| break-even analysis | Analysis of the level of sales at which a project would make zero profit.
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| contribution margin | Amount that each additional product, such as a jet engine, contributes to after-tax profit of the whole project: (Sales price − Variable cost) × (1 − Tc), where Tc is the corporate tax rate.
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| decision trees | A graphical representation of alternative sequential decisions and the possible outcomes of those decisions.
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| fixed costs | A cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on theamount of goods or services produced during the period.
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| Monte Carlo simulation | An exercise that identifies,outcomes and probabilities and generates possible scenarios.
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| scenario analysis | Analysis of the effect on the project of different scenarios, each scenario involving a confluence of factors.
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| sensitivity analysis | Analysis of the effect on the project when there is some change in critical variables such as sales and costs.
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| variable costs | A cost that varies directly with volume and is zero when production is zero.
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