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-Refer to the above figure. The points between B and C are known as
Fixed Costs
Costs that remain constant for a business over a period, regardless of the level of goods or services produced.
Composite Units
Units formed by combining different but related items, often used in production or inventory management.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.
Fixed Costs
Expenses that do not change in proportion to the activity of a business.
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