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.
Know MoreFixed 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.
Learn more about Financial CalculationsTo determine a debt-to-income ratio, a person divides the total of all monthly debt payments by monthly gross income, according to About.com. If the total debt is $1,500 and the total income is $4,000, for instance, the result is 0.375. Expressed as a percentage, the debt-to-income ratio is 37.5 percent.
Full Answer >Cumulative relative frequency is a statistical calculation figured by adding together previously tabulated relative frequencies that makes a running total along a frequency table, according to Connexions. For instance, the first relative frequency of an occurrence is two out of 20 and the second relative frequency is five out of 20. The two frequencies are added together to make seven of 20, or 0.35 for a cumulative relative frequency.
Full Answer >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.
Full Answer >The formula for earned value is EV = PC x BAC, in which EV stands for the earned value, PC is the percent complete and BAC is the budget at completion. This formula determines what the estimated value of a project is at different points prior to its completion.
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