Year: 2022 | Month: October | Volume 12 | Issue 5
Economic Analysis of Functional Yoghurt and its Impact on Consumer Acceptability
S. Siva Kumar
Varinder Pal Singh
Yoghurt is famous fermented milk product due to the entry of a number of international and national organized dairy players in the market and gradually replaces the other dairy products due to its varieties and health benefits. From the economic analysis of functional yoghurt preparation, it was found that initial capital investment in starting the business of functional yoghurt was ` ten lakh. The proportion of fixed and variable cost was 9 per cent and 91 per cent, respectively. Final cost of production of optimized yoghurt was worked out to be ` 99.52 per kg. Considering the prevailing market price of yoghurt to be ` 120 per kg, a profit of ` 20.48 per kg could be obtained which is a good profit margin for the commercial viability and sustainability of the product. Benefit cost ratio was observed to be 1.21 which is quite higher than one indicating good viability of the investment. The Break Even output was calculated as 31.28 kg of product with a margin of safety of 68.72 per cent which is quite high indicating that the business is secure and less risky. The degree of liking among the respondents shows that nearly 32% described the product as excellent and 39% as very good, while remaining 18% expressed the product as good. 5% of the people neither like or nor dislike the product and 6% of the people dislike the product.
- The Break Even output and margin of safety indicating that the business is secure and less risky.
- The consumer study results indicated that the product was well accepted by the consumers.
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