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Appendix C

The document provides a cost analysis for a depulping and dehulling machine. It includes a breakdown of expenses, determination of operating costs, total fixed costs, total variable costs, total costs, operating costs, and return on investment calculation. The total investment cost is PHP 43,000. The total operating cost per day is PHP 1,140.80. The return on investment is estimated to be 2.92 days based on an expected daily savings of PHP 14,751 from selling depulped and dehulled coffee.

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Pat Sulaiman
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48 views

Appendix C

The document provides a cost analysis for a depulping and dehulling machine. It includes a breakdown of expenses, determination of operating costs, total fixed costs, total variable costs, total costs, operating costs, and return on investment calculation. The total investment cost is PHP 43,000. The total operating cost per day is PHP 1,140.80. The return on investment is estimated to be 2.92 days based on an expected daily savings of PHP 14,751 from selling depulped and dehulled coffee.

Uploaded by

Pat Sulaiman
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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69

APPENDIX C

Cost Analysis

Table 6. Breakdown of Expenses

Total
Unit Cost
Cost
Materials Specifications Quantity

(Php) (Php)

45mm x 45mm x
Angle Iron 9 550 4,950
6.25mm mild steel

Metal Sheet Guage 16 4 960 3,840

Welding
6011 and 6013 1kg 290 290
Electrode

A - 75 1 210 210

Belt B - 68 1 230 230

B - 85 1 290 290

M13

7/16, 30 50 1500
Bolt and Nut
, 2 23 55 1265

3/8, 25 45 1125

Cold Rolled Steel


Shaft
C1117

1 1 1,400 1,400

1 840 840

Flat bar 22mm mild steel 1 490 490


70

#205 , 1 6 570 3420


Pillow Block
Bearing #204 , 3 330 990

Torsional
3/4" , 3" 2 310 310
Spring

Labor 4 250 10,000

Transportation 500 500

Miscellaneous 400 400

Sieve No. 22 2 2000 4000

5 hp, 1, 1740 RPM,


Electric Motor 1 11, 000 80
60 Hz

10" x 1B x 1" 2 760 1520

4" x 1B x 3/4" 1 410 410


Pulley
3" x 1B x 1" 1 335 335

4" x 3B x 1.5" 1 685 685

Lubricant Multipurpose Grease 10 40 40

Paint Triton 6L 280 1680

B.I. Pipe 4" x 20" 1 2,200 2,200

TOTAL 43,000

Determination of Operating Cost

a. Straight line method at 10% salvage value and 10 years life span

b. 24% of IC
71

c. 10% of IC

d. 3% of IC

e. Computed based on the operating capacity of 39.83 kg/hr at 1 hour per day operation.

Depreciation (Straight Line)


0.1
D= 365
Where: D depreciation, P/day

43,0000.1( 43,000)
D= IC investment cost, P
365( 5)

D= 21.20 P/day LS life span, years

Interest on Investment

I= Where: I interest on investment, P/day
365

0.143,000
I= 365
Ri interest rate, 0.1/year

I = 11.78 P/day IC investment cost, P

Repair and Maintenance



RM = 365
Where: RM repair and maintenance,

P/day
0.05 43,000
RM = 365
Rrm repair and maintenance rate,

0.05/year

RM = 5.89 P/day IC investment cost, P

Insurance

i= 365
Where: i insurance, P/day

0.05 43,000
i= 365
Ri insurance rate, 0.05/year
72

i = 5.89 P/day IC investment cost, P

Labor Cost

L = Where: L Labor, P/day

L = 4 250 NL number laborers

L = 1000 P/day Sa salary, P/day

Electricity Cost

E = W f Cf Where: E electricity cost, P/day

E = 10.11 9.5 Wf energy used, kwh

E = 96.04 P/day Cf cost of electricity, P/kwh

Investment Cost

IC = EC + PMC Where: IC investment cost, P

IC = 32,000 + 11,000 EC equipment cost, P

IC = 43,000 PMC prime mover cost, P

Total Fixed Cost

FCt = D + I + RM + i Where: FCt total fixed cost, P/day

FCt = 21.20 + 11.78 + 5.89 + 5.89 D depreciation, P/day

FCt = 44.76 I interest on investment, P/day

RM repair and maintenance, P/day

i insurance, P/day
73

Total Variable Cost

VCt = L + E Where: VCt total variable cost, P/day

VCt= 1000 + 96.04 L labor cost, P/day

VCt = 1096.04 E electricity cost, P/day

Total Cost

TC = FCt+ VCt Where: TC total cost, P/day

TC = 44.76 + 1096.04 FCt total fixed cost, P/day

TC = 1140.8 VCt total variable cost, P/day

Operating Cost

Depulping Machine

OC1 = Where: OC operating cost, P/ha or P/kg

1140.8
OC1 = 447
TC total cost, P/day

OC1 = 2.55 C capacity, Ha/day or kg/day (3hrs operating

time)

Dehulling Machine

OC2 =

1140.8
OC2 = 119.49

OC2 = 9.54

OCT = OC1 + OC2

OCT = 2.55 + 9.54


74

OCT = 12.09

Return of Investment

Savings per day = Difference in Price (Php/kg) x Capacity (kg/hr) x Operating time

(hr/day)

Where: Difference in price = Nestle Price Intermediate Coffee Buyers Price

= 108 Php/kilo 75 Php/kilo

Savings per day = 33 x 149 x 3

Savings per day =Php 14, 751

+ +
ROI =

43,000+80+12.09
ROI = 14,751

ROI = 2. 92 days

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