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James notices that his 2-week-old daughter can look at an object with one eye, while the other eye seems to be looking off to the side. What is it called when both eyes can focus on an object and is James' daughter's behavior normal?
Contribution Margin
The amount that one unit contributes to profit. It is defined as price minus marginal cost.
Fixed Costs
Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, or insurance premiums.
Break-Even Quantity
The amount you need to sell to at least break even (make zero profit). The formula (assuming that you can sell all you want at price and with constant marginal cost) is Q = F/(P - MC), where F is fixed costs, P is price, and MC is marginal cost.
Zero Profits
Zero profits, or normal profit, occur when a company's total revenues exactly match total costs, leaving no net profit or loss.
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