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EBIT
A financial metric called EBIT that calculates a company's profits prior to the deduction of interest and income tax costs, encompassing all other expenses.
Operating Leverage
A financial metric that measures the proportion of fixed costs in a company's cost structure, indicating how a change in sales volume will affect operating income.
Variable Cost
Costs that vary directly with levels of production or sales volume, such as materials and labor.
Cost Structure
This refers to the types and relative proportions of fixed and variable costs that a business incurs.
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