Examlex
Simplify the expression.
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Margin of Safety
The difference between actual sales and sales at the breakeven point, indicating how much sales can decline before a loss occurs.
Variable Expenses
Costs that change in proportion to the activity or volume of a business operation.
Contribution Margin
The difference between sales revenue and variable costs; used to cover fixed costs and generate profit.
Break-Even Point
The sales level at which the company does not make a profit or incur a loss, denoting a balance between revenue and costs.
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