# 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