Analysis of Production Costs and Return on Investment of Plastic Woven Products by the Sripran Housewife Group, Sa Wang Ha District, Ang Thong Province

Abstract

This research aimed to 1) analyze production costs, returns, and break-even points, and 2) plan profits for the products of the plastic weaving group in Sripran Sub-District, Sawaeng Ha District, Ang Thong Province, from March 2023 - February 2024. The research was conducted using participatory action research and in-depth interviews. The research population comprised producers in the Sripran Sub-District, Sawaeng Ha District, Ang Thong Province with a purposive sampling of the plastic weaving group in the Sripran Sub-District, numbering 8 people, to be the key informants. Research tools included interviews and observations. This study was analyzed by qualitative data analysis, production cost analysis, and product return analysis. Break-even analysis was performed using accounting calculations.

Findings revealed that the plastic weaving group in the Sripran Sub-District primarily engaged in weaving as their main occupation. The group's products included baskets, bags, and tissue paper boxes, which were sold at retail shops. Accounting practices within the group lacked standardization, with no analysis of production costs, financial statements prepared for return analysis, or ability to analyze costs per unit according to cost accounting principles. Direct material costs, labor costs, and production expenses were not calculated. Pricing relied on estimation and competitor prices, without profit planning. Production cost calculations showed that bags had a cost of 74.20 baht per unit, baskets had a cost of 74.20 baht per unit, and tissue paper boxes had a cost of 52.80 baht per unit. Return analysis revealed an annual income of 830,000 baht from selling bags, baskets, and tissue paper boxes, with a net profit of 406,200 baht per year. Return on investment analysis showed a net profit margin of 50.53% for bags and baskets and 34.00% for tissue paper boxes. Furthermore, break-even analysis indicated that the group needed to sell 200 units per month to break even. Profit planning for plastic weaving products involved setting a new selling price by planning profits, with a markup ratio of 150%. The new selling price for the products was determined to be 185.5 baht per unit.