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One of the main considerations when installing a machine is the power source.
Product Costs
The total costs associated with making a product, including direct materials, direct labor, and manufacturing overhead.
Variable Cost
Costs that change in proportion to the level of production or business activity, such as materials and labor costs.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profits.
Incremental Manufacturing Cost
The additional cost incurred to produce one more unit of a product, excluding fixed costs.
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