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