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According to social cognitive theory, people learn to anticipate consequences mainly by observing the experiences of other people.
Contribution Margin
The difference between sales revenue and variable costs, showing how much sales contribute to covering fixed costs and generating profit.
Variable Costs
Expenses that fluctuate with changes in production volume or service levels, such as materials and labor costs.
Fixed Costs
Payments for rent, salaries to employees, and insurance coverages that stay the same, no matter the production or sales figures.
Break-Even Point
The point at which total costs and total revenue are equal, resulting in no net loss or gain.
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