View source for PROFIT WEDGE

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== Definitions ==

a [[COMPANY|company]] incurs certain costs when initially starting up. It incurs debts or expends capital to buy [[MATERIALS|materials]] to [[PROCESS|process]]. It regains this [[MONEY|money]] by [[MARKETING|marketing]] its products. After it passes the [[BREAK-EVEN_POINT|break-even point]], profits begin to increasingly exceed costs ideally. On a graph showing total costs and total sales figures, profits [[FORM|form]] a wedge shape from the [[POINT|point]] where sales [[RISE|rise]] above costs. This is called the [[PROFIT|profit]] wedge.