Profitability Analysis Of Sachet Table Water Production In Gombe South Senetorial Zone, Gombe State, Nigeria
- May 6, 2021
- Posted by: rsispostadmin
- Categories: Agriculture, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IV, April 2021 | ISSN 2454–6186
Hamidu, K.1, Mohammed, I.2, Iroegbute, U. K.3, Ahmad, M. E.4 and Hassan, A5.
1Department of Agricultural Economics and Extension, Faculty of Agriculture, Federal University Kashere, P.M.B 0182, Gombe State – Nigeria.
2Department of Agricultural Economics and Extension, Faculty of Agriculture and Agricultural Technology, Abubakar Tafawa Balewa University Bauchi,
P.M.B.0248, Bauchi State- Nigeria.
ABSTRACT
This study examined the profitability analysis of sachet table water production in Gombe South senatorial zone, Gombe state, Nigeria. Multistage sampling technique was used. Gombe South sachet table water production enterprises were purposively selected. In the study area 15 production enterprises were selected. The data were analyzed using enterprise budget model to analyze the gross margin, profit, gross ratio, operating ratio, fixed ratio, return per naira invested, the ratio of gross margin to fixed cost and ratio of gross margin to variable cost. Gross margin of N519,151,357, profit of N 516,398,522, gross ratio of 0.0106, operating ratio of 0.0053, fixed ratio of 0.0052, return per capital invested of 94.04, ratio of gross margin to fixed cost of 188.58 and ratio of gross margin to variable cost of 185.58 was released. The citizens of Gombe South senatorial zone should engage in sachet table water production because it is a profitable venture.
Keywords: Production, Profitability, Sachet, South, Table and Water
INTRODUCTION
The natural most abundant substance on the earth’s crust is water and its occupies about 70% of it (Anyamene and Ojiagu, 2014; Thliza, et al., 2015). Due to its natural abundance and because the protoplasm of many living cells contain about 80% water and most biochemical reactions which occur in the metabolism and growth of living cells involves water medium it is considered a universal solvent. Water is food, because food is any substance which when ingested through the mouth will nourish the body to sustain life (SPDC, 2017). Biologically water is a medium that exists in three forms either as solid, liquid and gas. Importance of ample water quantity for drinking and other purposes was apparent to our ancestors while an understanding of drinking water quality was not well known or documented. (Thlizaet al., 2015).
