Cost Volume Profit (cvp) Analysis in Assessing Break-even Point and Fluctuation of Contribution Margin on Pricing Strategy in the Trade Sector
Year: 2026
Type: article
Abstract: This study aims to analyze the application of cost-volume-profit (CVP) analysis in assessing the break-even point and contribution margin fluctuations for pricing strategy formulation in fresh commodity MSMEs, using a case study of Toko Mak Reva. A descriptive quantitative approach was employed, processing primary data from three ten-day observation periods in November 2025. The findings show consistent improvements in the contribution margin ratio and margin of safety across periods, indicating strong financial security. However, sensitivity analysis reveals the business's extreme vulnerability to purchase price volatility, where a 10% increase in variable costs would lead to losses. The study's theoretical contribution lies in integrating perishability risk into the CVP model through the concept of effective variable cost (EVC), which incorporates shrinkage rates into pricing decisions. The proposed framework offers a more adaptive pricing strategy for fresh commodity MSMEs, addressing the gap between conventional CVP analysis and the unique challenges of perishable product trading.
Institution: Universitas Islam Negeri Sumatera Utara
Language: English
Subfield: Accounting
Domain: Social Sciences
SDG: Zero hunger
Open Access status: hybrid
OpenAlex ID: W7202212894