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Break-even Point
The level of production or sales at which total revenues equals total expenses, with no net loss or gain.
Contribution Margins
The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.
Cost-volume-profit Chart
A cost-volume-profit chart is a visual representation that shows how changes in a company's sales volume will affect its costs and profitability, facilitating breakeven and profit-target analysis.
Total Cost Line
A graphical representation showing the total cost associated with producing various levels of output.
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