Understanding the cost of each unit you produce is essential to ensure your business remains profitable. To calculate the cost per unit, add all of your fixed costs and all of your variable costs ...

Profit is the ultimate goal for any business. Business owners selling goods or services use the unit contribution margin to determine the profit per unit. It is calculated as a percentage or dollar ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

A break-even analysis is an indispensable financial planning tool that helps you understand your business’s revenue, expenses and cash flow so you can work towards profitability. Below, we’ll examine ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...