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No it is not possible because to produce one unit of product company cannot spend negative amount of material or labor or overhead.

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9y ago
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Q: Is it possible for a variable cost per unit to be negative?
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Related questions

How do you calculate variable cost per unit?

Variable cost per unit = Total variable cost / total number of units manufactured


What is 'Variable cost per unit'?

Variable cost per unit= Total Variable costs($ amount) divided by Production units


Formula for total variable cost?

Total Variable Cost = Number of Units * Variable cost per unit


Why variable cost per unit are constant?

Because variable cost per unit took an arrow to the knee.


How to calculate total variable cost per unit?

Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.


How can you get variable cost per unit if no of unit sold is not given?

Variable cost per unit is not dependent on how much units sold but it is dependent on how many units have been produced. For Example: Total units produced: 1000 Total variable cost :10000 Variable cost per unit = 10000/1000 = 10


How do you calculate breakeven analysis?

Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)


Are variable cost are always indirect cost?

No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.


Marginal versus variable costing?

Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. Variable cost is the sum of all the individual marginal costs. The derivative of the Variable Cost is the Marginal Cost. The integral of the Marginal cost is the Variable Cost.


The difference between sales price per unit and variable cost per unit is the?

The sales price includes variable cost, the cost of the unit and the markup. Sales price is the rate customers pay for the item.


What does cost variable mean?

Variable cost is the cost which varies as variation in production units For example if 10 units produce variable cost = 100 if 100 units produce variable cost =1000 so per unit variable cost = 10


What is sales price per unit less total variable cost per unit?

Formula for Contribution margin is as follows: Contribution margin = Sales price - variable cost So as you can see from above formula that sales price per unit minus variable cost per unit is contribution margin per unit