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.
Combine fixed cost ICDs with competitors into a separate business. Combine ICDs from the major cost functions of the company:
Combine Sell ICDs
|1||4813||1997||In an effort to protect their lucrative directory business in the on-line world, Ameritech Corp., BellSouth Corp., US West, Inc. and Pacific Bell are expected to announce a "shared" Yellow page.|
|2||4924||1997||Two proposed pipelines, PNG and MNP, competing to supply natural gas to New England, have filed at the FERC to combine parts of their systems into a single pipeline in S. Maine.|
|3||5149||1994||Bakers in mature industry are growing through acquisitions & joint ventures. Bimbo & Mrs. Baird's joined to deliver tortillas to U.S. markets.|
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