Cost and the Return on Mattress OTOP Product of Ban Nongyarak Community in Pudsa Subdistrict, Mueang District, Nakhon Ratchasima Province

Abstract

Participating in informing entrepreneurs about operations, allow them to manage value-added and risk appropriately. Leading to research with objectives were: 1) to study production costs, 2) to study return from production, and 3) to analyze costs and returns in producing a One Tambon One Product (OTOP) item, specifically the 3.5 feet, 5 feet, and 6 feet Picnic Mattresses in the Nongyarak community, Phutsa Sub-District, Mueang District, Nakhon Ratchasima Province. This qualitative research used a specific target group of 11 people selected through structured interview questionnaires that had an index of item-objective congruence between questions and research objectives ranging from 0.67-1.00. Data were collected using in-depth individual interviews conducted in the field, and workshop meetings were held to analyze costs and returns and to prepare profit and loss statements. Content analysis was used to summarize phrases and sentences from interviews, and descriptive statistics were used to find percentages. Financial ratios were used to analyze relationships between cost and return data.

                        The research findings revealed that 1) overall image of production costs totaling 2,138,576 Baht per year. Direct raw material costs were the cost of poly fabric, synthetic fibers, thread, and needles totaling 910,000 Baht per year. Direct labour costs included costs from sewing and cutting, synthetic fiber filling, and mattress edging, totaling 455,000 Baht per year. Expents consisted of water, electricity, and oil costs totaling 618,310 Baht per year, and operational costs were packaging bag and sticker costs totaling 58,000 Baht per year. 2) Returns from production showed revenue from sales of 2,600,000 Baht per year, averaging 1,850 Baht per unit per year. 3) Gross profit was 520,024 Baht per year with a gross profit margin of 20.00%. Net profit was 461,424 Baht per year with a net profit margin of 17.75%. Return on investment calculated to 559.25%, and return on assets was 76.90%. Therefore, this information could be used as a importance process that businesses need to be aware of in order to manage resources appropriately, create reliable financial, and profit reports continuously for sustainable business growth.