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Variable Costs
Costs that vary directly with the level of production or output, such as materials and labor.
Contribution Margin
The selling price per unit, minus the variable cost per unit, used to determine the profitability of products or services.
Fixed Costs
Business expenses that remain constant regardless of the level of goods or services produced.
Fixed Costs
Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.
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