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    This document summarizes a case study analyzing the use of cost-volume-profit analysis as a profit planning tool for UD. ABA Jember, a tile manufacturing company in Indonesia. The company experienced declining sales that impacted profits. The study performed a cost-volume-profit analysis assuming a 20% increase in 2018 sales. The analysis found the contribution margin per unit was Rp1,544, contribution margin ratio was 91%, break-even point was Rp329,416,760 or 193,775 units, margin of safety was Rp407,431,240, margin of safety ratio was 55%, and operating leverage was 2.14%. The study concluded cost-volume-profit analysis could be an effective decision

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    This document summarizes a case study analyzing the use of cost-volume-profit analysis as a profit planning tool for UD. ABA Jember, a tile manufacturing company in Indonesia. The company experienced declining sales that impacted profits. The study performed a cost-volume-profit analysis assuming a 20% increase in 2018 sales. The analysis found the contribution margin per unit was Rp1,544, contribution margin ratio was 91%, break-even point was Rp329,416,760 or 193,775 units, margin of safety was Rp407,431,240, margin of safety ratio was 55%, and operating leverage was 2.14%. The study concluded cost-volume-profit analysis could be an effective decision

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    21 views1 page

    Desy Fisip Done

    Uploaded by

    venty arum valentine
    This document summarizes a case study analyzing the use of cost-volume-profit analysis as a profit planning tool for UD. ABA Jember, a tile manufacturing company in Indonesia. The company experienced declining sales that impacted profits. The study performed a cost-volume-profit analysis assuming a 20% increase in 2018 sales. The analysis found the contribution margin per unit was Rp1,544, contribution margin ratio was 91%, break-even point was Rp329,416,760 or 193,775 units, margin of safety was Rp407,431,240, margin of safety ratio was 55%, and operating leverage was 2.14%. The study concluded cost-volume-profit analysis could be an effective decision

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    The Analysis of Cost Volume Profit As Profit Planning Tool

    (A Case Study at UD. ABA Jember)

    Desi Indayani, Akhmad Toha, Yeni Puspita


    Business Administration Science, Faculty of Social and Political Sciences, The University of Jember
    Jln. Kalimantan 37, Jember 68121
    E-mail: tohafisip@gmail.com

    Abstract

    The company contrives to get maximum profits through a good management in


    managing the company, so its survival can continue to run. Moreover, this management can
    manage and take decisions that are useful for their survival in order to achieve the determined
    goals. UD. ABA is a business company engaged in the manufacture of tile industry. This
    company experienced decline in sale that could affect the company's profit. Therefore, it was
    needed to conduct cost volume profit analysis which was the most important part in profit
    planning because this tool could assist the managers in making calculation of profit planning
    and make the company's sales budget to be accurate. Hence, the planning and decision
    making in determining the company's profit can be done optimally. This descriptive research
    employed quantitative approach. The analyzed data were production / non-production report
    of Micro, small, and Medium Enterprises (UMKM), product price, sales volume, and actual
    cost of operational and non-operational. Based on the planning of increase in sale as much as
    20% for 2018, this research obtained that the calculation of contribution margin per unit was
    Rp 1,544; contribution margin ratio was 91%; break-even point was Rp 329,416,760 or
    193,775 units; margin of safety was Rp 407,431,240; a margin of safety ratio was Rp 55%;
    and operating leverage was 2.14%. The research finding indicated that the analysis of cost
    volume profit on profit planning at UD. ABA in 2018 could be implemented as a considering
    tool for making decision. The increase of sales volume target at UD. ABA in 2018 influenced
    the changes in production cost, variable cost, and also profit that will be received by the
    company.

    Keywords: profit planning, analysis of cost volume profit

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