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Break Even Point
The point at which total costs and total revenue are equal, meaning the business is neither making a loss nor a profit.
Unit Contribution Margin
The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the sales price per unit minus variable cost per unit.
Fixed Costs
Costs that do not vary with the volume of output, such as rent, salaries, and insurance.
Target Net Profit
The desired bottom-line profit that a company aims for after all expenses have been subtracted from revenue.
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