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Which group is incorrect?
Profit Graph
A visual representation of how a company’s profits change at different levels of sales volume or production output.
Contribution Margin Ratio
The percentage of sales revenue that exceeds variable costs, indicating how much earnings are available to cover fixed expenses and generate profit.
Fixed Expenses
Recurring costs that do not vary with the level of production or sales over a short period, such as rent or salaries.
Variable Cost
Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.
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