Cost Analysis and Break-Even Points in Herb Pickled Fish Production Business of Ban Nong Phue Community Enterprise, Ban Phai District, Khon Kaen Province

Abstract

The objectives of this research were to (1) study costs and incomes from products, (2) analyze returns and break-even point, (3) test changes by factors affecting the break-even point and (4) propose guidelines for determining the selling price of herb pickled fish products. Sample group of this research consisted of 5 members in herb pickled fish production business of Ban Nong Phue community enterprise, Ban Phai District, Khon Kaen province using purposive sampling method. The research instruments included a structured interview. Accounting formulas were used to analyze the data. The research results revealed that the total costs were equal to 4,670.76 baht. Costs per package were equal to 24.57 baht, including 15.63 baht for direct raw material costs, 5.26 baht for direct labor costs, and 3.63 baht for production expenses. The sales volume at break-even point per cycle were at 8 packages. There was an excess profit of 5.73 baht per package. There was a profit per cycle of 1,029.24 baht. Net profit rate per sales per cycle was 18.05%. The rate of returns on investment per cycle was 21.81%. Results of testing changes by factors affecting break-even point in the case of direct raw material costs increased by 5% showed a decreasing in excess profit to 4.89 baht per package, and the sales volume at break-even point per cycle increased to 10 packages. In case of selling price increased by 5 baht, it was found that the excess profit increased to 10.73 baht per package and the sales volume at break-even point per cycle decreased to 4 packages.