What Are a Firm's Options When It Generates More Cash

question 2

Essay

What are a firm's options when it generates more cash than planned?

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Definitions:

Break-even

The point at which total costs and total revenues are equal, meaning no profit or loss is incurred.

Break-even Point

The point where total costs and total revenues are the same, leading to neither profit nor loss in sales or production levels.

Sales Dollars

The overall income earned from the sales of products or services, measured in currency.

Break-even

The point at which total costs and total revenue are equal, resulting in no profit or loss for the business.