Differentiate fixed and variable costs with examples

For a subscription streaming business, distinguish fixed costs from variable costs. Give three concrete examples of each. Then select one ambiguous item—such as cloud compute, content amortization, or contractor moderation—and justify how you would classify it and why. Explain how that classification affects contribution margin, break-even analysis, and CAC payback calculations.

Overview: This question tests understanding of cost classification and unit economics, specifically the distinction between fixed and variable costs, and the ability to apply those concepts within a subscription streaming business context.