Contribution Margin
Contribution Margin: DefinitionIn a very simple language, contribution margin means the excess of selling price over the variable cost of manufacturing. This term has… Read Article
CVP Analysis
Break Even Point
Break-Even Point DefinitionThe Break-even point (BEP) is the level of production where the company’s total revenues and expenses are equal. At the BEP, the… Read Article
Margin of Safety
The margin of safety is a tool used in CVP analysis. A business is profitable when revenue exceeds the costs. A part of the… Read Article
Difference between Breakeven Point vs. Margin of Safety
Break-even point (BEP) is the level of sales where total costs (a combination of fixed and variable) equals total revenues. In other words, the… Read Article
Marginal Cost – How to Calculate, Relationship with Fixed & Variable Cost
You would agree that when a manufacturing unit increases the level of production, the total cost of production will also increase. This increment in… Read Article