Which of the following is the amount by which sales could drop before profits reach the breakeven point?
A) Operating leverage
B) Total contribution margin
C) Margin of safety
D) Incremental sales

Question

Quizplus · Accepted Answer

Margin of safety is the amount by which sales could drop before profits reach the breakeven point. Operating leverage refers to the degree of fixed costs in a company's cost structure. Total contribution margin is the difference between total sales revenue and total variable costs. Incremental sales refer to the additional sales revenue generated by increasing production or sales volume.

Which of the Following Is the Amount by Which Sales