Sorry, you're looking at net income. I'm talking gross profit.
Fixed costs are in SG&A (G & A stands for General and Administrative). Unless they have a really incompetent accountant, cost of goods sold (the expense portion of gross profit) should be variable costs only. Those DIRECT costs required to generate the revenues. Pretty much materials and labor involved DIRECTLY in creating the product or service.
They REALLY do need to get that gross profit number positive, and larger. Much larger because of the fixed costs.
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