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Describe LMX theory and identify its main beliefs.
Unit Selling Price
The price at which a single unit of a product is offered for sale to customers.
Unit Variable Costs
The cost associated with producing one additional unit of product, including materials, labor, and other variable expenses.
Break-even Point
The financial state in which total costs and total revenues are equal, meaning no net loss or gain is incurred by the business.
Variable Costs
Costs that change directly and proportionally with the level of production or business activity, such as materials and labor.
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