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As a general rule, the theory of consumer choice provides insight into the behaviour of:
Unit Variable Cost
The variable cost incurred to produce one unit of a product, such as materials or labor.
Net Operating Income
The profitability of a company's core business operations, calculated as gross profit minus operating expenses, excluding interest and taxes.
Sales Commissions
A portion of sales revenue paid to sales personnel as a reward for their sales achievements.
Monthly Net Operating Income
The profit a business makes after paying for all operating expenses but before interest and taxes within a month.
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