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ASIAN INSTITUTE OF TECHNOLOGY, SCIENCES AND THE ARTS,

INC.

No. 35 Padre. Burgos St, Poblacion Uno

City of Cabuyao, Laguna.

ESTABLISHMENT OF “POTATO CORNER” AT PUROK 3 BRGY. BIGAA


CABUYAO CITY, LAGUNA

A Research Presented

To the faculty of Business Management

Asian Institute of Technology, Sciences and the Arts, Inc.

In Partial Fulfillment

Of the Requirements for the Subject

Feasibility Study

By:

Antiporta, Jayson C.
Delminguez. Jeramae A.
Endozo, Bea Mariz L.
Jose, Joyce Anne C.
Landrito, Reizelle Anne R.
Naraga, Clarisse R.

I
June 2022

APPROVAL SHEET

This research hereto entitled:


__________________________________________
Title
Prepared and submitted by:
___________________________ ___________________________
___________________________ ___________________________
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In partial fulfillment of the requirement for the Practical Research 1 has been examined
and recommended for acceptance and approval for ORAL EXAMINATION.

JAN FREDMOND N. CAPUSO


School Administrator

Approved by the Committee on Oral Examination with a grade of


___________________.

RONALISA MAE D. RAMIL. MBA


Chairman

PAQUITO MANDALA RODOLFO GARCIA. CPA


Member Member
Acceptance in in partial fulfillment of the requirement for the subject Practical Research
1.

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Subject Instructor

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ACKNOWLEDGEMENT

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NAME OF STUDENTS - 4

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NAME OF STUDENTS - 5

ABSTRACT

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Title : ___________________________

Author : ___________________________
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School :Asian Institute of Technology, Sciences and the Arts, Inc.

Adviser : Mr. Ricky Torrenueva

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X
TABLE OF CONTENTS

(EDIT BASED ON THE PAGE NUMBER)

PAGE

Title Page............................................................................................................... I

Approval Sheet...................................................................................................... II

Acknowledgement................................................................................................. III

Abstract.................................................................................................................. XII

Table of Contents..................................................................................................

XIV

CHAPTER 1 PROBLEM AND ITS BACKGROUND

Introduction........................................................................................................... 1

Background of the Study....................................................................................... 2

Theoretical Framework......................................................................................... 2

Conceptual Framework......................................................................................... 3

Statement of the Problem...................................................................................... 4

Hypothesis............................................................................................................. 5

Scope and Limitation of the Study........................................................................ 6

XI
Significance of the Study....................................................................................... 6

Definition of Terms............................................................................................... 7

2 REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature.................................................................................................. 8

Foreign Studies...................................................................................................... 11

Local Literature..................................................................................................... 13

Local Studies......................................................................................................... 17

Synthesis of the Reviewed Literature and Studies................................................ 20

3 RESEARCH METHODOLOGY

Research Design.................................................................................................... 22

Population and Sample Size.................................................................................. 22

Sampling Technique Used..................................................................................... 23

Definition of Respondents..................................................................................... 23

Data Gathering Procedure..................................................................................... 23

Instrumentation...................................................................................................... 24

APPENDICES

XII
Appendix A

Survey questionnaire

Appendix B

References

Appendix C

Curriculum Vitae

XIII
CHAPTER I

The Problem and its Setting

Introduction

The project, Potato Corner in Purok3 Bigaa, City of Cabuyao, Laguna is a

franchise business that aims to provide affordable snacks with a wide variety of Potato

flavors that fits in all ages and in all occasions. The overall study as supported by the

marketing, technical, financial analysis proves to be feasible and satisfying in terms of

profit and sales. Moreover, a look into the management aspect determines the

organizational and operational elements essential in the development of this

undertaking.

Due to economic crisis, many Filipinos will find their ways to earn income to

support their families’ needs. Today, one of the considerations is the food cart business

because it does not need a huge capital. However, in order to succeed in a food cart

business, one should have a good product and a perfect location for the food cart.

Ideally, food cart should be placed on traffic streets, malls, and in a public market or

grocery store wherein there are lots of people.

Mr. Jose P. Magsaysay Jr., president of Potato Corner, he says that “A lot of

people say you have to multitask, and there’s nothing better than putting a 100% of

your mind into whatever you’re doing.

Potato Corner is a business that was chosen by the second year students from

AITSA-Asian Institute of Technology, Sciences and the Arts who aims to provide

accessible and affordable snacks for children, students and busy persons. It is located at

Purok3 Bigaa Cabuyao City of Laguna in front of Bonza, is one of the best place to put

up the business because of few competitor available.

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Potato Corner started on October 1992 in SM Megamall, Philippines as a simple

business venture. It is the first and original purveyor of delicious, nutritious and

reasonably- priced French fries in a cart, with a vast selection of exciting flavors to

choose from.

As of 2014, Potato Corner has 26 stores in operation as a plan to open more,

globally, Potato Corner open a total of 419 stores worldwide.

Statement of the Problem

Statement of the problem is a short description of the issues that meet to be addressed

by the planning team and should be presented to them or created by them before they

try to solve the problem. The researchers aim to establish the following statement of the

problem by putting up “Potato Corner” for the purpose of better understanding of the

proposed business concept. This feasibility study sought to put “Potato Corner” in the

area of Purok 3 Brgy. Bigaa City of Cabuyao, Laguna. The researchers aim to answer

the following questions through out the whole study – First, what type of business does

the researchers have? Then, what is the purpose of this business? Next, what is the key

message or phrase to describe this business in one sentence? What is the reason for

starting our own business? What is our product or service? Researchers also aim to

present the three unique benefits of our product. Do we have data sheets, brochures,

diagrams, sketches, photographs, related press releases or other documentation about

ouproduct/service? What is the product application? What led us to develop our

product? What this product or service used in connection with other products? What are

the top three objections to buying our product/service immediately? When will our

product be available? Who is our target audience? Who is our competitor/s? How is our

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product differentiated from that of your competitor/s? What is the pricing of our

product versus your competitor/s? Are we making any special offers? What plans do we

have for advertising and promotions? How will we finance company growth? Do we

have the management team needed to achieve our goals?

Objective of the Study

The objective of this study is to know the type of the business we have, its

purpose. Also, to determine the key message or phrase to describe your business in one

sentence, the reason for starting our own business, the product/s or service/s. To

identify the three unique benefits of our product. Also, to show the data sheets,

brochures, diagrams, sketches, photographs, related press releases or other

documentation about our product/service, the product application, what led us to

develop our product, if this product or service used in connection with other products,

the top three objections to buying our product/service immediately, if when will your

product be available, the target audience, to also know who our competitor/s is/are, how

is your product differentiated from that of your competitor/s, the pricing of your product

versus your competitor/s, if we are making any special offers, the plans we have for

advertising and promotions, how will we finance company growth, and lastly, if we

have the management team needed to achieve our goals.

Scope and Delimitation

This feasibility study of Potato Corner will be located in Purok 3, Barangay

Bigaa, City of Cabuyao, Laguna. All the citizens at City of Cabuyao will serve as

respondents. This study will be based on, marketing, technical, management, financial,

and socio – economic plan of the business. The questionnaire will be prepared by the

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researchers that serves as the basis where it contains questions that respondents will

answer base on their knowledge related to the product.

The purpose of this study is to deeply understand why youth and adults loved to

eat potato products. Until now, most of people eat different varieties of potato product.

In this study, researchers were establishing a business about Potato Corner. The

delimitation of the study are those people who dislike and eating potato products. And

the limitations of the study are those people who really loved to eat potato products.

Chapter 2

Management Feasibility

Introduction

This chapter will help to know the marketing aspect of the business. The

marketing aspect will cover the following: name of the company, types of organization,

mission, vision, goals and objectives, organizational chart, manpower resources, and

recruitment, selection and hiring of workers.

There are certain factors affecting the market that may or may not be difficult to

quantity and/or predict. The demand may be significantly affected by population

growth, income changes, trends, rural or urban development, prices of substitute and

complimentary products and such marketing tools as advertising, promotions, credit

policy, etc. supply may be influence by the development of factors, governments

policies, improved technology, etc. The prices may be affected by production costs,

price controls and inflations.

Name of the Company

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Business name is one of the steps when it comes to starting a business.

Choosing a business name will probably be one of the harder tasks. This is because

your business name is not just a name, it is a brand you'd use to advertise and sell your

product and services. The name of the business that the proponents conducted is the

"Potato Corner" where it has a unique name and description that people attract.

Types of Organization

Since there are six different people that decides to establish this franchising

business, this organization will be considered as a partnership organization.

Mission

The mission statement of this business is to establish a strong “Potato Corner”

brand image, to develop a creative and assertive human resource, to continuously re-

invent potato products, to delight customers, and to achieve high level of efficiency.

Vission

The vision statement of this business is to enhance the Filipino taste buds around

the world by providing delightful taste of sweet potatoes that will excite their

imagination.

Goals and Objectives

Goals

 To continuously re-invent at least two French fries every end of the month.

 To achieve high-level of efficiency by improving the production and operation

process by the current month.

 To increase sales by 5% on the two following consecutive months.

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 To establish strong brand image to the new market on the end of the first month

by means of advertising.

Objectives

The project intended to promote delicious and nutritious yet affordable French

fries for youths and adults of Brgy.Bigaa Cabuyao City of Laguna and surrounding

communities.

Manpower Resources

Potato Corner will be hiring employees suited for specific job. Employees play

big role in every success of the business. The service establish requires.

POSITION NO. OF DUTIES AND RESPONSIBILITIES


WORKER
- Make sure that workstation is clean
and free hazardous materials
Worker 2 - Address problems with production
equipment
- Make Fuego: Chili Garlic Spices with
love
- Maintain a clean and work
environment.
- Provide excellence service to
customers by greeting them with a
smile responding quickly and
efficiently to their request

- Helpers assist construction craft

Helper 1 workers, such as electricians and

carpenters, with a variety of basic

tasks. ... Many other helpers assist

with taking apart equipment, cleaning

up sites, and disposing of waste, as

well as helping with any other needs

XIX
of craft workers.

- Welcoming customers, answering

Cashier 1 their question, helping them locate

items, and providing advice or

recommendations.

- Accepting payments, ensuring all

prices and quantities are accurate and

providing a receipt to every customer.

Total No. of
Workers 4

Recruitment, Selection and Hiring of Workers

Potato Corner will hire workers through the following job descriptions. To

identify the best person for the job, provides a way to develop this understanding by

examining the tasks performed in a job.

Job Title: General Manager

Job Description:

 Set policies and processes.

 Evaluate employee performance and provide additional coaching and support as

needed.

 Oversee day-to-day operations.

 Responding to questions and complaints from the customers.

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 Allocate budget resources for supplies, equipment, marketing, and personnel.

 Provide solutions to issues.

Job Specifications:

 Male or Female

 18 years old and above

 Any educational attainment

 Highly developed, demonstrated teamwork skills.

 Ability to coordinate the efforts of a large team of diverse creative employees.

 Demonstrated ability to increase productivity and continuously improve

methods, approaches, and departmental contribution. Commitment to

continuous learning.

 Demonstrated effectiveness in holding conversations with customers, customer

evangelism, and customer-focused product development and outreach.

Duties and Responsibilities:

 Strong effective communicator.

 Highly developed, demonstrated teamwork skills.

 Ability to coordinate the efforts of a large team of diverse creative employees.

CHAPTER 3

TECHNICAL FEASIBILITY
Introduction

This study will discuss the technical aspect of putting up a business,

processes of production and activities done by the corporation. The tools and equipment

XXI
used in production and other aspects regarding, bringing the raw materials in to a

finished product, ready for trade. It is presented for the purpose of identifying the

operation of the said business.

TECHNICAL PROCESS
RAW MATERIALS
 Cheese powder
 Barbeque powder
 Sour Cream powder
 Chili Cheese powder
 Chili Barbeque powder
 Sweet Corn
 Oil
 Salt
 Potatoes
PRODUCTION PROCESS

PROCESS FLOW

XXII
LOCATION ANALYSIS
LOCATION MAP

PLANT LAYOUT

PRODUCTION NEEDS
MACHINERY AND EQUIPMENTS

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OFFICE AND STORE EQUIPMENTS
 Ovens
 Ranges and ventilation
 Food processors
 Mixers
 Slicers
 Food prep counters and cutting boards
 Freezers and refrigerators
 Safety equipment
 Storage racks and shelving
 Cooking equipment
 Serving ware
 Storage containers
 Sinks
 Kitchen Display System
 Point of sale system
 Steam table
 Washing equipment
 Sharpening stone
 Microwave
 Gas or electric grill
 Pen and paper
 Storage boxes
 Paper cups and bowls

OFFICE SUPPLIES.
 Computers and Software
 Computer Network and Internet Connection
 Multifunction Printer

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 Smartphone
 Shredder
 Mailing Equipment.
 desk supplies
 Forms
 light bulbs
 Paper
 pens and pencils
SWOT ANALYSIS
STRENGTHS
 One of the most famous franchise food cart for French fries
 Good workplace and well-trained staff
 Great customer experience delivered
 High level of customer loyalty
WEAKNESS
 Many emerging competitors
 Many substitute competitive products
OPPORTUNITIES
 Attract new customers through special promos
 Demand for home delivery services
 Build strong online image/content
THREATS
 Rising costs of raw materials
 Disruptive new competitors
 Supplier relationships

RAW MATERIALS SCHEDULE


Scheduling is the process business and organizations follow to ensure that their
services and resources are scheduled as optimally and efficiently as possible. Service
businesses and companies that have a mobile workforce especially must handle service
scheduling efficiently, because they need to match the correct service technicians to the
service calls to achieve optimal efficiency and productivity.

RAW MATERIALS USAGE SCHEDULE

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Frying Pan It will be used every time there is an order,
to make the potatoes fresh as served.

Gas Stove It will be used every time there is an order.

Food Glass Display It will be used all the time to display all the
products neatly.

UTILITIES
 Water.
 Electricity.
 Natural gas.
 Sewage and sanitation.
 Rent
 Salary to workers

WASTE DISPOSAL

XXVI
POLICIES
 No tardiness, timekeeping is a must.
 Meal and break periods
 Anti-harassment and non-discrimination
 Safety and health protocols must be followed.
 Attendance, respect and punctuality must be observed.
 Cleanliness of the staff and in the workplace
 Always serve quality product

CHAPTER 4

CHAPTER 4
MARKET DESCRIPTION
Potato corner was established in the Philippines in 1992 as food cart business
that focused on flavored fries. From a little kiosk, Potato Corner is known as the
World’s Best Flavored Fries with branches all over the world. Potato Corner has
effectively adapted, localized, and expanded globally throughout the years. To attract
new customers, Potato Corner highlights the importance of polite customer service as
well as sampling. Customer loyalty is assured right away. This is a good investment
since the product is low cost but high efficiency and is very famous with all ages and
definitely you can make a good profit.

PRIMARY TARGET MARKET


Children have always been the company's target market. But Potato Corner isn't
only catering to children. The owners believe that we're all children at heart, and that
customers will continue to patronize Potato Corner long after they've grown up. Since
French fries is one of the most staple foods in the country, all ages are continuing to buy
and crave for the product.

FACTORS THAT AFFECT DEMAND

 Price of the Product- how much your product or service costs, this will always
be the first factor that can affect demand because of continuous fluctuation of
the prices in the market.The price of your product depends on your competitors,
demand, cost to produce the product, and what consumers are willing to spend.

XXVII
 The Consumer's Income- the money that a consumer earns from either work or
investment and as we have different rates in the income of every individual, the
one who can only afford it will be the one with extra budget and in the middle
class of society.
 The Price of Related Goods- when the price of a product rises, demand for its
substitute rises, and when the price of a good falls, demand for its substitute
falls.
 The Tastes and Preferences of Consumers- the individual tastes of diverse
bundles of goods, as evaluated by usefulness, they allow customers to rank these
bundles of items according to the amount of utility they provide.
 The Consumer's Expectations- household economic expectations are referred
to as consumer expectations. Current economic activity will be influenced by
expectations. People will be more eager to borrow and buy items if they expect
the economy to improve.
 The Number of Consumers in the Market- it always depends, change in the
total number of consumers causes the entire demand curve to shift right or left.

MARKETING PROGRAM
Marketing program is the process and activities you do to make your product to be
known and reach every individual of your target market, it is also building connections
and relationships to achieve the goal. The areas we need to consider for this are:
product, price, promotion, place and people.
 product – choose a product which is in demand and affordable that can be
patronized of all ages.
 price – low cost but with high quality and delicious.
 promotion – advertisements in different platforms especially ads on social
media.
 place – location and opening hours suited to busy, family lifestyles.
 people – staff that are friendly, well trained, hygienic and accommodating to the
needs of parents and children.

MARKETING STRATEGY
In order to get the attention of our target markets, there will be some marketing
strategies to apply. Flyers and leaflets will be given out to the people in Cabuyao to
inform them about the newly build food cart which is Potato Corner. Tarpaulin will be
used to promote and give some information about the foods abd services of potato
Corner food cart. Social media, the advertisements will be posted on online accounts

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on social networking sites like Instagram, Facebook, since it’s reachable and broadly
known by everyone.

SURVEY QUESTIONNAIRE
The questionnaire was formulated through the different way of gathering

information such as from different reading materials, observation and survey conducted

from the chosen respondents. The researcher gathered additional information for this

research by visiting some additional online that can help this research.

Based on the survey conducted by the researchers, out of 100 people or


respondents, 80% like the products of Potato Corner and 20% don’t. 80% saw the
clearness of cooking oil used in cooking potatoes and 20% does not pay attention to
it.82% has like the service of potato corner and 18% does not like . 82% of costumer
are satisfied by the taste of potato and 18% are not satisfied. By the pricing of product,
80% agreed its worth it and 20% are not. When it comes to Potato Corner worker’s bad
attitude, 54% responded yes and 46% no. 82% like the ambience and 18% does not.
80% responded that potatoes are cooked well and 20% responded no. 42% notice the
flies and 54% did not notice it. 88% of the respondents find the food cart clean and
12% does not. Also, 90% said yes about the friendliness of the staffs and 10% does not.
86% said potato corner have a good service and 14% not. Most of the costumers are
willing to come back with the percentage of 82% and 18% will not. Potato corner met
the expectations of 84% of their customers while 16% does not. Lastly, 86% of the
respondents find the Potato Corner hygienic and 14% do not.

DEMAND STRUCTURE

XXIX
QUARTERLY CONTRIBUTION TOTAL COST

RAW MATERIALS COST


PRICE

Potato 120, 000

Powder Flavorings 162, 000

Cheese Flavor 27, 000

Chili Cheese Flavor 27, 000

Barbeque Flavor 27, 000

Chili Barbeque Flavor 27, 000

Sour Cream Flavor 27, 000

Sweet Corn Flavor 27, 000

Paper Bowls 85, 500

Regular size 22, 500


Large Size 27, 000
Jumbo Size 36, 000

Cooking Oil 19, 200

Gas ( 50 Kilos ) with Tank inclusions 10, 000

XXX
3 YEARS CONTRIBUTION TOTAL COST

RAW MATERIALS COST


PRICE

Potato 1, 080, 000

Powder Flavorings 1, 458, 000

Cheese Flavor 243, 000

Chili Cheese Flavor 243, 000

Barbeque Flavor 243, 000

Chili Barbeque Flavor 243, 000

Sour Cream Flavor 243, 000

Sweet Corn Flavor 243, 000

Paper Bowls 769, 500

Regular size 202, 500


Large Size 243, 000
Jumbo Size 324, 000

Cooking Oil 172, 800

Gas Refill 144, 000


XXXI
HOW MUCH MONEY WILL YOU NEED?

Instead of just going by ‘gut feels’ it is essential that projected funding

requirements be carefully considered and costed. Here is a simple table to

assist with the process.

QUARTERLY PROJECTED EXPENSE

ITEM PHP

Working capital 500, 000

Capital Works Included in franchise fee

Rent 30,000

Staff Salary 38, 792

Research & Development Included in franchise fee

Advertising 5, 000

Equipments 10, 000


Packaging 90, 000

Licenses/Registration 6,000

Office Supply 5,000

TOTAL 684, 792

3 YEARS PROJECTED EXPENSE

ITEM PHP

Capital Works Included in franchise fee

Rent 180, 000

Staff Salary 349, 128

Research & Development Included in franchise fee

Advertising 20, 000

Packaging 810, 000

XXXII
Office Supply 45,000

TOTAL 1, 404, 128

QUARTERLY FORECAST – PROJECTED SALES AND PROFITS

JANUARY- MAY – SEPTEMBER –


APRIL 2023 AUGUST DECEMBER 2023
2023

SALES 1, 014, 000 1, 014, 000 1, 014, 000

TOTAL COST OF 1, 014, 000 1, 014, 000 1, 014, 000


GOODS SOLD

GROSS PROFIT ON 329, 208 329, 208 329, 208


SALES

LESS EXPENSES

WAGES 38,792 38,792 38,792

RENT 80,000 80,000 80,000

LICENSES 6,000 0 0

QUARTERLY 329, 208 329, 208 329, 208


SERVICE INCOME

PACKAGING 90, 000 90, 000 90, 000

OFFICE SUPPLY 5,000 5,000 5,000

ADVERTISING 5, 000 0 5, 000

TOTAL EXPENSES 554, 000 549, 000 554, 000

OPERATING PROFIT 1, 014, 000 1, 014, 000 1, 014, 000

3 YEARS FORECAST – PROJECTED SALES AND PROFITS

XXXIII
2023 - 2025

SALES 9, 126, 000

TOTAL COST OF GOODS SOLD 9, 126, 000

GROSS PROFIT ON SALES 2, 962, 872

LESS EXPENSES

WAGES 349, 128

RENT 720,000

LICENSES 6, 000

YEARLY SERVICE INCOME 2, 962, 872

PACKAGING 810, 000

OFFICE SUPPLY 180, 000

ADVERTISING 45, 000

TOTAL EXPENSES 5, 073, 000

OPERATING PROFIT 9, 126, 000

QUARTERLY SALES INCOME FORECAST

ASSUMPTIONS

 20% increase in Sales quarterly

JANUARY- MAY – SEPTEMBER –


APRIL 2023 AUGUST 2023 DECEMBER

XXXIV
2023

Working days 104 104 104

% of SALES 1, 014, 000 1, 216, 800 1, 460, 160

TOTAL SALES 329, 208 395, 049. 60 474, 059. 52


INCOME

GROSS PROFIT 112, 948 119,969.76 127,086.60

LESS EXPENSES

Advertising 5000 0 5000

Power 9, 200 10, 000 8, 800

Licenses 6,000 0 0

Office Supply 5,000 5,000 5,000

Packaging 90,000 90, 000 90, 000

Rent 20,000 20,000 20,000

Wages 38,792 38,792 38,792

TOTAL EXPENSES 164, 792 63, 792 68, 792

NET PROFIT 329, 208 395, 049. 60 474, 059. 52

3 YEARS SALES INCOME FORECAST


ASSUMPTIONS

 20% increase in Sales for 3 years

2023 - 2025

XXXV
Working days 936

% of SALES 10, 951, 200

TOTAL SALES INCOME 3, 555, 446. 40

LESS EXPENSES

Advertising 45, 000

Power 82, 800

Licenses 6,000

Office Supply 45,000

Packaging 810,000

Rent 180, 000

Wages 349, 128

TOTAL EXPENSES 1, 517, 928

NET PROFIT 3, 555, 446. 40

XXXVI

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