Fixed costs in relation to the growing fleet include which components?

Fixed costs are expenses that do not change with the level of production or operational activity. In the context of a growing fleet, the components of fixed costs primarily relate to overhead and personnel costs.

Overhead costs include expenses such as rent, utilities, and equipment maintenance that are necessary for the operation of the fleet but do not vary based on how many vehicles are in service. Personnel costs, on the other hand, cover salaries and wages for staff regardless of the fleet size; these are necessary to ensure the fleet operates effectively.

In contrast, marketing campaigns and promotional expenses fluctuate based on current strategies and business objectives, making them more variable in nature rather than fixed. Similarly, direct operating costs tend to vary with the level of activity, and while insurance is often a fixed cost, it is part of broader operational expenses that can also include variable components based on the size and utilization of the fleet.

Thus, the choice highlighting overhead and personnel costs accurately captures the essence of fixed costs associated with a growing fleet.