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An instructor uses multiple forms of media to help the class understand a difficult topic. Unfortunately learners are still having a hard time with the concept. Noticing difficulty, the instructor creates another learning tool to explain the topic another way. Which of the following BEST describes the skill the instructor is using?
Pre-tax Income
Pre-tax Income is the amount of income earned by a business before any taxes have been deducted.
Contribution Margin
The sum by which the income from sales surpasses variable expenses, showing the extent to which revenue aids in covering fixed costs and generating profit.
High-low Method
A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.
Variable Component
An element of cost or expense that varies directly with changes in production volume, business activity, or other drivers.
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