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Fixed Charges |
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Costs that do not vary with changes in output and would continue even if a firm produced no output at all, such as most management expenses, interests on bonded debt, depreciation, property taxes, and other irreducible overhead. |
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| Reckson also converted or redeemed approximately $240 million of Preferred Equity, reducing its fixed charges by approximately $18 million. It also provided that the insurer could reduce the per-diem coverage whenever the insured's per-diem net profits, plus fixed charges for the preceding 12 months, fell below $X. According to the report, per-room income after expenses but before owners' fixed charges averaged $3,981 at full-service hotels in the Los Angeles area in 1992. |
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