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.
Examples of variable costs are again, your salary. If you are an hourly worker, you only get paid for the number of hours you have worked. Unlike the stable eight hour work, you get more or less depending on the time you have spent for work. Summary: Fixed cost and variable cost are the two components of total cost. A fixed cost does not change whether there is an increase or decrease in the quantity of goods and services produced. A variable cost is a type of cost that changes when there is a rise and fall in a companyâs production volume.