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When a Variable That Is Not Named on Either Axis

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When a variable that is not named on either axis of a graph changes, we read the change as a movement along the curve.


Definitions:

Contribution Margin Ratio

The ratio of contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and profit.

Operating Income

Operating income, similar to income from operations, is the profit earned from a firm's normal core business operations.

Variable Costs

Costs that vary directly with the level of production or sales activity.

Operating Income

Income from a company's main business operations, excluding expenses and revenues from non-operational activities.

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