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Formula for Total Cost at a Certain Level of Activity

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The formula for expressing the total of a fixed, variable, or mixed cost at any level of activity is:
total cost = fixed cost + (variable rate *volume of activity)
total cost = fixed cost *volume of activity
total cost = fixed cost *variable rate
total cost = fixed cost - variable cost

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Solution provides and explains the formula for expression the total fixed/variable/mixed costs at a given level of activity.

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Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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