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Fixed Manufacturing Costs
Costs that remain constant regardless of the level of production or sales volume, such as rent and salaries.
Selling Commission
A fee paid to a sales agent or an employee based on the value of sales generated.
Contribution Margin
The amount remaining from sales revenue after variable production costs have been deducted, indicating how much contributes toward covering fixed costs and generating profit.
Contribution Format
A contribution format income statement categorizes costs as variable or fixed and calculates a contribution margin.
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