Total fixed cost = SALES (into) PROFIT VOLUME RATIO -profit
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:
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