Tag Archives: Gross Margin Model

Profitability in the Red Meat Industry on the Ghanaian Livestock Market: Evidence from a Publically-Owned Red Meat Facility (Published)

We examined the profitability of a publically owned enterprise in Kumasi-Ghana. Specifically, the study sought to; determine the costs and returns, associated with operations, assess the factors that affect the profitability, and identify the challenges faced by management in their operations. Non-probability purposive sampling was used to select the study area. Structured interviews were used as primary data whereas a 10-year financial statement was the secondary data source. The result showed a positive profitability index of 0.88 and operation ratio of 0.93 although the gross margin analysis produced an operating loss (π) of (GHȻ (37,331)) given a TAC of GHȻ 4,409,972, TVC of GHȻ 10,148,464, TR of GHȻ 14,059,680, and a GM of GHȻ 4,372,644. The regression model confirmed that factors that affect the profitability of abattoir enterprise are influenced by eight factors namely; Salaries/Wages, Electricity/Water, Plant repair/maintenance, plant/market consumables, cleaning detergents, pension contribution, depreciation expense and packaging/labelling at r=0.86.

Keywords: Gross Margin Model, Mean Score Model, Multiple Regression, Non-Probability Purposive Sampling, Profitability, Red-Meat Industry