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Combined Margin
The total margin that results from combining the gross margin and net margin of a company.
Contribution Margin Ratio
A financial metric that shows the percentage of sales revenue that is not consumed by variable costs and contributes to covering fixed costs.
Fixed Expenses
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.
Residual Income
The amount of income that exceeds the minimum rate of return on a project or investment.
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