Break-Even Point Analysis as a Tool for Profit Planning and Managerial Decision-Making: A Study of Rumah Bunga Medan MSME

Abstract

This study aims to analyze the application of Break-Even Point (BEP) analysis as a tool for profit planning and managerial decision-making at Rumah Bunga Medan, an MSME operating in the florist industry. This study employs a quantitative descriptive approach by examining fixed costs, variable costs, average selling price, sales volume, contribution margin, and break-even point. The analysis also determines the sales volume required to achieve a targeted operating profit. The results indicate that monthly fixed costs amount to IDR 6,000,000, with an average selling price of IDR 150,000 and an average variable cost of IDR 90,000 per product. The break-even point is calculated at 100 products, equivalent to monthly sales of IDR 15,000,000. At a sales volume of 150 products per month, revenue reaches IDR 22,500,000, resulting in an operating profit of IDR 3,000,000. To achieve a target operating profit of IDR 4,500,000 per month, sales must reach 175 products, equivalent to IDR 26,250,000. These findings demonstrate that BEP analysis can support the determination of minimum sales targets, cost control, profit planning, and managerial decision-making. The analysis provides a basis for evaluating the relationship between costs, sales volume, and profitability at Rumah Bunga Medan.