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.