You are viewing a single comment's thread from:

RE: Importance of Fixed & Variable COSTS for a Business!

in TradFi7 days ago

Are costs fixed or variable for the company's normal production volume?
Let's assume that normal volume is 100,000 units. The market booms, and the company needs 200,000 units if it wants to maintain its market share.
Either it expands the plant or finds another solution, but its costs will change. Costs must always be reduced. The mistake is only worrying about them during times of crisis.