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Contribution Margin Ratio
A financial metric that measures the portion of revenue remaining after variable production costs that can contribute to covering fixed costs and generating profit.
Unit Contribution Margin
The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.
Variable Costs
Expenses that fluctuate in proportion to the activity or quantity of goods produced.
Operating Income
Earnings before interest and taxes, representing the profit from a company's core business operations.
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