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# Long description

A graph that illustrates the relationship between fixed costs and variable costs. The x-axis represents sales and the y-axis represents costs. At approximately halfway up the y axis, there is a straight horizontal line that extends to the end of the x axis. Everything underneath this line is labelled ‘Fixed costs: fixed costs remain the same regardless of sales activity/output’. From the same point on the y axis, another straight line goes diagonally upwards to the end of the x axis. Everything between the two lines is labelled ‘Variable costs: variable costs change based on your sales activity/output’.