Examlex
Which of the following best defines nonprofit marketing?
Contribution Margin
The gap between a product's sales revenue and its variable expenses, which serves to offset fixed costs and produce earnings.
Variable Cost
Expenses that adjust in direct correlation with changes in production or sales levels.
Fixed Costs
Expenses that do not change with the level of production or sales activities within a certain range, such as rent, salary, insurance, and loan payments.
Break-even Point
The break-even point is the level of production or sales at which total revenues equal total costs, resulting in no net profit or loss.
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