Cost per unit. How to determine?

[King Belieal]

To know how much you would sell your products, you have to be able to determine the cost per unit. And even if you speak to investors, they would ask you the cost per unit that is involved in your business.

How do you determine the cost per unit of your product?

 

[Min George]

You just have to divide the total cost of production by the quantity of products that you have been able to produce, that would give you the cost per unit.

 

[Trush Jodie]

When you determine the cost per unit, you would be able to establish the markup price of your product. It is gotten by dividing total cost by the total units of products. It is very clear with manufacturing kind of business.

 

[Augusta]

To determine cost per unit, you calculate the total cost of production and then divide that total cost by the number of units produced to get the price that is realistic

 

[Suba]

To determine the cost per unit you can use a very simple formula such as: Cost per Unit = Total Production Cost / Number of Units Produced.
But for analysis purposes the formula is often used: total fixed costs plus total variable costs divided by the number of production units (as a break-even analysis).