Profitability Analysis of Sachet Table Water Production in Gombe North Senatorial Zone, Gombe State, Nigeria
- January 27, 2021
- Posted by: RSIS Team
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue XII, December 2020 | ISSN 2454–6186
Hamidu, K.1*, Mohammed, I.2, Danwanka, H.A.3, Mohammed, R.4, Saleh, A.5
1,5Department of Agricultural Economics and Extension, Faculty of Agriculture, Federal University Kashere, Gombe State – Nigeria
2,3,4 Department of Agricultural Economics and Extension, Faculty of Agriculture and Agricultural Technology, Abubakar Tafawa Balewa University Bauchi, Bauchi State- Nigeria
Corresponding Author*
ABSTRACT
The study examined the profitability analysis of sachet table water production in Gombe North senatorial zone, Gombe state, Nigeria. Multistage sampling technique was used. Gombe North sachet table water production enterprises were purposively selected. In the study area 45 production enterprises were selected. The data were analyzed using enterprise budget model to analyze the gross margin, profit, gross ratio, operating ratio, fixed ratio, ratio of gross margin to variable cost, ratio of gross margin to fixed cost and return per naira invested. Gross margin of N288,263,926.00, profit ofN 286,642,401.00, gross ratio of 0.0111, operating ratio of 0.0056, fixed ratio of 0.0056, ratio of gross margin to variable cost of 178.69, ratio of gross margin to fixed cost of 177.77 and return per capital invested of 89.63 were released. Sachet table water production was a profitable venture. The citizens of Gombe North senatorial zone should engage in sachet table water production in order to increase their standard of living.
Keywords: Analysis, Production, Profitability, Sachet and Water
INTRODUCTION
Water is economic good, rapid urbanization in human settlements in developing countries leads to experiences like lack of available fresh water supplies. Interdependence between water availability and development is exemplified by the link between water and poverty. Poverty is a leading factor to inadequate access to water and sanitation is Africa. Inadequate access to safe water and sanitation resulted to high incidence of communicable diseases that reduce vitality and economic productivity on the continent (Coster and Otufal, 2014).
