A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh

Ara, Jinnat; Moheuddin, Mir Md.; Hossain, Saddam; Titu, Muhammad Abdus Sattar

doi:10.11648/j.ijebo.20200802.13

Cited by 2 publications

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“…Also, following Singh, Bhatt, and Kiran (2020), margin of safety for lentil production was calculated to assess the level of risk, which specified the amount of revenue that can be dropped before the beginning of loss and higher value of margin of safety indicates lower risk of production and is an indicative of a firm's strength (Ara et al. 2020).…”

Section: Methodsmentioning

confidence: 99%

“…It is applied to estimate the value point where price and outputs are sufficient to cover exact production related costs (Cook et al 2012). Condition when a unit farm gate price is higher than a break-even price, the farm is in economic profit (Abera et al 2019) and was calculated by using the formulas: Also, following Singh, Bhatt, and Kiran (2020), margin of safety for lentil production was calculated to assess the level of risk, which specified the amount of revenue that can be dropped before the beginning of loss and higher value of margin of safety indicates lower risk of production and is an indicative of a firm's strength (Ara et al 2020).…”

Section: Break-even and Margin Safetymentioning

confidence: 99%

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Are Lentil (Lens culinaris) Farms Productive, Profitable, and Efficient in Resource Allocation? A Cross‐Sectional Study From Nepal

Ghimire,

Dhakal,

Marahatta

et al. 2024

Legume Science

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The study was based on primary data from 473 lentil farmers selected randomly to analyze productivity, profitability, efficiency, and sensitivity of lentil farms in Nepal. Methods like benefit–cost, break‐even, margin safety, and sensitivity analysis, scaling technique, Cobb–Douglas type of production function, and stochastic frontier were adopted to derive farm economics, allocative, and cost efficiency levels. With average productivity of 672 kg/ha, lentil farmers in the study area were earning about 41% profit as of gross return with a profitability index of 0.78. About 45% margin of safety and estimates of benefit–cost ratio above one on all sensitivity measures is indicative of low risk and robust enterprise. Resources allocated in lentil production were found inefficient, and to achieve maximum return, expenses on land preparation, seed, nutrient, and plant protection cum irrigation should be increased by 27.6%, 80%, 33.1%, and 97%, respectively. Similarly, expenses on labor and harvesting activities need to be decreased by 30.1% and 23.6%. Labor cost and seed cost were the most important variables, and a 1% increase would surge the total production costs by 0.42% and 0.19%, respectively. The cost efficiency was estimated as 1.137 mean value, meaning that over 13.7% of the costs in lentil farms is wasted while comparing best‐practiced farm. Only about 48% of farms is fairly efficient at efficiency levels 1.0 to 1.09, but the majority is inefficient, which needs to minimize the waste of resources. Although suffering from climatic risks and production‐related problems, lentil enterprise is profitable, less risky, less sensitive, and fairly to inefficient in resource use. Wise attention is need on the part of farm management and resource utilization. Farmers are suggested to maintain farm size around 0.5 ha or below 1 ha, use only improved varietal seed, cut labor expenses with the use of machinery, and perform adequate tillage during sowing followed by effective disease management practices.

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Section: Methodsmentioning

confidence: 99%

Section: Break-even and Margin Safetymentioning

confidence: 99%

Are Lentil (Lens culinaris) Farms Productive, Profitable, and Efficient in Resource Allocation? A Cross‐Sectional Study From Nepal

Ghimire,

Dhakal,

Marahatta

et al. 2024

Legume Science

View full text Add to dashboard Cite

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A nonlinear model to assess the financial feasibility of the redevelopment of industrial sites in disuse [Un modello di analisi non lineare per la valutazione della fattibilità finanziaria degli interventi di valorizzazione dei siti industriali dismessi]

Tajani

Morano

Liddo

2023

Valori E Valutazioni

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With reference to the growing need of recovery and functional reconversion of abandoned industrial sites located in urban areas, the present research intends to highlight the significance of using valid evaluation models for supporting the public subjects and private investors’ choices processes. In particular, in the paper a model to assess the financial conveniences of the parties involved in the redevelopment of disused industrial sites, has been developed. The model borrows the logical approach of the Break-Even Analysis (BEA), by introducing hypothesis more relevant to the real market mechanisms and assuming the nonlinear trend of the financial parameters. The inclusion of the scale economies mechanisms in the definition of the algorithm constitutes the innovation of the operative logic of the model, able to appropriately reproduce the empirical market phenomena, compared to the classic application of the BEA with constant parameters. The proposed model represents an effective tool to be used in the early stages of interventions planning, for orienting the urban policy decisions towards more performing projects profitable interventions, in line with the current goals of sustainable development of the territories. Con riferimento alla crescente esigenza di recupero e riconversione funzionale dei siti industriali dismessi ubicati in aree urbane, la presente ricerca intende evidenziare la valenza dell’impiego di efficaci modelli valutativi a supporto dei processi decisionali dei soggetti pubblici e degli investitori privati. In particolare, nel lavoro è stato sviluppato un modello per valutare le convenienze finanziarie delle parti coinvolte nelle iniziative di valorizzazione dei siti industriali dismessi. Il modello mutua l’approccio logico della Break-Even Analysis (BEA), introducendo ipotesi maggiormente attinenti ai reali meccanismi di mercato e contemperando l’andamento di tipo non lineare dei parametri finanziari. L’inclusione dei meccanismi di economie di scala nella definizione dell’algoritmo di implementazione costituisce l’innovatività della logica operativa del modello, in grado di replicare opportunamente i fenomeni empirici di mercato, rispetto alla classica applicazione della BEA con parametri costanti. Il modello proposto rappresenta un valido strumento da utilizzare nelle fasi iniziali di pianificazione degli interventi, per orientare le decisioni di politica urbana verso progetti maggiormente performanti, in linea con gli attuali obiettivi di sviluppo sostenibile dei territori.

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A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh

Cited by 2 publications

References 0 publications

Are Lentil (Lens culinaris) Farms Productive, Profitable, and Efficient in Resource Allocation? A Cross‐Sectional Study From Nepal

Are Lentil (Lens culinaris) Farms Productive, Profitable, and Efficient in Resource Allocation? A Cross‐Sectional Study From Nepal

A nonlinear model to assess the financial feasibility of the redevelopment of industrial sites in disuse [Un modello di analisi non lineare per la valutazione della fattibilità finanziaria degli interventi di valorizzazione dei siti industriali dismessi]

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