Operating leverage-margin of safety and cost behavior

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Reference no: EM1348885

What is the accounting concept to explain how a 3% decline in sales could cause a 21% decline in profits. Also, discuss the effect of declining sales on an organization's margin of safety.

Reference no: EM1348885

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Operating leverage-margin of safety and cost behavior : What is the accounting concept to explain how a 3% decline in sales could cause a 21% decline in profits. Also, discuss the effect of declining sales on an organization's margin of safety.

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