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13.      The break-even point is the level of sales at which revenue equals fixed costs.

14.     Gross profit margin is the sales price minus the variable cost per unit.

15.     The income statement can be expressed as:
          Sales - Variable Expenses - Fixed Expenses = Net Income

16.     The margin of safety is the difference between planned unit sales and break-even sales.

17.     Only managers of profit-seeking organizations find that the cost-volume-profit analysis is useful.
     
18.     A major simplifying assumption of cost-volume-profit analysis is that costs can be classified as either variable or fixed with respect to a single measure of the volume of output activity.
     
19.     At the break-even point, net income may be positive.
     

20.     After a certain point, a unit sold does not generate marginal income.
     
21.     The break-even point is when enough units are sold that total contribution margin equals total variable costs.
     
22.     Total contribution margin / total sales = 100% - variable cost percentage.
     
23.     Break-even volume in units = fixed costs / unit contribution margin.
     
24.     Break-even volume in dollars = variable costs / contribution-margin ratio.

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