Final answer:
The statement is false; the amount of revenue from each unit of sales that is available to cover fixed costs and profit is known as the contribution margin, not the unit variable cost.
Step-by-step explanation:
The statement that the amount of dollars available from each unit of sales to cover fixed cost and profit is the unit variable cost is false. In fact, the contribution margin is the amount of revenue per unit that exceeds the variable cost per unit and it contributes towards covering fixed costs and then to profit. Variable costs are the costs that vary with the production volume, such as raw materials and direct labor. Fixed costs, like rent and salaries, do not change with the amount of goods produced. After covering fixed costs, the contribution margin contributes to profit.
To illustrate, let's consider 'The Clip Joint' barbershop example. Here, the fixed costs amount to $160 per day and the variable costs are $80 per barber per day. So revenue from a haircut, minus the variable cost of the haircut, leaves a contribution to cover the fixed costs and eventually turns into profit once those are completely covered.