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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.
The total variable cost is 40,000 + 22,000 x 80% + 35,000 = 92,600. If the number of units produced in the period is 1,000 the the variable cost per unit is 92,600 / 1,000 = 92.60 per unit. If in the next period the number of units produced is expected to be 1,200 then the variable costs will be 1,200 x 92.60 = 111,120. business has costs which are classified as shown below, calculate the variable cost per unit if the number of units produced is 1,000. Direct Labor 40,000 â variable. Utilities 22,000 â 80% variable. Materials 35,000 â variable.