Analysis of the cost and returns: A case study of the community production of red chili paste group of Patum Village, Phrao District, Chiang Mai Province

Abstract

This study aims to analyze the costs and returns, determine the selling price, and plan the appropriate profit for the “Nam Prik Ta Daeng” product from Pa Tum subdistrict. The key informants were specifically sampled, consisting of 41 “Nam Prik Ta Daeng” producers from Pa Tum subdistrict. Qualitative research tools include structured interviews, focus group discussions, and content analysis. Quantitative research tools include a questionnaire on costs, returns, and business policies, and data analysis using descriptive statistics.            

The study found that the production cost for 15 kilograms of “Nam Prik Ta Daeng”, packed into 200 jars of 100 grams each, amounts to 3,338.00 baht. This is divided into direct materials at 1,574.00 baht, accounting for 47%, direct labor costs at 900.00 baht, accounting for 27%, and production expenses at 864.00 baht, accounting for 26%. Regarding pricing and profit forecasting, the group decided to set the selling price to achieve a desired profit equal to the production cost, calculated at 33.38 baht per unit. Combined with a psychological pricing strategy, the selling price was set at 39.00 baht per unit, resulting in a profit of 4,421.00 baht per production cycle.