Answer to: How do you find total cost, average fixed cost, total variable cost, and average variable cost, when the only thing that is given is...
If your business is one that has multiple products, then it becomes very tricky for you to find a direct relationship between the product and the fixed costs incurred. In such a scenario, allocation or apportion of cost is done based on the profitability of each division. This, however, can...
Now that we know what fixed costs are, let's talk about average fixed cost (AFC). Average fixed cost is your company's total fixed costs divided by the number of units you produce. To calculate AFC, you would have to use the following formula: AFC = TFC / Q Where TFC is your tota...
How do you find total cost, average fixed cost, total variable cost, and average variable cost, when the only thing that is given is output, TC, AC, and MC? Find the average cost function C associated with the following total cost function C. C(x)=0.000003x...
To find the average total assets, we will use the formula: Average Total Assets = ($500,000 + $700,000) / 2 = $600,000 In this example, the average total assets of Company XYZ over the selected period is $600,000. The calculated average total assets figure provides a more accurate...
Total Cost Formula Examples: A Step-by-Step Calculation You can follow these five easy steps to answer the question of “What is the total cost formula?” and calculate your initial average total cost. 1. Identify your fixed costs.
Step III: Apply Food Cost Formula Now you have two values that you have already seen in the above steps. Finally, you are going to find out the food cost. %Food Cost= Inventory Usage / Food Sales x 100 Your final food cost indicates the average amount you require to make your dish....
The GPM calculation comprises three steps. The first one deals with learning gross income. As we’ve already figured out, you need two parameters –variable charges and total earnings. Subtract the smaller value from the larger one to get gross profit. If the larger value in the formula is...
or pays no income taxes during years of 5% inflation. Either way, she is “taxed” in a manner that leaves her no real income whatsoever. Any money she spends comes right out of capital. She would find outrageous a 120% income tax, but doesn’t seem to notice that 6% inflation is th...
Formula and Calculation of Variable Costs The total variable cost is the quantity of output multiplied by the variable cost per unit of output: Total Variable Cost = Total Quantity of Output x Variable Cost Per Unit of Output The variable cost per unit will vary across profits. In general, ...