Multiple Regression Analysis

Oct 13, 2025 by windailys.com 47 views

Analysis of the Effect of Selling Prices and Cost of Sales of Fatty Acid on Fatty Acid Gross Margin at PT SOCI (Sinar Oleochemical International) Medan

Introduction

In the chemical industry, the management of selling prices and cost of goods sold is a crucial aspect of maintaining profitability. PT SOCI (Sinar Oleochemical International) Medan, a company engaged in Fatty Acid production, is a prime example of this. This study aims to evaluate the influence of selling price and cost of selling fatty acid on the dirty margins produced by the company. Understanding the relationship between these variables is essential for companies like PT SOCI to formulate effective pricing strategies and cost control measures, ultimately leading to improved financial performance.

The Importance of Selling Price and Cost of Goods Sold in the Fatty Acid Industry

The selling price and cost of goods sold are two critical factors that determine the profitability of a company in the fatty acid industry. A well-managed selling price can lead to increased revenue, while a controlled cost of goods sold can reduce expenses and improve margins. In the case of PT SOCI, the company's ability to manage its selling price and cost of goods sold can significantly impact its financial performance.

Research Methodology

This research was conducted at PT SOCI located in the Medan I Industrial Area (KIM 1). Data was obtained through interviews and direct observations in the field. To analyze the collected data, researchers used statistical analysis methods with the help of SPSS (Statistical Product and Service Solution) software version 12.0.

Research Results

The results of this study showed several important points:

Multiple Regression Analysis

From the results of multiple regression analysis, the Fatty Acid selling price coefficient was obtained at 0.001, and the cost coefficient of the cost of Fatty Acid sales was -0.002. The positive coefficient of the selling price shows that if the selling price increases, dirty margins also tend to increase. Conversely, the negative coefficient of the cost of goods sold shows that an increase in basic costs will reduce dirty margins.

R² Value

The value of R² obtained was 0.999, which shows that 99.9% variations in Fatty Acid gross margins are influenced by the selling price and cost of goods sold. This indicates that the two variables have a very large influence on dirty margins, while the remaining 0.1% is influenced by other factors that are not mentioned in the model.

Simultaneous Hypothesis Testing

The results of the hypothesis testing simultaneously show that the two independent variables have a significant effect on dirty margins. This indicates that changes in the selling price and cost of goods sold can simultaneously affect the company's financial performance.

Partial Hypothesis Testing

Testing partial hypotheses also shows that both the selling price and the cost of selling fatty acid significantly have a significant effect on dirty margin. This means that each variable has an important role in influencing the final outcome of the sale of Fatty Acid products.

Conclusion

From the analysis conducted, it can be concluded that the selling price of Fatty Acid has a positive and significant effect on dirty margins, while the cost of selling fatty acid sales has a negative effect. This shows the importance of price management in the fatty acid industry, where companies need to consider these factors to increase profitability. In addition, the results of this study provide valuable information for PT SOCI management in formulating pricing strategies and cost control in order to maintain good financial performance.

Implications of the Study

By understanding the effect of selling prices and cost of goods sold, companies can take more strategic steps in managing fatty acid products, increasing operational efficiency, and maximizing profits. This study provides a valuable framework for companies in the fatty acid industry to analyze and improve their pricing strategies and cost control measures.

Recommendations for Future Research

Future research can build on the findings of this study by exploring other factors that influence the profitability of companies in the fatty acid industry. Additionally, researchers can investigate the impact of other variables, such as market trends and competition, on the selling price and cost of goods sold.

Limitations of the Study

This study has several limitations. Firstly, the data used in this study was obtained from a single company, PT SOCI, which may not be representative of the entire fatty acid industry. Secondly, the study only analyzed the effect of selling price and cost of goods sold on dirty margins, and did not consider other factors that may influence profitability.

Conclusion

In conclusion, this study provides valuable insights into the effect of selling prices and cost of goods sold on dirty margins in the fatty acid industry. The findings of this study have important implications for companies like PT SOCI, and provide a framework for analyzing and improving pricing strategies and cost control measures.
Frequently Asked Questions (FAQs) about the Effect of Selling Prices and Cost of Sales of Fatty Acid on Fatty Acid Gross Margin at PT SOCI (Sinar Oleochemical International) Medan

Q: What is the main objective of this study?

A: The main objective of this study is to evaluate the influence of selling price and cost of selling fatty acid on the dirty margins produced by PT SOCI (Sinar Oleochemical International) Medan.

Q: What are the independent variables in this study?

A: The independent variables in this study are the selling price of fatty acid and the cost of selling fatty acid.

Q: What is the dependent variable in this study?

A: The dependent variable in this study is the Fatty Acid dirty margin.

Q: What is the significance of this study?

A: This study is significant because it provides valuable insights into the effect of selling prices and cost of goods sold on dirty margins in the fatty acid industry. The findings of this study have important implications for companies like PT SOCI, and provide a framework for analyzing and improving pricing strategies and cost control measures.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the data used in this study was obtained from a single company, PT SOCI, which may not be representative of the entire fatty acid industry. Secondly, the study only analyzed the effect of selling price and cost of goods sold on dirty margins, and did not consider other factors that may influence profitability.

Q: What are the implications of this study for PT SOCI management?

A: The findings of this study provide valuable information for PT SOCI management in formulating pricing strategies and cost control in order to maintain good financial performance.

Q: What are the implications of this study for the fatty acid industry?

A: The findings of this study have important implications for the fatty acid industry, as they provide a framework for analyzing and improving pricing strategies and cost control measures.

Q: What are the recommendations for future research?

A: Future research can build on the findings of this study by exploring other factors that influence the profitability of companies in the fatty acid industry. Additionally, researchers can investigate the impact of other variables, such as market trends and competition, on the selling price and cost of goods sold.

Q: What are the key takeaways from this study?

A: The key takeaways from this study are:

The selling price of fatty acid has a positive and significant effect on dirty margins.
The cost of selling fatty acid sales has a negative effect on dirty margins.
Companies in the fatty acid industry need to consider these factors to increase profitability.
Pricing strategies and cost control measures are crucial for maintaining good financial performance.

Q: What are the future directions for this research?

A: Future directions for this research include:

Exploring other factors that influence the profitability of companies in the fatty acid industry.
Investigating the impact of other variables, such as market trends and competition, on the selling price and cost of goods sold.
Developing a more comprehensive framework for analyzing and improving pricing strategies and cost control measures in the fatty acid industry.