Provide explanations for the following related journal entries:
a.
b.
c.
d.
e.
Definitions:
Contribution Margin
The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and generate profit.
Absorption Costing
A costing technique that incorporates all costs associated with production, including both fixed and variable expenses, into the product's price.
Income Increase
A rise in the amount of money earned from various sources, including work, investments, or business operations.
Variable Costing
A costing method that includes only variable costs—costs that change with production levels—in the calculation of product costs.
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