Cost per Unit

on . Posted in Project Management 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

\(\large{ CPU =  \frac{ FC \; VC }{ UP }  }\) 
Symbol
\(\large{ CPU }\) = cost per unit
\(\large{ FC }\) = fixed costs
\(\large{ UP }\) = units produced
\(\large{ VC }\) = variable costs

 

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