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Capital Intensive
A business process or industry that requires significant financial investment in capital assets like machinery and equipment, versus labor or operational costs.
Fixed Costs
Expenses that do not change with the level of production or business activity.
Variable Costs
Expenses that change in proportion to the production output or sales.
Operating Leverage
The degree to which a company can increase its profits by increasing sales, highlighting the proportion of fixed costs in a company’s cost structure.
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