CASH PROFIT Definition

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CASH PROFIT is profit after tax plus depreciation.

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COST is the amount of money that must be paid to take ownership of something; expense or purchase price.

BREAK-EVEN EQUATION is the equation that determines BREAK-EVEN POINT. Let p = unit selling price, v = unit variable cost, FC = total fixed costs, x = sales in units. The equation: px = vx + FC.

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