per unit cost

per unit cost refers to the cost of producing or purchasing a single unit of a product. It is an important figure used in pricing strategies, cost analysis, and financial planning. Per unit cost includes all expenses incurred to manufacture, store, and distribute a product, such as raw materials, labor, packaging, and shipping costs. For businesses, knowing the per unit cost helps determine the selling price of products, calculate profit margins, and make decisions about inventory levels and pricing strategies. This cost can fluctuate depending on factors like production scale, supply chain conditions, and market demand.