The formula for calculating the variable cost per unit is relatively simple. It involves dividing the total variable costs by the number of units produced. The formula can be expressed as:

Variable Cost per Unit = Total Variable Costs ÷ Number of Units Produced

For example, if a company incurred $10,000 in variable costs to produce 1,000 units of a product, the variable cost per unit would be $10 per unit. This information can be helpful for a company to determine the profitability of each unit produced and to make decisions about pricing and production levels. By calculating the variable cost per unit, a company can also identify areas where they can reduce costs and improve efficiency in the production process.