Could you please identify what the cost of sales are for a school because i am trying to do a feasibility study and need to include gross profit = sales – cost of sales! I also need to do a break even but can’t decide on the variable costs as these will be so minor per student and i am dealing in such large cash inflows/outflows…Best answer reward!
Business Challenge; Variable Costs and Cost of Sales for a school?
Could you please identify what the cost of sales are for a school because i am trying to do a feasibility study and need to include gross profit = sales – cost of sales! I also need to do a break even but can’t decide on the variable costs as these will be so minor per student and i am dealing in such large cash inflows/outflows…Best answer reward!
School do not have cost of sales as they don’t have inventory per say. They have FC & VC for sure. FC would be the depreciation/ rent of their school building, furnitures & equipments etc. Salary of the staff/ teachers can also be classified as FC as they normally doesn’t change. The utility bills might be a mixed cost. If the school is still @ capacity then yes some of the staff cost might be considered as VC.
Cheers…