BREAK-EVEN POINT ANALYSIS OF BAKSO BAKAR BU DEDE, A MICRO CULINARY ENTERPRISE IN MEDAN, INDONESIA

Abstract

Break-even point analysis can help micro and small enterprises identify the sales level required to cover operating costs. This study analyzes the break-even point of Bakso Bakar Bu Dede, a small culinary business located in Medan, Indonesia. The study uses a descriptive qualitative approach, with cost and selling-price information obtained directly from the business owner. The information was organized into fixed costs, variable costs, and selling price, and then analyzed using contribution margin and break-even point calculations. The recorded fixed cost was IDR 300,000, while variable costs amounted to IDR 60,000 for 100 skewers, equivalent to IDR 600 per skewer. At a selling price of IDR 1,000 per skewer, the contribution margin was IDR 400 per skewer, or 40% of sales. The calculation indicates a break-even point of 750 skewers, equivalent to sales revenue of IDR 750,000. At this level, revenue equals total costs and the business neither earns a profit nor incurs a loss. A sales scenario of 1,000 skewers produces estimated revenue of IDR 1,000,000 and a profit of IDR 100,000, provided that the selling price and unit variable cost remain unchanged. These results can serve as a practical reference for setting minimum sales targets and reviewing the relationship between price, costs, and sales volume.