Glossary

Break-Even Point

The Break-Even Point, is when all revenue minus all costs, yield no profit or loss. It's crucial for businesses to track as it indicates the minimum sales required to cover costs and start earning profit.

The Break-Even Point is where a company's total revenue equals its total costs, resulting in neither profit nor loss. Any revenue generated beyond this point will result in a profit, while anything below it will result in a loss. It's an important metric for businesses to monitor as it helps them determine the minimum level of sales needed to cover all their costs and be profitable. The Break-Even Point is calculated by dividing total fixed costs by the difference between the selling price per unit and the variable cost

In Dema.ai, we call the difference between the selling price and variable costs connected to shipping the orders Net Gross Profit 3. This is also commonly referred to as Contribution Margin.

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