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Math

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Can investing more money in the business help to reduce the fixed and variable costs of that business?

  • Economics/Finance - ,

    It all depends on where the investment is applied.
    For example, if the company invests in purchasing the company location, it could reduce the fixed cost including the rent, after paying for taxes and maintenance.

    Upgrading the computer system for inventory, for example, could reduce fixed and variable cost, while installing bar-codes could reduce sales costs.

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