Problem:
Okay back to Mrs. McCarthy you advise her to invest in bulk purchasing. What you did not know is that is she was working off her savings. Also she was not a well person (common for elderly people). And she decides to die a week later (also common amongst elderly) what do you tell the heirs about their inheritance, which is now bolts of material?
Yet there are factors that support going to fixed cost structure. Why would you still advise against it in light of the facts that support it?
Assuming no other issues what facts provided would make the advice to go to a fully fixed structure a wise decision? Why?
What would be the cost driver in going shopping for food?