Given the attached list of fixed, variable, and semi variable costs, please help me explore the possibility of altering the cost behavior of two cost components. I need to come up with a way to change a variable cost to a fixed cost, or a fixed to variable, semi to fixed. I need two examples.

Given the attached list of fixed, variable, and semi variable costs, please help me explore the possibility of altering the cost behavior of two cost components. I need to come up with a way to change a variable cost to a fixed cost, or a fixed to variable, semi to fixed. I need two examples. Please help me understand the pros and cons of altering this cost behavior of these cost components.

For example, Advertising is listed as a “variable” cost. If the company chose to outsource advertising, lets say a 5 year contract at 100k per year, this would change to a fixed cost. What would be the pros and cons?

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