CONTRIBUTION MARGIN PER UNIT Definition

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CONTRIBUTION MARGIN PER UNIT, also known as dollar contribution margin per unit, is the selling price per unit minus the variable cost per unit. The "contribution" represents that portion of sales revenue that is not consumed by variable cost, thereby contributing to the coverage of fixed cost.

 

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MANAGEMENT BUY-IN is the purchase of a company that is in trouble where the investors bring in new management for a turn-around.

CURRENT COUPON is the the coupon for a recently issued bond that reflects the prevailing level of interest rates, with the result that the bond is priced at or close to par value.

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