Examlex
To evaluate written language, the TOWL-4 uses the formats of
Contribution Margin Ratio
A measure of the profitability of a product, defined as the difference between the sales price and variable costs, expressed as a percentage of sales price.
Operating Income
EBIT, or earnings before interest and taxes, denotes the income a business generates from its fundamental activities.
Margin Of Safety
The difference between actual sales and break-even sales, providing a cushion against which performance can decline before a business incurs a loss.
Contribution Margin
Contribution Margin is the amount by which sales revenue exceeds variable costs of production, indicating how much revenue contributes to fixed costs and profit.
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