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Break-even Point
The point where a business's total costs and total revenues are the same, leading to neither a profit nor a loss.
Total Revenue Line
A graphical representation in break-even analysis that shows how total revenue changes with varying levels of sales volume.
Contribution Margin
The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.
Variable Expenses
Costs that change in relation to the business’s activity level or volume, similar to variable costs.
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