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The firm's fixed costs are $1 million annually. The firm needs to generate D) $5,848 of sales per day to break even.
In accounting and economics, 'constant charges', additionally referred to as oblique charges or overhead expenses, are enterprise fees that aren't depending on the extent of products or offerings produced by using the commercial enterprise. They have a tendency to be habitual, together with interest or rent being paid in line with the month. Those charges also tend to be capital fees.
Examples of fixed prices are lease and lease expenses, salaries, utility bills, insurance, and loan repayments. some kinds of taxes, like commercial enterprise licenses, are also fixed fees.
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