In the lecture slides (Ch. 5 Part 1) we looked at several scenario's of how Racing Bicycle Co.'s net income would change if we made certain changes to variable and/or fixed cost. Cost structure is important, when it comes to chances and risks for our operating profit in good respectively in bad times..

Please describe two real life companies that you believe has a "High Fixed Cost Structure" and one that you believe has a "Low Fixed Cost Structure". Explain why you came to this conclusion. Then describe what would happen to your companies' net income if a) in one year they were able to double their sales b) in one year their sales would drop by 50%. (Min. 150 words).