"Greg D. Moore \(Strider\)" wrote:

:"Fred J. McCall" wrote in message
.. .
: John Doe wrote:
:
: :Fred J. McCall wrote:
: :
: : If they scale with flight rates then they are not fixed costs. That's
: : not "over-simplification". That's the bloody definition of fixed
: : costs.
: :
: :If they have facilities to support say 12 flights per year, you have
: :fixed costs whether you operate 1 or 12 flights that year.
: :
: :But if you know you won't need more than 3 flights per year, you might
: :be able to scale down those facilities and staffing levels and reduce
: :your fixed costs. (at which point, your costs would be fixed whether you
: perate 1 or 3 flights per year).
: :
: :Think of it in terms of a factory. If you operate 2 production lines in
: :3 shifts, your factory will have equipment and employee costs that are
: :fixed whether the factory runs at capacity or below capacity.
: :
: :But if you are only using 1/6th of the maximum capacity, you could
: :shutdown one production line and only hire one shift of employees to
: roduce what is needed and your fixed costs would be much lower.
: :
:
: Go look up the definition of 'fixed cost'.
:
: If it varies with level of activity, it is a VARIABLE cost.
:
: Let me help you out:
:
: Fixed Cost: Fixed costs are operating expenses that are incurred when
: providing necessities for doing business and have no relation to the
: volume of production and sales (as opposed to "variable costs").
: Examples are rent, property taxes, and interest expense.
:
:Let me help you out Fred.
:

Don't bother. You're usually wrong.

:
:The fixed costs of my local airport are a LOT lower than JFK. Of course my
:local airport handles a lot less passengers than JFK.
:
:So yes, fixed costs CAN vary depending on how you size the program.
:

Then they're not 'fixed costs'.

See definition above.

--
"Some people get lost in thought because it's such unfamiliar
territory."
--G. Behn