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3 terms

overview
contribution margin approach
equation approach
cost-volume-profit chart
target net profit analysis
margin of safety
operating leverage

break even analysis

point where the net income is equal to zero.

Or when Total Sales = Total Costs

Or when Total Sales = Total Costs

cost-volume-profit analysis

sometimes referred to as break-even analysis. The break-even point is the point where total sales revenue equals total costs (variable and fixed) or the point where the total

contribution margin equals total fixed costs. In other words, how many units do we need to sell so that our contribution margin equals total fixed costs?

contribution margin equals total fixed costs. In other words, how many units do we need to sell so that our contribution margin equals total fixed costs?

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