The fixed costs are machinery and materials used for production while the variable costs are rent, employee salary, sales commission, and wages.
What are fixed and variable costs of production?
A fixed cost of production is one whose value cannot be easily changed. Examples include machinery and equipment, factory space, etc.
A variable cost of production is one whose balue can be easily changed. Examples include salaries, wages, etc.
Therefore, the fixed costs are machinery and materials used for production while the variable costs are rent, employee salary, sales commission, and wages.
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