International Journal of Applied Research
Vol. 2, Issue 1, Part H (2016)
An economic analysis of chicken nuggets processing unit
The study has analysed the cost, returns and feasibility of chicken nuggets production on different categories of processing units. Simple benefit-cost analysis, break-even level, project evaluation techniques have been used to draw the inferences. The results indicated that the cost of production of nuggets was highest on small units (Rs.364.61/kg) compared to medium and large scale units(354.9 and 306.48 per kg). All the processing units are found to be economically feasible with NPV of Rs. 7.76, 39.88 and 92.31 lakhs and IRR of 36%,47% and 71% for small, medium and large scale units respectively. B-C ratio was estimated as 1.52, 1.75 and 2.23 with payback period of 3.17, 2.78 and 2.19years for small, medium and large scale units respectively. Economies of scale is evident form all perspectives like production costs, profits, discounting measures and breakeven point. Sensitivity analysis showed that variable costs and selling price had more impact on profitability and viability of processing plants.
How to cite this article:
K Varalakshmi. An economic analysis of chicken nuggets processing unit. International Journal of Applied Research. 2016; 2(1): 507-516.