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.
Average fixed costs. Average fixed costs are found by dividing total fixed costs by output. As fixed cost is divided by an increasing output, average fixed costs will continue to fall. The average fixed cost (AFC) curve will slope down continuously, from left to right.