The key to optimizing manufacturing costs is to find that ... fixed costs do not change with production levels. However, the marginal cost of production is affected when there are variable costs ...

1. Calculate Variable Cost per Unit Using the high-low formula for variable cost: Variable Cost = ($58,000 – $39,000) ÷ (1,500 – 900)Variable Cost = $19,000 ÷ 600Variable Cost = $31.67 per ...

See examples of each cost type and find out how your business can save on both ... you make the same office lease payment every month regardless of how much work you do in that office. Variable ...