# What is the formula for fixed cost?

## What is the formula for fixed cost?

Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.

## How do I calculate cost per unit?

To calculate the cost per unit, add all of your fixed costs and all of your variable costs together and then divide this by the total amount of units you produced during that time period.

## What is unit fixed cost?

Fixed costs are production expenses that are not dependent on the volume of units produced. Examples are rent, insurance, and equipment. Fixed costs, such as warehousing and the use of production equipment, may be managed through long-term rental agreements.

## Can fixed cost be per unit?

The formula to find the fixed cost per unit is simply the total fixed costs divided by the total number of units produced. As an example, suppose that a company had fixed expenses of $120,000 per year and produced 10,000 widgets. The fixed cost per unit would be $120,000/10,000 or $12/unit.