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A customer has placed an order with Cyborg Computer for a custom-made computer.However,as a result of a system error,the order was lost.It took one of the sales representative three days to locate the order again.Once the order was located,the sales representative sent the order to the production department.This error is likely to negatively affect which of the following?
Fixed Expenses
Costs that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.
Break-even Point
The break-even point is the sales level at which total revenues equal total costs, resulting in neither profit nor loss.
Degree of Operating Leverage
A financial ratio that measures the sensitivity of a company's operating income to its sales volume, showing the impact of fixed costs on earnings.
Net Operating Income
A measure of a company's profitability, calculated by subtracting operating expenses from gross profit, not including non-operating income and expenses, interest, and taxes.
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