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The most powerful approach to integrated direct marketing is:
Variable Production Costs
Expenses that vary directly with the volume of production or sales, like direct labor and raw materials.
Fixed Monthly Cost
Regular expenses that do not fluctuate with production volume or sales, such as rent, salaries, and insurance, billed on a monthly basis.
Contribution Margin
Contribution margin is the difference between sales revenue and variable costs of a product or service, highlighting how much revenue contributes towards covering fixed costs and generating profit.
Fixed Manufacturing Overhead
The portion of manufacturing overhead costs that remains constant regardless of the level of production, such as salaries of supervisors and rent of the factory.
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