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Perform the indicated operations. Simplify the result, if possible.
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Variable Cost
Financial obligations that shift depending on production or sales levels, notably materials and workforce expenses.
Fixed Cost
Costs that do not vary with the level of production or sales.
Period Cost
Expenses not directly tied to production activity, such as administrative and selling expenses, that are expensed in the accounting period in which they are incurred.
Contribution Margin Ratio
A metric that shows the percentage of sales revenue left after variable costs are deducted, indicating how much contributes to fixed costs and profits.
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