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Contribution Format
A type of income statement where costs are classified as variable or fixed, and the contribution margin is computed by subtracting total variable costs from sales.
Contribution Margin
The difference between total sales revenue and total variable costs, used to cover fixed costs and generate profit.
Contribution Format
An income statement format that separates fixed and variable costs, facilitating analysis of the impact of sales volume on profit.
Unit Contribution Margin
The amount that the sale of one unit contributes toward covering fixed costs and then to profit, calculated as the selling price per unit minus the variable cost per unit.
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