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Contribution Margin
The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.
Sales Price
The amount of money for which a product is sold to the customer, excluding any discounts or rebates.
Variable Cost
A cost that varies with the level of output or sales, such as raw materials or direct labor costs.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.
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