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Contribution Margin Ratio
The percentage of each sales dollar that remains after variable costs have been deducted, contributing towards covering fixed costs and generating profit.
Net Operating Income
The total profit of a company after operating expenses are subtracted from gross profit but before income taxes and interest are deducted.
Fixed Monthly Expenses
Regularly occurring costs that remain the same each month, such as rent or salaries.
Contribution Format Income Statement
An income statement format that separates fixed costs from variable costs and is used to calculate the contribution margin.
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