When talk isn't cheap | The Globe and Mail - 0 views
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Monique T on 15 Jan 12This article describes the cell phone costs that one small business owner is experiencing. These cell phone costs could be both fixed and variable costs - she still has to pay her basic cell phone bill no matter how many clients she has, so that cost is fixed regardless of output, in that sense, because at a certain rate the costs are constant. However, if she has a larger number of customers, and needs to call to deal with more of these customers, therefore going over her monthly plan limits, than the cost will begin to vary, so in that sense it is a variable cost. Overall, she needs to attempt to reduce this production cost in order to gain a better profit for her business.