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Contribution Margin
The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.
Net Operating Income
The income generated from normal business operations after subtracting operating expenses from gross profit.
Fixed Expenses
Costs that do not fluctuate with changes in production level or sales volume, ensuring stability in budget planning.
Cost-Plus Approach
A pricing strategy where a fixed percentage or fixed amount is added to the total cost of producing a product or delivering a service to determine its selling price.
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