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equation to calculate average fixed cost. Fixed Cost is calculated using the formula given below Fixed Cost Total Cost of Production Variable Cost Per Unit No. Average fixed cost AFC equals total fixed cost FC divided by output Q.
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Of Units Produced Fixed Cost 100000 375 20000 Fixed Cost 25000. If we divide both sides of the equation by output Q we get. Average Fixed Costs 200000 400 5000 Therefore there are average fixed costs of 5000 per unit.
Of Units Produced Fixed Cost 100000 375 20000 Fixed Cost 25000.
The Average Fixed Cost AFC calculator computes the average fixed costs of production AFC by dividing the Total Fixed Cost FC by the quantity Q of output produced. The average fixed cost is the total fixed cost divided by the number of units produced. If we divide both sides of the equation by output Q we get. In simpler terms it measures how much a business has to spend on each unit or product of output produced.
