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Contribution Margin Ratio
The proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.
Margin of Safety Percentage
A financial ratio indicating the difference between actual sales and break-even sales, used to determine the risk of incurring a loss.
Break-even Sales
The level of sales at which a business neither makes a profit nor a loss, calculated by dividing fixed costs by the contribution margin ratio.
Total Sales
The overall revenue generated from goods or services sold by a business in a specific period.
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