Give an example of how a manager can increase variable costs while decreasing fixed costs.
Manufacturing--subcontracting a component to a supplier on a per-unit basis to avoid purchasing a machine with a high fixed depreciation cost.
Marketing--changing a sales compensation plan from a fixed salary to percent of sales dollars basis
Customer service--hiring a subcontractor to do customer service on a per-visit basis rather than an annual retainer basis.
See: Give an example of how a manager can decrease variable costs while increasing fixed costs.