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While looking at his professor,Brian finds himself thinking about his date on Friday,rather than about what his professor is saying.Brian's attention on his date is an example of ____.
Variable Costs
Expenses that vary directly with the level of production or sales volume, such as raw materials and sales commissions.
Fixed Costs
Financial obligations such as rent, salaries, and insurance that do not fluctuate with changes in production or sales levels.
Contribution Margin
The amount remaining from sales revenue after variable costs have been deducted, used to cover fixed costs and generate profit.
Margin of Safety
The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.
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