Cost Analysis of Composting Machine

Particulars Machine/Amount

Purchase Price (P) 50,000.00

Salvage value (%) 10.00

n, years 10.00

R&M, % P/hr 10.00

rate of interest, % (based from

12.50
Agricultural Cooperative)

TIS, % 3.00

Labor cost, P/day 350.00

Number of operator 2.00

repair and maintenance (10% of IC) 10.00

Cost of Electricity (kW/hr) 10.00

Annual Hours, hr/year 768.00

Capacity, kg/hr 7.81

Capacity, kg/yr 6,000.00

A. Fixed Cost Items

Depreciation 4,500.00

Int on Inv 3,437.50

TIS 1,500.00

Total Annual FC,P/yr 9,437.50

B. Variable Costs

Labor 43.75

electric cost 10.00

repair and maintenance 6.51

Total VC, P/hr 60.26

Annual Cost 55,717.50

Cost of machine, peso/hr 9.29

cr @35% 12.54

cr @50% 18.80

BEP @35% 1,956.73

BEP @50% 850.89

Net income @35% 19,501.13

Net income @50% 57,110.44

Payback period@35% 2.56

Payback period@50% 0.88

BCR @35% 0.35

BCR @50% 1.03