They say fixed costs are things that can’t go away. Buildings, machinery, alimony (that last one is a joke, people). They lie.
Fixed costs don’t really exist. For example, if you ran out of all your money, you would get rid of that building (or it may be taken from you). When you can’t pay, or are unwilling to, the costs goes away. Of course, the benefit goes away too.
Just because something is categorized as a fixed cost does not mean it is permanent and can’t be cut or reduced. Fixed costs are usually the less liquid costs. Maybe they are more arduous to cut. But they can be cut. All costs can be cut.
