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Dollar Sales
The total value of goods or services sold, measured in dollars, within a specific period of time.
Target Profit
The desired net income a company aims to achieve within a specific period.
Contribution Margin Ratio
The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.
Operating Leverage
An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.
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