Entrepreneurship I - 5.04 Vocabulary Quiz

The point at which a business’s total sales equal total expenses; the business has not yet made a profit but has not incurred any losses.

• Gross Profit Margin

• Contribution Margin

• Breakeven Point

• Variable Costs

Calculated by subtracting the variable costs required to produce one unit of product from the revenue it generated.

• Contribution Margin

• Gross Profit Margin

• Key Metrics

• Breakeven Point

The cost of acquiring or making the products you sold during a certain time period, like material, manufacturing, and labor costs.

• Variable Costs

• Cost of Goods Sold

• Key Metrics

• Fixed Costs

Operating costs that do not increase or decrease with changes in production.

• Breakeven Point

• Fixed Costs

• Variable Costs

• Revenue

Calculated by subtracting your COGS from your total revenue and reveals your business’ production efficiency or ability to optimize your material, manufacturing, and labor costs.

• Revenue

• Contribution Margin

• Breakeven Point

• Gross Profit Margin

A statistic which, by its value gives a measure of an organization's or department's overall health and performance.

• Lean Canvas Business Model

• Key Metrics

• Revenue

• Contribution Margin

One-page business model designed to allow its user to visualize an entire business plan at a glance.

• Contribution Margin

• Lean Canvas Business Model

• Key Metrics

• Variable Costs

The amount a company receives from selling goods and/or providing services to its customers and clients.

• Revenue

• Gross Profit Margin

• Contribution Margin

• Costs of Goods Sold

Operating costs that fluctuate with changes in production.

• Revenue

• Variable Costs

• Fixed Costs

• Breakeven Point