Traditionally, made by mashing pork and beef, pepperoni is a cured meat product often seasoned with peppers, garlic, fennel, or mustard seeds and stuffed into a casing. And, it has a taste that can only be described, well, by eating it. It adds a slightly spicy and meaty flavor to pizza that is purely its own.
Using the Subtraction Method. 1  1. Calculate the total cost. This is the total amount of money it costs to produce a product, equal to the total fixed cost plus the total variable cost. 2  2. Figure out the average total cost (ATC). The ATC is the total cost, divided by the number of units. 3  3. Determine the total variable cost amount.
When compared with price (per unit revenue), average total cost (ATC) indicates the per unit profitability of a profit-maximizing firm. Average total cost is one of three average cost concepts important to short-run production analysis.lick the [Two] button to reveal that the average total cost is $5.50, which is $11 divided by 2 Stuffed Amigos. A click of the [Three] shows that the average total cost of producing 3 Stuffed Amigos is $4.33, $13 divided by 3. The remaining average total cost values can be displayed by clicking the [Remaining] button.