ECONOMICS

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. Let’s use a real-world example.

Detailed explanation-2: -To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.

Detailed explanation-3: -This is a standard formula for computing the total cost of producing a unit, wherein “y” will be the total cost, “a” would be the total fixed cost, “b” would be the variable cost per unit, while “x” would be the number of units.

Detailed explanation-4: -Variable cost. Explanation: Variable cost refers to the cost that changes with the production level but the per unit variable cost does not change as per the production and remains the same. Simply, variable cost does not change and the per unit cost remains at each level of production.