In break-even analysis, the contribution margin is defined as:

a. sales price minus variable cost.

b. sales price minus fixed cost.

c. variable cost minus fixed cost.

d. fixed cost minus variable cost.

Generally, Break-even analysis is a financial tool used by businesses to determine the point at which total revenue received equals total costs (fixed and variable costs). It helps to identify the minimum amount of sales needed to cover all costs and begin generating a profit.

This analysis is usually conducted to determine if a business should move forward with a project, launch a new product or service, or make changes to its pricing or cost structure.

By calculating the break-even point, businesses can make informed decisions about how to allocate resources and manage financial risks.

In break-even analysis, the contribution margin is defined as:a. sales price minus variable cost.b. sales price minus fixed cost.c. variable cost minus fixed cost.d. fixed cost minus variable cost.

Answer :

What is break-even analysis?

Other Questions

In break-even analysis, the contribution margin is defined as:

a. sales price minus variable cost.

b. sales price minus fixed cost.

c. variable cost minus fixed cost.

d. fixed cost minus variable cost.