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Briefly summarize the senior and junior authors' background and perspective.
Variable Costs
Costs that vary in direct proportion to changes in the level of production or sales activity.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.
Machine Hours
A measure of production time, calculated as the total hours that machinery is operated over a specific period.
Contribution Margin
The amount remaining from sales revenue after variable costs have been deducted, indicating the contribution of sales to covering fixed expenses.
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