“Cost Volume Profit” Analysis in Financial Planning of Duren Reyrey SOP MSMEs

Abstract

The purpose of this study is to examine the use of the Cost Volume Profit Analysis (CVP) method in financial planning at UMKM Sop Duren Rey Rey. CVP is a valuable analytical tool to help businesses understand the relationship between costs, sales volume, and profit, which allows it to be used as a basis for business choices. Information for this study was collected using a descriptive quantitative methodology that included direct observation, interviews, and financial documents directly from UMKM Sop Duren Rey Rey. Among the factors evaluated were sales volume, selling price, fixed costs, variable costs per unit, and revenue. The analysis revealed that the use of CVP can provide a comprehensive picture of the company's break-even point and estimated profit under different sales conditions. As a result, MSMEs are better able to plan their pricing strategies, cost control, and sales volume goals. These results show that CVP is not only applicable to large enterprises, but also very beneficial for MSMEs in maintaining their financial stability and developing their enterprises sustainably.