Examlex
What is basis risk? What are the sources of basis risk?
Contribution Margin
The difference between sales revenue and variable costs of a product or service, indicating the amount contributed towards covering fixed costs and generating profit.
Financial Break-even Point
The level of revenue necessary for a firm to cover all its operating expenses and financial costs, achieving a net income of zero.
Gross Profit
The financial gain obtained after deducting the cost of goods sold from sales revenue, before subtracting any operating expenses.
Net Present Value
It's the calculation of the present value of all cash entering minus the present value of all cash exiting over a certain period.
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