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Assumptions: 1. 2. 3. 4. 5. 6.

7. 8. 9.

10. 11. 12. 13. 14. 15. 16.

Life of machines in years = 15 years. Total working days per year (season) = 200 days/year. Total working hours per day = 16 hours/day (Two shifts). Depreciation cost of machine = @ 10 % of initial cost per year. Rate of interest on capital investment = @ 12 % of initial cost per year. Housing, Insurance and other miscellaneous expenditure = @ 1 % of initial cost per year. Repair and Maintenance on machine = @ 2 % of initial cost per year. Electrical charges = Rs 5.00/unit (Average). Labour charges = Rs 100.00/day (For skilled labour). = Rs 50.00/day (For unskilled labour). Cold storage rent = Rs 2500.00/year(Season i.e. 49 days) Time required to pack 1400 g sapota = 5 minutes. Bavistin used for the pretreatment of 129.60 kg sapota = 4 g. Cost of packaging material = Rs.110/kg Energy consumption for packing of sapota = 2.5 unit Quantity of sapota packaging/h =16.8 kg Cost of gas for packaging of 129.6 kg sapota =Rs. 400/ (Rs. 300 for N2, Rs.40 for O2, Rs. 60 for CO2

3.6.2: Cost analysis The cost analysis was carried out as per the assumptions described in the section 3.6.1. The cost of packaging of 1 kg mango is reported. The mango season starts form mid of April and lasts in to mid of July. Out of the 90 days period, in the first 30 days all the mangoes are consumed in the market and in the next 60 days due to excess production, preservation may be beneficial. During the peak production period sufficient quantities of mangoes are available. So the packaging unit can be operated in two shifts each of 8 hours in a day. Initial cost of vacuum packaging machine was 97,000.00 Rs. The movable vacuum packaging machine required not more

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than 0.095 m3 space for the working. The vacuum packaging machine was fully automatic therefore the cost of repair and maintenance is likely to be less. The cost of 1 kg 100 gauge polyethylene bags is Rs. 65.00, which contain four hundred numbers of bags. Energy consumption for 1 hour operation was observed to be 1.125 units. For the smooth operation of the machine 2 skilled and for the handling of mangoes before and after packaging another 2 unskilled labours were required for two shifts. As per our assumption no 11 one can packed about 80 mangoes in an hour. It means in one hour one can packed 20 kg mangoes.

APPENDIX : J

1. Fixed cost. The fixed cost included following costs. (a) Depreciation cost of (Rs/h) MAP system: (Initial Cost of machine - Final cost of machine) D = -------------------------------------------------------------------Life of machine x Working hours per year i.e. ( 990000 - 99000 ) D = ----------------------------- = 18.5 Rs/h 15 x 3200 (b) Interest on the machine cost (Rs/h): Rate of interest I = Average cost of machine x ----------------------------------Working hours per year Where, Initial Cost + Final cost of machine of machine Average cost of machine = --------------------------------------2 ( 990000 + 99000) i.e. Average cost of machine = ---------------------- = 198000 2 0.12 I = 198000 x ---------- = 7.4 Rs/h 3200

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(c) Housing, Insurance and other miscellaneous expenditure (Rs/h): Initial cost of machine x 0.01 Him = -----------------------------------------Working hour per year 990000 x 0.01 Him = -------------------- = 3.09 Rs/h 3200

i.e.

Total fixed cost = (a) +(b) + (c) = 18.5+ 7.4+ 3.09= 28.99 Rs/h 2. Variable (operating) cost: (a) Repair and maintenance of machine (Rs/h): Initial cost of machine x 0.02 Rm = -----------------------------------------Working hour per year 990000 x 0.02 Rm = -------------------- = 6.18 Rs/h 3200

i.e.

(b)The cost of polyethylene bags (Rs/h): P = Cost of four polyethylene bag x Quantity of sapota packed in an hour P = 0.25 x 4 x 16.8 = 16.8 Rs/h

i.e.

(c) Cost of gas: Cost of gas for 129.6 kg of sapota packaging =Rs. 400 Cost of gas for 16.8 kg of sapota packaging =Rs. 48.61 (For 1 h) (d) Operating cost of MAP system (Rs/h): Ovp= Rate of electrical charges x Power consumption of machine in unit Ovp = 5 x 2.5 = 12.5 Rs/h

i.e.

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(f) Wages (Rs/h): Labour charges per day in one shift W = --------------------------------------------Working hour per day in one shift ( 100 + 60 ) W = ----------------- = 20.0 Rs/h 8

i.e.

(g) Other costs (Rs/h): Oc = Cost of Chemicals used per quantity of fruits x Quantity of Fruits packed in hour Rate of bavistin: Rs.63/100 g ( 4 g/20 lit for 129.6 kg used) i.e. Oc = 2.52 x 16.8/129.6 = 0.32 Rs/h

(h) Rent of cold storage (Rs/h): Rent of storage per season R = --------------------------------------No of hours per season i.e. 2500 R = --------------- = 4.25 Rs/h 588

Total variable cost = (a) + (b)+ (c) + (d)+(e) +(f) +(g) +(h) =6.18+16.80+48.61+12.5+20.0+0.32+4.25 = 108.66 Rs/h 3. Total cost (Rs./h): Total cost of developed technique = Fixed cost + Variable cost = 28.99 + 108.66 = 137.65 Rs/h Cost of packaging for 16.8 kg fruits = Total cost of developed technique

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= 137.65 Rs Note: In one hour 16.8 kg fruits can be packed. Cost of packaging for 16.8 kg fruits Cost of packaging per kg of fruits = ----------------------------------------kg of fruits packed per hour 137.65 = -------------16.8 = 7.59 Rs/kg of fruits

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