Learn in the textbookBreak-Even Point Analysis
DefinitionFixed costs (固定費) are costs whose amount stays the same whether sales volume and sales go up or down.
ExplanationExamples include store rent, depreciation on equipment and the base pay of full-time staff. They arise even when nothing is sold, so the business runs at a loss until the contribution margin has covered them in full.
AnalogyIt is like a monthly gym membership: you pay the same amount every month however often you go, even if you never go.