If at a given volume total costs and fixed costs are known, the variable costs per unit may be computed as follows:
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 can be calculated by subtracting fixed costs from total costs and then dividing by the unit volume.

If at a Given Volume Total Costs and Fixed Costs