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Three components of food are:
Contribution Margin
The difference between sales revenue and variable costs of a product or service, indicating how much contributes to covering fixed costs and generating profit.
Direct Manufacturing Cost
Expenses directly tied to the production of goods, including materials and labor costs.
Indirect Manufacturing Costs
Expenses related to the production process that cannot be directly traced to individual products, such as utilities or salaries for management.
Contribution Margin
The amount by which a product's sales revenue exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.
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