Find the variable cost of production. We can calculate average fixed cost by following a simple three-step process. Weighted average unit cost Total cost of units available for sale Number of units available for sale.
Unit costs are particularly sensitive to the effect of significant operational scale and to the relationship between fixed and variable costs for a business.
The total of all purchased or beginning inventory units is 450 150 beginning inventory 300 purchased. Cost of goods available for saleTotal units available for sale Weighted average unit cost Average Cost and Cost Structures Not all products are sold using the same cost structure. Gain or Loss Net Proceeds 350 - Cost Basis 24290 Gain of 10710. 30000 Fixed costs 25000 variable costs 5000 units 11unit.