Table 5: Estimated costs and returns for processing peanut, using 2,400 kg of whole grain peanut per month, under the following assumptions. (i) Case 1: peanut is normally purchased at $0.15 per kilogram and sold at $7.35 a bassin of peanut butter. (ii) Case 2: peanut is purchased at different price due to storage length and sorting.

Case 1 Case 2 Unit Not sorted Sorted Not sorted Sorted   3 months 6 months   3 months 6 months   Value Value Value Value Value Value Peanut butter (1 kg @ $7.35) kg 96.00 95.04 92.16 96.00 95.04 92.16 Revenue $ 705.60 698.54 677.38 705.60 698.54 677.38 Whole grains kg 2,400 2,400 2,400 2,400 2,400 2,400 Unshelled nuts price $ 0.147 0.147 0.147 0.126 0.16 0.16 Purchasing costs $ 352.8 352.8 352.8 302.4 384.0 384.0 Labor hours hour 186.0 258.0 258.0 186.0 258.0 258.0 Labor cost $ 114.08 174.58 174.58 114.08 174.58 174.58 Material and equipment $ 0.63 0.63 0.63 0.63 0.63 0.63 Total variable costs $ 467.51 528.01 528.01 417.11 559.21 559.21 Income above variable costs $ 238.09 170.53 149.37 288.49 139.33 118.17 Repair and maintenance $ 1.00 1.00 1.00 1.00 1.00 1.00 Depreciation equipment $ 0.95 0.95 0.95 0.95 0.95 0.95 Total fixed costs $ 1.95 1.95 1.95 1.95 1.95 1.95 Total costs $ 469.46 529.96 529.96 419.06 561.16 561.16 Net returns $ 236.14 168.58 147.56 286.54 137.38 116.22 Break-even price (per kg sold)                To cover variable expenses $ 4.87 5.56 5.73 4.50 5.93 5.18  To cover total expenses $ 4.89 5.58 5.75 4.52 5.95 5.20

Material and equipment are considered as variable costs because they are renewed every year.