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Contribution Margin
The selling price per unit minus the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.
Selling Price
The price at which a product or service is sold to customers.
Break-Even Point
The point at which total costs equal total revenue, resulting in no profit or loss for the business.
Fixed Costs
Regardless of how much is produced or sold, costs for rent, salaries, and insurance remain unchanged.
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