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Get a quoteTotal Cost = $20,000 + $6 * $3,000; Total Cost = $38,000 Explanation. The formula for total cost can be derived by using the following five steps: Step 1: Firstly, determine the cost of production which is fixed in nature i.e. that cost which do not change with the change in the level of production. Some examples of the fixed cost of production are selling expense, rent expense, …
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