WESLEYAN UNIVERSITY – PHILIPPINES

COLLEGE OF BUSINESS AND ACCOUNTANCY

Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

FEASIBILITY STUDY ON PRODUCTION OF

DEHYDRATED VEGETABLES IN CABANATUAN CITY

An Undergraduate Feasibility Study Presented to:

THE FACULTY OF COLLEGE OF BUSINESS AND ACCOUNTANCY

WESLEYAN UNIVERSITY - PHILIPPINES

In Partial Fulfilment of the Requirements in the Degree

Bachelor of Science in Accountancy

Presented By:

Padolina, Mary Jane P.

Pajarillaga, John Wences I.

Pajarillaga, Vincent

A.Y. 2022 – 2023

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Acknowledgement

We like to offer our sincere gratitude to the following individuals for their important

assistance in helping us finish this study:

To Mrs. Mary Berly Salvador, our thesis adviser and content critique, Ms. Alyssa Chua,

CPA, our statistician and Mr. Ernesto Gabao III, CPA, our financial adviser, for providing us

insights and giving us wider perspective as we are in the process of making this study;

To the panelists for their advice on how to make this paper better;

Thank you to the respondents for taking the time to participate in the interview and for

providing crucial information for the study;

To our devoted parents, who supported us even through the darkest nights as we worked on

this paper by giving the materials and financial support we needed;

For their encouragement to continue with this study, to our friends and classmates;

And to the Almighty Lord for His Unconditional Love and Mercy, which has preserved our

health and motivated us to complete this thesis.

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Abstract

Title: Feasibility Study on Production of Dehydrated Vegetables

in Cabanatuan City

Researchers: Mary Jane P. Padolina

John Wences I. Pajarillaga

Vincent M. Pajarillaga

Degree: Bachelor of Science in Accountancy

Adviser: Prof. Mary Berly M. Salvador, MBA

School: Wesleyan University- Philippines

Date of Defense: January 2023

The purpose of this study is to determine the feasibility on the production of dehydrated

vegetables in Kapitan Pepe Subdivision, Cabanatuan City. In the marketing aspect, the target

market will be the residents of Cabanatuan City. The products will be offered at a reasonable

price- a price that will justify the quality of products of the business and is potentially lower

compared to the existing competitors within Cabanatuan City. With the business advertisement,

there are various ways that VMW’s products will be marketed, one of which is through social

media platform, where the owner and his family will be promoting the products, as it is a family-
 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

owned business. The next one is through traditional marketing, where the business owner will be

handing out flyers and hang tarpaulins/banners around the vicinity of the business. The technical

aspect of this study tackled the different processes involved in the dehydration process and

packaging of vegetables, up to the selling process in its day-to-day ordinary course. The

management aspect states that the proposed business will be operating as a sole proprietorship

form of business and will be registered as Barangay Micro Business Enterprise. Because this

kind of business structure is less costly to establish compared to other forms of business. The

dehydrated vegetables business requires personnel to run the business; this includes a store

manager who is in charge on the day-to-day store operations and will serve as the cashier. On the

production department, the business also requires two production managers; they both have

different shifts and are both responsible with the production process and communication with the

suppliers and store manager. They are also responsible to meet the required daily finished goods.

Aside from production managers, the business also requires two helpers with different shift

schedule, they are in charge to help the production manager by washing, cutting, dehydrating,

ang packing vegetables. They are also in charge to maintain the cleanliness of the production

area. The business will be supervised by the owner or the manager for a sound work

environment. The establishment will be located at Kapitan Pepe Subdivision, Cabanatuan City,

beside Bar Rocks. The financial aspect covers all the financial matters about the study such as

the working and project capital required, materials and equipment cost, expenses, financial

statement, and financial statement analysis.

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Keywords: Dehydrated, Dehydrator Machine, Vegetables, Carrots, Onions, Tomato, Eggplant,

Squash.

TABLE OF CONTENTS

Page TITLE PAGE. . . . . . . . . . . . . . . . . . . . . ……. i

ACKNOWLEDGEMENT . . . . . . . . . . . . . . . . . . . . ii

ABSTRACT. . . . . . . . . . . . . . . . . . . . . . . . ………. iii

TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . .... iv

LIST OF FIGURES . . . . . . . . . . . . . . . . . . . . …… viii

LIST OF TABLES. . . . . . . . . . . . . . . . . . . . . ……. ix

CHAPTER I INTRODUCTION

Background of the Study . . . . . . . . . . . . . . . 1

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Rationale/Justification…. . . . . . . . . . . . . . .. 2

Review of Related Literature . . . . . . . . . . . 3

Statement of the Problem . . . . . . . . . . . . . . 12

Significance of the Study . . . . . . . . . . . . . 14

Definition of Keywords . . . . . . . . . . . . . .. 15

CHAPTER II RESEARCH METHODOLOGY

Research Design . . . . . . . . . . . . . . ……… 16

Research Locale…...…. . . . . . . . . . . . . . .. 16

Scope and Delimitation…… . . . . . . . . . . . 18

Research Instrument….. . . . . . . . . . . . . . . 18

Data Gathering Procedure. . . . . . . . . . . . . 19

Data Management Analysis . . . . . . . . . . . . . .. 15

Financial Analysis of Data.. . . . . . . . . . . . . . .. 15

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

CHAPTER III PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

Marketing Aspect…………………………… 22

Market Demand. . . . . . . . . . . . . . ….. 22

Market Supply…...…. . . . . . . . . . . . . 26

Demand and Supply Analysis…… . . 28

Marketing Program….. . . . . . . . . . . . 30

Product. . . . . . . . . . . . . ……………. 31

Pricing…………………………… . . 31

Place……………………….. . . . . . .. 32

Promotion. . . . . . . . . . . . . …………. 32

Technical Aspect…………………………… 33

Legal Requirements. . . . . . . . . . . . . . 34

Product……………...…. . . . . . . . . . 39

Materials and Equipment…… . . . . . 42

Floor Plan ……………….. . . . . . . . 49

Brand Logo. . . . . . . . . . . . ……….. 51

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Business Location (Main Office)… 53

Socio-Economic Aspect………………….. 54

Management Aspect ……………………... 54

Form of Organization. . . . . . . . . . . . . . ……… 54

Organizational Set-up ……...…. . . . . . . . . . . . 56

JOB DESCRIPTION AND QUALIFICATIONS … 58

Policies……… ……………….. . . . . . . . . . . . . 62

Financial Aspect …………………………………… 64

Assumptions….. . . . . . . . . . . . . . …………. 64

Lapsing Table Depreciation…...…. . . . . . . . 65

Demand and Supply Analysis…… . . . . . . . 28

Schedule of Costing….. . . . . . . . . . . . . . …. 70

Schedule of Amortization . . . . . . . . . . . ….. 75

Schedule of Cost of Goods Sold…………… 77

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Schedule of Sales……………………….. . . 78

Operating Expenses. . . . . . . . . . . . ………… 79

Projected Cost ……………………………… 81

Statement of Comprehensive Income………. 83

Statement of Changes in Owner’s Equity. . ... 85

Statement of Cash flows……………………. 86

Statement of Financial Position…... . . . . . . . . 88

Analysis…………………………………….. 89

CHAPTER IV SUMMARY, CONCLUSION AND RECOMMENDATION

Summary of Findings. . . . . . . . . . . . . . …. 95

Conclusion…...…. . . . . . . . . . . . . . .. …… 99

Recommendations …..…… . . . . . . . . . . . . 100

Bibliography……………………………………………… 101

Appendices……………………………………………….. 103
 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Appendix A: Documentation During Survey……. 103

Appendix B: Layering of Vegetables for Dehydration Process…… 104

Appendix C: Permits and Licenses……………… 106

Appendix D: SAMPLE QUESTIONNAIRE…… 112

Appendix E: SURVEY RESULTS……………… 123

Appendix F: DEMAND ………………………… 133

Appendix G: COGS…………………………….. 146

Appendix H: Schedule of Sales………………… 158

Appendix I: Schedule of OPEX………………… 160

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

List of Figures

Page

Figure 1. Global Food Waste 8

Figure 2: Channel Distribution of VMW dehydrated vegetables 32

Figure 3: Product Packaging – Resealable Pouch 43

Figure 4: Dehydrator Machine 44

Figure 5: Business Process 44

Figure 6: Floor Plan 49

Figure 7: Brand Logo 51

Figure 8: Vicinity Map 52

Figure 9. GANTT CHART 54

Figure 10: Organizational Structure 56

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

List of Tables

Page

Table 1: Projected Population 23

Table 2: Projected Demand 23

Table 3. Response on do you eat vegetables 25

Table 4. Response on considering dried vegetables as an alternative 25

Table 5. Response on patronizing the store 25

Table 6. Response on what product they will purchase 25

Table 7. Effective Demand per Product 26

Table 8. Supply 26
 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Table 9. Annual Effective Supply 27

Table 10 Normal Capacity 28

Table 11. Demand and Supply Gap 29

Table 12. Product Selling Price 31

TABLE 13. COSTING FOR LEGAL REQUIREMENTS 39

TABLE 14. PRODUCT DESPCRIPTION 40

TABLE 15. Procedures of Manufacturing/Dehydrating the Product 41

TABLE 16. QUANTIFICATION OF THE PRODUCTS 42

Table 17: Purchase of Raw Materials 46

Table 18: Equipment 46

Table 19: Manufacturing Equipment 47

Table 20: Furniture and Fixtures 48

Table 21. Employee Duties 56

Table 22: Personnel Shifting Schedule 57

Table 23: Salary Scheme 61

Table 24: Annual Depreciation of Manufacturing Equipment 65

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Table 25: Book Value per year of Manufacturing Equipment 66

Table 26: Annual Depreciation of Furniture and Fixture 67

Table 27: Book Value per Year of Furniture and Fixture 67

Table 28: Annual Depreciation of Equipment 68

Table 29: Book Value per Year of Equipment 69

Table 30: Cost of Raw Materials per Product 70

Table 31: Annual Cost per Unit 71

Table 32: Annual Product Demand 72

Table 33: Carrot Cost per Unit 73

Table 34: Eggplant Cost per Unit 73

Table 35: Tomato Cost per Unit 74

Table 36: Squash Cost per Unit 74

Table 37: Onion Leeks Cost per Unit 75

Table 38: Loan Schedule 75

Table 39: Amortization Schedule 76

Table 40: Schedule of COGS 77

Table 41: Selling Price and Mark – up 78

 WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100

Table 42: Operating Capital 79

Table 43: Supplies 80

Table 44: Rent and Marketing 80

Table 45: Project Cost 81

Table 46: Working Capital 82

Table 47: Statement of Comprehensive Income 83

Table 48: Statement of Changes in Owner’s Equity 85

Table 50: Statement of Cash flows 86

Table 51: Net Present Value 89

Table 52: Payback Period 90

Table 53: Return on Investment 91

Table 54: Inventory Turnover 92

Table 55: Working Capital Turnover 93

Table 56: Investment Turnover Ratio 94

WESLEYAN UNIVERSITY – PHILIPPINES
COLLEGE OF BUSINESS AND ACCOUNTANCY
Cushman Campus
Mabini Extension, Cabanatuan City, Philippines 3100