What are some alternative strategies businesses can use to manage their fixed costs, such as building rent or insurance?

Yes, a real-world example of how changes in volume of activity can significantly impact a company's total variable cost is the airline industry. When an airline increases its number of flights, it incurs more fuel costs, which are variable costs. Similarly, if the airline decreases its number of flights, it will incur less fuel costs. Another example is the manufacturing industry. If a company produces more units of a product, it will need more raw materials, which are a variable cost. Conversely, if it produces fewer units, it will need less raw materials.

Companies like Apple and Google manage their variable and fixed costs in relation to their volume of activity through various strategies. They optimize their variable costs, which change with the volume of activity, by improving operational efficiency and negotiating better terms with suppliers. For fixed costs, which do not change with the volume of activity, they aim to spread these costs over a larger volume of output to reduce the average cost per unit. They also invest in technology and automation to reduce both variable and fixed costs. However, the specific strategies may vary based on the company's unique circumstances and business model.