Financial and Cost-Volume-Profit Models in Developing a Hotel
Achmad Jaya Adhi Nugraha, Benny Mochtar Effendy Arifin
Journal of Economics, Management and Trade · pp. 81–89 · Published 20 Dec 2023
10.9734/jemt/2023/v29i121177Abstract
Companies in search of profit will create a financial model, modeling that is done correctly will help entrepreneurs in making decisions that must be implemented as a result of changes in parameters. One of the financial models in question is Cost Volume Profit (CVP). When making short-term decisions, CVP calculations are required so that the desired budget or profit target can be determined. The research aims to carry out a CVP analysis of changes in selling price per unit, sales volume, variable costs per unit, and fixed product costs in planning the construction of a hotel. The research is descriptive using a literature review and calculation analysis approach. The research results show that: (1) CVP modeling carried out by entrepreneurs can be said to be risky because if the project is carried out it could experience losses in pessimistic conditions (worst-case scenario), although in optimistic conditions (best-case scenario) this project can experience profits Very large, and (2) income performance through the Theory of Constraint shows that there is a profit during the investment period. From the modeling carried out, entrepreneurs can make decisions for the benefit of the company.
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