1. How do variable cost and fixed cost affect one’s business?
2. What will happen if the price of raw materials or electricity bills is too high?
2. What will happen if the price of raw materials or electricity bills is too high?
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1. A change in your fixed or variable costs affects your net income. It also affects your company's breakeven point.
2. Because higher raw material prices increase production costs at company level. This, in turn, could be felt by consumers if the companies pass the increases on to consumers.
I don't know if my answer is correct, hopefully correct