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.
Step Variable Costs. Step variable costs are costs that are variable in nature, but the cost per unit changes as the company steps to higher levels of production. For example, a company that builds houses will need to buy lumber.ixed costs are a hybrid between variable and fixed costs. This means the cost incurred has a portion that remains the same regardless of production level and a variable portion that changes with the level of production. An example of this type of cost is a cellphone contract.