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UNIT ECONOMICS5 MIN READ

Sort the costs: fixed, variable, or mixed

Classify common business costs by how they behave at the unit level so contribution math stays honest.

Place each cost item into the bucket that best describes how it behaves for short-run unit decisions. Fixed cost Variable cost Mixed cost Payment-processing fee charged as a percentage of each sale Warehouse rent on a one-year lease Cloud bill with a committed minimum plus usage above the threshold Implementation contractor hours billed only when new enterprise accounts launch Customer success payroll with a base team plus seasonal overtime during onboarding spikes Annual ERP license already contracted for the year

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