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A bank asks customers to evaluate the drive-thru service as to good, average, or poor. Which level of measurement is this classification?
Contribution Margin Ratio
A financial ratio that shows how much of a company's sales revenue is available to cover its fixed costs and contribute to net profit, calculated as contribution margin divided by sales revenue.
Fixed Costs
Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.
Break-Even Point
The financial state where a company's total revenues equal its total costs, resulting in neither profit nor loss.
Variable Costs
Costs that fluctuate in direct proportion to changes in production or sales volume, such as raw materials and labor.
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