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is a critical analysis of a preferred alternative to pinpoint its strengths and weaknesses before it is implemented.
Contribution Margin
The difference between sales revenue and variable costs, used to cover fixed costs and to generate profit.
Contribution Margin
The selling price per unit, minus the variable cost per unit, indicating how much each unit contributes to covering fixed costs and generating profit.
Break-even Point
A stage where total sales or production volume exactly matches the overall expenses, consequently yielding no financial gain or deficit.
Break-even Point
The financial stage where total costs equal total revenue, meaning the business is neither making a profit nor a loss.
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