Business Objectives

• Business Objectives


  A clear statement of what a business wants to achieve, may include sales targets, profit margins, and market share goals
• Fixed Costs


  Unchanged in the short-run, e.g. rent, salaries
• Variable Costs


  Change in response to changes in production levels, e.g. raw materials, labor
• Marginal Cost


  The additional cost of producing one more unit
• Max Output


  The amount produced when marginal cost equals marginal revenue
• Break-Even Point


  The point where total revenue equals total cost
• Profit


  Total Revenue - Total Cost