A Project Feasibility Study

Presented to the

Faculty College of Accountancy

AMPY CRACKERS

In Partial Fulfillment of:

The Requirements for the Degree ofBachelor of Science in Accountancy

By the Proponents:

ACOVERA, ROXANNE P.HALILI, VANESSA P.NULUD, ABIGAIL D.PAMINTUAN, JOANNE C.APPROVAL SHEET

In Partial Fulfillment of the Requirements in Project Feasibility Study leading to the Degree, Bachelor of Science in Accounting Technology, this entitled AMPY CRACKERS has been prepared and submitted by the following students:

Roxanne P. AcoveraVanessa P. HaliliAbigail D. NuludJoanne C. PamintuanThis hereby recommended for approval by:

Dr. Antonieta P. Tungcab, CPA, SPBE Adviser

Yolanda P. Manalili, CPA, MBA

Dean, Institute of Accountancy

Engr. Fernando B. Canlas Member

Dr. Antonieta P. Tungcab, CPA, SPBE

Marita P. Ricarder, CPAMember

MemberAccepted in Partial Fulfillment of the Requirement for the Degree of Bachelor of Science in Accountancy, Major in Accountancy;Michael B. Lapid, MAT, MBE

Leticia D. Flores , Ph. DPresident

VPAAACKNOWLEDGMENTS

This study would not have been possible without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study.

We would like to thank Dr. Antonieta P. Tungcab, CPA, SPBE, our feasibility study adviser, for the endless dedication and inspiration that she willingly contributed, and for believing in our ideas. We truly feel very privileged to have had the opportunity to learn from her knowledge and wisdom.

We would like to thank our consultant, Mrs. Ma Corazon S. Guintu, CPA, for extending her competence and pertinent opinion as well as recommendations that ignited our critical thinking and desire for further improvement of this study. We also want to express our gratitude for helping to meet the necessary works and instructions for this studys achievements.

To the campus librarians: Maam Gladys Castro for their accommodation assistance during the research in the library for possible reference, guides and inputs for the conducting of this feasibility study. We would like to thank Mr. Erwin Ocampo for the Floorplan Layout of our proposed business.

We are also heartily thankful to Mrs. Yolanda P. Manalili, CPA, MBA, our dean, for her constructive feedback and inspiration to give our best in this study.

We would like to thank our parents, family and friends for helping us in very diverse and essential ways; we are forever grateful for your love and encouragement. In particular, the patience and understanding shown by the De Leon Family, Ronquillo Family, Halili Family and Pamintuan Family during the days and nights that we spend to make the feasibility study possible.

Most of all, we owe our deepest gratitude to the Dear Lord for the overall guidance he had given to us from the beginning up to the end of this endeavor.

DEDICATION

This proposed project is humbly and wholeheartedly dedicated

Mary the Queen College (Pampanga), Inc., their Alma Mater and second home that granted them the most treasurable opportunity to pursue their studies and continue their quest towards academic excellence and integral information.

To our beloved parents for their untiring support and guidance, they taught us that the best knowledge to have is to learn for its own sake. They taught us that even the largest task can be accomplished if it is done one step at a time. For endless support and love in all aspects which gave us the encouragement.

To our friends and colleagues who prayed for our success, who are willingly helping us and who are continuously inspire us.

And especially to our Loving Heavenly Father Lord Jesus for His sufficient grace, may this effort of us achieve your gracious virtues.

EXECUTIVE SUMMARY

This serves as the guidelines for the proponents of the study. It summarizes all the major highlights and findings of each aspect of the study. Likewise, it includes the conclusion that serves as its basis for the implementation of the project.

Project Background

The name of the proposed project is Ampy Crackers (Ampalaya Crackers) while the type of the business organization is General Partnership. The location of the project is at San Vicente, Sta. Rita, Pampanga and the project proponents are Alfred Del Carmen, James Roque, Jun Basilio, and Clark Valencia.

Management Feasibility

One of the partners who serve as the general manager will manage and run the business together with the production supervisor and sales/distribution supervisor.

This part will discuss the type of the business organization to be adopted, the different aspects of the project, organizational chart and functions of each unit management personnel, skills and numbers of labor required specifying the duties and time to be devoted to the project qualifications and benefits.

Marketing Feasibility

The proponents target markets are ages 10 to 65 years old. Geographically, they targeted the municipalities of Pampanga such as Santa Rita, Guagua, Lubao and Porac. They also provided a sensitive analysis of the demand so as to project the sales that will somehow dictate the other areas of this project.

Technical Feasibility

This aspect identifies whether the product could be produced at the highest possible quality level with minimum cost. A very important item in this study is the manufacturing process, where the detailed flow charts indicating materials and energy requirement at each step, and the normal duration of the process are taken into account. The details of the equipment, location map, floor plan and steps in the production are also involved.

Financial Feasibility

The partners, as the owners of the partnership will contribute P300, 000 each with a total of P1, 200, 000 as the initial capital of the business.

The proponents also prepared the comparative financial statements to somehow disclose the financial information, position, performance and the cash position of the business.

The financial health of the business is assessed in the financial statements and analysis showing the three important accounting statements such as income, cash flow and the financial position.

Socio-Economic Feasibility Summary

The major intentions of the proposed business Ampy Crackers is to improve the standard of living not only of the partners but also their workers. It provides job opportunities to unemployed, undergraduate individuals. It will also help increase the revenue of the municipality and national government because of the tax being paid by the business.

Conclusions to Feasibility

With the data presented and the facts shown, the proponents unanimously agree that the project is feasible and viable and therefore should be established.

TABLE OF CONTENTS

Chapter 1: PROJECT BACKGROUND1

Historical Background..1

Review of Related Literature and Studies5Company Name and Logo7Companys Mission, Vision and Objectives9Business Location ...13Chapter 2: ORGANIZATION AND MANAGEMENT STUDY.14

Form of Business Organization14

Articles of Co-Partnership16

Capitalization20

Organizational Chart21

Job Description & Specifications.22

Companys Policies and Procedures32

Employee Conduct..39

Employee Benefits..45Chapter 3: MARKETING STUDY...52

Target Market..53

Segmentations.54

Project Demand...55

Survey Analysis...60

Channel Distribution65

SWOT Analysis69

Marketing Mix..71

Action Plan...74Chapter 4: PRODUCTION STUDY..79

Product Description..79

Supplies, Machineries & Equipment80

Project Site82

Floor Plan..84

Business Structure.86

Production Process88

Production Schedule.89

Utilities.94

Waste Disposal Management...95

Legal Requirements..96Chapter 5: FINANCIAL STUDY.104

Pre-Operating Cash Flows...107

Pre-Operating Statement of Financial Position...108

Schedule of Pre-Operating Expenses.109

Table of Equipment113

Selling and Administrative Expenses.115

Projected Cost of Goods Manufactured.117

Projected Statement of Partners Equity123

Projected Statement of Cash Flows...126

Projected Income Statement..127

Projected Statement of Financial Position.....128

Projected Ratio Analysis132

Projected Payroll Schedule135Chapter 6: SOCIO-ECONOMIC STUDY..141APPENDICES

REFERENCES

List of Figures

Figure 1:AmpalayaFigure 2:Company LogoFigure 3:Product LogoFigure 4:Sample Product of Ampy CrackersFigure 5:Vicinity MapFigure 6:Organizational Chart

Figure 7:Packaging FrontFigure 8:Packaging-BackFigure 9:Sustainable Niche of JOVARO Food Mfg. PartnershipFigure 10:Janitorial SuppliesFigure 11:Kitchen Utensils and SuppliesFigure 12:Furniture and FixturesFigure 13:Production Machineries and EquipmentFigure 14:Production Flow Chart