COST VOLUME PROFIT ANALYSIS AS A PROFIT PLANNING INSTRUMENT

Abstract

Abstract: Profit planning is very important for the survival of the company
because with profit planning, management can manage the strategies used in the
company. One of the tools to do profit planning is to analyze the cost of profit
volume. These three components are closely related in a company's profit
planning. Cost, volume and profit analysis (Cost Volume Profit Analysis) is the
main element in preparing the income statement in a company. Cost, volume and
profit analysis is an examination of how total revenue and total costs change as
sales volume changes. The method and type of research used is descriptive
qualitative with primary data sources and secondary data, which is processed
with the help of Microsoft Excel application to separate several cost data, as well
as processing financial data with analysis of margin of safety, break even point,
margin of safety, and analysis. profit planning. The results of this study are the
MSMEs of Herbal Medicine Powder Sari Alam Trenggalek from 2018-2020 sales
are always above the break even point with a high margin of safety ratio. The
profit target in 2020 is not in accordance with the plan. Therefore, MSME Herbal
Medicine Bubuk Sari Alam Trenggalek must increase the selling price of each
product by 25% and increase sales volume by 16,439 units so that the planned
profit target is achieved.