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Average variable cost divides total variable costs by the number of units produced.
Calculate the per-unit variable cost from total variable costs and output.
Average variable cost divides total variable costs by the number of units produced.
Variable costs change with production; dividing them by quantity gives per-unit variable cost.
If variable costs are $75,000 and you produce 5,000 units, the AVC is shown.
This value helps with pricing and contribution-margin analysis.
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