Contribution margin price per unit variable costs per sale. A few examples of the fixed. Since the total cost of producing 40 haircuts at The Clip Joint is 320 the average total cost for producing each of 40 haircuts is 32040 or 8 per haircut.
Average cost AC or average total cost ATC.
VC Variable costs which do change with output. FC Fixed costs not changing with output. You can learn the variable cost of production by again referencing the profit. Since the total cost of producing 40 haircuts at The Clip Joint is 320 the average total cost for producing each of 40 haircuts is 32040 or 8 per haircut.