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Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.
Margin of Safety
This measures the difference between actual sales and sales at the break-even point, indicating the amount by which sales can drop before losses start occurring.
CVP Analysis
Cost-Volume-Profit Analysis, a business management tool used to determine how changes in costs and volume affect a company's operating income and net income.
Sales Mix
refers to the composition of different products or services sold, impacting overall sales and profitability.
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