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James and Cameron applied for the position of an assistant professor at Luthans University.Though Cameron had more experience and was better qualified, her job application was rejected by the University Board.The Board felt that as a woman, Cameron would not be able to maintain discipline in her class since most of the students were male.James' job application was considered and he was later hired.In this case, the University Board:
Variable Production Costs
Costs that fluctuate directly with the level of output, including materials, labor, and other expenses that vary with production volume.
Fixed Cost
Expenses that remain constant in total regardless of changes in the level of production or sales volume, such as rent, salaries, and insurance.
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.
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