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close this bookHow to Make? An Improved Soap .. Not just for more Foam (GTZ, 1993, 71 p.)
close this folderE. Economic aspects of the improved soap production
View the document(introduction...)
View the documentE.I. Packaging and trading
View the documentE.II. Profitability
View the documentE.III. Financial analysis of the soap making (survey forms)

E.II. Profitability

To determine the profitability of the saponification activity, the following elements should be considered:

1. Expenses

- Expenses incurred by raw materials (fats, alkaline, additives);
- Costs of energy and water;
- Salaries (i.e eventually social costs);
- Trading costs (packaging, transportation);
- Property costs;
- Paying off of material and equipment;
- Taxes and impositions (eventually).

- Sum of total Expenses = (A)

2. Receipts (accounting)

- Sale of soaps;
- Sale of eventual empty packages (barrils);

- Sum of total receipts = ( B )

3. Profit/Loss = ( B ) - ( A )

The form Financial Analysis of the operation gives a guideline for the determination of the main elements for calculation of the profitability.