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Variable Costs
Costs that change in proportion to the level of activity or volume of production in a business.
Pretax Income
The amount of income that a company earns before any taxes are deducted.
Variable Cost
Costs that vary in direct proportion to changes in the level of production or sales activity.
Fixed Costs
Costs that do not fluctuate with the level of production or sales activity, such as rent, salaries, and insurance premiums, remaining constant regardless of business volume.
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