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Perform the following calculations and express answer to the nearest hundredth.
Contribution Margin
The selling price of a product minus the variable cost per unit, used to cover fixed costs and contribute to net profit.
Fixed Costs
Expenses that do not change with the level of production or sales activities within a short time.
Variable Costs
Expenses which are dependent on the volume of activity within a business.
Profit-Volume Chart
A graphical representation that shows the relationship between a company's profits and its volume of sales, illustrating the break-even point and profit levels at different sales volumes.
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