Variable cost
A variable cost is an expense that rises or falls in proportion to how much you produce or sell.
Variable costs scale with output: materials, per-unit shipping, and transaction fees all grow as you sell more. They are the opposite of fixed costs, which stay flat across a period.
The gap between your price and your variable cost per unit is the contribution each sale makes toward covering fixed costs and then earning profit. That contribution drives break-even math.
Fixed cost
A fixed cost is an expense that stays the same regardless of how much you produce or sell within a given period.
Break-even point
The break-even point is the level of sales at which total revenue exactly equals total costs, so the business makes neither profit nor loss.
Profit margin
Profit margin is the portion of revenue that remains as profit after costs are subtracted, usually expressed as a percentage of revenue.
Put Variable cost to work this week.
Knowing the term is step one. The business kits ship the systems and templates that turn concepts like this into a running operation.