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Evaluate the following expression.
Manufacturing Firms
Companies that use labor, equipment, and raw materials to produce finished goods.
Service Firms
Companies that provide intangible products or services to consumers or other businesses rather than physical goods.
Contribution Margin Ratio
The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income. Also called profit-volume ratio.
Contribution Margin
The income left over after subtracting variable expenses, which is utilized to pay for fixed costs and create earnings.
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