Suppose that at a given volume, total costs and fixed costs are known. How are the variable costs per unit calculated?
A) (total costs - fixed costs)/unit volume
B) (total costs/unit volume) - fixed costs
C) total costs - (fixed costs/unit volume)
D) (total costs × unit volume) - (fixed costs/unit volume)

Question

Quizplus · Accepted Answer

Variable costs per unit are calculated by subtracting fixed costs from total costs and then dividing by the unit volume.

Suppose That at a Given Volume, Total Costs and Fixed