Enter the total cost and the total number of units into the calculator. The calculator will evaluate and display the average fixed cost of the good.
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Fixed Cost Formula
The following equation can be used to calculate the average fixed cost of a service or good.
FC = TC / U
- Where FC is the fixed cost
- TC is the total cost
- U is the total units sold
Fixed Cost Definition
A fixed cost is a measure of the average fixed cost per unit of a service or product.
Fixed Cost Example
How to calculate fixed cost?
- First, determine the total cost.
Measure the total cost for the entire production.
- Next, determine the total units.
Calculate the total units produced during the same time frame.
- Finally, calculate the fixed cost.
Calculate the average fixed cost per unit using the formula above.
A fixed cost is typically considered the average cost per unit of production or some manufactured or produced good.