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.