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Contribution Margin Ratio
The percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.
Mixed Costs
Expenses that have both fixed and variable components, changing with the level of production but also incurring a base cost.
CVP Analysis
Cost-Volume-Profit Analysis, an accounting tool used to determine how changes in costs and volume affect a company's operating income and net income.
Variable
In finance and economics, a variable represents a quantity or factor that can change and influence outcomes, such as price, interest rates, or investments.
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