PRODUCTION COST ANALYSIS AND PRODUCT PRICING, CORN SHELL PRODUCER COMMUNITY ENTERPRISES GROUP, KAMPHAENG PHET PROVINCE

Abstract

This research article aims to 1) Study the production problems faced by the community enterprise group producing corn husk krathongs. 2) Analyze production costs and production returns for the community enterprise group producing corn husk krathongs, and 3) Set product prices and plan appropriate profits to produce the community enterprise group producing corn husk krathongs. This is qualitative research. The sample group consists of 11 members from the community enterprise producing krathongs from corn husks in Lan Dok Mai Tok Subdistrict, Kosamphi Nakhon District, Kamphaeng Phet Province. The sample was selected through purposive sampling. The research instrument used was a structured interview. Structured interviewFocus Group Observation method, data collection through in-depth interviews, observation, and focus group discussions, data analysis using descriptive statistics. The research findings revealed that the issues identified include the lack of accounting records for production costs and the incorrect calculation of costs. This has resulted in inappropriate product pricing and profit planning. The cost of producing corn husk krathongs for one month is 2,000 pieces, with a product price of 45 baht each. This includes direct materials costing 17.20 baht, direct labor costing 5.20 baht, and production expenses of 0.35 baht, resulting in a total production cost of 45,500 baht per month. The revenue from selling corn husk krathongs amounts to 90,000 baht. The net profit margin to cost is 97.80%, and the net profit margin to sales is 49.44%. The guideline for setting the appropriate price for the product, which is the corn husk krathong, increased to 45.50 baht per piece, will result in higher profits, increasing from 97% to 99%. The monthly sales amount to 91,000 baht, with an average net profit of 22.50 baht per piece.