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A 1971 study by Finkel and Tuttle hypothesizes that all of the following variables affect the aggregate profit margin except
Break-even Point
The juncture where the sum of all costs matches the total income, leading to neither a profit nor a loss.
Contribution Margin Ratio
A financial ratio that measures the proportion of revenue remaining after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.
Fixed Monthly Expenses
Regularly occurring costs that do not vary in amount from one month to the next, such as rent or loan payments.
Net Operating Income
The revenue left over after subtracting operating expenses, but before deducting interest and taxes.
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