PARAMETERS FORMULA

Investment Cost, P IC
Salvage Value, P SV 10%IC
Machine useful life n
Depreciationm P/yr D (IC-SV)n
Interest of Investment, P/yr I ---
HTI, P/yr HTI 2.5%IC
Annual Fixed Cost, P/yr FC D+I+HTI
Fuel Cost, Ph/hr fc Fuel consumption (L/hr)*Cost/Li
Labor Cost, P/hr lc Labor (P)/operation hour
Repair and Maintenance, P/yr RM % IC/100 hr
Lubricants, P/yr L ___% of fuel costs
Variable Cost, P/hr VC fc+lc+RM+L
Annual digging costs, P/yr ADC +((FC)+A(VC/ca))
Digging cost, Ph/ha DC VC/Ca
Annual Cost,Ph/yr AC FC+A*VC/DC
BEP, ha/yr BEP FC/A + (1/DCa)*(VC+DCo)
Net Income Generated, Ph/yr NI (Co_ra-DCa)*Ca*OP
Payback Period, yr PBP (IC/AC)

Custom rate CosRatemax (Php20/25kg)*11.86MT^

^CL yield (2011- 2015)
CosRatemax 6.53MT/ha
yield average (2011-2015) from 6 top
producing region

NI (custom rate- digging cost)*Digging Capacity

Table 11. Cost of harvesting onions using the machine(HFG)

Particulars Hand Tractor Onion Harvester
Actual Values/Assumptions
Initial Cost (IC), PhP 87,100.00 45,000.00
Machine useful life, yr 10 5
Salvage value, % IC 10 10
Annual Hours of Use, hr/yr 200
Rate of Interest, % 12 12
Tax, insurance and shelter, %IC 3 3
R&M Cost, %IC/100 hr of use 2.8 2.8
Actual field capacity, Ha/hr 0.86
Fuel Consumption, li/hr 0.28
Cost of fuel, PhP/li 30
Lubricant Cost, % of fuel cost 20
Labor Cost, Php/hr 40
Custom Rate, Php/ha
FIXED COST, Ph/yr
Depreciation 8,100.00
Interest on Investment 2,970.00
Tax, insurance and shelter 1,350.00
Total Fixed Cost, Php/yr 12,420.00

VARIABLE COST
Labor cost, Php/hr 40
Fuel Cost, PhP/hr 8.4
Lubricant cost, PhP/hr 1.68
R&M Cost 24.39 12.6
Tractor use cost, PhP/hr 86.49
Total Variable Cost 149.17
Digging Costs, Ph/hr
VALUES
₱58,531.79
₱5,853.18
₱10.00
₱5,267.86
₱3,219.25
₱1,463.29
₱9,821.63
₱31.22
₱43.75
₱7.02
₱6.24
₱88.24
₱0.00
₱3,933.12
₱49,152.80 I think something wrong with the results of this
2.75
not yet figure out
1.19 14.29

₱9,488.00

₱5,216.00

MRMEDINA
ONION HARVESTER

58,531.79
10.00
10
445.75
10.00
2.28
 1.20
0.022
0.64
49.00
20
43.75
7,500.00

5,267.86
3,219.25
1,334.52
9,821.63

43.75
31.22
6.24
7.02

88.24
0.00
 Particulars machine REMARKS
Purchase Price (P) 58,531.79 say
Salvage value (%) 10.00
n, years 10.00 say
Fuel cons. Li/hr 0.64 actual based T3.
Price per li 49.00
R&M, % P/100 hr 1.20
rate of interest, % 10.00
TIS, % 2.28 -recheck
Labor cost, P/day 350.00 labor cost operator
Annual Hours, hr/year 445.75 445.7523900458 55.719
Capacity, ha/hr 0.022 Say 10 ha annual op 0.02
Capacity, hr/ha 44.575 445.75
MAN-day per ha 5.572

A. Fixed Cost Items

Depreciation 5,267.86

Int on Inv 3,219.25

TIS 1,334.52 0
Total Annual FC,P/yr 9,821.63

B. Variable Costs
Fuel Cost 31.22
Oil Cost 6.24
R&M 7.02
Labor 43.75
Total VC, P/hr 88.24

Digging Cost, Ph/hr

Digging Cost, P/ha 3,933.12 5,113.05
Digging cots, Ph/kg 0.26 15000 0.34087
COST PER HA EQ'N AFCi/A + 1/Cap(Vci + T)
49,152.80

Annual Costs 49,152.80

BEP,Ph/yr
BEP,Ph/ha
Payback period, yr 1.19

49,152.80
Area, ha/yr 10.00
VC, Ph/hr 88.24
DC, ha/hr 0.022
Ph/kg - = Digging price/(kg/ hr)
Kg/min 1.23
Kg/hr 73.80
VC*A 882.35
VC*A/DC 1,753,196.17
FC+ 9,821.63
REMARKS

machine
AFCi(annual fixed cost),Ph 9,821.63
DCa, ha/hr 0.022
Vci(Total VC,Ph/yr) 88.24

labor cost operator

Cost/ha Equation AFCi/A + (1/C)*(Vci) 3,955.15

1/C*(Vci+T) 3933.12

Fci/A 22.03

From the Cost equation, assume values for A and compute for Cost/ha

A machine
0.50 23,576.39
1.00 13,754.75
2.00 8,843.93
3.00 7,206.99
4.00 6,388.53
5.00 5,897.44
6.00 5,570.06
7.00 5,336.21
8.00 5,160.82
9.00 5,024.41
12.00 4,751.59
15.00 4,587.89
25.00 4,325.98
30.00 4,260.50

Custom Rate 7,500.00

- what is the unit of measurement of this?? I think it is Php/ha
Breakeven Area, ha/yr 2.75 or I say manual labor
Item machine
Capital Investment(Php) 58,531.79
Fixed cost, Php/yr
Depreciation 5,267.86
T,I,S 1,334.52
I on I 3,219.25
Total
Total fixed cost/yr 9,821.63
Variable cost
R & M, Php/hr 7.02
Fuel, Php/hr 31.22

Oil/Lubricant, Php/hr 6.24

Labor 43.75
Tractor use, Php/yr

Total variable cost/hr

Annual operation, hrs/year

446
Custom Rate, Php/ha (max) 7,500.00 7,500.00
Custom Rate, Php/ha 7,500.00
Area
Variable cost/A Area, ha 1
Cost Curve 13,754.75
 16000

14000

12000

10000

8000

6000

4000

2000

0
1 2 3 4 5 6 7 8 9 10 11 12 1
Area, ha Cost Curve

2 3 4 5 6
8,843.93 7,206.99 6,388.53 5,897.44 5,570.06
 8 9 10 11 12 13
Cost Curve

7 8 9 10 12 15
5,336.21 5,160.82 5,024.41 4,915.28 4,751.59 4,587.89
 20
4,325.98