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Contribution Margin
The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and profit.
Pretax Net Income
The amount of income earned by a business before taxes have been deducted.
Absorption Costing
A method of product costing that includes all manufacturing costs, both variable and fixed, in the cost of a unit of a product.
Pre-Tax Net Income
The income that a company earns before any taxes are deducted, reflecting the earnings from its core business operations.
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