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Write as an absolute value.
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Break-even Point
The quantity of sales at which total revenues equal total costs, resulting in no net profit or loss.
Cost-volume-profit Chart
A graphical representation that shows the relationship between a company's costs, sales volume, and profit.
Operating Leverage
A financial ratio that measures the proportion of fixed costs to variable costs in a company's cost structure, indicating how a change in sales volume can impact profits.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
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