How To Find Total Fixed Cost?


2 Answers

Anonymous Profile
Anonymous answered
Total fixed cost = SALES (into) PROFIT VOLUME RATIO -profit
Lily James Profile
Lily James answered
Fixed cost is also termed as a capital cost. It is required to start a project or an organization.

You can find out a fixed cost by breaking down its components. That would make it easier for you to figure each component out.

The components of a fixed cost include:
  • Equipment & Machinery
  • Land
  • Building
  • Vehicles
  • Office furniture
  • IT infrastructure etc
If you are starting a new business, you can find the cost by figuring the estimated cost of other such businesses.

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