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It's a huge advantage to turn CapEx into a variable expense.
For example, to limit their employees' permitted mileage rate, to regulate variable expense coverage (e.g., fuel, tolls), etc.
"The fact that it's a variable expense and you can do everything on a minimum quantity of one – that's really the differentiator," says Avidar.
Yet a 34-percent decline in fuel costs, airlines' greatest variable expense, has boosted their profit.
This is an important issue when one considers that antibiotic use is often viewed as a variable expense in the hospital setting that can be manipulated to achieve cost savings.
Enter the amount that will be spent to produce 1 unit of your product for each variable expense.
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His service "allows you to recover those variable expenses that slip through the cracks," he added.
As you can see, the main variable expenses of our budget are compensation and scholarship.
An alternative strategy that makes sense, theoretically, is to cut variable expenses in line with the sales drop.
If the railroad decides to move the cars, it incurs variable expenses, such as fuel for the engine and salary for the crew.
So in round numbers, let's figure that the 50-percent gross profit after you pay your stylists gets whittled down to about 40 percent after you subtract all of these variable expenses.
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