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Unformatted text preview: -(fixed non mfg costs) = Operating Income Sales-(variable mfg costs) = Manufacturing contribution margin-(variable non mfg costs) = Contribution margin-(fixed mfg costs)-(fixed non mfg costs) = Operating income Operating income Increased by increasing in production Increase by reducing costs The impact of fixe costs on profit Hidden Obvious Absorption and Variable Costing...
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- Spring '11