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A simple business principle is to always cover your fixed Cost.

User Ksharifbd
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Final answer:

A simple business principle is to always cover your fixed costs. Fixed costs are the costs that remain the same regardless of the level of production, such as rent on a factory or equipment costs.

Step-by-step explanation:

In a business, one simple principle is to always cover your fixed costs. Fixed costs are the costs that remain the same regardless of the level of production, such as rent on a factory or equipment costs.

The reason it is important to cover fixed costs is that they are necessary expenses that a business must pay, regardless of how much it produces. If a business fails to cover its fixed costs, it will not be able to make a profit.

For example, imagine a clothing store that pays a set amount of rent each month. Even if the store sells a lot of clothes or only a few, it still needs to cover the fixed cost of rent in order to stay in business.

User Jaume Figueras
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