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Divide.
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Total Fixed Cost
The sum of all costs that do not change with the level of output, such as rent, salaries, and loan payments.
Cupcake Bakery
A specialized bakery that focuses on baking and selling a variety of cupcakes.
Variable Cost
Costs that change in proportion to the level of goods or services produced by a business.
Total Cost
The overall expense incurred in the production of goods or services, including both fixed and variable costs.
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