PROFILE ON PRODUCTION OF FISHING NET AND SPORTS NET

84-15Table 7.2ANNUAL PRODUCTION COST AT FULL CAPACITY ('000 BIRR)Items Cost %Raw Material and Inputs 157.87 8.00Utilities 55.78 2.83Maintenance and repair 150 7.61Labour direct 141 7.15Administration Costs 135.78 6.88Total Operating Costs 640.40 32.47Depreciation 930.15 47.18Cost of Finance 401.15 20.35Total Production Cost 1971.70 100C. FINANCIAL EVALUATION1. ProfitabilityAccording to the projected income statement, the project will start generating profit in thefirst year of operation. Important ratios such as profit to total sales, net profit to equity(Return on equity) and net profit plus interest on total investment (return on totalinvestment) show an increasing trend during the life-time of the project.The income statement and the other indicators of profitability show that the project isviable.