Costs and Returns of the Making of Herbal Compress Balls of Rai Khet Tawan Community Enterprise, Hua Suea Subdistrict, Mae Tha District, Lampang Province

Abstract

In this research investigation, the researcher examines 1) the costs and returns of the making of herbal compress balls at the Rai Khet Tawan Community Enterprise, Hua Suea subdistrict, Mae Tha district, Lampang province; and analyzes 2) the structure of the costs and returns of the making of herbal compress balls in the community under study.

In this qualitative research, the sample population consisted of eight enterprise operators of herbal compress balls in the community under investigation. The research instrument was a structured interview form. Data of costs and returns from sales, gross profits, and break-even point were analyzed.

Findings showed that the cost of making herbal compress balls per unit was 45.74 baht consisting of raw materials at 28.93 baht per unit (63.25 percent); labor cost at 13.28 baht per unit (29.03 percent); and manufacturing cost at 3.53 baht per unit (7.72 percent). The income from the sales of herbal compress balls per year was 840,000 baht. The costs for the making of herbal compress balls per year were 550,651.20 baht. Gross profit from sales per year was 289,343.80 baht. The ratio of gross profit per sale was at 34.45. The break-even point of the daily sales of herbal compress balls in the community under study was at 27.43 balls, or 1,920.10 baht. Monthly sales were at 548.60 balls or 38,402.00 baht. Yearly sales were at 6,583.22 balls or 460,825.66 baht. The number produced and sold, the income from sales, and the sales, daily, monthly, and yearly was higher than the break-even point calculated. This means that the business has the ability to sell herbal compress balls and the business is cost-effective.