Interestingly, a community WSS can serve much greater number of households than just twenty five and, in that case, average fixed cost
would be even further lower.
Two custom harvest firms will most often have different fixed cost totals, and in turn, different average fixed costs
per acre harvested, even if they harvest the same number of acres per year.
If they are to be cost-based, then should they be based on average fixed cost
, marginal cost, or average fixed cost
/marginal cost plus opportunity cost?
Amortization of city debt is rapid (74% retired in 10 years) which Fitch considers prudent, but lends to an above average fixed cost
burden on the budget.
While SFO has an above average fixed cost
structure given its debt levels ($240 per enplaned passenger) coupled with elevated carrier concentration with United, the airport's demand profile serves as a key risk mitigant due to the high level of origination & destination (O&D) enplanements, which represents 77% of total volume.
JBS USA margins reached 6% in the third quarter of 2008, after JBS management was able to reduce average fixed cost
per head by about USD48.
Preserving ample financial flexibility is imperative given the city's risk profile including its under-funded pension systems, an above average fixed cost
burden with debt service above the 10% of spending policy, along with low income levels and high unemployment rates.