ECONOMICS

Detailed explanation-1: -The total variable cost of a company’s production is equivalent to the total of how much it costs to produce one single unit of product. This number can be determined by multiplying how much it costs to produce one unit by how many products are produced in total.

Detailed explanation-2: -The variable cost per unit is calculated by dividing the total variable costs of the business by the number of units.

Detailed explanation-3: -The cost incurred when no units are produced is $20. This means that the total fixed cost of production is $20. When 4 units are produced, the total cost incurred is $100. Removing the total fixed cost from this, the total variable cost when 4 units are produced will be $100−$20=$80 $ 100 − $ 20 = $ 80 .