Variable Cost per Unit

The Variable Cost per Unit calculator computes the variable cost per unit based variable costs of labor and material and the production volume.

INSTRUCTIONS: Choose units and enter the following:

• (CL) Total Variable Cost of Labor in Period
• (CM) Total Variable Cost of Materials in Period
• (V) Production Volume in Period.

Variable Cost per Unit (VCU):  The calculator returns the variable cost per unit in U.S. dollars.  However this can be automatically converted to compatible units via the pull-down menu.

The Math / Science

Variable Cost per Unit is a set of corporate expenses that vary in direct proportion to the quantity of output. Unlike fixed costs, which remain constant regardless of output, variable costs are a direct function of production volume, rising whenever production expands and falling whenever it contracts.  The formula for Variable Cost per Unit is:

 VCU = (CL + CM) / V

where:

• VCU is the variable cost per unit
• CL is the total variable cost of labor during a specified period of time
• CM is the total variable cost of material during a specified period of time
• V is the total production volume during the period of time.

UNIT Production  Calculators

• Time for Units: Computes time to process a number of units.
• Units over Time: Computes number of units processed over a period of time.
• Total Cost of Units: Computes total cost based on the number of units and the cost of a single unit.
• Unit Cost:  Computes the Average Unit Cost.
• Variable Cost Rate: Variable cost of units including labor and materials.
• Variable Cost per Unit: Variable cost of units over two periods.
• Sell-Through Rate: Ratio of units sold verse received.