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Contribution Margin
The amount remaining from sales revenue after variable expenses have been deducted, indicating the contribution towards covering fixed costs and generating profit.
Contribution Format
An income statement variant that divides expenses into variable and fixed groups, emphasizing the contribution margin.
Break-even Point
The point at which total costs and total revenue are equal, leading to neither profit nor loss.
Fixed Expenses
Costs that remain constant regardless of the level of goods or services produced, such as salaries and rent.
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