F. Ernest Jerome
| Break-even analysis | A procedure for determining the level of sales at which a firm's net income is zero.
(See page 178.)
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| Break-even chart | A graph presenting both total costs and total revenue as a function of sales volume so that the break-even point may be determined.
(See page 200.)
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| Break-even point | The sales volume at which net income is zero; the intersection of the total cost and total revenue lines on a break-even chart.
(See page 178.)
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| Contribution margin | The amount by which the unit selling price exceeds the unit variable cost.
(See page 180.)
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| Contribution rate | The contribution margin expressed as a percentage of the unit selling price.
(See page 182.)
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| Cost function | The total costs expressed in terms of the number of units sold.
(See page 187.)
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| Cost-volume-profit analysis | A procedure for estimating a firm's operating profit (or net income before taxes) at any sales volume, given the firm's cost structure.
(See page 177.)
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| Fixed cost | A cost that does not change with the volume of sales.
(See page 178.)
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| Revenue function | The total revenue expressed in terms of the number of units sold.
(See page 187.)
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| Unit variable cost | The cost of producing one more unit of output.
(See page 178.)
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| Variable costs | Costs that grow in direct proportion ot the volume of output or sales.
(See page 178.)
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2003 McGraw-Hill Higher Education