The Analysis of the Factors Influencing the Breakeven Point and Margin of Safety on Cassava Production in Nakhon Ratchasima Province

Abstract

           The purpose of this research was to determine the factors which influence the breakeven point and margin of safety on cassava production. The research sample group selected by the random assignment sampling method was cassava farmers in Lampeak Subdistrict in Nakhon Ratchasima Province, and then 288 people were determined by the simple random sampling method. Frequency, percentage statistics, and multiple linear regression were used for the data analysis.

The results indicated that 1) variable and fixed costs were 3,188.20 bath and 1,038.22 bath per rai, respectively. The average yield of cassava was 3,680.73 kilograms per rai. The average selling price was 2.10 bath per kilogram. The breakeven point yield and margin of safety were 872.45 kilograms per rai and 2,617.13 kilograms per rai, respectively, 2) the breakeven point analysis related to the cost, yield, and selling price showed that the cost was positively connected with the breakeven point with the level of significance at 0.01%, but the selling price was negatively correlated with the breakeven point showing the level of significance at .01%. For the margin of safety analysis related to the cost, yield, and selling price, it was found that the cost and margin of safety were negatively correlated showing the level of significance at .01%, but the yield and selling price were positively connected with the margin of safety with the level of significance at .01% .