Give an example of how a manager can decrease variable costs while increasing fixed costs.
Manufacturing--substituting a robotic machine for hourly wage workers.
Marketing--changing a sales force compensation plan from a percent of sales dollars to a fixed salary.
Customer service--hiring a subcontractor to do customer repair visits on an annual retainer basis rather than a per-visit basis.
See: Give an example of how a manager can increase variable costs while decreasing fixed costs.