Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. Contribution margin is used to ...

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...

Learn what break-even analysis is, how it works, and how to calculate the break-even point using formulas to assess costs, revenue, and profitability.

Discover what a shutdown point is in economics—when companies decide it’s more practical to cease operations temporarily or permanently due to revenue not covering variable costs.