ANALYSIS OF THE IMPACT OF PRODUCT SELLING PRICE, PROMOTION COST, AND ADVERTISING COST TO THE COMPANY PROFITABILITY (A CASE STUDY OF PT. WRIGLEY INDONESIA)

Abstract

Company profitability is a comparison or ratio of profit with the assets that used in order to gain the profit, it measured in a percentage. Return on investment shows the capability of the company in generating profit from the investments made or assets used. One of many ways in increasing the profitability is by increasing the sales volume. The company’s sales volume mostly affected by the selling price determined by the company, and the selling price itself affected by the other costs occurred in for the sales process, includes the promotion cost and advertising cost. In this research, the researcher collected the secondary data from the company and interviewed the employee in PT. Wrigley Indonesia. The secondary data used was the balance sheet, income statement, selling price, and company profile of PT. Wrigley Indonesia in 2008 until 2011. The selling price, promotion cost, and advertising cost used were the prices of Doublemint stick, which has the biggest sales volume among the products. In analyzing the data, the researcher had done the normality test, autocorrelation test, multicollinearity test, heteroscedasticity test, F-test, and T-test in satisfying the multiple regression analysis. The result of the research showed that product selling price, promotion cost, and advertising cost have the significant impact to the company profitability in PT. Wrigley Indonesia. The most significant variable in impacting the company profitability is promotion cost.