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Contribution Margin
A financial metric that represents the difference between a company's sales revenue and variable costs, used to cover fixed costs and profits.
Fixed Costs
Costs that do not fluctuate with the level of production or sales within a certain range, such as rent, salaries, and insurance premiums.
Variable Cost Per Unit
The cost associated with producing one additional unit of product or service, which varies depending on the level of production or service delivery.
Selling Price Per Unit
The amount at which a single unit of product is offered for sale to customers.
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