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Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________.
Variable Costs
Expenses that change in proportion to the activity of a business, such as costs for raw materials or production costs.
Fixed Costs
Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.
Incremental Cash Flow
The additional cash flow from taking on a new project, calculated as the difference between the project's cash flows if the project is taken versus if it is not.
Incremental Cash Flow
The additional cash flow a company receives from undertaking a new project, considering the revenue and costs involved.
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