Question

What is variable cost per unit


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Answer 1

The total variable cost increases and decreases based on the activity level, but the variable cost per unit remains constant with respect to the activity level.

Answer 2

Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. ... Although total fixed costs are constant, the fixed cost per unit changes with the number of units.