A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The ____ of _____ _____ is computed by dividing contribution margin by net operating income.

A method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low activity levels.

A ratio computed by dividing variable expenses by sales.

The excess of budgeted or actual dollar sales over the break-even dollar sales.

The relative proportions in which a company’s products are sold. ____ ___ is computed by expressing the sales of each product as a percentage of total sales.

Estimating the level of sales needed to achieve a desired target profit.

An analytical approach that focuses only on those costs and revenues that change as a result of a decision.

A graphical representation of the relationships between an organization’s revenues, costs, and profits on the one hand and its sales volume on the other hand.

The level of sales at which profit is zero.

A measure of how sensitive net operating income is to a given percentage change in unit sales.

A ratio computed by dividing contribution margin by sales.