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In stage 1 of Kohlberg's model, ethical reasoning is motivated by:
Contribution Margin Ratio
The percentage of each sales dollar remaining after variable costs have been subtracted, indicating how much contributes towards fixed costs and profit.
Fixed Expenses
Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, insurance, and property taxes.
Margin of Safety
The difference between actual or expected sales and the break-even sales, measured to assess the risk of incurring losses.
Contribution Margin
The amount by which sales revenue exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.
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