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business business 4
1.What is meant by a product’s contribution margin ratio? How is this ratio useful in planning business operations?
2.What is meant by the term operating leverage?
3.What is meant by the term break-even point?
4.What is meant by the margin of safety?
5.Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.
100 words each