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Production control sheets are created to:
Break-even Point
The financial state in which total costs and total revenues are equal, meaning no net loss or gain is incurred by the business.
Variable Costs
Costs that change directly and proportionally with the level of production or business activity, such as materials and labor.
Contribution Margin
The amount by which sales revenue exceeds variable costs, indicating the contribution towards covering fixed costs and generating profit.
Fixed Costs
Expenses that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity.
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