A few examples of the fixed. We can calculate the average total cost by following three simple steps. The formula is as per below.
TC Total cost TFC Total fixed cost TVC Total variable cost.
Cost of goods sold is an accounting term meaning the cost of goods sold during a specific period. Average monthly payroll costs total payroll costs from paycheck data in lookback period days in lookback period average number of days in a month. 1 Find quantity 2 find the fixed cost and 3 divide the fixed cost by quantity. To calculate your monthly total product cost add the total fixed and variable costs for the month that is costs that represent a constant value and costs that fluctuate respectively.