A feasibility study on 'nick of time' (TimeZone Corporation)

• Main Authors: Choi, Cheliza, De Vera, Vinah Vanessa, Duque, Sheila Marie, Espinosa, Noemi, Garcia, Maria Veronica, Laurena, Carmina Marie, Licup, Wilmer, So, Shirley, Tan, Mark
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17043
• Institution: De La Salle University

Time Zone Incorporated is a profit corporation that is engages in the manufacturing and selling of Nick of Time. The general objective of this study is to determine the feasibility and viability of the product, which is a circular glass-etched wall clock measuring 9 3/4 inches in diameter and 1 1/4 inch thick. It also comes in different colors and designs. The proponents were able to determine the preferences and the willingness of the respondents to buy the product using a self-constructed survey questionnaire. The said survey questionnaire contains a total of 21 questions concerning the product and other set of questions such as profile of the respondents and the like. The proponents utilized systematic random sampling and simple random sampling in choosing the sample for the study, giving the population an equal chance of being selected as respondents. The primary market of this study are households and the secondary market includes the relatives, working individuals, companies and other people who have the need and are willing to purchase but were not included in the population. Bases from the results of the survey, the adjusted gross market acceptability rate of Nick of Time by using a 25% conservatism rate was determined to be 62.14% and the annual consumption rate is 1.42. TimeZone Incorporated's plant site is located at 1453-A G. Araneta Avenue, San Francisco Del Monte, Quezon City. A rental fee of P 300 per month will be paid to the owner, for the use of the venue inclusive the use of facilities and utilities. The proponents will use the Assembly Line method in carrying out their production process. There is a certain task in the manufacturing process that would require two laborers to carry out the task at the same time, thus using Job Shop method is not applicable. An average of 25 units of Nick of Time will be produced per production day. The total production cost for producing one Nick of Time is P 187.89, priced at P 275.00 as the product's selling price in the market. TimeZone Incorporated will be operating for a period of 10 months, which will start on October 1999 and will end on July 2000. In this span of time, the corporation will engage into contracts, manufacturing and selling of the products, and other business transactions. The ist two weeks will be allotted for registration. A total of 36 weeks will be allotted for production and the remaining two weeks will be for liquidation and dissolution of the corporation. For Timezone Incorporated, the authorized capital stock will be P 432,000 with a par value of P 10 per share, a total of 43,200 shares. As one of the legal requirements in forming a corporation, 25% of the said amount of P 108,000 must be subscribed by the incorporators. Each incorporator must pay 25% of the subscribed capital stock, which is equivalent to P 27,000.00. Thus, each incorporator must contribute P 3000 as Paid-in Capital. TimeZone Incorporated, has a projected sales of P 280,500.00 and a projected cost of goods sold of P 280,500.00. At the end of the corporations' operation, it is expected to have a net profit after tax of P 75,038.35. Based from the following assumptions and figures found in the financial study, the gross profit margin is 33.95%, the ROA and the Return o Equity is 73.54%, and the Return on Sales is 26.75%. As determined by the socio-economic study TimeZone Incorporators will be socially responsible. It gives emphasis on the welfare of the individual inside an organization & community as well. It will also ensure that it will utilize quality raw materials, which will help improve the Philippine Economy and will be able to help generate employment. Time Zone Incorporated will also practice proper waste disposal. Through conducting a simulation process for registering, liquidating and dissolution of the company, the proponent will be able to learn the necessary legal and financial requirements to be observed such as the practice of paying taxes accurately and promptly.