Unit 6: PriceLab Challenge

Markup

The percentage added to the cost of a product to determine its selling price, calculated as (Selling Price − Cost) ÷ Cost.

Margin

The percentage of the selling price that is profit, calculated as (Selling Price − Cost) ÷ Selling Price.

Break-Even Point

The sales volume at which total revenue equals total costs, resulting in zero profit.

CVP Analysis

Cost-Volume-Profit analysis; a method that examines how changes in costs and sales volume affect a company's profit.

Fixed Costs

Expenses that remain constant regardless of production or sales volume, such as rent or insurance.

Variable Costs

Expenses that change in direct proportion to production or sales volume, such as raw materials or packaging.

Contribution Margin

The amount each unit sold contributes toward covering fixed costs and generating profit, calculated as Selling Price − Variable Cost per Unit.

Goal Seek

An Excel tool that finds the input value needed to achieve a desired result in a formula.

Data Table

An Excel what-if analysis tool that shows how changing one or two variables affects the result of a formula.

Power Query

An Excel feature that imports, transforms, and combines data from external sources such as web pages or CSV files.

Excel Table

A structured range of data in Excel with named columns, auto-expanding formulas, and built-in formatting.