Annexes

Annex 1

Annex 2

1. Bottled Cooked Shrimp Paste

2. Smoked fish

_{3. Tuna ham}

_{4. Oyster sauce}

_{5. French style bottled herring}

Annexes

Annex 1

1. PROJECT TITLE: BUNKHOUSE FOR FISH DRYING

2. LOCATION: Nibaliw, San Fabian, Pangasinan

3. TECHNICAL SPECIFICATIONS: (Please refer to the Schematic Diagrams for details)

Scheme No. 1:

All lumber to be used are of good quality coco lumber

Flooring shall be of plain cement finish with 12 mm rsb

Seven layers of drying shelves made of bamboo slats on coco lumber framing

Scheme No. 2:

All lumber to be used are of good quality coco lumber

Flooring shall be of natural earthfill flooring

Seven layers of drying shelves made of bamboo slats of coco lumber framing

4. INVESTMENT REQUIRED:

Two schemes were prepared based on the floor finishing: Scheme 1 - with concrete flooring and Scheme 2 - natural earthfill flooring costing as follows (Annex 1):

	TOTAL COST
Scheme 1 -	P 34,500.00
Scheme 2 -	30,000.00

To reduce cost for both schemes, the existing drying trays being used by the proponent may be utilized with minor modifications.

The proposed structure has an estimated economic life of 10 years with minor repairs at 5 X. of total cost every three years. Hence, depreciation cost is estimated at :

	DEPRECIATION COST
	ANNUAL	MONTHLY
Scheme 1 -	P 3,450	P 287.50
Scheme 2 -	3,000	250.00

5. COMPARATIVE INCOME AND COST PROFILES

	WITHOUT BUNKHOUSE	WITH BUNKHOUSE
		SCHEME 1	SCHEME 2
GROSS SALES	P 531,250	P 717,188	P 717,188
Less: Cost of Raw Mat'ls/Inputs
Fresh Fish	414,000	57.2,270	532,270
Salt	17,010	22,050	22,050
Packaging Mat'ls	1,275	1,722	1,722
TOTAL	P 432,285	P 556,042	P 556,042
NET SALES	P 98,965	P 161,146	P 161,146
Less: Optng. Costs
Labor Cost	6,000	7,800	7,800
Rep & Maint. Cost	42	144	125
Deliver Expense	2,125	2,870	2,870
Depreciation Cost	186	427	332
TOTAL	P 8,353	P 11,241	P 11,127
GROSS PROFIT	P 90,612	P 149905	P 150,019
Less: Interest Exp.	-	82	769
NET PROFIT	P 90,612	P 149,823	P 149,250

6. PROFITABILITY INDICATORS

Return On Investment (%)	20.6	25.0	24.8
Payback Period (Months)	-	4.01	4.03
Profit Margin (%)	91.6	93.0	92.6

BILL OF MATERIALS

PROJECT: PROPOSED BUNKHOUSE FOR DRYING FISH (Scheme 1)

LOCATION: Nibaliw. San Fabian, Pangasinan

CODE	DESCRIPTION	QTY	UNIT	UNIT COST	TOTAL COST	REMARKS
I	Excavation	2.3	cum
II	Backfilling
III	Concrete and Masonry
	Portland Cement	25	bags	100/bag	P 2,500.00
	Ordinary Sand	2.5	cum	240/cum	600.00
	Ordinary Gravel	3.5	cum	350/cum	1,225.00
	150 mm CHB (ord.)	220	pcs	650/pc	1,430.00
	10 mm RSB x 6.00 mm	10	pcs	48/pc	480.00
	12 mm RSB x or., mm	15	pcs	60/pc	900.00
	6.1 # 16 Wire	2	kl	30/kl	60.00
				SUB-TOTAL	P 7,195.00
IV	Carpentry
	Nets (use nets second)	24	lnm	500.0	P 500.00
	Bamboo	30	pcs	45/DC	1,350.00
	4x4x12 Oost Coco lu	6	pcs	7.50/bdf	720 00
	2x6x10 GIRTS	3	pcs	7.55g/bdf	450.00
	2x5x10 Rafter	13	pcs	7.50/bdf	812.50
	2x3x10 Purlins	35	pcs	7.50/bdf	1,312.50
	2x3x8 Vert/Hor. stud	60	pcs.	7.50/bdf	1,800. 00
	2x3x8 Shelves Framing	45	pcs.	7.50/bdf	1,350.00
	2x2x10 Shelves Framing	160	pcs.	7.50/bdf	4,000.00
				SUB-TOTAL	P 12,655.0
V	Roofing
	Corr. Plastic Roofing	33	pcs	120/pc	P 3,960.00
				SUB-TOTAL	P 3,960.00
VI	Miscellaneous H'ware
	#5 CWN	6	kls	27.50/kl	P 165.00
	#4 CWN	6	kls	27 50/kl	165.00
	#3 CWN	8	kls	27 50/kl	220.00
	#2 CWN	5	kls	27.50/kl	137.50
	#1 CWN	3	kls	27.50/kl	82.50
	Roofing Nail (Umbrella)	2	kls	60/kl	120.00
	1/8x2x12 Post Scrap/Bolts & Nuts	6	sets	70/set	420.00
				SUB-TOTAL	P 1,310.00
				SUB-TOTAL	P 25,120.00
					8,792.00
					439.60
				GRAND TOTAL	P 34,351.60
				SAY	P 34,500.00

I TOTAL MATERIAL COST

II LABOR COST (35%)

III CONTIGENGENCIES (5%)

NOTE:

* ALL LUMBER TO BE USED ARE OF GOOD QUALITY COCO LUMBER

* FLOORING SHALL BE OF PLAIN CEMENT

* SEVEN LAYERS OF DRYING SHELVES MADE OF BAMBOO SLATS ON COCO LUMBER FRAMING

PROJECT: PROPOSED BUNKHOUSE FOR DRYING FISH (Scheme 1)

LOCATION: Nibaliw. San Fabian, Pangasinan

CODE	DESCRIPTION	QTY	UNIT	UNIT COST	TOTAL COST	REMARKS
I	Excavation
II	Backfilling
III	Concrete and Masonry
	Portland Cement	10	bags	100/bag	P 1,000.00
	Ordinary Sand	2.5	cum	240/cum	360.00
	Ordinary Gravel	3.5	cum	350/cum	525.00
	150 mm CHB (ord.)	220	pcs	650/pc	1,430.00
	10 mm RSB x 6.00 mm	10	pcs	48/pc	480.00
	6.1 # 16 Wire	2	kl	30/kl	60.00
				SUB-TOTAL	P 3,855.00
IV	Carpentry
	Nets (use nets second)	24	lnm	500.0	P 500.00
	Bamboo	30	pcs	45/DC	1,350.00
	4x4x12 Oost Coco lu	6	pcs	7.50/bdf	720 00
	2x6x10 GIRTS	6	pcs	7.55g/bdf	450.00
	2x6x10 GIRTS	3	pcs	7.55g/bdf	360.00
	2x5x10 Rafter	13	pcs	7.50/bdf	812.50
	2x3x10 Purlins	35	pcs	7.50/bdf	1,312.50
	2x3x8 Vert/Hor. stud	60	pcs.	7.50/bdf	1,800. 00
	2x3x8 Shelves Framing	35	pcs.	7.50/bdf	1,050.00
	2x2x10 Shelves Framing	160	pcs.	7.50/bdf	4,000.00
				SUB-TOTAL	P 12,355.0
V	Roofing
	Corr. Plastic Roofing	33	pcs	120/pc	P 3,960.00
				SUB-TOTAL	P 3,960.00
VI	Miscellaneous H'ware
	#5 CWN	6	kls	27.50/kl	P 165.00
	#4 CWN	6	kls	27 50/kl	165.00
	#3 CWN	8	kls	27 50/kl	220.00
	#2 CWN	5	kls	27.50/kl	137.50
	#1 CWN	3	kls	27.50/kl	82.50
	Roofing Nail (Umbrella)	2	kls	60/kl	120.00
	1/8x2x12 Post Scrap/Bolts & Nuts	6	sets	70/set	420.00
				SUB-TOTAL	P 1,310.00
				SUB-TOTAL	P 21,480.00
					7,518.00
					375.90
				GRAND TOTAL	P 29,373.90
				SAY	P 30,000.00

I TOTAL MATERIAL COST

II LABOR COST (35%)

III CONTIGENGENCIES (5%)

NOTE:

* ALL LUMBER TO BE USED ARE OF GOOD QUALITY COCO LUMBER

* FLOORING SHALL BE OF PLAIN CEMENT

* SEVEN LAYERS OF DRYING SHELVES MADE OF BAMBOO SLATS ON COCO LUMBER FRAMING

PROPOSED BUNKHOUSE FOR FISH DRYING

ASSUMPTIONS TO THE FINANCIAL PROJECTIONS

1. No. of Operating days per auntie : 20

2. The Bunkhouse can accommodate about 1,000 kilograms of fish for drying everyday

3. Volume and cost of fresh fish Per Month

SPECIES	VOLUME	FREQUENCY	TOTAL VOL. PER MONTH W/O B'HSE	TOTAL VOL PER MONTH W/ B'HSE	COST PER	WITHOUT BUNKHOUSE	WITH BUNKHOUSE
	(kg)		(kg)	(kg)	KG		SCHEME 1	SCHEME 2
BOLASI	450	4 x/week	7,200	9,257	P20.00	144,000	185,140	185,140
TUYO	15 boxes	daily	9,000	11,571	30.00	270,000	347,130	347,130
	@ 30 kgs
			TOTAL	20,828		414,000	532,270	532,270

4. Cost of Salt Per Month

SPECIES	TOTAL VOLUME PER MONTH		RATIO OF SALT TO FISH	TOTAL VOL. OF SALT		COST OF SALT	WITHOUT BUNKHOUSE	WITH BUNKHOUSE
	WITH	W/O		WITH	W/O	/ SACK		SCHEME 1	SCHEME 2
BOLASI	9,257	7,200	1 SACK TO	31	24	315	P 7,560	P 9,765	P 9,765
			10 BOXES
TUYO	11,571	9,000	-DO-	39	30	315	9,450	12,285	12,285
TOTAL							P 17,010	P 22,050	P 22,050

5 Labor Cost Per Month

	WITHOUT	WITH BUNKHOUSE
	BUNKHOUSE	(Both Schemes)
No. of Persons	10	13
No. of Mandays/ Month *	10	10
Rate Per Day	60	60
TOTAL LABOR COST	P 6,000	P7,800

* Every other day

6. Packaging Materials

Total Production Per Month	P 8,500	P 11,475
No. Of Boxes required	425	574
Cost per Box	3	3
Total Cost of boxes	1,275	1,722

7. Delivery Expense (Rent of Delivery Jeep Per Month)

No. of Boxes Per Month	425	574
Delivery Cost Per 80x	5	5
TOTAL	P 2,125	P 2,870

8. Production/ Sales Per Month

Production Per Month (kg)	8,500	11,475
Average Price Per Kilo	P 62.50	P 62.50
Sales Per Month	P 531,250	P 717,188

9. Total Project Cost

	SCHEME 1			SCHEME 2
	LBP LOAN	EQUITY	TOTAL PROJECT COST	LBP LOAN	EQUITY	TOTAL PROJECT COST
Bunkhouse Capital Cost	P 34,500		P 34,500	P 30,000		P 30,000
Incremental Cost of
Fresh Fish	118,270		118,270	118,270		118,270
Salt	5,040		5,040	5,040		5,040
Packaging Materials	447		447	447		447
Incremental Optng. Cost
Labor Cost		P 1,800	1,800		P 1,800	1,800
Delivery Expenses		745	745		745	745
SOB-TOTAL	P 158,257	P 2,545	P 160,802	P 153,757	P 2,545	P 156,302
Cost without Bunkhouse
Cost of Fish		414,000	414,000		414,000	414,000
Cost of Salt		17,010	17,010		17,010	17,010
Cost of Pckg'g. Mat'ls.		1,275	1,275		1,275	1,27S
Optag. Costs - Labor		6,000	6,000		6,000	6,000
Delivery Expense		2,125	2,125		2,125	2,125
SUB-TOTAL	P -	440,410	440,410		440,410	440,410
TOTAL PROJECT COST	P 158,257	P 442,955	P 601,212	P 153,757	P 442,955	P 596,712

10. Repair & Maintenance Cost is 5 X of capital cost of Bunkhouse divided by 12 months.

11. Schedule of Loan Amortization

The loan is payable in 12 months at 14 X interest per annum.

MONTH		SCHEME 1			SCHEME 2
	TOTAL AMORTIZATION	PRINCIPAL	INTEREST	BALANCE	TOTAL AMORTIZATION	PRINCIPAL	INTEREST	BALANCE
0	-	-	-	123,673.00	-	-		119,173.00
1	11,104.24	9,661.39	1,442.85	114,011.61	10,700.20	9,309.85	1,390.35	109,863 15
2	11,104.24	9,774.11	330.14	104,237.50	10,700.20	9,418.46	1,281.74	100,444.69
3	11,104.24	9,888.14	216.10	94,549.36	10,700.20	9,528.35	1,171.85	90,916.34
4	11,104.24	10,003.50	100.74	84,345.87	10,700.20	9,639.51	1,060.69	81,276.83
5	11,104.24	10,120.21	984.04	74,225.66	10,700.20	9,751.97	948.23	71,524.86
6	11,104.24	10,238.28	865.97	63,987.38	10,700.20	9,865.74	834.46	61,659.12
7	11,104.24	10,357.72	746.52	53,629.66	10,700.20	9,980.84	719.36	51,618.28
8	11,104.24	10,478.56	625.68	43,151.10	10,700.20	10,097.29	602.91	41,580.99
9	11,104.24	10,600.81	50".43	32,550.28	10,700.20	10,215.09	485.11	31,365.90
10	11,104.24	10,724.49	379.75	21,825.79	10,700.20	10,334.26	365.94	21,031.64
11	11,104.24	10,849.61	254.63	10,976.19	10,700.20	10,454.83	245.37	10,576.80
12	11,104.24	10,976.19	128.06	-	10,700.20	10,576.80	123.40	-
TOT	123,250.88	123,673.00	9,577.91	-	128,402.40	119,173.00	9,229.40	-

NOTE: Some figures may not add up to totals due to rounding.

12. Computation of Depreciation Cost

ITEM	TOTAL COST	LIFE SPAN (yrs)	WITHOUT BUNKHOUSE	WITH BUNKHOUSE
				SCHEME 1	SCHEME 2
Drying Trays	10,000	8	104
Banera (35 pcs X 140/pc.	4,900	5	82	82	82
Bunkhouse
Scheme 1	34,500	10		345	-
Scheme 2	30,000	10		-	250
			186	427	332

Annex 2

FINANCIAL FEASIBILITY STUDY FOR VARIOUS FISHERY PRODUCTS IN CAPIZ AND PANGASINAN

1. Bottled Cooked Shrimp Paste

1.1 Project Cost and Financing Plan

To implement the project, a total of P24,575.00 is required. Breakdown of the project cost and the corresponding fund sources are presented below:

Item	LBP Loan	W.A. Equity	Total Project Cost
Cost of Raw Mat'ls/
Ingredients	P6,125	-	6,125
(Item 3, App. 1)
Bottles	7,000	-	7,000
Facilities & Equipment:
Salting Vats		P1,500	1,500
Working Table		1,200	1,200
Gas Stove	1,000	-	1,000
Pressure Cooker	5,000	-	5,000
Weighing Scale	400	-	400
Misc. Kitchen Tools	500	-	500
Operating Costs:
Fuel/Water	-	50	50
Labor Cost	-	300	300
Transportation Cost	-	1,400	1,400
Misc. Optng. Cost	-	100	100
TOTAL	P20,025	P4,550	P24,575
Percent of Total (%)	81.5	18.5	100.0

1.2 Result of Financial Projections

Through a series of financial projections shown in Schedules 1-A to 1-C, the project's financial profitability was appraised.

The project is expected to generate total sales revenues amounting to P67,200.00 per month yielding an average monthly net profit of P7,078.00

(Schedule 1-A).

As shown in Schedule 1-B, the project will be able to provide its cash requirements for operations as well as amortize the loan and the corresponding interest payments as presented in Schedule 1-C.

1.3 Measures of Financial Profitability

Selected profitability indicators were estimated using the financial projections, the results of which are as follows:

Return on Investment (ROI):	28.9%
Payback Period:	3.47 Months
Profit Margin :	48.1%

1.4 Break-Even Point Analysis

Since the project is a manufacturing concern, break-even point analysis is very significant. With the use of the break-even formula, the following break-even points were arrived at:

Break-even Sales Volume Per Month:	170 bottles
Break-even Selling Price:	P10.736/bottle

Therefore, on a monthly basis the project should be able to sell 170 bottles of cooked shrimp paste in order to cover all costs including interest payments on the LBP loan. At this sales volume level, the project would neither incur loss nor make a profit. The project's sales volume should never go beyond this level.

Similarly, selling price per bottle should not be lower than P10.736. It is this price which covers both variable and fixed costs, but provides no profit.

1.5 Conclusion as to Financial Viability

The results of this study indicate that the project is highly profitable. Coupled with its economic significance, in the micro scale, of increasing the value-added to the raw materials, the project is highly recommended for financing.

Appendix 1

ASSUMPTIONS TO THE FINANCIAL PROJECTIONS

1. Production Cycle:	One week (7 Man-days)
Preparation of Shrimp:	One Man-day
Fermentation:	Six Man-days
Cooking, bottling, washing and labelling:	One Man-day

2. No. of Production Cycles Per Month: Four

3. Raw Materials Cost per Cycle (Variable Costs)

Kind	Qty.	Unit	Unit Cost	Total Cost
Small Shrimps	100	kg.	P15.00	P1,500.00
Salt	20	kg.	4.00	80.00
Corn Oil	13	gal.	269.23	3,500.00
Garlic	5	kg.	120.00	600.00
Sugar	20	kg.	16.00	320.00
Vinegar	25	liter	5.00	125.00
TOTAL				P6,125.00

Cost of Raw Materials/Ingredients Per Month' P24,500.00

4. Operating Expenses Per Cycle (Variable Costs)

Item	Amount
Fuel/Water	P 50.00
Labor Cost (3 man-days x P100/day)	300.00
Transportation Cost (P1.00 per bottle)	1,400.00
Miscellanous Expenses	100.00
TOTAL	P1,850.00

Total Operating Costs Per Month: P7,400.00

5. Computation of Depreciation Cost

Item	Qty.	Unit Cost	Total Cost	Est. Life	Annual Dep'n
				(Yrs.)	Cost
Salting Vats	2 pcs.	P750	P1,500	10	P 150
Working Table	1 pc.	1,200	1,200	8	150
Gas Stove	1 pc.	1,000	1,000	10	100
Pressure Cooker	1 pc.	5,000	5,000	10	500
Weighing Scale	1 pc.	400	400	8	50
Misc. Kitchen Tools	1 set	500	500	8	62.50
TOTAL					P1,012.50
Total Monthly Depreciation Cost					84.375

6. Cost of Bottles

1,400 pcs. x P5.00/bottle	Per Cycle : P7,000.00
	Per Month : 28,000.00

7. Pricing Scheme

	Cost Per Bottle
Variable Costs:
Raw Mat'ls/Ingredients	P4.375
Bottles	5.000
Operating Costs	1.321
SUB-TOTAL	P10.696
Fixed Costs:
Depreciation Cost	0.015
Interest Expense	0.025
SUB-TOTAL	P 0.040
TOTAL COST PER BOTTLE	P10.736
MARK-UP (12% of Total Cost)	1.264
SELLING PRICE PER BOTTLE	P12.000

8. Sales Revenues

Per Week (1,400 bottles x P12.00/bottle):	P16,800.00
Per Month (5,600 bottles x P12.00/bottle):	67,200.00

2. Smoked fish

2.1 Project Cost and Sources of Funds

Implementation-of the project necessitates the following cost components which will be drawn from the fund sources as indicated- below:

Item	LBP Loan	Pax Equity
Raw Materials/Ingredients
(Item 3, Appendix 2)
a. Milkfish Traditional	P1,300	-
b. Milkfish Deboned	1,480	-
c. Small Fish		2,000
Packaging Materials
(Item 4, Appendix 2)
a. Milkfish Traditional	P 60	-
b. Milkfish Deboned	60	-
c. Small fish	72	-
Facilities and Equipment
Smoke House	P1,000	-
Working Table	-	P1,200
Cooking Vat	1,000	-
Basins/Pails	1,000	-
Weighing Scale	400	-
Plastic Sealing Machine	2,000	-
Misc. Kitchen Tools	500	-
TOTAL	P5,900	P1,200

Operating Costs: P 350

The project may be implemented using either of the following three options based on the type of smoked fish products:

Option 1: Smoking of Milkfish- Traditional Way

Option 2: Smoking of Boneless Milkfish

Option 3: Smoking of Small Fish (Herring and Scads)

The project cost and fund sources for each option is hereunder-presented for comparison:

Item	LBP Loan	Pax Equity	Total Project Cost
OPTION 1: Milkfish - Traditional
Raw Mat'ls/Ingredients	P1,300	-	P1,300
Packaging Materials	60	-	60
Facilities & Eqpmt.	5,900	P1,200	7,100
Operating Expenses	-	350	350
TOTAL	P7,260	P1,150	P8,810
Percent of Total (%)	82.5	17.5	100.0
OPTION 2: Milkfish - Deboned
Raw Mat'ls/Ingredients	P1,480	-	P1,480
Packaging Materials	60	-	60
Facilities & Eqpmt.	5,900	P1,200	7,100
Operating Expenses	-	350	350
TOTAL	P7,440	P1,150	8,990
Percent of Total (%)	82,8	17.2	100.0
OPTION 2: Small Fish
Raw Mat'ls/Ingredients	P2,000	-	P2,000
Packaging Materials	72	-	72
Facilities & Eqpmt.	5,900	P1,200	7,100
Operating Expenses	-	350	350
TOTAL	P7,972	P1,550	9,522
Percent of Total (%)	83,7	16.3	100.0

2.2 Results of Financial Projections

Using accepted tools for financial analysis, the project's financial profitability under the different options was assessed the results of which are shown in Schedules 2-A to 2-C and summarized below:

Financial Results		Option 1	Option 2	Option 3
Total Monthly Sales	(P)	8,400	9,600	11,520
Gross Profit On Sales	(P)	2,960	3,440	3,232
Average Monthly Net Profit	(P)	1,426	1,905	1,693

2.3 Measures of Financial Profitability

The following profitability indicators were selected and estimated: for the three alternatives:

Financial Indicators		Option 1	Option 2	Option 3
Return on Investment	(%)	16.2	21.2	17.8
Payback Period	(Mos.)	6.2	4.7	5.6
Profit Margin	(%)	48.2	55.4	52.4

2.4 Break-Even Point Analysis

Project operations should be guided by the breakeven points in terms of sales volume and selling price per unit on a monthly basis as indicated below for each options:

Break-Even Points		Option 1	Option 2	Option 3
Break-Even Sales Volume Per Mo.	(Packs)	228	175	242
Break-Even Selling Price Per Unit	(P/pack)	34.68	37.68	38.99

Therefore, in: order to operate at break-even monthly sales volume should never be lower than the figures indicated. Correspondingly, with selling prices at break-even point, the project will recover both the fixed and variable costs.

2.5 Conclusion as to Financial Viability

On the basis of the above indicators Option 2 is recommended for implementation. As shown in Schedule 2-B, the project under Option 2 will be able to provide the daily cash requirements for the operation, as well as the loan amortizations according to the schedule (Schedule 2-C).

Appendix 2

ASSUMPTIONS TO THE FINANCIAL PROJECTIONS

1. Production Cycle:	One Day
2. No. of Production Cycles Per Month:	Four (4)

3. Paw Materials and Ingredients (Variable Costs) Per Cycle

Unit	Milkfish Traditional	Deboned	Small Fish
	kg.	kg.	kg.
Quantity	20	20	40
Unit Cost	P65.00	P74.00*	P50.00
Total Cost Per Cycle	P1,300.00	P1,480.00	P2,000.00 .
Total Cost Per Month	5,200.00	5,920.00	8,000.00

*Includes cost of fish (three pieces per kilo) of P65.00 per kilo and labor cost for deponing of P3.00 per piece.

4. Packaging Materials

	Milkfish
	Traditional	Deboned	Small Fish
No. of Kilos Per Cycle	20	20	40
No. of Pieces Per Kilo	3	3
No. of Pieces/kg. Per Pack	1 pc.	1 pc.	1/2 kg.
No. of Packs Per Cycle	60	60	72
Cost of Packaging Mat'.ls. Per Piece	P1.00	P1.00	P1.00
Total Cost Per Cycle.	60.00	60.00	72.00
Per Month	240.00	240.00	288.00

6. Operating Costs per Cycle (Variable Costs)

Item	Amount
Fuel/Water	P 50.00
Labor Cost (2 mandays x P100/day)	200.00
Misc. Expenses	100.00
TOTAL	P 350.00
Total Operating Cost Per Mo:	P1,400.00

7. Computation of Depreciation Cost

ITEM	QTY.	UNIT COST	TOTAL COST	EST. LIFE SPAN. (Yrs.)	ANNUAL DEP'N.
Smoke House
(Barrel Type)	1	P1,000	P1,000	10	P 100
Working Table	1	1,200	1,200	8	150
Cooking Vat	1	1,000	1,000	8	125
Basin/Pails.	1 set	1,000	1,000	5	200
Weighing Scale	1	400	400	5	80
Plastic Sealing Machine	1	2,000	2,000	8	250
Misc. Kitchen Tools	1 set	500	500	5	100
TOTAL			P7,100		P1,005

Total Depreciation Cost Per Month: P 83.75

8. Selling Prices and Sales Revenues

Option	Selling Price Per Pack	No. of Packs Per Cycle	Sales Per Cycle	Per Mo.
Milkfish:
Traditional	P 35.00	60	P2,100	P8,400
Deboned	40.00	60	2,400	9,600
Small Fish	40.00	72	2,880	11,520

9. Pricing Scheme

	Cost Per Pack
	Milkfish		Small Fish
	Traditional	Deboned
Variable Costs
Raw Mat'ls/Ingredients	P 21.67	P24.67	P 28.00
Packaging Materials	1.0.0	1.00	1.00
Operating Costs	5.83	5.83	4.86
SUB-TOTAL	P 28.50	P 31.50	P 33.86
Fixed Costs
Depreciation Cost
(P83.75 / 4 cycles - No. of Packs)	P 0.34	P 0.34	P 0.34
Interest Expense .
(Ave. Mo. Int / 4 cycles - No. of Packs )	0.21	0.21	0.19
SUB-TOTAL	P 0.55	P 0.55	P 0.53
TOTAL COST PER PACK	P29.05	P32.05	P34.39
MAPK-UP	5.95	7.95	5.61
Percent of Total Cost (%)	(20)	(25)	(16)
SELLING PRICE PEP PACK	P35.00	P40.00	P40.00

10. The loan is payable within a period of six months at 14% interest per annum.

Schedule 2-A1

SMOKED FISH

OPTION 1: MILKFISH-TRADITIONAL

PROJECTED INCOME STATEMENT

	1	2	3	4	5	6
GROSS SALES	8,400	8,400	8,400	8,400	8,400	8,400
Less: Cost of Sales
Raw Material/Ingredients	5,200	5,200	5,200	5,200	5,200	5,200
Packaging Materials	240	240	240	240	240	240
TOTAL	5,440	5,440	5,440	5,440	5,440	5,440
GROSS PROFIT ON SALES	2,960	2,960	2,960	2,960	2,960	2,960
Less: Operating Costs	1,400	1,400	1,490	1,400	1,400	1,400
Depreciation Cost	84	84	84	84	84	84
TOTAL	1,484	1,484	1,484	1,484	1,484	1,484
Operating Profit	1,476	1,476	1,476	1,476	1,476	1,476
Less: Interest Expense	85	71	57	43	29	1
NET PROFIT	1,391	1,405	1,419	1,433	1,447	1,461

Computation of:

1. Return On Investment
2. Payback Period
3. Profit Margin
4. Break-Even Analysis
4.1 Break-Even Sales Volume Per Month
4.2 Break-Even S.P. Per Unit

_{Schedule 2-A2}

_{SMOKED FISH}

_{OPTION 2: DEBONED MILKFISH}

_{PROJECTED INCOME STATEMENT}

	1	2	3	4	5	6
GROSS SALES	9,600	9,600	9,600	9,600	9,600	9,600
Less: Cost of Sales
Raw Material/Ingredients	5,920	5,920	5,920	5,920	5,920	5,920
Packaging Materials	240	240	240	240	240	240
TOTAL	6,160	6,160	6,160	6,160	6,160	6,160
GROSS PROFIT ON SALES	3,440	3,440	3,440	3,440	3,440	3,440
Less: Operating Costs	1,400	1,400	1,400	1,400	1,400	1,400
Depreciation Cost	84	84	84	84	84	84
TOTAL	1,484	1,484	1,484	1,484	1,484	1,484
Operating Profit	1,956	1,956	1,956	1,956	1,956	1,956
Less: Interest Expense	87	87	87	87	87	87
NET PROFIT	1,869	1,883	1,897	1,912	1,926	1,941

_{Computation of:}

1. Return On Investment
2. Payback Period
3. Profit Margin
4. Break-Even Analysis
4.1 Break-Even Sales Volume Per Month
4.2 Break-Even S.P. Per Unit

_{Schedule 2-A3}

_{SMOKED FISH}

_{OPTION 3: SMALL FISH}

_{PROJECTED INCOME STATEMENT}

	1	2	3	4	5	6
GROSS SALES	11,520	11,520	11,520	11,520	11,520	11,520
Less: Cost of Sales
Raw Material/Ingredients	8,000	8,000	8,000	8,000	8,000	8,000
Packaging Materials	288	288	288	288	288	288
TOTAL	8,288	8,288	8,288	8,288	8,288	8,288
GROSS PROFIT ON SALES	3,323	3,323	3,323	3,323	3,323	3,323
Less: Operating Costs	1,400	1,400	1,400	1,400	1,400	1,400
Depreciation Cost	84	84	84	84	84	84
TOTAL	1,484	1,484	1,484	1,484	1,484	1,484
Operating Profit	1,748	1,748	1,748	1,748	1,748	1,748
Less: Interest Expense	93	93	93	93	93	93
NET PROFIT	1,655	1,670	1,685	1,701	1,716	1,732

_{Computation of:}

1. Return On Investment
2. Payback Period
3. Profit Margin
4. Break-Even Analysis
4.1 Break-Even Sales Volume Per Month
4.2 Break-Even S.P. Per Unit

_{Schedule 2-B}

_{SMOKED FISH}

_{OPTION 2: MILKFISH - DEBONED}

_{PROJECTED CASH FLOW STATEMENT}

	0	1	2	3	4	5	6
CASH BALANCE, BEG.	-	1,890	2,639	3,388	4,137	4,886	5,635
Sources of Funds		.					.
Loan Proceeds	7,440
Equity	1,550
Sales	-	9,600	9,600	9,600	9,600	9,600	9,600
TOTAL CASH AVAILABLE	8,990	11,490	12,239	12,988	13,737	14,486	15,235
APPLICATION OF FUNDS:
Facilities & Equipment	7,100
Raw Materials & Ingredients		5,920	5,920	5,920	5,920	5,920	5,920
Packaging Mat'ls.		240	240	240	240	240	240
Operating Exp. *		1,400	1,400	1,400	1,400	1,400	1,400
Loan Amortization		1,291	1,291	1,291	1,291	1,291	1,291
TOTAL CASH OUTFLOW	7,100	8,851	8,851	8,851	8,851	8,851	8,851
CASH BALANCE, ENDING	1,890	3,388	4,137	4,886	5,653	6,384

_{* Net Depreciation Cost}

_{Schedule 2-C}

_{SMOKED FISH}

_{LOAN AMORTIZATION SCHEDULE}

OPTION 1: MILKFISH TRADITIONAL
MONTH	TOTAL AMORTIZATION	PRINCIPAL	INTEREST	BALANCE
0	-		-	7,260.00
1	1,259.89	1,175.19	84.70	6,084.81
2	1,259.89	1,188.90	70.99	4,895.92
3	1,259.89	1,202.77	57.12	3,693.15
4	1,259.89	1,216.80	43.09	2,476.35
5	1,259.89	1,236.80	28.89	1,245.36
6	1,259.89	1,245.00	14.53	-
TOTAL	7,559.34	7,260.00 *	299.32 *	-
OPTION 2 : MILKFISH - DEBONED
0	-	-	-	7,440.00
1	1,291.12	1,204.32	82.80	6,235.81
2	1,291.12	1,218..37	72.75	5,017.92
3	1,291.12	1,232.59	58.53	3,784.15
4	1,291.12	1,246.97	44.15	2,537.35
5	1,291.12	1,261.51	29.61	1,276.36
6	1,291.12	1,276.22	14.89	-
TOTAL	7,746.72	7,440.00 *	306.74	-
OPTION 3: SMALL FISH
0	-	-	-	7,972.00
1	1,383.44	1,290.44	93.00	6,681.56
2	1,383.44	1,305.49	77.55	5,376.07
3	1,383.44	1,320.72	62.72	4,055.34
4	1,383.44	1,336.13	47.21	2,719.21
5	1,383.44	1,351.72	31.72	1,367.49
6	1,383.44	1,567.49	15.95	-
TOTAL	8,300.64	7,972.00 *	3:28.67	-