Fixed Cost Calculator

Calculate Fixed Cost



Formula

The formula to calculate the fixed cost per unit is:

\[ FC = \frac{TC}{U} \]

Where:

What is Fixed Cost?

A fixed cost is a measure of the average fixed cost per unit of a service or product. It is calculated by dividing the total cost by the total number of units sold. Fixed costs do not change with the level of production or sales and include expenses such as rent, salaries, and insurance.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ FC = \frac{5000}{100} = 50 \text{ per unit} \]

The Fixed Cost is 50 per unit.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ FC = \frac{7500}{200} = 37.5 \text{ per unit} \]

The Fixed Cost is 37.5 per unit.