Implementation of Business Profit Planning Cost of Production and Cost Volume Profit Analysis in Small and Medium Enterprises at ABC Bakery

. Implementing family cooperative-based Small and Medium Enterprises (SMEs) activities in Indonesia is one of the priorities in sustainable national economic development. ABC Bakery SMEs also carries out this activity, which produces donut products. The implementation of operating profit planning in cost of production, which was applied during field research, aims to make ABC Bakery SMEs financial planning able to generate healthy profits without excessive worries about the condition of wheat stocks and the demand for sales of donuts in the market which has decreased and resulted in losses. The study's results obtained the calculation of the Cost of Production (HPP), resulting in a unit price of IDR 2,018. In the second stage, the researcher carried out BEP calculations with the results of the number of donuts that had to be sold, namely 18 units of chocolate sprinkle donuts and nine units of cheese donuts. The BEP calculation is then followed by an analysis of the calculation of profit so that it can cover production costs, so the profit target that must be obtained is IDR 100,000 per day, with ABC Bakery SMEs having to sell 41 units of chocolate sprinkle donuts and 20 units of cheese donuts.


Introduction
Implementing family cooperative-based Small and Medium Enterprises (SMEs) activities in Indonesia is one of the priorities in sustainable national economic development.The prospect of this economic unit is the root and backbone of the Pancasila economic system, which aims to reduce disparities between income groups and business actors and alleviate poverty by absorbing labour.More than that, its development can broaden the basis of the economic scope.It can significantly contribute to accelerating structural change, increasing the regional economy and national economic resilience [1].However, conditions often found in SMEs only focus on how to make their business profitable and survive rather than on how to optimize profits and grow businesses.One way to obtain an optimum profit is to set an optimum selling price by calculating and determining the cost of production and cost of goods sold [6].
The conception of this research targets business actors in food processing.One of the superior products of ABC Bakery SMEs is donuts.This processed product was chosen based on the high market opportunity for local and foreign demand after agricultural commodities in Indonesia.Because of this, economic opportunities must also be balanced with a strategy for implementing the cost of production for potential gains without discovering losses in the final or future accounting period.Bakery products with the main ingredient of wheat are one of the most frequently consumed commodities by Indonesians.This plant is not a staple food for the people of Indonesia, but its role has become increasingly important in recent years [5].Problems for ABC Bakery SMEs emerged when the world food crisis occurred due to the conflict between the Russian and Ukrainian wars affecting wheat distribution materials.In the food sector, the increase in wheat prices also triggered price fluctuations for staple food commodities such as donuts, noodles and wheat flour, essential ingredients.Since the conflict, global wheat prices have increased by 5.34% to IDR 141,373 per bushel [8].
ABC Bakery SMEs business plans to be profitable and healthy without excessive worry about the condition of wheat stocks when they show low levels if this occurs in the market.The calculation of the cost of production can affect the determination of the selling price because the selling price must cover the production costs incurred by the company to obtain profits as expected.In general, there are two ways to determine the cost of goods manufactured: full costing and variable costing.The full costing method consists of production costs (raw material, direct labour, variable, and fixed overhead costs) plus nonproduction costs (marketing, administrative, and general costs).Meanwhile, the variable costing method is a method of determining the cost of production that only considers variable production costs into the cost of production, which consists of raw material costs, direct labor costs, and variable factory overhead costs [3].

Location and time of research
The research location and data collection were carried out in Bogor City, as an output industry target of marketing and sales of ABC Bakery SMEs .The research time will be carried out in April-August 2022, with the sector allocation of hours following the willingness and licensing of SMEs and research campus educational institutions.

Data analysis method
The data analysis method used in this study is quantitative descriptive data analysis.The data provided by ABC Bakery SMEs is presented in tables such as production costs, production capacity, previous year's financial reports and the selling price setting process, which is then translated into a programming language for building applications.Implementation was also carried out with the support of literature based on the reputation of national and international articles to improve the quality of the observations.This conception is done by matching data processing from historical documents of SMEs internal bookkeeping and future financial planning.The two data are then processed again based on the calculation of the cost of production (HPP) and cost Volume Profit analysis (CVP) (Figure 1).Not only calculating financing, but this study also uses the profit calculation method to suggest and evaluate ABC Bakery SMEs. .

Calculation of production costs
The first activity was carried out by researchers namely planning the calculation of the Cost of Production (HPP).Based on the analysis of the company's internal documents obtained by researchers, the data processing results show that all production costs for half the dough donuts produce 30 units of donuts.Details of the allocation of raw material expenses are charged to IDR 28,875, and labor costs IDR 9,375.The application of direct labour financing is set at IDR 75,000/day.Researchers also get details of overhead costs from the cost of gas and equipment depreciation with an estimated IDR 5,000 and indirect labour costs at the same rate as direct labour.Raw material costs, direct labor and overhead costs are all added up and divided by the number of production units to produce a production cost per unit of IDR 2,018/price (Table 1).It is also known that financing details for chocolate sprinkle topping on donut products at ABC Bakery SMEs are subject to an additional fee of IDR 1,800 and cheese Rp 2,880 (Table 2).The calculation above is then used as a reference for researchers in submitting evaluations to economic actors in order to avoid inaccuracies or even the absence of a calculation of the cost of goods produced can cause losses to business actors (Rumambi et al., 2022 [5]) .

Production Profit Planning
The stage when you know the cost of production, then do the calculations using Cost Volume Profit analysis.In determining the CVP analysis, the costs incurred must first be grouped into fixed costs and variable costs.Labour costs are included as a fixed cost category of IDR 75,000.Based on the category of fixed costs and production variable costs can be seen in Table 3.After the variable and fixed costs are grouped, the next step is calculating the donut production's breakeven point (BEP).The fixed cost for donut production only comes from depreciation costs.The production cost per unit and the selling price per unit must be calculated first to calculate the BEP value.The desired profit is 50% of the production price, but the price is rounded to the nearest number for convenience.Chocolate sprinkles donuts are sold at IDR 6,000 per unit, and cheese donuts IDR 7,000 per unit (Table 4).Because there are two types of products, the break-even point package is calculated first, it is assumed that for the 30 units of product produced, the sales mix of chocolate sprinkle and cheese donuts is 2:1.The package BEP calculation can be seen in Table 5. Variable costs consist of variable production costs per unit added with topping costs (Table 5).

Calculation (Break Even Point) BEP
Break Even Point (BEP) is a condition in which the company does not make a profit and does not suffer losses in its operations.In other words, revenues and costs are in the same E3S Web of Conferences 454, 03020 (2023) ICAS 2023 https://doi.org/10.1051/e3sconf/202345403020condition, so the company's profit is zero (total revenue = total costs).BEP analysis is an analytical technique to study the relationship between sales volume and profitability [4].This BEP calculation is carried out by further researchers with the formula: BEP Package = This calculation can cover production costs.To reach the break-even point, we must sell 18 units of chocolate sprinkle donuts and nine units of cheese donuts.Break-even point analysis is very useful for SMEs as a tool to analyze changes in selling prices, cost of goods and the amount of sales or production levels.Using BEP, the company can anticipate the number of losses and predict sales profits if sales targets are set [2].
Analysis of the previous BEP calculation is also part of responding to corporate social responsibility.Corporate social responsibility is a company's social responsibility in managing its business to produce all positive things that affect the environment, not only for investors and creditors but also for the wider community [9].

Calculation of target profit
Calculating profit targets also emphasizes SMEs to anticipate illegal manipulation from someone.Profit manipulation is an opportunistic act to manipulate financial statements by taking advantage of the concessions from accounting policy opportunities in the permitted financial reporting process [7].Profit target calculation is used to make profit planning desired by the company.It is assumed that this donut business wants a profit of IDR 100,000 per day, so the number of donuts that must be sold is: The above calculation is said to cover production costs and achieve a profit target of IDR 100,000 per day, with ABC Bakery SMEs having to sell 41 units of chocolate sprinkle donuts and 20 units of cheese donuts.

Conclusion
The results of the conclusions from the data and calculations in the discussion section are then used as suggestions and evaluations for ABC Bakery SMEs, as follows: 1. Calculation of the cost of Cost of Production (HPP) produces a price per unit of IDR 2,018.This analysis is used as a reference for ABC Bakery SMEs if the economic actors of ABC Bakery SMEs want to get a healthy profit.2. BEP calculation based on analysis of company documents shows that for donuts to reach BEP, the number of donuts sold for chocolate sprinkle Donuts is 18 units, and for Cheese Donuts is nine units.BEP analysis, in general, can provide information to leaders on the to reach BEP the number of donuts sold is: Chocolate sprinkle donuts = 2 x 9 = 18 units Cheese Donuts = 1 x 9 = 9 units.

Table 2 .
Calculation of the cost of additional topping toppingsCost Per Unit (Rp) Topping Fee (Rp) Cost/Unit + Topping (Rp)

Table 3 .
Classification of fixed costs and variable costs of donut production

Table 4 .
Production cost and selling price per unit Source: Data processed by the author (2023)

Table 5 .
Calculation of package contribution margin