Costs and Return of Investment on Hand-Crafted Candle Trays of Ban San Klang Community, Bo Haeo Subdistrict, Mueang District, Lampang Province

Abstract

This research aimed to 1) study the costs and return on investment of hand-molded lanterns in Ban San Klang community, Bo Haeo sub-district, Mueang district, Lampang province, and 2) analyze the cost structure and return on investment of hand-molded lanterns in Ban San Klang community, Bo Haeo sub-district, Mueang district, Lampang province. This research was qualitative research. The sample consisted of 7 hand-molded lantern entrepreneurs in Ban San Klang community, Bo Haeo sub-district, Mueang district, Lampang province. The research instrument was a structured interview form and analyzed cost data, sales revenue, gross profit, and break-even points. The results showed that the cost of hand-molded lanterns per unit was 2.22 baht, consisting of 1.60 baht per unit, accounting for 72.07 percent, labor costs 0.34 baht per unit, accounting for 15.31 percent, and production costs 0.28 baht per unit, accounting for 12.61 percent. The annual income from hand-molded lanterns sales was equivalent to 52,500.00 baht. The cost of making hand-molded lanterns per year is 46,620.00 baht. The gross profit from sales is 5,880.00 baht, which is a gross profit to sales ratio of 11.20 percent. The break-even point of selling hand-molded lanterns is 4,714.28 units, which is 11,785.70 baht. The amount produced and sold is higher than the
calculated break-even point. This shows the ability to sell hand-molded lanterns and be cost-effective. The results of this research can be used as a part to promote the development of community products with sustainable costs and return on investment management.