Production Cost Management

Oct 13, 2025 by thesweetdesigns.com 58 views

Introduction

The wet sago manufacturing industry in Langkat Regency has been a significant contributor to the local economy, utilizing sago stems (Metroxylon sp) as the main raw material. With a growing demand for wet sago products, it is essential to conduct a thorough financial analysis of this industry to determine its feasibility and potential for growth. This study aims to provide an in-depth analysis of the financial prospects of the wet sago manufacturing industry in Langkat Regency, using a purposive approach to select the study area and sampling method.

Methodology

The study employed a census method, where the entire wet sago manufacturing industry in the area was taken as a sample, with the industrial owner as respondents. Data collection consisted of two types: primary data, obtained through direct interviews, and secondary data, obtained from related institutions or agencies. The results of the analysis provide valuable insights into the financial prospects of this industry.

Main Research Findings

Business Feasibility

The industry of making wet sago in the study area is proven financially feasible with an average value of NPV (Net Present Value) of Rp 965,756,453, which is far above the break-even point. This shows that investment in the sector is potentially beneficial, indicating a high return on investment.

Monthly Revenue

The average revenue received by respondents from the business of making wet sago reaches Rp 51,963,700 per month or Rp 623,565,000 per year. This figure shows a significant potential income for business actors, making it an attractive investment opportunity.

Net Income

After considering operational costs, the average net income of respondents is Rp 17,776,651 per month, which is equivalent to Rp 213,323,416 per year. This indicates that this industry is not only profitable in terms of revenue, but also in terms of net profit, providing a stable source of income for business actors.

Product Added Value

The average added value of wet sago products in the study area is Rp 238 per kilogram. This shows the existence of a fairly good profit margin from each kilogram of sago produced, making it a competitive product in the market.

Production Volume

The average volume of wet sago production per process has reached more than the break-even point, which is around 1,470 kg, while the Break Even Point (BEP) production value is at the level of 617.19 kg. This shows efficiency in production that can increase industrial competitiveness, making it an attractive investment opportunity.

Production Costs

The average cost incurred for the production process has exceeded the break-even point, amounting to Rp 8,547,741. The BEP value in rupiah is Rp 756,395, showing that the industry can operate more efficiently, where production costs can be covered with receipts obtained.

Further Analysis

From the results of the analysis above, it appears that the wet sago manufacturing industry in Langkat Regency has a significant potential to be developed. High financial feasibility and promising income are an attraction for investors and local entrepreneurs. In addition, significant added value per kilogram of products provides competitive benefits in the market.

Increased production volume also reflects the existence of strong demand for wet sago, which can be an opportunity to increase business scale. However, business actors need to pay attention to production costs to ensure that they can survive and develop in industries that may face market fluctuations.

Conclusion

Overall, the wet sago manufacturing industry in Langkat Regency shows positive prospects, which are expected to provide economic benefits for the local community and strengthen the agricultural sector in the area. With good management and support from the government, this industry has the potential to become one of the significant regional economic drivers.

Recommendations

Based on the findings of this study, the following recommendations are made:

Investment Opportunities: The wet sago manufacturing industry in Langkat Regency offers significant investment opportunities, with high financial feasibility and promising income.
Business Scale-Up: The industry has the potential to increase business scale, driven by strong demand for wet sago products.
Production Cost Management: Business actors need to pay attention to production costs to ensure that they can survive and develop in industries that may face market fluctuations.
Government Support: The government should provide support to the industry, including infrastructure development, market access, and training for business actors.

By implementing these recommendations, the wet sago manufacturing industry in Langkat Regency can reach its full potential, providing economic benefits for the local community and strengthening the agricultural sector in the area.

Q: What is the main raw material used in the wet sago manufacturing industry in Langkat Regency?

A: The main raw material used in the wet sago manufacturing industry in Langkat Regency is sago stems (Metroxylon sp).

Q: What is the purpose of the study?

A: The purpose of the study is to conduct a thorough financial analysis of the wet sago manufacturing industry in Langkat Regency to determine its feasibility and potential for growth.

Q: What is the sampling method used in the study?

A: The study employed a census method, where the entire wet sago manufacturing industry in the area was taken as a sample, with the industrial owner as respondents.

Q: What are the two types of data collected in the study?

A: The two types of data collected in the study are primary data, obtained through direct interviews, and secondary data, obtained from related institutions or agencies.

Q: What is the average value of NPV (Net Present Value) of the industry?

A: The average value of NPV (Net Present Value) of the industry is Rp 965,756,453, which is far above the break-even point.

Q: What is the average revenue received by respondents from the business of making wet sago?

A: The average revenue received by respondents from the business of making wet sago reaches Rp 51,963,700 per month or Rp 623,565,000 per year.

Q: What is the average net income of respondents?

A: The average net income of respondents is Rp 17,776,651 per month, which is equivalent to Rp 213,323,416 per year.

Q: What is the average added value of wet sago products in the study area?

A: The average added value of wet sago products in the study area is Rp 238 per kilogram.

Q: What is the average volume of wet sago production per process?

A: The average volume of wet sago production per process has reached more than the break-even point, which is around 1,470 kg.

Q: What is the average cost incurred for the production process?

A: The average cost incurred for the production process has exceeded the break-even point, amounting to Rp 8,547,741.

Q: What are the recommendations for the industry?

A: The recommendations for the industry are:

Investment Opportunities: The wet sago manufacturing industry in Langkat Regency offers significant investment opportunities, with high financial feasibility and promising income.
Business Scale-Up: The industry has the potential to increase business scale, driven by strong demand for wet sago products.
Production Cost Management: Business actors need to pay attention to production costs to ensure that they can survive and develop in industries that may face market fluctuations.
Government Support: The government should provide support to the industry, including infrastructure development, market access, and training for business actors.

By understanding these FAQs, readers can gain a deeper understanding of the financial analysis of the industry making wet sago in Langkat Regency and the potential opportunities and challenges that it presents.