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Simple diffusion
Fixed Costs
Expenses that remain constant regardless of the level of output or sales, including rent, wages, and insurance costs.
Margin of Safety
The difference between actual or expected sales and sales at the break-even point. It measures how close a company is to not covering its fixed costs.
Break-even Sales
The amount of revenue from sales that exactly covers the fixed and variable costs of producing and selling a product, with no profit or loss.
Pretax Net Income
The amount of money a company has earned before taxes are deducted.
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