ANALYSIS OF COST, VOLUME AND PROFIT IN SERVICE BUSINESS: A CASE STUDY IN A VACCINATION CLINIC

Abstract

This research has been aimed at analyzing the contribution margin and economic breakeven point service business. Therefore, we performed a case study, which involved the participation of a vaccination clinic, with unit headquartered in the state of Rio Grande do Sul, Data collection was through unstructured interview with the managers of the company, accounting documents cost and management reports. In this study we found that the flu vaccine had a higher representation in the total contribution margin for the company and that, responding to the research question, which asked about what was the margin of safety required for the company could reach economic breakeven point with a goal of operating profitability of 25.7% of gross revenue in the period January-July 2012, the safety margin required was 57.3%. As the clinic achieved operating income of 26.9% in revenue today, it appears that exceeded their expectations.