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Match the following terms with their definitions. 1. Focuses on profits rather than on revenues or costs. 2. Focuses on costs, sales, and operating profit

Match the following terms with their definitions.

1. Focuses on profits rather than on revenues or costs.

2. Focuses on costs, sales, and operating profit or loss.

3. The relative distribution of sales among products sold by a company.

4. Contribution margin divided by income from operations.

5. Indicates the possible decrease in sales that may occur before operating loss results.

Answers:

A. Operating leverage

B. Margin of safety

C. Profit-volume chart

D. Sales mix

E. Cost-volume-profit chart

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