Examlex
In the picture below,when the ship is filled with cargo it sinks into the water until the mass of water displaced is equal to the mass of the cargo.The ship is then said to be ________.
Margin of Safety
Margin of Safety is the difference between actual or expected sales and the break-even point, expressed in terms of units, dollars, or percentage, indicating how much sales can fall before a business incurs a loss.
Contribution Margin Ratio
A financial metric that measures how much of a company's revenue is available to cover its variable costs and contribute to its fixed costs and profits.
Fixed Costs
Expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance premiums.
Break-even Point
The point at which total income matches total outgoings, leading to neither a profit nor a loss.
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