Implementation of Business Profit Planning Cost of Production and Cost Volume Profit Analysis in Small and Medium Enterprises at ABC Bakery

Abstract

Implementing family cooperative-based Small and Medium Enterprises (SMEs) activities in Indonesia is one of the priorities in sustainable national economic development. ABC Bakery SMEs also carries out this activity, which produces donut products. The implementation of operating profit planning in cost of production, which was applied during field research, aims to make ABC Bakery SMEs financial planning able to generate healthy profits without excessive worries about the condition of wheat stocks and the demand for sales of donuts in the market which has decreased and resulted in losses. The study’s results obtained the calculation of the Cost of Production (HPP), resulting in a unit price of IDR 2,018. In the second stage, the researcher carried out BEP calculations with the results of the number of donuts that had to be sold, namely 18 units of chocolate sprinkle donuts and nine units of cheese donuts. The BEP calculation is then followed by an analysis of the calculation of profit so that it can cover production costs, so the profit target that must be obtained is IDR 100,000 per day, with ABC Bakery SMEs having to sell 41 units of chocolate sprinkle donuts and 20 units of cheese donuts.