What are fixed costs?
Fixed costs are expenses that remain constant regardless of business activity levels.
What are examples of fixed costs?
Examples include rent, insurance, and salaries.
Why are fixed costs important?
They affect profitability and break even analysis.
Can fixed costs change?
They remain stable in the short term but may change over time.
How do fixed costs impact pricing?
Businesses must cover fixed costs when setting prices to ensure profitability.