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Graph the inequality.
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Variable Cost
Costs that change in proportion to the level of production or business activity, such as materials, labor, and utility costs.
Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salary, or insurance, providing stability to a company's expense structure.
Margin of Safety
The difference between actual or projected sales and the break-even point, often expressed as a percentage.
Contribution Margin Ratio
A financial metric showing the percentage of revenue that exceeds total variable costs, indicating how much revenue contributes to fixed costs and profit.
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