The average variable cost — also known as the variable cost per unit — equals the.

How to get average variable cost. Average variable cost average variable cost average variable cost refers to the cost that directly varies with the output incurred on each unit of goods or services. The mathematical representation of the average variable cost formula is as follows: Variable cost = variable cost per unit × total number of units produced;

This is found by dividing total variable cost (tvc) by total output (q). Where, avc = average variable cost. Total variable cost (tvc) is all.

$$avc = tvc / q $$ tvc is the total variable cost, and q is the level of production or the quantity produced. Average variable cost can be worked out directly from a firm’s cost function. If the average total cost is $60, while the average fixed cost is $15.

In the above example, you can find your average variable cost by adding the total variable cost of product a ($60 x 10 units, or $600) and the total variable cost of product b. Fc divided by q is the average fixed cost (afc). Vc = total variable cost.

Average variable cost (avc) is calculated by dividing variable cost by the quantity produced. Average variable cost is found by dividing the sum total variable costs of all products by the total number of units made: The total variable cost of a firm is $150,000 in a year.

The formula for computing average variable cost (avc) can be derived by finding out the total variable cost first and then dividing the result by the quantity of the output. Let’s consider a firm whose total cost. Total variable cost = cost per unit of output x total quantity of units of output.