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Net Operating Income
A measure of profitability that calculates the difference between a company's operating revenue and its operating expenses, excluding taxes and interest.
Fixed Expenses
Fixed expenses are costs that do not change with the level of production or sales, such as rent or salaries.
Break-even Point
The level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.
Unit Variable Cost
The cost associated with producing one additional unit of product, including materials, labor, and other costs that vary with production volume.
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