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Variable Costs
Expenses that vary directly with the level of production or sales volume, such as materials and labor.
Profitable
Generating revenue that exceeds the expenses, costs, and taxes needed to sustain the activity.
Average Total Cost
The cost per unit of output, calculated by dividing the overall production costs by the number of units produced.
Profit-maximizing
A strategy or point where a business reaches the highest possible profit level with given operational limits and market conditions.
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