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Contribution

Total contribution versus contribution per unit (AO2)Oyster vendor at Greenwich Market, London, UKBreak-even exists when a firm’s sales revenues cover all of its production costs. The break-even quantity (BEQ) is the level of output where a business does not make either a profit or a loss. The formula for calculating the BEQ is:This can be demonstrated by using the numerical example below for a seller of oysters at...

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