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Average Fixed Cost

   Also found in: Acronyms, Wikipedia 0.04 sec.
Average Fixed Cost
A measure of fixed costs per unit. One calculates the average fixed costs by adding up the total one spends over a period of time and dividing by the number of units. For example, if one pays $500 per month in rent and wishes to calculate the average fixed costs for a year, one divides the $6,000 one spends on rent by 12 months.


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Here, the illustration assumes that budgeted average fixed cost per month is $300,000, including a reasonable markup estimate.
JBS USA margins reached 6% in the third quarter of 2008, after JBS management was able to reduce average fixed cost per head by about USD48; EBITDA margin was negative in the last quarter of 2007.
JBS USA margins reached 6% in the third quarter of 2008, after JBS management was able to reduce average fixed cost per head by about USD48.
 
 
 
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