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So, after deducting $10.00 from $20.00, the contribution margin comes out to $10.00. There are two main business factors that impact BPE, these are fixed costs and variable costs. The fixed costs refer to necessary expenses such as rent or mortgage payments, utilities, marketing, research and development, etc. These are essential operational expenses that keep…
It is calculated either as a firm’s total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders’ equity might include common stock, paid-in capital, retained earnings, and treasury stock. Shareholders’ equity refers to the owners’ claim on the assets of a company after debts…