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14 cards from this deck
Costs that stay constant regardless of production level
Costs that change in direct proportion to output
Fixed costs + Variable costs
Selling price per unit × Quantity sold
Sales revenue - Total costs
Variable cost per unit × Output level
Where total revenue equals total costs
Difference between current sales & break-even point
(Average annual profit × 100) ÷ Initial investment cost
Profit
Loss
Higher costs reduce profits & are the primary cause of cash flow problems
Rent, salaries, insurance premiums
Raw materials, commission payments
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