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how to find average cost formula. Example of the Total Cost Formula A company is incurring 10000 of fixed costs to produce 1000 units for an average fixed cost per unit of 10 and its variable cost per unit is 3. The average total cost is sometimes referred to as the per unit total cost since it is calculated by taking the total cost of production and dividing that by the number of units produced.
Calculating Weighted Average Cost Of Capital Using Excel Cost Of Capital Excel Weighted Average from www.pinterest.com
Average cost Total cost of the unitsNumber of units. Number1 required argument This is the first number of a cell reference or a range for which we want the average. The formula of the average total cost can be determined by using the following five steps.
Sums of data divided by the number of items in the data will give the mean average.
10 Average fixed cost 3 Average variable cost x 1000 Units 13000 Total cost. 10 Average fixed cost 3 Average variable cost x 1000 Units 13000 Total cost. This number is also known as average total cost or unit cost. The average total cost is sometimes referred to as the per unit total cost since it is calculated by taking the total cost of production and dividing that by the number of units produced.
