If the variable costs and expenses are deducted from sales, the difference is contribution margin.

Margin of safety is the measure of the effect a percentage change in sales revenue has on profit before taxes.

Profit is yield when sales is deducted from total cost and expenses.

Fixed costs are costs that do not change with changing levels of activity.

Cost behavior refers to the way cost change with respect to a change in the activity level.

The magnitude of the operating leverage factor is directly related to the level of fixed cost.

Margin of safety ration plus contribution margin ration is equals to profit ratio.

Margin of safety is the difference between actual or planned sales volume and break-even sales.

Contribution margin ratio is also called as profit-volume ratio.