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Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salary, or insurance, providing stability to a company's expense structure.
Margin of Safety
The difference between actual or projected sales and the break-even point, often expressed as a percentage.
Contribution Margin Ratio
A financial metric showing the percentage of revenue that exceeds total variable costs, indicating how much revenue contributes to fixed costs and profit.
Break-even Sales
The amount of revenue needed to cover all fixed and variable costs, resulting in no profit or loss.
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