Application Break Event Point Analysis as a Tool of Profit Planning

Fitria Intan 105030200121014Ade Liana Fajrin 105030201121001Mei Yuana 105030201121012

Study Case : PT. KARYA SUTARINDO - PASURUAN

The Owner from Taiwan

Export Oriented

Background

Break Event Point

Information about large of sales to company achieve in order to reach the point , where the company not get loss

and also not get profit

Profit will company get on various product sales level of company

have the way to determine limit of volume minimal may decrease used

margin of safety

PT. Karya Sutindo…

Level profit and sales profit in latest 3 years increase, but the profit ratio in 2009, 2010, and 2011 is decrease

Theoretical Aspect

1. Break Event Point

REVENUE = TOTAL COST

3. Profit Planning

2. BEP analysis A Technique to be learn about

relationship between Cost, Profit, n Volume analysis

• change on selling price• change on fixed and variable cost• change on sales mix.

develop from operational plan for

achieve a dream and purposes of

company

4. Relationship between BEP analysis with Profit Planning

1. Volume on sale2. Selling product price3. Cost

5. Margin of Safety a risk border of decreasing sales until the company can’t to get benefit and not happen loss.

maximum sales volume may can be decrease from planning, so the company hasn’t suffering loss causing decrease on sales volume.

MOS =

This research use quantitative descriptive research with case study approach.Data that use is secondary data. Techniquecollecting data is documentations.

Methodology

Procedure analysis of data

Collecting dataClassification costsSeparate semi-variable costCalculate and analysis BEPCalculate margin of safetyCreate the planning profitDetermine minimal sales levelCalculate margin of safety company salesEffect of factor changing to the BEP

Year Kind of

Product

Selling

Volume

(item)

Selling Price/

Item (Rp)

Selling (Rp)

2009 SCST 174.886 66.100 11.567.235.60

0

SRC 124.958 45.500 5.555.736.000

Total 299.844 17.122.971.60

0

2010 SCST 204.765 68.100 13.978.546.50

0

SRC 185.290 48.500 8.962.315.000

Total 390.055 22.940.861.50

0

2011 SCST 283.681 70.700 20.940.861.50

0

SRC 214.949 49.300 10.596.985.70

0

Total 498.630 30.653.232.40

0

Data Presentation

SALES DATA

Describe 2009 (Rp) 2010 (Rp) 2011 (Rp)

Selling 17.122.971.600 22.940.861.500 30.653.232.400

COGS 11.898.137.602 16.958.907.480 23.522.544.040

Gross Profit 5.224.833.998 5.981.953.660 7.130.688.360

Adm. & General

Exp.

1.188.289.599 1.711.141.351 2.507.708.841

Laba Operasi 4.036.544.399 4.270.842.309 4.622.979.519

Rasio Laba

Operasi

23,57% 18,62% 15,08%

Profit during three year currently (2009, 2010, and 2011) from the table on the top, can be define the average profit, that is: Average profit =

= 19,09%

CONTINUE Comparisons of earnings

Analysis and Interpretation of Data

NO Explanation CostFixed Cost Variable Cost Semi-Variable Cost

( RP ) ( RP ) ( RP )

1 raw material   11.463.148.000  

2 direct employee   10.165.000.000  

3 rescuer material   364.411.200  

4 indirect employee 368.923.900    

5 installation   91.365.400  

6 fuel   36.518.900  

7 electricity of factory     90.996.103

8 maintenance factory machine     115.293.828

9 factory maintenance     49.466.068

10

maintenance factory

transportation     27.114.149

11 depreciation factory drainage 20.364.000    

12 depreciation factory building 64.983.000    

13 depreciation factory machine 134.986.000    

14

depreciation factory

transportation 72.349.000    

15 factory transportation   50.367.200  

16 factory phone and water     23.245.292

17 packing   384.012.000  

       

TOTAL 661.605.900 22.554.822.700 306.115.400

Classification production cost 2011

Profit Ratio

NO Explanation Cost Fixed Cost Variable Cost Semi-Variable Cost

( RP ) ( RP ) ( RP )1 admin & general salary 758.000.000

2 office electricity 56.470.2383 maintenance office building 29.864.0794 maintenance office

transportation18.429.261

5 maintenance tools office 40.751.9786 depreciation office building 49.325.0007 depreciation office

transportation14.648.000

8 depreciation office drainage 43.689.0009 depreciation tools office 33.649.800

10 office transportation 59.136.40011 office telephone and water 26.953.28512 insurance 1.366.791.80

0TOTAL 2.276.103.60

059.136.400 172.468.841

Classification administration and general cost 2011

ExplanationKind of Product

TOTALSCST SRC

sales 20.056.246.700,00 10.596.985.700,00 30.653.232.400,00

variable cost 14.828.855.341,59 7.834.847.326,46 22.663.702.704,05

margin contribution 5.227.391.358,41 2.762.138.337,54 7.989.529.695,95

fixed cost 2.202.729.028,87 1.163.821.148,08 3.366.550.176,95

operational profit 3.024.662.329,54 1.598.317.189,46 4.622.979.519,00

Classification margin contribution n operational profit2011

= 15,08%

Margin contribution > fixed cost

Determine Break Event Point

BEP mix (RP)

= 12.916.475.510,09 sales value when BEP.

Conclusion & Recommendation

Recommendation

• companies should use

BEP analysis for profit

planning appropriately.

• The calculation of the

margin of safety is

recommended that

management can control

sales to prevent a decline

in sales resulted in losses

to the company.

Conclusion in 2011, the company achieved

sales of BEP Rp. 12,916,475,510.09.

margin of safety of 57.86%.

Changes in selling price, fixed

costs and variable costs change

positions BEPchanges in levels of sales

volume, does not affect the

position of the BEP.

Changes in sales mix does not

change the position of BEP

THANK YOU