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Unformatted text preview: Contribution margin-amount remaining from sales revenue after variable expenses deducted to cover fixed costs and provide income Break-even point = level of sales at which profit is zero Once reached- each additional unit sold increases the companys profit by the amount of the unit contribution margin Profit (@ sales volume above B-E) = # units sold (in excess of B-E) x CM per unit Equation method- translates the contribution format income statement into equation form...
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