Cost of production, break-even point and sensitivity of honje processing into honje juice

Honje juice agro-industry is one of the industries that process honje as raw material into processed products in the form of drinks that are ready for consumption. This study aims to determine the amount of total costs, cost of goods produced, break-even point of sales value and production volume, and the level of sensitivity of honje juice agro-industry. The research was conducted at Luthfi Food Company, one of whose products is Honje Lakaku Juice. The research method used is a case study. The analysis used is total cost analysis, cost of goods produced, break-even point and sensitivity. The results showed that the total production cost of honje into honje juice was IDR 446,156.95 in one production process, the cost of production was IDR 4,055 per 250 ml, the break-even point of honje juice sales value was IDR 64,810.38 and the break-even point of production volume was 1,620.26 ml (7 bottles of honje juice). The sensitivity of honje to honje juice is seen in the price increase of honje by 400 percent, this causes an increase in sales value to IDR 113,799.34, and an increase in production volume to 2,844.98 ml (11 bottles of honje juice).


Introduction
Indonesia is one of the regions that has a fairly high biodiversity, one of which is the honje laka plant or kecombrang has the scientific name Etlingera hemisphaerica is one of the spices and medicinal plants that are widely spread from Thailand, Malaysia, Indonesia and New Guinea and belongs to the Zingiberaceae family.Many species are useful to humans as food, seasoning, medicine, or as ornamental plants [1].Many study findings that Etlingera have been to exhibit pharmacological properties, including antibacterial [2], antidiabetic [3], cytotoxic action [4], protective impact against mercury chloride poisoning [5], and antioxidant [6].
Honje laka is known by various names including kencong or kincung in North Sumatra, kecombrang in Java, bongkot in Bali, sambuang in West Sumatra, bunga kantan in Malaysia and honje in Sunda [7].People recognize and distinguish two species based on the color and undersurface of the leaves.Honje with green leaf undersurface is called honje hejo with the scientific name Etlingera elatior (Jack) R.M. Sm. and purplish red leaf undersurface is called honje beureum with the scientific name Etlingera hemisphaerica (Blume) R.M.As the growth and development of both honje has reddish green leaf undersurface [8].
A plant that was once only a wild plant turns out to have a fairly high selling value, even honje became one of the export commodities as much as 500 kilograms sent to Malaysia.Through the 1302 (2024) 012122 IOP Publishing doi:10.1088/1755-1315/1302/1/012122 2 Pekanbaru Agricultural Quarantine, Dumai working area, honje is exported twice a month on average [9].
The nutritional content of honje laka includes energy, carbohydrates, water/minerals, fat, protein, magnesium, iron phosphorus, calcium, potassium and zinc.Judging from some of the nutritional content of honje laka, it can be concluded that the uses of honje laka are definitely not small, including treating skin diseases such as measles, curing anemia or lack of blood, strengthening bones which are very good for growth, preventing osteoporosis, improving the performance of the brain which can strengthen memory, preventing fluid deficiency, natural energy boosters [10].
The properties contained in honje laka are restoring stamina, eliminating colds, lowering cholesterol, high blood pressure, and others.In addition, honje flowers can eliminate body odor because honje flowers contain essential oils, saponins, and plavoinoids.This is what attracts consumers to consume this drink because of the properties contained in it [11].
Stated by [12] that agricultural products generally have perishable properties, rot quickly (perisable), require a large storage area (volumenious), have heavy scales (bulky).Based on the characteristics of agricultural products, it implies that it requires separate and distinctive handling for each agricultural product in its marketing activities.
One handling can be done by processing raw materials into processed products.Processed products are food or beverages resulting from processing in a certain way or method, with or without additional ingredients.One of the processed products is Lakaku Honje Juice, which is made by MSME business actors processing honje into honje juice.The business actor was originally a seller who marketed and sold honje juice owned by other sellers, then took the initiative to carry out his own production because when demand increased, there was always a lack of availability and honje juice products arrived late according to consumer demand.
Honje Lakaku Juice is one of the processed products ready for consumption with honje laka as the basic ingredient.This honje juice business has been established for 7 years, namely around 2015.Since its establishment until now, the honje juice industry has faced obstacles and challenges, but with tenacity and perseverance, the honje juice industry continues to stand and grow.In addition to marketing honje juice in Tasikmalaya City, honje juice products have been marketed outside the city such as Ciamis, Bandung, Jakarta, Majalengka, even to Bali and Jambi according to Maman as a Lakaku Honje Juice business actor.Then what is currently a problem is that MSMEs do not calculate the cost of goods produced, the break-even point of sales value and production volume, sensitivity analysis or sensitivity analysis of possibilities that occur in the future and have not recorded detailed expenses and income and good financial management.
States by [13] that in carrying out the production process, it is also necessary to know about the break-even point, so that it has a benchmark or reference in the production process.The break-even point is a point where costs and revenues are balanced, neither experiencing losses nor profits.One of the uses of break-even point analysis is that companies can find out the minimum number of products that must be sold so that the company does not suffer losses.
Agricultural products that are seasonal in nature will not last long, which of course provides an opportunity for middlemen to control the price of honje laka and sensitivity analysis is an analysis carried out to determine the consequences of changes in production parameters on changes in production system performance in generating profits so that later business people have an overview in their business.
Based on the description above, the authors are interested in research on "Cost of Goods Produced, Break-even Point and Sensitivity of Honje Processing into Honje Juice" which is a case study at the Luthfi Food company with Honje Lakaku Juice products on Jalan Ampera Barat Babakan Cikiara, Panglayungan Village, Cipedes District, Tasikmalaya City.

Research Method
The research was conducted from March to October 2022 at the Luthfi Food Company located on Jalan Ampera Barat Babakan Cikiara, Panglayungan Village, Cipedes Subdistrict, Tasikmalaya City with the consideration that the location is the only Food MSME that processes honje into honje juice in Tasikmalaya City [14].
The research method used is a case study on the business of processing honje into honje juice with a product called Lakaku Honje Juice.The case study method is an approach to research that is case in nature, so it cannot be generalized [15].
The research object was determined purposively sampling with the consideration that the agroindustry is the only one that develops honje processing business into honje juice in Tasikmalaya City continuously until now.The types and techniques of data collection taken in this study consist of primary data was obtained from direct observations in the field and through interviews with parties related to the research topic, namely honje juice agroindustry business owners and secondary data is obtained from literature studies by searching for literature, from related agencies.
The analysis used in this research is total cost analysis, cost of goods produced, break-even point and sensitivity.The following is the analytical framework used in the research: a.The analysis used to determine the total cost according to [16] is written as follows: TC = TFC + TVC (1) Description: TC: Total Cost; TFC: Total Fix Cost; TVC: Total Variable Cost b.The analysis used to determine the cost of goods produced according to [17] is written as follows: Cost of Goods Description: TC: Total Cost; Q: Quantity of production c.The analysis used to determine the break-even point of sales value and production volume according to (Soehardi Sigit, 1990) is written as follows: (4) d.Sensitivity analysis of honje processing into honje juice using the replacement value method by replacing the value of sensitive or volatile components.Sensitivity analysis in this study was conducted using variable cost increase parameters.The sensitivity analysis formula according to [18] is as follows: Sensitivity =     −  (5) Description: FC: Fix Cost; VC: Variable Cost; S: Sales Volume

Respondents
The respondent in this study is the owner of the Honje Lakaku Juice agro-industry business named Maman Hermana, aged 50 years.The last education taken is Senior High School.The respondent's business experience is 8 years.Experience is something that has been experienced, with experience it is hoped that something that has been experienced by respondents in the past can be a lesson in the future until the business is consistent and advanced because every business must have ups and downs.The number of family dependents of the respondent is 2 people consisting of wife and children.

Profile of Honje
Juice Agro-Industry.The honje juice agro-industry has a company name, Luthfi Food, the name Luthfi Food is taken from the name of the respondent's first child, and for the product name, Honje Lakaku Juice, which is taken from the name of the raw material, honje laka from Pangandaran.Honje juice agro-industry was established in 2015 which is located on Jalan Ampera Barat Babakan Cikiara, Panglayungan Village, Cipedes Subdistrict, Tasikmalaya City.

4
Honje juice agro-industry does not have an organizational system and does not apply a management system, but in its implementation the duties and authorities of the workers have been agreed upon.Respondents as business owners are fully responsible for all risks and activities of their business.Administration and finance are managed directly by the business owner, but the flow of money in and out is not recorded and bookkeeping has not been implemented.
The honje juice agro-industry has 2 non-family workers, all of whom are male, and family workers, namely the respondent and his wife.One production process can be carried out by 2 workers with a maximum production capacity of 82,500 ml, if the demand for honje juice increases, the respondent adds workers.

Capital.
The source of initial capital used by respondents was from their own capital or savings from working at a company in Garut.The amount of initial capital is around IDR 150,000 with details of the purchase of honje, sugar, water and bottle packaging for equipment used relying on existing household appliances.

Raw Materials and Supporting Materials.
The main raw material for honje juice agro-industry is ripe dan it has blackish-brown colors.Respondents obtain raw materials from farmers or middlemen, the nearest raw materials are in the Cikurubuk market.If there is no availability of raw materials in the nearest place, honje laka is obtained from the Langkaplancar and Pangandaran areas, precisely in the Cijulang and Cigugur areas.

Selling Price and Marketing Results
. The results showed that the selling price of honje juice is IDR 10,000 per 250 ml (1 bottle), marketing the results is done through word of mouth about the properties and benefits of honje laka juice.Then in one production process, honje juice products will be sold to resellers, lemona, saung jembar, sambel hejo, certain activities that are followed and utilize social media including Facebook and WhatsApp applications.Respondents have not been able to enter their products into the mall, because they do not yet have a certificate or permit from BPOM, but have attempted the licensing process but did not continue because the business requirements must be separate from the residence, while the honje juice production site is still integrated with the respondent's residence.

Honje Juice Production Process.
The honje juice production process is one of the steps involved in producing honje juice.In producing honje juice, there are several stages of the production process, including: a. Material preparation: The materials used to process honje into honje juice require 6 kilograms of honje, which later shrinks to 5 kilograms due to the honje washing process, 2.5 kilograms of sugar, and 28 liters of water.b.Washing process: The honje fruit is washed using running water until it is clean from dirt.The hairs on the outside of the honje fruit are also removed by scraping or scraping.c.Pounding process: Pounding honje using a stone mash, for the results of the mash does not need to be smooth, the important thing is that the honje has been divided and the honje seeds are visible.d.Boiling process: Boil about 9.5 liters of water until it boils, put 2.5 kg of honje that has been pounded, do not forget to boil 2.5 kg of sugar with 9 liters of water in a different pot.The separation of this decoction aims to maintain the sour taste and content of honje.Do the same boiling for the remaining half of the honje raw materials.e. Filtering process: When boiling honje, foam will appear or float and seeds will appear, so do filtering using a stainless filter.After boiling, turn off the heat from the honje and sugar stew.f.Mixing process of honje cooking water and sugar: Combine the honje cooking water and granulated sugar in a larger pot.The total amount of honje and sugar in the pot is about 27,500 ml.g.Cooling process: Cool the honje juice to room temperature of about 21-30 ºC.Cooling at room temperature is believed to retain the special flavor compared to cooling with a fan or air conditioner.
h. Packaging Process: Packaging of honje juice is done after it has cooled down completely.Pour some of the honje juice into a water dispenser, pack it directly using a 250 milliliter bottle, then label the outside of the bottle.Packaging aims to accommodate honje juice so that it can be sold and reach consumers.

Business Analysis
3.3.1.Fixed Costs.Fixed costs are costs that are not influenced by the size of production.Fixed costs incurred by honje juice agro-industry can be seen in Table 1.Based on Table 1, the amount of fixed costs incurred by respondents for honje juice agro-industry business amounted to IDR 40,830.54consisting of land and building tax, depreciation of equipment and interest on fixed capital of land and building tax, depreciation of equipment and interest on fixed capital.The largest fixed cost expenditure was on equipment depreciation.This occurred because there are various tools used in the process of making honje juice.

Variable Costs.
Variable costs are costs that change according to the amount of production.Variable costs incurred by honje juice agro-industry can be seen in Table 2. Based on Table 2, the total of variable costs incurred by honje juice agro-industry in one production process amounted to IDR 405,326.41.The largest cost incurred was labor cost amounting to IDR 140,000 (34.54%) of the total variable cost.Labor wages are paid in units of days of activity from washing honje, mashing, boiling honje and sugar until packing of honje juice.At the time of the research, the labor required to produce 110 bottles only required 2 people.

Total Cost.
Total costs are the overall costs incurred by respondents during the production process in the form of fixed costs and variable costs.The total costs incurred by honje juice agro-industry can be seen in Table 3.Based on Table 3, the total cost incurred by honje juice agro-industry in one production process is IDR 446,156.95.

Revenue.
Based on the results of the research, the revenue obtained by honje juice agro-industry in one production process is the production of honje juice multiplied by the selling price prevailing at the time of the research.The production yield obtained is 27,500 ml or equivalent to 110 bottles, with a maximum capacity of 82,500 ml or equivalent to 330 bottles.The selling price is IDR 10,000 per 250 ml, resulting in a revenue of IDR 1,100,000.

Total Income.
Revenue is a description of the net profit from a honje juice agroindustry business activity.The calculation of income is the difference between total costs and revenue.The income received was IDR 653,843.05,where the revenue was IDR 1,100,000 and the total cost was IDR 446,156.95.

Cost of Goods
Produced.The calculation of the cost of goods produced is important to determine the selling price that will be given to consumers in accordance with the costs incurred during the production process, calculated between the division of total costs and the number of products produced in one production process and assuming the product is sold out.The cost of production of honje juice agro-industry is IDR 4,055 per 250 ml.The selling price of respondents to consumers is IDR 10,000, meaning that the selling price is higher than the cost of production, the honje juice agro-industry makes a profit of IDR 5,945, otherwise if the selling price is lower than the cost of production, the agro-industry experiences a loss.

Break-even Point
Analysis.Break-even point analysis is a method or technique used by company managers to determine the level of sales the company does not experience profits and does not experience losses [19].
Honje juice agro-industry in running its business tries to use costs efficiently, so as to obtain the maximum production and profits so that it is expected to be able to cover all production costs incurred.The following break-even point curve for honje juice agro-industry is presented in Figure 1.Based on Figure 1, it is known that honje juice agro-industry breaks even at a sales value of IDR 64,810.38 and at a production volume level of 1,620.26ml or equivalent to 7 bottles.At this level of sales the company will not make a profit nor will it suffer a loss.New profits will be obtained if the sales level is above the sales value.If you look at the profit and loss areas, under these circumstances the honje juice agro-industry business still provides a profit that is worth trying, where the difference in the profit area is greater than the loss area.

Sensitivity Analysis
Sensitivity analysis is used to determine changes in the break-even point caused by changes in fixed or variable costs, production quantities and selling prices.Based on the respondents' experience, the changes that have been experienced are the increase in honje and sugar prices.The price of honje when it increased was IDR 50,000 per kg from the initial price of IDR 10,000.The following simulation table that occurs due to changes in honje juice agroindustry production parameters can be seen in Table 4. Table 4 shows that the break-even point of sales value and production volume changes as a result of an increase in variable costs.Price increases in variable costs can be caused by several conditions such as weather, climate, economic situation and availability of goods in the market.The following changes in the break-even point when variable costs increase can be seen in Figure 2. Based on Figure 2, it shows that the break-even point of sales value has shifted upwards by IDR 113,799.34 and the break-even point of production volume of honje juice agro-industry has shifted to the right by 2,844.98 milliliters or the equivalent of 11 bottles, so that the profit area shrinks and the loss increases.At this point the company does not experience losses and profits or the company has covered the fixed and variable costs of 11 bottles of honje juice.As the price of inputs increases while the price of outputs remains fixed, the honje juice agro-industry business is still feasible to operate or continue, because the revenue generated is still above the break-even point of sales value and production volume.

Conclusions
Based on the results of the research and discussion, the conclusions in this study are total cost of honje juice agroindustry in one production process is IDR 446,156.95.The cost of production of honje juice agro-industry is IDR 4,055 per 250 ml.The break-even point of honje juice agro-industry sales value is IDR 64,810.38 and the break-even point of production volume is 1,620.26ml or equivalent to 7 bottles.The sensitivity of honje juice agro-industry is seen in the increase in raw material prices by 400 percent.This causes an increase in the sales value of IDR 113,799.34, and the production volume to 2,844.98 ml or equivalent to 11 bottles.The honje juice agro-industry business is still feasible because the breakeven point is still below the sales value and production volume.

Suggestions
Based on the results of the research and discussion, the following suggestions can be made: There is a need for financial recording and management, in order to provide clearer and more responsible information, to be tangible evidence of the occurrence of each transaction, and to provide a reference for future transaction records.Honje juice agro-industry can separate depreciation costs to be used in the future to buy new production equipment, and set aside some of the profits to buy a company production site so that the business grows and can re-register the BPOM license.
Description: FC: Fix Cost; VC: Variable Cost; S: Sales Volume BEP of Production Volume =

Figure 1 .
Figure 1.Break-even point graph of Honje Juice Agro-industry Description: TC1 = First total cost; VC1 = First variable cost; BEP1 = First Break Event Point

Table 1 .
Total Fixed Costs of Honje Juice Agroindustry

Table 2 .
Total Variable Costs of Honje Juice Agro-industry

Table 3 .
Total Cost of Honje Juice Agro-industry

Table 4 .
Simulation of Sensitivity Analysis of Honje Juice Agro-Industry