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Shaping is achieved through:
Variable Costs
Costs that change in proportion to the level of output or business activity.
Total Revenue
The overall income generated by a firm from its sales activity, calculated as the quantity sold multiplied by the selling price.
Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.
Variable Costs
Expenses that change in proportion to the activity or production level, such as raw materials, labor costs, and energy usage, in contrast to fixed costs which remain constant regardless of output.
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