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Contribution Margin Ratio
A financial ratio that measures the profitability of a product by subtracting variable costs from sales and dividing the result by total sales.
Operating Income
The profit realized from a business's operations after subtracting operating expenses from gross profit.
Fixed Costs
Expenses that do not change in proportion to the level of goods or services produced within a certain range.
Break-even Sales
The amount of revenue needed to cover total costs, both fixed and variable, with no profit or loss.
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