THE GROSS MARGIN FOR BIGGER SCOMBER (Scomber japonctactus)

The results of the analysis of gross margin for Bigger Scomber (Scomber japonctatus) is presented below

Variable cost

Amount

Cost of fish

1,152,000

Transportation

19,200

Rent

5760

Miscellaneous

4800

Total variable cost (TVC)

1,181,760

Gross revenue

Revenue for selling

1,680,000

Scomber (Bigger size)

Total Revenue (TR)

1,680,000

Fixed

500

Knife

2000

Bags table

1,100

Total fixed cost (TFC)

4100

Source: field survey, December 2014

The result from table 10, shows that variable cost were calculated as follows: cost of fish N1, 152,000, Transportation N19, 200, Rent N5760, and miscellaneous N4800 and a total variable cost (TVC) as N1, 181,760. The result shows also that gross revenue were calculated as revenue from selling Bigger sizes of iced scomber which gives a total revenue (TR) of N1,680,000 and fixed cost as cost of knife N500, cost of Bags N2500, and cost of table N1,100 which give a total fixed cost as N4100.

From the above result, gross margin (GM) were calculated as follows: total revenue (TR) N1,680,000 minus total variable cost (TVC) 1,181,760 which gives (498,240). Therefore, the result obtained from table to shows that, the profit (π) for selling Bigger iced scomber (scomber japoctatus) gives, gross margin (Gm) N498,240 Minus Total Fixed cost (TFC) 4100 as N94,140.

Net profit the result obtained from table to shows that, the net profit (π) for Bigger sizes of scomber gives N494,140.

THE GROSS MARGIN FOR SMALL SIZE SCOMBER (Scomber japonctatus) TABLE 11

The result the analysis of gross margin for small size scomber (scomber japontactus) is presented below.

Variable cost

Amount

Cost of fish

912,000

Transport

17,280

Rent

5760

Miscellaneous

17,280

Total variable cost (TVC)

935,337

Gross Revenue

Revenue for selling

1,272,000

Small size scomber

Total Revenue (TR)

1,272,000

Fixed cost

Knife

450

Bags table

2000

Total fixed cost (TFC)

3550

Source: field survey, December, 2014.

The result obtained from table 11, shows that variable cost were computed follows cost of fish N 912,000, Transportation N17,280, Rent N5760, and miscellaneous N17, 280 and the total variable cost (TVC) given N935, 337. The results from the gross revenue were computed as revenue selling small size iced scomber (Scomber japontactus) as N1, 272,000 and total Revenue as N1, 100 and the total fixed cost (TFC) N3,550.

The result obtained from the total Revenue TR and Total Variable cost (TVC) were used to get the cross margin which is Total Revenue (TR) 1, 272,000 minus Total variable cost TVC N935,337 as 336,663. Profit (π) were computed thus gross margin (GM) N336, 663 minus total fixed cost (TFC) N3550 as N333,113 therefore, the results obtained from this table shows that net profit (π) for selling of Bigger sizes of iced scomber (Scomber japantatus) as N333,113.