Examlex
Instructions: Identify the terms and briefly state their historical significance.
Chavin de Huantar
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.
Break-even Point
The level of sales at which total revenues equal total costs, resulting in no profit or loss.
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