Increase the Output Over Which a Fixed Cost ICD is Used

This action reduces the quantity of a unique fixed cost ICD used to produce a unit of Output by increasing the units of Output. For example, a new product design, or a new process patent, are both ICDs that have virtually limitless capacity for use. These are fixed cost ICDs. You pay for them once and you can use them over a virtually unlimited amount of Output. Their ICD/O ratios are limited only by the current demand level for Output.

Use fixed cost ICDs with more customers

By using fixed cost ICDs with more customer volume, the unit cost of the ICD declines as a component of the final Output cost.

Use fixed cost ICDs with competitors who employ outsourcing. Sell ICDs in major cost functions of the company:
Sell Present ICDs

No. Industry SIC Year Notes
1 5511 1999 AutoNation Inc., the big Fort Lauderdale, Fla., dealership consolidator, this month is putting online all the inventory from its 270 dealerships and is recruiting independent dealerships to sell on its Web site.

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