If at a given volume total costs and fixed costs are known,how are the variable costs per unit computed?
A)(Total costs - Fixed costs)/Unit volume
B)(Total costs/Unit volume)- Fixed costs
C)(Total costs * Unit volume)- (Fixed costs/Unit volume)
D)Total costs - (Fixed costs/Unit volume)

Question

Quizplus · Accepted Answer

Variable costs per unit are computed by subtracting fixed costs from total costs and then dividing by the unit volume. This formula isolates the cost that varies with production volume.

If at a Given Volume Total Costs and Fixed Costs