61. Firms that sell supercomputers spend huge amounts on research and development and other fixed costs. 62. Fixed costs include its considerable pension and health care burdens. 63. Fixed costs increased because meeting rooms needed freezers. 64. For instance, the manufacturing team had four subteams, which reviewed capacity, productivity, fixed costs and investments. 65. Ford said that the lower volume of sales overall caused the dropoff, by leaving the company with fewer sales over which to spread out its fixed costs. 66. He wanted a way to bolster productivity while keeping a lid on fixed costs. 67. High fixed costs should be a handicap in an industry with sharp fluctuations in demand, but Saga is unworried. 68. High fixed costs is the major reason that explains the difference. 69. Hotel companies have high fixed costs to meet, while the telecommunications and cable industries both require large up-front investments which can take several years to generate returns. 70. Hotel resorts, which have high fixed costs, can substantially improve results with even an incremental increase in their occupancy rates. |