Impact on cost structure by business model change

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Impact on Cost structure by business model change: Currently she was paying 9$ per piton to the forge. Total cost that went into making the piton was 10.45$. Thus amount paid to the forge made up 86% of the total cost. If she took over the forge, she would no longer have to pay a fixed price per piton. Instead, she would be responsible for managing the piton. Thus, cost per piton would depend on how well she manages the fixed and variable costs that would be a part of the manufacturing process.