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The graph indicates that there is
Markup
The increment added to the acquisition cost of products to address company overheads and earn profit.
Absorption Costing
An accounting method where all manufacturing costs, including both variable and fixed, are absorbed by the products.
Cost-plus Pricing
A pricing strategy where a fixed percentage or specified amount is added to the production cost to determine the sell price of a product or service.
Return on Investment
A profitability metric calculated as the net gain from an investment relative to its initial cost, used to measure the efficiency or profitability of an investment.
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