| 21. | Therefore, total variable cost for each coach was $ 300.
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| 22. | Taking on such a huge variable cost is not a smart proposition for us.
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| 23. | The relation between fixed cost and variable cost can be modelled by an analytical formula.
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| 24. | Fixed costs do not generally depend on the number of units, while variable costs do.
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| 25. | Variable costs, including the supplies and processes used to build cars, are more easily cut.
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| 26. | An analytical formula of variable cost as a function of these factors has been derived.
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| 27. | This can help a company to become more flexible by transforming fixed into variable costs.
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| 28. | "The biggest piece of variable costs is in purchasing, but purchasing can't do it alone.
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| 29. | A firm that is shut down is generating zero revenue and incurring no variable costs.
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| 30. | The model works best in industries that have low variable cost of production or inventory.
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