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The quantity sent to a bottleneck operation could be split into two or more process batches to better utilize a bottleneck resource rather than process the entire batch.
Fixed Costs
Costs that do not fluctuate with changes in production level or sales volume, such as rent and salaries.
Operating Income
Income generated from regular business operations, excluding expenses like interest and taxes.
Margin of Safety
The difference between actual sales and the break-even point, used to assess the risk of loss from declining sales.
Fixed Costs
Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.
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