Juiced Up determined that the $11,000 per month rent for their store in Manhattan, New York was a cost the company had to pay whether it sold something or not. For Juiced Up, the rental cost was a _______ cost.

The fixed cost is the cost that remains unchanged whether or not the level of production changes. The fixed cost includes supervision, taxes, rent and depreciation expenses, etc.

It is not directly related to company sales.

As in the given case, the rent expense is $11,000 and whether the sale is taking place or not, but the cost remains the same which derived the fixed cost

Juiced Up determined that the​ $11,000 per month rent for their store in​ Manhattan, New York was a cost the company had to pay whether it sold something or not. For Juiced​ Up, the rental cost was a​ _______ cost.

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Juiced Up determined that the $11,000 per month rent for their store in Manhattan, New York was a cost the company had to pay whether it sold something or not. For Juiced Up, the rental cost was a _______ cost.