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Employers Who Have Contracts of $100,000 or More with the Federal

question 22

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Employers who have contracts of $100,000 or more with the federal government or receive aid from the government must provide drug-free awareness programs for their employees.


Definitions:

Contribution Margin

It is the amount by which sales revenue exceeds variable costs. It contributes towards covering fixed costs and generating profit.

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.

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