Why do more items cost less relatively?

September 27, 2012 at 16:37

ink printerHave you ever wondered why ordering 100 printed bags cost far more than 10,000?

Well, hopefully we have the answer here; it´s all about the sharing of the fixed costs of production. Our resident Business Management graduate, Paul Millington, is here to explain.

(Note: this won´t be a post for those who don´t like maths!)

Basically when it comes to any manufacturing process there are two types of cost involved: fixed and variable.