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Fixed Costs
Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.
Variable Costs
Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.
Dollar Contribution Margin
The difference between total sales revenue and total variable costs, expressed in absolute currency terms.
Variable Cost
Costs that change in proportion to the level of production activity or volume, such as raw material costs and direct labor costs.
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