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A firm requires an investment of $30 000 and will return $35 000 after 1 year. If the firm borrows $20 000 at 10%, what is the return on levered equity?
Sales Revenue Per Unit
The amount of money generated from selling one unit of a product, before any expenses are subtracted.
Variable Cost Per Unit
The cost associated with producing one additional unit of a product, which varies with the level of production.
Contribution Margin Ratio
The contribution margin ratio calculates the proportion of sales revenue that exceeds variable costs, showing what portion of sales contributes to covering fixed costs and generating profit.
Selling Price
The amount at which a product or service is sold to customers, determined by factors such as market demand, production costs, and competition.
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