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Explain Why Gross Margin and Contribution Margin Are Often Identical

question 153

Essay

Explain why gross margin and contribution margin are often identical in the case of merchandising companies.
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Definitions:

Glucose

A simple sugar and a key source of energy for living organisms, also a vital component of many carbohydrates.

Deamination

A biochemical process where amino groups are removed from amino acids, typically resulting in the creation of ammonia and keto acids.

Urea

A nitrogenous waste compound produced in the liver, resulting from protein metabolism, and excreted in the urine.

Acidic Blood

Blood with a pH level below the neutral pH of 7.0, often indicating a medical condition or response to environmental stress.

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