To earn a profit during an accounting period, a business must ensure that it makes enough sales to earn revenue in excess of the costs of production and sales. To determine the amount of sales the ...

The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Understanding the expenses you find on the income statement is key to making smart investments. For the beginning investor, one of the most important keys to learning about a business is understanding ...

A change in demand affects your sales and impacts your variable costs. As your sales grow, your variable costs increase. As your sales fall, your variable costs decrease. If you raise or lower your ...

The Weatherhead School of Management, part of Case Western Reserve University, provides a succinct definition of break-even analysis on its Web site of the same name: “On the surface, break-even ...