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In 1932,the Hoover administration,in response to the Japanese invasion of Manchuria,
Cost Structure
This refers to the types and relative proportions of fixed and variable costs that a business incurs.
Fixed Costs
are business expenses that remain the same regardless of the level of output or sales, such as rent, salaries, and loan payments.
Variable Costs
Costs that vary directly with the level of production output, including expenses like labor and material costs.
Operating Leverage
A financial ratio that measures the degree to which a company can increase operating income by increasing revenue, highlighting the impact of fixed costs.
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