Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.
Definitions:
Net Operating Income
A financial metric that calculates a company's profit after subtracting operating expenses, excluding taxes and interest.
Degree Of Operating Leverage
A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.
Variable Costs
Costs that change in proportion to the level of activity or volume of output produced.
Fixed Costs
Overheads that are unaffected by the quantity of output or sales, for example, tenancy costs, wages for staff, and indemnity expenses.
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