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Explain the significance of a personal guarantee.
Operating Income
Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core business operations.
Fixed Costs
Operating expenses of a business that remain constant regardless of the volume of production or sales.
Unit Contribution Margin
The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.
Operating Income
Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.
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