fixed cost - a cost that remains fixed over a range of output levels, stepped cost - fixed costs that increase by a fixed amount once an activity level is crossed, variable cost - costs that vary directly with the level of output, semi-variable costs - costs which combine a fixed and variable element, break-even in units - total fixed costs / contribution per unit, contribution per unit - selling price per unit - variable cost per unit, target profit in units - (total fixed costs + target profit) / contribution per unit, break-even in revenue £ - break-even in units x selling price per unit £, marginal cost - the cost of producing a unit of output after break-even i.e. the variable costs of a unit, examples of variable costs - direct materials, direct labour, variable overheads, margin of safety in units - target sales units - break-even units, margin of safety definition - the amount by which sales exceed the break-even point, margin of safety in revenue £ - margin of safety units x selling price per unit £, margin of safety as a % - (sales units - break-even units) / sales units x 100%, total contribution - total sales revenue - total variable costs, total profit - (no. of units x contribution per unit) - total fixed costs,

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