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Margin of Safety
The difference between actual or projected sales and the break-even point, indicating the level of risk in meeting profitability targets.
Margin of Safety
The difference between actual or projected sales and the break-even point, indicating the amount of sales decline a business can tolerate.
Net Operating Income
The profit generated from a business's regular operational activities, excluding expenses and taxes.
Contribution Margin Ratio
The percentage of each sales dollar remaining after variable costs have been deducted, indicating the portion available to cover fixed costs and generate profit.
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