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  2. Cost curve - Wikipedia

    en.wikipedia.org/wiki/Cost_curve

    Average variable cost (AVC/SRAVC) (which is a short-run concept) is the variable cost (typically labor cost) per unit of output: SRAVC = wL / Q where w is the wage rate, L is the quantity of labor used, and Q is the quantity of output produced. The SRAVC curve plots the short-run average variable cost against the level of output and is ...

  3. What is contribution margin? - AOL

    www.aol.com/finance/contribution-margin...

    The contribution margin is the selling price per unit minus the variable cost per unit. It’s a financial metric that calculates the incremental money generated for each product or unit sold.

  4. Gross margin - Wikipedia

    en.wikipedia.org/wiki/Gross_margin

    Gross margin can be expressed as a percentage or in total financial terms. If the latter, it can be reported on a per-unit basis or on a per-period basis for a business. "Margin (on sales) is the difference between selling price and cost. This difference is typically expressed either as a percentage of selling price or on a per-unit basis.

  5. Contribution margin-based pricing - Wikipedia

    en.wikipedia.org/wiki/Contribution_margin-based...

    Contribution margin per unit is the difference between the price of a product and the sum of the variable costs of one unit of that product. Variable costs are all costs that will increase with greater unit sales of a product or decrease with fewer unit sales (as opposed to fixed costs, which are costs that will not change with sales level over an assumed possible range of sales levels).

  6. Variable cost - Wikipedia

    en.wikipedia.org/wiki/Variable_cost

    Variable costs are sometimes called unit-level costs as they vary with the number of units produced. Direct labor and overhead are often called conversion cost, [3] while direct material and direct labor are often referred to as prime cost. [3] In marketing, it is necessary to know how costs divide between variable and fixed. This distinction ...

  7. Contribution margin - Wikipedia

    en.wikipedia.org/wiki/Contribution_margin

    Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. [1]

  8. Semi-variable cost - Wikipedia

    en.wikipedia.org/wiki/Semi-variable_cost

    In the simplest case, where cost is linear in output, the equation for the total semi-variable cost is as follows: [6] = + where is the total cost, is the fixed cost, is the variable cost per unit, and is the number of units (i.e. the output produced).

  9. Total cost - Wikipedia

    en.wikipedia.org/wiki/Total_cost

    Thus, the total fixed cost equals Kr. Labor is the variable input, meaning that the amount of labor used varies with the level of output. In the short run, the only way to vary output is by varying the amount of the variable input. Labor usage is denoted L and the per unit cost, or wage rate, is denoted w, so the variable cost is Lw.