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Generally,as income rises,the average propensity to consume
Fixed Expenses
Costs that do not fluctuate with changes in production level or sales volume, such as leases and insurance premiums.
Contribution Margin
The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.
Return On Investment (ROI)
A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.
Net Operating Income
The total profit of a business after operating expenses are deducted but before taxes and interest are calculated.
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