What is angle of incidence in a break-even chart?

Angle of incidence (0) is the angle between the total cost line and the total sales line. If the angle is large, the firm is said to make profits at a high rate and vice-versa.

A high angle of incidence and a high margin of safety indicate sound business conditions.

Angle of incidence

A small angle of incidence and a low margin of safety indicate unsound business conditions.
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