Volume level where profits equal zero
Break-Even Point
Contribution margin as a percentage of sales revenue
Contribution Margin Ratio
Proportion of fixed and variable costs to total costs of an organization
Cost Structure
Study of the relations among revenues, costs, and volume and their effect on profit
Cost-Volume-Profit (CVP) Analysis
The excess of projected or actual sales over the break-even volume
Margin of Safety
The excess of projected or actual sales over the break-even volume expressed as a percentage of break-even volume
Margin of Safety Percentage
Extent to which an organization's cost structure is made up of fixed costs
Operating Leverage
Operating profit equals total revenue less total costs
Profit Equation
Version of cost-volume-profit analysis using a single profit line
Profit-Volume Analysis
Difference between revenues and total variable costs
Total Contribution Margin
Difference between revenues per unit (Price) and variable cost per unit
Unit Contribution Margin
