 Hi, I'm Mario and I'm a RIV trainer from Bolivia. I will guide you through this tutorial about modeling activity blocks in RIV20 when creating a business concept. When you create an activity block, you must select a reference unit and a production cycle and insert all the operation costs and revenues according to these units. With the correct reference unit, it should be easy to calculate costs and revenues and it will also be flexible enough to model growth in the future. Let's visit Edwin who wants to develop a pig farm. He will buy young piglets to fatten in two buildings for six months. Because we are first building a business concept, we will assess what would be one year in full production. If Edwin knows the cost per piglet, the first possible reference unit is then the piglet. We will calculate all the operation costs per piglet per cycle. To calculate the revenues, we must choose a unit of sale. Edwin knows the price per kilogram of meat. By choosing kilogram, we insert in quantity the total amount of meat that will be sold per reference unit per cycle. You will also insert the price for that unit of sale. Now we must insert the number of reference unit per cycle. Once the block is completed, the software will automatically calculate all the operation costs and revenues of that block for the entire business for one year. Now you could also choose one building as a reference unit. Then you will insert all the operation costs and revenues per building per cycle of six months. But let's see now what happens if Edwin knows the price per piglet. We can choose the piglet as a unit of sale and insert the quantity and the price. Now we must insert the number of reference unit per cycle. With the block completed, the software will calculate the costs and revenues for the entire business for one year. Let's see now when a new block is needed. If the second half of the year the temperature is higher, it could impact the price of the feed and the water. We don't have the same operation costs and revenues in both cycles. Thus, we create a new block. We will have one block with the same costs and revenues as before and the new block with higher costs and revenues but both with one cycle per year. The software will calculate the costs and revenues per year. Different blocks are needed when costs and or revenues per reference unit per cycle change. Let's visit Anna who wants to produce strawberry jam with her family recipe. In agro processing plants, different reference units can be used. For example, one single product, the production line or even the whole factory. As the recipe is for 100 jars, we could choose 100 jars as reference unit. The unit of sale for this case is the jar of jam. However, in these cases, we calculate 2% losses due to spoiled jars from fermentation. As she expects to produce 15,000 jars per month during the harvest months, the number of reference units per cycle will be 150 and we will use one month as a cycle of production. Let's assume now that Anna expects to produce 22,000 kilograms of strawberries per month during harvest months. In this case, our reference unit could be the 22 kilograms of strawberry and the number of reference unit per cycle would be 1,000. Another case for choosing 22 kilograms of strawberries as a reference unit could be if Anna would expect to produce different products like small cans and bigger cans. She will have in this case two units of sale with their respective quantity and price per reference unit. Different reference units can be chosen depending on how the farmer knows his operation costs and revenues and how is the business expected to grow in the future. When you insert operation costs and revenues, always check that you're inserting them per your selected reference unit.