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The incremental decision process model places emphasis on:
Contribution Margin Ratio
A financial metric that shows what portion of sales revenue is available to cover fixed costs and generate profit after variable costs have been paid.
Fixed Expenses
Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance premiums.
Break-Even Point
The sales level at which a business neither makes a profit nor incurs a loss.
Variable Expenses
Expenses that vary directly with the amount of production or the degree of business activity.
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