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# What is the formula for total fixed cost?

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The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.

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Fixed costs can include assets such as buildings and equipment. Education Portal states that while fixed costs can change based on factors such as availability or changes to a contract, they do not changed based on production levels. Variable costs change based on production levels, which means that a water bottle company will spend more money on bottles the more water bottles it produces. By adding the fixed cost to the variable cost times the quantity, the sum is the total cost.

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According to Investopedia, the cost of sales formula is used by adding the amount of purchases to an existing inventory, then subtracting the remaining amount of inventory at the end of a sales period. The resulting amount is the cost of sales. The cost of sales formula must be used for an individual sales period to be accurate.

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Fixed expenses cost the same amount each month, whereas variable expenses vary in amount from month to month. Fixed expenses cannot be changed easily. Most variable expenses represent discretionary spending, but some variable expenses also represent necessities.

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The fixed charge coverage ratio is the earnings before interest and taxes plus any lease expenses, which is then divided by the sum of the interest expenses and lease expenses, according to AccountingTools. A fixed charge coverage ratio indicates how much of a company's revenue goes toward expenses rather than profits.