Need Excel formula help

[Keirgarth1960]

I am in need of a formula that can calculate gross revenue per minute based on the following criteria:

Item can be made at the rate of 1 every 10 seconds and has a value of X

Same item can be modified at the rate of 1 every 10 seconds and has a new value of X

Obviously the rate of production and the value has to be able to be altered as required.

Basic scenario is this: I create an item every 7 seconds and it has a value of $4.99 per item

I then take that item and modify it 1 every 13 seconds and it now has a value of $6.50 per item

I want to be able to see what the total value is after 1 minute in both cases.

[#2 · Accepted solution]

@Keirgarth1960 

The simplest way to split the fixed and variable components of a mixed cost is through the high-low point method, which entails these steps: 

1. Calculate the variable cost per second: 

(6.50-4.99)/(13-7)=0.25 (rounded to 2 decimal places)

2. Calculate the total fixed cost per item: 

6.50-(13*0.25)=3.23 (rounded to 2 decimal place)

3. Calculate the total cost of 60 seconds: 

(60*0.25)+3.23=18.33

The foregoing calculations are presented in the screenshot below: