THE ECONOMIC ANALYSIS OF THE PROFITABILITY OF SMALL-SCALE PURE WATER PRODUCTION IN NIGERIA (A CASE STUDY OF JABU PACKAGED WATER FACTORY)
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Date
2012-12-23
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Afro Asian Journal of Social Sciences
Abstract
The paper examines the profitability or viability of small-scale packaged water factory in Nigeria
using JABU packaged water factory as a case study. The paper uses a combination of descriptive
analysis and simple mathematical formulae to compute the profitability and the degree of
operating leverage of the factory. The result reveals that the firm is able to make some profit at
the end of the first year from which the entrepreneurship dividend could shared showing that the
firm is able to break-even. This suggests that the packaged water business is a viable business in
Nigeria if the same scenario operates in other packaged water factories in Nigeria while the
break-even analysis supports the production of bottled water. This therefore suggest that the
packaged water production should be encouraged in Nigeria under a guided atmosphere such that
non-registered packaged water factories are not allowed to produce untreated water for human
consumption, that the water source be subjected to periodic test by analysts and that packaged
water should be produced under hygienic condition that conforms with the standard required by
the World Health Organization.
Description
Profitability, Pure Water, Viability, Mathematical Formulae and Operating Leverage
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