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Briefly describe the strength of ties.
Contribution Margin
The amount by which a product's selling price exceeds its total variable cost, indicating how much contributes to covering fixed costs and generating profit.
Variable Selling Expense
Costs that vary directly with the volume of sales, such as commissions or shipping fees.
Fixed Selling Expense
Expenses that remain constant regardless of the volume of goods or services sold, such as salaries and rent for the sales department.
Variable Administrative Expense
Expenses that fluctuate in total in direct proportion to changes in activity level, such as sales volume or production output.
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