cost per unit
Price per item
Cost per unit is the total expense of producing or acquiring one item.
Businesses calculate it by dividing total costs by the number of units produced: The cost per unit dropped as we scaled up production.
It's fundamental to pricing decisions and profit margins—you need to know what each widget costs before deciding what to charge for it.
- sticker priceManufacturer's suggested retail amount
- wholesaleBulk sales to merchants
- bulk discountPrice reduction for quantity
- bulk buyingAcquiring goods in quantity
- economies of scaleCost advantages from size
markup · profit margin · thin margins · breakeven · inventory · manufacturing · production · quantity · pricing · invoice · spreadsheet · number crunching · bean counting · calculation · efficiency · supplier · commodity · retail
- logistics metricson-time delivery, delivery rate, lead time, transit time, cycle time
- price comparisondiscounts, deals, sales, bargains, best price
- applied mathlinear programming, differential equations, statistical methods, probability, statistics
- business metricsconversion rate, revenue, KPIs, sales figures, ROI
- metricsKPI, metric, KPIs, metrics, statistics