variable cost percentage

variable cost percentage　变动成本率　

Figure that equals total variable costs divided by total sales.Labor-intensive companies have a higher variable cost ratio than capital-intensive ones.If product demand declines，it is very difficult to cut the labor and raw materials（variable costs）required to produce each unit of product.It is easier to reduce fixed costs（layoff of a foreman or personnel department employee，etc.）.Variable costs per unit are usually reduced through automation（increasing fixed costs）.