The variable cost per unit remains constant with changes in the level of activity.

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Variable costs are costs that vary in proportion to changes in the level of activity, but the cost per unit remains constant. For example, if a company produces 100 units and the variable cost per unit is $10, then the total variable cost is $1,000. If the company produces 200 units, the total variable cost would be $2,000, but the cost per unit would remain $10.

The Variable Cost Per Unit Remains Constant with Changes in the Level