ANALYSIS OF COSTS AND RETURNS OF DRINKING WATER PRODUCTION FOR DRINKING WATER PRODUCERS IN NONG BUA RAWE DISTRICT, CHAIYAPHUM PROVINCE

Abstract

The purpose of this research article is 1) to analyze the production cost of drinking water for drinking water producers in Nong Bua Rawe District, Chaiyaphum Province; 2) to analyze the return on investment, net present value (NPV), and internal rate of return (IRR); and 3) to study the break-even point and payback period. Population and sample: 2 drinking water producers in Nong Bua Rawe District, Chaiyaphum Province, were obtained by purposive sampling. The research instrument was an interview. A mixed research method was used, combining quantitative and qualitative research. Quantitative research This research aims to find facts and quantitative conclusions, focusing on using mainly numerical data. The basis for confirming the validity of the findings and various conclusions. The data collection tool used an interview form.

The research results found that 1. Production costs: Raw water for drinking water tanks, quantity used 500 tanks, 18 liters each, uses 9,000 liters of water; bottles, quantity used 3,000 bottles, 600 milliliters each, uses 1,800 liters of water (tap water 1 cubic meter = 1,000 liters, price 32.50 baht), 0.0325 baht per liter. The container has no cost per container because the buyer has to pay the deposit. The cost of drinking water bottles per bottle is 1 baht/bottle. There are 9 employees to produce and pack drinking water. The labor rate is 350 baht per day. Variable production costs include electricity costs, other expenses, selling and administrative expenses, and other consumables. 2. Returns: Selling price per barrel 15 baht, bottle 350 ml, 600 ml, 35 baht per dozen, 3 dozen 100 baht, sales of approximately 10,000 baht per day, average 300,000 baht/month. 3. Analysis of net present value and internal rate of return. 3.1) Net present value, internal rate of return, total tank production cost 6.96, depreciation 1.22, remaining cost 5.74, sales volume 9,000 tanks, cost excluding depreciation 51,660 Total production cost per bottle 2.19, deducted depreciation cost 0.25, remaining cost equal to 1.94, sales volume 72,000 bottles, cost excluding depreciation 139,680 3.2) Break-even point analysis and payback period: Break-even point for tank type = 78,927.60 baht and break-even point for bottled sales unit = 82,587.38 baht. 3.3) The payback period of the net present value is equal to (4,384,505.33) baht and the payback period is 3 years and 3 months.