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As a result of poor soil, all of the following conditions prevailed in New England except that
Contribution Margin
The amount by which a product's selling price exceeds its total variable costs, representing the portion of sales revenue that contributes to covering fixed costs.
Variable Administrative Expense
Costs that vary directly with changes in business activity levels, like sales commissions or raw material costs.
Direct Materials
Raw materials that are directly incorporated into a finished product and can be easily traced to it.
Discretionary Fixed Costs
Discretionary fixed costs refer to fixed costs that can be altered in the short term by current managerial decisions, such as advertising or research and development expenses.
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