1. Enter treated volume
Use the volume that passes through the treatment process during the budgeting period.
2. Enter fixed cost
Include periodic operating costs that do not change materially with treated volume.
3. Enter the variable rate
Enter the treatment cost that scales with each cubic meter processed.
4. Keep the period consistent
Fixed cost and treated volume must refer to the same month, quarter, year, or operating cycle.
5. Review total and unit cost
Use the unit cost to compare scenarios with different treatment volumes.