BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The formula to calculate Total Cost is:
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TOTAL COST = VARIABLE COSTS X FIXED COSTS
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TOTAL COST = VARIABLE COSTS + FIXED COSTS
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TOTAL COST = REVENUE-VARIABLE COSTS
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TOTAL COST = REVENUE-FIXED COSTS
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Explanation:
Detailed explanation-1: -Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost. You can use this fixed cost formula to help.
Detailed explanation-2: -Consequently, total cost is fixed cost (FC) plus variable cost (VC), or TC = FC + VC = Kr+Lw.
Detailed explanation-3: -The first method works by using this simple formula: Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)
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