| A) | The level of sales at which profit is zero. The break-even point can also be defined as the point where total sales equals total expenses, or as the point where total contribution margin equals total fixed expenses. Sales ? variable expenses ? fixed expenses = $0.
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| B) | The contribution margin as a percentage of total sales.
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| C) | The ratio of variable expenses to sales.
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| D) | An analytical approach that focuses only on those items of revenue, cost, and volume that will change as a result of a decision.
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| E) | The excess of budgeted (or actual) sales over the break-even volume of sales.
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| F) | A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating leverage is computed by dividing contribution margin by operating income.
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| G) | The relative proportions in which a company's products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.
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| H) | The relationships among revenues, costs, and level of activity presented in graphic form.
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| I) | A measure of how sensitive operating income is to a given percentage change in sales. It is computed by dividing the contribution margin by operating income.
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