: The point at which total revenue equals total costs, resulting in neither profit nor loss. -
: The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as selling price minus variable cost per unit. -
: The cost advantages gained by increasing the scale of production, resulting in lower average costs per unit. -
: Costs that do not change with the level of output or sales, such as rent, salaries, and insurance. -
: The amount by which actual output can fall below the break-even output before losses are incurred. -
: The financial gain obtained when total revenue exceeds total costs. -
: The total amount of money generated from the sales of goods or services. -
: The sum of contributions from all units sold, calculated as contribution per unit multiplied by the quantity sold. -
: The sum of fixed costs and variable costs incurred in the production of goods or services. -
: Costs that vary with the level of output or sales, such as raw materials, direct labor, and sales commissions.
