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Which of the following is necessary for a corporation to pay cash dividends?
Contribution Margin
The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.
Sales Revenue
The total amount of money generated by a company from its sales of goods or services before any expenses are subtracted.
Variable Cost
Costs that adapt in response to modifications in business activity volume.
Fixed Cost Per Unit
The total fixed costs of production divided by the number of units produced, indicating how cost allocation changes with production volume.
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