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Unit Contribution Margin
The amount that each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus variable costs per unit.
Break-even Point
The level of sales or production at which total revenues equal total expenses, resulting in neither profit nor loss.
Variable Expenses
Costs that vary directly with the level of output or activity, such as materials and labor.
Operating Income
The profit realized from a business's operations after subtracting operating expenses from the gross profit.
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