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A computer programmer from India continues to receive his or her Mumbai,India base salary and is kept on the Indian operation's balance sheet.Then the company adds various allowances for cost of living,housing,education to this base salary so that the employee's overall standard of living while working in the company's London,England office will be the same as his or her standard of living in Mumbai thus would be an example of the balance sheet approach.
Break-Even Point
The point at which total costs equal total revenue, meaning a business neither makes a profit nor incurs a loss.
Sales Units
The total number of units of a product sold during a specific period.
Break-Even Point
The production level or sales volume at which total revenues equal total costs, resulting in neither profit nor loss.
Margin of Safety
The difference between actual sales and the break-even point, indicating the level of risk in not covering fixed costs.
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