AFC is calculated by dividing total fixed cost by the output level. How to Calculate Average Total Cost. To find it divide the total cost TC by the quantity the firm is producing Q.
How to Calculate Average Total Cost.
The formula of the average total cost can be determined by using the following five steps. You can calculate accounting cost by subtracting your expenses from your revenue. 2 Calculate Total Cost. Fixed cost TFC are the costs of the fixed assets those that do not vary with production.