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When the former Soviet Union collapsed, many observers thought that the new private market would promptly improve Russia's economy. Why has the Soviet economy been slow to recover from the decline that it experienced?
Total Contribution Margin
The difference between total sales revenue and total variable costs, indicating the amount available to cover fixed expenses and generate profit.
Operating Leverage
A measure of how sensitive net operating income is to a given percentage change in revenue, indicating the proportion of fixed versus variable costs.
Income Statement
A financial report that shows a company's revenues, expenses, and profit or loss over a specific period.
Contribution Margin Ratio
The percentage of each sales dollar that remains after deducting variable costs, calculated as contribution margin divided by sales.
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