Investment Cost Analysis Of Brewring Industry Using Golden Guinea Breweries Nigeria Plc As Case Study

ABSTRACT

The purpose of this study was to ascertain the break even analysis on the Brewing industry using Golden Guinea PLC as a case study. The break-even point in units and sales were investigated. The Internal Rate of Return (IRR) was also established. The study made use of secondary data from Golden Guinea PLC for the data analysis. Result from the study revealed that Golden guinea breweries will have to sell 177,701,166.7 units (N25944370340 sales in cash) of their product to cover its fixed and variable expenses, with a production capacity of 1.15 million bottles per day Golden guinea breweries can produce enough units to cover their fixed and variable expenses in 155 days, if the initial investment cost is decreased by 10% the IRR of the project will increase to 25% in the second year, 36% in the third year, and 47% in the fourth year, if the revenue from sales of products is increased by 10% the IRR of the project will increase from -99% to 18% in the second year, it will increase to 28% in the third year, and it will increase to 38% in the fourth year.