Question

If the total cost is 260 nd the total variable cost is 60 wht will b the total fixed cost if output is 100 units?

Answer 1

• Here total fixed cost is 200.
• Fixed cost are those cost which doesn't vary with the level of output
• variable cost are the cost which vary with  level of output,that is increase or decrease in the production.
• Total cost is the sum of total fixed cost and total variable cost.
• If total cost and variable cost per unit is given,we calculate total fixed cost by subtracting (variable cost per unit×unit of output) from total cost.

        that is,        total fixed cost=total cost-(variable cost per unit×unit of  output)

• here given , total cost=260

                             total variable cost=60

                  then,    total fixed cost=260-60

                                                        =200 units