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Contribution Margin Ratio
The portion of sales revenue left over after variable expenses have been deducted, expressed as a percentage of sales revenue.
Variable Expenses
Costs that vary in direct proportion to changes in an activity level or volume, such as raw materials and direct labor.
Sales
Sales refer to the revenue generated from the exchange of goods or services for money or other assets between a seller and a buyer.
Net Operating Income
The profit generated from a company's regular business operations, excluding expenses like taxes and interest.
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