Millerstown, on the Nolin River, was the first community to be formally incorporated in 1826; Falls of Rough grew up around the Green Sawmill, which first operated in 1823; and Grayson Springs, a popular summer resort, opened in 1830 and peaked in prosperity about 1900.
Example 1. Assume a business produces clothing. A variable cost of this product would be the direct material, i.e., cloth, and the direct labor. If it takes one laborer 6 yards of cloth and 8 hours to make a shirt, then the cost of labor and cloth increases if two shirts are produced.
Conversely, if a company has low fixed costs, it probably has a high variable cost per unit. In this case, a business can earn a profit at very low volume levels, but does not earn outsized profits as sales increase. For example, a consulting business has few fixed costs, while most of its labor costs are variable.