How to EASILY Calculate Variable Rate

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By Gump87
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This is an article on How to EASILY Calculate Variable Rate. This is the easiest way I know to calculate Variable Rate. You can also use Variable Rate to calculate Total Variable Cost. There are 4 things you need to calculate Variable Rate. The 4 things you need are High Point Cost, Low Point Cost, High Point Output, and Low Point Output. Once you have these figures calculating Variable Rate is a as simple as following the 3 easy steps listed below. It is a good idea to do the calculation twice to double check your answer to make sure that it is correct since calculating it is so easy.

Difficulty: Easy

Instructions

Things You'll Need:

High Point Cost
Low Point Cost
High Point Output
Low Point Output

Step 1

First take your High Point Cost and subtract your Low Point Cost.
Step 2

Next take your High Point Output and subtract your Low Point Output.
Step 3

Finally take your figure from Step 1 and divide it by Step 2 to get your Variable Rate.