Question

In your personal life discuss ways you might shift between a variable cost and a fixed cost, and what impact those changes might have.

Answer 1

In Your personal life we incurred various expenses some of which are variable in nature and some are fixed in nature. As an Individual I have fixed monthly income and many of expenses are variable in nature like electricity bill, expenses on entertainment, expense on food etc which can either increase or decrease our savings while fixed expenses like house rent, taxes on income which are fixed in nature can not be avoided.So by managing the variable income we can change the saving while fixed expenses will not change and there would not be any impact on change in fixed expense on savings.