Cost Calculations Using an Excel Spreadsheet

This tutorial demonstrates the cost computations that are a component of the standard Econ 101 class. That is a standard component of the section that is generally named the speculation of the company. It explains the procedure through which a value taker company (a company in absolute struggle) determines what amount to generate provided its prices and provided several probable shop costs that it will get for the product it sells. This tutorial utilizes tables to narrate this description.

Unluckily this tutorial is not an inventorying tutorial and will not be of great assistance in writing a business strategy. It is planned to describe one of the important segments of rules of microeconomics class.

Open an excel sheet. Make columns for Quantity, Total Cost, Total Fixed Cost, Average Cost, Average Fixed Cost, Average Variable Cost and Marginal Cost. Then enter the amounts for Quantity and Total Cost. Set a Total Fixed Cost. Make the calculations for the remaining columns using the following formulas:

• Total Variable Cost = Total Cost – Total Fixed Cost (Set this formula and drag it for all cells)
• Average Cost = Total Cost/Quantity (Set this formula and drag it for all cells)
• Average Fixed Cost = Total Fixed Cost/Quantity (Set this formula and drag it for all cells)


• Average Variable Cost = Total Variable Cost/Quantity (Set this formula and drag it for all cells)
• Marginal Cost = Change in Total Cost/Change in Quantity

 Watch the online demonstration.

.