| Variable unit cost: |
Cost associated with producing
an additional unit. |
| Fixed cost: |
The sum of all costs required
to produce any product. This amount does not change as
production increases or decreases |
| Expected unit sales: |
The number of units that
are expected to be sold. |
| Price: |
Price you will be able to
receive per unit. |
| Total variable costs: |
The product of units produced
and variable unit cost (example 10 units at $5 variable
cost produces a total variable cost of $50). |
| Total costs: |
Sum of fixed costs and variable
costs. |
| Total revenue: |
Product of price and expected
sale unit sales (example 10 units at $10 equals $100 total
revenue. |
| Profit: |
Total revenue minus total
costs. |
| Break even: |
Number of units required
to sell to make a profit of zero. |
