Pro-forma—a projection or estimate of what may result in the future from actions
in the present. A Pro-Forma financial statement is one that shows how the
actual operations of the business will turn out if certain assumptions are
realized.
Revenue or sales—are the dollars you receive for the offering you sell.
Total costs—is the sum of the total fixed and total variable costs. The total fixed
costs cannot remain the same because the total variable costs change.
Total fixed costs—is the sum of those costs that are fixed, no matter how much is
produced. These expenses that remain constant no matter what the sales or fees
from services are.
Variable costs—variable costs are business costs related to the acquisition and
resale of offerings or the production of goods and services