Using Example 6D: Please note that we previously learned that Average Total Cost (ATC) is calculated by adding Average Variable Cost (AVC) and Average Fixed Cost (AFC). Note that in Example 6D that there is no AFC column. You can calculate AFC by subtracting the value of AVC from ATC at any level of output (quantity). Using the second horizontal line (at a quantity of one), ATC is $17.00 and AVC is $5.00, which means that AFC is $12.00. AFC can be calculated for all levels of output (quantity) using this method