Cost per Unit

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Cost per unit, abbreviated as CPU, is how much is spent producing a single unit of a single product or service.

 

Cost per Unit Formula

\(\large{ CPU =  \frac{ FC \; VC }{ UP }  }\)   

Where:

\(\large{ CPU }\) = cost per unit

\(\large{ FC }\) = fixed costs

\(\large{ UP }\) = units produced

\(\large{ VC }\) = variable costs

 

Tags: Equations for Manufacturing