Business Numbers Didn’t Have to Be This Hard · Chapter 2

Fixed or Variable?

Give two periods, a quiet one and a busy one. The extra cost divided by the extra activity is the variable cost per unit; what’s left is the fixed part.

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Quiet period
Busy period
Enter your numbers, then press Calculate.
From the book, Chapter 2. Dev’s deliveries: 300 cost $4,100 and 500 cost $5,500. The extra $1,400 for 200 more deliveries is $7.00 each, so the fixed part is $2,000 a month, and 400 deliveries should cost about $4,800. Two periods are a rough guide: if either was unusual, the split will be off.

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