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Contribution Margin Ratio
The percentage of each sales dollar remaining after variable costs have been deducted.
Fixed Expenses
Costs that do not change with the level of output or sales in the short term, such as rent or salaries.
Break-even Point
The production level at which total revenues equal total expenses, resulting in no profit or loss.
Unit Contribution Margin
Unit contribution margin refers to the difference between the selling price per unit and the variable cost per unit, highlighting the profitability of individual items.
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