How To Calculate Variable Cost Per Unit Sold

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High low method calculate variable cost per unit and fixed cost

High Low Method Calculate Variable Cost Per Unit And Fixed Cost

Formula to Calculate Variable Cost Per Unit To calculate variable cost per unit we divide the total variable cost by the number of units Example Calculate the variable cost per unit of 5 coaches whose total variable cost is Sh 129 000 Therefore the variable cost per unit is Sh 25 800 Learn how to calculate the variable cost per unit If the number of units produced in the period is 1,000 then the variable cost per unit is calculated as follows. Production level = 1,000 units Total variable cost = 92,600 Variable cost/unit = Variable cost / Number of units Variable cost/unit = 92,600 / 1,000 Variable cost/unit = 92.60.

Variable costing formula calculator excel template

Variable Costing Formula Calculator Excel Template

How To Calculate Variable Cost Per Unit SoldVariable costs play an integral role in break-even analysis. Break-even analysis is used to determine the amount of revenue or the required units to sell to cover total costs. The break-even formula is given as follows: Break-even Point in Units = Fixed Costs / (Sales Price per Unit – Variable Cost per Unit) Consider the following example: Formula and Calculation of Variable Costs The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output Total Variable Cost Total