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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
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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
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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
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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