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Contribution Margin
The amount by which sales revenue exceeds variable costs; it contributes towards covering fixed costs and generating profit.
Variable Costs
Charges that adjust in relation to the quantity of goods or services manufactured by a corporation.
Fixed Costs
Expenses that do not change in response to the level of goods or services produced by the business, such as rent, salaries, and insurance.
Composite Unit
A measurement or quantity combining two or more units to represent a product or system's multiple aspects.
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