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Re: Odessa99 post# 26213

Friday, 05/11/2012 6:54:18 PM

Friday, May 11, 2012 6:54:18 PM

Post# of 80876
I agree with your post only that fixed expenses go up with a growing company.

Yes the variable....say the amount of salaries in a months time will flux a good bit and continue to go up with company growth.

However, fixed expense can too with the growth of a company. Its just that the expense of that item or service remains the same but more of it may be needed with the growth of a company.

Lets say there is a calibration unit that cost $400,000 used on some of their products. Well, there might be a loan that is the same cost per month....yes fixed expense. However, with growth there are new fixed expenses...you might need three of those calibration units and now you have 3 loans at a fixed expense...

just sayin...

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