What is the total cost if 400 cars are sold? For 400 cars. Total cost \( = \) fixed cost + variable

To figure out the total cost when selling 400 cars, you need to know both the fixed costs (costs that don't change regardless of production volume) and the variable costs (costs that fluctuate based on how many cars are produced). For example, if your fixed costs are $50,000 and the variable cost per car is $20,000, then the total cost would be $50,000 + (400 x $20,000). When calculating costs, businesses often overlook hidden expenses like maintenance or production delays. To avoid common pitfalls, always review your cost estimates to ensure all potential expenses are accounted for, and consider conducting a break-even analysis to identify at which point you will start making a profit!