The loan-origination platform has high fixed costs, so it is a scale business.
High fixed costs should be a handicap in an industry with sharp fluctuations in demand, but Saga is unworried.
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In an industry with such high fixed costs, it is tempting to sell at almost any price to keep the cash coming.
If you want action, pick a service company with a lot of operating leverage, or high fixed costs in proportion to revenue.
Of course the super-high fixed costs imposed by the Dodd-Frank regulatory regime will keep existing banks from growing and new banks from forming.
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This has allowed internet companies to poach sales from big box stores, and crater profits for brick-and-mortar companies that are drowning under high fixed costs.
High fixed costs do make short routes more expensive, per mile.
What Ramsey proved is that the most economically efficient way to set prices when producers have high fixed costs and low marginal costs is (roughly) to soak the rich.
The more Americans abandon it to go mobile-only or make phone calls over the internet, the more fragile it becomes: its high fixed costs have to be spread over ever fewer subscribers.
The two Japanese carriers argue weakly that many of their fixed costs, such as high landing and fuel charges in Japan, are not of their making.
Because the number of potential customers for such experimental sensors is small, the firms manufacturing them have to charge a high price per unit just to cover the fixed costs of designing the product, setting up the factory, and so forth.
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He said many people on low fixed incomes and facing high food and fuel costs would be very worried about getting a below-inflation increase and "in some cases therefore are going to see quite a significant reduction in their weekly income".
Disney has high operating leverage as the bulk of its costs are fixed.
Unlike existing works that emphasise institutional and historical factors, this study analyses the importance of the presence of fixed costs as a source of market imperfections and very high profits in certain towns.
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