Average variable cost is the total variable cost per unit of output. It indicates the cost of variable resources like labour and raw materials, calculated per unit. The following figures are the tabular and graphical representation of Average Variable Cost (AVC).
| Production | Variable cost | Average variable cost |
| 1 | 12 | 12 |
| 2 | 20 | 10 |
| 3 | 26 | 8.67 |
| 4 | 32 | 8 |
| 5 | 34 | 6.8 |
| 6 | 48 | 8 |
