During autumn months, passenger railroads across the globe deal with a condition called slippery rail. It results from a combination of water, leaf oil, and pressure from the train's weight, which creates slippery black ooze that prevents trains from gaining traction.
a. One solution for slippery rail is to cut back trees from all of a rail firms rail network on a regular basis, thereby helping prevent the problem from developing. If incurred, would this railroad expense be a better example of a fixed cost or a variable cost? Why?
b. Another way of addressing slippery rail is to wait until it begins to develop. Then the company purchases sand and dumps it on the slippery tracks so that trains already en route within the rail network can proceed. If incurred, would this railroad expense be a better example of a fixed cost or a variable cost? Why?