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Figure 13-14
-According to figure 13-15 above, there are three types of contractual vertical marketing systems (VMS).List and provide a brief description for each one.
Contribution Margin Ratio
The percentage of each sale that exceeds the variable costs and contributes to covering fixed costs and generating profit.
Traceable Fixed Expenses
Fixed costs that can be directly linked to a specific business segment or product.
Segment Margin
The amount of profit or loss generated by an individual segment of a business after deducting direct and traceable costs.
Net Operating Income
The income yielded by a company's primary activities, not including costs or earnings from activities outside its main operations.
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