Question: The text states that operating leverage itself is neither good nor bad. Explain what is meant by this. Key terms. Using your own words, define

  1. The text states that operating leverage itself is neither good nor bad. Explain what is meant by this.

Key terms. Using your own words, define the following:

  1. Contribution margin
  2. Sales revenue
  3. Magnitude of operating leverage
  4. Activity base
  5. Breakeven point
  6. Margin of safety

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