Cost-Volume-Profit analysis is an alternative tool that helps management in profit planning and decision making. Cost-Volume-Profit analysis is used to search the best and the most profitable combination among price, cost, sales volume, and sales mix. Cost-Volume-Profit analysis enables management to perform break-even analysis, profit target analysis by calculating the desired profit, and sensitivity analysis by examining the impact on profit of various levels of price, cost, and sales volume.
This research aims to determine how are: the cost behaviour, the profit planning, and the implementation of cost-volume-profit analysis in profit planning of CV Salam Rancage. This study was conducted in CV Salam Rancage located at Jalan Pangeran Ashogiri No. 150, Kel. Tanah Baru, Kec. Bogor Utara, Kab. Bogor. CV Salam Rancage is a manufacturer which produces recycled products made from garbages. The products produced by CV Salam Rancage include: bottle craft, fabric craft, and newspaper craft.
This research uses a case study approach. The research method used is an expost facto research, namely a process of research or analysis by assessing or disclosing the relationship between the variable attribute and the other variable based on the existing condition, without given an action, treatment, or manipulation. The data sources used are primary data and secondary data obtained through library research, field research, and internet browsing. The data analysis method used is a quantitative descriptive method.
The analysis results of the research was conducted according to the documents and the financial statement 2014 of CV Salam Rancage, include: 1. The classification of cost based on the cost behaviour consists of variable cost and fixed cost; 2. The sales volume is 2.735 units, the total of sales revenue is Rp 125.554.000,00, the total of variable cost is Rp 103.407.138,96, the contribution margin is Rp 22.146.861,04, the total of fixed cost is Rp 80.026.700,00, and the total of loss is Rp (57.879.838,96); 3. The weighted average contribution margin is Rp 8.106,06 and the weighted average contribution margin ratio is 12,49%; 4. According to break-even analysis, the break-event point (unit) is 9.873 units and the break-even point (rupiah) is Rp 640.712.449,60; 5. According to sensitivity analysis, the changes in selling price by assuming an increase in the selling price per unit by 50% is the best alternative action and deserve to be selected in order to decrease loss, achieve break-even point, and increase profit; 6. The desired profit target for 2015 is Rp 101.250.000,00; 7. According to profit target analysis for 2015, the expected sales (unit) for 2015 is 5.250 units and the expected sales (rupiah) for 2015 is Rp 472.500.000,00; and 8. According to margin of safety calculation for 2015, the margin of safety (unit) for 2015 is 2.250 units, the margin of safety (rupiah) for 2015 is Rp 202.500.000,00, and the margin of safety ratio for 2015 is 42,86%.
Keywords: cost-volume-profit analysis, profit planning