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Why should public interest groups be critically judged?
Variable Expenses
Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.
Fixed Expenses
Costs that do not fluctuate with changes in production level or sales volume, such as rent.
Contribution Margin
The amount by which the sales price of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.
Fixed Costs
Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.
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