Page 312 - Proceeding The 2nd International Seminar of Science and Technology : Accelerating Sustainable Innovation Towards Society 5.0

he 2 International Seminar of Science and Technology
nd
“Accelerating Sustainable innovation towards Society 5.0”
ISST 2022 FST UT 2022
Universitas Terbuka

2.4 Farming revenue
Farming revenue is the total income received by farmers from
production activities carried out and has generated money that has not
been deducted by costs incurred during one production. Farming
revenue is calculated by Equation (2), where TR=Total Revenue
(Pakcoy Revenue), p=Pakcoy price per 1 stick, q=Total Harvest
Pakcoy/stem.
= (2)

2.5 Farming profits
Profit is the difference between revenue and production costs.
Farm profit formula is in Equation (3), where TR= reception, TC= total
cost.
= – (3)
2.6 R/C ratio
R/C Ratio is an analysis used to determine the relative advantage of
farming. The R/C Ratio can be searched by using a comparison
between revenue and production costs incurred. The R/C ratio is a
feasibility analysis, which is an assessment of the extent to which the
benefits derived from a business activity are intended as a business
consideration that can be continued or not. R/C ratio can be calculated
by Equation (4).
(revenue)
R/C ratio = (4)
(total cost)
Notes:
• If the R/C Ratio > 1, the revenue received is greater than the costs
incurred, meaning that the business is feasible to continue
running.
• If the R/C Ratio < 1 then the revenue received is smaller than the
costs incurred, meaning that the business is not feasible to
continue running.
• If the business activity produces R/C Ratio = 1 then the business
is in normal profit.

282 ISST 2022 – FST Universitas Terbuka, Indonesia
International Seminar of Science and Technology “Accelerating Sustainable
Towards Society 5.0