Enter the estimated fixed costs ($), the estimated variable cost per unit ($), and the number of units into the Estimated Cost Calculator. The calculator will evaluate and display the Estimated Cost.

## Estimated Cost Formula

The following formula is used to calculate the Estimated Cost.

EC = FC + VCU* X

• Where EC is the Estimated Cost ($) • FC is the estimated fixed costs ($)
• VCU is the estimated variable cost per unit ($) • X is the number of units ## How to Calculate Estimated Cost? The following example problems outline how to calculate Estimated Cost. Example Problem #1 1. First, determine the estimated fixed costs ($). The estimated fixed costs ($) is given as 430 . 2. Next, determine the estimated variable cost per unit ($). The estimated variable cost per unit ($) is calculated as 20 . 3. Next, determine the number of units. The number of units is found to be 10. 4. Finally, calculate the Estimated Cost using the formula above: EC = FC + VCU* X Inserting the values from above yields: EC = 430 + 20* 10 = 630.00 ($)

Example Problem #2

The variables needed for this problem are provided below:

estimated fixed costs ($) = 600 estimated variable cost per unit ($) = 5

number of units = 8

Entering these values and solving gives:

EC = 600 + 5*8 = 640 (\$)