Average variable cost = total variable cost / number of units in cases where you need to calculate the average variable cost of different products, you can use the following.

How to get average variable cost. $$avc = tvc / q $$ tvc is the total variable cost, and q is the level of production or 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: 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: Formula for variable costs total variable cost = total quantity of output x variable cost per. Essentially, if a cost varies depending on the volume of activity, it is a variable cost.

Total variable cost (tvc) is all. Tc / q = (fc / q) + (vc / q) tc divided by q is equal to the average total cost (that is, atc). The total variable cost of a firm is $150,000 in a year.

Below is the average variable cost formula: This is found by dividing total variable cost (tvc) by total output (q). The average variable cost (avc) is the total variable cost per unit of output.

Total variable cost = cost per unit of output x total quantity of units of output. Average variable cost can be worked out directly from a firm’s cost function. Add the total fixed cost and total variable cost now that you've found these totals, you can determine the average total cost of production by adding together the total fixed cost.

The average variable cost — also known as the variable cost per unit — equals the. The total cost to create and store each unit amounts to $44,000,000. 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.