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Contribution Margin
The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.
Variable Cost
Expenses that vary directly with the level of production output or sales volume, such as raw materials and direct labor costs.
Sales Revenue
Income earned from the sale of goods or services, representing the primary source of income for businesses involved in retail or wholesale trade.
Safety Margin
The difference between the actual performance of an entity and its break-even point.
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