Examlex
Which of the following is a formal reading test?
Contribution Margin
The amount by which a product's selling price exceeds its total variable costs, used to cover fixed costs and contribute to net profits.
Variable Expense Ratio
A financial metric that represents the proportion of variable expenses to sales revenue, indicating how much variable costs change in response to sales activity.
Break-even Point
The level of production or sales at which total costs equal total revenue, resulting in no net loss or gain.
Degree of Operating Leverage
A measure indicating how much sales revenue will translate into changes in operating income due to the proportion of fixed and variable costs.
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