Cost-Volume-Profit Analysis for Managerial Decisions at Ayam Penyet Surakarta in Medan

Abstract

Small food businesses often set prices and targets by estimation, not systematic cost analysis. This descriptive quantitative case study applies cost-volume-profit (CVP) analysis to Ayam Penyet Surakarta, a five-item eatery in Medan, to estimate its break-even point, margin of safety, and operating leverage, and to test four operating scenarios and chicken price changes. Data came from an interview with the supervisor and two weekdays of direct observation (Monday–Tuesday, 5–6 October 2026). Monthly figures are extrapolated from the supervisor’s reported daily average over 28 operating days; they are not measured totals. Sales of IDR 68,880,000 yield a contribution margin of IDR 30,846,000 (44.8%) and operating income of IDR 14,923,708. Break-even is 4,915 units per month (about 176 per day) against assumed sales of 340 per day, giving a margin of safety of 48.4% and operating leverage of 2.07. A target profit of IDR 20,000,000 requires 11,087 units per month. Raising the nasi ayam penyet price gives the largest scenario gain, and each 10% change in chicken price shifts monthly profit by IDR 1,489,600. The business appears safe, but profit depends on one dish and the chicken price. Findings reflect one business, one month, one informant, and two observed days.