Economic Feasibility Analysis of a Semi-Automatic Chitosan Stirring Machine Prototype for Community Enterprise

Abstract

This research aimed to: 1) analyze costs and revenues, 2) analyze break-even point and payback period, 3) analyze financial returns from a prototype semi-automatic chitosan stirring machine for community use, and 4) analyze economic feasibility of a semi-automatic chitosan stirring machine prototype for community enterprise. The research instruments consisted of 1) recording tables for fixed costs in developing the chitosan stirring machine, 2) recording tables for variable costs per production cycle, and 3) data collection forms for revenue per unit in chitosan solution production. The data analysis employed descriptive statistics, presenting results in percentage form, cost-revenue analysis, break-even analysis, payback period analysis, and economic feasibility analysis.

          The research findings revealed that: 1) The cost and revenue analysis of the chitosan stirring machine investment showed a fixed cost of 35,000 baht, with annual depreciation of 7,000 baht or 9.72 baht per production cycle, calculated based on a 5-year service life. The variable cost per production cycle was 1,127 baht, with each cycle producing 19 liters of chitosan solution sold at 200 baht per liter, generating revenue of 3,800 baht per cycle.
2) The break-even and payback period analysis indicated that the chitosan stirring machine requires 14 production cycles to reach the break-even point. Each cycle takes 2 hours, allowing for 3 cycles per day, with investment recovery achieved within 5 days. 3) The financial return analysis showed that each production cycle generates a net profit of 2,663.28 baht, translating to daily profits of 7,989.84 baht and monthly profits of 159,796.80 baht, with a gross profit margin of approximately 70%. 4) Economic feasibility analysis yielded a benefit-to-cost ratio of 3.31, representing high economic viability. Therefore, developing a prototype semi-automatic chitosan stirring machine for community enterprises represents a suitable advancement in agricultural machinery technology that improves efficiency in the agricultural industry.

        The research findings revealed that: 1) The cost and revenue analysis of the chitosan stirring machine investment showed a fixed cost of 35,000 baht, with annual depreciation of 7,000 baht or 9.72 baht per production cycle, calculated based on a 5-year service life. The variable cost per production cycle was 1,127 baht, with each cycle producing 19 liters of chitosan solution sold at 200 baht per liter, generating revenue of 3,800 baht per cycle.
2) The break-even and payback period analysis indicated that the chitosan stirring machine requires 14 production cycles to reach the break-even point. Each cycle takes 2 hours, allowing for 3 cycles per day, with investment recovery achieved within 5days. 3) The financial return analysis showed that each production cycle generates a net profit of 2,663.28 baht, translating to daily profits of 7,989.84 baht and monthly profits of 159,796.80 baht, with a gross profit margin of approximately 70%.