COSTS AND RETURNS FROM RICE CRACKER PRODUCTION, THUNG MAN NUA VILLAGE GROUP, BAN PAO SUBDISTRICT, MUANG DISTRICT, LAMPANG PROVINCE

Abstract

This research aims to investigate the costs and returns of making Khao Tan, or rice cracker, in Thung Man Nuea Village Group, Ban Pao Subdistrict, Mueang District, Lampang Province. It was survey research using a structured interview form with 20 Khao Tan producers. The results of the study found that the cost of making Khao Tan per bag included direct raw materials at 7.56 baht per bag, calculated as 46.04 percent; direct labor costs at 6.64 baht per bag, calculated as 40.44 percent; fixed production costs at 0.06 baht per bag, calculated as 0.37 percent; and variable production costs at 2.16 baht per bag, calculated as 13.15 percent. The total cost of making Khao Tan per bag is 16.42 baht. The monthly income is 104,000 baht. The monthly cost of making Khao Tan is 85,384 baht. The gross profit from selling Khao Tan per month is 18,616 baht. The ratio of gross profit to sales is 17.90 percent. The annual income is 1,248,000 baht. The cost of making Khao Tan per year is 1,024,608 baht, resulting in a gross profit from selling Khao Tan per year of 223,392 baht. The gross profit-to-sales ratio is 17.90 percent. The monthly break-even point for an investment in Khao Tan is 1,714.29 baht, and the annual break-even point is 20,571.43 baht. Therefore, if investors can sell more Khao Tan or rice crackers, resulting in higher profits, they should change the employment model from daily wage to contract employment. This adjustment will help prevent issues related to labor shortages or slow work performance. Additionally, contract employment can motivate workers to be more driven in their tasks.