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    Cost and Return Analysis

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    Cherry Mae Claire Villanueva-Gomez
    The document analyzes the costs, returns, and profitability of corn production over one hectare of land. It details the material and labor costs, production costs, gross income, net income, and return on investment. The analysis found a 96.2% return on investment for corn production.

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    Cost and Return Analysis

    Uploaded by

    Cherry Mae Claire Villanueva-Gomez
    405 views3 pages
    The document analyzes the costs, returns, and profitability of corn production over one hectare of land. It details the material and labor costs, production costs, gross income, net income, and return on investment. The analysis found a 96.2% return on investment for corn production.

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    COMVAL

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    The document analyzes the costs, returns, and profitability of corn production over one hectare of land. It details the material and labor costs, production costs, gross income, net income, and return on investment. The analysis found a 96.2% return on investment for corn production.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    405 views3 pages

    Cost and Return Analysis

    Uploaded by

    Cherry Mae Claire Villanueva-Gomez
    The document analyzes the costs, returns, and profitability of corn production over one hectare of land. It details the material and labor costs, production costs, gross income, net income, and return on investment. The analysis found a 96.2% return on investment for corn production.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    You are on page 1of 3

    COST AND RETURN ANALYSIS

    Introduction:

    Corn is one of the most important crops in the Philippines. Large areas of the Philippines are
    being planted with corn due to good climatic condition. Corn farmers are planting several types of corn
    like yellow, white, waxy, sweet and baby corn. Yellow corn mainly used as ingredient in feeds and
    industrial products. White corn processed into grits is being consumed as food. Sweet and waxy corn are
    being cooked as vegetables and ingredient to our native delicacies.

    Learning Objectives:

    1. To be able to identify the costs, returns, profitability or loss per hectare


    2. To represents the value of the output from the farm.
    3. To measure the profitability including net return and return on capital infested in corn
    production.

    Time Frame:

    2-3 hours

    Materials:

     Record book
     Ball pen
     Calculator
     Manila paper

    Steps:

    1. Gathered the farm records/history.


    2. Consolidate the cash out/in flows.
    a. Material cost
    b. Labor cost
    3. Total the production costs (add the cost of materials and labor cost).
    4. Compute/Calculate the gross income (multiply the total kilogram of corn grains by price
    prevailing).
    5. Identify the return and investment (production cost divided by net income and multiply by
    100.

    Some suggested Questions:

    1. What is the importance’s of identifying the cost, returns, Profitability or Loss per hectare?
    2. How to measures the profitability including net return and return on capital invested?
    Table. 1. Material Cost
    Materials/Equipments Amount(Php) Quantity Total(Php)

    Seeds(OPV@20 kg/ha) 1,120.00 per sack 1 bag 1,120.00


    Bio-N (Inoculant) 60.00 per pack 7 packs 420.00
    Vermicast(organic) 250.00 per bag 10 bags 2,500.00
    Molasses 60 per liter 4 liters 240.00
    Trichogramma Evans 2 per card@ 2 times Application 100 cards 200.00
    Sacks 15 per sack 75 sacks 1125.00
    Tie Box 60.00 1 roll 60.00
    TOTAL 8,165.00

    Table. 2: Labor Cost


    Items MAD MD/Tractor Quantity No. of Application Total(Php)

    Soil Analysis 250.00


    Land Preparation
     Plowing 350.00 7 2 4,900.00
     Harrowing 350.00 5 1 1,750.00
     Furrowing 350.00 4 1 1,400.00
    Basal Application 540.00 Contractual 540.00
    Planting 540.00 Contractual 540.00
    Concoction 180.00 2 1 360.00
    Application(2nd Week up
    to 8 weeks)
    Off-Barring 350.00 4 1 1,400.00
    Organic Fertilization 180.00 3 2 1,800.00
    Hilling-Up 350.00 3 1 1050.00
    Weeding 180.00 5 1 900.00
    Harvesting 180.00 5 1 900.00
    Hauling 350.00 3 1 1,050.00
    Shelling@36.00/Sacks 75 1 2,700.00
    Drying 180.00 540.00
    Total 19,360.00
    Table 3. Production Cost
    Item Amount (Php) Total (Php)

    Labor Cost 19,360.00 19,360.00


    Material Cost 8,165.00 8,165.00

    Total 26,525.00

    Gross Income

    - 75 Bags/Sacks per hectare @ 60 kg per sack

    - 4,500 kls @ 12.00 per kilo

    =P 54,000.00

    Net Income

    Gross Income – Production Cot

    = P54,000.00 – P 27,525.00

    = P 26,475.00

    Return of Investment

    ROI = Net Income (P) X 100


    Production Cost (P)

    = P 26,475.00 X 100
    P 27,525.00

    ROI= 96.2 %

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