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In partial fulfillment of the requirements for the

degree of Bachelor of Science in Accountancy. This study

entitled “Feasibility Study on establishing MLA Trucking

Services:Sand delivery in Cabanatuan City” prepared and

submitted by Nielson M. Mariano, Marvin N. Aquino, and Aileen

F. Lanzona has been examined and recommended for acceptance

and approval.

Professor Manuel B. Castillo, MBA

Research Adviser

Approved and graded by the Committee on Oral Defense

_________________________ ________________________
Member Member

Accepted and approved as partial fulfillment for the

Degree of Bachelor of Science in Accountancy

Dr. Maria Victoria M. Cruz

College of Business and Accountancy, Dean

Wesleyan University – Philippines

College of Business and Accountancy

Cushman Campus, Mabini Extension Cabanatuan City



Aquino, Marvin N.


Lanzona, Aileen F.


Mariano, Nielson M.




The researchers would like to express their profound

gratitude and appreciations to some people who became

instrumental for the completion of this research work as


MR. MANUEL B. CASTILLO, the researchers’ adviser who

greatly spent his time and efforts for the accomplishment of

this study,

MS. KATHLEEN ROSE L. YALUNG, who thoroughly examined the

research and made suggestions that improved this study,

FRIENDS, for their effort to help the researchers with

technical and other aspects throughout the study,


distributed confidential information regarding their

establishments which greatly helped and developed this study,

RESPONDENTS, who eagerly answered survey questionnaires

and entertained queries by the researchers,


cooperate and gave their effort to serve as the service of

the researchers throughout the period of interview and survey

with a very considerate fare,

PARENTS, who gave them deep moral and financial support,

for without them, this study is not possible to be completed,

And most of all,

TO GOD ALMIGHTY, the source of their strength and

knowledge to overcome the pressure during and after the study.




This piece of work entitled, HAPAG KAMAYAN: ISTORYANG

PINOY, is sincerely dedicated to our families who parted their

support throughout this study, to the faculty and staff of

the College of Business and Accountancy of Wesleyan

University – Philippines who guided us, and to Almighty God

whom lend us the patience to pursue and finally finish this


Wesleyan University – Philippines

College of Business and Accountancy

Cushman Campus, Mabini Extension Cabanatuan City


Title: A Feasibility study on

establishing MLA Trucking

Services:Sand delivery in

Cabanatuan City

Researchers: Aquino, Marvin N.

Lanzona, Aileen F.

Mariano, Nielson M.

Research Adviser: Manuel B. Castillo, MBA

School: Wesleyan University – Philippines

Degree: Bachelor of Science in Accountancy

Major: Accounting

Date of Defense: August 14,2018


The purpose of this study, entitled “MLA Trucking

Services:Sand delivery”, is to determine whether establishing

trucking services of this kind in Cabanatuan City would be

feasible in terms of profitability and viability.

The study sought to answer the following questions:

1. Marketing Aspect

a) Who will be the target market of the business?

b) Who will be the competitors?

c) What is the future total demand for the product?

d) What is the selling price set?

2. Management Aspect

a) What form of business organization will the proposed

project adapt?

b) What kind of organizational structure will the

proposed project adapt?

c) When is the start of business operation?

d) How many employees are needed for the project?

e) What kind of benefits will the employees receive?

3. Technical Aspect

a.) Is there a ready and appropriate location for the

proposed project?

b.) What are the fixed assets to be utilized?

c.) What are the necessary permits and licenses to put

up this project?

d.) What kind of tax should be applied for the


4. Financial Aspect

a.) How much capital is needed to support the proposed


b.) How will the proposed project be financed?

c.) What are the bases of the projected financial


d.) What will be the payback period and return on

investment of the project?

5. Socio-economic Aspect

a.) What are the social and economic benefits that the

society will get from the establishment of


Methods of research used

Descriptive method of research is applied in this study

in which the researcher studies the relationships of the

variables. This method was found to be the most applicable

method of research to use for this study because it gives a

better and clearer understanding of the phenomenon that may

contribute to the progress of the proposed project.

Techniques used in gathering data


The questionnaire method is one of the easiest methods

of gathering data. The questionnaires were distributed to the

respondents of this study to determine the feasibility and

viability of the proposed business. This technique was

prepared under the guidance of the researchers’ statistician.


The interview method is one of the most effective methods

of collecting original data. It can give complete information

needed in the study. The interviewers can be of great help to

the respondents in answering questions, which the respondents

could not understand.

The researchers conducted interviews with the personnel

in different companies and with the personnel in some existing

trucking business in order to obtain the fully detailed

information and data to be used in this study.


The observation method is utilized to gather data

regarding the attitudes, behavior, vales, and cultural

patterns of the respondents under investigation.

Some quarries were visited in order to directly observe

the business operations and procedures. These data served as

valuable inputs in facilitating and enhancing the preparation

of the research work.


The researchers used this technique to acquire helpful,

relevant and very accessible information related to the

study. They used different devices to access the internet

like smartphones and laptops. This was used in gathering

information about The Review of Related Literature and

Studies in Chapter two.

Library Technique.

The researchers went to the University’s library and

browsed some feasibility studies similar or related to the

proposed study in order to obtain some valid references on

which they will base their study.

Slovin’s Model.

The researchers used this technique in computing the number

of sample size of their respondents.

The number of sample size was derived using the formula:

𝑛 = 1+𝑁𝑒 2


n = sample size

N = population

E = margin of error

Marketing Aspect

Based on the survey conducted, the existing demand of

the population for the product offered by the proposed project

is remarkably high. From such results it is safe to affirm

that the problem concerning the demand is not about whether

the target market will be interested to acquire the services

offered by the proposed project, instead, it is all about how

much and how often will the target market avail of the cited

services. This is simply because the services and product

offered are of undeniable value to the society as they

constitute the major contributors in the development of the

infrastructure sector.

The services to be rendered will be priced according to

the current market value and the target market is composed of

hardware and contractors/engineers in Cabanatuan City.

Technical Aspect

Regarding the plant location, the proposed site of the

business would be located in a commercial space along

Circumferential Road in front of Loft Cafe, Cabanatuan City

while the trucks will parked in a commercial space/warehouse

situated in Kapitan Pepe, Cabanatuan City. Both commercial

spaces will be rented with a price of P36,000 and P35,000

respectively. Following the recent political controversy that

lead to the temporary suspension of quarries in Nueva Ecija,

the researchers took in consideration “Tolentino Quarry” in

San Jose Mitla, Porac Pampanga as an alternative source of

the sand to be delivered.

Management Aspect

This study will determine what would be the most suitable

form of business to employ for the proposed business sole

proprietorship, partnership and corporation, the power of

manpower required to achieve business goals, employee’s

perspective job description and qualification and scheme of

compensation to be employed. The owner will act, as a manager

who will be overseeing the daily operations of the restaurant

whom shall administer the business. Further 10 employees will

have their particular work done based on the tasks assigned

to them. There will be no overtime pay because there is a

work load schedule maximum of 8 hours for every employee.

Financial Aspect

MLA Trucking Services will be needing an accumulated

beginning capital of 6,146,077.47 which will yield a 38.24%

average annual return of investment and a investment recovery

of 2 years and 14 days or 2.04. The total project cost consist

of acquisition of property and equipment such as

building,trucks, furniture and fixture and other equipment

needed of the business. The total cost of the business will

be financed by the proprietor himself through savings and


Socio-Economic Aspect

The proposed business will create job opportunities that

will reduce the unemployment rate in the place where the

business will operate. On the other hand, the business and

the owner will pay taxes from their operation that will

benefit the government in its service in the community.

Potential Problems Encountered and Possible Solutions

The proposed business will several problems such as

traffic congestion, road blocks, truck bans, unexpected

(accidental) costs, shipping delays, fuel price increase and

above all, problematic drivers.


The following conclusions were drawn by the researchers

based on the findings considering different aspects of the


1. The proposed business shall adopt sole proprietorship

form of the business which is ideal for this type of

business where the owner has to be strictly involved in

the direction of the operations and oftentimes

personally involved in the field.

2. The manager/owner of the proposed business must have

the following qualities:ability to finance the

business, know how to manages accounts, know the quality

of the product to be provided and knowledge to maintain

good working environment.

The driver must posses the following:driver

licence,good moral, good physical condition, and know

how to drive different vehicles and at least 25 y/o but

not exceeding 45 y/o. Drivers and helpers are

compensated based on deliveries they made while the

managers is the sole responsible of the fair share of

the personnel. They will also receive 13th month pay and

other benefits like SSS and Phil health.The person

responsible for hiring personnel is the owner/manager

according to the qualification mentioned above.

3. The proposed business is required to have its own office

and a place where the trucks will be parked. The

business main office will be in a commercial space along

Circumferential Road in front of Loft Cafe,while the

parking space will be located in Kapitan Pepe,

Cabanatuan city. The business will employ two trucks

for operation.

4. The business’ target market are the hardwares and

contractors in Cabanatuan city who need gravel and sand.

5. The proposed business requires a capital of

6,146,077.47 which will be funded by the owner himself

that will be coming from his personal savings and loans.

6. The proposed business will face different problems such

as traffic congestion, road blocks, truck bans,

unexpected (accidental) costs, shipping delays, fuel

price increase, and etc.

7. Additional employment opportunities and benefits to the

government can be derived from the operation of the


8. The proposed business is feasible since there is a high

and continuous demand of gravel and sand. Furthermore

the business is viable because out of 116 population of

hardware and contractor 93.33% of it are acquiring

gravel and sand, and 88.89% will patronize the offered



Based on the conclusions the following are recommended:

1. The business should ensure the safety of its personnel

and quality service will be provided to customers.

2. The Financial source and allocation of funds should be

in accordance with the needs of operation.

3. The business should consider the possible expansion of

its operation.

4. Considering the declining market share cause by the

static demand capacity provided by the available

assets, the business shall consider the future

acquisition of additional trucks to be used in the

operations in order to increase the reported market