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Decide whether the given functions are inverses.
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Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the proportional relationship between fixed and variable costs.
Contribution Margin
The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and profit.
Pretax Net Income
The amount of income earned by a business before taxes have been deducted.
Absorption Costing
A method of product costing that includes all manufacturing costs, both variable and fixed, in the cost of a unit of a product.
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