Examlex
What does the elastic clause entail?
Contribution Margin
The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.
Fixed Costs
Fixed costs refer to business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.
ROI
Return on Investment, a performance metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.
Variable Costs
Costs that vary directly with the level of production or sales volume, such as materials and labor.
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