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2. Choose a real or made up example of a company, and describe at least three fixed costs the company has.

User Yhn
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Answer:

Let's consider the example of a manufacturing company that produces custom-made furniture.

Three fixed costs for this company could be:

Rent: The company has a factory where it manufactures the furniture. It needs to pay rent for the factory space, which is a fixed cost as it does not change based on the number of furniture pieces produced.

Salaries: The company employs workers who manufacture the furniture, and it needs to pay them a fixed salary each month. This is a fixed cost as the company needs to pay the same amount each month, regardless of the number of furniture pieces produced.

Insurance: The company needs to insure its factory, equipment, and workers against any damages or accidents. The insurance premium is a fixed cost as it remains the same regardless of the number of furniture pieces produced.

Step-by-step explanation:

User Madhav Datt
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