Fixed vs variable costs and break even explained | John Cousins
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EXPERT TUITION | Educational Services on Instagram: "Fixed vs variable costs explained in 30 seconds 👇 1️⃣ Fixed costs don't change with output. Produce nothing or produce everything, the cost stays the same. Rent is the classic example. 2️⃣ Variable costs change with output. The more you produce, the more you pay. Ingredients, materials, raw inputs. 3️⃣ Easy test: "Do I need more of this to produce more output?" Yes = variable. No = fixed. 4️⃣ Chocolate factory paying rent? Fixed. Buying more
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