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________ Form ventral gray columns
Margin of Safety
The difference between actual or projected sales and the break-even point; it measures the amount by which sales can drop before reaching the break-even point.
Profit-Volume Chart
A graphical representation that shows the relationship between a firm's profits and its volume of sales.
Cost-Volume-Profit Chart
A graphical representation that shows the relationship between a company's costs, sales volume, and profits.
Operating Leverage
The degree to which a firm or project can increase operating income by increasing revenue, a measure of how revenue growth translates into growth in operating income.
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