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The strict scrutiny test holds that:
Operating Income
Earnings before interest and taxes (EBIT), representing the income generated from normal business operations.
Fixed Costs
Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.
Break-Even Sales
The amount of revenue required to cover a company's total fixed and variable costs, without making a profit or loss.
Sales Revenue
The total amount of money generated from sales of goods or services, excluding any returns or allowances.
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