Contribution & Profit
What is the difference between the selling price per unit and the variable cost per unit?
Contribution per Unit
What graphical method measures the value of a firm's costs and revenues against a given level of output?
Break Even Chart
What are the costs that do not vary with the quantity of output produced?
Fixed Costs
What term refers to the actual production level at a given time?
Current Output
What term refers to how price acts as a signal for the market, determining what to produce, how to produce, and who gets what?
Effects of Price
What is the difference between total sales revenue and total variable costs?
Total Contribution
What is the measure of output where total revenue equals total costs?
Break-Even Quantity
What are the costs that do not vary with the quantity of output produced?
Total Costs
What is the total amount of money a firm receives by selling goods or services?
Total Revenue
What economic model describes the relationship between the availability of a good or service (supply) and the desire for that good or service (demand)?
Supply and Demand
What is the result of subtracting total fixed costs from the total contribution or the positive difference between total revenue and total costs?
Profit
What is the point at which the costs of producing a product equal the revenue made from selling the product?
Break Even Point
What are the expenses that remain the same no matter how many products are made or sold?
Total Fixed Costs
What is the level of output needed to earn a specified amount of profit?
Target Profit Output
What term refers to the measure of how much the quantity demanded of a good changes in response to a change in its price?
Price Elasticity of Demand
What is the operating income that results when sales revenue minus variable and fixed costs equals management's profit goal?
Target Profit
What method is used to determine what sales volume must be reached before total revenue equals total costs?
Break Even Analysis
What are the costs that change with the level of output, including payments for materials, labor, and similar expenses?
Total Variable Costs
What is the total quantity of goods or services sold by a business in a given period?
Sales Volume
What term refers to the organization and characteristics of a market, including the number of firms and the type of competition they face?
Market Structure
What is the amount of revenue needed to cover both fixed and variable costs so that the business breaks even?
Break Even Revenue
What is the output a business needs to produce so that its total revenue and total costs are the same?
Break Even Output
What is the cost per unit of purchasing a property, calculated by dividing the purchase price of the property by the total number of units?
Price Per Unit
What is the amount of money a company earns from selling one unit of a product, often calculated as the selling price per unit?
Revenue per Unit
What is the condition that allows a company to produce goods or services at a lower cost or in a more effective way than its competitors?
Competitive Advantage