Question

per unit cost of production is​

Answer 1

Answer:

Cost Per Unit = (Total Fixed Costs + Total Variable Costs) / Total Units Produced

A successful business relies on being able to make a profit. For both product and service-based businesses, the cost per unit is a valuable calculation to make sure their costs are lower than what a unit sells for. Owners, managers and analysts work on adjusting the cost per unit to meet sales goals. In this article, we discuss what a cost per unit is, why it's important, how to calculate it and provide an example of a cost per unit calculation.