PROFITABILITY ANALYSIS OF SACHET TABLE WATER PRODUCTION IN GOMBE CENTRAL SENATORIAL ZONE, GOMBE STATE, NIGERIA

Abstract

The study examined the profitability analysis of sachet table water production in Gombe Central senatorial zone, Gombe State, Nigeria. Multi-stage sampling procedure was used. Gombe Central senatorial zone sachet table water production enterprises were purposively selected. In the study area, 45 production enterprises were selected. Data were analyzed using enterprise budget model to analyses the gross margin, profit, gross ratio, operating ratio, fixed ratio, ratio of gross margin to variable cost, ratio of gross margin to fixed cost and return per naira invested. Gross margin of N2,882,510,640, profit of N2,794,072,980, gross ratio of 0.0343, operating ratio of 0.0034, fixed ratio of 0.0305, ratio of gross margin to variable cost of 290.09, ratio of gross margin to fixed cost of 32.59 and return per capital invested of 29.40  was released. It was concluded that table water production in Gombe Central senatorial zone, Gombe State is profitable. The study recommended the citizens of Gombe central senatorial zone should engage in sachet table water production because it is a profitable venture.