CALCULATOR
Cost Function Calculator
Evaluate supplied linear fixed-plus-variable cost model. Example: Fixed cost: 100 currency, Variable cost each: 2 currency/unit, Quantity: 20 units gives 140 currency. User supplies a linear cost model; constant variable rate, no tiers, taxes, nonlinear economies or forecasts. Zero production still incurs supplied fixed cost.
User supplies a linear cost model; constant variable rate, no tiers, taxes, nonlinear economies or forecasts. Zero production still incurs supplied fixed cost. Derivation: Fixed amount plus sum of equal per-unit variable amounts.
Accepted inputs: Fixed cost: 0 to 100,000,000 currency; Variable cost each: 0 to 100,000 currency/unit; Quantity: 0 to 1,000,000 units.
Evaluate supplied linear fixed-plus-variable cost model
How the calculation works
cost = fixed cost + variable cost each × quantity
Worked example
With fixed cost 100 currency, variable cost each 2 currency/unit, quantity 20 units, evaluate supplied linear fixed-plus-variable cost model is 140 currency.
Assumptions and limits
User supplies a linear cost model; constant variable rate, no tiers, taxes, nonlinear economies or forecasts. Zero production still incurs supplied fixed cost. Derivation: Fixed amount plus sum of equal per-unit variable amounts.