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MATCHING
-Match each item with the correct description below.
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Variable Expense
Expenses that vary directly with changes in production volume or business activity levels.
Contribution Margin Ratio
A ratio that measures the proportion of sales revenue that exceeds variable costs, indicating how effectively a company can cover its fixed costs.
Target Profit
The desired net profit a company aims to achieve for a specific period.
Monthly Fixed Expense
Costs that do not vary in total regardless of production volume or sales levels, paid on a monthly basis.
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