Sustainable Profitability through Cost-Volume-Profit Analysis: Evidence from RM Seafood Restaurant

Abstract

The restaurant industry operates in a dynamic and highly competitive environment where managers must
carefully balance pricing strategies, cost structures, and profit targets. This study examines the application of CostVolume-Profit (CVP) analysis as a decision-making tool in RM Seafood Restaurant at Makassar city. CVP analysis
was used to evaluate the break-even point, contribution margin, and margin of safety, providing a structured
framework to understand the relationship between costs, sales volume, and profitability. This research uses a
descriptive quantitative approach with a case study at RM Seafood. The data used consists of primary and secondary
data. The results show that the restaurant achieved sales of Rp3,456,459,091 with a contribution margin of
Rp864,278,351 and a contribution margin ratio of 25%. The break-even point (BEP) was calculated at 47,137 units
or Rp3,035,946,684 in sales, while actual sales exceeded this threshold, resulting in an operating profit of
Rp105,291,679. The margin of safety (MOS) of Rp420,512,407, equivalent to 12%, indicates a sufficient buffer
against potential sales decline. Furthermore, the degree of operating leverage (DOL) of 8.2 highlights the company’s
sensitivity to changes in sales volume. These findings demonstrate that CVP analysis provides valuable insights for
cost control, pricing, and profit planning, thereby strengthening RM Seafood’s competitive position in the culinary
industry.