CHAPTER IV
TECHNICAL ASPECT
Service/Production Process
Here are the technical steps for how the business products are provided:
1. Insert cash (coins or bills).
2. Select either juice or coffee.
3. If choosing juice, pick a flavor; if selecting coffee, choose a flavor and
specify whether you want it iced or hot.
4. Receive any change if the amount inserted exceeds the price.
5. Wait patiently as the drink is prepared.
Figure 4.
Vending Machine
Presented in Table 17 is the vending machine required for the operation of the proposed
business. For its complete operation, a total of P200,000 for the vending machine is
needed.
Table 17.
Vending Machine
Depreciation
Presented in Table 18 is the annual depreciation of the Vending Machine that will be
used for the business.
Table 18.
Depreciation
Table 19.a.
Production Capacity of Juice
Table 19.b.
Production Capacity of Coffee
Purchase Material
Materials such as refills of juice and coffee powder, and cups will be made monthly by
the Product Filler. Table 20 expresses that the business will incur P297,300 for the
supply of the aforementioned for the first year.
Table 20.
Purchase Material
Projected Cost of Purchase Material
Table 21 shows the cost of supply purchase from Year 1 to Year 3. For Years 2 and 3,
the business will purchase the same quantity every month. Cost of purchase material is
assumed to be equal for the preceding years.
Table 21.
Projected Cost of Purchase Material
Permit, Taxes, Licenses
Table 22 displays the operating expenses of the business permit, taxes, and licenses
that the business must comply with.
Table 22.
Summary of Permit, Taxes and Licenses
Projected Permit and Licenses
The following years in the business will incur only the business permit and Annual BIR
registration fee therefore, cost will reduce to P2,000 in 2023. And will only incur the
business permit in 2024 because the BIR annual registration fee will no longer a
requirement under the EOPT act therefore, cost will reduce to 1,500 as shown in the
Table 23.
Table 23.
Permit, Taxes and Licenses
Table 24 presents the amount of utility expense that the business will incur per month
and the annual cost to be incurred by the proposed business.
Table 24.
Utility Expense
Projected Utility Expense
Table 25 shows the projected utility expense of the proposed business for the next 3
years. It is assumed to have an annual increase of 2%.
Table 25.
Projected Utility Expense
Table 26.
Summary of Project
Channels of Distribution
The business requires a reliable supplier of cups, juice, and coffee powder with a
proven track record of delivering high-quality products. This ensures smooth operations
and prevents issues like inventory shortages.
Philippine Vending Corporation
54 E. Rodriguez Jr. Avenue Bagong Ilog Pasig City 1600
(632) 8477-3333
customercare@[Link]