University of Maryland Extension

Fixed/Overhead expenses

Calculating the profit

Urban Ag home | Table of contents When you subtract out variable/operating, fixed/overhead, and depreciation expenses from the income, the result is profit. With the profit, you can pay yourself (If you haven’t already expensed a salary for yourself), grow the business, and pay down debt principal...

Fixed/Overhead expenses

Urban Ag home | Table of contents You incur some fixed/overhead expenses that are not directly associated with the amount of agricultural products you produce. For example, expenses like property taxes, insurance, loan interest, utilities, and office supplies do not vary with the amount of crops...
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