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.
A variable cost, on the other hand, is a cost that varies as the amount of goods and services a company produces varies. A variable cost is dependent on a company's production volume. For example, suppose company ZYX pays $1 per unit of good sold; its cost would vary as the amount of goods produced varies.