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Contribution Margin
The difference between the sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and earning profit.
Contribution Margin
The residual amount from sales income following the deduction of variable expenses, allocated for covering fixed costs and producing profit.
Variable Costs
Expenses that vary in relation to the amount of production or business activity.
Fixed Costs
Costs that do not change with the level of output produced, such as rent and salaries.
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