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Annuities guarantee retirement income but come with a variety of fees, costs, and hidden charges. Learn what to expect before you invest in an annuity.

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For example, XYZ Corp has $10,000 in fixed costs and $5,000 in variable costs to produce 1,000 widgets in January. The cost per unit would be $15 per unit: 10,000 +5,000 =15,000 ÷1,000 = 15.