ENTREPRENEURSHIP

Detailed explanation-1: -In general, companies with a high proportion of variable costs relative to fixed costs are considered to be less volatile, as their profits are more dependent on the success of their sales.

Detailed explanation-2: -Variable costs are hugely important to a business as it can have a major impact on how a company spends their money. Depending on the strategic goals of a business, variable costs can be quite high (in the case of a lot of change in a business) or quite low.

Detailed explanation-3: -Variable cost-plus pricing is a pricing method whereby the selling price is established by adding a markup to total variable costs. The expectation is that the markup will contribute to meeting all or a part of the fixed costs and yield some level of profit.