$3-39$ Manufacturing Direct Labor: Fixed or Variable?$$

To retain skilled employees instead of letting them go when demand falls, Lincoln Electric trains employees for other tasks in the company. The Cleveland$-$based manufacturer of welding and cutting parts has integrated the approach in all its operations so that it can guarantee employment for all employees who have been with the company for $3$ or more years. This policy has worked for more than $60$ years. Other companies such as Nestle$$ and Apex Precision Technology accomplish the same goal of keeping their employees as demand fluctuates by using part$-$time arrangements with the employees.

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Discuss whether manufacturing labor should be considered a fixed or a variable cost at these companies.