Examlex
Use the table below to answer the following questions.
Table 16.2.1
-In Table 16.2.1,which one of the proposals will have the greatest support?
Operating Leverage
Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.
Pretax Income
Income earned by a company before taxes are deducted, indicating the profitability of a company's core operations.
Sales Increase
The rise in the amount of products or services sold by a company, usually compared to a previous period.
Contribution Margin
The amount by which sales revenue exceeds variable costs, representing the contribution towards covering fixed costs and generating profit.
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