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International Business and Sustainability
sales (top line)
Umsatz
Number of product sold x net sales price per product or simplifies: sales = quantity (Menge) x price
International Business and Sustainability
Profit (bottom line)
Gewinn
sales minus costs
International Business and Sustainability
costs
the expense incurred for making a product or service fixed costs vs. variable costs
International Business and Sustainability
break- even- point
the point at which sales and costs are equal
-> no profit, no loss
International Business and Sustainability
P&L
profit and loss
International Business and Sustainability
P&L account
(US: income statement)
Financial statement listing all the firms, sales, costs and profits at a certain point in time (=Stichtagsbetrachtung)
International Business and Sustainability
margin
rendite
International Business and Sustainability
P&L example
Gewinn und Verlustrechnung
International Business and Sustainability
gross
brutto
International Business and Sustainability
top line growth
how fast sales line growth
International Business and Sustainability
Fixed costs
are independent of production output (e.g. net costs, machinery, maintenance, salary..)
-> the more products you sell, the lower are the prices per product
International Business and Sustainability
are dependent on production output (e.g. labor, material input, fuel (e.g. for an airline) -> you hire people only until the product is ready
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