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Write an equation of the line described.
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Variable Costing
An accounting method that considers only variable costs in calculating the cost of goods sold and determines contribution margin.
Fixed Overhead
Costs that do not change with the level of production activity, such as rent, salaries, and insurance.
Operating Income
Earnings from a company's core business operations, excluding expenses and revenues from non-operational activities like investment income.
Absorption Costing
A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.
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