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Increasing the production capacity and cutting down fixed costs per units (example-machinery and better utilization of floor space in production unit). Make 100 units in the same machinery instead of 80 units and there the machinery costs per unit is cut.
Variable costs can be cut down as per the merit of the unit. (example-minimizing packaging costs of a cookie packet may not affect the quality of the cookie, but help in bringing down costs.)
Also, over time, given the increase in experience of the production unit personnel, manpower requirements can be cut down, a most definite way to cut costs.
