What is the formula for calculating the net incremental cost?

Use the following formulae to calculate your incremental cost:

Incremental Cost/Unit = Variable Cost / Goods Manufactured

Or

Incremental Cost For Added Goods = Incremental Cost per Unit × Added Units Manufactured

To calculate the net incremental cost in Excel:

1. Use separate tabs for your expenditures and revenues.
2. Insert your increments in cell B1 and move to the right.
3. For expenses and income, insert the values in cell A2 and move down.
4. Select intersecting cells and create equations as A3*C1.
5. Drag the results in the cell and finish the sheet.