I think most small companies try very hard to operate in a manner where its cost structure is mostly variable costs and has hardly any fixed costs. As they grow in size, they might just then prefer fixed costs.When I say fixed costs, I think of depreciation from fixed assets, which means greater capital intensity. identify $1 billion + businesses that you believe are not very capital intensive? Support your reasons. (can be 4-5 sentences)Solution:Variable cost (e.g. material per unit etc.) and fixed cost (e.g. depreciation etc.) are the mostfundamental categories of costs, variable cost is the cost which is incurred on the per…
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