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Explain the differences between the two money measures, M1 and M2. Why are checks, debit cards, and credit cards not considered to be money?
Operating Income
Earnings before interest and taxes (EBIT), a measure of a company's profit generated from its core operations excluding the effects of financing and taxes.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, due to fixed costs within a company's operating structure.
Variable Costs
Charges that shift in alignment with the volume of business activity.
Operating Income
Income generated from a company's primary business operations, excluding revenue from investments and other non-operational sources.
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