The unit cost represents the price of one item. You can divide the total price by the number of items to get the unit cost. Unit cost should be stated in terms of the given unit such as a foot, a yard or the item name. Unit cost can be used to determine the most cost-effective deal. For example, if Store A offers CDs for $11.95 each and Store B has a 14-CD pack for $182, the unit cost of one CD at Store A is lower.
Instructions
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1
Determine the total price for the items purchased. For example, if Store B's CDs cost $182, $182 is the total price.
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2
Determine the number of items in the package deal. For example, Store B has 14 CDs in the package.
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3
Divide the total price by the number of CDs in the package deal. For example, $182/14 = $13.
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4
Include the unit name in the unit cost. For example, the unit cost for Store B is $13 per CD or $13/CD.