Homework answers / question archive / the relative proportion of its fixed and variable costs the greater the proportion of these costs in a firm's cost structure, the greater the impact on profit will be from a given percentage change in sales revenue the extent to which an organization uses fixed costs in its cost structure; greatest in firms with a large proportion of fixed costs, low proportion of variable costs, and the resulting high contribution-margin ratio used to measure a firm's operating leverage at a particular sales volume; measures the percentage impact on net income of a given percentage change in sales revenue = contribution margin / net income activity-based costing CVP analysis recognizes:  

the relative proportion of its fixed and variable costs the greater the proportion of these costs in a firm's cost structure, the greater the impact on profit will be from a given percentage change in sales revenue the extent to which an organization uses fixed costs in its cost structure; greatest in firms with a large proportion of fixed costs, low proportion of variable costs, and the resulting high contribution-margin ratio used to measure a firm's operating leverage at a particular sales volume; measures the percentage impact on net income of a given percentage change in sales revenue = contribution margin / net income activity-based costing CVP analysis recognizes:  

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1. the relative proportion of its fixed and variable costs
2. the greater the proportion of these costs in a firm's cost structure, the greater the impact on profit will be from a given percentage change in sales revenue
3. the extent to which an organization uses fixed costs in its cost structure; greatest in firms with a large proportion of fixed costs, low proportion of variable costs, and the resulting high contribution-margin ratio
4. used to measure a firm's operating leverage at a particular sales volume; measures the percentage impact on net income of a given percentage change in sales revenue
5. = contribution margin / net income
6. activity-based costing CVP analysis recognizes: