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.
Then you plot a variable cost line from this point, which will, in effect, be the total costs line. This is because the fixed cost added to the variable cost gives the total cost. To calculate the variable cost, you multiply variable cost per unit x number of units.In this example, you can assume that the variable cost per unit is Â£2 and there are 2,000 units = Â£4,000. Graph showing the breakeven point of a business. Once you have done this you are ready to plot the total revenue line.hen you plot a variable cost line from this point, which will, in effect, be the total costs line. This is because the fixed cost added to the variable cost gives the total cost. To calculate the variable cost, you multiply variable cost per unit x number of units.