management accounting CVP_ analysis BEP_

management accounting CVP_ analysis BEP_

1. MATRIKULASIPROGRAMMAGISTER
AKUNTANSI
FAKULTASEKONOMI DANBISNIS
UNIVERSITASUDAYANA
Dr. Ayu AryistaDewi, SE.,M.Acc.,Ak.,CA
Materi:
AkuntansiManajemen
Pert 2, 26 Agustus2025

2. MATRIKULASIPROGRAMMAGISTER
AKUNTANSI
FAKULTASEKONOMI DANBISNIS
UNIVERSITASUDAYANA
Dr. Ayu AryistaDewi, SE.,M.Acc.,Ak.,CA
Materi:
AkuntansiManajemen
Pert 5, 2 Agustus2025

3. COST-VOLUME-PROFIT (CVP)
ANALYSIS & BREAK-EVEN POINT

4. REVIEWSESSION
How would you record the following transactions of Company X:
•The company bought a $20,000 car
•The company spent $1,000 for petrol
•The company purchased a $2,000 audio tape
ANSWER:
•1….
•2…
•3…

5. INTRODUCTION TO CVP
Definition: Analyzes the relationship among cost, volume, and
profitfor planning and decision making
Purpose: How changes in sales volume, cost, and price affect
profit.In specific, It can address many issues, such as the number of
units that must be sold to break even, the impact of a given reduction in
fixed costs on the break-even point and the impact of an increase in price
on profit
Assumptions: Linear costs & revenues, constant selling price &
costs, all production sold.

6. CONTRIBUTION MARGIN
CM per unit = Selling Price – Variable Cost per unit.
CM Ratio = CM per unit ÷ Selling Price.
Key in evaluating profitability and break-even point.

7. CONTRIBUTION MARGIN EXAMPLE
Item Amount (Rp)
Selling Price per unit 50,000
Variable Cost per unit 30,000
Contribution Margin per unit 20,000
CM Ratio 40%

8. BREAK-EVEN POINT (BEP)
•It is the point the total revenue equals total cost, the point of zero profit
•We focus on operating profit, instead of net profit
how do you calculate:
1.operating profit?
2.sales revenue ?
3.variable costs?
BEP Formula’s
BEP (units) = Fixed Costs ÷CM per unit.
BEP (sales) = Fixed Costs ÷CM Ratio.
Indicates the level of sales at which the company neither earns nor loses money.

9. BREAK-EVEN CHART
0
100000000
200000000
300000000
400000000
500000000
600000000
Total Revenue
Total Costs

10. MARGIN OF SAFETY
Definition: Excess of actual or budgeted sales over break-even
sales.
Formula: MOS = (Actual Sales – BEP Sales) ÷ Actual Sales.
Indicates risk buffer before losses occur.

11. APPLICATIONS OF CVP
Pricing decisions.
Make or buy decisions.
Evaluating impact of sales mix changes.
Budgeting and profit planning.

12. EXAMPLE PROBLEM
Selling Price = Rp 50,000/unit.
Variable Cost = Rp 30,000/unit.
Fixed Costs = Rp 100,000,000.
Required: Calculate BEP in units & rupiah.

13. SOLUTION
Contribution Margin = 50,000 – 30,000 = Rp 20,000/unit.
BEP (units) = 100,000,000 ÷ 20,000 = 5,000 units.
BEP (sales) = 5,000 × 50,000 = Rp 250,000,000.

14. PRACTICE
Price per unit = Rp 40,000.
Variable cost per unit = Rp 25,000.
Fixed cost = Rp 200,000,000.
Calculate BEP in units & sales.

15. SOLUTION
Contribution Margin = 40,000 – 25,000 = Rp 15,000/unit.
BEP (units) = 200,000,000 ÷ 15,000 ≈ 13,333 units.
BEP (sales) = 13,333 × 40,000 ≈ Rp 533,333,333.

16. OPEN DISCUSSION
1. Why is Contribution Margin more useful than Gross Margin in
CVP?
2. How would CVP differ in service vs manufacturing industries?
3. What risks arise if assumptions of CVP are violated?
4. Should companies automate if fixed costs increase but variable
costs decrease?

17. SUMMARY
CVP links costs, volume, and profit.
Break-even point identifies no-profit, no-loss level.
Contribution Margin is central to CVP analysis.
Margin of Safety measures risk buffer.
Applications: pricing, budgeting, planning, decision-making.