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Monthly Fixed Cost
Expenses that do not change regardless of the level of production or sales, such as rent or salaries, calculated on a monthly basis.
Operating Leverage
A measure of how sensitive a company's operating income is to a change in sales, indicating the impact of fixed costs on profits.
Contribution Margin
The amount by which sales revenue exceeds variable costs, used to cover fixed costs and generate profit.
Break-Even Point
The point at which total costs equal total revenue, meaning the business does not make a profit or loss.
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