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Contribution Margin
The residual amount from sales income following the deduction of variable expenses, allocated for covering fixed costs and producing profit.
Variable Costs
Expenses that vary in relation to the amount of production or business activity.
Fixed Costs
Costs that do not change with the level of output produced, such as rent and salaries.
Break-Even Point
The financial analysis term where total costs and total revenues are equal, resulting in no net loss or gain for the business.
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