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Net Operating Income
The revenue from a business's operations after subtracting operating expenses, excluding taxes, and interest.
Common Fixed Expense
Costs that do not vary with production volume, and are shared among different products or business segments.
Contribution Margin Ratio
The portion of sales revenue left over after variable expenses have been deducted, expressed as a percentage of sales revenue.
Variable Expenses
Costs that vary in direct proportion to changes in an activity level or volume, such as raw materials and direct labor.
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