Study of Cost, Break Even Point and Price Determination of Instant Rice Noodle Products

Abstract

The purposes of this research to study the cost, break even point and price determination of instant rice noodle products in Phetchabun province. This research consisted of a combination of qualitative and participatory research. Key contributors in qualitative research are president and member of the community enterprise group and consumers of 30 people and participatory action research the research team consisted of 2 people, 9 students, 3 members of the community enterprise group, participated in the processing of instant rice noodle products (prototype). In order to calculate cost, break even point and price determination. the results it was found that the total cost was 40.93 baht, the most variable cost per unit was 40.82 baht or 99.73 percent and the fixed cost per unit was 0.11 baht or 0.27 percent. By adding 30 % of the desired profit, the product's selling price is 53.20 baht per unit, but if the price is set according to the psychological principle by setting odd-numbered prices that appeal to customers, the product price can be set at a price of 59 baht and consumers are more motivated to make a purchase when they receive a price reduction to 2 boxes of 100 baht, sales at break even point of 382 units, but if the business has reduced the price to 50 baht per unit to create incentives for purchasing from consumers, the sales at break even point is 757 units and the profit margin is 22.16 %.