Financial Analysis And Business Feasibility Study Of Cinnamon Jelly Candy

DOI

10.2991/fanres-18.2018.54How to use a DOI?

Keywords

jelly candy, seaweed, financial analysis, business feasibility, industrial layout

Abstract

The Government of Indonesia is targeting the performance of small and medium-sized industries (IKM) to grow above 10 percent in 2018. One of food products that can be developed in a small-scale industry is seaweed-based jelly candy with cinnamon flavor. The aim of the research is to understand the financial analysis and business feasibility of establishing a small-scale industry of cinnamon jelly candy, as well as developing a production plant layout for the jelly candy industry. The methodology consists of several steps, setting the location and presumptions, analyzing Net Present Value, Benefit-Cost Ratio, Internal Rate of Return, Pay Back Period and, designing the layout of the production area. The result shows that production of candy jelly in one production batch is 334 packs and the price is Rp. 9,300 per package. The discount factor is 9.75% for a five-year projection. With the Net Present Value is Rp. 47,256,870, the Benefit-Cost Ratio is 1.09, the Internal Rate of Return is 32.82%, and the Pay Back Period is 2 years 3 months and 21 days. Layout of the production area was adjusted based on the order of the production process using the Activity Relationship Chart method. It is possible to develop small-scale industry of cinnamon jelly candy with 19% profit of the production price. Thus, this will support the growth of small industries in Indonesia

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Setiarti Sukotjo
AU  - Indrati Sukmadi
AU  - Muhami Muhami
AU  - Alifatul Mastikha
PY  - 2018/11
DA  - 2018/11
TI  - Financial Analysis And Business Feasibility Study Of Cinnamon Jelly Candy
BT  - Proceedings of the International Conference on Food, Agriculture and Natural Resources (FANRes 2018)
PB  - Atlantis Press
SP  - 268
EP  - 272
SN  - 2352-5401
UR  - https://doi.org/10.2991/fanres-18.2018.54
DO  - 10.2991/fanres-18.2018.54
ID  - Sukotjo2018/11
ER  -