Marginal cost is the cost incurred when producing one additional unit. Marginal cost is the extra money a business spends to make just one more product. It's a key concept that helps companies ...

This formula is ideally used to identify the change ... If producing and selling one additional unit costs $80, but that unit can be sold for $100, the marginal profit is $20.

In other words, the cost of holding the unit is figured into this equation ... There is no magic formula here. The logic expressed is to compare your equipment costs to how a rental company ...