Estimates for Dairy Project

Sl. No Fixed Cost

A
Dairy Infrastrucute Development
Cross- Bred Cow with milch capacity of 6 Lts for 300
1 days laction period
2 Transportation of cross breed cows

Feeders and waterers for quality feeding & water

3 drinking (1 feeder and 1 waterer per family)
4 Cattle Shed
5 Vermicomposting Pit
6 Training on Animal Management
Sub Total
Variable Cost
1 Feed Cost
2 Fodder
3 Animal Insurance @5.75 % of animal cost
4 Medicine
5 Vaccine
6 Veterinary Doctor Fees
7 Earthworm for Vermicomposting
8 Depreciation in Machinery
Sub Total

C
1
2
3
4

Revenue
Milk Sale
Vermicompost
Calf Sale
Earthworm Sale
Total

Unit

Unit Cost (Rs)

Milch animal
Lump sum

20,000
1,000

Lump sum
Lump sum
Lump sum

500
15,000
4,000

Perday
Perday
Percentage
Per annum
Per annum
Per annum
Per annum
Per annum

Litres
KG
Unit
KG

365
365
0
600
200
600
500
0

20
5
1,500
475

No of Units Total Cost (Rs)

2
2

40,000
2,000

1
1
1

500
15,000
4,000
2,000
63,500

60
30
2
1
1
1
2

21,900
10,950
2,300
600
200
600
1,000
1,700
39,250

3,600
2,500
1
6

72,000
11,875
1,500
2,850
88,225

Year Fixed Cost

Variable Cost
1
63,500
39,250
2

39,250

39,250

39,250

5
63,500
A

39,250
196,250
B

Benefit-Cost Ratio: (Total Benefits/ Total Cost)

Return on Investment (RoI)
Payback Period

Break Even Point

Price of Milk per litre (p)
Variable Cost (v)
Total fixed cost in the business (FC)
Break Even Point in Sales Units (x)
Break Even Point in Rupees

Cost (Fixed + Variable)Revenue

Income/ Profit Cumulative income
102,750
88,225
(14,525)
(14,525)
39,250

88,225

48,975

34,450

39,250

88,225

48,975

83,425

39,250

88,225

48,975

132,400

39,250
259,750

88,225
441,125
D

48,975
181,375
E

181,375
417,125

: (Total Benefits/ Total Cost)

ment (RoI)

e business (FC)

Sales Units (x)

Formula
1.70 D/C
69.8% (D-C)/C
expressed
%
10,000)/next
yearinincome
: cell F4
1.30
(15,000))
Even income across years: [(Fixed cost + Variable Cost)/ Annual Incom

20
10.90
63,500
6,980
139,603

FC/p-v
x*p

Discounting Factor (10%) Present Value (PV)

1.00
(14,525)
0.91

44,567

0.83

40,649

0.75

36,731

0.68
G

33,303
140,726 NPV
H
I

Consider it when the ratio is more than 1

Only is
consider
a positive
RoIexpected before an
the amount
of time
investment is returned as a form of income
Fixed cost + Variable Cost)/ Annual Income]