Published date: Jul 31 2024

Journal Title: KnE Social Sciences

Issue title: The 3rd International Conference on Business, Economics, and Sustainability Science (BESS 2023)

Pages: 243–251

DOI: 10.18502/kss.v9i21.16687

Grisvia Agustingrisvia.agustin.fe@um.ac.idDepartment of Management, Faculty of Economic, Universitas Negeri Malang

Imam MukhlisDepartment of Management, Faculty of Economic, Universitas Negeri Malang

This research aims to analyze the costs and benefits, the break even point (BEP), and the payback period (PP) for installing a hydroponic system in Jongbiru village. From the results of this benefit-cost analysis it appears that the hydroponic organic vegetable business is a very potential small business both economically and socially. The economic potential of small hydroponic organic vegetable businesses can generate substantial profits in the short term. The social potential of small hydroponic vegetable businesses is to empower housewives who previously had no income, and have the ability to support the family needs and economy. In the future, we hope that each family can build a simple hydroponic vegetable installation. The results were as follows, 1) the benefits were much more than its costs, 2) BEP can be reached in Rp. 2,700,000 sales, and 3) the payback period is more than a year. The hydroponic installation can also be planted with a wide variety of vegetables and fruits to meet the nutritional needs of the family, and also fulfill market demands. The more varied the plants used in the hydroponic installation, the wider the benefit-cost analysis. In this way, more harvests are likely each year, with faster BEP and higher selling points.

Keywords: cost-benefit analysis, break even point (BEP), payback period (PP), hydroponic vegetable

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