SECTION 5

SUSTAINABILITY

This part shows the financial plan. Projected cost revenue, projected revenue, projected income
statement and cash flow.

FINANCIAL PLAN

CAPITALIZATION

Mugeating’s initial capital is Php50,000.00. The group is composed of 9 members and

each will be giving Php5,555.00 as their share.

MONTHLY EXPENSES

The table below shows our projected expenses per month during the initial year of our
operation based on our product.
 Fixed Cost January February
Rental ₱1,000 ₱1,000
Salaries ₱4,500 ₱4,500
(A) TOTAL FIXED ₱5,500 ₱5,500
COST

VARIABLE COST
(MONTH)
Raw Materials
Mug ₱12,500.00 ₱7,500.00
Plastic Cup ₱500.00 ₱350.00
Paper Plate ₱720.00 ₱720.00
Graham Biscuits ₱1,775.00 ₱1,065.00
Fruit Pops ₱750.00 ₱600.00
Alaska Condense ₱3,655.00 ₱2,199.00
Cheese ₱2,350.00 ₱1,410.00
Nestle Cream ₱2,650.00 ₱1,590.00
Fruit Cocktail ₱1,150.00 ₱690.00
Gulaman ₱742.50 ₱445.50
Alaska Evaporada ₱1,895.00 ₱1,137.00
Sugar ₱1,250.00 ₱750.00
Nachos ₱4,800.00 ₱4,800.00
Dressing (sauce) ₱225.00 ₱225.00
Vegetables ₱1,500.00 ₱1,500.00
Mico ₱3,300.00 ₱2,475.00
Candies ₱1,175.00 ₱822.00
Transportation ₱416.00 ₱416.00
Miscellaneous ₱500.00 ₱500.00
(B) TOTAL VARIABLE ₱41,853.00 ₱29,194.00
COST
(A+B) TOTAL ₱47,353.00 ₱34,694.00
MONTHLY COST

Table 1 shows the projected expenses per month during the initial year of operation. It is
noted that fixed cost is lower than the variable cost.
 COMPUTATION OF PROJECTED COST AND REVENUE

TABLE 2: PROJECTED REVENUE

TYPES OF COSTING PROJECTED DAILY PROJECT MONTHLY YEARLY

PRODUCT VOLUME REVENUE END REVENUE PROJECTED
(C*PVD) VOLUME (DR*30) REVENUE
DAILY MONTHLY (MR*12)
(PVD*30))
GRAHAMS C=₱59.33 10 C=₱593.00 300 C=₱17,799.00 C=₱213,588.00
M=₱5.67
SP=₱65.00 SP=₱650.00 SP=₱19,500.00 SP=₱234,000.00
GELATIN C=₱48.53 10 C=₱485.30 300 C=₱14,599.00 C=₱174,708.00
M=₱6.47
SP=₱55.00 SP=₱550.00 SP=₱16,500.00 SP=₱198,000.00
FRUIT C=₱1.50 50 C=₱75.00 1,500 C=₱2,250.00 C=₱27,000
POPS M=₱8.50
SP=₱10.00 SP=₱500.00 SP=₱15,000.00 SP=₱180,000
NACHOS C=₱12.30 30 C=₱369.00 900 C=₱11,070.00 C=₱132,840.00
M=₱7.70
SP=₱20.00 SP=₱600.00 SP=₱18,000.00 SP=₱216,000.00
MICO C=₱2.06 80 C=₱164.00 2400 C=₱4,920.00 C=₱59,040.00
M=₱2.94
SP=₱5.00 SP=₱400.00 SP=₱12,000.00 SP=₱144,000.00
ASSORTED C=₱27.33 30 C=₱820.00 900 C=₱24,600.00 C=₱295,200.00
SWEETS M=₱12.67
SP=₱40.00 SP=₱1,200.00 SP=₱36,000.00 SP=₱432,000.00
TOTAL 210 C=₱2,506.00 6300 C=₱75,198.00 C=₱902,376.00

SP=₱1,900.00 SP=₱117,000.00 SP=₱1,404,000.00

LEGEND: C – Cost M - Mark –up SP – Selling Price

Table 2&3 showed that the projected cost revenue by month Based on the table the Total
Revenue is ₱1,404,000.00 the combined fixed and variable cost. It indicates that Mugeating has
a bright future in this business industry.
 TABLE 3

JAN. FEB. MAR. APRIL MAY JUN.

REVENUE ₱89,133.00 ₱87,145.00 ₱95,242.00 ₱96,139.00 ₱91,929.00 ₱91,203.00

COST ₱47,353.00 ₱35,353.0 ₱43,353.00 ₱42,353.00 ₱41,353.00 ₱39,853.00

PROJECTED ₱41,780.00 ₱51,792.00 ₱51,889.00 ₱53,786.00 ₱50,576.00 ₱51,350.00

NET
PROFIT

JUL. AUG. SEP. OCT. NOV. DEC. TOTAL

₱88,219.00 ₱87,653.00 ₱87,703.00 ₱92,542.00 ₱94,853.00 ₱92,003.00 ₱1,049,176

₱39,353.00 ₱35,353.00 ₱35,353.00 ₱34,753.00 ₱35,353.00 ₱30,353.00 ₱460,136.00

₱48,866.00 ₱52,300.00 ₱52,350.00 ₱57,789.00 ₱59,500.00 ₱61,650.00 ₱589,628.00

As shown in the Table 4, July to September marks to be the leading months as we can observe.
The first quarter of the month shown a very unfavourable data since it is a non-peak month
whereas July to Ber months shows large growth of sales.
Computations of the projected income statement for the year ended and cash flow
for the first wuarter of the year based on our product concept.

Projected income statement

For the Years ENDED

2018 2019

Revenue ₱1,049,764 ₱1,081,256.00

Cost/Expenses ₱460,136.00 ₱473,940.00

Projected Net ₱589,628.00 ₱607,316.00

Income

The projected income for the year is expected to increase at least 3%.
 CASH FLOW 1st Quarter of 2018.

JANUARY FEBRUARY MARCH

CASH BALANCE
BEGINNING ₱50,000.00 ₱36,353.00 ₱46,353.00

CASH INFLOWS
₱89,133.00 ₱87,145.00 ₱95,242.00
NET INCOME

CASH OUTFLOW

FIXED COST ₱5,500.00 ₱5,500.00 ₱5,500.00

VARIABLE COST
₱41,853.00 ₱51,853.00 ₱51,853.00

CASH BALANCE
ENDING ₱36,353.00 ₱46,353.00 ₱46,353.00