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In a hydraulic-press operation, it is impossible for the
Variable Costs
Costs that change in proportion to the level of activity or production volume.
Fixed Costs
Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.
Operating Income
A measure of a company's profit generated from its core business operations, excluding deductions of interest and tax.
Operating Leverage
An indicator of the extent to which increases in sales revenue result in an increase in operating profit, showing the level of fixed expenses within a business's cost composition.
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