What are the disadvantages of a fixed charge?
Could you elaborate on the potential drawbacks of a fixed charge structure? I'm curious about how it might impact financial flexibility, cost efficiency, and ultimately, the overall financial health of a business or individual. For instance, do fixed charges limit the ability to adjust expenses based on changing market conditions or income levels? Are there scenarios where a fixed charge can lead to unexpected financial burdens or constraints? Understanding these potential disadvantages is crucial in making informed financial decisions.