Examlex
________ suggests that we are more likely to notice when a newborn gains five pounds than when a sumo wrestler gains five pounds.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the degree to which a firm can increase its profits by increasing sales.
Fixed Operating Costs
Expenses that do not change with the volume of production, such as salaries and rent.
Variable Costs
Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.
Breakeven Volume
The quantity of goods or services that must be sold to cover fixed and variable costs, resulting in no profit or loss.
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