That's partly because of the huge fixed costs of running factories even through periods of low demand. |
You have fixed costs, you have variable costs, and you have profit margins. |
In fact, as the business grows and increases its fixed costs, its operating profit margins are likely to suffer in the short run. |
Retailers have high fixed costs, so small movements in trading volumes have a disproportionately large impact on earnings. |
They want to know my outgoings, my fixed costs, my capital outlay, my VAT number, my date of incorporation. |
However, he said the hotel business had changed over the past decade, with fixed costs a growing concern. |