break-even point The point where total sales revenue equals total cost. Common fixed expenses A measure of the sensitivity of profit changes to changes in sales volume. Margin of safety Fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment. Degree of operating leverage The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume. break-even point The point where total sales revenue equals total cost. Common fixed expenses A measure of the sensitivity of profit changes to changes in sales volume. Margin of safety Fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment. Degree of operating leverage The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume