We are making a distinction between two types of costs: initial and everyday costs. First we are going to look at the initial costs.
The costs of starting the business are quite significant. These costs are summed up in table 1.
‘Other materials’ are the costs for a shed for the distillation unit, the water tank, all the necessary pipes etc. For the installation we assumed that 8 people for 3 days is enough to install the installation. These people have the same salary as the employees of the business, which is 400 Rupees per day. As we have experienced there are always unforeseen costs, which are in this case mostly spare parts.
The 2 ml bottles cost 2 Rupees per piece and the 10 ml bottles cost 3 Rupees per piece. For every five 2 ml bottles one pamphlet is used and a pamphlet for every 10 ml bottle. These pamphlets cost 15 Rupees per piece.
Assuming that the distillation unit and mirror will last 10 years, which cost 369000 Rupees together, the depreciation costs are around 100 Rupees per day.
Again, with 200 production days per year the yearly costs are 979000 Rupees.