To calculate the variable cost per unit, we use the following formula based on the change in cost and the change in units:

$\text{Variable Cost per Unit} = \frac{\text{Change in Total Cost}}{\text{Change in Units}}$

Given:

• Total cost for 7 units = 340
• Total cost for 9 units = 380

Step 1: Calculate the change in total cost

$\text{Change in Total Cost} = 380 - 340 = 40$

Step 2: Calculate the change in units

$\text{Change in Units} = 9 - 7 = 2$

Step 3: Calculate the variable cost per unit

$\text{Variable Cost per Unit} = \frac{40}{2} = 20$

Final Answer:

The variable cost per unit is 20.

Would you like a detailed explanation of how to use this for further calculations or any other related details? Here are 5 follow-up questions you might consider:

1. How can we determine the fixed cost using this information?
2. What happens if more units are produced? Does the variable cost always stay constant?
3. How is the variable cost useful in budgeting and decision-making?
4. Can we determine the total cost equation for this scenario?
5. How do changes in fixed costs affect the overall cost per unit?

Tip: Always validate the data for consistency to ensure calculations like this are accurate.