Incremental Cost: Definition, How to Calculate, and Examples
If a business is earning more incremental revenue (or marginal revenue) per product than the incremental cost of manufacturing or buying that product, then the business earns a profit. If you increase your output to 15,000 shirts at a total cost of $120,000, your incremental cost will be $20,000. This means the $20,000 additional cost … Read moreIncremental Cost: Definition, How to Calculate, and Examples