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Theodore, Saskatchewan | I think fry is making a good point because he has the rent in the variable cost. Which means the rent does not make sense. Guys are renting land and transfering equity to other land owners. The justify it by claiming it as an opportunity cost. And the other thing to consider is equipment because it is a fixed capital cost but using it while claiming it is paid for means your are transfering equity from your equipment to other land owners.
Land becomes a fixed cost when it is owned and what you do with it is your choice but you still have the payments or the investment.
Edited by maydel 10/20/2014 13:17
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