The Difference Between the Current Sales Revenue and the Sales

question 29

Multiple Choice

The difference between the current sales revenue and the sales at the break-even point is called the

• A) contribution margin
• B) margin of safety
• C) price factor
• D) operating leverage

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Definitions:

Visa and MasterCard

Global payment systems that facilitate transactions between merchants and card issuers to process credit and debit card payments.

Cash Sales

Transactions where payment is made in full using cash or electronic funds at the time of purchase.

Retailer

A business or person that sells goods directly to consumers for their own use.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, recognized as an asset.