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Break-Even Point
The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.
Cost-Volume-Profit Chart
A graphical representation that shows the relationship between a company's cost, production volume, and profits.
Variable Costs
Charges that adjust based on the volume of sales or production levels.
Fixed Costs
Expenses that do not change as a function of the activity of a business, within the relevant period.
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