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Variable Cost Per Unit
The cost that varies with each unit of product produced, directly tied to the production volume, such as materials and labor.
Fixed Costs
Expenses that remain constant regardless of the level of production or sales, including items like rent, salaries, and insurance.
Contribution Margin Ratio
The percentage of sales revenue that exceeds variable costs, indicating how much sales contribute to fixed costs and profit.
Budgeted Sales
Projected sales figures that are estimated by a business for a future accounting period, used for planning and strategic purposes.
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