Soal&Pembahasan CVP Analysis

Summary

In this presentation, Catur Sasongko explains Cost-Volume-Profit (CVP) or Break-Even Point (BEP) analysis in managerial accounting using the example of a bakery selling rainbow cakes. He walks through calculations of BEP in units and sales, demonstrating how to determine the number of units needed to break even or achieve target profits. The speaker also explores factors affecting BEP, including fixed costs, selling price, and variable costs. Additionally, he discusses how changes in price and costs influence BEP and provides strategies to determine the sales needed for profit before and after taxes.

Takeaways

• 😀 Cost-Volume-Profit (CVP) analysis is crucial for understanding how fixed and variable costs impact a company's break-even point (BEP).
• 😀 Break-even point (BEP) in units can be calculated using the formula: BEP = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).
• 😀 To achieve the break-even point, a company must cover both its fixed and variable costs, ensuring no profit or loss.
• 😀 In the example, the break-even point in units for a bakery selling rainbow cakes is calculated to be 900 units per month.
• 😀 The break-even point in revenue can be determined by dividing total fixed costs by the contribution margin ratio, with a target revenue of Rp90,000,000 for the bakery.
• 😀 Factors that reduce the break-even point include decreasing fixed costs, increasing the selling price per unit, or lowering variable costs.
• 😀 Sensitivity analysis shows that an increase in the selling price and a decrease in fixed production costs can significantly lower the break-even point in units, from 900 to 600 units.
• 😀 If a company wants to achieve a target profit before tax, the formula adjusts to include the desired profit, with a target unit sales of 1,200 units for the bakery to reach Rp21,000,000 in profit.
• 😀 To achieve a target profit after tax, the pre-tax profit is first calculated by factoring in the tax rate, and then the required unit sales are determined.
• 😀 The target unit sales for a post-tax profit of Rp25,000,000 would be 1,347 units, based on the tax rate and adjusted profit expectations.

Q & A

What is the main focus of the presentation?

The main focus of the presentation is on Cost Volume Profit (CVP) Analysis, also known as Break Even Point (BEP) Analysis, within the context of managerial accounting.

What are the given variables for Toko Kue Enak's production and sales?

The given variables include: variable production costs per unit (IDR 20,000), fixed production costs per month (IDR 43 million), variable selling & administrative costs per unit (IDR 10,000), fixed selling & administrative costs per month (IDR 20 million), and the selling price per unit (IDR 100,000).

How is the Break Even Point (BEP) in units calculated?

The BEP in units is calculated using the formula: BEP (Units) = Total Fixed Costs / (Price per Unit - Variable Costs per Unit). For Toko Kue Enak, it is 900 units.

How is the Break Even Point (BEP) in Rupiah (sales value) calculated?

The BEP in Rupiah is calculated by dividing the total fixed costs by the Contribution Margin Ratio (which is the Contribution Margin per Unit divided by the Selling Price per Unit). For Toko Kue Enak, the BEP in Rupiah is IDR 90 million.

What factors can reduce the Break Even Point (BEP) in units?

Factors that can reduce BEP include reducing fixed costs, increasing the selling price per unit, or lowering variable costs per unit.

What impact does an increase in selling price and a reduction in fixed production costs have on the BEP?

An increase in selling price and a reduction in fixed production costs both lower the BEP. For example, when the selling price increases to IDR 120,000 and fixed production costs decrease to IDR 34 million, the BEP drops from 900 units to 600 units.

How do you calculate the number of units needed to achieve a pre-tax profit of IDR 21 million?

To calculate the required units, add the target pre-tax profit to the total fixed costs and divide by the Contribution Margin per Unit. For a pre-tax profit of IDR 21 million, Toko Kue Enak must sell 1,200 units.

How do you calculate the number of units needed to achieve an after-tax profit of IDR 25 million?

To calculate the required units for an after-tax profit, first convert the after-tax profit to pre-tax profit by dividing by (1 - tax rate). Then, add the pre-tax profit to the total fixed costs and divide by the Contribution Margin per Unit. For an after-tax profit of IDR 25 million, Toko Kue Enak must sell 1,347 units.

What role does the Contribution Margin Ratio play in the Break Even Point calculations?

The Contribution Margin Ratio is crucial in calculating the BEP in Rupiah. It is used to determine how much each unit contributes to covering fixed costs and generating profit, and it is calculated as the Contribution Margin per Unit divided by the Selling Price per Unit.

What is the significance of the Break Even Point in decision-making for a business like Toko Kue Enak?

The Break Even Point is essential for determining how many units need to be sold to avoid losses. It helps the business understand the minimum sales threshold to cover all costs and guides pricing, cost control, and profit planning decisions.