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How do we know why some rocks break and others flow?
Contribution Margin
The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.
Dollar Sales Volume
The total revenue generated from the sale of goods or services, expressed in monetary terms.
Target Net Profit
A specific financial goal for net income that a company aims to achieve within a certain period.
Contribution Margin Ratio
The ratio of contribution margin (sales minus variable costs) to sales revenue, showing the proportion of sales revenue that exceeds variable costs.
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