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

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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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