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September 10, 2025West Science Social and Humanities StudiesOpen Access

The Effect of Production Costs and Economies of Scale on Net Profit and Production Capacity of Small and Medium Enterprises Processing Palm Oil in South Sulawesi

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Authors

LJLoso JudijantoAAApriyanto ApriyantoSNSalwa Aulia Novitasari

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Overview

Quantitative analysis reveals production costs negatively affect net profit, while scale efficiency boosts both net profit and production capacity.

Key Points

  • Production costs significantly reduce net profit in small and medium palm oil enterprises.
  • Scale efficiency positively influences both net profit and production capacity in the processing sector.
  • The impact of production capacity acts as a mediator between scale efficiency and net profit.
  • Findings suggest that cost control and efficiency strategies are vital for sustainable growth in the palm oil industry.

Cite This Study

Judijanto et al. (2025) studied this question.

synapsesocial.com/papers/68c1d7fe54b1d3bfb60fa5e3https://doi.org/10.58812/wsshs.v3i08.2163
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