Question

What is The cost per unit?

Answer 1

The cost per unit is the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service. Unit costs include all fixed costs, and all variable costs, involved in production.

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. Divide your $3 million costs by the 1 million units to find your cost per unit: $3.