Assumptions Are

question 25

Multiple Choice

Assumptions are:

• A) not part of a leader's mental model.
• B) part of a leader's mental model.
• C) an expression of the organizational mission.
• D) a personality trait.

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Definitions:

Contribution Margin

The difference between the sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and earning profit.

Contribution Margin

The residual amount from sales income following the deduction of variable expenses, allocated for covering fixed costs and producing profit.

Variable Costs

Expenses that vary in relation to the amount of production or business activity.

Fixed Costs

Costs that do not change with the level of output produced, such as rent and salaries.