Term
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Definition
| the level of sales at which profit is zero |
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Term
| Contribution margin ratio (CM Ratio) |
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Definition
| Contribution Margin/Sales |
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Term
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Definition
| A graphical representation os the relationships between an organizaqtion's revenues, costs, and profits on the one hand and its sales volume on the other hand |
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Term
| Degree of Operating Leverage |
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Definition
| A measure, at a given level of sales, of how a percentage change in sales will affect profits. = CM/net op income |
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Term
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Definition
| An analytical approach that focuses only on those costs and revenues that change as a result of a decision |
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Term
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Definition
| The excess of budgeted or actual dollar sales over te break-even dollar sales |
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Term
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Definition
| A measure of how sensitive net operating income is to a given percentage change in dollar sales |
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Term
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Definition
| The relative proportionsin which a company's products are sold. |
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Term
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Definition
| Estimating what sales volume is needed to achieve a specific target profit. |
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