On Sep 4, 1:20*am, Fred J. McCall wrote:
John Doe wrote:
:Fred J. McCall wrote:
:
: They're called 'fixed costs' because they're FIXED. *They don't change
: no matter what your flight rate is.
:
:
:I think this is an over-simplification. *If your ground infrastructure
:is setup to handle X flights per year and this requires that one shuttle
:enter maintenance phase before another one is finished, it means that
:you need 2 maintenance bases, and enough employees to process 2 shuttles
:concurrently (or even more if a 3rd shuttle is in a heavy maintenance
hase monopolising a maintenance bay and employees for months/year)
:
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.
What in the history of mankind has ever been fixed that was dubbed
"fixed cost"?
Even gold at $35 an ounce as a fixed cost changed. Nothing is fixed
WRT cost, Freddy. Given enough time.
Eric