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Variable Cost Rate

Last modified by
on
Sep 15, 2023, 1:01:48 PM
Created by
on
Apr 3, 2018, 1:24:13 PM
VCR=CH-CLVH-VL
(CH) Total variable costs in higher period.
(CL) Total variable costs in lower period.
(VH) Production volume during higher period.
(VL) Production volume duering lower period.
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The Variable Cost per Unit calculator computes the variable cost per unit based on the change in cost (C) and the change in volume (V)

INSTRUCTIONS: Choose units and enter the following:

  • (CH) Total variable costs in high period
  • (CL) Total variable costs in low period
  • (VH) Production volume in high period.
  • (VL) Production volume in low period

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

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The formula for the Variable Cost Rate  is:

     VCR = (CH - CL) /(VH - VL)

where:

  • VCR is the variable cost rate
  • CH is the total variable cost during the higher period of time
  • CL is the total variable cost during the lower period of time
  • VH is the total production volume during the higher period of time.
  • VL is the total production volume during the lower period of time.


UNIT Production  Calculators


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