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.
In manufacturing, direct material costs are an example of a variable cost. Along with variable costs, fixed costs make up one of the two components of total cost. In the most simple production function, total cost is equal to fixed costs plus variable costs.