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Contribution Margin Ratio
A financial metric that measures how much of a company's revenue is available to cover its variable costs and contribute to its fixed costs.
Margin of Safety Ratio
A financial ratio that measures the difference between actual sales and break-even sales, used to assess a company's financial risk.
Break-even Point
The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.
Actual Sales
This refers to the actual revenue generated from the sale of products or services, as opposed to projected sales or forecasts.