| A | B |
|---|
| Break-even Point | the number of units (product ) you must sell to cover your cost. The point at which gains equals losses. |
| Return on Investment | the amount of profit or cost saving that is earned. |
| Markup | the amount added by a seller to the cost of a commodity to cover expenses and profit in fixing the selling price |
| Fixed Costs | cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed cost include rent, property tax, insurance, or interest expense. |
| Variable Costs | The expense that varies with production output. Variable costs include raw materials, energy usage, labor and distribution costs. |
| Semi-variable Costs | A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable after the level is exceeded. |
| Variable-cost margin | the amount that each sale contributes to fixed costs. It is also called the fixed-cost contribution. |
| Pricing floors | floor below which prices are not allowed to fall |
| Pricing ceiling | The maximum price a seller is allowed to charge for a product or service. |
| Elasticity | The degree to which demand for a good or service varies with its price. |
