Vol 7 No 2 (2020)
Articles

Feasibility and Economic Analysis of Bread Production in Gashua, Yobe State, Nigeria

Adekoyeni Oludare Olumuyiwa
Department of Home Science and Management, Federal University Gashua, Yobe, Nigeria.
Abdulhamid Ellawule
Department of Accounting, Federal University Gashua, Yobe, Nigeria.
Published July 30, 2020
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139 Views | 49 Downloads
Keywords
  • Feasibility study, Economic analysis, Bakery, Depreciation, Cash flow, Breakeven point.
Citations
How to Cite
Olumuyiwa, A. O., & Ellawule, A. (2020). Feasibility and Economic Analysis of Bread Production in Gashua, Yobe State, Nigeria. Agriculture and Food Sciences Research, 7(2). https://doi.org/10.20448/journal.512.2020.72.125.130

Abstract

The feasibility and economic analysis of bread production for a modern cottage bread production business in Gashua, Yobe State was analysed. This assessment involved analysis of the project to determine the viability, cost, and benefits associated with a bakery project before financial resources are allocated. The capital investment for the bakery establishment was estimated at ₦10,316,303.00 with maximum capacity to utilise 10 bags of flour (50 kg) per day. The production capacity is to increase at 50, 60, 75, 85 and 90 mi efficiency for five years respectively. The cost of production ranged between ₦30,776,550 to 45,059,946.85 while the profit after tax ranged from ₦12,783,071 to 18,878,298.79 for five years. The non current asset schedule annual depreciation was estimated at #655,000. The cash flow and breakeven point were at ₦41,395,161 and 27,705 respectively. Bakery business in Gashua is worthwhile for entrepreneur as profit making venture.

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