Examlex
The following figure shows an example of:
Variable Manufacturing Costs
Variable manufacturing costs are expenses that fluctuate with production volume, such as raw materials and direct labor costs.
Contribution Margin
The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.
Production Capacity
The maximum amount of goods or services that a facility can produce over a given time period under normal operating conditions.
Sales Mix
The proportion of different products or services that make up the total sales of a company.
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