ECONOMICS

Detailed explanation-1: -In some cases, businesses only list their total costs and variable costs per unit. You can use this information to determine your fixed costs with the formula: Fixed Cost = Total Cost – (Variable Cost Per Unit * Units Produced).

Detailed explanation-2: -First, add up all production costs. Note which of those costs are fixed and which ones are variable. Take your total cost of production and subtract the variable cost of each unit multiplied by the number of units you produced. This will give you your total fixed cost.

Detailed explanation-3: -Companies incur two types of production costs: variable and fixed costs. Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output.

Detailed explanation-4: -Your break-even point is equal to your fixed costs, divided by your average price, minus variable costs. Basically, you need to figure out what your net profit per unit sold is and divide your fixed costs by that number. This will tell you how many units you need to sell before you start earning a profit.