Examlex
Which of the following statements is true of measurement in promotional products marketing?
Break-even Point
The level of production or sales at which total costs equal total revenue, resulting in no net loss or gain.
Contribution Margin
This represents the amount of revenue left over after deducting variable costs, which can be used to cover fixed costs and contribute to profits.
Variable Costs
Costs that change in proportion to the level of activity of a business, such as material and labor costs.
Break-even Point
The point at which total revenues equal total costs, resulting in neither profit nor loss, indicating the minimum sales volume necessary to cover all costs.
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