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The types of goods that require a sales force are less expensive than those that don't.
Contribution Margin
The portion of sales revenue that exceeds variable costs, serving to cover fixed expenses and contribute to profits.
Fixed Manufacturing Cost
Involves the expenses that do not fluctuate with the level of production, such as rent for factory premises, salaries of permanent employees, and depreciation of factory equipment.
Relevant Range
The band of normal activity level or volume in which specific cost and revenue relationships hold true.
Mixed Costs
Expenses that have both fixed and variable components, changing in total with the level of activity but not in a directly proportional manner.
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