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Purchasing can directly affect (positively or negatively) the long-term growth, revenue, and operating outcomes and plans of stakeholders and business units.
Operating Leverage Factor
A measure that quantifies the proportion of fixed versus variable costs in a company's operating structure, indicating sensitivity to changes in sales volume.
Contribution Margin Ratio
The contribution margin ratio is the percentage of revenue that exceeds total variable costs, indicating how much of the sales revenue is available to cover fixed costs and generate profit.
Sales Dollars
The total revenue generated from the sale of goods or services, expressed in monetary units.
After Tax Profit
The net income a company retains after deducting all taxes owed to the government.
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