[Texas Fossil]

It is called absorption cost accounting.

Fixed set up cost of a machine for 1,000 production run. Is expensive in terms of number of rounds.

Fixed set up cost of a machine for 1,000,000 round cost much less per round.

If you run same setup for a year is cheaper than if you only run it 2 weeks.

[marktwain]

It is called absorption cost accounting.

I figured it was an example of economies of scale.