Angle of Incidence.

Q78. What is the Angle of Incidence?
Ans. This is the angle at which the total sales line cut the total cost line. In other words it shows the Break Even Point (BEP) and margin of safety position.

Angle of incidence may be of four types:

  1. Low Break Even Point and large angle of incidence.
  2. Low Break Even Point and small angle of incidence.
  3. High Break Even Point and low angle of incidence.
  4. High Break Even Point and high angle of incidence.

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