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Degree Of Operating Leverage
A financial ratio that measures the sensitivity of a company's operating income to a change in its sales volume.
Variable Expenses
Expenses that change in proportion to the activity of a business, such as raw material costs or sales commissions.
Fixed Expenses
Expenses that remain constant regardless of production or sales volume, including rent, insurance, and salaries.
Sales Mix
The composition of different products or services sold by a company, affecting overall sales volume and profitability.
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