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Which of the following is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option?
Contribution Margin Ratio
A financial metric that shows the portion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs.
Operating Income
Operating income is the profit earned from a firm's normal business operations, excluding deductions of interest and taxes.
Variable Costs
Costs that vary directly with the level of production or business activity, such as materials and labor.
Contribution Margin Ratio
The proportion of sales revenue that exceeds variable costs, representing the amount contributing to covering fixed costs and generating profit.
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