All about economics on the web  Some great tips about economy,
marketing, business, PR…  Variable Costing  Variable costing is
a technique to measure contribution margin that is the sales
that is exceeded over variable costs. A firm ensures its profit
when the variable costing is high, that is it is sufficient
enough that it covers the fixed costs. The key factor to
determine the profit percentage of a firm is none other than
variable costing.[ad#ad-4]  The production costs and sales
volume are the two basic terms that are very much inter-
dependent determinants of the percentage of profit. The analysis
of the behavior of the costs with respect to the fluctuating
volume of sales and its effect on profit is needed to find the
breakeven level of a company. The breakeven level is a level at
which net total revenue of the sales equals the total costs of
the products. In this case, there is a situation where lies a
no-profit or no-loss scenario.  The profit is incurred when the
sales are beyond the breakeven levels