Table 3 Description of \( TVC \), \( TR \) and \( FC \) for smallholder soybean production
Items | Description | Calculations |
|---|---|---|
Total revenue | Quantity of grains sold in kg | Quantity multiplied by selling price per kg at the farm gate |
Variable costs | Operation cost items such as seed, ploughing, labor, agrochemicals, fertilizer, and inoculants incurred to produce soybean grains | Quantities of items or services rendered multiple by unit price |
Gross margin | – | Total revenue − ∑variable costs |
Fixed costs | Capital expenditure items such as cost of land, hoe, cutlass, knapsack sprayer | Depreciation of items determined over lifespan of each items |
Net gross margin | – | Gross margin − ∑(variable and fixed costs) |