Examlex
The economic order quantity (EOQ) is the order quantity which minimizes the carrying costs per unit per period.
Variable Costs
Costs that vary directly with the level of production or sales volume, such as raw materials or commission on sales.
Fixed Expenses
Costs that do not change with the level of production or business activity.
Unit Contribution Margin
The amount by which the selling price of a unit exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.
Fixed Expenses
Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance.
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