Average Variable Cost Per Unit Formula. Average variable cost refers to the variable cost of per unit of the goods or services where the variable cost is the cost that directly varies with respect to the output and is calculated by dividing the total variable cost during the period by the number of the units. It is calculated by dividing total variable cost tvc by total output q.
This is found by dividing total variable cost tvc by total output q. Formula to calculate avc. Calculation of variable cost per unit 1 620 000 10 000 162.
Average variable cost is determined by dividing the total variable cost by the output.
Average variable cost refers to the variable cost of per unit of the goods or services where the variable cost is the cost that directly varies with respect to the output and is calculated by dividing the total variable cost during the period by the number of the units. Calculation of variable cost per unit 1 620 000 10 000 162. Variable costing direct labour cost direct raw material cost variable manufacturing overhead number of units produced conversely this can also be represented as a summation of direct labor cost per unit direct raw material cost per unit and variable manufacturing overhead per unit. Average variable cost is calculated using the formula given below average variable cost raw material cost direct labor cost variable manufacturing overhead number of units produced average variable cost 5 million 3 million 1 million 6 0000 average variable cost 150.
