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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.
RE: Variable cost formula? How would you find the variable cost??? when given &quot;&quot;if price was $3.00 and the fixed cost was $5.00&quot;&quot; and the following table... Output---------------1 Price---------------$5.00 Total Cost--------$10.00 Total Revenue--$5.00 How is it possible to know that without...ating Newest Oldest. Best Answer: variable cost = Total Cost-fixed cost $10.00 - $5.00 = $5.00 As output is 1 unit, average variable cost = $5.00 ($5.00 / 1) So, the formula is: variable cost = $5.00 * output. Source(s): Olga Z Â· 8 years ago.