Lauren, Cole, Maia, Beau
Total costs= fixed costs + variable costs
If fixed costs are $1,000 for the month and variable costs are $500, total costs are $1,500 for that month.
Some businesses focus on average total cost. To figure out average total cost, divide the total cost by the quantity of the product produced.
For example: The total cost of making bicycle helmets is $1,500, and the quantity produced is 50. To calculate the average total cost, divide.
($1,500 / 50 = $30)