Examlex
What does a break-even point of 100 units mean to a firm?
Contribution Format
An income statement format that separates fixed and variable costs to highlight the contribution margin.
Variable Expense Ratio
A metric that compares variable expenses (costs that change with production levels) to total sales, indicating how much revenue is consumed by variable costs.
Contribution Margin
The amount remaining from sales revenue after variable expenses have been deducted, indicating the contribution towards covering fixed costs and generating profit.
Contribution Format
An income statement variant that divides expenses into variable and fixed groups, emphasizing the contribution margin.
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