todd shenkenberg md pa Hematology & Oncology An internist doctor of osteopathy that specializes in the treatment of the combination of hematology and oncology disorders.
Formula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs.Variable costs are those which do not remain constant, specifically when production activities fluctuate.ormula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs.
The total cost formula is used to derive the combined variable and fixed costs of a batch of goods or services. The formula is the average fixed cost per unit plus the average variable cost per unit, multiplied by the number of units. The calculation is:(Average fixed cost + Average variable cost) x Number of units = Total cost.For example, a company is incurring $10,000 of fixed costs to produce 1,000 units (for an average fixed cost per unit of $10), and its variable cost per unit is $3.At the 1,000-unit production level, the total cost of the production is:($10 Average fixed cost + $3 Average variable cost) x 1,000 Units = $13,000 Total cost. There are several problems with the total cost formula, which are as follows:he formula is the average fixed cost per unit plus the average variable cost per unit, multiplied by the number of units. The calculation is: (Average fixed cost + Average variable cost) x Number of units = Total cost.