courtneyk / Getty Images Fixed costs are expenses that remain the same no matter how much a company produces, such as rent, property tax, insurance, and depreciation. Variable costs are any ...

Fixed costs do not affect the marginal cost of production since they do not typically vary with additional units. Variable costs, however, tend to increase with expanded capacity, adding to marginal ...

The graph above demonstrates a break-even point (BEP) of 100 units. Construct a chart with output (units) on the horizontal (X) axis, and costs and revenue on the vertical (Y) axis. Choose a ...

Firstly, a business must work out the contribution, this is calculated as: Contribution per unit = Selling price per unit – Variable costs per unit Once the contribution per unit is found ...