Total Cost Calculator

Formula

The formula to calculate the total cost (TC) is:

\[ TC = TFC + TVC \]

Where:

$ TC $ is the total cost ($)
$ TFC $ is the total fixed costs ($)
$ TVC $ is the total variable costs ($)

What is Total Cost?

Total cost is the sum of all fixed and variable costs incurred in producing a good or service. Fixed costs are expenses that do not change with the level of production, while variable costs vary directly with the level of production.

Example Calculation

Let's assume the following values:

Total Fixed Costs (TFC): $5000
Total Variable Costs (TVC): $3000

Using the formula to calculate the total cost:

\[ TC = 5000 + 3000 = 8000 \text{ $} \]

The Total Cost (TC) is $8000.