A feasibility study on Boxers Unlimited Corporation

• Main Authors: Alicer, Nadia Nimfa, Arevalo, Devie, Chua, Minette Christina, Cuison, Bryant William, De Guzman, Michele Darlene, Fernando, Agnes, Francisco, Jeronne, Liao, Eldridge Kester, Piczon, Eloisa Wilmina, Rubina, Karen Anne
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17136
• Institution: De La Salle University

Boxers Unlimited Corporation is a manufacturing firm of In & Out boxer shorts with its office located at 1791 E. Rodriguez Avenue, Cubao, Quezon City. The plant location was chosen due to its accessibility to transportation utilities and availability of equipment. The corporate name is based on the premier product offered by the company. The name was also chosen because of its flexibility in diversifying to other product lines. The use of boxer shorts is not limited as a sleepwear, but can be used as an undergarment, sportswear, and comfortable house clothes. the product In & Out is a unique boxer shorts that is reversible with different designs on each side. Common boxer shorts would normally offer only one design per pair. The proponents would like to use this innovative feature as its advantage over other competitors. The proponents came up with this kind of idea because of ease of manufacture, availability of materials, and existence of possible suppliers. The proponents have already learned the skills required for the production of In & Out. Another reason for proposing the product was to meet the demand for an affordable, practical, and fashionable item of clothing. The corporation's target markets are the dormitory occupants of Immaculate Conception Ladies Dormitory, residents of Lagro Subdivision, and students with ID number 97 of the College of Business and Economics of De La Salle University. These areas were chosen based on the accessibility of the proponents in getting the sampling frame needed in determining the market demand, market preference, and market acceptance. The proponents set a price level that is acceptable to the public and yet profitable to the proponents. The preferences of the target market were also taken into consideration in arriving at the desired selling price of P 160.00. The proponents would be using personal selling and consignment with tiangge stall owners aside from selling at practicum bazaars held in De La Salle University as the places for distribution. For promotional purposes, proponents shall use word of mouth, fliers, and posters. Survey results showed that there would be an expected demand of 232 units per month, market share of 36.21% and Gross Market Acceptability Rate (GMAR) of 85.93%. The cost per unit of production of P 109.31 for small, P 115.84 for medium, and P 122.39 for large sizes, and the break-even point is 15 units per month. Based on the time and motion study carried out, the total production capacity per production day is 21 units, thus enabling the proponents to recover the cost and at the same time gain profit. The form of ownership of the firm is a corporation due to its organizational and legal advantages. The term of existence of the firm will be from October of 2000 to July of 2001. During this ten-month period the corporation will do all corporate activities from incorporation to dissolution. This term of existence is enough for the proponents to meet its objective of proving that the company is profitable. To conform to the needed requirements for registration, the proponents will invest P 1,600 each. In & Out has an authorized capital stock of P 156,000.00 where P 64,000 are subscribed and P 16,000 are fully paid. In view of this objective, the financial study proves that the corporation will be profitable. This is supported by the different financial ratios such as Return on Investments (ROI) having a figure of 154.70%, Return on Sales (ROS) with 18.87% and Return on Equity (ROE) of 61.10%. Furthermore, a projected net income of P 24,752.64 will be realized at the end of the corporation's term, The corporation, if established, will create socio-economic concern by becoming a training ground for young entrepreneurs. With the positive results shown in the market, technical, management/legal, financial and socio-economic studies, the proponents are willing to pursue the proposed project, not only to produce profit, but also to promote economic and social causes. The consumers of the product will truly be benefited because of the product's innovativeness and affordability.