The affect on a firm"s revenue resulting indigenous a adjust in the number of units sold have the right to be assessed by multiply the unit contribution margin through the adjust in units sold assuming that fixed costs remain the same.

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The donation margin earnings statement provides a an excellent check to determine if the sale of a certain number of units really outcomes in operating revenue of the provided amount.
A company with a low degree of operating leverage is at better risk during downturns in the economy.
Companies with a greater proportion the fixed expenses have a higher risk of loss than companies with a greater proportion of change costs.
The cost-volume profit graph depicts the relationships among cost, volume, and profits, by plotting the full revenue line and also the complete cost line on the graph.

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The profit-volume graph shows the relationship in between operating income and the variety of units sold.
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