Cost and Return on Sales for the Production of Wicker Basket Products by the Enterprises in Nong Raet Sub-District, Thoeng District, Chiang Rai Province

Abstract

This research aims to study the Cost and Return on Sales for the Production of Wicker Basket Products, and to study the factors affecting the business operation of wicker basket production in Nong Raet Sub-district, Thoeng District, Chiang Rai Province.Sample group in this research consisted of wicker basket enterprises in Nong Raet sub-district, Thoeng district, Chiang Rai province, in total of 44 persons .Questionnaire was selected as a data collection tool. For the statistical data analysis, means and standard deviation were determined.

                The result shows that (1) General Information: majority of the respondents are male, aged between 51-60 years old, married, with 4-6 members in their household. Most of them make wicker baskets as part-time, while doing the agricultural jobs as main occupation. Main materials are sourced through middle man trader. Selling channel is also through middle man trader. Their selling price has increased during the past 1 year, due to customer demand and increasing cost of production.(2) Cost of wicker basket production consists of direct material at 51,174.61 Baht per annum, direct labor cost at 45,821.62 Baht per annum. Indirect material cost consists of gloss lacquer coating average at 3,044.50 Baht per annum, benzene fuel average at 831.92 Baht per annum, white threaded wicker rope at 52,421.06 Baht per year, red threaded wicker rope at 44,560 Baht per annum, consumable cost at 1,684.27 Baht per annum. Tooling and equipment cost consist of skiver knives 102.47Baht, hammers 52.79 Baht,mesuring tape 90.34 Baht, metal cutter 154.79 Baht, wicker cutting scissors 233.11 Baht, pneumatic staple gun 780.90 Baht, air pump 4,815.90 Baht. Sum of total cost of wicker basket is at 205,768.28 Baht per annum. (3) For the production of wicker baskets, the annual sales was at 245,680 Baht. From the analysis on the return on sales, the rate of margin to cost was at 19.40%, net profit at 16.25%, operating profit at 16.25% and return on investment at 19.40%.  (4) The overall factors on the production have moderate impact. The factor with the highest mean score is Product, following by Place, Pricing, and Promotion, respectively.