sensory evaluation according to Aroma

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Appendix Figure 5. Result of sensory evaluation according to General Acceptance

AUDIT FORM

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DOCUMENTATION DURING SELLING

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