In the given business scenario, with a total cost (TC) of $300 and a total fixed cost (TFC) of $300, the total variable cost (TVC) is calculated to be $0 by subtracting the TFC from the TC.
The total cost (TC) in a business scenario is made up of two components: the total fixed cost (TFC) and the total variable cost (TVC). The equation representing this relationship is TC = TFC + TVC. Using the given data that the TC is $300 and the TFC is also $300, we can calculate the TVC.
Substituting the known values into the equation gives us:
300 = 300 + TVC
To find the TVC, we subtract the TFC from both sides of the equation:
TVC = 300 - 300
TVC = 0
Therefore, the total variable cost (TVC) is $0.
The probable question may be:
In a business scenario, the total cost (TC) is $300, and the total fixed cost (TFC) is also $300. Calculate the total variable cost (TVC).
Additional Information: Assume the total cost (TC) is the sum of total fixed cost (TFC) and total variable cost (TVC). Express the relationship between these costs as an equation and find the value of TVC using the given data.