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In 2012, Canadian Pacific Railway Ltd. announced that it would invest $1.2 billion in order to improve its operating ratio. This is an example of a financial plan.
Selling Price Per Unit
The amount at which a single unit of product is offered for sale to customers.
Contribution Margin
The amount by which a product's sales exceed its variable costs; used to cover fixed costs and contribute to profit.
Variable Cost
Costs that vary in direct proportion to changes in levels of activity or volume of goods produced, such as materials and labor.
Selling Price
The amount charged to customers for a product or service, determining the revenue earned by a business.
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