The Average Total Cost (ATC) As The Basic For the Rice Price Policy

Average Total Cost (ATC) As The Basic For the Rice Price Policy

Abstract

Rice is the most basic human need, but most do not yet understand how to calculate the cost of paddy sold. Paddy price s will affect the prices of rice. The price of rice will be affect the purchasing power of produser and consumers. Contribution of this study, can be used as basis for govermennt policy making. The purpose of this paper as to determine the cost of paddy sold at the farmer level. Based on the result of research using statistical analysis of the SPSS program versin 2.3. Paddy production cost fuction model is TC  = 137473,74 + 1259,3 Q + 0,001 Q2. .With the principle of Break Even Point theory (BEP), that cost of goods sold is equel to minimum Average Total Cost, based on the calculation result  that the cost of paddy sold at the farmer level is equel to 1.595,- IDR/kg. Based on the reality, farmers receive paddy’s price of 3.000,- IDR/kg. Thus the selling price of paddy at the farm level is higher than the cost of paddy sold.