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Freeman profiles the anorexic population as:
Margin of Safety
The difference between actual or expected sales and sales at the break-even point. It measures how close a company is to not covering its fixed costs.
Break-even Sales
The amount of revenue from sales that exactly covers the fixed and variable costs of producing and selling a product, with no profit or loss.
Pretax Net Income
The amount of money a company has earned before taxes are deducted.
Fixed Costs
Expenses that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.
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