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The Janzen-Connell hypothesis
Margin Ratio
A financial metric that compares a company's gross profit margin to its revenue, indicating the percentage of sales revenue that remains after accounting for the cost of goods sold.
Contribution Margin
The amount by which product sales revenue exceeds variable costs, showing how much contributes to covering fixed costs and generating profit.
Fixed Costs
Business expenses that do not change regardless of the level of production or sales activities, such as rent, salaries, and insurance.
Revenue
The total amount of income generated by the sale of goods or services related to a company's primary operations.
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