Determining the Cost of Production, Break-Even Point, and Sensitivity Analysis of Oyster Mushroom Chips Production

Abstract

Oyster Mushroom Etam (JATAM) is the only MSME producing packaged oyster mushroom chips in Samarinda City. This study aims to determine the calculation and comparison of production costs currently applied by JATAM MSME, using the full costing and variable costing methods, determine the break-even point, and measure the business's sensitivity to changes in the break-even point. The research method used was a case study. Data were analyzed using production cost calculation methods, namely full costing and variable costing, as well as break-even point (BEP) analysis and sensitivity analysis. The results show that JATAM MSME's method resulted in a production cost of IDR 12,182.20 per package. The full costing method resulted in the highest production cost of IDR 13,077.86 per package because it takes into account all variable and fixed costs, while the variable costing method resulted in a production cost of IDR 12,832.20 per package. The break-even point (BEP) for sales revenue was IDR 400,812.00, with a production volume of 2,004.06 grams (23 packages of JATAM chips). The sensitivity of JATAM chips production is seen in the 7% increase in production costs, which resulted in an increase in the BEP for sales revenue to IDR 546,694.00, and an increase in the BEP for production volume to 2,733.47 grams (32 packages of JATAM chips). JATAM MSMEs are advised to use the full costing method in determining the cost of goods manufactured, so that all production cost components can be fully and accurately accommodated. Furthermore, it is important for MSMEs to periodically calculate the break-even point and conduct sensitivity analysis to anticipate cost changes that could impact business viability.