Financial feasibility analysis of small industry of mathematical manipulative

Abstract

Learning Mathematics effortlessly and pleasantly is one of the strategies for children to master concepts, mathematical principles, and be capable of solving mathematical problems. In accordance with children mental development, the existence of manipulatives (concrete) is required by children to fulfill the above objectives. Along with technology development, manipulatives have also been developed to support students’ thinking abilities based on the demands of the ongoing curriculum. One of the objectives of this study was to conduct a financial feasibility analysis of commercial of mathematical manipulatives. Indicators of commercial feasibility used in this study were Break Event Point (BEP) analysis, Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit Cost Ratio (B / C Ratio), and Pay Back Period (PBP)). The steps in analyzing financial feasibility of manipulatives production business in this study were to calculate: (1) Fix Cost, (2) Variable Cost, (3) Production Cost, (4) Cost of Goods Manufactured and BEP Analysis (5) Investment Feasibility (IRR analysis, NPV, B / C Ratio, and PBP). The results of the analysis showed that the production of manipulatives in this study was feasible as a commercial business with BEP occurred when sales of manipulatives made from wood were 3 sets, Evafoam were 18 sets, and paper were 7 sets, NPV was 574,126,261 per year, IRR 50% > interest level at 12%, B / C ratio of 1.50247> 1 (profitable), and PBP occurred 2 years 11 months 29 days.