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.
Average variable cost refers to the variable expenses per unit of output Average variable cost is obtained by dividing the total variable cost by the total output. For instance, the total variable cost for producing 100 meters of cloth is $800, the average variable cost will be $8 per meter.