Background: The group project uses the case of Uber, the platform company, to assess students$$ knowledge of fixed and variable costs. The case materials include excerpts from the Financial Times column $$Unhedged$,$ a reply by Dara Khosrowshahi $($the CEO of Uber$)$ also published in Unhedged, excerpts from the $10-$K filings of Uber, and an $$investor update$$ presentation by Uber. To answer the questions, use these case materials. Group members may also want to use internet resources. You must reference all your sources. If group members cannot reference sources or answer questions after the presentation it will be assumed that group members did not write the project report themselves. They will be marked accordingly.

Required: A group report and presentation answering the following questions $($introduction and conclusions not needed, just answer the questions clearly$)$

$1.$ Investment is often assumed to be about the purchase of fixed assets. Platform companies like Uber do not primarily invest in costly fixed assets such as factories because their business depends on an internet based mobile communications infrastructure. What does $$investment$$ refer to in the FT column and the reply by Dara Khosrowshahi? $(3$ marks$)$

$2.$ What are the major fixed and variable cost categories in a platform company like Uber? Explain and show your references. $(4$ marks$)$

$3.$ It is common to distinguish between discretionary and committed fixed costs. Does Uber$$s management regard fixed costs are mainly discretionary or mainly committed? Explain and show your references. $(4$ marks$)$

$4.$ How does the distinction between fixed and variable costs inform Uber management when they decide about investing further in their platform business? Explain and show your references. $(4$ marks$)$