THE CONTRIBUTION MARGIN IN THE MANAGEMENT OF HIGHER EDUCATION INSTITUTIONS

• Autor(a) principal: Luchesa, Claudio José
• Data de Publicação: 2012
• Outros Autores: Machado, Cristiane Ribas
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Teoria e Prática da Educação (Online)
• Texto Completo: https://periodicos.uem.br/ojs/index.php/TeorPratEduc/article/view/16158
• topic: Contribution margin; Education Institutions; Management; Costs; Margem de contribuição; Instituição de Ensino Superior; Gestão; Custos

The contribution margin is an analytical procedure that has been used for a long time in financial analysis.This resulted, initially, from the economic necessity of calculating a minimum value of the revenue which was required to cover fixed costs. This value  has become known as break-even  point, breaking point andother denominations. Contribution margin is a particularity of a general analytical concept known as Cost/ Volume / Profit Relationship (CVP Analysis). It allows  to segregate revenues and costs by product orsector of business activity, subsidizing strategic decisions in a way that no other process of  analysis could do. However, its merely formal use, without paying attention to  the particularity of the existence of costs and fixed costs attributable to a specific product or sector, can induce to counterproductive decisions and may even cause damage. However, the proper use of its concept and calculations on the costing of higher education institutions can be extremely valuable in regard to strategic decisions that involve revenue,fixed costs and variable costs. This text demonstrates the concept and the calculations.  Then, withhypothetical numerical examples it demonstrates specific applications in higher education institutions. It applies to the calculation of the break-even point, the calculation of the selling price of the courses andsensitivity analysis.