₦airaland Forum

ozornet:
Profitability Profile:
Let us assume that we crush 10 tons of good palm kernel nuts. Using the prevailing prices currently,
Palm kernel nuts ……N140,000 per ton
Palm kernel oil ………N440,000 per ton
Palm kernel cake………. N38,000 per ton
Palm kernel sludge…. .N90,000 per ton

Given the above prices, let us look at how it adds up.
The norm is that at 40% extraction rate, which is the convention in the industry, 2.5 tons of kernel nuts will yield one ton of palm kernel oil (PKO), 1.375 tons of palm kernel cake (PKC) and 0.1 of sludge (PKSL)

For 10 tons of good quality kernel nuts crushed

is this per sales quarter or day?


Yield:
PKO = 4 tons
PKC. = 5.5 tons
PKSL.= 0.4 tons


Profitability Calculation
Cost of raw materials 10 x 140,000 = N1,400,000

Aggregation of sales
Sale of PKO 4 x 440,000 = N1,760,000
Sale of PKC 5.5 x 38,000 N209,000
Sale of PKSL 0.4 x 90,000 = N36,000

Total Sales Revenue N2,005,000

Gross Profit 2,005,000 – 1,400,000 = N605,000
Let us roughly assume 50% Expenses N302,500

Net Profit N302,500