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Simplify.
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Fixed Costs
Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.
Fixed Manufacturing Overhead
Costs that remain constant regardless of the level of production or output in a manufacturing environment.
Variable Distribution Costs
Expenses that change in proportion to how a product is stored, handled, and delivered.
Contribution Margin
The amount remaining from sales revenue after variable expenses are deducted, indicating how much of the revenue actually contributes to covering fixed costs.
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