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At an output of 10,000 units per year, a firm's total variable costs are $50,000 and its average fixed costs are $2. The total costs per year for the firm are.
1 Cost of Production versus Cost of Production byGary Frank 1 August 17, 1998 Introduction Cost of production per unit is the costs associated with production divided by thenumber of units produced.n the example, $210 cost - $40 of straw income = $170 of residual costs.This divided by 50 bushels of wheat grain produced to equal a total cost of production of$3.40 cost per bushel.This method allows the comparison between the cost per bushel and the price perbushel of wheat grain.