Analisis Pemilihan Lokasi Usaha UMKM Kota Solok dengan Pendekatan Biaya–Volume–Profit (CVP)

This study is motivated by the phenomenon of micro, small, and medium enterprises (MSMEs) in Solok City selecting business locations primarily based on crowd density without adequate financial analysis, which may lead to cost inefficiencies and unstable profitability. The research problem focuses on how the financial feasibility of business location selection can be analyzed using the Cost–Volume–Profit (CVP) approach. This study aims to compare cost structures, contribution margins, and break-even points between two alternative business locations, namely the central market area and the surrounding buffer area. The research employs a descriptive quantitative approach by collecting primary data through structured interviews and direct observation of culinary and retail MSMEs, supported by secondary data from simple financial records. Data analysis techniques include the calculation of contribution margins, break-even points (BEP), and profit simulations at specific sales volume levels. The findings indicate that locations with lower fixed costs result in lower break-even points and more stable profits compared to high-rent locations, even when sales volumes are relatively similar. Therefore, the CVP approach proves to be an effective managerial tool in supporting rational, financially sound, and sustainable business location decisions for MSMEs.