Average Variable Cost Calculator
How to Use:
- Enter Total Variable Cost: Input the total variable cost in dollars.
- Enter Total Quantity: Type in the total quantity produced or sold.
- Click “Calculate”: Hit the button to compute the average variable cost.
- View Average Variable Cost: The calculated average variable cost will be displayed automatically.
Example Calculation:
Let’s say your business incurred $500 in total variable costs to produce 100 units of a product.
Total Variable Cost: $500 Total Quantity: 100 units
AVC = Total Variable Cost / Total Quantity = $500 / 100 = $5 per unit
So, the average variable cost per unit is $5.
Formula Used:
The average variable cost (AVC) is calculated using the formula:
AVC = Total Variable Cost / Total Quantity
Feel free to use this tool to quickly calculate the average variable cost for your business operations.
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