Average Variable Cost Calculator helps calculating the Average Variable Cost of a product.
What is Average Variable Cost?
In economics, Average Variable Cost (AVC) is the variable cost per unit.
Variable costs are company expenses that vary over time, such as labor, electricity and utilities.
As the Average Variable Cost, the firm can sell its products in a lower price.
What is The Formula of Average Variable Cost?
The Average Variable Cost equlas to variable costs of production (VC) divided by the quantity (Q) of output produced:
AVC = VC / Q
Example of Average Variable Cost
Given the following Data:
The Variable Costs of Production (VC): $ 10,000.00
The Quantity of Output Produced (Q): 200.00
The Average Variable Cost (AVC) equals to 50.00
(10,000.00 / 200.00)