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_______ Provide(s)a Means of Gaining an Equitable Return on the Value

question 3

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_______ provide(s) a means of gaining an equitable return on the value delivered and of enhancing a supplier firm's present and future profitability.


Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.

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