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A school age child is allowed to watch cartoons only after the homework has been completed and the assigned chores for the day are done. On days the homework is unfinished, or chores are left undone, the child is denied cartoon time. As a result, the child has become responsible about what is expected. Which strategy are the parents using to shape the child's habits?
Contribution Margin
The amount of revenue remaining after deducting variable costs, used to cover fixed costs and contribute to profit.
Variable Expenses
Expenditures that fluctuate in alignment with the quantity of production or sales figures, like labor costs and materials used.
Traceable Fixed Expenses
Fixed expenses that can be directly linked to a specific segment of a business and would disappear if the segment did not exist.
Contribution Margin
The difference between the sales revenue of a product and its variable costs, indicating how much contributes to covering fixed costs and generating profit.
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