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Variable Cost
Expenses that vary directly with the level of production or sales, such as materials or labor.
Target Net Profit
Target net profit is the specific amount of net income that a company aims to achieve within a certain period, guiding pricing, cost management, and sales volume strategies.
Unit Contribution Margin
The difference between the selling price per unit and the variable cost per unit. This figure shows how much each unit contributes to covering fixed costs and generating profit.
Fixed Costs
Expenses that do not change in total as production volume increases or decreases, such as rent and salaries.
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