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What three factors have reduced the use of stock options as incentives?
Break-even Point
The point at which total cost and total revenue are equal, meaning no net loss or gain, and the business is not making a profit but not losing money either.
Contribution Format
A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.
Income Statement
A financial document that provides a summary of a company’s revenues, expenses, and profits/losses over a specific period, showing how the revenue is transformed into net income.
Variable Expenses
Expenses that vary directly with the amount of production or activity level.
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