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Managerial preferences can be a strategic constraint.
Selling Price
The amount of money for which a product or service is sold to customers, setting the revenue baseline for a business.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit.
Operating Leverage
A financial ratio that measures the degree to which a company can increase operating income by increasing revenue.
CVP Graph
A graphical depiction of the Cost-Volume-Profit analysis, showing how a company's profits, costs, and sales volume are related.
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