Harvard Business Review

JULY 2, 2014

These costs are fixed because they will not change with the number of kites sold. Therefore, the unit variable costs to make a single kite is: $50 ($20 in materials and $30 in labor). What if we change the variable cost of producing a good? How much would sales need to increase to compensate for the extra cost?

Variable Costs 18

Variable Costs Fixed Costs Sales Sales 18

Harvard Business Review

JULY 2, 2014

These costs are fixed because they will not change with the number of kites sold. Therefore, the unit variable costs to make a single kite is: $50 ($20 in materials and $30 in labor). What if we change the variable cost of producing a good? How much would sales need to increase to compensate for the extra cost?

Variable Costs 10

Variable Costs Fixed Costs Sales Sales 10

Harvard Business Review

OCTOBER 14, 2014

Second, because they can’t yet afford the high-margin top brands, they’re not all that attractive to incumbents worried about generating enough cash to cover their high fixed and variable costs. Others point out the strong similarities between Xiaomi’s operating system (named MIUI) and Apple’s iOS.

Variable Costs 15

Variable Costs Sales Sales Marketing 15

Harvard Business Review

JULY 27, 2017

Third, corporate VCs and accelerators are costly and complex to operate, turning them into a slow and expensive innovation tool. The two managers secured buy-in from top BMW R&D executives to launch such a unit, and they received top-management approval for the unit in July 2014.

Fixed Costs 8

Fixed Costs Variable Costs Administration Media 8