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

Abstract

The objectives of this research are as follows: 1) To analyze the cost of drinking water production of drinking water producers in Nong Bua Rawe District, Chaiyaphum Province. 2) To analyze the return, net present value (NPV) and internal rate of return (IRR) from drinking water production of drinking water producers in Nong Bua Rawe District, Chaiyaphum Province and 3) To study the Break Even Point, Payback Period, The research results found that. 1. Production costs in the production of drinking water, raw water is used for drinking water containers, the amount used is 500 containers, 18 liters each, using 9,000 liters of water. Bottled drinking water is used, the amount used is 3,000 bottles, 600 milliliters each, using 1,800 liters of water, which is 1 cubic meter of tap water = 1,000 liters, price 32.50 baht) 0.0325 baht per liter. Using 500 containers of drinking water, there is no cost per container because the buyer must pay the deposit himself. Using bottles of drinking water, the amount used is 3,000 bottles, the cost per bottle is 1 baht/bottle, using 9 employees to produce and pack drinking water, the wage rate is 350 baht per day. Use electricity to operate the production and there are other expenses. Variable production expenses  2. Summary of the results of the Returns The entrepreneur sets the selling price as follows: barrel type, 15 baht per barrel. If there is no barrel to replace, 120 baht per barrel (deposit). Bottle type, 35 ml, 600 ml, 35 baht per dozen, 3 dozen 100. Sales volume each time varies each month depending on the demand from customers in the area and weather conditions. Sales volume per day is approximately 10,000 baht, with an average of approximately 300,000 baht per month. 3. Summary of the results of analysis of net present value and internal rate of return. 3.1) Net present value, internal rate of return, total production cost of tank type 6.96, deduct fixed cost, depreciation 1.22, remaining cost of tank type equal to 5.74, sales volume 9,000 tanks. Total cost excluding depreciation is 51,660. Total production cost per bottle is 2.19. Deduct fixed cost, depreciation is 0.25. Total cost per bottle is 1.94. Sales volume is 72,000 bottles. Total cost excluding depreciation is 139,680. 3.2) Break-even point analysis and payback period: Break-even point of tank-packed sales unit = 78,927.60 baht and break-even point of bottle-packed sales unit = 82,587.38 baht. 3.3) Payback period the return from drinking water production found that the net present value was equal to (4,384,505.33) baht and the payback period was 3 years and 3 months.