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Direct Material Costs
The expenditures for materials that are directly involved in the manufacturing process of a product.
Fixed Costs
Operating expenses that remain constant regardless of the business activity level, such as insurance or lease payments.
Contribution Margin
The selling price per unit minus the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.
Selling Price
The price at which a product or service is sold to customers.
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