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Therefore, your variable cost per unit is $3. Per unit selling price: The price at which a unit of product is sold to customers.Each taco costs $3 to make when you consider what you spend on taco meat, shells, and vegetables. These are subject to change with the change in production and selling activities of the company.

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Required: a) Determine the total number of blenders (Smoothie Pro andVariable expenses per unit: This field should be filled with the variable expenses that company needs to spend to manufacture and sell a unit of product. The relative sales mix of the products is 3 units of Smoothie Pro for every one unit of Blendmaster. Selling price per unit $50 $80 Variable cost per unit $25 $45 The Parsons Company expects to incur annual fixed costs of $151,250. Selling & admin: Variable S&A$2 per unit. Where x is the number of guests in a particular month.

Total Cost = (Variable Cost Per Unit * x) + Fixed Cost. Fixed Cost = Lowest Activity Cost - (Variable Cost Per Units * Lowest Activity Units) Fixed cost = $960,000 - ($872.36 * 990) Fixed Cost = $96,363.35. Variable costs incurred during a stated time period may be calculated using the following formula: Total Variable Cost = Total Output Quantity * Variable. But it remains constant per unit, such as: cost per cubic meter. Required: a) Determine the total number of blenders (Smoothie Pro andA variable cost changes in accordance with the particular unit of production. Your variable costs per unit are the beef, buns and toppings used to make your delicious gourmet burgers.Selling price per unit $50 $80 Variable cost per unit $25 $45 The Parsons Company expects to incur annual fixed costs of $151,250. Fixed costs: $1,200 Variable costs per unit: $4 Sales price per unit: $12 Your fixed costs consist of your monthly rent, utilities, a point of sales system and any payments on your business loan.

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It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed costs divided by Q). Unit Cost or Average Total Cost is equal to total cost divided by the number of goods produced (the output quantity, Q). ª AVC tells the firm whether the output level is potentially profitable. This calculation yields the cost per unit of output. ª To calculate AVC, divide variable cost at a given total product level by that total product. Unit Variable Cost is affected by changes in the business, extra cost is incurred when more units of goods are produced.Defining Average Variable Costs ª Average variable cost (AVC) is the variable cost per unit of total product (TP). Variable cost/unit = Variable cost / Number of units Variable cost/unit = 92,600 / 1,000 Variable cost/unit = 92.60Variable cost per unit refers to the costs of each unit of goods that a company produces, variable costs change as changes occur in the production level or activity level of the company. If the number of units produced in the period is 1,000 then the variable cost per unit is calculated as follows.

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Each mug costs you $14 to produce and send to a customer.This video shows you how to calculate Variable Cost using formula in MS Office Excel 2016.Excel Tips & Tricks : variable cost per unit is calculated by dividing the total variable costs of the business by the number of units. To calculate the variable cost of each item you sell, add up every expense directly related to creating it-the variable cost per unit. This answer is:Calculating variable cost per unit.