ANALYSIS OF BREAK-EVEN POINT AS A BASIS FOR PROFIT PLANNING: A CASE STUDY OF OSSO COFFEE SPACE IN MEDAN, INDONESIA

Abstract

This study analyzes the break-even point (BEP) as a basis for profit planning at Osso Coffee Space, a food and beverage micro, small, and medium enterprise (MSME) in Medan Sunggal, Medan, Indonesia. Secondary data covering January to September, including the selling prices of 18 beverages, monthly fixed costs, variable cost per cup, and monthly sales volume, were analyzed using cost-volume-profit (CVP) analysis. The analysis covers contribution margin, BEP in units and rupiah, margin of safety (MOS), degree of operating leverage (DOL), target profit, and sensitivity analysis. The average selling price is IDR 26,722 per cup, variable cost is IDR 10,000 per cup, and contribution margin is IDR 16,722 per cup (62.58%). With monthly fixed costs of IDR 14,240,000, the BEP is 852 cups, or IDR 22,755,615 per month. All nine months exceeded the BEP, with an MOS between 7.5% and 51.5% and an average monthly profit of IDR 8,370,302. A target profit of IDR 25,000,000 per month requires 2,347 cups, 73.6% above average actual sales. Raising the average price by IDR 3,000 per cup would lower the required volume to 1,990 cups. The results show that BEP analysis is a practical basis for profit planning in small coffee shops, with pricing and cost control as the main levers.