ECONOMICS

ECONOMICS:

A.    CAPITAL COST

(i)                 Land                      = Rs. 1,00,000

(ii)               Ponds                    = Rs.    80,000

(iii)             Pipes                     = Rs.    20,000

(iv)             Diesel engine        = Rs.   25,000

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            Total capital cost           = Rs. 2,25,000

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b.      VARIABLE COST:

(i)                 Lime 150 kg  x Rs. 5                              =     750

(ii)               Manure 8000 kg x Rs. 1                         =   8,000

(iii)             Urea 200 kg x Rs. 10                             =   2,000

(iv)             Super phosphate                                    =   3,000

(v)               Potash 40 kg x Rs. 8                              =      320

(vi)             Fingerlings                                              =   1,500

(vii)           Feed cost (3000 kg x Rs 20)                         = 60,000

(viii)         Labour cost                                             =   1,000

(ix)             Drugs                                                      =   1,000

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             Total variable cost               =Rs.77, 570

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c.       FIXED COST:

(1)   Depreciation

(a)    Pipes @ 20% on Rs. 20,000                  = Rs.4,000

(b)   Diesel engine @ 10% on Rs. 25,000     =       2,500

(2)   Interest on capital

(a)    Cost @ 10% on Rs. 2,25,000                 =     22,500

(3)   Interest on variable cost

Cost @ 12% on Rs. 17570          = Rs.  2,107

(4)   Repairs and maintenance                            = Rs.15,000

(5)   Taxes                                                           =                0

(6)    Insurance                                                    =  Rs.  2,000 

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                                     Total Fixed Cost  = Rs. 48,107

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D) Income

       Yield = 2000 kg x Rs.100 =Rs.  2, 00,000

E) Total cost = Fixed cost + Variable cost

      Rs. (77570 + 48107) = Rs.1,25, 677

F) Profit

      Rs. 200000 – Rs. 65,677 =Rs. 1, 36,323

G) Cost benefit ratio

     On total variable cost = 2.28

     On total cost               = 1.59

Last modified: Tuesday, 22 November 2011, 5:40 AM