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Fixed Expenses
Costs that do not change with the level of company activity or production volume, such as rent or salaries.
Unit Contribution Margin
The profit per unit sold, calculated by subtracting the variable cost per unit from the selling price per unit.
Break-Even Point
The level of production or sales at which total costs equal total revenue, meaning the business neither earns nor loses money.
Contribution Margin Percentage
The ratio of contribution margin (sales revenue minus variable costs) to total sales revenue, expressed as a percentage.
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