Clutter Control Corporation

• Main Authors: Ang, Penelope Cindy K., Cuba, Herufelbel, De Castro, Darwin, Dee, Margaret, Doratan, Denise, Dy, Wesley, Kung, Jervis, Uy, Jennifer, Yu, Lawrence Kristoffer
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17023
• Institution: De La Salle University

Clutter Control Corporation is a profit organization formed by nine incorporators. It is responsible for manufacturing Clutter Organizers used for storing both documents and office supplies. Clutter Control Corporation used a self-constructed questionnaire to gather relevant information regarding market preferences. Systematic random sampling was employed by the proponents to determine the respondents of the survey questionnaire. This method gave equal chances to the 3,639 working individuals included in the sampling frame. According to the survey results, the Clutter Organizers' primary market consists of 248 male and female working individuals who are willing to buy the product. Their consumption rate per year is 1.3145. Using the Gross Market Acceptability Rate, total population, and the consumption rate per year, the proponents were able to determine the monthly demand of the Clutter Organizers to be 269 units. The market share of the product, which is computed as the production capacity divided by the monthly demand, is 11.90%. The Clutter Organizer having an added feature of a top supply holder will be sold at P 350.00 only. The price will be reasonable since aside from the added feature, it is cheaper than the prices of the direct and indirect competitors in the market. Clutter Control Corporation's office and plant site will be at #8 Fuentes St., Corinthian Gardens, Q.C. A rental fee of P 300.00 per month will be paid to the owner for the use of the facilities and utilities. The proponents will use the Assembly Line Method in producing the 14 1/8 inches by 10 3/4 inches by 6 inches Clutter Organizer since it will be more productive. Using the Assembly Line Method, the average capacity of the products to be produced is 8 units per day. The total production cost for producing one Clutter Organizer is P 225.42 and the variable cost per unit is P 210.33. The break-even quantity is 4 units and the corresponding break-even peso sales is P 1,402.20. Clutter Control Corporation will be in existence for a period of 10 months commencing on January 1999. During this span of time the proponents shall enter into contracts and business transactions as a business entity. Two weeks shall be allotted for the registration of the corporation and 36 weeks shall be for the production of the Clutter Organizers. Another two weeks will be used for the liquidation and dissolution of the corporation. As a corporate entity, Clutter Control Corporation shall be a stock corporation. Its authorized capital stock is P 432,000.00 divided into 86,400 shares with a par value of P 5.00 per share. As one of the legal requirements in forming a corporation, 25% of the said amount or P 108,000.00 must be subscribed by the incorporators. Furthermore, each incorporator must pay 25% of the subscribed capital stock, which is equivalent to P 27,000.00. Thus, each incorporator must contribute P 3,000.00 as the paid-up capital. Clutter Control Corporation will adopt a formal organizational structure wherein a proper chain of command shall be followed. This will enable the proponents to observe proper protocol. This way, duties and responsibilities of each manager, officer and subordinate will also be clearly defined. Clutter Control Corporation has a projected sales of P 127,400.00 and a projected cost of goods sold of P 75,075.12. A net income after tax of P 42,726.05 will be generated after the corporate existence of 10 months. The Gross Profit Margin computed is 41.07%, the Operating Profit Margin is 7.35% and the Net Return Profit Margin is 33.54%. The forecasted Return on Equity is 61.28% and the Return on Assets/Investment is 61.28% also since no liabilities shall be incurred during the corporation's term of existence. Clutter Control Corporation shall patronize locally made raw materials, thus providing new business opportunities for local suppliers. This will help increase sales of local suppliers and contribute to our economy. Furthermore, the corporation shall also pay taxes at the end of Practicum 3. This will help the proponents engage in doing honest business transactions. They will also be trained in handling management-labor relationships, giving them the chance to develop their interpersonal skills.