Enter the total avoidable costs ($) and the number of units into the Calculator. The calculator will evaluate the Avoidable Cost Per Unit. 

Avoidable Cost Per Unit Formula

AVCU = AVC / U

Variables:

  • AVCU is the Avoidable Cost Per Unit ($/unit)
  • ACV is the total avoidable costs ($)
  • U is the number of units

To calculate Avoidable Cost Per Unit, divide the total avoidable costs by the number of units.

How to Calculate Avoidable Cost Per Unit?

The following steps outline how to calculate the Avoidable Cost Per Unit.

  1. First, determine the total avoidable costs ($). 
  2. Next, determine the number of units. 
  3. Next, gather the formula from above = AVCU = AVC / U.
  4. Finally, calculate the Avoidable Cost Per Unit.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total avoidable costs ($) = 1000

number of units = 300