Class notes 4 - costs creates higher leverage Increases in...

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Class notes 2/8 Margin of safety in units= sales- breakeven in units Margin of safety in $= sales- breakeven $ Operating leverage- mix of fixed to variable costs in a company, higher proportion of fixed to variable
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Unformatted text preview: costs creates higher leverage Increases in operating leverage means larger effect of sales on income = cm/ operating income % change in operating income= degree of operating leverage x % change in sales...
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This note was uploaded on 05/04/2011 for the course ACCOUNTING 2102 taught by Professor Wurst during the Spring '11 term at Temple.

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