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According to most theorists, which change strategy has the best chance of success?
Unit Contribution Margin
The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.
Operating Income
Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.
Fixed Costs
Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.
Operating Leverage
A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.
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