COST CALCULATIONS
FIXED COST :
IF IT COSTS 1 FISH COST 2$
AND 2 FISH FOOD PACKET COST 5$
THEN HOW MUCH DOES IT COSTS FOR 10 FISH AND 10 FISH FOOD PACKETS?
2 X 10 + 5 X 5 = 20 + 25 = $45
TOTAL COST MEANING
ALL THE VARIABLE AND FIXED COST OF PRODUCING THE TOTAL OUTPUT
HOW MANY TYPES OF COSTS ARE THERE
7
VARIABLE COST :
LAST WEEK THE COFFEE SHOP MAKES 250 $ WORTH OF COFFEE
THE NEXT WEEK THE COFFEE SHOP HAD A 30 % OF INCREASE IN CUSTOMERS
WHAT IS THE TOTAL VARIABLE COST NOW
IT IS $ 325
WHAT IS AVERAGE TOTAL COST
Average total cost is the total cost of producing a single unit of output.
HOW MUCH DID JAMAL SPEND FOR HIS FISH
$35
WHAT. IS THE COST OF A CUP OF COFFEE WHEN 10 CUPS IS 20$
IT IS 2$
GIVE THE VARIABLE COST FORMULA
TOTAL VARIABLE COST / NUMBER OF UNITS
HOW MUCH WAS THE TOTAL COST THAT THORNIQUE HAD TO SPEND TO MAKE THE RAMEN
$50