Contribution: related pages
Contribution margin A per unit measure of profit margin: contribution ÷unit price , or total contribution ÷revenue .
Break-even The break-even point is the level of sales (revenues or volumes) needed to cover the fixed costs; the level of sales at which neither a profit or loss is made.
Gross profit Sales minus the cost of goods sold. A very simple but useful profit measure.
Variable costs On the other hand variable costs change with sales. Examples of variable costs are raw materials, shipping and depletion.
Fixed costs Costs that do not change with the level of sales.
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