The cost per unit is<span> the total expenditure incurred by a company to produce, store and sell one </span>unit<span> of a particular product or service. </span>Unit costs<span> include all fixed </span>costs<span>,</span><span> and all variable </span>costs<span>, </span><span>involved in production.</span>
To figure your total manufacturing cost per unit, divide your total costs by the total number of units produced. For example, say for the year your company made 1 million units and incurred production costs of $3 million<span>. Divide your </span>$3 million<span> costs by the 1 million units to find your cost per unit: $3.</span>
