THE INFLUENCE OF PRODUCTION COSTS AND SALES VOLUME ON NET PROFIT PT SIDO MUNCUL TBK

Abstract

This study aims to analyze the effect of Production Costs and Sales Volume on the Net Profit of PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) for the period 2014-2023. This quantitative study uses secondary data from financial reports and multiple linear regression analysis techniques. The results of the classical assumption test show that the regression model meets the BLUE (Best Linear Unbiased Estimator) criteria. The hypothesis test results show an Adjusted R2 value of 90.9%, indicating that both independent variables are very dominant in explaining Net Profit. Simultaneously, Production Costs and Sales Volume have a significant effect on Net Profit (Sig. 0.000). Partially, Production Costs have a negative and significant effect (Sig. 0.006), while Sales Volume has a positive and significant effect (Sig. 0.002). This conclusion confirms that SIDO's profitability is highly dependent on a strategic balance between the efficiency of controlling cost of goods sold and the success of marketing strategies to increase sales volume.