Examlex
Most governments attempt to control the flow of trade into their country by regulating the trading conditions. This government regulation can be motivated by:
Operating Leverage
A measure of how revenue growth translates into growth in operating income, demonstrating the effect of fixed costs on profits.
Contribution Margin
The difference between the sales price of a product and its variable costs, used to cover fixed costs and profit.
Sales Mix
The composition of different products or services sold by a company, which can significantly impact profitability based on the varying margins of each item.
Contribution Margin Ratios
The ratio of the contribution margin to sales revenue, expressing the percentage of revenue that contributes to fixed costs and profits after variable costs are covered.
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