Cost-benefit analysis of the slaughtering process
Equilibrium Price, Net Present Value (NPV), Internal Rate of Return (IRR), Production Costs, Local Economics
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Having an optimal price for a good or service is fundamental for the interest of demanders. The problem that is evident in this research is that there is no stable price for this service, for which the objective is to establish the optimal price for the slaughtering service according to production costs. In this sense, the calculations of some economic performance indicators such as the Net Present Value (NPV) and the Internal Rate of Return (IRR) were used. To estimate the equilibrium or optimum price, the production cost was used, which helps to obtain the unit price. As a result, the unit p...
Having an optimal price for a good or service is fundamental for the interest of demanders. The problem that is evident in this research is that there is no stable price for this service, for which the objective is to establish the optimal price for the slaughtering service according to production costs. In this sense, the calculations of some economic performance indicators such as the Net Present Value (NPV) and the Internal Rate of Return (IRR) were used. To estimate the equilibrium or optimum price, the production cost was used, which helps to obtain the unit price. As a result, the unit price for slaughtering services is $ 9.90 and the equilibrium or optimum price is $ 13.70. However, this price can be manipulated at convenience with multiple pricing or other methods. Finally, this slaughtering service generates a positive effect on the local economy, since it favors the workers because of the salary they receive, improving their health, education and access to basic services, as well as the companies that supply the raw material (guinea pig) for this service.
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