feasibility study about poultry business

St. Anthony’s College San Jose de Buenavista, Antique

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INTRODUCTION

Livestock raising is a common business in our country. In this business, varieties

of products are derived depending on what production the entrepreneur is in. It requires

knowledge and skills in order to succeed in this field. Thus, interest, capital, ability to

manage the project and the demand for the product in the locality is taken into

consideration.

One of the livestock raising industry is poultry. It can be specialized into egg

production, chicken breeding, and raising broilers for meat production. It has been a

popular and lucrative job due to the increasing demand from the emerging business and

increasing population.

This feasibility project is primarily focused on the poultry production specifica l ly

the 45 days broiler meat production. This business, the Chic’N Poultry Business, will be

engaged in raising and selling good quality dressed chicken and its by-products such as

intestine, liver, feet, head, neck and gizzard. It will serve the demand of poultry meat in

Bugasong and probably the neighboring municipalities in the near future.


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EXECUTIVE SUMMARY

BACKGROUND INFORMATION

The proposed project name is “Chic’N Poultry Business” which will be

located at Brgy. Sabang West, Bugasong, Antique. The poultry farm has an easy access to

transportation, electricity and water supply. The business is a sole proprietorship owned by

Mrs. Arleen N. Sidayon. Chic’N Poultry Business is engaged in growing broiler and

producing chicken meat. It will focus on selling the Best Dressed Chicken and its by-

products with its superior taste and texture.

MARKETING ASPECT

The business will cater the unfilled demand of dressed chickens and its by-products

in the market. The demand and supply of the project is based on the survey that was

conducted. The price will be based on the prevailing market price of the product. To attract

prospective buyers, streamers will be put up and fliers will be distributed in public places.

Word-of-mouth will also be a good way to introduce the product. The products will be

distributed through delivery which will be scheduled before the market days of Bugasong.

Walk-in customers will also be accommodated. The target markets are business

establishments such as restaurants, meat shops, barbeque stalls, roasted chicken food stall

and food catering businesses.


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TECHNICAL ASPECT

The proposed project is located at an accessible area. The place is spacious and

surrounded by trees which is appropriate to relieve the chicken from stress and diseases.

The location has a built-in well which will help sustain the water supply.

The business will be engaged in growing the broiler chicken until it is processed

into a dressed chicken and ready for delivery. The wastes will be dumped in a compost pit.

ORGANIZATIONAL ASPECT

The project is owned by Mrs. Arleen N. Sidayon. The owner will be the manager

and the bookkeeper. There will be three staff that will help in the operation of the business.

FINANCIAL ASPECT

The source of financing will be 25% from the bank loan and the 75% will be

provided by the proponent. The financial aspect of the business requires high cost to put

up the project but a good gain can also be expected.

SOCIO-ECONOMIC ASPECT

The project aims to contribute benefits to the people of Bugasong because it will

hire three staff who are residents of the local area. It will generate additional income to the

government through paying taxes and in complying the permits needed in the operation of

the business. It will also help increase the supply of dressed chicken and its by-products in

the market.


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BACKGROUND INFORMATION

A. Name of the Business

The project is named “Chic’N Poultry Business” as a short but catchy

term for our product which is chicken.

B. Location

The project is located at Brgy. Sabang West, Bugasong, Antique. It is a

spacious area surrounded by trees which is suitable for raising chickens. It is far

from neighboring houses to avoid disturbance and has an easy access of

transportation, electricity and water.

C. Vision, Mission and Objectives

Vision

Chic’N Poultry Business aims to be the leading suppliers of dressed chicken

and its by-products in Bugasong, Antique as well as in the neighboring towns.

Mission

Chic’N Poultry Business is committed to promote good and high quality

with low price dressed chicken and by-products to the people living in Bugasong,

Antique and other neighboring towns.


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Objectives

The objective of the proposed project is to promote convenient distribution

of dressed chicken and its by-products for consumers’ consumption, retailers and

other food business establishments to satisfactorily avail their needs.

Indicatively, the project wants to attain the following:

a. To expand the operation of the business in the neighboring towns after 5

years.

b. To increase profit by 5% annually.

c. To provide good and high quality products.

d. To be the leading supplier of dressed chicken and its by-products in

Bugasong and other neighboring towns.


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MARKETING ASPECT

A. Description of the Product

Chic ‘N Poultry Business will raise 45 days broiler chickens with a target

weight of 1.6 kilo each. Broiler chicken are day old chicks that typically have white

feathers and yellow skin which become full grown broilers at an average of 45 days.

The business will produce dressed chickens that are fresh and well-cleaned.

Aside from the dressed chicken, the business will also offer its by-products such as

gizzard, liver, intestines, feet, head and neck.

B. Target Market

Chic’N Poultry Business primarily targets to supply business

establishments such as restaurants, meat shops, barbeque stalls, roasted chicken

food stall and food catering businesses in the municipality of Bugasong.

Moreover, the demand of dressed chicken in the market of Bugasong is

2,472 kilos. There are two existing competitors namely Chynn-Chynn’s Store

which produces 731 kilos of dressed supply chicken every week or 2,924 kilos a

month and Magnolia which produces 366 kilos a week or 1,464 kilos per month.

Both competitors are located at the public market of Bugasong. The data for

demand and supply is located at Schedule 1.


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C. Pricing Strategy

In order to be competitive, the products will be sold based on market price

in Bugasong. The average inflation rate of dressed chicken and its by-products is

5% (Philippine Statistics Authority,Antique). The regular seasons of dressed

chicken and by-products are January, February, June, July, August, September,

October and November while the peak seasons are March, April, May and

December. The products are listed below with their respective market price per kilo.

Table 1. Prices of Products

D. Distribution Strategy

The products will be distributed through delivery. The market days in

Bugasong are Wednesday and Sunday. Prior to the market days, there will be a

scheduled delivery every Tuesday and Saturday using the delivery vehicle

Product Price per kilo

(Regular Seasons)

Price per kilo

(Peak Seasons)

Chicken P 120.00 P 130.00

Intestines P 80.00 P 80.00

Liver P 150.00 P 150.00

Feet P 80.00 P 80.00

Head P 50.00 P 50.00

Neck P 90.00 P 90.00

Gizzard P 140.00 P 140.00


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(multicab) owned by the proponent. If the customer would like to order not on

scheduled time of delivery or there are possible walk-in customers, the manager’s

decision depends if there is an excess products as reserved for the following day

provided that the customer will also be the one who will pick-up the product.

The cost of delivery is shown below:

Cost of gasoline per Scheduled

Delivery

Amount

Weekly P 250.00

Monthly P1,000.00

Table 2. Cost of Delivery

E. Promotional Strategy

The promotional strategies to be used by Chic ‘N Poultry Business are

through word of mouth, placement of streamers and distribution of fliers. The

streamers will be placed at the municipal plaza of Bugasong, public market and in

front of the poultry farm two weeks before opening of the business. The fliers will

be distributed to the business establishments such as restaurants, meat shops,

barbeque stalls, roasted chicken food stall and food catering businesses in

Bugasong as well as the by-passers in the public market two weeks before the

opening of the business.


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The following table shows the cost of promotional materials:

Table 3. Cost of Promotional Materials

*The canvass of promotional materials is presented in Exhibit 20B.

F. Sales Projection

Based on the survey, the unmet demand for dressed chicken in a week is

1,375 kilos or 5,500 kilos in a month. The market share of dressed chicken in

Bugasong is 12% (Philippine Statistics Authority, 2014).

The projected sales for the first year of operation is P1,279,488. The

projected annual growth rate for dressed chicken and its by-products is 8% and the

inflation rate of prices is 5% (Philippine Statistics Authority, 2014).

Promotional

Material

Cost

per

Unit

Number

of Pieces

Total Cost Supplier

Streamer

(2x1 m)

P200 3 P 600.00 Boytex Printing

Services

(Bugasong)

Flier

(8.5 x 5.5 in)

1 450 450.00 Tres Marias

Computer Shop

(Bugasong)

TOTAL P1,050.00


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The projected sales for five years is presented below:

Table 4. Projected Sales

Year Sales-Dressed

Chicken

(Schedule 2A)

Sales -By-Products

(Schedule 2B)

Total Sales

1 P 1,085,007.00 P 194,481.00 P 1,279,488.00

2 1,342,593.00 240,993.00 1,583,586.00

3 1,514,938.00 272,933.00 1,787,871.00

4 1,789,854.00 309,966.00 2,099,820.00

5 1,955,082.00 351,274.00 2,306,356.00


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TECHNICAL ASPECT

A. Nature of the Product

Chic ’N Poultry Business grows and produces dressed broiler chicken.

Broiler chicken is a specialized breed of chicken intended to grow approximate ly

45 days, the best breed of chicken to raise for meat production. Dressed chicken

will only be sold in whole and specific prices will be placed on its by-products.

The business will focus on selling the Best Dressed Chicken and its by-

products with its superior taste and texture. The major consumers of the product

will be restaurants, market, various institutions with food catering services, and

high income households.

Products Description

Dressed Chicken It is a processed chicken.

Intestine It is a long tube in the body of the chicken.

Liver This is the largest organ of the chicken. It

is a dark brown part internal organ of the

chicken.

Feet These contain relatively little meat, and are

eaten mainly for the skin and cartilage.


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Head It is the upper part of the chicken which is

mostly grilled.

Neck It is a part between the head and the body

of the chicken which is mostly grilled or

fried.

Gizzard It is a dark brown and hard part of the

chicken.

Table 5. Description of Products

B. Location of the Business

Chic’N Poultry Business is located at Brgy. Sabang West, Bugasong,

Antique. The site has an easy access to transportation, electricity and water supply.

There is a built-in well in the site which can be used in maintaining the cleanliness

of the poultry farm. The location is surrounded by the trees which helps the

chickens avoid stress which is cause of too much heat of sun.


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C. Operational Process

Figure 1. Operational Process

PURCHASE REARING DRESSING DISPOSAL

Price canvass of one (1) day

old chick

Supplier

Purchase of one (1) day old

chick

Payment and receipt of

chick

Set up (feeders, waterers,

artificial brooders and

ventilation)

Chicks

Arrival and unloading of

chicks

Feeding and giving of water

three (3) times a day

Vaccination

Fasting of chicken for four

(4) to eight (8) hours

Weighing of chicken

Stunning/ bleeding

Scalding and removal of

feathers under controlled

heat (600)

Evisceration/ Removal of

Internal Organs

Washing/ cleaning of

products

Refrigeration

Take

customers’

orders

Customer

Purchase

order

Pickup and

delivery of

goods

Bill

customers

and issue

Collection of

payment

Issuance of

receipts


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a. Feeding Schedule

Age of

chicks

in days

Type of

feeds

Consumpti

on

Cost per

Sack

Total

Cost per

800

chicks

Supplier

0-14 Chick

Booster

3 sacks/800

heads

P1,350.00 P 4,050.00 Pacifica

Agri-Vet

Supplies

15-28 Broiler

Starter

4 sacks/800 heads

P1,500.00 P 6,000.00 Stephen &

Diane

Store

29-45 Broiler

Finisher

4 sacks/800 heads

P1,250.00 P 5000.00 Pacifica

Agri-Vet

Supplies

Table 6. Feeding Schedule (Department of Agriculture)

b. Drinking Water

The chicks will be provided with numerous drinking bowls since they easily

get thirsty, especially in hot weather. It will also help them to learn quickly how to

drink. These will place be in bright places so they can be easily found and accessible

to approach. The source of water will be from the Bugasong Water District.


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c. Light

In the first week, the chicks will be given enough light to enable them to

keep eating. For the first three days, flocks are usually expose to 23 hours of light

and one hour of darkness to allow for adjustment to their surroundings and for

finding feed and water. The hour of darkness adapts the flock to darkness and

prevents later piling in case of electrical failure. Light duration is then controlled

from day four to five or six weeks, depending on target weight and duration of the

grow out.

Table 7. Light Schedule (Department of Agriculture)

Age of chicks in days No. of hours in light No. of hours in dark

0-3 23 1

4-7 18 6

8-14 14 10

15-22 16 8

23-28 18 6

29 to market age 22 2


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d. Temperature

Chick’s temperature is 38.6°C and becomes 40.5°C in 7 days. The coop

temperature must be 31°C-35°C in the first day and this is lowered by 3°C at the

end of the first week. After this, temperature is maintained at 21°C-24°C.

Age of chicks in days Brooding temperature oC

0-7 31 – 35

8-15 27-31

15-27 21-24

28-45 Remove the supply of heat

Table 8. Temperature Schedule (Department of Agriculture)

e. Vaccination Program

The broiler chickens will be vaccinated in order to prevent them from

diseases such as New Castle Disease and Infectious Bursai Disease. The NCD

Vaccine is administered on the 7th and 17th day of the chick. One drop of vaccine

in the eyes or one drop in the nostril is given. Care should be taken not to release

the chick until it has inhaled the nasal drop and/or blinked its eye. The IBD Vaccine

is mixed with water on the 7th and17th day of the chick.

This is performed to prevent the increase number of mortality of chickens.

Vaccine Schedule Cost per Head

New Castle Disease

Vaccine

7 days old

P 1.50

P 2.00


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Infectious Bursai

Disease Vaccine

New Castle Disease

Vaccine

Infectious Bursai

Disease Vaccine

17 days old P 1.50

P 2.00

Table 9. Vaccination Schedule

D. Land, Delivery Vehicle and Building

The owner has an available land and delivery vehicle to be used for the

entire operation. The land has an area of 300 square meters which is enough to put

up a poultry farm. The building costs P 80,809.00.

The lay-out of the poultry farm is presented at Exhibit 33 and the detailed

computation for the building is located at Exhibit 6.

E. Equipment, Supplies and Furniture and Fixtures

Equipment

Particulars QTY Unit Unit Cost Estimated

Useful

Life

Total Cost Supplier

Operating Equipment

Knives 3 Item

P130.00

5 P390.00 Bandiola

Plastic

Goods


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Weighing

scale

2 Item 1,980.00

(60 kilos)

5 3,960.00 Charlie

Auto

Supply

Kawa 1 Item 2,900.00

(extra

size)

5 2,900.00 Bandiola

Plastic

Goods

Plucker 1 Item 19,000.00 10 19,000.00 Olx.com

Artificial

Brooder

5 Item 150.00 5 750.00 Dinglasan

Furniture

Freezer 2 Item 15,000.00 7 30,000.00 Gaisano

Grand

Mall of

Antique

Chopping

Board

2 Pieces 350.00 5 700.00 Dinglasan

Furniture

Waterers 25 Pieces 110.00 5 2,750.00 Pacifica

Agri-Vet

Supplies

Shovel 2 Item 450.00 5 900.00 Robert

Trading

Wheel

borrow

1 Item 2,195.00 5 2,195.00 Susana

Marketing


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Bucket 5 Item 250.00 5 1,250.00 Bandiola

Plastic

Goods

Tub/Basin 10 Item 260.00 5 2,600.00 Bandiola

Plastic

Goods

Generator 1 Item 15,000.00 10 15,000.00 Aton

Marketing

Total Operating Equipment P82,395.00

Office Equipment

Calculator 3 Item 465.00 5 1,395.00 Gaisano

Grand

Mall of

Antique

Stapler 2 Item 40.00 5 80.00 Hercyl’s

Mini Mart

Total Office Equipment P1,475.00

TOTAL COST OF EQUIPMENT P83,870.00

Table 10. List of Equipment

*The canvas of cost of equipment is presented in Exhibit 2.

Description – Operating Equipment

Knives- A sharp edge equipment for cutting. It is used in cleaning the chicken.


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Weighing Scale- A measuring device used to weigh live and dressed chicken.

Large Pan (Kawa) – A large piece of cookware used for boiling or roasting foods.

It will be used in the scalding procedure to help soften the feathers.

Plucker- An electric equipment with rubber fingers that enables easy feathering of

the chicken.

Artificial Brooders – It is a 120 watts capsule which is used to supply heat to the

chicks in the brooding house from day old to 2 weeks. This is in the form of electric,

kerosene lamp or aid of charcoal.

Freezer- A cooling equipment used in freezing the clean chicken that is ready for

delivery.

Chopping Board – It is a durable board made of wood or plastic and come in various

widths and sizes. It will be used as a place material for cutting the chicken.

Waterers – It is an inverted vessel that is used as drinkers. It is a semi-circular, fairly

wide and supported by an additional bracket to permit easier adjustment and easy

cleaning.

Shovel- A tool used for digging and cleaning the poultry house.

Wheelbarrow- It is cart that bring items from one place to another. It will be used

to carry the feeds and manure of chickens.

Bucket- It is a container used in getting water and cleaning the poultry house.

Tub/Basin- It is an open usually circular vessel with sloping or curving sides used

typically for holding water or other materials. This is where the chickens are placed

after cleaning.

Generator – It is a machine used to supply electricity.


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Description - Office Equipment

Calculator – It is a device that performs arithmetic operations on numbers.

Stapler – It is machine for fastening together sheets of paper or the like, with wire

staples.

Supplies

Particulars Quantity Unit Unit

Cost

Total Cost Supplier

Office Supplies

Folder 20 Pieces P5.00 P100.00 Gaisano Grand

Mall of Antique

Record

Book

5 Item 85.00 425.00 Gaisano Grand

Mall of Antique

Ballpen 10 Item 11.00 110.00 Gaisano Grand

Mall of Antique

Receipts 50 Item 44.00 2,200.00 Gaisano Grand

Mall of Antique

Correction

Fluid

2 Item 14.00 28.00

Gaisano Grand

Mall of Antique

Total Office Supplies P2,863.00

Operating Supplies

Plastic Bag 1 Item 100.00 100.00 Bandiola Plastic

Goods

Total Operating Supplies P100.00

Cleaning Supplies

Waste can 1 Item

160.00

160.00 Bandiola

Plastic Goods

Broom 2 Item 130.00 260.00 Bandiola

Plastic Goods

http://dictionary.reference.com/browse/staple


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Dustpan 2 Item 50.00 100.00 Bandiola

Plastic Goods

Total Cleaning Supplies P520.00

TOTAL SUPPLIES P3,483.00

Table 11. List of Supplies

*The canvas of cost of supplies is presented in Exhibit 3.

Description – Office Supplies

Folder – A piece of cardboard folded to make a file in which necessary documents

can be held, compiled and filed.

Record Book – It is used to monitor the inventory level, credits of customers,

attendance of staff, expenses and revenues.

Ballpen – It is an instrument with ink used for writing.

Receipts – It is a printed acknowledgement which serves as an evidence of

payment.

Correction Fluid – An opaque liquid used to paint over a written or printed errors

and provide a surface for adding a correction.

Description – Operating Supplies

Plastic –A thin transparent waterproof material used for wrapping the products

sold by the business.

Description – Cleaning Supplies

Waste Can –A container for waste wherein people throw their trash especially

papers.


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Broom –A brush for sweeping inside the office.

Dustpan –A container with a flat base and an open front into which dirt and dust

can be swept.

Furniture and Fixtures

Particulars Unit

Cost

Quantity Estimated

Useful

Life

Total Cost Supplier

Monoblock

Chair

P300.00 5 3 P1,500.00 Bandiola

Plastic Goods

Wooden

Table

3,299.00 1 4 3,299.00 Gaisano

Furniture

Filing

Cabinet

14,500.0

0

1 4 14,500.00 Gella Gen.

Merchandising

Total P19,299.00

Table 12. List of Furniture and Fixtures

*The canvas of cost of furniture is presented in Exhibit 4

Description – Furniture and Fixtures

Monoblock Chair – A plastic furniture that is used for sitting accommodation of

customers and staff.

Wooden Table – A wooden furniture use in the reception area and paper works area

of the manager.


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Filing Cabinet – A furniture that is used as storage compartment. It will be the place

where the files of the business are kept.

F. Labor Requirements/Manpower

Chic’N Poultry Business will have three employees in the operation and

management of the business.

Table 13. List of Monthly Salaries

G. Utilities

The poultry business needs water and electricity. Water is important in

order to provide water supplements to the chicken and to clean the poultry house.

The source of water will come from an existing deep well within the vicinity and a

faucet; therefore the need for water supply is enough to operate the business. Also,

this project needs electricity to provide light to the chicken. It will serve as a source

of artificial heat for them.

Description No. Monthly Salary

Owner/Manager 1 P8,080.00

Caretaker/Maintenance 1 6,012.70

Operational Staff 1 6,529.50

Operational

Staff/Driver

1 7,286.30

TOTAL 4 P27,908.50


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Utilities Monthly

Usage

Rate Monthly cost Supplier

Water 22.72 Cubic

Meter

P22 per Cubic

Meter

P500.00 Bugasong

Water District

Electricity

(Schedule )

328.03 kilowatt P10.30 per

kilowatt

3,378.71 ANTECO

Transportation 1,000.00 Sea Oil

Communication P L A N 499.00 Globe

TOTAL P5,377.71

Table 14. List of Utilities Expense

H. Waste Disposal

In order to make the project environment friendly it needs proper disposal

of waste. In connection with this, the project must have a compost pit, about 2

meters wide and 2 meters deep. The compost pit will be the dumping site of the

waste of chicken which shall be covered to minimize the spreading of odor.

I. Fiscal and Legal Regulations

The business, in order to start its operation, needs several permits such as DTI

permit and Mayor’s Permits. These permits are renewable annually.


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Amount

Annual Registration (BIR) P500

DTI 300

Mayor's Permit 2,000

Business Clearance to Operate 30

Police Clearance 75

Sedula 22

Fire Clearance 50

Sanitary Permit 125

Environmental Compliance Certificate (DENR) 500

TOTAL P3,602

Table 15. List of Permits


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ORGANIZATIONAL ASPECT

A. Form of Organization

The business will adopt a sole proprietorship type of organization where the

owner will also be the manager. This form of organization is chosen because it is

easy to establish.

B. Organizational Chart

Figure 2. Chic’N Poultry Business – Organizational Structure

Owner/Manager

Caretaker/

Maintenance

Operational

Staff/Driver

Operational

Staff


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C. Functions and Job Descriptions

The employees of the business will have the following functions:

Job Title Description

Owner/Manager Responsible for the production and business

management.

Supervise the daily operation.

Purchase chicks, feeds and other necessities for the

rearing of chicks.

Accepts orders.

Receive payments from the customers and issues official

receipts.

Pays the bills.

Acquire assets.

Approves the credits of customers.

Negotiate with the customers concerns.

Responsible for the bookkeeping.

Renew the licenses and permits.

Pay premiums of SSS and Phil health.

Approves transactions related to the business.

Hires and fires employees.

Caretaker/Maintenance Replenish food and water for the chickens on daily basis.

Administer the vaccination of the chicken.


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Clean the cages, office and the surroundings of the

poultry farm.

Administer the vaccination.

Operational Staff Responsible for the purchase, loading and unloading of

chicks.

Responsible for the weighing, bleeding, scalding,

evisceration, cleaning and refrigeration of the product.

Administer the delivery of the customer’s orders.

Operational Staff/Driver Responsible for the purchase, loading and unloading of

chicks.

Drive the delivery truck.

Responsible for the weighing, bleeding, scalding,

evisceration, cleaning and refrigeration of the product.

Administer the delivery of the customer’s orders.

Check the condition of delivery truck regularly.

Table 16. Functions and Descriptions of Employees

D. Qualifications

For the above positions and their corresponding tasks and functions, the

following qualifications are required:

1. Owner/Manager

Is willing to finance the business.

Able to manage the business.


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Is knowledgeable in poultry industry.

2. Caretaker/Maintenance

Male, a full time worker whom able to maintain poultry cleanliness and

administer the rearing of chickens.

At least 18-35 years old.

Must be loyal and trustworthy.

Must be responsible, industrious and hard worker.

Is knowledgeable about poultry industry.

3. Operational Staff

Male, at least 20-35 years old.

At least high school graduate.




4. Operational Staff/Driver

Male, at least 20-35 years old.

At least high school graduate. Must have a driver’s license.

Proficient in driving and repairing of delivery truck.





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E. Compensation Package

The business will give the following compensation package for its employees:

Position Monthly

Wages

SSS Philhealt

h

Net Pay per

Month

Net Annual

Salary

Owner/

Manager

P7,440.00 P552.50 P87.50 P8,080.00 P96,960.00

Caretaker/

Maintenance

5,520.00 405.20 87.50 6,012.70 72,152.40

Operational

Staff

6,000.00 442.00 87.50 6,529.50 78,354.00

Operational

Staff/Driver

6,720.00 478.80 87.50 7,286.30 87,435.60

TOTAL P25, 680 P1,878.50 P350.00 P27,908.50 P334,902.00

Table 17A. Compensation Package

Total Contribution – Employer

Position SSS PhilHealth Total

Contribution

per Month

Total Annual

Contribution

Owner/Manager P552.50 P87.50 P640.00 P7, 680.00

Caretaker/Maintenance 405.20 87.50 492.70 5, 912.40

Operational Staff 442.00 87.50 529.50 6, 354.00


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Operational

Staff/Driver

478.80 87.50 566.30 6, 795.60

TOTAL P1,878.50 P350.00 P2, 228.50 P26, 742.00

Table 17B. Total Contribution - Employer


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FINANCIAL ASPECT

A. Basic Financial Assumptions

1. Selling price of dress chicken and its by-product will increase annually by

5% (Philippine Statistics Authority, Antique).

2. Annual growth is 8% (Philippine Statistics Authority).

3. The total project cost is P810,000 pesos only.

4. Depreciation expense is computed using Straight-line Method.

5. The source of financing will be 25% bank loan and 75% owner

contribution.

6. The collateral for the loan in the bank is the land title of the owner.

7. Utilities and office supplies will increase at 4.68% every year (Philippine

Statistics Authority).

8. Feeds and vaccine consumption will increase at 4.68% every year

(Philippine Statistics Authority).

9. Mortality rate is 2% every batch (Department of Agriculture).

10. Working capital period is 3 months.

B. Total Project Cost

Property, Plant and Equipment (Schedule 3) P 583,978.00

Working Capital (Schedule 4) 218,370.00

Pre-Operating Cost (Schedule 5) 7,652.00

TOTAL P 810,000.00


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C. Source of Financing

Debt (Bank Loan) 25% P 205,000.00

Equity Contribution 75%

Noncash (Exhibit 22) P 400,000.00

Cash 205,000.00

605,000.00

TOTAL P 810,000.00

Source of Financing Description

Debt The 25% of the fund will be obtained

from the agricultural loan from Land

Bank of the Philippines in which the

land of the owner will serve as a

collateral. The term of loan is 5 years

diminishing balance with interest of

8%.

Equity The 75% of the fund will be funded by

the owner . It is composed of a

delivery vehicle amounting to

P150,000, land costing P250,000 and

cash of P205,000.

Table 18. Description of Source of Financing


35

D. Projected Financial Statements

Financial Statement Description

Income Statement Formal statement showing the

financial performance of an entity

for a period of time

Statement of Financial Position Formal statement showing the

economic resources, liquidity,

solvency, financial structure and

capacity for adaptation of an entity

Statement of Cash Flow Formal statement which provides

information about the cash receipts

and cash payments of an entity

during a period

Table 19. Description of Financial Statements


36

CHIC 'N POULTRY BUSINESS

Projected Income Statement

For the Year Ended Dec. 31, xxxx

Year 1 Year 2 Year 3 Year 4 Year 5

Sales (Schedule 6) P1,279,488 P1,583,586 P1,787,871 P2,099,820 P2,306,356

Cost of Sales (Schedule 7) 962,537 1,073,167 1,140,582 1,246,339 1,347,706

Gross Profit 316,951 510,419 647,288 853,482 958,650

Less: Selling and Administrative

Expenses (Schedule 8) 71,895 73,370 73,868 74,390 74,935

Earnings Before Interest and Taxes 245,056 437,049 573,420 779,092 883,715

Less: Interest Expense (Schedule 9) 16,400 13,120 9,840 6,560 3,280

Earnings Before Taxes 228,656 423,929 563,580 772,532 880,435

Less: Income Taxes (Schedule 10) 32,164 87,179 219,074 212,210 246,739

Net Income P196,492 P336,750 P344,506 P 560,322 P633,696


37

CHIC N' POULTRY BUSINESS

Statement of Financial Position


Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS

Current Assets

Cash

P218,370

P382,150

P713,939

P1,052,963

P1,607,244

P2,234,230

Inventory (Schedule 11)

31,843

35,935

40,548

45,740

51,560

Total Current Assets

218,370

413,993

749,874

1,093,511

1,652,964

2,285,790

Noncurrent Assets

Property, Plant and Equipment (Schedule 3)

583,978

570,378

556,777

543,177

529,576

515,976

Other Assets

Pre-Operating Costs (Exhibit 31)

7,652

6,122

4,591

3,061

1,530

-

TOTAL ASSETS

P810,000

P990,492

P1,311,243

P1,639,749

P2,184,070

P2,801,766


38

LIABILITIES AND OWNER'S EQUITY

Long-term Liabilities

Loan Payable (Schedule 9)

205,000

164,000

123,000

82,000

41,000

-

Owner's equity

Capital (Schedule 12)

605,000

630,000

655,000

680,000

705,000

730,000 Accumulated Earnings

(Net Income)

196,492

533,243

877,749

1,438,070

2,071,766

TOTAL LIABILITIES AND

OWNER'S EQUITY

P810,000

P990,492

P1,311,243

P1,639,749

P2,184,070

P2,801,766


39

CHIC N' POULTRY BUSINESS

Cash Flow Statement



Cash Flow from Operating Activities

Net Income P196,492 P336,750 P344,506 P560,322 P633,696

Add/Less Adjustments:

Increase in inventory -31,843 -4,092 -4,613 -5,191 -5,821

Depreciation-Building (Exhibit 30) 8,081 8,081 8,081 8,081 8,081

Depreciation-Equipment (Exhibit 27) 11,660 11,660 11,660 11,660 11,660

Depreciation-Furniture (Exhibit 28) 3,860 3,860 3,860 3,860 3,860

Depreciation-Delivery Vehicle (Exhibit 29) 15,000 15,000 15,000 15,000 15,000

Amortization of Pre-Operating Costs (Exhibit 31) 1,530 1,530 1,530 1,530 1,530

Net increase (decrease) in cash from

operating activities 0 204,780 372,789 380,024 595,261 668,005

Cash Flow from Investing Activities

Building (Exhibit 6) -80,809

Purchase of Equipment (Exhibit 7) -83,870 Purchase of Furniture & Fixtures

(Exhibit 8) -19,299

Pre-Operating Costs (Schedule 5) -7,652


investing activities -191,630 0 0 0 0 0


40

Cash flow from Financing Activities

Loan Release (Schedule 9) 205,000

Annual Payment of Principal (Schedule 9) -41,000 -41,000 -41,000 -41,000 -41,000

Capital Contribution in Cash 205,000


financing activities 410,000 -41,000 -41,000 -41,000 -41,000 -41,000

NET CASH FLOW 218,370 163,780 331,789 339,024 554,261 627,005

Add: Beginning Cash Balance 0 218,370 382,150 713,939 1,052,963 1,607,224

Cash Ending Balance 218,370 382,150 713,939 1,052,963 1,607,224 2,234,230


41

E. Financial Evaluation

a. Net Present Value

NPV is the excess of the present values of a project’s inflows over the

amount of the investment. It provides an absolute measure of a project’s worth

because it measures the total present value of the present return.

The project is accepted if the NPV is equal or greater than zero; otherwise,

reject. If the project is positive, the entity will earn a return equal to or greater

than its cost of capital.

Financial evaluation shows that the net present value of the project after 5

years is P 1,004,720.

Cost of capital is 6%*

Cash Inflow PV of 1 at 6% Present Value

Year 1 P204,780 0.94 P193,188

Year 2 372,789 0.89 331,781

Year 3 380,024 0.84 319,075

Year 4 595,261 0.79 471,503

Year 5 668,005 0.75 499,173

Total 1,814,720

Less: Investment 810,000

Net Present Value P1,004,720

Table 20A. Net Present Value Computation

Calculation for Cost of Capital

Cost of Capital Proportion WACC

Debt 8% 25% 2%

Equity 5% 75% 4%

Total 6%

Table 20B. Cost of Capital Computation


42

b. Internal Rate of Return

It is also known as discounted rate of return. It is a time adjusted rate of

return which equates the present value of the future cash inflows with the cost

of investment which produces them. If the project’s IRR is greater than the cost

of capital, then accept the project; if not, reject.

The IRR of the project is 46.87% which is higher than the 6% cost of capital.

Cash Inflow

Year 1 P204,780

Year 2 372,789

Year 3 380,024

Year 4 595,261

Year 5 668,005

Total 2,220,860

Divide by 5 years 5

Average Cash Return P444,172

Table 21A.Average Cash Return Computation

PV Factor:

Investment 810,000 Divide by Average Cash

Return 444,172

Total 1.823618

Table 21B. Present Value Factor Computation

Interpolation Method

IRR= 45% + 5%(.051909/.138901)

45% 1.875527 45% + 0.018686

0.051909 IRR= 46.87%

? 1.823618 0.138901

50% 1.736626

Table 21C. Internal Rate of Return Computation


43

c. Accounting Rate of Return

ARR is also called simple rate of return which measures the project’s

profitability from a conventional accounting standpoint by relating the required

investment to the future annual net income. Under this method, a project is

accepted if the ARR is greater than the cost of capital but reject if it is less than

the required rate of return.

The accounting rate of return is 12.13%, 32.92%, 42.05%, 55.85% and

73.70% respectively for five years. The project is profitable based on the

financial evaluation.

Net Income Average Net Income Divided by Investment ARR

Year 1

P196,492 P98,246 P810,000 12.13%

Year 2 336,750 266,621 810,000 32.92%

Year 3 344,506 340,628 810,000 42.05%

Year 4

560,322 452,414 810,000 55.85%

Year 5 633,696 597,009 810,000 73.70%

Table 22. Accounting Rate of Return Computation

d. Profitability Index

It is known as beneficial/cost ratio present value desirability index. It is the

ratio of the total present value of future cash inflow divided by its investment.

This method is used as a means of ranking projects in a descending order of

desirability. The project with PV Index of one or greater than one is accepted


44

because it maintains and enhances the wealth of the owners as reflected in the

share price of the firm’s common stock. If the project is less than one, reject.

The profitability index of the project based on the financial evaluation is

2.24 .This project is acceptable because it can maintain or enhance the wealth

of the owner.

Profitability Index = PV of Cash Inflows/ Net Investment

= P 1,814,720/810,000

= 2.24

Table 23. Profitability Index Computation

e. Payback Period

This method refers to the length of time before investment is recovered. It

is the time where the cumulative cash inflows is equal to the cost of investment.

If the payback period is less than or equal to the maximum allowed payback

period by the management, accept; otherwise, reject. Thus, the more quickly

the cost of an investment can be recovered, the more desirable is the investment.

The project financial evaluation regarding payback period showed 2.61

years. This means that the project cost could be recovered in less than 5 years.

The project is acceptable and a desirable investment.


45

Initial

Capital Cash Inflow

Cumulative cash

Inflow

Outstanding

Balance

Payback

Period

Years

Year 0 810,000

Year 1 204,780 204,780 605,220 1

Year 2 372,789 577,569 232,431 1

Year 3 380,024 957,593

0.61

Year 4 595,261 1,552,854

Year 5 668,005 2,220,860

2.61

Table 24. Payback Period Computation


46

f. Break-even Analysis

It is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.

Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even

point. Once the break-even point has been reached, the net operating income will increase by the amount of the unit

contribution margin for each additional unit sold.


Sales

Php

1,279,488 100.00%

Php

1,583,586 100.00%

Php

1,787,871 100.00%

Php

2,099,820 100.00%

Php

2,306,356 100.00%

Cost of Sales

Php

962,537 75.23%

Php

1,073,167 67.77%

Php

1,140,582 63.80%

Php

1,246,339 59.35%

Php

1,347,706 58.43%

Gross Profit

Php

316,951 24.77%

Php

510,419 32.23%

Php

647,288 36.20%

Php

853,482 40.65%

Php

958,650 41.57%

Variable Expenses (Table 25B)

Php

228,549 17.86%

Php

246,212 15.55%

Php

251,690 14.08%

Php

285,830 13.61%

Php

307,789 13.35%

Contribution Margin

Php

88,402 6.91%

Php

264,207 16.68%

Php

395,598 22.13%

Php

567,652 27.03%

Php

650,861 28.22%


47

The financial evaluation shows that the break-even point in peso for the year is P893, 494. This means that the sales for

the said year should not be lower than this point to recover the fixed cost.

Table 25A. Break-Even Analysis Computation


Variable Expenses

Utilities Expense

(Exhibit 18A) Php225,066 Php242,566 Php247,873 Php281,835 Php303,607

Miscellaneous and

Supplies (Exhibit 17A) Php3,483 Php3,646 Php3,817 Php3,995 Php4,182

TOTAL Php228,549 Php246,212 Php251,690 Php285,830 Php307,789

Table 25B. Variable Expenses Computation

Fixed

Expense (Table 25C)

Php

61,733

Php

62,733

Php

62,733

Php

62,733

Php

62,733

Divided by: CM Ratio

6.91%

16.68%

22.13%

27.03%

28.22%

Break-Even

in Pesos

Php

893,494

Php

376,004

Php

283,516

Php

232,058

Php

222,297


48


Fixed Expenses

Selling Expenses (Exhibit 26) P11,000

P12,000 P12,000 P12,000 P12,000

Depreciation – Equipment (Exhibit 27) 11,660 11,660 11,660

11,660 11,660

Depreciation – Furniture (Exhibit 28) 3,860 3,860 3,860 3,860 3,860

Depreciation – Delivery Vehicle (Exhibit 29) 15,000 15,000 15,000 15,000 15,000

Depreciation – Building (Exhibit 30) 8,081 8,081 8,081

8,081 8,081

Amortization of Pre-Operating

Costs (Exhibit 31) 1,530 1,530 1,530 1,530 1,530

Repairs and Maintenance (Schedule 8)

2,000 2,000 2,000

2,000 2,000

Permits and Licenses (Exhibit 21) 3,602 3,602 3,602 3,602 3,602

Other Expenses

5,000 5,000 5,000 5,000 5,000

TOTAL P61,733 P62,733 P62,733 P62,733 P62,733

Table 25C. Fixed Expenses Computation


49

g. Return on Investment

ROI is a performance measure used to evaluate the efficiency of an

investment or to compare the efficiency of a number of different

investments. The higher the return on ROI of a project, the greater the profit

earned per peso invested in the operating assets.

The return on investment of the project for the first year is 24.26%. This

means that there is high profit earned per peso invested in the project.

Net Income Per Year

Year 1 196,492 24.26%

Year 2 336,750 41.57%

Year 3 344,506 42.53%

Year 4 560,322 69.18%

Year 5 633,696 78.23%

Total 2,071,766

Divide by 5 years 5

Average net Income 414,353

Divide by project Cost 810,000

ROI 51.15%

Table 26. Return on Investment Computation


50

SOCIO-ECONOMIC ASPECT

A. Government Benefits

The Government will benefit on the taxes and permits paid by the

business. These taxes and permits increased the revenue of the government. They

use this fund to support its projects and expenditures for the development of the

municipality as well as the whole country.

B. Customers/Consumer Benefits

The customers will have sufficient supply of dressed chicken and its by-

products. The wholesalers and business establishments such as restaurants, meat

shops, barbeque stalls, roasted chicken food stall and food catering businesses

will have convenience in getting their supplies with lesser time, cost, effort and

price.

C. Employment Benefits

The business will provide additional employment for the unemployed residence

especially in the town of Bugasong.


51

IMPLEMENTATION

Table 27. Implementation Schedule

October November December January February 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Study of the

project

Proposal of

business plan to

the proponent

Acceptance of

the proposal by

the proponent

and application

for loan

Application for

necessary

permits and

licenses

Construction of

Poultry House

and Cleaning of

the Area

Acquisition of

Equipment,

Furniture and

Supplies

Hiring of

Personnel

Start of

Promotional

Activities

Acquisition of

Feeds and

Vaccines and

Final Set up of

the Poultry

Farm

Commencement

of the Project

Start of selling

products in the

market


52

Study of the project will begin from the first week up to the second week of October

in order to ensure its feasibility. Also during the second week of October, the proposed

business plan will be discussed to the proponent. Then acceptance of the proposal by the

proponent and application for loan will be made on the third week of October. On the last

week of the month, application for necessary permits and licenses will be prepared.

Construction of the Poultry house and cleaning of the area will start from the fourth week

of October up to the third week of November followed by the acquisition of necessary

equipment, furniture and supplies which will be done after the construction of the poultry

house up to the first week of December. There will be a hiring of Personnel on the second

week of December and on the third week; two months prior to the beginning of the project,

the promotional activities for the business will begin. Then on the last week of December,

acquisition of feeds and vaccines and final set up of the poultry farm will be made. The

commencement of the project will be on the first week of January and five weeks after the

start of the business, it is anticipated that product will start selling at the market.


53

CONCLUSION

The proposed project is feasible because the results of the study are in

conformity with the objectives of the project which is to promote convenient

distribution of dressed chicken and its by-products for consumers’ consumption,

retailers and other food establishments to satisfactorily avail their needs.

In the socio-economic and environmental impact, part of the revenue of the

business will support the project of the government in the form of taxes paid; it

will be also be beneficial to the hired workers of the business for the improvement

of their standard of living through salaries and wages.

In relation to its technical and operational aspects, an encouraging result is

obtain. The business is located in a proper place for raising chicks. The workers

employed are also qualified and the equipment used are modernized.

In respect to its organization and management aspect it shows sign of

positivity. The proponent’s interest is in the field of business, thus, it is a sign that

she can handle the proposed business well. The business will be easily managed

and supervised by the owner since she will only hire three workers to help her in

the daily operation of the business.

The financial aspect also shows a positive result, the first five years of

operation is expected to generate enough revenue to cover all the expenses

incurred and at the same time generate profit for the owner. The proposed

business will be able to fully return the initial investment within 2.61 years.

To sum it all, based on the analysis and the results of the data gathered, putting up

Chic’N Poultry in Sabang West, Bugasong, Antique is favorable.


54

RECOMMENDATION

The researchers of this feasibility study recommend that the business can opt to use

a credit system in the sales transaction, in addition to the cash basis system currently used.

Moreover, if the business becomes profitable and the proponent wants to continue

the operations of the business after five years, she can decide to reconstruct the building

from using light materials into concrete in order that the structure will be usable for a longer

period and for a more efficient and suitable place for operation.

Lastly, as the business grows, the manager can hire employees in addition to the

existing staff for a more effective operation. These include the operational staff and

caretaker/maintenance.


55

ANNEX

SCHEDULES

Schedule 1A - Demand per Week (kilos)

Minimum Maximum

1 to 5 2 5.71% 2 10

6-10 7 20.00% 42 70

11-15 11 31.43% 121 165

16-20 2 5.71% 32 40

21-25 1 2.86% 21 25

Others(please specify) 12 34.29% 2,208 2,208

Total 35 100.00% 2,426 2,518

TOTAL 2,472

Schedule 1B – Demand and Supply per Week and Unmet Demand (kilos)

Total demand by consumer per week

(Schedule 1A) 2,472

Total supply by the competitors per week:

Magnolia

Chynn-Chynn’s Store

366

731

Less: Total Supply per week 1097

Total Unmet Demand 1375

Market Share 12% x 12%

Total Captured Market per Week 165


56

Assumptions:

Regular sales is 150 heads or 165 kilos. There will be additional 100 heads sold

during local fiestas –March, April, May- by 167%(Philippine Statistical Authority).

Annual growth rate is 8% and inflation rate is 5% per year. The prices per year is presented

in Exhibit 1.

Schedule 2A.a– Sales Projection of Dressed Chicken (Year 1)

TOTAL SALES: P1,085,007

Month Week

No. of

Heads

Procured

Mortality

(2%per

batch)

No. of

Heads

for

Disposal

Ave.

Weight

per

Head

(Kilo)

Price

per

Kilo

Total Sales

per Week

January 1 150 3

2 150 3

3 150 3

4 250 5

February 1 150 3

2 150 3 147 1.1 P120 P19,404

3 150 3 147 1.1 120 19,404

4 250 5 147 1.1 120 19,404

March 1 250 5 245 1.1 130 35,035

2 250 5 147 1.1 120 19,404

3 250 5 147 1.1 120 19,404

4 250 5 147 1.1 120 19,404

April 1 250 5 245 1.1 130 35,035

2 250 5 245 1.1 130 35,035

3 250 5 245 1.1 130 35,035

4 150 3 245 1.1 130 35,035

May 1 150 3 245 1.1 130 35,035

2 150 3 245 1.1 130 35,035

3 150 3 245 1.1 130 35,035

4 150 3 245 1.1 130 35,035

June 1 150 3 147 1.1 120 19,404

2 150 3 147 1.1 120 19,404

3 150 3 147 1.1 120 19,404

4 150 3 147 1.1 120 19,404


57

July 1 150 3 147 1.1 120 19,404

2 150 3 147 1.1 120 19,404

3 150 3 147 1.1 120 19,404

4 150 3 147 1.1 120 19,404

August 1 150 3 147 1.1 120 19,404

2 150 3 147 1.1 120 19,404

3 150 3 147 1.1 120 19,404

4 150 3 147 1.1 120 19,404

September 1 150 3 147 1.1 120 19,404

2 150 3 147 1.1 120 19,404

3 150 3 147 1.1 120 19,404

4 150 3 147 1.1 120 19,404

October 1 150 3 147 1.1 120 19,404

2 150 3 147 1.1 120 19,404

3 150 3 147 1.1 120 19,404

4 150 3 147 1.1 120 19,404

November 1 400 8 147 1.1 120 19,404

2 400 8 147 1.1 120 19,404

3 400 8 147 1.1 120 19,404

4 162 3 147 1.1 120 19,404

December 1 162 3 147 1.1 120 19,404

2 162 3 392 1.1 130 56,056

3 162 3 392 1.1 130 56,056

4 162 3 392 1.1 130 56,056

TOTAL 8,910 178 7,938 P1,085,007

Schedule 2A.b– Sales Projection of Dressed Chicken (Year 2)


Month Week

No. of

Heads

Procured

Mortality

(2%)

No. of

Heads

for

Disposal

Ave.

Weight

per

Head

(Kilo)

Price

per

Kilo

Total Sales

per Week

January 1 162 3 159 1.1 P126 P22,037

2 162 3 159 1.1 126 22,037 3 162 3 159 1.1 126 22,037

4 270 5 159 1.1 126 22,037

February 1 162 3 159 1.1 126 22,037

2 162 3 159 1.1 126 22,004

3 162 3 159 1.1 126 22,004


58

4 270 5 159 1.1 126 22,004 March 1 270 5 265 1.1 137 39,875

2 270 5 159 1.1 126 22,004

3 270 5 159 1.1 126 22,004

4 270 5 159 1.1 126 22,004

April 1 270 5 265 1.1 137 39,875 2 270 5 265 1.1 137 39,875

3 270 5 265 1.1 137 39,875

4 162 3 265 1.1 137 39,875

May 1 162 3 265 1.1 137 39,875

2 162 3 265 1.1 137 39,875 3 162 3 265 1.1 137 39,875

4 162 3 265 1.1 137 39,875

June 1 162 3 159 1.1 126 22,004

2 162 3 159 1.1 126 22,004

3 162 3 159 1.1 126 22,004 4 162 3 159 1.1 126 22,004

July 1 162 3 159 1.1 126 22,004

2 162 3 159 1.1 126 22,004

3 162 3 159 1.1 126 22,004

4 162 3 159 1.1 126 22,004 August 1 162 3 159 1.1 126 22,004

2 162 3 159 1.1 126 22,004

3 162 3 159 1.1 126 22,004

4 162 3 159 1.1 126 22,004

September 1 162 3 159 1.1 126 22,004 2 162 3 159 1.1 126 22,004

3 162 3 159 1.1 126 22004

4 162 3 159 1.1 126 22,004

October 1 162 3 159 1.1 126 22,004

2 162 3 159 1.1 126 22,004 3 162 3 159 1.1 126 22,004

4 162 3 159 1.1 126 22004

November 1 432 9 159 1.1 126 22,004

2 432 9 159 1.1 126 22,004

3 432 9 159 1.1 126 22,004 4 175 4 159 1.1 126 22,004

December 1 175 4 159 1.1 126 22,004

2 175 4 423 1.1 137 63,800

3 175 4 423 1.1 137 63,800

4 175 4 423 1.1 137 63,800

TOTAL 9,623 192 9,368 P1,342,593


59

Schedule 2A.c– Sales Projection of Dressed Chicken (Year 3)


Month Week

No. of

Heads Procured

Mortality (2%)

No. of

Heads

for Disposal

Ave.

Weight

per

Head (Kilo)

Price

per Kilo

Total Sales per Week

January 1 175 4 171 1.1 P132 P24,829

2 175 4 171 1.1 132 24,829

3 175 4 171 1.1 132 24,829

4 292 6 171 1.1 132 24,829

February 1 175 4 171 1.1 132 24,829

2 175 4 171 1.1 132 24,829

3 175 4 171 1.1 132 24,829

4 292 6 171 1.1 132 24,829

March 1 292 6 286 1.1 143 45,013

2 292 6 171 1.1 132 24,829

3 292 6 171 1.1 132 24,829

4 292 6 171 1.1 132 24,829

April 1 292 6 286 1.1 143 45,013

2 292 6 286 1.1 143 45,013

3 292 6 286 1.1 143 45,013

4 175 4 286 1.1 143 45,013

May 1 175 4 286 1.1 143 45,013

2 175 4 286 1.1 143 45,013

3 175 4 286 1.1 143 45,013

4 175 4 286 1.1 143 45,013

June 1 175 4 171 1.1 132 24,829

2 175 4 171 1.1 132 24,829

3 175 4 171 1.1 132 24,829

4 175 4 171 1.1 132 24,829

July 1 175 4 171 1.1 132 24,829

2 175 4 171 1.1 132 24,829

3 175 4 171 1.1 132 24,829

4 175 4 171 1.1 132 24,829

August 1 175 4 171 1.1 132 24,829

2 175 4 171 1.1 132 24,829

3 175 4 171 1.1 132 24,829

4 175 4 171 1.1 132 24,829

September 1 175 4 171 1.1 132 24,829

2 175 4 171 1.1 132 24,829

3 175 4 171 1.1 132 24,829

4 175 4 171 1.1 132 24,829


60

October 1 175 4 171 1.1 132 24,829

2 175 4 171 1.1 132 24829

3 175 4 171 1.1 132 24,829

4 175 4 171 1.1 132 24,829

November 1 467 9 171 1.1 132 24,829

2 467 9 171 1.1 132 24,829

3 467 9 171 1.1 132 24,829

4 189 4 171 1.1 132 24,829

December 1 189 4 171 1.1 132 24,829

2 189 4 458 1.1 143 71,990

3 189 4 458 1.1 143 71,990

4 189 4 458 1.1 143 71,990

TOTAL 10,399 208 10,104 P1,514,938

Schedule 2A.d– Sales Projection of Dressed Chicken (Year 4)


Month Week

No. of

Heads

Procured

Mortality

(2%)

No. of

Heads

for

Disposal

Weight

per

Head

(kilo)

Price

per

Kilo

Total Sales

per Week

January 1 189 4 185 1.1 P139 P28,287

2 189 4 185 1.1 139 28,287

3 189 4 185 1.1 139 28,287

4 315 6 185 1.1 139 28,287

February 1 189 4 185 1.1 139 28,287

2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30,561

4 315 6 185 1.1 150 30,561

March 1 315 6 309 1.1 150 50,936

2 315 6 185 1.1 150 30,561

3 315 6 185 1.1 150 30,561

4 315 6 185 1.1 150 30,561

April 1 315 6 309 1.1 150 50,936

2 315 6 309 1.1 150 50,985

3 315 6 309 1.1 150 50,985

4 189 4 309 1.1 150 50,985

May 1 189 4 309 1.1 150 50,985

2 189 4 309 1.1 150 50,985

3 189 4 309 1.1 150 50,985

4 189 4 309 1.1 150 50,985

June 1 189 4 185 1.1 139 28,287


61

2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30,561

4 189 4 185 1.1 150 30,561

July 1 189 4 185 1.1 150 30,561

2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30561

4 189 4 185 1.1 150 30,561

August 1 189 4 185 1.1 150 30,561

2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30,561

4 189 4 185 1.1 150 30,561

September 1 189 4 185 1.1 150 30,561

2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30,561

4 189 4 185 1.1 150 30,561

October 1 189 4 185 1.1 150 30,561

2 189 4 185 1.1 150 30,561

3 189 4 185 1.1 150 30,561

4 189 4 185 1.1 150 30,561

November 1 504 10 185 1.1 150 30,561

2 504 10 185 1.1 150 30,561

3 504 10 185 1.1 150 30,561

4 204 4 185 1.1 150 30,561

December 1 204 4 185 1.1 150 30,561

2 204 4 494 1.1 150 81,510

3 204 4 494 1.1 150 81,510

4 204 4 494 1.1 150 81,510

TOTAL 11,226 225 10,929 P1,789,854

Schedule 2A.e– Sales Projection of Dressed Chicken (Year 5)


Month Week

No. of

Heads

Procured

Mortality

(2%)

No. of

Heads

for

Disposal

Weigh

t per

Head

(Kilo)

Price

per

Kilo

Total Sales

per Week

January 1 204 4 200 1.1 P146 P32,120

2 204 4 200 1.1 146 32,120

3 204 4 200 1.1 146 32,120

4 340 7 200 1.1 146 32,120

February 1 204 4 200 1.1 146 32,120

2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107


62

4 340 7 200 1.1 146 32,107

March 1 340 7 333 1.1 158 57,910

2 340 7 200 1.1 146 32,107

3 340 7 200 1.1 146 32,107

4 340 7 200 1.1 146 32,107

April 1 340 7 333 1.1 158 57,910

2 340 7 333 1.1 158 57,910

3 340 7 333 1.1 158 57,910

4 204 4 333 1.1 158 57,910

May 1 204 4 333 1.1 158 57,910

2 204 4 333 1.1 158 57,910

3 204 4 333 1.1 158 57,910

4 204 4 333 1.1 158 57,910

June 1 204 4 200 1.1 146 32,107

2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107

4 204 4 200 1.1 146 32,107

July 1 204 4 200 1.1 146 32,107

2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107

4 204 4 200 1.1 146 32,107

August 1 204 4 200 1.1 146 32,107

2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107

4 204 4 200 1.1 146 32,107

September 1 204 4 200 1.1 146 32,107

2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107

4 204 4 200 1.1 146 32,107

October 1 204 4 200 1.1 146 32,107

2 204 4 200 1.1 146 32,107

3 204 4 200 1.1 146 32,107

4 204 4 200 1.1 146 32,107

November 1 544 11 200 1.1 146 32,107

2 544 11 200 1.1 146 32,107

3 544 11 200 1.1 146 32,107

4 220 4 200 1.1 146 32,107

December 1 220 4 200 1.1 146 32,107

2 220 4 533 1.1 158 92,656

3 220 4 533 1.1 158 92,656

4 220 4 533 1.1 158 92,656

TOTAL 12,116 242 11,796 P1,955,082


63

Schedule 2B.b– Sales Projection of By-Products (Year 2)

No. of

Heads Sold

Ave. Weight in

every head

(Kilos)

Total

Kilos

Yield

for the

Year

Price per

Kilo Sales

Intestines 9,368 0.15 1,405.21 P52.50 P73,773.32

Liver 9,368 0.05 468.402 94.50 44,263.99

Feet 9,368 0.05 468.402 63.00 29,509.33

Head 9,368 0.05 468.402 42.00 19,672.88

Neck 9,368 0.05 468.402 73.50 34,427.55

Gizzard 9,368 0.05 468.402 84.00 39,345.77

TOTAL 66,208 0.40

3,747.22

P240,992.80

Schedule 2B.a– Sales Projection of By-Products (Year 1)

No. of

Heads Sold

Ave. Weight in

every

head(Kilos)

Total

Kilos

Yield for

the Year

Price per

Kilo Sales

Intestines 7,938 0.15 1,190.7 P50 P59,535

Liver 7,938 0.05 396.9 90 35,721

Feet 7,938 0.05 396.9 60 23,814

Head 7,938 0.05 396.9 40 15,876

Neck 7,938 0.05 396.9 70 27,783

Gizzard 7,938 0.05 396.9 80 31,752

TOTAL 47,628 0.40 3,175.2 194,481


64

Schedule 2B.c– Sales Projection of By-Products (Year 3)

No. of

Heads Sold

Ave. Weight

(Kilos)

Total

Kilos

Yield

for the

Year

Price per

Kilo Sales

Intestines 10,104 0.15 1,515.66 P55.125 P83,550.92

Liver 10,104 0.05 505.221 99.225 50,130.55

Feet 10,104 0.05 505.221 66.150 33,420.37

Head 10,104 0.05 505.221 44.100 22,280.25

Neck 10,104 0.05 505.221 77.175 38,990.43

Gizzard 10,104 0.05 505.221 88.200 44,560.49

TOTAL 60,624 0.40 4,041.77 P272,933.00

Schedule 2B.d– Sales Projection of By-Products (Year 4)

No. of

Heads Sold

Ave. Weight

(Kilos)

Total

Kilos

Yield for

the Year Price per

Kilo Sales

Intestines 10,929 0.15 1,639.35 P57.88125 P94,887.63

Liver 10,929 0.05 546.45 104.18630 56,932.58

Feet 10,929 0.05 546.45 69.45750 37,955.05

Head 10,929 0.05 546.45 46.30500 25,303.37

Neck 10,929 0.05 546.45 81.03375 44,280.89

Gizzard 10,929 0.05 546.45 92.61000 50,606.73

TOTAL 65,574 0.40 4,371.60 P309,966.20


65

Schedule 2B.e– Sales Projection of By-Products (Year 5)

No. of

Heads Sold

Ave.

Weight

(Kilos)

Total Kilos

Yield for

the Year Price per

Kilo Sales

Intestines 11,796 0.15

1,769.350 P 60.77531

P107,532.90

Liver 11,796 0.05 589.784 109.3956 64,519.75

Feet 11,796 0.05 589.784 72.93038 43,013.17

Head 11,796 0.05 589.784 48.62025 28,675.45

Neck 11,796 0.05 589.784 85.08544 50,182.03

Gizzard 11,796 0.05 589.784 97.24050 57,350.89

TOTAL 70,776 0.40 4,718.27 351,274.20

Schedule 3 – Property, Plant and Equipment (5 Years)


Land

(Exhibit 5) 250,000 P275,000 P300,000 P325,000 P350,000 P375,000

Building

(Exhibit 6) 80,809 72,728 64,647 56,566 48,485 40,405

Equipment

(Exhibit 7) 83,870 72,210 60,551 48,891 37,231 25,571

Furniture

and

Fixture

(Exhibit 8) 19,299 15,439 11,579 7,720 3,860 0

Delivery

Vehicle

(Exhibit 9) 150,000 135,000 120,000 105,000 90,000 75,000

TOTAL P583,978 P570,378 P556,777 P543,177 P529,576 P515,976


66

Schedule 4– Working Capital (3 months)

Amount

2,400 heads(chicks) @ P25

(Based on Procurement-Schedule 2) P60,000

Feeds for 2400 heads:

Chick Booster ( Schedule 32B ) 12,150

Broiler Starter ( Schedule 32B ) 18,000

Broiler Finisher ( Schedule 32B ) 15,000

Vaccine for 2400 heads

New Castle Disease Vaccine (Exhibit 13C) 7,200

Infectious Bursai Disease Vaccine (Exhibit 13C) 9,600

Labor (Exhibit 15B.1) 77,040

Delivery Expense ( Exhibit 16B ) 3,000

Miscellaneous & Supplies Expense ( Exhibit 17B ) 2,833

Utilities (Exhibit 18C ) 13,497

TOTAL P218,370

Schedule 5 – Pre-Operating Cost

Amount

Feasibility Study Expense (Exhibit 19) P1,500

Technical Layout 1,500

Advertising Expense (Exhibit 20) 1,050

Permits and Licenses (Exhibit 21) 3,602

TOTAL P7,652


67

Schedule 7 – Cost of Sales (5 Years)


Direct

Materials

(Exhibit 23) 403,350 495,969 557,484 628,629 707,515

Direct Labor

(Exhibit 15A) 237,942 237,942 237,942 237,942 237,942

Overhead

(Exhibit 24) 315,347 332,535 337,515 371,133 392,547

Total 956,639 1,066,446 1,132,940 1,237,704 1,338,003

Loss due to

Death of Chicks

(Exhibit 25) 5,898 6,721 7,642 8,635 9,703

TOTAL

COST OF

SALES P962,537 P1,073,167 P1,140,582 P1,246,339 P1,347,706

Schedule 6 – Projected Sales (5 Years)

Year Sales-Dressed

Chicken

(Schedule 2A)

Sales -By-Products

(Schedule 2B)

Total Sales

1 P 1,085,007.00 P 194,481.00 P 1,279,488.00

2 P 1,342,593.00 P 240,993.00 P 1,583,586.00

3 P 1,514,938.00 P 272,933.00 P 1,787,871.00

4 P 1,789,854.00 P 309,966.00 P 2,099,820.00

5 P 1,955,082.00 P 351,274.00 P 2,306,356.00


68

Schedule 8 -Selling and Administrative Expenses (5 Years)


Selling Expense (Exhibit 26) 11000 12000 12000 12000 12000

Utilities Expense (Exhibit 18A) 6679 6991 7319 7662 8020

Miscellaneous and Supplies Expense (Exhibit 17)

3483 3646 3817 3995 4182

Depreciation Expense-Office

Equipment (Exhibit 27) 11660 11660 11660 11660 11660

Depreciation Expense – Furniture (Exhibit 28)

3860 3860 3860 3860 3860

Depreciation Expense- Delivery

Vehicle (Exhibit 29) 15000 15000 15000 15000 15000

Depreciation Expense- Building (Exhibit 30)

8081 8081 8081 8081 8081

Amortization of Pre-Operating

cost (Exhibit 31) 1530 1530 1530 1530 1530

Repairs and Maintenance 2000 2000 2000 2000 2000

Other Expenses 5000 5000 5000 5000 5000

Permits and Licenses

(Exhibit 21) 3602 3602 3602 3602 3602

Total 71895 73370 73868 74390 74935

,

Schedule 9 – Interest Expense (5 Years)

Year Principal Interest

Total

Payment Balance

0 P205,000

1 P41,000 P16,400 P57,400 164,000

2 41,000 13,120 54,120 123,000

3 41,000 9,840 50,840 82,000

4 41,000 6,560 47,560 41,000


69

5 41,000 3,280 44,280 0

Amount of Loan 205,000

Interest rate 8%, diminishing balance

Term 5 years

Schedule 10A – Income Taxes

Earnings

before

taxes

Less: Basic

Personal

Exemption

TAXABLE

INCOME (a) (b)

Tax Due

(a +b)

Year 1 P228,656 P50,000 178,656 22500 9664 P32,164

Year 2 423,929 50,000 373,929 50000 37179 87,179

Year 3 563,580 50,000 513,580 125000 94074 219,074

Year 4 772,532 50,000 722,532 125000 87210 212,210

Year 5 880,435 50,000 830,435 125000 121739 246,739

Schedule 10B – Graduated Tax Table

Taxable Income Tax Due

Not over P 10,000 5%

Over P10,000 but not over

P30,000 P 500 + 10% of excess over P 10,000

Over 30,000 but not over 70,000 2,500 + 15% of excess over P 30,000


70

Over 70,000 but not over

140,000 8,500 + 20% of excess over P 70,000


250,000 22,500 + 25% of excess over P 140,000


500,000 50,000 + 30% of excess over P 250,000

Over 500,00 125,000 + 32% of excess over P 500,000

Schedule 11A– Inventory (5 Years)


Chicks on hand (Schedule 11B) 810 875 945 1,020 1,100

Multiply by: Cost per Head P25 P26 P28 P29 P30

Total 20,250 22,969 26,044 29,519 33,429

Feeds

Chick booster (Schedule 11B) 4,101 4,637 5,242 5,923 6,687

Broiler starter (Schedule 11B) 3,645 4,122 4,660 5,265 5,944

Broiler Finisher (Schedule 11B) 1,013 1,145 1,294 1,463 1,651

Vaccine

New Castle Disease (NCD

Vaccine) (No. of Heads x 1.5) 1,215 1,312.50 1,417.5 1,530 1,650

Infectious Bursai Disease Vaccine

(No. of Heads x 2) 1,620 1,750 1,890 2,040 2,200

TOTAL P31,843 P35,935 P40,548 P45,740 P51,560


71

Schedule 11B – Chicks on Hand (Inventory for 5 Years)

Year 1

Week

No. of

Heads

Chick

Booster

Broiler

Starter

Broiler

Finisher

November

4 162 P820 P1,215 P1,013

December 1 162 820 1,215

2 162 820 1,215

3 162 820

4 162 820

TOTAL 810 P4,101 P3,645 P1,013

Year 2

Week

No. of

Heads

Chick

Booster

Broiler

Starter

Broiler

Finisher

November

4 175 P927 P1,374 P1,145

December 1 175 927 1,374

2 175 927 1,374

3 175 927

4 175 927

TOTAL 875 P4,637 P4,122 P1,145

Year 3

Week

No. of

Heads

Chick

Booster

Broiler

Starter

Broiler

Finisher

November

4 189 P1,048 P1,553 P1,294

December 1 189 1,048 1,553

2 189 1,048 1,553

3 189 1,048

4 189 1,048

TOTAL 945 P5,242 P4,660 P1,294

Year 4

Week

No. of

Heads

Chick

Booster

Broiler

Starter

Broiler

Finisher

November

4 204 P1,185 P1,755 P1,463

December 1 204 1,185 1,755

2 204 1,185 1,755

3 204 1,185


72

4 204 1,185

TOTAL 1,020 P5,923 P5,265 P1,463

Year 5

Week

No. of

Heads

Chick

Booster

Broiler

Starter

Broiler

Finisher

November

4 220 P1,337 P1,981 P1,651

December 1 220 1,337 1,981

2 220 1,337 1,981

3 220 1,337

4 220 1,337

TOTAL 1,100 P6,687 P5,944 P1,651

Schedule 12 – Capital (5 Years)


Beginning Capital P605,000 P605,000 P630,000 P655,000 P680,000 P705,000

Increase in

Capital (Due to

the increase in

land) 25,000 25,000 25,000 25,000 25,000

NEW CAPITAL P630,000 P655,000 P680,000 P705,000 P730,000


73

EXHIBITS

Exhibit 1 – Price Schedule (5 years)


For regular P120 P126 P132 P139 P146

For peak

season 130 137 143 150 158

Ave. Inflation rate is 5% per year (based on PSA)

Exhibit 2 – Canvass of Supplies

SUPPLIES

GAISANO

GRAND

MALL OF

ANTIQUE

GIAN’S HERCYL’S

MINI

MART

BANDIOLA CHARLIE ROBERT

TRADING

Record

Book (500

pages)

P105;

89

P85

Ballpen

(Faber Castle)

11 12 P12

Receipt:

Small Big

19.75 44

Daily Time

Record

Calculator: Scientific

Ordinary

660 465

Folders: Long

5 4.75


74

Short

Stapler 78 40

White Ink: Big

Small

35 14

69

Yellow Pad

24.75; 29.75

50; 26.50;

16

25

Paper Clip 15

Paper Clamp

30 3; 4; 5

Broom:

Soft broom

Broomstick

P130

Dustpan 50

Trashcan:

Large

Medium

750

160

Tub: Large

Medium

Small

260

220 160

Bucket: Medium

Large(24L)

160 250

Spade P520 P450

Exhibit 3– Canvass of Furniture and Fixtures

Furniture&

Fixtures

Gaisano Grand

Mall of

Antique

Bandiola

Plastic Goods

Gella General

Merchandising

Rose

Furniture


75

Monoblock

Chair

P350 P300

Wooden Table 3,299 P3,500

Filing Cabinet P14,500 15,000


76

Exhibit 4 – Canvass of Equipment

Equipment Bandiola

Plastic

Goods

Charlie

Trading

Gaisano

Grand

Mall of

Antique

Pacifica

Agri-

Vet

Supplies

Botika

Dela

Serna

Olx.

Com

Dinglasan

Furniture

Robert

Trading

Aton

Marketing

Hercyl’s

Minimart

Susana

Marketing

Knives P130

(large)

Weighing scale

P1,980 (60

kilo)

P980

(10 kilo)

P930 (15

kilo)

P1,129 (20

kilo)

Kawa P2,900 (extra

size)

P1,800

(size no.1)

P1,300 (size

no.2)


77

P1,200 (size no.3)

Plucker P19,000

Artificial Brooder

P150

Freezer P15,000

Chopping Board

P700

Waterers plastic

P110 (big)

P55 (small)

Shovel P450

Wheel

borrow

P2,195

Bucket P250

Tub/Basin P260

Generator P15,000

Calculator P465

Stapler P40


78

Exhibit 5 – Land (5 years)


Land P250,000 P250,000 P275,000 P300,000 P325,000 P350,000

Increase in

Value of

Land

25,000 25,000 25,000 25,000 25,000

New Value

of Land

P275,000 P300,000 P325,000 P350,000 P375,000

As assess by the local assessor of Bugasong

Exhibit 6A– Detailed Cost of Building

Expenses Amount

Labor (30 days, 3 person, P150 per day) P13,500

Hallow blocks (500 blocks x P25) 12,500

Cement (10 sacks x P450) 4,500

Iron Bars 1,200

Steel thrust 5,000

Galvanize Iron 12,000

Bamboo Poles (50poles x P40) 2,000

Bamboo Sheets (30sheets x P400) 12,000

Supplies 5,000

Nipa (20pcs x P300) 6,000


79

Electrical Fixtures 5,000

Food Allowance 2,109

TOTAL P80,809

Exhibit 6B – Cost of Building (5 Years)


Building P80,809 P80,809 P80,809 P80,809 P80,809 P80,809

Less:

Accumulated

Depreciation

(Exhibit 30)

0 8,081 16,162 24,243 32,324 40,405

Carrying

Amount P80,809 P72,728 P64,647 P56,566 P48,485 P40,405

Exhibit 7 – Cost of Equipment (5 Years)


Equipment

(Exhibit 27) P83,870 P83,870 P83,870 P83,870 P83,870 P83,870

Less: Accumulated

Depreciation

(Exhibit 27) 0 11,660 23,319 34,979 46,639 58,299

Carrying Amount P83,870 P72,210 P60,551 P48,891 P37,231 P25,571


80

Exhibit 8 – Cost of Furniture and Fixtures (5 Years)


Furniture and Fixture

(Exhibit 28) P19,299 P19,299 P19,299 P19,299 P19,299 P19,299

Less: Accumulated

Depreciation

(Exhibit 28) 0 3,860 7,720 11,579 15,439 P19,299

Carrying Amount P19,299 P15,439 P11,579 P7,720 P3,860 0

Exhibit 9 – Cost of Delivery Vehicle (5 Years)


Delivery

Vehicle

(Exhibit 29) P150,000 P150,000 P150,000 P150,000 P150,000 P150,000

Less:

Accumulated

Depreciation

(Exhibit 29) 0 15,000 30,000 45,000 60,000 75,000

Carrying

Amount P150,000 P135,000 P120,000 P105,000 P90,000 P75,000

Exhibit 10A – Cost of Chick Booster (5 Years)


No. of Heads Sold

(Schedule 2) 7,938 9,368 10,104 10,929 11,796


81

Divided by

Average No. of

Heads per Sack

(Exhibit 32) 800 800 800 800 800

Total 10 12 13 14 15

Multiply by: No. of

Sacks per 800

heads (Exhibit 32) 3 3 3 3 3

Total 30 35 38 41 44

Multiply by: Cost

per Sack

(Exhibit 32) P1,350 P1,413 P1,479 P1,549 P1,621

TOTAL COST

OF FEEDS P40,186 P49,645 P56,051 P63,465 P71,706

Exhibit 10B - Cost of Feeds Consumed (Lost Heads)


Lost Heads 175 191 208 225 242

Divided by: Ave. no of heads

per 3 sack 800 800 800 800 800

0.22 0.24 0.26 0.28 0.30

Multiply by: No. of sacks per

800 heads 3 3 3 3 3

0.66 0.72 0.78 0.84 0.91

Multiply by Cost per sack* P1,350 P1,413 P1,479 P1,549 P1,621

Total cost of feeds consumed P886 P1,012 P1,154 P1,307 P1,471


82

Exhibit 10C – Cost of Vaccination (Lost Heads)


NCD

Lost Heads 175 191 208 225 242

Average

cost per

head P1.50 P1.50 P1.50 P1.50 P1.50

TOTAL

COST-

NCD P263 P287 P312 P338 P363

IBD

Lost Heads 175 191 208 225 242

Average

cost per

head P2.00 P2.00 P2.00 P2.00 P2.00

TOTAL

COST-IBD P350 P382 P416 P450 P484

Exhibit 11 – Broiler Starter (5 Years)


No. of Heads Sold

(Schedule 2) 7,938 9,368 10,104 10,929 11,796

Divided by Average

No. of Heads per Sack

(Exhibit 32) 800 800 800 800 800

Total 10 12 13 14 15


83

Multiply by: No of

Sacks per 800 heads

(Exhibit 32) 4 4 4 4 4

Total 40 47 51 55 59

Multiply by: Cost per

Sack (Exhibit 32) P1,500 P1,570 P1,644 P1,721 P1,801

TOTAL COST OF

FEEDS P59,535 P73,548 P83,039 P94,023 P106,231

Exhibit 12 – Broiler Finisher (5 Years)


No. of Heads Sold

(Schedule 2) 7,938 9,368 10,104 10,929 11,796

Divided by Average

No. of Heads per Sack

(Exhibit 32) 800 800 800 800 800

Total 10 12 13 14 15

Multiply by: No of

Sacks per 800 heads

(Exhibit 32) 4 4 4 4 4

Total 40 47 51 55 59


Sack (Exhibit 32) P1,250 P1,309 P1,370 P1,434 P1,501

TOTAL COST OF

FEEDS P49,613 P61,290 P69,199 P78,352 P88,526


84

Exhibit 13A– Cost of New Castle Disease Vaccine


No. of

Heads sold

(Schedule 2) 7,938 9,368 9,368 10,929 11,796

Multiply by:

Average

cost per

head

(Exhibit

13B) P1.50 P1.50 P1.50 P1.50 P1.50

Multiply by:

no. of times

to take

vaccination

per heads

(Exhibit

13B) 2 2 2 2 2

TOTAL P23,814 P28,104 P28,104 P32,787 P35,388

Exhibit 13B – Vaccination Schedule

Vaccine Schedule Cost per Head

New Castle Disease

Vaccine

Infectious Bursai Disease

Vaccine

7 days old

P 1.50

P 2.00


85

New Castle Disease

Vaccine


Vaccine

17 days old P 1.50

P 2.00

Exhibit 13C -Schedule of Vaccine for 3 Months

NCD IBD

Heads sold 2,400 2,400

Multiply by: Average cost per head P1.5 P2.00

Multipy by: no. of times to take vaccination per heads

2 2

Total P7,200 P9,600

Exhibit 14 – Cost of Infectious Bursai Disease Vaccine


No. of

Heads sold

(Schedule 2) 7,938 9,368 10,104 10,929 11,796

Multiply by:

Average

cost per

head

(Exhibit

13B) P2.00 P2.00 P2.00 P2.00 P2.00


86

Multiply by:

no. of times

to take

vaccination

per heads

(Exhibit

13B) 2 2 2 2 2

TOTAL P31,752 P37,472 P40,416 P43,716 P47,184

Exhibit 15A – Labor Schedule


Direct Labor

Caretaker/Maintenance

Staff (Exhibit 15B) P72,152 P72,152 P72,152 P72,152 P72,152

Operational Staff (Exhibit

15B) 78,354 78,354 78,354 78,354 78,354

Operational Staff/Driver

(Exhibit 15B) 87,436 87,436 87,436 87,436 87,436

Total Direct Labor 237,942 237,942 237,942 237,942 237,942

Indirect Labor

96,960 96,960 96,960 96,960 96,960


87

Owner/Manager (Exhibit

15B)

TOTAL P334,902 P334,902 P334,902 P334,902 P334,902

Exhibit 15B – Compensation Package

Monthly

salary SSS Philhealth Monthly Annual

Owner/

Manager P7,440.00 P552.50 P87.50 P8,080.00 P96,960.00

Caretaker/

Maintenance 5,520.00 405.20 87.50 6,012.70 72,152.40

Operational Staff 6,000.00 442.00 87.50 6,529.50 78,354.00

Operational Staff/

Driver 6,720.00 478.80 87.50 7,286.30 87,435.60

TOTAL P25,680.00 P1,878.50 P350.00 P27,908.50 P334,902.00

Exhibit 15B.1 Labour for 3 Months

Monthly salary

Owner/Manager 7,440.00

Caretaker/Maintenance 5,520.00

Operational Staff 6,000.00

Operational Staff/Driver 6,720.00

Total 25,680.00

Multiplied by 3 Months 3

Total Labour for 3 Months 77040


88

Exhibit 16A – Delivery Schedule

Cost of gasoline per scheduled delivery Amount

Weekly P 250.00

Monthly P1,000.00

Exhibit 16B – Delivery Expense for 3 Months

Gasoline Schedule

Weekly Monthly 3 Months

Cost of gasoline as scheduled: 250 1000 3000

Exhibit 17A – Miscellaneous and Supplies Expense (5 Years)

Unit

Qua

ntity

Unit

Cost Year 1 Year 2 Year 3 Year 4 Year 5

Folder Pieces 20 P5.00

P100

P105

P110

P115

P120

Record

Book Item 5 85.00

425

445

466

488

510

Ballpen Item 10 11.00

110

115

121

126

132

Receipts Item 50

2,200

2,303

2,411

2,524

2,642

Correcti

on Fluid Item 2 14.00

28

29

31

32

34

Plastic Item 1 100.00

100

105

110

115

120

Waste

Can Item 1 160.00

160

167

175

184

192


89

Broom Item 2 130.00

260

272

285

298

312

Dustpan Item 2 50.00

100

105

110

115

120

TOTAL P3,483 P3,646 P3,817 P3,995 P4,182

Exhibit 17B – Miscellaneous and Supplies Expense for 3 Months

Unit Quantity Unit Cost Year 1

Folder Pieces 19 5.00 95

Record Book Item 3 85.00 255

Ballpen Item 9 11.00 99

Receipts Item 45 44.00 1,980

Correction Fluid Item 1 14.00 14

Plastic Item 1 100.00 100

Waste Can Item 1 160.00 160

Broom Item 1 130.00 130

Dustpan Item 1 50.00 50

TOTAL 2,883

Exhibit 18A – Utilities Cost (5 Years)


Water P6,000 P6,281 P6,575 P6,882 P7,205

Electricity (Exhibit 33) 212,387 229,294 233,980 267,291 288,382

For Overhead 218,387 235,575 240,555 274,173 295,587

Electricity (Exhibit 34) 691 723 757 793 830

Communication 5,988 6,268 6,562 6,869 7,190


90

For Administrative/operating

expense 6,679 6,991 7,319 7,662 8,020

TOTAL 225,066 242,566 247,873 281,835 303,607

Exhibit 18B – Utilities Monthly Expense

Utilities Monthly

Usage Rate

Monthly

cost Supplier

Water 22.72 cu. m

P 22 per cu. m.

P500 Bugasong

Water

District

Electricity 328.03 kilowatt

P 10.30 per

kilowatt 3,378.71 ANTECO

Transportation 1,000

Communication PLAN 499 Globe

TOTAL P5,377.71

Exhibit 18C – Utilities Expense for Working Capital (3 months)

Utilities Monthly

Usage Rate Monthly cost Supplier

Water 22.72 cu. m P 22 per cu.

m. P500 LOWA

Electricity 242.71 kilowatt

P 10.30 per kilowatt

2,500 ANTECO

Transportation 1,000


91

Communication PLAN 499 Globe

Total 4,499

multiply by 3 months 3

Total P13,497

Exhibit 19 – Feasibility Study Expense

Amount

Research Expense P450

Transportation 550

Printing 200

Binding 300

TOTAL P1,500

Exhibit 20A– Advertising Expense

Price per unit No. of Pcs. Amount

Streamer 200 3 P600

Flier 1 450 450

TOTAL P1,050

Exhibit 20B – Canvass of Promotional Materials

Eye

Catcher

Computer

Shop

Tres

Marias

Computer

Shop

Barte.com Boytex

Printing

Services

Angel’s

Printing

Shop

Streamer

(2x1m)

P200 P220


92

Flier

(8.5x5.5 in)

P1.00 P1.00 P2.00

Exhibit 21 – Permits and Licenses

Amount

Annual Registration (BIR) P500

DTI 300

Mayor's Permit 2,000

Business Clearance to Operate 30

Police Clearance 75

Sedula 22

Fire Clearance 50

Sanitary Permit 125

Environmental Compliance Certificate (DENR) 500

TOTAL P3,602

Exhibit 22 – Non Cash Equity Contribution

Amount

Vehicle P150,000

Land 250,000

TOTAL 400,000

Exhibit 23 – Direct Materials (5 Years)


Heads sold (Schedule 2) 7,938 9,368 10,104 10,929 11,796


93


Head* P25 P26 P28 P29 P30

Total 198,450 245,910 278,466 316,285 358,480

Feeds

Chick Booster

(Exhibit 10) 40,186 49,645 56,051 63,465 71,706

Broiler Starter

(Exhibit 11) 59,535 73,548 83,039 94,023 106,231

Broiler finisher

(Exhibit 12) 49,613 61,290 69,199 78,352 88,526

Vaccine:

New Castle Disease (NCD

Vaccine) (Exhibit 13) 23,814 28,104 30,312 32,787 35,388


Vaccine (Exhibit 14) 31,752 37,472 40,416 43,716 47,184

TOTAL P403,350 P495,969 P557484 P628,629 P707,515

Exhibit 24 – Overhead (5 Years)


Owner/Manager

(Exhibit 15A) P96,960.00 P96,960.00 P96,960.00 P96,960.00 P96,960.00

Utilities

(Exhibit 18A) 218,387 235,575 240,555 274,173 295,587

TOTAL P315,347 P332,535 P337,515 P371,133 P392,547

Exhibit 25 – Mortality Schedule (5 Years)


94


Lost heads (Schedule 2) 175 191 208 225 242

Multiply by: Cost per Head* P25 P26 P28 P29 P30

Total 4,375 5,014 5,732 6,512 7,354

Feeds

Chick Booster (Exhibit 10B) 886 1012 1154 1307 1471

Broiler Starter

Broiler Finisher

Vaccine:

New Castle Disease (NCD Vaccine) 263 287 312 338 363

Infectious Bursai Disease Vaccine 350 382 416 450 484

TOTAL P5,898 P6,721 P7,642 P8,635 P9,703

Exhibit 26 – Selling Expense (5 Years)


Transportation 11,000* 12000 12000 12000 12000

* 11 months of delivery (P1,000 x11)

Gasoline Schedule

Weekly Monthly Yearly

Cost of gasoline as scheduled: 250 1000 12000

Exhibit 27 – Depreciation of Equipment

Equipment

Total

Cost

Estimated

Useful Life

Annual Depreciation

Expense

Knives P390 5 P78.00


95

Weighing

Scale 3,960 5 792.00

Kawa 2,900 5 580.00

Plucker 19,000 10 1,900.00

Artificial

Brooder 750 5 150.00

Freezer

30,000.00 7 4,285.71

Chopping

Board

700.00 5 140.00

Waterers

2,750.00 5 550.00

Shovel

900.00 5 180.00

Wheel

borrow

2,195.00 5 439.00

Bucket

1,250.00 5 250.00

Generator

15,000.00 10 1,500.00

Tub

2,600.00 5 520.00

Relating to Operation

82,395.00

11,364.71

Calculator

1,395.00 5 279.00

Staplers

80.00 5 16.00

Office Equipment

1,475.00

295.00


96

TOTAL

83,870.00 11,660

Exhibit 28 – Depreciation Expense of Furniture and Fixtures

Furniture Total Cost

Estimated

Useful Life Annual Depreciation

Monoblock Chair P1,500 5 P300

Wooden Table 3,299 5 660

Filing Cabinet 14,500 5 2,900

TOTAL P19,299 P3,860

Exhibit 29 – Depreciation Expense of Delivery Vehicle

Total Cost Useful life Annual Depreciation

Delivery Vehicle P150,000 10 P15,000

Exhibit 30 – Depreciation Expense of Building

Building Total Cost Useful life Annual

Depreciation

Poultry house P80,809 10 P8,081


97

Exhibit 31 – Amortization of Pre-Operating Costs (5 Years)

Amortization Carrying Amount

Year 0 P7,652.00

Year 1 P1,530.40 6,121.60

Year 2 1,530.40 4,591.20

Year 3 1,530.40 3,060.80

Year 4 1,530.40 1,530.40

Year 5 1,530.40 0

Exhibit 32A – Feeding Schedule

Age of

chicks in

days

Type of feeds Consumption Cost per Sack Total Cost

per 800

chicks

0-14 Chick Booster 3 sacks/800 heads

P1,350.00 P 4,050.00

15-28 Broiler Starter 4 sacks/800

heads

P1,500.00 P 6,000.00

29-45 Broiler Finisher 4 sacks/800 heads

P1,250.00 P 5000.00


98

Exhibit 32B – Cost of feeds for 3 Months

Chick Booster

Broiler

Starter

Broiler

Finisher

No. of Heads Sold (Schedule 2) 2,400 2,400 2,400

Divided by Average No. of

Heads per Sack (Exhibit 32A) 800 800 800

Total 3 3 3

Multiply by: No of Sacks per

800 heads (Exhibit 32A) 3 4 4

Total 9 12 12

Multiply by: Cost per Sack

(Exhibit 32A) 1,350 1,500 1,250

TOTAL COST OF FEEDS 12,150 18,000 15,000

Exhibit 33 A Year 1

Age

No. of

hours

in

light

Bulb

(watts)

Total

Days of

Usage

Total

Usage –

kW- (150

heads; 31

batches)

Total

Usage –

kW-

(250

heads;9

batches)

Total

Usage –

kW-(400

heads;3

batches)

Total

Usage

-kW-

(162

heads;5

batches)

0-3 23 125 3 1,604.25 776.25 414.00 279.45

4-7 18 125 4 1,674.00 810.00 432.00 291.60

8-14 14 125 7 2,278.50 1,102.50 588.00 396.90

15-22 16 125 8 2,976.00 1,440.00 768.00 518.40

23-27 18 125 5 2,092.50 1,012.50 540.00 364.50

Total 10,625.25 5,141.25 2,742.00 1,850.85

Multiply

(rate) P10.30 P10.30 P10.30 P10.30

Total P109,440.10 P52,954.88 P28,242.6 P19,063.76

TOTAL COST

PER YEAR P212,387


99

Exhibit 33B Year 2

Age

No. of

hours in

light

Bulb

(watts)

Total

Days of

Usage

Total

Usage -

kW-

(162

heads; 31

batches)

Total

Usage -

kW-(270

heads;9

batches)

Total

Usage-

kW-(432

head; 3

batches)

Total

Usage-

kW-(175

heads; 5

batches)

0-3 23 125 3 1,732.59 838.35 447.12 301.875

4-7 18 125 4 1,807.92 874.8 466.56 315

8-14 14 125 7 2,460.78 1,190.7 635.04 428.75

15-22 16 125 8 3,214.08 1,555.2 829.44 560

23-27 18 125 5 2,259.9 1,093.5 583.2 393.75

Total 11,475.27 55,52.55 2,961.36 1,999.375

Multiply (rate)

P10.3 P10.3 P10.3 P10.3

Total P118,195.3 P57,191.27 P30,502.01 P20,593.56

TOTAL COST

PER YEAR P229,294

Exhibit 33C Year 3

Age

No. of

hours

in

light

Bulb

(watts)

Total

Days of

Usage

Total

Usage-kW-

(175 heads;

31 batches)

Total

Usage-

kW-(292

heads; 9

batches)

Total

Usage

(467

heads;3

batches)

Total

Usage-

kW-(189

heads; 5

batches)

0-3 23 125 3 1,871.625 906.66 483.345 326.025

4-7 18 125 4 1,953.00 946.08 378.27 340.20

8-14 14 125 7 2,658.25 1,287.72 294.21 463.05

15-22 16 125 8 3,472.00 1,681.92 336.24 604.80

23-27 18 125 5 2,441.25 1,182.60 378.27 425.25

Total 12,396.13 6,004.98 1,870.335 2,159.325

Multiply

(rate) P10.30 P10.30 P10.30 P10.30

Total P127,680.10 P61,851.29 P19,264.45 P22,241.05

TOTAL COST

PER YEAR P233,980


100

Exhibit 33D Year 4

Age

No. of

hours

in

light

Bulb

(watts)

Total

Days of

Usage

Total Usage-

kW-(162

heads; 31

batches)

Total

Usage-

kW-(189

heads; 5

batches)

Total

Usage-

kW-(189

heads; 31

batches)

Total

Usage-

kW-(315

heads; 9

batches)

0-3 23 125 3 1,732.59 326.025 2,021.355 978.075

4-7 18 125 4 1,807.92 340.2 2,109.24 1,020.6

8-14 14 125 7 2,460.78 463.05 2,870.91 1,389.15

15-22 16 125 8 3,214.08 604.8 3,749.76 1,814.4

23-27 18 125 5 2,259.9 425.25 2,636.55 1,275.75

Total 11,475.27 2,159.325 13,387.82 6,477.975

Multiply P10.3 P10.3 P10.3 10.3

Total P118,195.3 P22,241.05 P137,894.5 P66,723.14

TOTAL COST

PER YEAR P267,291

Exhibit 33E Year 5

Age

No. of

hours

in

light

Bulb

(watts)

Total

Days of

Usage

Total

Usage-kW-

(204 heads;

31 batches)

Total

Usage-

kW-(340

heads;9

batches)

Total

Usage-

kW-(544

heads;3

batches)

Total

Usage-

kW-(220

heads;5

batches)

0-3 23 125 3 2,181.78 1,055.70 563.04 379.5

4-7 18 125 4 2,276.64 1,101.60 587.52 396.00

8-14 14 125 7 3,098.76 1,499.40 799.68 539.00

15-22 16 125 8 4,047.36 1,958.40 1,044.48 704.00

23-27 18 125 5 2,845.80 1,377.00 734.4 495.00

Total 14,450.34 6,992.10 3,729.12 2,513.50

Multiply P10.30 P10.30 P10.30 P10.30

Total P148,838.50 P72,018.63 P38,409.94 P25,889.05

TOTAL COST

PER YEAR P288,382


101

Exhibit 35 Unit

No. of

Hours

Usage

per unit

Total

Usage

Rate Total

Monthly

Cost

Freezer 1 24 145.63 145.63 P10.30 P1,500

40 watts bulb

(Inside the poultry

House)

4 24 28.8 115.2 10.30 1,186.56

40 watts bulb( outside the

poultry house)

4 14 16.8 67.2 10.30 691.16

Total P3,377.72

Exhibit 34 Year 1 Year 2 Year 3 Year 4 Year 5

Freezer P1,500 P1,570 P1,643 P1,720 P1,801

40 watts bulb (Inside the

poultry House)

Exhibit 35

1,186 1,242 1,300 1,361 1,425

40 watts bulb( outside the poultry house)

Administrative

691 723 757 793 830


102

Exhibit 36– Technical Layout

feasibility study about poultry business

Business

chicn poultry business

common business

broiler chicken

marketing aspectthe

chicken breeding

best dressed chicken

poultry production specifica

poultry farm