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Average fixed cost divides total fixed costs by the number of units produced.
Calculate the per-unit fixed cost based on total fixed costs and output quantity.
Average fixed cost divides total fixed costs by the number of units produced.
Fixed costs don't vary with output; dividing them by quantity gives per-unit fixed cost.
If fixed costs are $100,000 and you produce 5,000 units, the AFC is shown.
Exclude variable costs when calculating average fixed cost per unit.
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