Examlex
Identify and describe three approaches for determining a business' worth.
Contribution Margin
The sum left over from sales income once all variable costs are subtracted.
Fixed Expenses
Costs that do not change with the level of production or sales over a certain time period, such as rent, insurance, and salaries.
Break Even
A situation where the overall expenses match the overall income, causing zero net profit or loss.
Target Profit
The predetermined amount a business aims to earn over a specific period, used for planning and performance evaluation.
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