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Externalization can have which of the following beneficial effects?
Contribution Margin
The difference between sales revenue and variable costs; used to cover fixed costs and generate profit.
Break-Even Point
The sales level at which the company does not make a profit or incur a loss, denoting a balance between revenue and costs.
Variable Manufacturing Costs
These costs vary directly with the level of production output and include expenses such as raw materials, direct labor, and certain overheads.
Fixed Manufacturing
Costs that do not vary with the level of production or sales, associated with the operation of a production facility.
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