ANNEXES
79
Fixed Costs:
Fixed costs are those that do not change with the level of production or sales. They include:
• Rent: 200,000 DA/month
• Salaries: 1,920,000 DA/month
• Advertising: 300,000 DA/month
• Maintenance: 100,000 DA/month
• Electricity and water: 200,000 DA/month
• Other fixed costs related to equipment and setup
Variable Costs:
Variable costs change with the level of production. These could include:
• Raw materials (e.g., Spirulina nutrients, chemicals): 850,000 DA/month
• Distribution costs: 500,000 DA/month
• Other production-related costs that vary with sales volume.
Total Costs:
Monthly Fixed Costs
Total Fixed Monthly Costs = 200,000 DA (Rent) + 1,920,000 DA (Salaries) +
300,000 DA (Advertising) + 100,000 DA (Maintenance) + 200,000 DA (Electricity and water) =
2,720,000 DA
Monthly Variable Costs
Total Variable Monthly Costs = 850,000 DA (Raw materials) + 500,000 DA (Distribution) =
1,350,000 DA
Total Monthly Costs:
Total Monthly Costs = Total Fixed Monthly Costs + Total Variable Monthly Costs =
2,720,000 DA + 1,350,000 DA = 4,070,000 DA
Total annual costs: Total monthly costs × 12 = 48,840,000 DA