It is desired to analyze the profitability of the flour factory with a capacity of...
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Accounting
It is desired to analyze the profitability of the flour factory with a capacity of 50 tons of wheat/day with an investment cost of 12.000.000 TL. Wheat comes to the factory and is processed into flour and bran. Flour production efficiency is 65%. The maintenance and repair expenses of the enterprise are determined as 180.000 TL/year, unexpected expenses are 165.000 TL/year, the fixed tax total is 72.000 TL/year and personnel expenses are 280.000 TL/year. The production cost is calculated as 0.70 TL/kg of raw material. The business operates 300 days a year and 10 hours a day. Raw material price is 1.85 TL/kg, flour price is 5.4 TL/kg, bran price is 0.70 TL/kg, wheat moisture content is 12%, flour and bran moisture content is 14.5%,
a- What is the minimum amount of raw material that must be processed per hour in order for the business to make a profit?
b- What is the annual total profit/loss amount in case the factory works at full capacity?
The depreciation rate of the factory should be taken on average 15%.
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