COSTS AND RETURNS OF MULBERRY PAPER PEONY PRODUCTION OF THE MULBERRY PAPER ENTREPRENEUR GROUP IN BAN THA LO, BO HAEO SUBDISTRICT, MUEANG DISTRICT, LAMPANG PROVINCE

Abstract

The objective of this study was to examine the Costs and Returns of Mulberry paper peony production of the mulberry paper entrepreneur group in Ban Tha Lo, Bo Haeo Subdistrict, Mueang District, Lampang Province. A qualitative research approach was used, employing structured interviews and analyzing data from 12 Sa paper entrepreneurs in Ban Tha Lo. Data analysis covered costs, revenue from sales, gross profit, and break-even point to determine the selling price and appropriate profit planning.

Results indicated that the product cost per bag was 203.92 baht, consisting of raw materials at 182.22 baht per bag (89.36%), labor cost at 20.00 baht per bag (9.81%), and manufacturing overhead at 1.70 baht per bag (0.83%). Annual revenue from peony flowers was 300,000 baht, while the annual cost of peony flowers was 244,704.01 baht. Gross profit per year was 55,296 baht, representing a gross profit margin of 18.43 percent. The break-even point for sales was 2,109.99 baht. The fact that the quantity produced and sold has a higher price than the break-even point indicates the potential of the Ban Tha Lo Sa paper group in producing peony flowers with price competitiveness in the market and effectively managing a low break-even point.