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In this breakdown we're explaining the difference between fixed costs and variable costs in just 60 seconds. Fixed costs (also known as "overhead") are expenses you must pay regardless of how many units of product you sell. Examples include salaries, rent or lease, insurance, utilities, etc. Variable costs increase or decrease based on how many units you sell. Examples include ingredients and labor directly used to make the product. Subscribe for more breakdowns on everyday business and accounting terms: https://www.youtube.com/c/ParetoLabs?... More 60 Second Breakdowns: • 60 Second Breakdowns At Pareto Labs, it's our goal to boost your confidence at work with over 200 on-demand videos that simplify business education into practical, bite-sized lessons, and give you access to the minds of Fortune 500 executives, billion-dollar startup founders, and top investors. Check out our full course catalog here: https://www.paretolabs.com/ Want to even more tips to elevate your game at work? Follow us on other platforms! Instagram - / paretolabs Facebook - / paretolabslearning LinkedIn - / 72630968