Harvard Business Review

JULY 2, 2014

These costs might cover the software needed to design the kite and be sure it is sufficiently aerodynamic, the fee paid to a graphic designer to design the look and feel of the kite, and the development of promotional materials used to advertise the kite. These costs are fixed because they will not change with the number of kites sold.

Variable Costs 18

Variable Costs Fixed Costs Sales Sales 18

Harvard Business Review

JUNE 22, 2015

To figure total costs you first multiply the unit quantity sold by the variable costs per unit, then you add the fixed costs. Like this: Note that Price per unit – Variable costs per unit is equal to the Contribution margin per unit. The variable costs to make each pair of flip flops are $14.00.

Variable Costs 15

Variable Costs Fixed Costs Advertising ROI 15

Harvard Business Review

MAY 9, 2013

Much like newspapers, conventional advertising agencies are becoming irrelevant. The radical democratization of business over the last decade created by open innovation, crowdsourcing, and co-creation is transforming how advertising organizations work.

Advertising 14

Advertising Variable Costs Media Fixed Costs 14

Harvard Business Review

JULY 2, 2014

These costs might cover the software needed to design the kite and be sure it is sufficiently aerodynamic, the fee paid to a graphic designer to design the look and feel of the kite, and the development of promotional materials used to advertise the kite. These costs are fixed because they will not change with the number of kites sold.

Variable Costs 10

Variable Costs Fixed Costs Sales Sales 10

Harvard Business Review

JULY 9, 2014

Uber and fellow ride sharing services (such as Lyft and Sidecar) can easily advertise big discounts and regulation-laden taxis are unable to respond. Thus, Uber is pricing below its variable costs. In Boston, for instance, the rates applicable 24/7 are standardized at $2.60

Variable Costs 8

Variable Costs Transportation Government Telecommunications 8

Harvard Business Review

MAY 18, 2018

per month per subscriber, and three movie tickets costs nearly $30, on average, meaning it’s losing nearly $20 per month per subscriber on a variable cost basis. The problem is that MoviePass collects only $9.95 This is a problem that scale (meaning more subscribers) cannot solve.

Advertising 8

Advertising Variable Costs Revenue Operations 8

Harvard Business Review

AUGUST 3, 2018

However, the real revenue-providing customers are companies that pay for advertisements (they may be called “revenue units”). The company should separately present fixed and variable costs, and to the extent possible, detail the variable costs associated with a unit of activity.

Variable Costs 8

Variable Costs Revenue Assets Cash Flow 8