Average Variable Cost Calculator

How to Use:

  1. Enter Total Variable Cost: Input the total variable cost in dollars.
  2. Enter Total Quantity: Type in the total quantity produced or sold.
  3. Click “Calculate”: Hit the button to compute the average variable cost.
  4. 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.

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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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