| after-tax net income | An organization's net income after its income-tax expense is subtracted.
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| before-tax income | An organization's income before its income tax expense is subtracted.
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| break-even point | The volume of activity at which an organization's revenues and expenses are equal. May be measured either in units or in sales dollars.
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| contribution income statement | An income statement on which fixed and variable expenses are separated.
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| contribution-margin ratio | The unit contribution margin divided by the sales price per unit. Also may be expressed in percentage form; then it is called the contribution-margin percentage.
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| cost structure | The relative proportions of an organization's fixed and variable costs.
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| cost-volume-profit (CVP) analysis | A study of the relationships between sales volume, expenses, revenue, and profit.
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| cost-volume-profit (CVP) graph | A graphical expression of the relationships between sales volume, expenses, revenue, and profit.
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| operating leverage | The extent to which an organization uses fixed costs in its cost structure. The greater the proportion of fixed costs, the greater the operating leverage.
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| operating leverage factor | A measure of operating leverage at a particular sales volume. Computed by dividing an organization's total contribution margin by its net income.
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| profit-volume graph | A graphical expression of the relationship between profit and sales volume.
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| safety margin | Difference between budgeted sales revenue and break-even sales revenue.
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| sales mix | Relative proportion of sales of each of an organization's multiple products.
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| sensitivity analysis | A technique for determining what would happen in a decision analysis if a key prediction or assumption proves to be wrong.
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| target net profit (or income) | The profit level set as management's objective.
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| total contribution margin | Total sales revenue less total variable expenses.
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| unit contribution margin | Sales price minus the unit variable cost.
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| weighted-average unit contribution margin | Average of a firm's several products' unit contribution margins, weighted by the relative sales proportion of each product.
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