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What three factors affect the effectiveness of incentives?
Fixed Costs
Fixed costs are those business expenses that do not change with the level of goods or services produced, such as rent.
Break-even Sales
The amount of revenue needed to cover both the fixed and variable costs of a business, resulting in no profit or loss.
Unit Selling Price
The price at which a single unit of product is sold, not including any discounts or promotions.
Unit Variable Costs
The variable costs associated with producing one unit of a product, including materials, labor, and any other variable expenses.
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