Marginal revenue: related pages

Variable costs

On the other hand variable costs change with sales. Examples of variable costs are raw materials, shipping and depletion.

Contribution

sales price - variable cost per unit.

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.

Fixed costs

Costs that do not change with the level of sales.